By: Paul Dionne | Vizzda.com
The Wal-mart anchored neighborhood shopping center at the
southwest corner of 35th and Southern Avenues came under new
ownership last week, as Kevin Christiansen of Paces Lodging Corporation acquired
the property in a 1031 exchange. The Wal-mart and OfficeMax sub-anchor, as well
as a Jack-in-the-Box pad space did not convey in the sale. Christianson
paid $4,592,600 in cash and secured the property under a new $5.468m deed of
trust with Western State Bank, maturing May 10th, 2024.
The 41,962 ft2 inline portion is comprised of two
buildings demised into twenty-four lease-able spaces with tenants such as:
Rainbow USA, Cigna, SuperCuts and Cricket Wireless. The portion was completed
in 2008 and sits on 9.02 acres, zoned C-2, including a 0.63 acre vacant pad
space. According to the leasing broker, Cassidy Turley, the property is
currently 46% vacant, up considerably from the 29% vacancy rate referenced by
the current seller, Bruce Galloway of Pacific West Land, when it was previously
acquired. The current price represents a per square foot value for the property of $170.
Pacific West Land acquired the property in September of 2010 through
a deed-in-lieu-of-foreclosure, rather than a trustee’s auction. The original
developers of Laveen Village secured the property under a $15,387,602 deed of
trust with California Bank & Trust. A week before taking possession, Pacific West Land acquired the note from California Bank & Trust for a reported
$8.0m or 65% or replacement cost. Thereafter, Pacific West Land sold the Jack-in-the-Box
in December 2010 or $1.225m and the OfficeMax in June 2011 for $3.2m, meaning that prior to last week's sale, Pacific West Land had cleared more than half of its basis and earned an return of 44.37% on its distressed debt acquisition.
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