With Land Swap, Rivulon Development is Underway
With the transfer of 5.345 acres from Nationwide Realty Investors--as master developer--to LA Fitness in exchange for 17.06 acres at the northwest corner of the same development, Phase I of the 252-acre Rivulon mixed-use development in Gilbert is officially underway. When complete, Rivulon will total 3.1m SF of new office space and 500k SF of integrated restaurant and retail use on a 252-acre parcel at the northeast corner of the Loop 202 San Tan Freeway and Gilbert Road. According to Nationwide, construction is set to begin on Phase I in the Fall of 2014.
Block 1949—the “Class A” student housing and multifamily development located east of the southeast corner of McClintock and University Drives—was acquired by a tenancy-in-common (TIC) group comprised of Consolidated Investment Group (CIG) and CWS Capital Group (CWS) for $38.7m or $172k per door. CIG is the majority interest in the new ownership structure—acquiring 85% of the TIC interest in the property in an all cash purchase. In an interesting wrinkle to the deal, CIG was founded by David Merage who is the brother of Greg Merage, whose MIG Capital acquired the nearby Quadrangles Apartments in April of this year.
The soon-to-be-vacant manufacturing and distribution facility that served as the regional headquarters for Jabil Circuits, Inc. was sold yesterday for $11.415m or $60.73 per square foot in an all cash deal. Jabil will vacate the property over the next two to three months after announcing it would cease operations at the facility in September of last year. The buyer was Denver-based Alliance Commercial Partners through its Phoenix Director of Acquisitions, Curt Kremer.
CIRE Equity—a California-based private real estate investment company in the value-add and opportunistic investment space—has acquired the Target-anchored Pecan Promenade shopping center in South Phoenix. The $19m purchase price represents $135 per square foot and was financed with $15m in new purchase money debt with Prime Finance Partners. The sellers were James D Tate and J Kenneth Tate of Miami-based Tate Capital. Tate previously sold three of the pad spaces for a combined $4.244m for a total payout on this deal of $23.244m, net of acquisition and operating costs.
Florida-based Real Estate Investment Trust, National Retail Properties ($NNN), has sold a single tenant pad leased to Chase Bank for $3,534,000 or $785 per square foot. The buyers were a group of investors out of Chicago who financed the deal with $1,464,140 in new debt with Lakeside Bank. Located within the North Phoenix master-plan community Anthem at 39516 N Daisy Mountain Drive- the 4,500 SF bank branch was constructed in 2007 as an out-parcel of the “Anthem Crossing” neighborhood shopping center.