Thursday, August 14, 2014

Intravest Sells Climatec Industrial Flex to California Investor

By: Paul Dionne | Vizzda

Less than two years after acquiring the Phoenix Headquarters of building technology company Climatec, Mason Cave of Intravest Development has sold the industrial flex property to Pacific Palisades-based investor, Charles Cale. Mr. Cale--who is also an attorney and was active in international sporting events like the 1984 Los Angeles Olympics, the 1992 Portugal Olympics and the 1994 USA World Cup--paid $21.6m for the property or $208.08 per rentable square foot in the all cash sale. In addition to the built industrial flex, Mr. Cale acquired an existing option to purchase 6.65 undeveloped acres adjacent to the north. 

The 102,996 rentable square foot flex-industrial property is a composite of seven inline buildings built between 1988 and 2006 on a re-platted 9.38 acre site, zoned IND PK. There are four grade level and two dock doors with a 20’ minimum clearance height. A broker flyer reports that the property was renovated in 2009 and features a 35,000 square foot basement which is not included in the rentable square foot calculation. Including the basement--as the assessor does but permits issued in association with the remodel do not--brings the per square foot value of the transaction down to $156.42.

The industrial flex property and adjoining land were previously acquired by John Kucera of Climatec from the original developer, Hypercom, in May of 2007 for $16.25m or $157.77 per rentable square foot. Kucera placed $4.1M down and was loaned $12.15M debt with M&I Marshall & Ilsey Bank, amended and restated in 2011 to stipulate an outstanding balance of $12m plus an additional $3m in new debt secured by the subject property. The M & I note was eventually taken out in June 2012 with $6.6m in new debt with UMB Bank. 

Kucera sold subject building later that year for $19,058,823 or $185.04  per rentable square foot to Intravest and entered into a sale-leaseback agreement. Kucera retained the ten acre “lot 2” expansion parcel and granted Intravest 24 month option to purchase. Intravest placed $4,764,706 down and was loaned $14,294,117 debt with Johnson Bank. Kucera also provided $4.6M seller-carry debt to Intravest. On 4/19/2013, the property was re-platted such that “Lot 1” building parcel expanded to include a portion of the expansion parcel that featured 350 improved parking spaces. As mentioned above, Intravest assigned its option to Cale with the current conveyance.

To Contact the Author:
Paul Dionne -

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