By: Paul Dionne | Vizzda
Friday was one of the busiest single days of the year for commercial real estate thus far, with more than $200m in property changing hands across a broad spectrum of property types. The largest deal of the day in terms of dollar volume was the $68m sale of the Park at San Tan office and retail development in Chandler. The buyer, Newport Beach-based private real estate investor TA Associates Realty paid cash to acquire the 5-story tower from Lakewood, Colorado-based Nelson Phelps Lane, Jr. of Lane Pursuits. Friday’s sale price equates to $311.07 per square foot.
The development is located on a 9.55 acre site, zoned PAD, at the southwest corner of Loop 101 and Ray Road. There is a 216,517 ft2 5-story office tower and 20,139 ft2 of multi-tenant strip retail in three buildings of 9,701, 5,290 and 5,148 ft2. The retail portion was completed in 2006 and the office portion topped out in 2007. There is a 4-story above grade parking structure that conveys with the sale which totals 157,369 ft2 and contains 608 parking spaces, which, when combined with the 202 surface parking spaces on site results in a parking ratio of 3.7 per 1,000 ft2.
The site was previously acquired as 17.26 gross acres of vacant land in January of 2005 for $7.61m or $10.11 per square foot. At that time, Lane Pursuits was joined in its venture by John F. McKinney & Associates of Chicago, though McKinney was removed from the ownership entity in 2011. The ownership entity encumbered the property in February of 2006 with $41.5m construction debt with Fremont Investment & Loan—an affiliate of iStar—and in April of that year, final plat was issued for The Park at San Tan.
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