By: Cody Weisel | Vizzda
A large portion of vacant land located near the Chandler Fashion Center has been acquired by Hines Development and AIG Global Real Estate/Alliance Residential in a series of transactions. The two properties are located at the northwest corner of State Routes 101 & San Tan 202, and are actively being planned as the Chandler Viridian PAD. The assembled northern property consists of 11.076 acres and includes the skeleton of a once partially constructed hotel project known as “Elevation Chandler”; while the southern property known as “The Residences at Chandler Commons” consists of a recently split parcel totaling 14.952 acres.
The northern property was acquired by Hines Development from Howard B Grobstein - the Chapter 7 bankruptcy trustee who represents the fractionalized interests of investors from Point Center Financial (Bankrupt investor of Elevation Chandler). The purchase of $8.25m reflects a sale price of $25.17 per SF, and was recorded with a $7.21m construction loan issued by Western Alliance Bank. In two other transactions recorded the same day, Hines acquired 14.952 acres (Lots 1 & 2 - Residences at Chandler Commons) just south of this property for $12,170,929 or $18.69 per SF and later resold 11.401 acres (Lot 2) to AIG Global Real Estate/Alliance Residential. Hines has retained the 3.551 acre portion (Lot 1) and will assemble it with the acquired 7.525 acres to develop two 4-story office buildings, a 3-story parking structure, a 6-story Hotel building, and two single-story retail buildings. The existing structure, Elevation Chandler, will be demolished as an 8/22/14 judgment on behalf of Hines has annulled the 2003 development agreement.
The Southern property, which was platted on October 13th as the Residences at Chandler Commons, consists of 2 lots and 1 tract totaling 20.73 acres, and has been owned by the Propstra family since 1986. The Propstra Family along with Macerich as developer sold Lots 1 & 2 to Hines Development. Lot 2 was acquired from Hines same day by a joint venture consisting of AIG Global Real Estate & Alliance Residential for $14,086,653 or $28.36 per SF. The Lot 2 parcel is planned for a 335 unit apartment complex in seven 4-story buildings with a density of 29 DU/AC.