Three Thistle Landing Office Park Buildings Sell for Over $51 Million

Area Map

Lots 1, 3, and 4 of Thistle Landing Office Park sold Tuesday for a total of $51.25 million, or $182 per square foot to Henry D Bullock of local investment group Menlo Equities. The sale was funded by a $40.75 million loan with Bank of America.

The sale comes nearly a year and a half after current sellers Torchlight Investors reclaimed the property at trustee auction for a $34.1 million credit bid. The current saleprice is close to the 2005 price of $51.176 million prior to property’s distress.

These three buildings of Thistle Landing Office Park total just under 282,000 square feet on 28 acres. It is located northwest of the Interstate 10 Chandler Boulevard exit in Phoenix.

For more information on this property including complete history and buyer/seller contacts, visit us at our website or send us an email. We're happy to hear from you!



        

7 Arizona Hotels Sell as Part of ZMC / Hall Equities Portfolio

The Hampton Inn at Bell Rd & SR-101

California investment company Hall Equities Group purchased a total of 7 Arizona hotels on Friday, totaling 715 rooms with a salesprice of just over $53 million, or $74,162 per room. The hotels are located in Scottsdale, Peoria, and Anthem, and have hotel flags of "Hampton Inn", "Days Inn", "Sleep Inn", and "Holiday Inn".

This acquisition is part of Hall Equities Group's purchase of Minnesota-based ZMC Hotels. The complete portfolio totals 29 hotels in 10 states¹. The entire purchase was funded by a $146.5 million cross-collateralized loan with Bank of America.

1. Source: Hotel Online

For more information on these properties including complete history and contact information, visit us at our website or send us an email. We're happy to hear from you!



        

Vacant West Phoenix Distribution Center Sold for $27.97m

By: Paul Dionne | Vizzda.com

Steve Layton of LBA Realty and Doug Barkdull of Buzz Oates Enterprises closed the sale of a nearly 700k ft² vacant distribution center near 75^th Avenue and Lower Buckeye Road in Phoenix for $27.97 or $41.00 per square foot. This is the second highest price paid for an industrial asset on an absolute basis, surpassed only by the acquisition of Continuum Business and Technology Campus in Chandler for $51.75m in late February. In September of last year, Vizzda reported that LBA Realty had sold three industrial and office properties to Cole Real Estate Investments for $56.33m.

The 682,291 ft² facility was developed by Buzz Oates Enterprises in 2009 on a 37 acre site, zoned A-1. There are 125 dock doors and six large grade doors. Buzz Oates Enterprises acquired the land on which the distribution center sits in July of 2005 for $4,210,526. Two years later a related entity to which Buzz Oates had transferred title of the land encumbered the site with $26.65m in new debt with Bank of America. Final plat approval for the single 37.3811 acre industrial lot was recorded in early 2009. Prior to yesterday’s sale, loan documents stipulate to an outstanding balance on the Bank of America Note of $16.125m.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com
 

After Two Year Hold, Camelback Arboleda Sold for $24.9m

By: Paul Dionne | Vizzda.com

Westport Capital Partners has closed its second disposition of a major opportunistic investment in the Phoenix market with its sale of the Camelback Arboleda on Thursday for $24.9m. or $139.27 per square foot. The buyer, EBF & Associates—a privately held registered investment advisor specializing in alternative investments—paid cash for the property.

The 178,792 net rentable square foot, four-story office building is located east of the intersection of Highland Avenue and 16^th Street in Phoenix. The project sits on 6.73 acres and was completed in 1982. It features a 42,129 square foot floor plate and a four-story detached parking garage which, when combined with surface parking provides a parking ratio of 4.15 per 1,000 square feet.

Westport acquired the property on March 20^th, 2012 for $16.6m in an all cash sale. At the time of sale, the building was 81% occupied. Westport was able to secure take-out financing with Bank of America to the tune of $11.5m on August 1^st, 2012. So net of operational income, Westport was able to realize a 25% annualized unlevered rate of return and an 194% annualized levered rate of return over a two year holding period.

On February 17^th of this year, Vizzda reported on Westport’s sale of five flex office properties in the Agave Center for $29.593m or $134 per square foot. Westport had acquired the 220,000 square foot facility as well as an adjoining 4.64 acres of vacant land eighteen months prior for $23.3m. The land was sold after a year for $1,284,622 and the deal had $15.77m in financing with Bank of America for an unlevered rate of return of 21.6% and a 206% levered rate of return, annualized over the life of the investment.

±300K SF Agave Center Transacts in Tempe

VIZZDA--February 14th, 2014 – In two separate purchases, nearly 300K SF of flex office sold in the “Agave Center” located at I-10 and Warner Road in Tempe. The purchases are as follows:

1711, 1721, 1725, 1729 W. Greentree Dr, & 8945 S. Harl Ave

Westport Capital sold 220,000 SF (218,999 SF per Assessor) to Laguna Beach-based Dornin Investment Group for $29,593,000 or $134 per square foot. The purchase was funded with $22.5M debt loaned by Cantor Commercial Real Estate. Westport previously purchased the subject buildings, built in 1999, plus 4.64 acres of adjoining land on August 13th, 2012 for $23.3M. VIZZDA covered this purchase here. The land portion was later sold on August 15th, 2013 for $1,284,622. Westport had $15,770,000 in financing from Bank of America.

8950 S. 52^nd St

Mr. Greg Horne of IPRO Tech sold 76,528 RSF (81,130 gross SF) to Houston-based Griffin Partners for $9.8M or $128 per square foot. No debt was recorded with the sale. The property was acquired per a December 31st, 2013 purchase agreement. The 4-story office built in 2000 was previously purchased by a Horne-affiliated entity on March 7th, 2006 for $10M.

Much of the un-developed land within the 45 acre Agave Center is held by Suburban Land Reserve Inc, an affiliate of the Church of Christ of Latter Day Saints – though some new properties are being are actively being developed, including:

Warner & Harl 

8,400 sf multi-tenant retail with drive-thru on 1.17 acres. 2,300 sf, 4,300 sf, 1,800 sf (Starbucks)

Tilted Kilt Headquarters 

21,010 SF 2-story office, inclusive of 8,798 sf restaurant space on 3.02 acres

Drury Inn & Suites 

180 room 7-story hotel on 2.96 acres totaling 104,203 SF 

Carl’s Jr

 2,715 sf single tenant retail with drive-thru on 0.86 acres.

Major Camelback Corridor Office Building Sold for $12m

VIZZDA—September 26^th, 2013 — 3333 E Camelback Road has sold to Fenway Properties for $12m or roughly $130 per square foot. The 92,348 ft² multi-tenant office building is comprised of two contiguous 2-story buildings built in 1986 on 4.97 acres. The property features 350 parking spaces for a parking ratio of 3.79 per 1,000 square feet and is EnergyStar rated.

The sellers, Robert and James Noffsinger of Noffsinger Manufacturing Company, Inc. acquired the property in April of 2000 for $11.225m or $121.55 per square foot. They paid $4.125m in cash and encumbered the property with $7.1m in new debt with Bank of America. The Noffsingers were able to refinance this note on August 14^th, 2003 with National Life Insurance Company.

Fenway paid $2.93m and secured an additional $9.07m in new debt with A10 Capital for a loan-to-value of 75.3%. Major tenants in the building include Summit Builders, The ConAm Group of Companies, Northmarq Capital and AmWINS Group, Inc. For information on this any other commercial real estate transaction or distress in Maricopa County, log on to Vizzda.com or contact Kris Thompson at (480) 383-9310 to schedule a demonstration.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Oliver McMillan Completes Acquisition of the Lofts at Hayden Ferry

Future Site of the Lofts at Hayden Ferry

VIZZDA—April 16^th, 2013 — A joint-venture formed by Sunbelt Holdings and Rockpoint Group of Dallas, TX has sold a 3.695 acre parcel within the Hayden Ferry development for $5.85m or $36.30 per ft². The buyer is Oliver McMillan through its CFO and Secretary, William Persky. Oliver McMillan is a luxury multi-family and mixed-use developer founded by Morgan Dene Oliver and James McMillan and based in San Diego. The group financed the transaction with a $2.925m promissory note and a term loan in the same amount with Bank of America. No additional construction debt was located with the sale, though should additional sums be made available, Vizzda will update this post to accurately reflect the state of project financing.

The site is planned for “The Lofts at Hayden Ferry”, a 264-unit apartment complex in one 4-story building totaling 327,182 ft².  The development will also feature fifth-floor loft space in select units and a 2-story sub-grade parking facility containing 459 parking spaces and totaling 197,633 ft² for a combined project square footage of 524,815 and a density unit per acre of 71.4. Despite the proximity of the site to Arizona State University’s Tempe Campus, planning documents associated with the parcel make no mention of dedicated student housing.

The proposed unit mix is as follows:

Number of Units	Bedrooms	Bathrooms	Average ft2
15	0	1	575
77	1	1	741.66
89	2	2	1120
26	3	2	1314
25	1 w/ Loft	1	867
32	2 w/ Loft	2	1358

Sunbelt Holdings and Rockpoint Group acquired the property from the now-defunct SunCor Development on September 15^th, 2010 for $250k or $1.55 per ft² as part of a $7,581,095 portfolio sale that included both raw land and improvements in several valley markets. While the prior sale price is likely depressed because of its inclusion in the larger portfolio—as well as the rapidly deteriorating financial condition of the seller—we calculate the annualized rate of return to be in the vicinity of 890% depending on carrying costs to the joint-venture, which are assumed to be nominal.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Taylor Morrison Makes Second Major Land Acquisition in 2013

VIZZDA—February 1^st, 2013 —  Taylor Morrison Homes has purchased 35.81 acres of  agricultural land in Gilbert planned for the Copper Leaf development for $5,819,434 or $162,508.63 per acre. Taylor Morrison paid cash for the property, which abuts and was previously owned by the Central Christian Church of the East Valley.

The site is located at the Southeast corner of Germann and Lindsay Roads. Per City of Gilbert planning documents, it is platted for 111 lots in two parcels:

• 54 lots on 18.01 acres with typical lot dimensions of 55’ x 120’ for an average lot area of 6,600 ft²
• 57 lots on 18.49 acres with typical lot dimensions of 65’ x 120’ for an average lot area of 7,800 ft²

The community will have a density units per acre ratio of 3.10, a per lot price of $52,427.33, a per front foot price of $871.82 and a per square foot price of $3.73.

Central Christian Church of the East Valley previously acquired the land as part of a roughly 149-acre assemblage on January 7^th, 2002 for $10,167,636. On February 12^th, 2002, the church secured $18m in new debt with Bank of America. This debt was modified on March 29^th, 2005 to extend the maturity to February 28^th, 2012 and reduce the principle balance to $12m. On June 23^rd, 2006 the debt was modified again to increase the principle balance to $36m.

As we reported here, Taylor Morrison acquired roughly 32 acres of planned residential land in Phoenix for $3.96m, bringing their total land acquired in 2013 to 67.93 acres for $9,419,434.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Amkor Research and Development Facility in Chandler Sold to Digital Realty Trust for $24m

VIZZDA—February 1^st, 2013 — Chandler-based chip manufacturer, Amkor Technologies, Inc., has sold its corporate headquarters and research facility to Digital Realty Trust for $23m. Digital Realty Trust is a leading provider of data center solutions and was represented by its CEO, Michael F. Foust. Gil Tily, as Executive Vice President, Chief Accounting Officer and General Counsel oversaw the transaction for Amkor.

The 17.79 acre campus is located at the southwest corner of Price and Germann Roads and includes 43,044 ft² of 2-story office built in 1996, 95,430 ft² of warehouse and manufacturing in three buildings built in 1997 and 75,465 ft² 3-story office shell built in 2000. The $24m sales price represents a $112.18 price per square foot. It is not known nor are there documents to indicate, if Amkor intends to lease the facility.

The land on which the facility sits was acquired by the family trust of the founder of Amkor on July 3^rd, 1995 for $679,706, no new debt with sale. Following construction of the bulk of the facility, ownership was transferred to Amkor on September 15^th, 1997 for $5,709,504. From April 23^rd, 2003 to March 2^nd, 2006, Amkor encumbered the property with $630m in total debt with Citicorp and Bank of America, the final $100m of which was released with this sale.

By:

Paul Dionne

Director of Analytics

Vizzda.com

The Hilton Tapatio Cliffs Resort Sells at CMBS Bank Sale

VIZZDA -- December 12th, 2012 -- The Pointe Hilton Tapatio Cliffs Resort in North Phoenix was purchased by Boxer Properties through a $23m bank sale from C-III Capital as special servicer for Bank of America CMBS. Assumption of a 65 year ground lease concluding in 2053 was disclosed with sale.

The resort totals 584 rooms in twenty-eight buildings, and features an eighteen-hole, par seventy-one golf course. The site consists of approximately 230 acres zoned RH, or resort district, south of the southeast corner of Seventh Street and Thunderbird rd.

The property was previously acquired by Highland Hospitality March 17th, 2006 for $76m and assumption of a 65 year ground lease that originated July 12, 1998. $55,250,000 new debt was issued on the property August 29th, 2006 with Well Fargo Bank, care of MERS, and maturing September 1st, 2036. The loan note was securitized and assigned on October 13th, 2008 to C-III Capital as special servicer for Bank of America CMBS. Notice of trustees sale was given on the CMBS note August 24th, 2010 and the property reverted at trustees auction to CMBS beneficiary for $51,000,000 credit bid amount. 

By:

Daniel Alpers

Director of Planning and Municipal Projects

Vizzda.com

Robb and Stuckey Showroom Acquired by Lender for $11m+

VIZZDA—November 28^th, 2012 — Basil Christopoulus of C and H Development has sold the Robb and Stucky Furniture Showroom located at the Northwest corner of Scottsdale Road and Hayden-Greenway Loop has been sold for $11,274,112 or $101.38 per ft². The buyer was Daniel Roark of Ladlow’s Fine Furniture who had previously lent $10m to C and H Development secured by the property and released with sale.

The showroom is an 111,202 ft² freestanding building, built in 1997 on 6.4 acres. C and H Development acquired the property from DMB Associates on June 11^th, 1999 for $14.675m with $3.6m down and $10,856,507 new debt, seller carry. The property’s sole tenant, Robb and Stucky Furniture, filed for Chapter 11 bankruptcy protection on February 18^th, 2011.

John Hancock Real Estate Finance issued $10.35m in new debt on the property September 20^th, 2009, allowing for the release of the seller carry debt. This note was assigned to Morgan Stanley Dean Witter and securitized on April 18^th, 2000 and further assigned to Lasalle Bank on October 2^nd, 2000.

Following Lasalle’s merger with Bank of America, the note was placed in the care of the special servicer, LNR Partners, on February 9^th, 2010. Following a pair of notices of trustees sale in 2010 and 2011, C and H Development secured $10m in financing with Ladlow’s Fine Furniture on January 9^th, 2012, releasing the Bank of America CMBS debt.

Vizzda is a Phoenix-based provider of commercial real estate information.  Vizzda's data is extraordinarily detailed and delivered to clients within 24 hours of transaction.  To learn more about Vizzda, contact Kris Thompson at 480-924-2000 or kthompson@vizzda.com.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Following Note Sale and Foreclosure, Arrowhead Orchards Medical Office Project in Glendale Sells

Vizzda -- October 15th, 2012 -- Arrowhead Orchards is a 104,882 square foot medical office complex in Glendale, adjacent to the Arrowhead Hospital. Coastal Capital Real Estate Advisors previously purchased the note and foreclosed on the property. They have now sold it for $19,865,990 or $189.41 per square foot, with $200,900 down and $16,040,000 construction line-of-credit with Bank of America.

The conveyance included two separate, 52,441 square foot, 2-story buildings, built in two phases in 2002 & 2005, on 10.06 acres zoned C-2. The sale also included 2 unimproved pad lots, which are planned for three separate one-story office buildings; two adjacent at 4,000 square foot respectively, and one 5,000 square foot. The complete project includes another 1.04 acres that is planned for 6,000 square foot one-story office building. This lot did not convey.

The entire project was previously purchased as 11.1 acres of unimproved land on April 3rd, 2000, for $3,000,000 and $6.20 per square foot, $750,000 down, and $2,250,000 new debt with Community Bank of Arizona that was later released September 11th, 2002. $19,000,000 new debt with PNC Bank July 17th, 2007. The note was sold January 22nd, 2010 to Coastal Capital Real Estate Advisors. Notice of trustees sale was given March 23rd, 2010 for original debt. Property reverted at trustees auction to Coastal Capital on October 26th, 2011 for $15,600,000 credit bid amount.

BY:

Daniel Alpers

Director of Planning & Municipal Projects

Vizzda

CBIZ Plaza Reverts to Beneficiary at Trustee’s Auction with $20.025m Credit Bid

VIZZDA—October 11^th, 2012 — WBCMT 2006-C27 Office 3101, LLC, and entity formed by US Bank and in care of LNR Partners has taken possession of CBIZ Plaza following a trustee’s auction conducted by Craig K. Williams of Snell and Wilmer. The opening bid of $18m was increased by multiple bidders by more than $2m to arrive at a credit bid of $20.025m or $70.32 per ft². This amount represents a 43.75% write down on the outstanding debt of $35.6m.

CBIZ Plaza is a two building office complex on 3.2 acres at the Northwest corner of Central Avenue and Thomas Road comprised of a 16-story building totaling 266,166 ft² built in 1985 and a two story building totaling 18,604 ft² built in 1980. The complex features a 6-level above grade parking structure with 664 parking spaces and 42 surface parking spaces for a parking ratio of 2.5 spaces per 1000 ft². National Bank of Arizona and a number of major law firms are among the tenants currently occupying the building.

Stephen G. Hearn of Hearn Company previously acquired the property on June 28^th, 2006 for $47.5m or $166.80 per ft² with at least $2m down and $35.6m new debt with Wachovia Bank. On May 3^rd, 2007 that note was securitized and assigned to Wells Fargo. It was subsequently assigned to Bank of America on October 8^th, 2009 and US Bank, the current beneficiary, on February 10^th, 2012. US Bank placed the note in the care of LNR Partners on February 21^st, 2012. Following default by Hearn Company, the property was noticed for trustee sale on June 4^th, 2012. 

VIZZDA provides timely, accurate and actionable data on commercial property sales and distress in Phoenix. Our team of researchers aggregate and verify property-type-specific information within 24-hours of recordation and present that information on an intuitive, map-based interface. For more information on our subscription service and how we can help you meet your CRE goals, contact VIZZDA today!

Bascom Arizona Ventures Adds Two Major Distressed Multifamily Properties

VIZZDA—October 1^st, 2012 — Bascom Arizona Ventures, a wholly-owned subsidiary of the Bascom Group, has completed the purchase of Brookstone at the Foothills and Madera Point Apartments for a combined purchase price of $49.92m. The seller—AIG Global Investment Group through its representative Keith Honig—was the beneficiary named on two deeds of trust securing the properties during their prior acquisition by Redhill Realty.

Brookstone at the Foothills is a 528-unit complex comprised of 65 buildings totaling 473,659 ft² on 23.44 acres built in 1986 and zoned R-4. It is located West of the Northwest corner of the I-10 & Baseline Road at 4424 E Baseline Road in Phoenix. Redhill Realty acquired the property on December 18^th, 2006 for $46.8m or $88,636 per door. Redhill paid $13.5m cash for the property and secured $43.2m in financing with AIG Global Investment Group maturing January 1^st, 2012.

Redhill was served with a Notice of Trustee Sale on September 26^th, 2011 and it reverted to AIG with a $35m credit bid, after which it spent 8.5 months as REO. While the $35.57m—or $67,367.42 per door—sale price was in excess of the credit bid amount, it represents a 17.6% write down to the amount loaned and a 24% discount to the previous purchase price. Bascom paid $12,995,971 cash for the property and secured $25.85m new debt with Bank of America.

Madera Point is a 256-unit complex comprised of fourteen buildings totaling 179,296 ft² on 9.44 acres also built in 1986 and zoned R-4. It is located South of the Southeast corner of Dobson and Broadway Roads at 455 S Dobson Road in Mesa. Redhill acquired the property October 24^th, 2006 for $21.25m or $83,008 per door. Redhill paid $6,133,719 in cash at the time of purchase and placed $19.024m in debt with AIG Global Investment Group on the property. An additional $5,066,880 industrial development bond with the Bank of New York was assigned at purchase.

Redhill was served with a Notice of Trustee sale after defaulting on the senior AIG note January 14^th, 2011 and it reverted April 20^th, 2011 with a $16m credit bid. The property spent one year and five months as REO before being sold to Bascom for $14.35m or $56,054.68 per door. This sale price is significantly below the credit bid amount and represents a 24.5% write down to the amount loaned and a 32.5% discount to the prior purchase price. Bascom paid $8,607,547 cash for the property and secured $10.85m new debt, again with Bank of America, for a total outlay of $21,603,518 and new debt of $36.7m.