Week In Review - July 18th, 2014

Newly Built Phoenix Apartment Complex Sold for $35.4m

Less than six months after a certificate of substantial completion was recorded against the property—indicating that the property was fully constructed and ready for occupants—Avenue 25 Apartments in Phoenix sold for $35.4m or nearly $140k per unit. The buyer was TruAmerica, in the person of its CFO, Karen Millan, who paid $10.62m in cash and financed the remaining $24.78m in purchase price with Capital One.

First Four Parcels of Crescent Ridge Acquired for $21.6m

Jeff Blandford of Blandford Homes as acquired 128.76 acres of unimproved land at the northeast corner of Guadalupe and Crismon Roads in Mesa comprising parcels one through four of the five parcel, 172.5 acre Crescent Ridge master-planned community. The $21,623,412 purchase price for 552 final platted lots equates to $167,934 per acre, $39,173 per planned lot or $830 per planned front foot. 

Midtown Niki and Pederson Acquire Bella Angela Shopping Center

In a pair of consecutive sales, a joint venture between San Diego-based Midtown Niki Group (MNG) and the locally-based Pederson Group purchased four single-tenant and two multi-tenant retail buildings for a combined $7.92m or $187.60 per square foot. The single-tenant portion was acquired with $5.712m down and the multi-tenant portion was acquired with $300k down, both parcels were encumbered under respective $1.62m seller-carry notes

Alliance’s Broadstone Camelback Sold for $74.75m

The Broadstone Apartments are located in Phoenix’s prized Biltmore corridor, directly South of the Biltmore Fashion Park at 2625 E Camelback Road. Alliance constructed 270 units on the site in 4-story buildings, consisting of: 53 studio, 110 one bedroom, and 107 two bedroom--some of which are marketed as penthouses.  The community is  presently marketed as rentals, restricted from condominium conversion through 2022.

First Four Parcels of Crescent Ridge Acquired for $21.6m

By: Paul Dionne | Vizzda 

Jeff Blandford of Blandford Homes as acquired 128.76 acres of unimproved land at the northeast corner of Guadalupe and Crismon Roads in Mesa comprising parcels one through four of the five parcel, 172.5 acre Crescent Ridge master-planned community. The $21,623,412 purchase price for 552 final platted lots equates to $167,934 per acre, $39,173 per planned lot or $830 per planned front foot. Blandford paid $3,243,511 in cash and secured $18,379,900 in new debt with the seller, Jerry Ivy. 

Crescent Ridge Concept and Vicinity

The planning and zoning case prepared by Blandford and heard by the City of Mesa calls for 1,056 total lots on 172.5 acres for a gross density units per acre ratio of 6.12 for the project. Parcels one through four will be made up of 522 traditional lots with four different dimensions and Parcel Five will consist of 504 density units, to be acquired and developed at a later date. The lot dimensions, count and set-backs are detailed below:

Parcel	Lot Size	Lot Count	Front	Side	Rear
Parcel 1	60’ x 125’	92	10’ / 20’	5' / 12'	20’ / 10’
Parcel 2	52’ x 120’	116	10’ / 20’	5’ / 12’	20’ / 10’
Parcel 3	45’ x 115’	148	10’ / 20’	5’ / 10’	20’ / 10’
Parcel 4	40’ x 69’	196	10’ / 7’	5’ / 10’	3’
Parcel 5	NA	504	NA	NA	NA

Mr. Ivy previously acquired the subject parcel as part of a 193.04 acre sale from the Arizona State Land Department in February of 2014 for $30.2m or $156,444 per acre. The bill of sale indicates that Ivy paid $7.55m in cash plus a $645k administrative fee and carried a $22.65m balance with the department bearing 5.25% per annum interest and maturing October 17^th of this year. 

At the time of the sale to Ivy, the state had appraised the original 193.04 acres at $30m. Prior to the current sale, Ivy assigned his right as purchaser to an affiliated entity in care of Jeff Blandford. Pursuant to the seller carry financing on the current transaction, Blandford will pay Ivy a lot release price for each lot sold, stipulated to be $31,350 for each 40’ lot, $44,000 for each 45’ lot, $48,400 for each 52’ lot and $59,943 for each 60’ lot. 

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

Pulte Picks Up Three Subdivisions for $15.778m

By: Paul Dionne | Vizzda.com

Estates at 44th Vicinity Map

Jeff Blandford of Blandford Homes has completed the sale of 212 final platted lots comprising the entirety of three subdivisions in Chandler, Mesa and Phoenix to Mike Brilz of Pulte Homes. The all cash purchase price of $15.778m equates to a per lot price of $74,424 per lot—61.4% higher than the valley-wide average per lot price for partially improved lots for the first quarter of 2014. The three subdivisions are Calabria in Chandler, Adobe Meadows in Mesa and Estates at 44^th, and have the following characteristics: 

Calabria Vicinity Map

• Calabria – 97 lots on 27.38 acres north of the northwest corner of Chandler Heights Boulevard and Cooper Road with typical dimensions of 60’ x 126’
• Adobe Meadows – 71 lots on roughly 40 acres south of the southwest corner of Signal Butte Road and Brown Road with a blend of lot sizes ranging from 70' to 140' wide and 140' deep.
• Estates at 44^th – 44 lots on 10.62 acres at the northeast corner of 44^th Street and Dynamite Road with typical dimensions of 60’ x 120’. 

Adobe Meadows Vicinity Map

    

    The three sites were previously acquired in 2005 for a combined $11.727m comprised of $4.527m for Calabria, $4.2m for Adobe Meadows—then platted for thirty-two acre lots—and $3.0m for Estates at 44^th in two sales. By 2010, all three properties were either bank-owned or distressed, allowing Blandford to acquire the properties for a combined basis of $3.825m. Ignoring hold, development and entitlement costs, Blandford realized a 312.5% absolute rate of return and an annualized rate of return of 78.12%.