Raintree Corporate Center Sells for $49.5 Million

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A joint venture between Viawest Group & Contrarian Capital Management purchased the nearly 300,000 square foot Raintree Corporate Center for $49.5 million in a cash-only transaction. Sellers CW Capital had acquired the property via trustee auction in 2011 as special servicer to $59 million CMBS note.

The Raintree Corporate Center consists of two 3-story buildings built in 2002 and 2004 on 13 acres near the 101 and Frank Lloyd Wright Boulevard. This asset includes two parking garages of both above and below-grade level.

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Scottsdale Plaza Resort Noticed on $65 Million CMBS Loan

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The 404-room Scottsdale Plaza Resort located at the northwest corner of Scottsdale and Indian Bend Roads was noticed for trustee sale Thursday. The note was originally valued at $65 million when it was recorded in 2006 with Canadian Imperial Bank of Commerce. It was securitized that same year, and in 2015 beneficial interest was assigned to special servicer LNR Partners.

The Scottsdale Plaza Resort stands on 37 acres and consists of sixty-two buildings totaling nearly 360,000 square feet. It includes a restaurant, health club, racquetball club, retail component, and five pools.

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Strip Retail Center Near Fiesta Mall Noticed for Trustee Sale

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The 71,500 square foot Mercado Fiesta strip retail center was noticed for trustee sale Monday on a securitized $11.4 million note. This debt originated in 2005 with Morgan Stanley Mortgage Capital, with 5.15% interest and a balloon balance of $9,437,242. It was securitized later in 2005 (CMBS).

Located directly northwest of Fiesta Mall, the Mercado Fiesta Center consists of four single story buildings with tenants such as "Starbucks" and "Regency Beauty Institute". The auction is scheduled for noon on December 28th at the main entrance of the Superior Court building in Phoenix. Michelle Ghidotti Gonsalves of Beacon Default Management serves as trustee.

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Two Industrial Properties Noticed on $27.8 Million in Debt

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Two buildings of the University of Phoenix Riverpoint project were noticed for trustees sale on Friday. Riverpoint Buildings I & IV total nearly 191,000 square feet in one and two-story buildings built in 2002, and were once 100% leased to University of Phoenix with leases expiring in mid-2014. Per a press release from January 2014, Cassidy Turley was seeking tenants for the property on behalf of Spirit Realty Corporation.

The subject loan is dated 2005 with an original amount of $27.8 million and Spirit Realty Capital as trustor. The loan was securitized in 2005 and is now care of US Bank as trustee, with Midland Loan Services and LNR Partners as special servicers. The loan was modified to $30.3 million in July of 2005.

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Crow Holdings Acquires Camelback Center for $19.75m

By: Paul Dionne | Vizzda.com

The neighborhood shopping center at the northeast corner of Camelback Road and 16^th Street in Phoenix has new ownership after M. Kevin Bryant of Crow Holdings closed on the Camelback Center for $19.75m or roughly $600 per square foot. Crow Holdings paid cash for the property. This sale tops Hannay Realty Advisors’ $12.2m acquisition of the Camelback East Shops in February of this year for nearly $500 per square foot. 

 

The 32,963 ft² shopping center is comprised of 19,400 ft² of inline retail space demised into eleven suites as well as a free standing CVS Pharmacy totaling roughly 13,800 ft². The property is shadow anchored by a Total Wine and More which does not convey with the current sale. The center was built in 2003 on 3.85 acres, zoned C-2 and has about 150 parking spaces for a paring ratio of 4.55 spaces per 1,000 ft².

The developer of the site acquired title to 7.48 acres of existing retail space for $5.211m and redeveloped from the ground up. The portion being sold today was previously acquired by D Gordon Driesbach in July of 2005 for $18.4m with $10.65m in new debt with Principal Commercial Funding, maturing August 1^st, 2015. That note was later securitized under a Bear Stearns CMBS vehicle. Major tenants include the aforementioned CVS, Chipotle Mexican Grill and Massage Envy

Waterstone Apartments in Mesa Sold for $17.125m

By: Paul Dionne | Vizzda.com

Peter Slaugh of Open Path Investments completed the $17.125m acquisition of the Waterstone Apartments in Mesa from Steve Wasserman of Gelt, Inc. on April 30^th, 2014. The sale price represents a per unit price of $63,661. Mr. Slaugh paid $3.381m in cash and secured the property under a $13.744m deed of trust originated by Northmarq Capital and assigned to Freddie Mac concurrently with the sale. The note matures May 1^st, 2021.

The 269-unit apartment complex is located at the southeast corner of Dobson Road and the US-60 in Mesa. It is comprised of fourteen buildings totaling 161,450 ft² built in 1979 on an 8.02 acre site. The property features a combination of renovated and un-renovated studios, one bedroom, two bedroom and three bedroom units with the following unit mix:

Floor Plan	# of Units	SF	Asking Rent	Rent/SF
Studio Renovated	18	380	$499	$1.31
Studio	15	380	$449	$1.18
Studio Renovated	16	450	$479	$1.06
Studio	17	450	$469	$1.04
One Bed Renovated	44	550	$519	$0.94
One Bed	29	550	$489	$0.89
One Bed Renovated	47	600	$619	$1.03
One Bed	19	600	$589	$0.98
Two Bed Renovated	18	800	$739	$0.92
Two Bed	13	800	$699	$0.87
Two Bed Renovated	23	870	$809	$0.93
Two Bed	8	870	$769	$0.88
Three Bed	2	1013	$899	$0.89
Average			$617	$0.99

The property was previously acquired in early 2007 for $15.45m or $57,434 per unit with $2.29m down and $13.16m in new purchase money debt with Nomura Capital in two notes of $11.16m and $2m, maturing March 11^th, 2012. These notes were pooled into a commercial mortgage-backed security and assigned to a Wells Fargo entity in May of 2008. At that time, the combined note was bearing interest of 6.18% and the property had been appraised at $17.6m for a loan to value (LTV) of 74.77%. 

The first public indication of distress on the property came in the form of a May 2011 notice of trustee sale on the combined $13.16m CMBS debt. The property reverted to Wells Fargo as trustee for the CMBS certificate holders on October 7^th, 2011 with a $7.7m credit bid. Roughly six months later, Gelt Inc. acquired the property from the bank for an undisclosed amount and encumbered the property with $7m in new debt with LNR Partners. Gelt refinanced that note with $8.824m in new debt with CBRE Capital Markets and undertook a series of renovations to the property. 

Starwood Capital Completes Arizona Portion of $191m Portfolio Sale

VIZZDA—January 31^st, 2014 — CW Capital, in its capacity as special servicer for several CMBS vehicles in care of US Bank, has completed the sale of eleven office and retail properties in five states—including four in the Phoenix market—for $191m. Starwood Capital paid cash for the properties, which total 1.595m square feet with 1.3m square feet of office in seven properties and 295k square feet of retail in four properties.

The four properties in the greater Phoenix market are split fairly evenly between office and retail, with two of each property type conveying for a total of $33,774,980 and $33,280,070, respectively. In terms of square footage, the office properties are over twice as large on the aggregate when compared to the retail properties, leading to a blended per square foot basis for retail of $142.40 compared to $67.85 for office. The Phoenix properties are as follows:

 

·  Retail

o  East Thunderbird Square North

§  166,102 square foot power center built 2000

§  Northwest of Scottsdale and Thunderbird Roads

§  Acquired by Starwood for $25,988,563 or $156.46 PSF

§  Prior Face Value Outstanding of $50m

§  Acquired by CW Capital August 2011 with a $16m credit bid

o  Greenfield Gateway

§  67,608 square foot Neighborhood Shopping Center built 2005

§  Southwest of Greenfield Road and US 60

§  Acquired by Starwood for $7,291,507 or $167.38 PSF

§  Prior Face Value Outstanding of $15.6m

§  Acquired by CW Capital February 2010 with a $10m credit bid

·  Office

o  Plaza Squaw Peak

§  427,852 square foot office complex built 1985-1987

§  Southwest of 16^th Street and Northern Ave

§  Acquired by Starwood for $24,067,843 or $56.27 PSF

§  Prior Face Value Outstanding of $50m

§  Acquired by CW Capital August 2012 with a $19.52m credit bid

o  Arrowhead Creekside

§  69,930 square foot office complex built 2000 and 2004

§  Northeast 75^th Avenue and Bell Road

§  Acquired by Starwood for $9,698,937 or $138.68 PSF

§  Prior Face Value Outstanding of $14.5m

§  Acquired by CW Capital July 2011 with a $6.7m credit bid

The $67.055m aggregate purchase price for the four Phoenix assets represent a 48.5% discount to prior face value outstanding of $130.1m. Three of the assets—East Thunderbird Square North, Greenfield Gateway and Plaza Squaw Peak—were securitized within the same instrument, a 2007-vintage CMBS vehicle underwritten by Countrywide Financial and Merrill Lynch. As an interesting historical aside, the super-senior tranche of this CMBS vehicle was secured by an $800m bridge loan for the 2007 acquisition of Peter Cooper Village and Stuyvesant Town by a joint venture between Tishman Speyer and Blackrock for $5.4b. The 2010 default on this note is the largest commercial mortgage default in US history.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Desert Troon Re-Purchases North Scottsdale Trophy Asset

Perimeter Gateway I

VIZZDA--December 18th, 2013 -- Desert Troon Companies is once again the owner of the Perimeter Gateway I office building complex. Troon had owned the North Scottsdale trophy asset until November 23rd, 2011 when the special servicer for the $44m CMBS note encumbering the property foreclosed. The subsequent bank sale was for $26m or 116.31 per square foot.

The 223,537 square foot flex office complex was developed by Koll Development, who commissioned Butler Design Group as architect and Hardison-Downey Construction as the contractor. The project consists of three, two-story buildings built 2001--with an additional cafe building built in 2007--on 10.80 acres zoned I-1/PCP. The two office buildings total ±110k square feet each. The third building is a two-story café building.

There are two current tenants occupying 47% of the complex: 

• T-Systems North America occupies 51,581 square feet and their lease is set to expire in December 31st, 2014
• North Central University occupies 54,213 square feet and their lease is set to expire in August 31st, 2018.

The property was entitled by the city of Scottsdale in 2000, then developed by Koll in 2002. The Koll Development and Clarion Partners joint partnership sold the completed property to Desert Troon on May 30th, 2003 for $40.2m, or $173.84 per square foot, and $32m new CMBS debt with Morgan Stanley. 

Subject Property

The $32m note was released, and $44m new debt with Artesia Mortgage Capital was issued on October 13th, 2006. At the issuance of this debt, DHL was occupying 100% of the buildings rentable space, and the site was appraised at $57m. In 2003, it was reported that at least 106,169 square feet of the DHL leased space was to expire on June 30th, 2012. The new note was securitized July 12th, 2007 and assigned to CW Captial as special servicer for Wells Fargo Bank. 

Constructive notice was given on August 5th, 2011 for the $44m note. The property reverted to CW Capital, as trustee for the registered holders of the CMBS debt, on November 23rd, 2011 with a $26m credit bid amount. At that time, however, Troon remained the property manager on the site and retained the four surrounding buildings that make up the 5-building, ±540k square foot office complex known as Gateway 101.

By:

Daniel Alpers

Vizzda.com