Phoenix Vizzda Weekly - Week Ending May 20th, 2016

For The Week Ending May 20th, 2016 Vizzda reported 77 Sale events totaling $347,396,810.00 in transaction value. Vizzda also cataloged 27 Planning & Zoning events in the Phoenix Metro Market.
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What Happened in LAND Last Week? Vizzda reported 11 Land Sale events in the Phoenix Metro Market.
	Featured Land Sale: Land Proposed for Peoria Lakes Residential Lots Sells for $4M     On 5/18/2016, Quinn Palomino and Kathy Robinson of Versant CRE & Clear Vista Management acquired this property from Robert Harris for $4M. The property is ±144.6 acres of vacant residential land that includes a 51 acre lake fed by the Agua Fria River.  Vizzda Subscribers- click here to access the full report.
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What Happened in OFFICE Last Week? Vizzda reported 9 Office Sale event in the Phoenix Metro Market. Vizzda also cataloged 2 Office Planning and Zoning Event.
	Featured Office Sale: Multi Tenant Office Building near 202 & 143 Freeways Sells for $4.2M      West Coast Capital Partners acquired property on 5/19/2016 from US Bank for $4.2M. This office property is ±40K SF of space in a 2-story building and is zoned C-2.     Vizzda Subscribers- click here to access the full report.
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What Happened in MULTIFAMILY Last Week? Vizzda reported 17 Multifamily Sale events in the Phoenix Metro Market. Vizzda also cataloged 5 Multifamily Planning and Zoning events.
	Featured Multifamily Sale: 258-Unit Apartments on Indian School Road in Phoenix Purchased for $10.75M   On 5/13/2016, ReNUE Properties  purchased this property from Bruce Warren for $10.75M with $1.6525M down and $11.685M debt with National Bank of Arizona. The property consists of ±150K SF in twelve 2-3 story buildings and is zoned C-2, R-4, & P-1. Vizzda Subscribers - click here to access the full report.
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What Happened in RETAIL Last Week? Vizzda reported 13 Retail Sale events in the Phoenix Metro Market. Vizzda also cataloged 6 Retail Planning and Zoning events.
	Featured Retail Sale: Neighborhood Shopping Center Sells in Phoenix for $5M On 5/18/2016, CW Capital sold this property to Andrew Tavakoli of Tavaco Properties for $5M with $3.675M in new debt with Avatar Financial Group. The property has seven multi-tenant buildings on ±13.43 acres and is zoned C-2.   Vizzda Subscribers - click here to access the full report.
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What Happened in INDUSTRIAL Last Week? Vizzda reported 19 Industrial Sale events in the Phoenix Metro Market. Vizzda also cataloged 2 Industrial Planning and Zoning events.
	Featured Industrial Sale: Tempe Industrial Flex Center Near Railroad Sold for $7.2M Timothy Ellsworth & Portia Guerin sold this property to BKM Capital Partners  on 5/17/16 for $7.2M with $2,256,630 down. This transaction was part of a portfolio of three same-day sales of industrial properties between BKM & RREEF totaling $24.136M, funded by $16M cross-collateralized debt with Bank of America. This property consists of nine single-story buildings on ±5.96 acres and is zoned GID.    Vizzda Subscribers - click here to access the full report.
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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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Monte Verde Apartments Sell for $33 Million in Bank Sale

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The Monte Verde Apartments sold last Thursday through a bank sale from a CMBS reversion portfolio to California-based FPA Multifamily for a total of $33 million, or $75,860 per unit. CW Capital, the special servicer, claimed the property previously at trustee auction in July of 2009.

The Monte Verde Apartments consist of 435 units in fourteen three-story buildings built in 2004. It is located at the direct northeast corner of 36th Street and McDowell Road, just a quarter mile north of the Red Mountain Freeway. Floorplans of one, two, three, and four bedrooms make up its unit mix.

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Biltmore Waterfront Apartments Sell for $10 Million in Bank Sale

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Pratik Jogani of Los Angeles has purchased the Biltmore Waterfront Apartments near the I-17 and Cactus Road for $10 million. The sales price on the 288-unit property reflects $35,000 per unit and was funded by an $8.8 million Fannie Mae loan. This is a bank sale from a CMBS portfolio managed by CW Capital, which comes five years after the property was foreclosed for a $7,328,000 opening bid amount.

The Biltmore Waterfront Apartments was built in 1979 on 9.5 acres. It consists of thirteen three-story buildings and includes a unit mix of one and two-bedroom floorplans, one pool, laundry facility, and gated access. It is located directly west of the I-17 freeway, and less than a mile north of Metrocenter Mall.

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



        

Fairfield Residential Buys Lakeview at Superstition Springs

By: Paul Dionne | Vizzda

In one of the largest transactions in terms of dollar value thus far this year, Chicago-based investment management firm, Heitman, sold one of the largest apartment complexes in the valley—the 676-unit Lakeview at Superstition Springs for $66.6m. The buyer was San Diego-based multifamily developer Fairfield Residential who paid $19.2m in cash for the property and secured an additional $47.4m in funding from CBRE Multifamily Capital, assigned to Fannie Mae at origination. Fairfield owns or manages ten other properties in the greater Phoenix area.  The $66.6m sales price equates to $98,520 per unit.

Lakeview at Superstition Springs’ 676 units are situated in eighty-nine residential buildings totaling 636,963 ft² in addition to a leasing office and clubhouse that bring the total improved square footage above 640,000. The property was built in two phases: forty-two buildings totaling 287,135 ft² built in 1996 and forty-nine buildings totaling 356,668 ft² built in 1998. The gated complex sits on 42.72 acres net of the lakes complex that runs through the property and features four resort-style pools. The one bedroom floor plans range from 660 ft² to 776 ft², the two bedrooms range from 916 ft² to a 1,314 ft² split-level and three bedroom floor plans range from 1,181 ft² to 1,214 ft².

Heitman previously acquired Lakeview at Superstition Springs in March of 2006 for $59.4m or $87,869 per unit from Nearon Enterprises. At the time of sale, Heitman assumed $38m in existing CMBS debt in care of Lasalle Bank and secured additional funding in two notes with Deutsche Bank Berkshire Mortgage of $8.957m and $29.543m, maturing April 1^st, 2011 and both of which were assigned to Fannie Mae at origination. Those debts were released in May of 2012 and replaced with $36m in new debt with CW Capital. Ignoring financing and carry costs and operational proceeds, Heitman earned a 12.1% absolute rate of return and a 184.6% cash-on-cash return.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

HSL Ventures Buys Station on Central for $53m

By: Paul Dionne | Vizzda.com

The Station on Central

On the heels of last week’s $65m sale of ParcLand Crossing in Chandler, Tucson-based apartment investor HSL Properties has acquired The Station on Central for $53m or nearly $130k per unit. The sellers were a joint venture out of Colorado comprised of Scott Fisher of Baron Properties and J. James Riggs of Mountain West Industrial Properties who had previously acquired the property in a 2011 bank sale for $36.5m. HSL Properties paid $13.76m in cash for the property and financed the remainder with $39.24m in purchase money debt with Compass Bank. 

The Station on Central is a 414-unit “Class A” apartment complex just north of the northwest corner of Central Avenue and Indian School Road in Phoenix. The property’s seventeen 3-story residential buildings total 372,089 ft² and were completed in 1999 on an 8.26 acre site. The property is individually metered for electricity and utilizes a Rationed Utility Billing System—or RUBS—for water, sewer and trash. RUBS is a system where utility costs are apportioned according to the square footage of the unit. The complex has 240 one bedroom units with three floor plans, 162 two bedroom units and twelve three bedroom units.

The Station on Central Facade, Facing South

The property was previously acquired by Empire Equity Group (75%) and Bush Realty (25%) as tenants-in-common on June 30^th, 2004 for $31.5m or $76,086 per unit with $24.235m new purchase money debt with KeyBank. An additional $39.5m in debt with Deutsche Bank was issued against the property on December 9^th, 2005. Following assignment of the note to Wells Fargo and securitization, the property was noticed for trustee sale on April 12^th, 2010 with CW Capital as Special Servicer for the CMBS note. The property reverted to Wells Fargo July 16^th, 2010 through trustee's deed with a $30m credit bid.

As mentioned above, Baron and Mountain West acquired the property, then known as Empirian on Central on May 3^rd, 2011 for $36.5m or $88,164 per unit with $20.0M in new debt with Great West Life & Annuity Insurance. Tuesday’s purchase price of $53m represents a 45.2% absolute rate of return or 15.0% annually, a 221.2% levered rate of return or 73.7% annually and a 81.8% cash-on-cash return or 27.2% annually, ignoring hold costs and operational proceeds.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

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