The Vizzda Weekly - Phoenix - November 7th, 2016

 

THE VIZZDA WEEKLY

November 7th, 2016

 

 

Last week in Phoenix, Vizzda tracked $274,950,572 in commercial real estate transactions

including 55 sales and 24 new projects. Below are Vizzda's top reports of the week. 

 

 

 

 

PLANNING & ZONING 

 

 

New Movie Theater and Retail Space Proposed for Development in Gilbert       On November 2nd, The Gilbert Planning Commission introduced a Minor General Plan Amendment for the development of a mixed-use project consisting of three 2-story offices totaling 190,000 square feet, a 42,000 square foot cinema and 32,580 square feet of retail space on vacant land totaling 32.8 acres.         (1 of 24 planning & zoning events last week)   Vizzda Subscribers - Click Here to View Full Report

 

LAND

 

 

Vacant Land in Queen Creek Purchased for $2.12M   On October 31st, NexMetro Communities purchased 8.87 acres of vacant residential land from Willis Properties for $2,124,959. This property is part of Avilla Victoria at Queen Creek Community and is proposed for the development of an additional 225-lot master planned community.            (1 of 12 land sales last week)   Vizzda Subscribers - Click Here to View Full Report   Click Here to View Sample Report

 

OFFICE

 

 

Great American Office Tower in Phoenix Purchased for $49M      On November 3rd, DPC Companies purchased a sixteen-story office tower totaling 378,215 square feet from EverWest Real Estate for $49,000,000 with $9,900,000 down and $39,100,000 in new funding with Washington Federal.         (1 of 10 office sales last week)   Vizzda Subscribers - Click Here to View Full Report        Click Here to View Sample Report

 

MULTIFAMILY

 

 

312-Unit Apartment Complex in Surprise Purchased for $40.6M    On October 28th, Millburn and Company purchased 13 apartment buildings on 16.33 acres from Treger Financial for $40,600,000 with $6,600,000 down and $34,000,000 in new funding with Berkadia Commercial Mortgage.              (1 of 6 multifamily sales last week)   Vizzda Subscribers - Click Here to View Full Report   Click Here to View Sample Report

 

INDUSTRIAL

 

 

Cold Storage Warehouse in Phoenix Purchased for $16.325M   On October 28th, Performance Food Group purchased a 149,852 square foot, fully fenced and refidgerated warehouse from AmeriCold Logistics for $16,325,000 with $500,000 down.            (1 of 8 industrial sales last week)     Vizzda Subscribers - Click Here to View Full Report   Click Here to View Sample Report

 

RETAIL

 

 

Chinese Cultural Center in Phoenix Purchased for $10M    On November 1st, Angelo Gordon & Company purchased the 160,667 square foot retail center from BNU Corporation for $10,000,000.              (1 of 19 retail sales last week)   Vizzda Subscribers - Click Here to View Full Report   Click Here to View Sample Report

 

 

 

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The Vizzda Weekly - Greater Phoenix - July 5th, 2016

The Vizzda Weekly Phoenix Edition July 5th, 2016 Last week in Phoenix, Vizzda tracked 2 new commercial projects and 64 sales totaling$522,804,737. Below are reports for five of the properties.

LAND On 6/27/2016, Robert Stehlik and Lawrence Gabriele acquired this land on for $1,222,000 with a new $4,727,998 construction loan tracing to Scott Gould and $1.0m 2nd lien with Evelyn Petersen and Edgar Stone. The property is ± 0.49 acres of vacant land and is currently proposed for a nine unit town home development. View Full Report (1 of 14 land sales)

OFFICE Desert Troon acquired this office on 6/24/2016 from Coppersmith Brockelman for $10.15M with $3.0M down and two loans: $7.0M new debt with Compass Bank and $4.2M seller-carried. The property consists of ±134K SF 2-Story Office in one building on ±7.21 acres zoned C-2. View Full Report (1 of 8 office sales)

MULTIFAMILY Resmark Companies sold this property to Wayne Howard on 6/24/2016 for $2.025M or $45,000 per unit. The property consists of 45 multifamily units in one 1-story & three 2-story buildings totaling 24,087 SF and is zoned R-4. View Full Report (1 of 14 office sales)

INDUSTRIAL On 6/30/2016, an entity tracing to Clarius Partners & Walton Street Capital purchased this property for $20M from the seller and former tenant Covance Laboratories. The property is a ±290K SF laboratory in one 2-story building on ±78.79 acres zoned PAD. View Full Report (1 of 13 industrial sales)

RETAIL Earnhardt Auto Centers purchased this property from Alice & Donald Fehrenbach on 6/27/2016 for $14,922,545 with $2,322,545 down and $12.6M debt with JPMorgan Chase Bank. The property is a ±71K SF car dealership in three single-story buildings on ±24.33 acres zoned C-3. View Full Report (1 of 15 retail sales)

The Country Brook Apartments in Chandler Sell for over $64 Million

Area Map

For a total of $64.5 million, the 396-unit Country Brook Apartments sold Friday to California-based Standard Portfolios. The sale was funded by $54 million debt with Arbor Realty Capital. Sellers trace to Bascom Group in Scottsdale.

(Images property of Vizzda)

The Country Brook Apartments are located south of the southeast corner of Rural and Ray Roads in Chandler. This complex consists of eight buildings totaling over 125,000 square feet and includes one, two, and three-bedroom floorplans. Three pools are stationed throughout the property.

Vizzda subscribers: click here for the full report.

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Tryperion Partners Purchases Five-Story Chandler Office Center

Area Map

The Chandler Office Center near the southeast corner of Arizona Avenue and Buffalo Street sold to Typerion Partners last week for $17 million, or $163 per square foot. The asset was purchased from Travelers Insurance Companies with no debt recorded.

±104,500 square feet of office space makes up the five-story Chandler Office Center, which was built in 1998 on two and a quarter acres. It includes a 608-space parking garage to the northeast, and is within walking distance of the Chandler Community Center and Chandler Downtown Library.

Vizzda subscribers: click here for the full report.

Would you like complete debt information and contacts? Vizzda has it!

Contact us for more information.

        
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Vizzda Planning and Zoning Week In Review August 3 - 7 2015

Vizzda Planning and Zoning Week In Review

August 3 - 7 

Here is a brief look at some of the newest Planning and Zoning cases in Maricopa County last week: 

1000 East Apache: Chicago-based owner and student housing developer CA Ventures is submitting a new site plan for the vacant 1.8 acre property located at 1000 E Apache Blvd. This is the third different site plan submitted since 2008. CA Ventures purchased the property for $4 million in January with approximately $20 million in construction debt with Wanxiang America Corporation.  This iteration includes a fourteen story mixed use building with 384 student housing units, 3,838 square feet of ground floor commercial and 417 parking spaces in a 135,000 square foot structure. The unit mix of 53 studios, 72 one bedroom, 164 two bedroom and 95 four bedrooms is planned to total 480,299 rentable square feet. Shepley Bulfinch is serving as the project architect, Wood Patel as the civil engineer and Snell & Wilmer are providing legal representation.  The case is set to be heard by the Tempe Development Review Commission on August 11.

Initial Rendering

Aerial Image of Site

Site Plan

Mattress Firm: Emerald Center is gaining another retail tenant. Houston-based mattress dealer Mattress Firm is planning on adding another location next to the recently completed Texas Roadhouse. The single tenant building is planned to be approximately 7,760 square feet and will share 95 parking spaces with the restaurant. Balmer Architects are serving as both the applicant and project architect.

Mattress Firm At Emerald Center Site Plan

Rhythm: The Tempe portion of the Rhythm project is moving one step closer to construction. Developer Mattamy Homes submitted the Preliminary Plat for the 94 single family residential lots located on approximately twenty acres in Tempe. The lots will have minimum dimensions of 50’ x 95’ with four acres of open space throughout. The Preliminary Plat will be reviewed along with the Development Plan at the August 11 Development Review Commission hearing. The rezoning case for the Chandler portion of the Rhythm development is scheduled to be heard at the August 13 Chandler City Council hearing.

Ritz Carlton Paradise Valley: The Paradise Valley Planning Commission is still conducting study session meetings regarding the Ritz Carlton Paradise Valley project. At the August 4 meeting they reviewed perimeter setbacks, traffic analysis and parking methods. The third work session is scheduled for August 18 where the applicant and city staff will review a revised traffic plan, parking study in addition to the open space plan and drainage / hydrology study. The Paradise Valley Planning Commission has until October 9, 2015 to make a recommendation to City Council on the project. Staff contact for the project is Eva Cutro.

Phasing Timeline for Ritz Carlton Paradise Valley

Wells Fargo Chandler Campus: 15.5 acres of the approximate 68-acre Wells Fargo Campus at the NWC of Price and Queen Creek Roads was introduced to the Chandler Planning Commission for rezoning on August 5^th. The Chandler Planning Commission is serving as the city’s Design Review Board for this project. Rezoning from Planned Area Development (PAD) to Planned Commercial Office (PCO) with a PAD overlay will allow for the third and final expansion of the Wells Fargo campus that was approved in 2013. With the second phase scheduled to open this fall, Wells Fargo is getting started on the third phase. This phase is planned to include: two 9 story offices at 385,000 and 362,000 square feet each, a four story 168,000 square foot office, 5,000 single story bank branch and three 5 story parking garages that will add just over 4,000 spaces.

Rendering for Phase II 

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



        

“Willis and Arizona Avenue Corporate Park” Development Underway

Area Map

The ±64,245 square foot “Willis and Arizona Avenue Corporate Park” industrial flex project is currently being constructed just east of the Willis Road / Arizona Avenue intersection. The 10.55 acres of land and partially finished improvements were sold July 17th to Greenwood & McKenzie for just over $12 million. Greenwood & McKenzie financed the sale with an assumption of an existing construction loan with Western Alliance Bank with a current balance of $7,892,621. A schedule within the loan assumption agreement confirms that $1.58m of the remaining loan is planned for additional construction and tenant improvements.

Signage at the construction site states that the corporate park will be “available summer 2015” with “office/warehouse suites from 4,479 SF & up”.

Photo from development site dated 7/20
(Image is property of Vizzda LLC)

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


        

“Home 2 Suites by Hilton” Planned for Development in Chandler

Dobson & Queen Creek Rd vicinity map

North Central Group has purchased 2.88 acres of land in the Price Road Corridor northwest of the Dobson/Queen Creek intersection for development of a four-story hotel under the flag “Home 2 Suites by Hilton”. The sale was recorded on the 8^th of June with a purchase price of $1,347,953 or $10.75 per square foot. The hotel is part of a planned area development on 33.73 acres called “Continuum at Dobson”. Justin Merritt of SVP and David A Lenz of North Central Group closed the deal.

For more information including complete property history, planning/zoning, and buyer/seller contacts visit us at www.vizzda.com or email us at info@vizzda.com.

Store Capital Purchases Portfolio of Three “Dos Gringos” Restaurant Locations

Scottsdale investment company Store Capital is now the owner of three “Dos Gringos” locations. Subject properties total 12,431 square feet and were purchased for a total salesprice of $4,709,703 or $379 per square foot. The restaurants are located in Chandler, Tempe, and Scottsdale. The sale is secured by a master loan agreement with CitiBank. Value of the trust estate covered by the Deed of Trust is $1,368,668. The Mesa "Dos Gringos" is the only location not included in this sale.

For more information including complete property history and buyer/seller contacts visit us at www.vizzda.com or email us at info@vizzda.com.

Chandler Multifamily Keeps Rolling, Notches $33.4m Sale

By: Paul Dionne | Vizzda

The market for quality multifamily assets in the City of Chandler continues to see strong pricing and high volume, registering $224.95m in sales, year to date. That trend continued earlier this week with the $33.4m sale of Ocotillo Springs by Weidner Apartments to Crown Realty Development. Another trend exemplified by this sale is the prevalence of funding from Government Sponsored Entities (GSE) in the acquisition of multifamily assets—in this case $22.8m in debt originated by Northmarq Capital and assigned to Freddie Mac.

The 272-unit apartment complex located east of the southeast corner of Alma School and Queen Creek Roads. It is comprised of seventeen residential buildings and a clubhouse totaling 253,716 rentable square feet, built in 1998 on a 16.68 acre site, zoned PAD. There are seventy-six one-bedroom units at 741 ft², 168 two-bedroom units at 978 ft² and twenty-eight three-bedroom units at 1,182 ft². All units have full sized washers and dryers in unit and are individually metered for electricity.

TA Realty Associates—who acquired the nearby Park at San Tanmixed-use development for $68m last week—previously acquired Ocotillo Springs in April 2003 for $17,192,312 or $63,207 per unit in an all cash deal. In August 2010, TA sold the complex to Weidner Apartments for $24.7m or $90,808 per unit with $8.4m down and $17.4m GSE debt with Freddie Mac, originated by Wells Fargo. Crown’s acquisition earlier this week included $10.6m in cash consideration and represents a per unit price of $122,794.12.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

TA Realty Buys Park at San Tan

By: Paul Dionne | Vizzda

Friday was one of the busiest single days of the year for commercial real estate thus far, with more than $200m in property changing hands across a broad spectrum of property types. The largest deal of the day in terms of dollar volume was the $68m sale of the Park at San Tan office and retail development in Chandler. The buyer, Newport Beach-based private real estate investor TA Associates Realty paid cash to acquire the 5-story tower from Lakewood, Colorado-based Nelson Phelps Lane, Jr. of Lane Pursuits. Friday’s sale price equates to $311.07 per square foot.

The development is located on a 9.55 acre site, zoned PAD, at the southwest corner of Loop 101 and Ray Road. There is a 216,517 ft² 5-story office tower and 20,139 ft² of multi-tenant strip retail in three buildings of 9,701, 5,290 and 5,148 ft². The retail portion was completed in 2006 and the office portion topped out in 2007. There is a 4-story above grade parking structure that conveys with the sale which totals 157,369 ft² and contains 608 parking spaces, which, when combined with the 202 surface parking spaces on site results in a parking ratio of 3.7 per 1,000 ft².

The site was previously acquired as 17.26 gross acres of vacant land in January of 2005 for $7.61m or $10.11 per square foot. At that time, Lane Pursuits was joined in its venture by John F. McKinney & Associates of Chicago, though McKinney was removed from the ownership entity in 2011. The ownership entity encumbered the property in February of 2006 with $41.5m construction debt with Fremont Investment & Loan—an affiliate of iStar—and in April of that year, final plat was issued for The Park at San Tan.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

Week in Review - August 22nd, 2014

MIG Continues Multifamily Buying Spree

Less than two months after his brother, David Merage of Consolidated Investment Group, closed on the distressed Block 1949 Apartments in Tempe, Greg Merage of MIG Real Estate has acquired Symphony Apartments in Chandler for $34.164m or more than $150k per unit. This is the second major multifamily acquisition by MIG this year following the $41.85m purchase of the Quadrangles in April and the fourth major acquisition since the start of 2013, totaling $126.564m for 1,048 apartment units and a 90k SF office building.

Phoenix Red Lobster Locations Change Hands in $1.5b Sale-Leaseback

According to a press release issued by ARCP, the sale-leaseback of approximately 500 Red Lobster locations was completed at a 7.9% cash cap rate or a 9.9% cap rate under generally accepted accounting principles. The portfolio has a weighted average lease term of roughly 25 years and 2% annual compounded rent escalations. While Golden Gate’s acquisition of Red Lobster included the assumption of between $500m and $600m in existing obligations, the sale of these four locations was on a cash only basis.

Alter Group Books $16m Sale in Corridors Phoenix

Kurt Rosene, Senior Vice President of Chicago-based Alter Group, has completed the sale of our office buildings within Corridors Phoenix—a speculative office development to total 1.4m square feet at the southeast corner of I-17 and Pinnacle Peak Road—for $16m or nearly $100 per square foot. Woodland Hills, California-based real estate investment company Adler Realty Investments was the buyer, tendering $5.4m in cash and securing the remainder of the purchase price under a deed of trust with an unspecified principal balance issued by Wells Fargo. According to their website, Adler’s only other holding in the Phoenix market is the 2600 Tower in Midtown Phoenix.

Marley Park Shopping Center Sold for $12.45m

Costa Mesa, California-based retail developer, Donahue Schriber Realty Group has sold Marley Park Plaza—a Basha’s-anchored neighborhood shopping center within the Marley Park master-planned community—to a joint venture between a Canadian investor and Nathan Cardon of Cardon Commercial. The total sale price of $12.45m is comprised of $11.7m for the existing shopping center and $750k for an undeveloped 2.45 acre parcel adjacent to the east. Taking the two deals separately, this translates to $150.29 per improved square foot and $7.027 per square foot of unimproved land.

MIG Continues Multifamily Buying Spree

By: Paul Dionne | Vizzda

Less than two months after his brother, David Merage of Consolidated Investment Group, closed on the distressed Block 1949 Apartments in Tempe, Greg Merage of MIG Real Estate has acquired Symphony Apartments in Chandler for $34.164m or more than $150k per unit. This is the second major multifamily acquisition by MIG this year following the $41.85m purchase of the Quadrangles in April and the fourth major acquisition since the start of 2013, totaling $126.564m for 1,048 apartment units and a 90k SF office building. MIG put $10.65m down and secured an additional $24.85m in funding through a Fannie Mae loan originated by CBRE Multifamily Capital.

The 234-unit apartment complex is comprised of fifteen 2 and 3-story buildings totaling 246,611 net rentable square feet completed in 1998 on a 15.30 gross acre site featuring two resort-style pools. The units are a mix of one, two and three bedrooms with seven floor plans, detailed in the table below:

Unit	Number	Beds	Baths	SF
Handel	48	1	1	729
Mozart	33	2	1	1240
Mahler	55	2	2	1069
Schubert	22	2	1	1142
Beethoven	11	2	1	915
Bach	32	2	2	1022
Chopin	33	3	2	1262

The complex was converted to condominiums in 2005 under an agreement that stipulates to slightly smaller unit sizes, resulting in a net rentable square foot total of 237,476 for the project. The units are individually metered for electricity. 

The seller was Hartford Investment Management Company, who had previously acquired the property in 2010 when then-owner Graystar defaulted on a purchase money note secured by the property and transferred ownership to Hartford, deed-in-lieu. The previous arms-length sale of Symphony was in January of 2007, when the Greystar bought the complex for less than it's begin acquired for now: $34.164m or $146,000 per unit with $7.864m down and the $26.3m new debt which caused Greystar to give up Symphony less than five years later.

To Contact the Author:

Paul Dionne - pdionne@vizzda.com