DeRito and Van Tuyl Buy Big in Arcadia Lite

By: Paul Dionne | Vizzda.com

April 21^st, 2014 — The neighborhood shopping center at the southwest corner of 32^nd Street and Indian School Road sold yesterday in two transactions totaling $16.75m. Currently anchored by Bashas-subsidiary Food City as well as an AMF Bowling Alley, the 155,634 ft² shopping center sits on 13.09 acres at the intersection of two major arterial roads.

Martin DeRito of Derito Partners and Larry Van Tuyl of Van Tuyl Auto Group acquired the properties through a combination of $5,705,494 in cash and $11,044,505 in related-entity financing with Van Tuyl. The building that housed the now-closed AMF Squaw Peak Lanes sold for $4.36m or $94.80 per square foot, while the remaining 109,646 ft² comprised of the anchor, inline and pad retail portion sold for $12.39m or $113 per square foot.

The corner belonged to Basha’s Inc. dating back to 1959. Following a Chapter 11 Bankruptcy filing by Basha’s in 2009, the company announced its plan to close ten under-performing stores; the property was among several Bashas’ stores secured under a $100m deed of trust with an affiliate of Great American Group in 2010. 

Fresh and Easy Portfolio Sale

Vizzda – February 25, 2014 – Fresh and Easy Markets filed for Chapter 11 bankruptcy last year at the end of September. Their court-approved exit strategy involved the acquisition of the company by investment firm "Yucaipa Companies" as well as the sale of real estate assets:

DJM Real Estate was retained to manage the disposition of the Fresh & Easy real estate. The project consists of marketing 98 leases and 55 fee owned properties, including ground leases, building leases, undeveloped land parcels, retail buildings and distribution centers. All properties are located in Arizona, California and Nevada and range from 10,000 to 777,100 square feet with a combined total of approximately 2.8 million square feet. (LINK)

In November, Fortress Investment Group had signed an agreement to purchase 53 properties from the Fresh and Easy portfolio for a total of $41.5m. Vizzda has tracked a portion of this portfolio sale. On Friday, February 21, eleven properties in Maricopa County were sold from Fresh and Easy to Fortress Investment Group as detailed in the table below.

DJM had marketed an additional 5 properties in Maricopa County which we have not yet seen transact.

Edward Moore
Director of Research
www.vizzda.com

Wood Partners Close on Rural/Metro Call Center for Alta Scottsdale Apartments

Future Site of the Alta Scottsdale Apartments

VIZZDA—December 17^th, 2013 — The Phoenix market saw another example of re-development across property types yesterday as multi-family developer, Wood Partners of North Carolina, acquired a two-story office building previously used as a call center for Rural/Metro Corporation. The 103,924 ft² office building commanded a price of $5.525m or a paltry $53.13 per improved square foot. When the transaction is considered as a land acquisition, a much stronger per square foot price of $19.51 emerges.

 The planned development, Alta Scottsdale, is a 218-unit apartment complex in two 4-story buildings totaling 185,657 ft² for an average unit size of roughly 850 ft². The 6.5 gross acre site is located at the northeast corner of Granite Reef and Indian School Roads. According to project narrative, Wood Partners intends to develop the property in accordance with “Green Building Programs,” and that there has been “no new apartment development within a 3 mile radius of the site in the past 12 years.” Wood Partners secured $21,515,430 in new construction debt with Fifth Third bank to finance the project. 

Rural/Metro acquired the property from Wayne Howard in 1986 for an undisclosed amount of cash and $2.05m in new debt with Western Savings & Loan. Following completion in 1994, the building was encumbered with increasing debt loads, culminating in a $435m hybrid loan with Credit Suisse in 2012. Rural/Metro is selling the property as part of ongoing negotiations with creditors following a Chapter 11 Bankruptcy filing in August. According to Reuters, the company secured $75m in debtor-in-possession financing to continue operations throughout the re-structuring. 

By:

Paul Dionne

Director of Analytics

Vizzda.com

Shea Medical Plaza Sold Out of Double G Ranch Liquidation

VIZZDA--August 28th, 2012 -- Tim Shaffer of Clotho Corporate Recovery, acting in his capacity as liquidation trustee for Double G Ranch, has sold the Shea Medical Plaza for $6.5m or $148.95 per square foot.  The 43,639 SF medical office building was developed by Lawrence Grinnell of Double G Ranch in 1998 on 2.65 acres East of the Southeast corner of Scottsdale Road and Shea Boulevard. The property includes approximately 34 surface parking spaces as well as a 54,618 SF sub-grade parking facility and is zoned S-R.

The buyer, Duane Nolde of Irgens Development Partners, put $2.36m down and secured $4.14m in new financing with The Privatebank and Trust Company. Based in Minneapolis, MN, Irgens specializes in the construction, acquisition and management of office, industrial and medical commercial properties in Phoenix, Chicago and Minneapolis. Irgens lists six additional properties under management in the Phoenix area including four additional medical properties.

Grinnell acquired the land on which the facility sits on January 8th, 1997 for $1,393,120 from Gary Herberger of Herberger Enterprises. Herberger retained an option to re-purchase the property following the completion of construction which expired without being exercised 12 months after the sale. On April 20th, 2010, Double G Ranch filed for Chapter 11 Bankruptcy Protection in the Eastern District Court of Michigan, a liquidation trust was created to sell the assets of Double G Ranch and Clotho Corporate Recovery was named trustee and administrator. 

By:

Paul Dionne

Director of Analytics

pdionne@vizzda.com