Vizzda Weekly - week ending 1/29/16

Keeping you up-to-date with CRE deals in the Phoenix Metro Market
Team Vizzda would like to present Vizzda Weekly - our complimentary weekly recap of commercial real estate activity in the Phoenix Metro Market. Every Monday we send out Vizzda Weekly with the number of events we reported on and cataloged along with some featured events from the previous week.
Keep in mind, this is just the tip of the iceberg. Vizzda provides in depth information for all commercial properties - Multifamily, Office, Industrial, Retail, Storage, Hospitality, Mobile Home, Senior Facilities, Golf, Hospitals, Land & Lots - in Phoenix Metro Market to our subscribers.
For the week ending January 29, 2016 Last week, Vizzda researched 46 Sales events totaling $74,341,366 in transaction value. We also reported on and cataloged 4 Distressed Property notices and 21 Planning & Zoning events.
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What happened in LAND last week? Vizzda reported on and cataloged 15 Land Sales and 1 Notices for Trustee Sale in the Phoenix Metro Market.
	Featured Land Sale: ±1 Acre Sells for $1.2M in Surprise An entity tracing to Oregano's (Mark S Russell & Frank B Sbordone) purchased this land on 1/28/2016 for $1.275M with $255K down and $1.02M debt with Compass Bank. Leased to Oregano's commencing 1/28/2016 and expiring1/28/2026 with two 5-year options to extend. An additional $1.548M debt with Compass Bank encumbers this lease. This property consists of 1.52 acres of commercial land zoned C-2.  Vizzda subscribers - please click here for the full report.
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What happened in OFFICE last week? Vizzda reported on and cataloged 3 Office Sales, 1 Notice for Trustee Sale and 1 proposed Office Planning & Zoning event in the Phoenix Metro Market.
	Featured Office Sale: ±3 Acre Office Property Sells for $1.25M in Phoenix  On 1/25/2016 Cipriano Ionutescu acquired this property from an entity tracing to Tye Smoole for $1.2M with $1.18M in seller-carried debt. This property consists of one 1-story building that was built in 1966 on 3.47 acres and zoned R-5.  Vizzda subscribers - please click here for the full report.
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What happened in MULTIFAMILY last week? Vizzda reported on and cataloged 8 Multifamily Sales and 3 proposed for Planning & Zoning events in the Phoenix Metro Market.
	Featured Multifamily Sale: Mobile Home Park Sells in Apache Junction for $3.8M An entity tracing to Cobblestone Real Estate / Tricon Capital purchased this property on 1/11/2016 for $3.8M with $1.5M down. Funded by $5.6M debt with Starwood Mortgage Capital and cross-collateralized with Wickiup Mobile Home & RV Park. This property was built on 13.72 acres in 1972 and consists of a 206-space mobile home park. Vizzda subscribers - please click here for the full report.
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What happened in RETAIL last week? Vizzda reported on and cataloged 12 Retail Sales, 1 Notice for Trustee Sale and 1 proposed Retail Planning & Zoning event in the Phoenix Metro Market.
	Featured Retail Sale: ±44K SF Retail Property Sells for $3.1M in Tempe An entity tracing to Wentworth Property Company purchased this property on 1/27/2016 for $3.15M. Seller traces to Saxon Realty. Sale funded by $4.7M debt with Crow Holdings. The property consists of one single-story building on 2.38 acres zoned PCC-1.  Vizzda subscribers - please click here for the full report.
Would you like the contact info for the new owner? Vizzda has it!
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What happened in INDUSTRIAL last week? Vizzda reported on and cataloged 10 Industrial Sales in the Phoenix Metro Market.
	Featured Industrial Sale: 3.5 Acre Industrial Property Sells for $1.6m in North Phoenix On 1/25/2016, this property sold to an entity tracing to Republic Services for $1.6M with $25K down. Seller traces to Loftco. Property consists of 3.5 acre secure yard zoned A-1 near Deer Valley and Cave Creek roads. Subscribers - please click here for the full report.
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DISCLAIMER: The information contained herein is from sources deemed reliable. We have no reason to doubt its accuracy but do not guarantee it. It is the responsibility of the person viewing this information to independently verify it.

259,000 Square Foot North Loop 101 Business Center Sells for $41.75 Million

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Los Angeles-based Regent Properties is the new owner of the North Loop 101 Business Center located at the southwest corner of 7^th Avenue and the 101 Freeway. The 259,142 square foot office sold for a price of $41.75 million or $161 per square foot, and was funded by a $29.5 million loan with Compass Bank.

The North Loop 101 Business Center consists of three single-story buildings built 2000 and one two story building built 2006. Current tenants include Peter Piper Pizza regional headquarters, Continental Dental Laboratory, Maldonado Medical, and Aviation Communication.

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



        

GoDaddy-Leased El Dorado Tech Center Sells for $17.8 Million

The El Dorado Tech Center in Gilbert sold to Walton Street Capital and Everest Holdings on Wednesday for $17.8 million, or $99 per square foot. The buyers financed the sale with a $13.8 million new construction loan with Compass Bank. GoDaddy occupies 70% of the 180,480 square foot two-story building, which is located at the southwest corner of Gilbert Road and Arizona Avenue. Seller James L Bates originally acquired the property as vacant land for $5,555,000 in July of 2000.

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.

Evergreen Devco Sells Goodyear Centerpointe Improvements for $44.5m

By: Paul Dionne | Vizzda 

Alexander Haagen III of Haagen Co. paid $44.5m for the improvements in the Goodyear Centerpointe power center in a deal valuing the 324,068 ft² of built retail property at $137.32 per square foot. The seller was the original developer and ground lessee for Goodyear Centerpointe, Evergreen Development Company. Haagen tendered $15.6m in cash for the buildings and secured an additional $28.9m in financing with RGA Reinsurance which matures in August of 2034. Marketing materials provided by the seller indicate an 8.25% capitalization rate at the listed price of $44.75m, implying a capitalization rate for this deal of 8.296%.

The Goodyear Centerpointe power center is located at the northeast corner of I-10 and McDowell Road in Goodyear. The 303,391 net rentable square foot complex includes three single-tenant pads, three freestanding multi-tenant spaces, an anchor with attendant inline portion demised into nine spaces and two unbuilt outparcels. The improvements were completed in 2008 and sit on a 31.54 acre site that is master ground leased to Evergreen Development Company by Cardinal Capital for 99 years, commencing in 2006. Per the previously mentioned marketing materials, the power center is 98% occupied with a stable mix of credit tenants, including: 

• Toys R Us: 64k ft² for ten years with eight 5-year renewals commenced May 2007
•  BevMo: 15k ft² for ten years with two 5-year renewals commenced May 2007
• Texas Roadhouse: ten years with three 5-year renewals commencing January 2015
• Red Lobster: ten years with three 5-year renewals commenced September 2007 
• Olive Garden: ten years with three 5-year renewals commenced September 2007
• Conn’s Appliances: commenced June 2013 
• Sport Chalet: commenced January 2012
• Paradise Bakery: commenced October 2007 
• Party City: commenced March 2008

Evergreen entered into the ground lease with Cardinal Capital for the 31.54 acres that comprise Goodyear Centerpointe in two leases: the eastern 15.54 acres for 78 years and the western 16 acres for 77 years, both commencing January 9^th, 2002. In 2006, both ground leases were amended to extend the term to 99 years and Evergreen encumbered the property with $37.9m in new debt with Comerica Bank. In June of last year, Evergreen was loaned an additional $23,812,500 against the property by Compass Bank, increased by $3.1m to $26,912,500 in November of that year. There is a 10% escalation to the base rent on the ground lease in 2016 and an additional 10% increase every ten years thereafter for the remaining 89 years of term. 

To Contact the Author:

Paul Dionne - pdionne@vizzda.com

Formerly Distressed Student Housing in Tempe Sold for $38.7m

By: Paul Dionne | Vizzda.com

Block 1949

Block 1949—the “Class A” student housing and multifamily development located east of the southeast corner of McClintock and University Drives—was acquired by a tenancy-in-common (TIC) group comprised of Consolidated Investment Group (CIG) and CWS Capital Group (CWS) for $38.7m or $172k per door. CIG is the majority interest in the new ownership structure—acquiring 85% of the TIC interest in the property in an all cash purchase. In an interesting wrinkle to the deal, CIG was founded by David Merage who is the brother of Greg Merage, whose MIG Capital acquired the nearby Quadrangles Apartments in April of this year.

Block 1949 is a 225-unit, 640-bed apartment and student housing complex in one 4-story, courtyard style building totaling 264,555 net rentable square feet. The project sits on 6.35 acres of MU-4 zoning in Tempe and was completed in 2009. There are twenty-five studio units, ten live/work units, sixty-four two-bedroom, twenty-seven three-bedroom and ninety-nine four bedroom units. The five-level on-site garage has 702 parking spaces or 2.75 spaces per unit. The new ownership plan to re-brand the property as Regents on University.

Block 1949 Apartments and Shuttle

The property was originally acquired by JLB Partners as raw land in April 2008 for $6.15m or $22.22 per unimproved square foot. JLB financed $4m of the purchase price, which they took out with $30m in construction debt with Compass Bank.  Less than a month later, a Final Plat for Block 1949 was recorded and construction began. A joint venture between Pierre Education Properties and Partners Group acquired the completed project in March of 2011 for $52m or more than $230k per door, with $13.5m down and $38.5m new debt with Deutsche Bank. The property was placed into receivership in September of 2013 and reverted to affiliates of Deutsche Bank in January of 2014 with a $44m credit bid. 

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