Vacant West Phoenix Distribution Center Sold for $27.97m

By: Paul Dionne | Vizzda.com

Steve Layton of LBA Realty and Doug Barkdull of Buzz Oates Enterprises closed the sale of a nearly 700k ft² vacant distribution center near 75^th Avenue and Lower Buckeye Road in Phoenix for $27.97 or $41.00 per square foot. This is the second highest price paid for an industrial asset on an absolute basis, surpassed only by the acquisition of Continuum Business and Technology Campus in Chandler for $51.75m in late February. In September of last year, Vizzda reported that LBA Realty had sold three industrial and office properties to Cole Real Estate Investments for $56.33m.

The 682,291 ft² facility was developed by Buzz Oates Enterprises in 2009 on a 37 acre site, zoned A-1. There are 125 dock doors and six large grade doors. Buzz Oates Enterprises acquired the land on which the distribution center sits in July of 2005 for $4,210,526. Two years later a related entity to which Buzz Oates had transferred title of the land encumbered the site with $26.65m in new debt with Bank of America. Final plat approval for the single 37.3811 acre industrial lot was recorded in early 2009. Prior to yesterday’s sale, loan documents stipulate to an outstanding balance on the Bank of America Note of $16.125m.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com
 

Southwest Value Partners Buys 109.69 Acres in Chandler's Price Corridor

Vizzda -- 2/25/2014 -- Justin Merritt for San Diego-based Southwest Value Partners (SWVP) has purchased a 463,658 square foot industrial engineering facility along with 81.07 acres of land in the Continuum business and technology campus in Chandler, once owned and occupied by Motorola. The property sold for $51.750m and there was $41m in new debt issued to SWVP by US Bank. The purchase by SWVP assembles 114.80 acres of land ready for development in Chandler's Price Corridor.

Southwest Value Partners purchased all of the Continuum project, except for the Cyrus One data center on lot 3, assembling143.42 acres of contiguous land in Chandler.

The industrial engineering facility on the site totals 463,658 square feet, or 403,300 rentable square feet, was built in 1985 on a 28.63 acre lot. Current tenants for this building include Ontrac, Nationstar Mortgage, and Express Messenger Service. Ontrac having just built a 55k square foot call center that completed November 22^nd, 2013. The remaining 81.07 acres are broken up between five lots, ranging from 3.82 to 30.21 acres

The Continuum business campus is a mile and a half south of the Loops-101 & 202 freeway interchange in the Chandler Price Corridor. The industrial engineering facility is located at 2501 S Price Rd. The campus has a nitrogen pipeline and dedicated SRP substation that is capable of providing 14 megawatts of electric power.

Capital Commercial Investments previously acquired the land for Continuum (150.39 gross acres) from Motorola on July 27^th, 2009 for $18.5m or $123,011 per acre. The Continuum project was platted on August 25^th, 2011. Capital Commercial Investments sold lot three (northeast 39.89 acres) to Cyrus One on September 6^th, 2011 for $12,198,955 or $39.89 per acre. Cyrus One built a 919,166 square foot data center on the site in 2012. In the subject sale,  Capital Commercial Investments sold the property to SWVP pursuant to a sale agreement dated December 11^th, 2013.

By:

Daniel Alpers

Director of Civil & Municipal Projects

Vizzda.com