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

Thistle Landing Office Park Noticed on $37m CMBS Note

Thistle Landing Office Park

 VIZZDA- September 19th, 2013 -- A Houston-based Tenant-in-Common (TIC) investment group was noticed for trustee sale yesterday on their holdings within the Thistle Landing office park--located Northwest of Chandler Blvd & I-10. The foreclosing beneficiary is an entity formed by Torchlight- who acquired the $37M note as part of their newly launched Debt Opportunity Fund IV. 

Thistle Landing office park is comprised of four freestanding back-office/flex facilities on 38 acres, all built in 1998. Three of these buildings, totaling 281,858 SF, were included in the sale. 

• 4801 E Thistle Landing: 101,006 SF
• 4805 E Thistle Landing: 90,299 SF
• 4811 E Thistle Landing: 90,553 SF

The borrowers had previously acquired the three buildings on November 1st, 2005 for $51.176M or $181.57 per square foot. PNC Bank provided the initial funding of $37M debt, which was later securitized and assigned to Credit Suisse as part of a commercial mortgage-backed security (CMBS). 

4801 E Thistle Landing

 At the time of securitization, the property was 94% leased; including:

• 101,006 SF leased to CheckFree Corp, expiring April 30th, 2010
• 72,567 SF leased to EquiFirst, expiring December 11th, 2010
• 65k SF leased to Alltell, expiring January 31st, 2007

The debt was originally scheduled to mature November 1st, 2015, bearing a 5.22% annual interest rate. The TIC investment group referenced above split the property into 20+ ownerships. A joint venture formed by Everest Holdings and Walton Street capital acquired the 4809 E Thistle Landing--the fourth building in the project--earlier in August at $66 per square foot.

Did you know VIZZDA covers distress properties in addition to all the sale transactions- monitoring auction dates, credit bids, and providing direct contact detail for lenders/beneficiaries. The above property is just one of the many distressed opportunities we track daily. Call Kris Thompson today @ (480) 383-9310 to schedule a demo.

7025 N Scottsdale Road is Noticed for Trustee Sale on $24.5m CMBS Debt

VIZZDA—May 30^th, 2013 — A notice of trustee sale was recorded May 28^th, 2013 for 7025 N Scottsdale a large office building in Scottsdale whose major tenants include Waste Management and First Western Trust Bank. Located North of the Northeast Corner of Scottsdale Road & Indian Bend,  7025 N Scottsdale is a 3-story office building totaling 91,148 ft² built 2002 on 2.87 acres. The property features two decks of sub-grade parking.

Scott McLaughlin of C-III Asset Management is the special servicer on behalf of a CMBS vehicle underwritten by Credit Suisse and in care of Wells Fargo as Trustee. Column Financial issued the original $24.5M debt to an entity formed by Falcon Real Estate Investment following their acquisition of the property on October 3^rd, 2006 for $32.75M or $359.31 per ft². Falcon purchased the 100% occupied property from Lees Mayfield, the building’s original developer.

The note was later securitized and assigned on August 25^th, 2008 to Credit Suisse CMBS Series 2006-C5, maturing October 11^th, 2013 and bearing a 5.77% annual interest rate. Court records indicate Mr. Michael D Wilson of Wilson Property Services was appointed receiver on November 5^th, 2012. Mr. Jacob Maskovich of Bryan Cave is the successor trustee under the deed of trust, and the trustee sale is currently scheduled for August 29^th,  2013 at 10:00 AM.

By:

Hadden Schifman

Managing Director

Vizzda.com