Marley Park Shopping Center Sold for $12.45m

By: Paul Dionne | Vizzda

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. The sale was brokered by the team of Michael Hackett and Ryan Schubert at Cassidy Turley.

The 77,851 square foot neighborhood shopping center is located at the southeast corner of Reems and Waddell Roads in Marley Park, which is entirely contained within the City of Surprise. The improved portion conveying in this sale is comprised of a 49,445 ft² anchor space, two multi-tenant inline spaces totaling 22,302 ft² and a freestanding, multi-tenant strip space totaling 6,104 ft². It was built in 2007 on a 9.378 acre site, zoned PAD.  There are 330 parking spaces and a truck well for a parking ratio of 4.23 per 1,000 ft². The three pad spaces in the shopping center did not convey.

Donahue Schriber previously acquired both the improved and unimproved parcels as land only in July of 2006 from DMB Associates, Inc.—the Master Developer of Marley Park—for $9,616,313 or $16.82 per square foot for the combined 13.19 acres. A portion of that land basis was taken out later that year with the sale of the hard corner at Reems and Waddell for $1.35m or $24 per square foot. In the current sale, Cardon and the aforementioned Canadian investor, Kulwant Singh Sarai, encumbered the property with purchase money debt whose principal amount was not disclosed in the deed of trust but which is reported to be $7.9m.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

One Day After Three Lot Sales, TerraWest Buys Big in Eastmark

By: Paul Dionne | Vizzda.com

As we reported yesterday, Michael Jesberger of TerraWest Communities sold thirty-two of the forty-one lots that changed hands in the greater Phoenix area on the first day of the new quarter. Certainly the $2,773,155 in proceeds from those sales is nothing to sniff at—especially considering each of those deals priced above $1,500 per front foot—but now Jesberger has turned around and acquired 164 final platted lots in Eastmark from DMB Associates, Inc. for $10,323,600. Buy wholesale, sell retail, as they say.

The lots are located in Eastmark DU-7 North, which totals 394 lots on 93.03 gross acres for density units per acre ratio of 4.23. All lots have 17’ front setbacks and 5’ front and rear setbacks. The subject lots have the following dimensions:

Lots	Width	Depth
58	70’	135’
106	55’	124’

This gives us a blended per front foot price of $1,043, though at the time of sale, the lots are merely entitled and have not undergone horizontal improvements. Maracay Homes—the largest buyer from yesterday’s deals—had an agreement to purchase the lots outright which they assigned to TerraWest in exchange for, among other things, a purchase option on the lots. 

The deal was financed through a $4,424,400 lot completion deed of trust with DMB Associates, Inc., secured by half of the lots. Under the terms of the deed of trust, twenty-nine of the 70' x 135' lots have a lot release price of $68,310 and fifty-three of the 55' x 124' lots have a lot release price of $54,450. DMB Associates, Inc. retains rights as master developer and has separate deferred compensation agreements with both Maracay and TerraWest. 

DMB Associates, Inc. Clears $24.4m in Victory at Verrado Sales

VIZZDA—February 5^th, 2014 — Four homebuilders acquired a total of 417 final platted lots in Phase I of Victory, a planned age-restricted community in the Verrado Master-Planned Community in Buckeye. The lots comprise all of Phase 1 of Victory and are a mixture of low and medium density lots. Total consideration tendered at time of sale was $24,400,800.

The four acquisitions are described in greater detail below:

The seller, a trust formed by DMB Associates, Inc. and the Caterpillar Foundation, retain a right of first refusal on the sale and its rights as master developer of Verrado. In addition to lot completion financing provided by DMB, deferred consideration, marketing fee, lot premium agreements are in effect between the homebuilders and DMB.

DMB Associates, Inc. previously acquired what was then the Caterpillar Testing Grounds in March of 2002 from Caterpillar for a “percentage of gross sales proceeds from dispositions under subdivision trust agreement”.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Major Planning Activity in Eastmark as Six Subdivisions Clear Mesa City Council

Development Units planned for Eastmark

Eastmark will soon see new development activity as Mesa City Council recently approved six final subdivision plats within Development Units 8 & 9 of the master planned community. The subdivision plats, recorded as “Encore at Eastmark” (Parcels 9-1 & 9-2) and “The Estates at Eastmark” (Parcels 8-1 through 8-4), are located just west of the southwest corner of Ray and Signal Butte Roads and will contain 555 single-family residential lots on 201.74 acres. In addition to these six residential additions, Mesa City Council also approved a second phase subdivision plat for Eastmark Parcel 7-50—future site of a Basis Charter School, The Great Park, and Community Center—located at the northeast corner of Ray Road and Eastmark Parkway. 

The new residential subdivisions within Development Units 8 & 9 signify a major push by developers DMB, as it is the first development to extend south of Ray Road within the boundaries of the greater Eastmark planned area. The Mesa Planning & Zoning Board previously approved development Units 8 & 9 on June 19^th, 2013—establishing roughly 550 acres of improvable land within the Eastmark Community Plan.

Parcel / Plat	Lot Count / Lot Type	Acreage (per city docs)
EASTMARK 7-50 (PHASE 2)	3 Lots, PCD	10.88 ac
ENCORE AT EASTMARK, PARCEL 9-1	189 Lots, Residential	57.16 ac
ENCORE AT EASTMARK, PARCEL 9-2	99 lots, Residential	38.83 ac
THE ESTATES AT EASTMARK, PARCEL 8-1	74 Lots, Residential	22.91 ac
THE ESTATES AT EASTMARK, PARCEL 8-2	87 Lots, Residential	29.98 ac
THE ESTATES AT EASTMARK, PARCEL 8-3	64 Lots, Residential	31.41 ac
THE ESTATES AT EASTMARK, PARCEL 8-4	42 Lots, Residential	21.01 ac

The expansion south of Ray Road will help solidify one of the initial residential cores of Eastmark, as Development Units 7 & 8, lying west of the intersection of Ray and Signal Butte Roads, are intended to be the central neighborhoods for the eastern and southern portions of Eastmark. According to the 2008 Community plan, “These neighborhoods form the basis of the social fabric of the community and are intended to be designed as intimate neighborhoods that encourage walking and social interaction”. 

Lot sizes will vary throughout the six new subdivisions in Development Units 8 & 9 with typical dimensions ranging from 45’X127 to 90’X140’. The subject sites south of Ray Road are currently owned by a partnership between AV Homes and Terrawest with backing from Jen Partners, who acquired the ±527 acre parcel from DMB Mesa Proving Grounds, LLC, in November of 2012 for $32,157,150.00 or roughly $61,019.26 per acre.

By:

Cody Weisel

Planning Analyst

Vizzda.com

DMB Associates, Inc. Sells Market Street at DC Ranch for $33.4m

VIZZDA—December 6^th, 2013 — Houston, Texas-based Whitestone REIT (NYSE: WSR) has completed its acquisition of Market Street—the office/retail mixed-use core of the DC Ranch master-planned community—for $33.4m or $138.61 per square foot. Whitestone paid cash for the Safeway-anchored community center located at the southeast corner of Thompson Peak Parkway and Pima Road in Scottsdale. The sale price reflects information found on the affidavit of property value that accompanied the deed, other sources report a sale price of $37.4m or $155 per square foot.

The property is assessed as 253,773 ft² comprised of 173,290 ft² of retail including a 56,400 ft² anchor space and a 9,084 ft² full-service restaurant, as well as 80,483 ft² of office space. Financing documents from 2005 indicate a total 240,948 net rentable square feet and on 241,280 gross ft² built from 2001 to 2004 on 22 acres, zoned C-O. The site also features an undeveloped pad, previously used as auxiliary parking.

Work on the project began in March of 2000 with the transfer of the Market Street parcel from DMB Associates, Inc. to a special purpose entity for nominal consideration. In November of 2005, DMB encumbered the property with a $47.5m debt with Archon Financial, an affiliate of Goldman Sachs, bearing 5.5% interest and maturing December 6^th, 2015. At the time of securitization, the property was 95.3% occupied and generating $3,611,678 in annual net operating income. The property is currently 79.3% occupied.

As previously reported by Vizzda, Whitestone REIT has acquired a number of trophy retail assets in the Valley, including the Scottsdale Mercado, Anthem Marketplace and the Village Square at Dana Park. Subscribe to Vizzda or schedule a demonstration for more information on this and any other deal in Maricopa and Pinal Counties.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Two Homebuilders Take Down 134 Lots in Verrado for a Combined $6.516m

November 20th, 2013 -- DMB Associates, Inc. (DMB) has completed the sale of 134 final platted lots in Verrado Phase 3 South, Phase C to Maracay Homes and GSO Capital as part of its existing land banking arrangement with Meritage Homes. The 272 lot subdivision sits on 67.23 acres just east of the southeast corner of Verrado Way and Thomas Road and received approval for its final plat on November 8th, 2013. The transactions break down as follows:

• GSO Capital (dba Community Development Capital Group) acquired 74 lots comprised of 34 of 34 lots in parcel 2.201 and 23 of 23 lots in parcel 2.204, both with typical dimensions of 55' x 120' as well as 17 of 78 lots in parcel 2.205 with typical dimensions of 75' x 135' for a total of $3,383,700 or $45,725 per planned lot and $767.2 per planned front foot. A deed of trust accruing to the benefit of DMB and secured by thirty of the lots stipulates to lot completion payments of $972,400 for parcel 2.201, $657,800 for parcel 2.204 and $625,600 for parcel 2.205. This acquisition is pursuant to an existing land-banking arrangement between GSO and Meritage Homes and was administered by Steve Benson of Rose Asset Management.

• Maracay Homes acquired 60 lots, or substantially all remaining lots in parcel 2.205, with typical dimensions of 75' x 135' for $3.132m or $52.2k per lot planned and $696 per planned front foot. This transaction was also partially financed with deferred lot completion payment to DMB, specifically $2,200,800 secured by 30 lots in parcel 2.205.

Both transactions were pursuant to existing purchase agreements with DMB dated May 9th, 2013. Per those agreements, DMB retains a right of first refusal on the lots, unrecorded deferred compensation and marketing fee agreements with Maracay, GSO and Meritage. In August, Vizzda reported on the sale of 367 lots to four home builders including 49 lots to Meritage via its land-banking arrangement with GSO and 32 lots to Maracay.

By:
Paul Dionne
Director of Analytics
Vizzda.com

First Solar Facility in Mesa Sold to Apple Affiliate for $113m+

VIZZDA—November 5^th, 2013 — First Solar ($FSLR) has sold its Mesa manufacturing facility to an entity reportedly formed by Apple ($AAPL) for $113,576,875 or $84.66 per ft². The property is located at 3740 S. Signal Butte Road on the southwest corner of Signal Butte & Elliot Roads in Mesa. The facility is part of DMB Associates, Inc.’s 3,154-acre Eastmark masterplan community. First Solar acquired the property as 133 acres of land July 15^th, 2011 from DMB for $2 PSF, as their first phase manufacturing facility. 
 

Future site of Apple's Sapphire Glass Manufacturing Facility

An additional 129-acre second-phase parcel was leased from DMB with plans for a similar facility. In 2012 the subject building was constructed- featuring 1,341,492 SF of improvements per assessor calculation on an 83.17-acre site. First Solar had intended to use the facility to manufacture cadmium telluride photo-voltaic modules, but the site was never commissioned for manufacture and was instead used for operations, maintenance, & inventory. Financial filings indicate First Solar realized an $56.6M asset impairment for the Mesa facility in its third quarter filing with the SEC.  

On October 3^rd 2013, First Solar entered a purchase agreement to sell its Mesa assets and later split the 133 acre first phase parcel into a 50-acre land portion and 83 acre factory site. VIZZDA reported on October 8^th, 2013 that Coolidge, Arizona-based Bright International acquired the 50 acre land parcel at $1.60 PSF. The buyer for the 1.3m+ SF building is Platypus Development LLC- which although no direct entity linkage is made to Apple Corporate—all correspondence relating to the sale is in care of Phoenix, AZ-based law firm, Greenburg Traurig—an announcement made by Arizona’s Governor confirms the purchase.

By:

Hadden Schifman

Managing Director

Vizzda.com

Vizzda Welcomes DMB Associates Inc.

Vizzda provides Phoenix's top firms with the highest caliber of commercial real estate data. Today we extend a warm welcome to our newest client, DMB Associates Inc.

Over the past 30 years, DMB Associates Inc. has developed many of the finest residential and commercial projects in the nation. DMB embraces the artistry of great planning and design to create extraordinary environments that enrich lives, are rewarded in the market, and have a positive impact on the community.

Vizzda's provides the fastest and most detailed data in the industry. To learn more visit www.vizzda.com or contact Kris Thompson at kthompson@vizzda.com.