The Vizzda Weekly - Greater Phoenix - July 5th, 2016

The Vizzda Weekly Phoenix Edition July 5th, 2016 Last week in Phoenix, Vizzda tracked 2 new commercial projects and 64 sales totaling$522,804,737. Below are reports for five of the properties.

LAND On 6/27/2016, Robert Stehlik and Lawrence Gabriele acquired this land on for $1,222,000 with a new $4,727,998 construction loan tracing to Scott Gould and $1.0m 2nd lien with Evelyn Petersen and Edgar Stone. The property is ± 0.49 acres of vacant land and is currently proposed for a nine unit town home development. View Full Report (1 of 14 land sales)

OFFICE Desert Troon acquired this office on 6/24/2016 from Coppersmith Brockelman for $10.15M with $3.0M down and two loans: $7.0M new debt with Compass Bank and $4.2M seller-carried. The property consists of ±134K SF 2-Story Office in one building on ±7.21 acres zoned C-2. View Full Report (1 of 8 office sales)

MULTIFAMILY Resmark Companies sold this property to Wayne Howard on 6/24/2016 for $2.025M or $45,000 per unit. The property consists of 45 multifamily units in one 1-story & three 2-story buildings totaling 24,087 SF and is zoned R-4. View Full Report (1 of 14 office sales)

INDUSTRIAL On 6/30/2016, an entity tracing to Clarius Partners & Walton Street Capital purchased this property for $20M from the seller and former tenant Covance Laboratories. The property is a ±290K SF laboratory in one 2-story building on ±78.79 acres zoned PAD. View Full Report (1 of 13 industrial sales)

RETAIL Earnhardt Auto Centers purchased this property from Alice & Donald Fehrenbach on 6/27/2016 for $14,922,545 with $2,322,545 down and $12.6M debt with JPMorgan Chase Bank. The property is a ±71K SF car dealership in three single-story buildings on ±24.33 acres zoned C-3. View Full Report (1 of 15 retail sales)

Desert Troon Re-Purchases North Scottsdale Trophy Asset

Perimeter Gateway I

VIZZDA--December 18th, 2013 -- Desert Troon Companies is once again the owner of the Perimeter Gateway I office building complex. Troon had owned the North Scottsdale trophy asset until November 23rd, 2011 when the special servicer for the $44m CMBS note encumbering the property foreclosed. The subsequent bank sale was for $26m or 116.31 per square foot.

The 223,537 square foot flex office complex was developed by Koll Development, who commissioned Butler Design Group as architect and Hardison-Downey Construction as the contractor. The project consists of three, two-story buildings built 2001--with an additional cafe building built in 2007--on 10.80 acres zoned I-1/PCP. The two office buildings total ±110k square feet each. The third building is a two-story café building.

There are two current tenants occupying 47% of the complex: 

• T-Systems North America occupies 51,581 square feet and their lease is set to expire in December 31st, 2014
• North Central University occupies 54,213 square feet and their lease is set to expire in August 31st, 2018.

The property was entitled by the city of Scottsdale in 2000, then developed by Koll in 2002. The Koll Development and Clarion Partners joint partnership sold the completed property to Desert Troon on May 30th, 2003 for $40.2m, or $173.84 per square foot, and $32m new CMBS debt with Morgan Stanley. 

Subject Property

The $32m note was released, and $44m new debt with Artesia Mortgage Capital was issued on October 13th, 2006. At the issuance of this debt, DHL was occupying 100% of the buildings rentable space, and the site was appraised at $57m. In 2003, it was reported that at least 106,169 square feet of the DHL leased space was to expire on June 30th, 2012. The new note was securitized July 12th, 2007 and assigned to CW Captial as special servicer for Wells Fargo Bank. 

Constructive notice was given on August 5th, 2011 for the $44m note. The property reverted to CW Capital, as trustee for the registered holders of the CMBS debt, on November 23rd, 2011 with a $26m credit bid amount. At that time, however, Troon remained the property manager on the site and retained the four surrounding buildings that make up the 5-building, ±540k square foot office complex known as Gateway 101.

By:

Daniel Alpers

Vizzda.com

Marketplace One Realizes 47.5% Annualized Rate of Return on Sale of Surprise Acreage

VIZZDA—May 8^th, 2013 — Tim Brislin of Harvard Investments paid $14.35m for 359.91 acres of roughly graded residential land within the Desert Oasis and Sunrise Ranch subdivisions in Surprise. The sales price represents a $39,871 Per Acre Price and a $0.91 Per Square Foot Price. Harvard paid cash for the property and annexed 1.27 adjacent acres pursuant to an outstanding agreement prior to the acquisition.

Desert Oasis is planned for 2,691 total lots and Sunrise Ranch is planned for approximately 400 total lots. The portion which conveyed to Harvard Investments was comprised of the final 229.64 acres of unfinished land within Desert Oasis and substantially all of Sunrise Ranch’s 130.27 acres. The two subdivisions are located west of the northwest corner of 163^rd Avenue and Jomax Road. They were assembled and entitled by Desert Troon and Centex Homes before selling to Marketplace One in 2011.

Marketplace One and its partner, BayNorth Capital of California, acquired the parcels—less the property annexed in this transaction—for $7.08m or $19,721.24 per acre and $0.45 per square foot—on March 3^rd, 2011 in an all cash purchase. The current sale price of $14.35m reflects an absolute rate of return of 102.6% which annualizes to a greater than 47.5% rate of return.

By:

Paul Dionne

Director of Analytics

Vizzda.com