Two Phoenix Area Senior Facilities Sell for $75 Million

The Groves at Goodyear area map

Columbia Pacific Capital Management sold two valley senior facilities yesterday for a total of $75 million. The sales include The Oaks at Gilbert and The Groves at Goodyear, both at 134 units each. Salt Lake City-based Bridge Investment Group Partners purchased the two properties, funding the sale with $77.6 million cross-collateralized debt with Wells Fargo.

The Oaks at Gilbert is located near the southeast corner of Val Vista Drive and the 202 freeway in Gilbert, while The Groves at Goodyear is located at the northeast corner of Pebble Creek Parkway and West Virginia Avenue in Goodyear. Both assets total approximately 94,000 square feet each and include studio, one, and two-bedroom unit floorplans.

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NexMetro Buys in Palm Valley

By: Paul Dionne | Vizzda

Site Plan Rendering for Avilla

A piece of land in the master-planned Palm Valley community that was previously planned for commercial development was acquired from an investor group on Friday and will now be developed as density housing. Tucson-based rental property developer NexMetro Communities paid $2,344,795 or $5.55 per square foot for the northwest hard corner of Falcon Drive and Indian School Road in an all cash deal. The seller was a special purpose entity controlled by Wayne Howard, Joseph Meyer Jr. and Paul Johnson Jr. NexMetro owns or is actively building over 1,000 single family residences for rent in metropolitan Phoenix and the Dallas/Fort Worth metroplex and plans to expand into other sunbelt markets in 2015.

The 9.698-acre graded parcel conveying as Tract P of Palm Valley was platted as Future Commercial Use in 2004 but was rezoned to high density residential following approval from the Town of Goodyear in February of this year. Plans, as submitted, call for 125 courtyard and townhome dwellings comprised of twenty-six one-bedroom units at 636 ft², sixty-two two-bedroom units at 966 ft² and thirty-seven three-bedroom units at 1,244 ft² in freestanding, 1-story buildings totaling 122,396 rentable square feet. There will be 250 parking spaces—including twenty-eight garages—on site and the project is approved for a density of 12.88 density units per acre.

Tract P was previously acquired by a different investor group than the current sellers in February of 2006 for $3,802,086 or $9 per square foot from Suncor Development as master developers of Palm Valley. That sale included $2,471,950 in purchase money debt with Marshall and Ilsley M & I Bank. M & I noticed the property for Trustee Sale in October of 2008, but before it could be foreclosed upon, the current sellers purchased the note and were able to take possession of the property with a $770k credit bid in early 2009. Documents on file with the town of Goodyear indicate that NexMetro has been pursuing re-zoning of the parcel since at least September of last year.

To Contact the Author:

Paul Dionne – pdionne@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

Mattamy Homes Picks Up ~80 Acres in Goodyear, Planned for 218 Lots

VIZZDA—June 24^th, 2013 — Mattamy Homes, represented by their VP of Land, Ryan Huffman, has acquired an 80.22 net acre graded parcel in the Palm Valley subdivision of Goodyear. Following final plat approval by Goodyear Town Council on January 28^th, 2013, the land is approved for 218 single-family homes, as the residential portion of Palm Valley, Phase IX. The all cash purchase price was $9,626,400, which represents per unit prices of $120k per acre, $2.75 per square foot and $44,158 per planned lot.

The property has an interesting history: it was assembled on December 31^st, 1986 as a larger parcel in a cash transaction. A 145.43-acre portion was sold to Southwest Solar Technologies on November 25^th, 2009 for $6,348,500 or $1.00 per square foot. While Southwest Solar did not finance the transaction, they secured $2.8m in new debt with affiliates of Apollo Group on April 1^st, 2011.The current seller, an entity formed by Crown West Realty with backing from Petrus Partners of New York acquired the property from Southwest Solar three weeks after it was encumbered.

The prior sale price of $3.9m or $0.61 per square foot represents a 38.5% decline in value over an 18-month holding period. Conversely, Crown and Petrus were able to realize 146.8% rate of return over a holding period slightly greater than two years. Pursuant to the April 12^th, 2013 purchase agreement between Crown West and Mattamy, Crown West retains the 8.75 acre multi-family parcel on the hard corner to the southeast and Mattamy will construct and be reimbursed for horizontal improvements on that land.

By:

Paul Dionne

Director of Analytics

Vizzda.com

FirstBank Expands its Arizona Operations with $5.2m Bulk Retail Acquisition

VIZZDA—January 8^th, 2013 — Colorado-based FirstBank is adding to its eleven existing branches with the acquisition of three retail pads from restaurant franchisee, The Briad Group. The properties, which until recently had been occupied by T.G.I. Friday’s restaurants, were acquired in three consecutive transactions of $1,733,333 each totaling $5.2m. They are located in Mesa, Goodyear and Glendale and described in greater detail below:

• Mesa Location: A 7,145 ft² retail pad built in 1998 on a 1.62 acre parcel, zoned C-2. The property is located South of the Southeast corner of Power Road and US 60 in the Superstition Springs Parcel 8 Lot 2 subdivision and conveys with 111 parking spaces.

• Goodyear Location: A 5,848 ft² retail pad built 2000 on a 1.51 acre parcel, zoned PAD. The property is located at the Southeast corner of Litchfield and McDowell Roads in the Palm Valley Pavilions shopping center and conveys with 62 parking spaces.

• Glendale Location: A 5,892 ft² retail pad built 1993 on a 0.88 acre parcel, zoned PAD. The property is located at the Southeast corner of 59^th Avenue and Bell Road in the Telavi Towne Center and conveys with 52 parking spaces.

The Briad Group acquired the properties in separate transactions going back to May 1993. On January 30^th, 2008 Briad transferred all three properties—and presumably many others—to a related holding company and encumbered them with $61.125m new cross-collateralized debt with M & T Bank, which is released with this sale. FirstBank paid an average of $275.35 per ft² for the three properties.

By:

Paul Dionne

Director of Analytics

Vizzda

Tratt Properties purchases ±71 acre land assemblage in Goodyear

VIZZDA—July 26th, 2012 -- Tratt Properties based in Phoenix acquired a land assemblage in Goodyear, previously planned as the Sarival Crossing Business Park for $2,581,475 or $35,948 per acre. The site totals 71.81 acres per Phoenix zoning docs and is zoned PAD. Sarival Crossing was recommended for final plat approval by Goodyear planners June 23rd, 2008. The final plat called for subdividing the land into 18 parcels--an 8.68 acre Commercial Business Park, 30.59 acres of land zoned I-1 and 20.94 acres of land zoned I-2.

Larry Van Tuyl of Van Tuyl Auto Group was the seller. Mr. Van Tuyl previously acquired the property June 29th, 2009 in a non-money sale after purchasing a $14.151m note dated May 24th, 2006 from M&I Bank on April 1st, 2009. The last purchase of the property was May 24th, 2006 for $ $7,808,421. Tratt Properties has a distinguished history of developing and owning distribution centers in the Greater Phoenix area. No debt was recorded with the sale. Tratt acquired the property under the legal entity: Elwood Logistics Center LLC.

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BY:
Hadden Schifman
Managing Director

Hadden@VIZZDA.com