Blackhawk Corporate / Northgate Business Centers at I-17 & 101 Sell for $27.5 Million

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Over 250,000 square feet of office space near the I-17 and 101 freeways sold Tuesday in a bank sale for just under $27.5 million, or $109 per square foot. Cohen Equities is the new owner of these offices, encumbering the property with $29.5 million debt with Taconic Capital. The sellers, special servicer LNR Partners, had acquired these assets at CMBS trustee auction in 2012.

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Blackhawk Corporate Centers and Northgate Business Center rest on 24.4 acres of land. The 252,350 square feet of space is divided among three single-story buildings built in 1997 and 1998.

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Scottsdale Plaza Resort Noticed on $65 Million CMBS Loan

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The 404-room Scottsdale Plaza Resort located at the northwest corner of Scottsdale and Indian Bend Roads was noticed for trustee sale Thursday. The note was originally valued at $65 million when it was recorded in 2006 with Canadian Imperial Bank of Commerce. It was securitized that same year, and in 2015 beneficial interest was assigned to special servicer LNR Partners.

The Scottsdale Plaza Resort stands on 37 acres and consists of sixty-two buildings totaling nearly 360,000 square feet. It includes a restaurant, health club, racquetball club, retail component, and five pools.

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Two Industrial Properties Noticed on $27.8 Million in Debt

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Two buildings of the University of Phoenix Riverpoint project were noticed for trustees sale on Friday. Riverpoint Buildings I & IV total nearly 191,000 square feet in one and two-story buildings built in 2002, and were once 100% leased to University of Phoenix with leases expiring in mid-2014. Per a press release from January 2014, Cassidy Turley was seeking tenants for the property on behalf of Spirit Realty Corporation.

The subject loan is dated 2005 with an original amount of $27.8 million and Spirit Realty Capital as trustor. The loan was securitized in 2005 and is now care of US Bank as trustee, with Midland Loan Services and LNR Partners as special servicers. The loan was modified to $30.3 million in July of 2005.

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Mercado at Scottsdale Ranch Sold to Whitestone REIT for $21.25m

VIZZDA—June 20^th, 2013 — John T Rassier of Rassier Properties—a Danville, California-based retail property developer—has completed the sale of The Mercado at Scottsdale Ranch to locally-headquartered Real Estate Investment Trust (REIT), Whitestone. Whitestone paid $10,15m in cash and assumed Rassier’s outstanding $11.1m CMBS debt in care of US Bank as trustee. The $21.25m purchase price reflects $179.65 per square foot and a 30% premium to the prior purchase price of $16,241,259 in August of 2003.

The Mercado at Scottsdale Ranch is a grocer-anchored neighborhood shopping center totaling 118,285 ft² located east of the southeast corner of 96^th Street and Shea Boulevard. The property includes a 29,431 ft² anchor space occupied by A.J.’s Fine Foods, a 12,900 ft² sub-anchor space occupied by Walgreen’s, 64,948 ft² of general inline space and Goldie’s Sports Bar, which occupies a 6,166 ft² 2-story space in the southeast quadrant of the property. The Mercado sits on a 8.594 net acre site, zoned c-2 and was completed in 1992.

Rassier previously acquired the property as Tenant-In-Common (TIC) with two other investors on August 4^th, 2003 for the above mentioned purchase price or $136.30 per square foot. The TIC group paid $7,340,348 in cash and assumed an earlier $9.4m CMBS note with Northland Financial bearing interest of 7.26% per annum, maturing January 1^st, 2028 and stipulated to have a balance $8,860,910. The Tenancy-In-Common interests were consolidated for nominal consideration on July 28^th, 2006 and the property was refinanced with $11.1m in new debt with Goldman Sachs Commercial Mortgage Capital, bearing interest of 5.8% per annum and maturing August 16^th, 2016.

The note was securitized as GS Mortgage Securities Corp II, Series 2006-GG8 and while the property was never noticed for trustee sale, the note had been assigned to LNR Partners as special servicer. For the moment, the note is under the direction of Wells Fargo as Master Servicer and has counted Wells Fargo, Bank of America and—currently—US Bank among its trustees. The outstanding principle balance was not recorded in the assumption agreement between US Bank, Rassier and Whitestone. Whitestone’s Chief Operating Officer, John Dee, was signatory for the acquisition.

By:

Paul Dionne

Director of Analytics

Vizzda.com

LNR Partners Sells First Arrowhead Commerce Center to International Co-venture

Arrowhead Commerce Center

VIZZDA—June 2^nd, 2013 – A group formed by Daryl R Burton of Phoenix, Rod Saunders of Mesquite, Texas and Bernie Van Maren of British Columbia, Canada have acquired the First Arrowhead Commerce Center in Peoria for $15.8m or $73.83 per square foot. The 203,000 ft² complex is located south of the southwest corner of Loop 101 and Bell Road in the West Valley and is comprised of four 1-story buildings with six truck wells and seven grade level roll-up doors. The facility sits on 17.38 acres and is zoned PAD; it was completed in 2001.

The seller was LNR Partners as special servicer for the registered holders of Greenwich Capital Commercial Funding Corp. Commercial Mortgage Trust, Series 2005-GG5, with US Bank as trustee. Lasalle bank had previously securitized the debt and assigned it to US Bank on November 8^th, 2011 and US Bank placed the $19.6m portion of the $317.5m cross-collateralized debt secured by the Arrowhead Commerce Center—originally underwritten by Archon Financial, a Goldman Sachs subsidiary—into Special Servicing on January 10^th of 2012. The property was subsequently noticed for trustee sale on March 9^th, 2012 and reverted to US Bank as beneficiary on June 22^nd, 2012 with a $16.1m credit bid.

The prior owners acquired the buildings in four consecutively recording deeds on April 20^th, 2004 with a total sales price of $25,396,051 or $125.10 per square foot with $8,394,283 down and $222m new cross-collateralized debt accruing to the benefit of the Mortgage Electronic Registration System with Bank of America as Trustee. An additional $317.5m in new cross-collateralized debt was issued by Archon Financial on November 10th, 2005 and assigned to Lasalle Bank on August 26^th, 2009. The current buyers secured an additional $13.5m with US Banks to finance the acquisition. The $15.1m sales price represents a decline of 40.5% from its pre-distress acquisition price.

By:

Paul Dionne

Director of Analytics

Vizzda.com

94 Hundred Shea Sells For $16,327,500

Vizzda – May 3, 2013 – Talia Jevon Properties of Vancouver, BC, has acquired 94 Hundred Shea, an Office & Retail mixed-use development in Scottsdale, from LNR Partners of Miami, Fl, for $16,327,500 or $220.40 per ft².  

94 Hundred Shea is a 74,079 ft² office and retail complex located east of the southeast corner of Loop 101 and Shea at 9325, 9343, 9375, and 9397 East Shea Blvd in Scottsdale. It is comprised of a 38,840 ft² 2-story office component and three multi-tenant retail strip buildings built in 2007 on 10.62 acres zoned C-3. The property has ±440 parking spaces or 5.9 spaces per 1,000 ft².   

This property was previously acquired by John Rosso & Steven Goodhue of the now-defunct Westar Development on May 31 2002 as ±18.2 acres of vacant land for $8,287,726 or $10.5 per ft² with $5,887,726 down; loaned $2.4m debt with Stearns Bank. Westar sold off a portion of the land and developed the remainder into 94 Hundred Shea. On May 18, 2007 Westar encumbered the property with a $21.0m loan with Canadian Imperial Bank of Commerce. 

This debt was securitized as commercial mortgage backed securities (CMBS)  by JPMorgan Chase Bank in 2007. The underwriter’s appraisal of July 1, 2007 described the property as 72,621 ft² and 78.7% occupied with an appraised value of $31.0m. That loan was described in the SEC package as as a 6.02937% net rate maturing June 1, 2017. 

On October 6, 2010 the property was noticed for trustee sale on $21m orig debt in the care of LNR Partners as special servicer, cancelled December 10, 2010.  The property was re-noticed for trustee sale on February 1, 2012 reverting through trustee sale to LNR Partners on May 17, 2012 for $23.4m credit bid amount.

For data on this and thousands of other deals visit www.vizzda.com and  request a product demonstration. 

By:
Edward Moore
Director of Research
www.vizzda.com

Sky Harbor Towers Reverts to Beneficiary with a $10.4m Credit Bid

VIZZDA--January 25th, 2013 -- The Sky Harbor Towers--formerly known as Hohokam Towers at 4605, 4615 & 4625 E Elwood St in Phoenix--has transferred ownership as of Friday, January 25, 2013. The University of Phoenix is the current tenant at these offices. The office complex totals 273,623 square feet and is comprised of three buildings built 1998-99 on 13.76 acres zoned A-1 & C-2:

• a seven-story office of 116,257 square feet built in 1998
• a four-story  office of 86,292 square feet built in 1998
• a three-story office of 71,074 square feet built in 1999 

The offices were previously acquired December 22, 2005 for $50.2M or $183.46 per square foot with $10.2M down and $40.0M debt with Wachovia bank, originating with MMA Realty Capital, in two notes: $35.0M and $5.0M. The $35.0M note has a rate of 5.64% and a ten year term – maturing January 11, 2016. The debt was assigned to Wells Fargo on August 29, 2006 and securitized as a commercial mortgage-backed security. 

The debt was assigned to special servicer LNR Partners May 18, 2012. LNR noticed the property for trustee sale on October 11, 2012 for $40.0M original debt. The property reverted to an LNR owned entity at the January 24 trustee sale for a credit bid of $10.4M or $38 per square foot with this property transfer recording on Friday, January 25.

By:

Edward Moore

Director of Research

www.vizzda.com

Alliance Residential Acquires The Canyon Apartments for $50m

VIZZDA—December 27^th, 2012 — As referenced in our December Market Overview, the largest multifamily transaction in the month of December was David Snyder of Continental Realty Advisors’ (CRA) sale of The Canyon Apartments to Alliance Residential for $50m or $79,491 per door. Russ Kindorf was signatory for Alliance Residential, which paid $17.5m in cash and secured $32.5m in financing with Keybank.

The 629-unit master-metered complex is divided into two communities—Montelena and Bacala—with thirty-six 2-story buildings totaling 460,525 ft². It was constructed in 2004 on 15.61 acres, zoned R-4A. The table below contains information on the unit mix of the property:

Number of Units	Bedroom/Bathroom	Base Rent	Square Feet
184	0/1	$679 – $749	475 – 500
104	1/1	$779 – $899	484 – 781
247	2/1-2	$899 – $1,109	695 – 1,000
58	3/2	$1,049 – $1,179	984 – 1,060
36	4/2	$1,269	1,166

CRA acquired the property on July 8^th, 2010 from LNR Partners as special servicer for a $63m CMBS note held in trust by Wells Fargo. CRA paid $45.5m or $72,337 per door—a 16.6% premium on the $39m credit bid entered by LNR—with $2m down and two additional notes:

• $17m issued November 1^st, 2010 by Northmarq and assigned to Freddie Mac at origination and maturing on November 1^st, 2015
• $28.5m issued August 31^st, 2012 by Keybank maturing August 31^st, 2014

The $50m price tag represents a 3.9% annualized rate of return for CRA, net of income from continuing operations.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Robb and Stuckey Showroom Acquired by Lender for $11m+

VIZZDA—November 28^th, 2012 — Basil Christopoulus of C and H Development has sold the Robb and Stucky Furniture Showroom located at the Northwest corner of Scottsdale Road and Hayden-Greenway Loop has been sold for $11,274,112 or $101.38 per ft². The buyer was Daniel Roark of Ladlow’s Fine Furniture who had previously lent $10m to C and H Development secured by the property and released with sale.

The showroom is an 111,202 ft² freestanding building, built in 1997 on 6.4 acres. C and H Development acquired the property from DMB Associates on June 11^th, 1999 for $14.675m with $3.6m down and $10,856,507 new debt, seller carry. The property’s sole tenant, Robb and Stucky Furniture, filed for Chapter 11 bankruptcy protection on February 18^th, 2011.

John Hancock Real Estate Finance issued $10.35m in new debt on the property September 20^th, 2009, allowing for the release of the seller carry debt. This note was assigned to Morgan Stanley Dean Witter and securitized on April 18^th, 2000 and further assigned to Lasalle Bank on October 2^nd, 2000.

Following Lasalle’s merger with Bank of America, the note was placed in the care of the special servicer, LNR Partners, on February 9^th, 2010. Following a pair of notices of trustees sale in 2010 and 2011, C and H Development secured $10m in financing with Ladlow’s Fine Furniture on January 9^th, 2012, releasing the Bank of America CMBS debt.

Vizzda is a Phoenix-based provider of commercial real estate information.  Vizzda's data is extraordinarily detailed and delivered to clients within 24 hours of transaction.  To learn more about Vizzda, contact Kris Thompson at 480-924-2000 or kthompson@vizzda.com.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Bell 28 Office Park Sold Out of CMBS REO for $6.725m

VIZZDA—October 31^st, 2012—Neil McKenna, Vice President of CWCapital Asset Management as special servicer for a Wells Fargo Bank-administered commercial mortgage backed security, has completed the sale of the Bell 28 Office Park for $6.725m or $61.73 per ft². John Solberg and Dan Keefe of Onward Investors paid cash for the 109,820 ft² class B office complex.

The two building complex was previously acquired by Ashton Capital Corp on February 22^nd, 2006 for $20.13m or $183.30 per ft². Ashton paid $4.445 in cash and secured an additional $15.675m in financing with PNC Bank. The note was securitized on November 17^th, 2006 as the J.P. Morgan Chase Commercial Mortgage Securities Corporation Commercial Mortgage Pass-Through Certificates Series 2006-LDP6 with Wells Fargo Bank as trustee and LNR Partners as general servicer.

Following default by Ashton Capital, LNR Partners noticed the properties for trustee’s auction on June 21^st, 2010, naming Craig K. Williams of Snell & Wilmer as trustee and CWCapital Asset Management as special servicer. The trustee’s auction was conducted on September 30^th, 2010 and the properties reverted to JPMCC 2006-LPD6 Black Canyon Office, LLC—a Wells Fargo reversion entity—with a $5.46m credit bid, a 65% write-down to the original principal amount.

Comprised of two 2-story buildings of 62,098 ft² and 47,722 ft², the Bell 28 Office Park legally conveys as Lots 2 and 3 of The Deer Valley Park and Ride. It was built in 1999 on 9.78 acres zoned IND. The complex has approximately 585 surface parking spaces for a parking ratio of 5.33 per 1000 ft².

Paul Dionne

Director of Analytics

Vizzda.com

Reliance Management buys the Paradise Valley Corporate Center for $26,985,000

Vizzda  –  October 18, 2012 – The Paradise Valley Corporate Center sold on Tuesday October 16, 2012 for $26,985,000 or $132.17/SF. This sale is coming out of the distress pipeline.  The sellers are the special servicers LNR Partners of Miami Beach and the buyers are Reliance Management of Phoenix.

The property is a 198,472 SF four-story class A multi-tenant office building built in 2002 on 6.26 AC zoned PC. Each floor is approximately 50K SF of rentable office space. The office has steel frame construction with concrete floors and stone accents. Two elevators service the building while a key-card access system secures the premesis. There is an adjoining six-story parking structure with 898 covered parking spaces and an additional 79 uncovered spaces for a parking ratio of 4.8 per 1,000 SF.  See more detail here.

The building was previously acquired on December 20 of 2006 in a 1031 exchange for $52.5M. The prior owners borrowed $37.5M against the building on May 7 2007 with La Salle Bank in a note which was to mature June 1, 2017. This debt was assigned to and securitized by Wells Fargo Bank on October 3, 2008. This loan was assigned to LNR Partners for special servicing on May 12, 2011. LNR Partners issued a notice of trustee sale on May 17, 2011 on $37.5M original debt. The property reverted to LNR Partners on September 1, 2011 through trustee sale for a credit bid of $17.75M. 

Contacts for this deal are Daryl Burton of Reliance Management and Rodolfo S Lauredo vice president at LNR Partners. 

Edward Moore
Director of Research
Vizzda
www.vizzda.com

CBIZ Plaza Reverts to Beneficiary at Trustee’s Auction with $20.025m Credit Bid

VIZZDA—October 11^th, 2012 — WBCMT 2006-C27 Office 3101, LLC, and entity formed by US Bank and in care of LNR Partners has taken possession of CBIZ Plaza following a trustee’s auction conducted by Craig K. Williams of Snell and Wilmer. The opening bid of $18m was increased by multiple bidders by more than $2m to arrive at a credit bid of $20.025m or $70.32 per ft². This amount represents a 43.75% write down on the outstanding debt of $35.6m.

CBIZ Plaza is a two building office complex on 3.2 acres at the Northwest corner of Central Avenue and Thomas Road comprised of a 16-story building totaling 266,166 ft² built in 1985 and a two story building totaling 18,604 ft² built in 1980. The complex features a 6-level above grade parking structure with 664 parking spaces and 42 surface parking spaces for a parking ratio of 2.5 spaces per 1000 ft². National Bank of Arizona and a number of major law firms are among the tenants currently occupying the building.

Stephen G. Hearn of Hearn Company previously acquired the property on June 28^th, 2006 for $47.5m or $166.80 per ft² with at least $2m down and $35.6m new debt with Wachovia Bank. On May 3^rd, 2007 that note was securitized and assigned to Wells Fargo. It was subsequently assigned to Bank of America on October 8^th, 2009 and US Bank, the current beneficiary, on February 10^th, 2012. US Bank placed the note in the care of LNR Partners on February 21^st, 2012. Following default by Hearn Company, the property was noticed for trustee sale on June 4^th, 2012. 

VIZZDA provides timely, accurate and actionable data on commercial property sales and distress in Phoenix. Our team of researchers aggregate and verify property-type-specific information within 24-hours of recordation and present that information on an intuitive, map-based interface. For more information on our subscription service and how we can help you meet your CRE goals, contact VIZZDA today!

Archstone Purchases 7.8 Acres in Tempe, Plans 234-Unit Complex

VIZZDA--August 24th, 2012 -- A parcel of land totaling 7.8 acres at the Northwest corner of Scottsdale and Curry Roads was purchased by Archstone for $8,500,000 or $25.02 per square foot. 

The land is being sold by Bruce Shapiro of Arizona Partners and Martin Landis of Landwin Commercial Real Estate who foreclosed on the property on July 26th, 2011 with a $6,250,000 credit bid after acquiring the note from LNR Partners as special servicer for Bank of America CMBS on July 14th, 2011. 

New zoning was approved March 8th, 2012 for a 234 unit apartment complex or 396 bedrooms, consisting of ten two-story buildings, seven three-story buildings, and one four-story building. The primary access to the site will be west of Scottsdale Road on Curry Road. The site will have a lot coverage of 36% and 30 dwelling units per acre.

The site was previously zoned General Industrial and was occupied by a 79,705 SF neighborhood shopping center, which was mostly vacant prior to its demolition in the summer of 2012.

By:
Dan Alpers
Director of Planning and Municipal Solutions
dalpers@vizzda.com

94 Hundred Shea Reverts to CMBS Beneficiary

VIZZDA--May 18, 2012 -- The 94 Hundred Shea, a 73,950 sf mixed use office park and retail development on 10.62 AC, reverted to JP Morgan Chase CMBS care of Special Servicer LNR Partners for $23.4M credit bid 5/17/12. This reversion continues to illustrate to nature of distress in high end edge city mixed use office park sub market. 

94 Hundred Shea is located to the east of Loop 101 and Shea Boulevard in an affluent area of Scottsdale, Arizona. Land for the development, approximately 18.5 AC, was acquired 5/31/02 for $8,287,726. The one and two story project, comprised of four buildings was completed in 2007. On 5/18/07, $21M debt originated with Canadian Imperial Bank of Commerce. 

The debt was noticed by JP Morgan Chase CMBS, care of LNR partners 2/1/12. The trustors and developers of 94 Hundred, John Russo and Steve Goodhue are also owners of  Renegade Canteen, which is a tenant in the development. Other tenants include: Ling and Louie’s Asian Restaurant, Golden Spoon Yogurt, Element’s Massage, Scottsdale Hand and Foot Spa, Pretty Papers, V’s Barber Shop, and Vine Urban Italian Restaurant. 

Vizzda is a commercial real estate intelligence provider located in Phoenix, Arizona. Vizzda provides verified and actionable research for sales, notices, and trustee sales. to learn more, please visit www.vizzda.com

By:

Miller Hamrick
Research Analyst
(205) 541-7451
mhamrick@vizzda.com