Tempe Marketplace Phase II Re-capitalized and in Pre-planning

By: Paul Dionne | Vizzda.com

Phase II of Tempe Marketplace was conveyed between two entities related to Pacific Coach, Inc. and encumbered with $19,477,659 in new debt with the selling entity. Per the Tempe city planner, there are tentative plans to develop the site as an office and hospitality campus. The affidavit of property value accompanying the transfer values the property at $20,471,200 or roughly $510k per acre.

Phase II of Tempe Marketplace

On April 24th, 2014, Tempe City Council approved changes to the development agreement that covers Phases I and II of Tempe Marketplace to, among other things: 

• remove language allowing for an Improvement District
• delete the section pertaining to the existing conceptual site plan
•  provide a new section requiring construction to begin by July 2018

Tempe also indicates that preliminary landscaping and road plans have been submitted for the site. 

Jonathan Levine--son of Pacific Coach founder, Bill Levine--and Thomas LeClair are the sole members of both Tellurian Development Company, the acquiring entity, and Pacific Coach 101/202 Holdings, LLC, the selling entity and lender. They acquired the bulk of the property from the original developer of Tempe Marketplace in 2012 after foreclosing on a $4.6m note originally underwritten by Sir Mortgage Finance in 2007.

The Shea Scottsdale Shopping Center sells for $44.5m

Vizzda – February 5, 2014 –Matthew Schwab, managing Director of Karlin Real Estate—a Los Angeles-based investment firm—has completed the sale of the Shea Scottsdale Shopping Center on Tuesday to Jerry Simms, owner of Turf Paradise for $44.5m or $273 per square foot. Simms paid $28,481,055 in cash and secured $16,018,944 in new debt with Pacific Coach, Inc.

The Shea Scottsdale Shopping Center is located on 17.77 acres at the northeast corner of Scottsdale Road and Shea Boulevard in Scottsdale. The shopping center totals ±162,929 ft² in thirteen one-story buildings comprised of a 40k ft² Safeway anchor, a 27k ft² sub-anchor occupied by CVS Pharmacy, strip retail and six pads. The shopping center, as well as the adjoining Shea Scottsdale East was completed in 1995 on a 31.96-acre site.

Karlin Real Estate acquired both Shea Scottsdale Shopping Center and Shea Scottsdale East on September 29, 2011. The ±277,253 ft² shopping center was acquired for $50.32m or $181.49 per square foot from the Herberger Family, who had acquired the property as land in 1975 and had financed the development of the shopping. Karlin realized a 50% increase in per foot price—nearly eliminating their cost basis—and retains over 100k ft² or retail space at Shea Boulevard and Scottsdale Road.

 Edward Moore
Director of Research
www.vizzda.com

Taylor Morrison Picks Up ~32 Acres Near I-17 and Loop 303

VIZZDA—January 31^st, 2013 — G. Thomas Hennessey, in his capacity as Vice President of Taylor Morrison Homes, has acquired a 31.58-acre parcel of land for $3.96m or $125,395.82 per acre. The property is located at the southwest corner of North Valley Parkway and Sonoran Drive just east of the southeast corner of the I-17 and Loop 303 interchange in Phoenix.

The residential acreage consists of 1,375,676 ft² of un-graded land zoned C-2. The site is currently planned for 101 lots with the following dimensions:

• 46 lots of 50’ x 120’ for a typical lot area of 6,000 ft²
• 55 lots of 60’ x 120’ for a typical lot area of 7,200 ft²

This arrangement results in a density unit per acre ratio of 3.15, as well as a per lot price of $39,207, a per front foot price of $707 and a per square foot price of $2.88.

The seller was an entity formed by William Levine of Pacific Coach, Gary Davidson and Daniel Rye. They had previously acquired a 39.45-acre parcel on September 7^th, 2004 for $5.5m or $139,417 per acre in an all cash transaction. Pursuant to a January 12^th, 2012 purchase and sale agreement, that larger assemblage will be split with Taylor Morrison taking down 31.58 acres of residential land and the selling entity retaining a 7.7 acre commercial parcel on the northeast corner of the property. 

By:
Paul Dionne
Director of Analytics

Hadden Schifman
Managing Director  

www.vizzda.com

Harvard Investments Closes on Pacific Proving Grounds North in Mesa, $36m+

Vizzda – October 12th, 2012 — Scottsdale’s Harvard Investments, led by Mr. Craig Krumwiede acquired nearly 567 acres of vacant land for $36,596,690 or $64,544 per acre. The seller was Mr. Bill Levine, who entered a purchase agreement with Havard almost two years ago- dated December 1st, 2010. Nate Nathan brokered the deal.

Pacific Proving Grounds North is located north of the northeast corner of Pecos & Ellsworth Roads and comprises the southern half of the original 5,000 acre General Motors proving grounds. Mr. Levine previously acquired approximately 1,700 acres from General Motors corporation June 30th, 2004 for $45m; or $26,470 per acre. 

The City of Mesa approved a general plan amendment in 2008, designating the 1,700 acres as a mixed-use community. View the 2008 community plan

-->here.

Harvard’s acquisition is planned for two sites:

Signal Butte 105

70 acres single-family residential (zoned RS-6) and 35 acres small lot residential (rsl 4.5)

                 

Pacific Proving Grounds North

484 acres total (461 of which controlled by harvard), to be zoned planned community pc. from the 9/10/12 city of mesa city council report:

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