The Vizzda Weekly - Phoenix - March 20th, 2017

 

THE VIZZDA WEEKLY

March 20th, 2017

 

 

Last week in Phoenix, Vizzda tracked $199,554,762 in commercial real estate transactions

including 58 sales and 18 new projects. Below are Vizzda's top reports of the week. 

 

 

 

 

PLANNING & ZONING 

 

 

Hotel Addition Proposed for CopperWynd Resort & Club in Fountain Hills     The Fountain Hills Town Council introduced a Development Agreement on March 16th which includes proposed redeveleopment with a 300-room hotel, conference facility, restaurant, and other uses.   (1 of 18 planning & zoning events last week)   Vizzda Subscribers - Click Here to View Full Report

 

LAND

 

 

Dollar Self Storage Buys Land Proposed for New Peoria Facility   For $1.9 million, Dollar Self Storage purchased 4.5 acres near the northwest corner of Lake Pleasant Parkway and Pinnacle Peak Road. The site is proposed for a 901-unit storage facility.                   (1 of 15 land sales last week)   Vizzda Subscribers - Click Here to View Full Report

 

OFFICE

 

 

±10,000 Square Foot Scottsdale Medical Office Purchased by Cave Creek Investor      The medical offices at 2255 N Scottsdale Road sold on March 10th for $3.9 million. The property was built 1988 at the southeast corner of Scottsdale Road and Oak Street.              (1 of 7 office sales last week)   Vizzda Subscribers - Click Here to View Full Report

 

MULTIFAMILY

 

 

Terrace Park Apartments in Phoenix Sell for $14,250,000   Canada-based investors Western Wealth Capital purchased the Terrace Park Apartments Thursday for $14.25 million, funded by a Freddie Mac loan of $10.7 million.   (1 of 13 multifamily sales last week)   Vizzda Subscribers - Click Here to View Full Report

 

INDUSTRIAL

 

 

21,938 Square Feet of Industrial Flex Sells for over $2 Million   An investor from Wisconsin purchased Lot 7 of University Industrial Park in Tempe for just over $2 million. The property totals over 20,000 square feet and was built in 1983.                     (1 of 11 industrial sales last week)    Vizzda Subscribers - Click Here to View Full Report

 

RETAIL

 

 

Local Investor Pays over $4 Million for New Raising Cane's Restaurant     A Paradise Valley investor purchased the new Raising Cane's near Bell Road and 12th St from developer Evergreen Development Company for $4,105,000.               (1 of 13 retail sales last week)   Vizzda Subscribers - Click Here to View Full Report

Royal Palms Resort Sells to Hyatt Hotels for Over $88 Million

Area Map

Hyatt Hotels Corporation purchased the 119-unit Royal Palms Resort and Spa yesterday for $88.25 million from Los Angeles-based Lowe Enterprises. The total salesprice corresponds to nearly $742,000 per unit.

The Royal Palms Resort was built in 1996 on nine acres near the southeast corner of Arcadia Drive and Camelback Road and includes a pool, restaurants, fitness center, and spa.

Vizzda subscribers: click here for the full report.

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FireSky Resort & Spa Sells for over $62 Million

Area Map

The 204-room FireSky Resort & Spa at the southeast corner of Scottsdale and Chaparral Roads sold Friday for $62.5 million to Grossman Company Properties. The sale was funded by $55 million new debt with Prime Finance Partners. KHP Capital Partners were the sellers in this transaction.

FireSky Resort & Spa consists of six two-story buildings totaling over 140,000 square feet built in 1968. It features 2 outdoor pools, restaurant, bar, and health-club.

Vizzda subscribers: click here for the full report.

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North Scottsdale Resort Sold for $52m

By: Paul Dionne | Vizzda.com

The Zona Hotel and Suites in Scottsdale was sold yesterday for $52m or $120,650 per key in an all cash deal that included $7.28m in furniture, fixtures and equipment. The buyer was Kissimmee, Florida-based hotel operator Orange Lake Resorts, which is strategically allied with International Hotel Group—parent company for Holiday Inn. The seller was Vancouver, BC-based hotel investor, Sunstone Realty Advisors, who acquired the property three and a half years ago for $32m from lenders.

The Zona Hotel and Suites

The 431-key resort sits on 11.91 acres west of the southwest corner of Princess Boulevard and Hayden Road in Scottsdale. The property totals 142,174 ft² in seventeen 3-story buildings and features four resort-style pools. The resort was built in 1987 and underwent major renovations in 2007 and 2011. Rooms range in size from 275 ft² guest rooms to 1,200 ft² four bedroom suites with an average two-bedroom room size of 600 ft².

The Zona Hotel was acquired from its original developer by a joint venture between Whitehall Street Global—an affiliate of Goldman Sachs—and Trinity Hotel Investors for $77m in late 2005. At that time there were 483 rooms and the property was slated for renovation. To that end, Whitehall and Trinity secured $45m in new debt with Lehman Brothers in early 2006 and an additional $95m with Capmark Bank in mid-2007. By June of 2009, the property had been noticed for trustee sale on the Capmark note and the property reverted to Capmark deed-in-lieu in October of that year.

As mentioned above, Sunstone acquired the property for $34m with $13.6m down and $22.4m new debt with Capmark, comprised of a $20.4m “A” note and a $2m “B” note with sale. The $52m sales price represents an unlevered return of 52.9% or 15.5% annualized, a levered return of 282% or 80.6% annualized and a cash-on-cash return or 117.6% or 33.6% annualized—ignoring operational proceeds and costs.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

Omni Hotels and Resorts Acquires the Montelucia from KSL Capital Partners

VIZZDA—January 8^th, 2013 — The Montelucia Resort in Paradise Valley has new ownership following the sale of the 293-key hotel property for $138.75m or nearly half a million per key. The buyer—Omni Hotels and Resorts of Dallas, TX—paid cash for the property and has already re-branded it as the Omni Scottsdale Resort & Spa at Montelucia in promotional materials and on its website.

The seller—private equity firm KSL Capital Partners—acquired the Montelucia in May of 2011 from the European bank Eurohypo AG for $105,052,220. While no debt was recorded at the time of sale, KSL secured $65m in new debt with Wells Fargo later that year and eventually increased the principal balance to $100m. Prior to that sale, Eurohypo took possession of the resort following foreclosure on an $180m note with the prior owners of the resort in January of 2011.

The resorts 293 rooms are comprised of 253 guestrooms, 38 suites and 2 presidential suites. The property features three pools as well as the Joya Spa. This is the sixth luxury hospitality property acquired by Omni from KSL in as many months, following the July 2013 acquisition of five resorts in Texas, California, North Carolina and Virginia totaling 2,362 guestrooms. The $138.75m sales price represents a 12.2% annualized return, though refinancing likely increased returns to KSL substantially.

By:

Paul Dionne

Director of Analytics

Vizzda.com