ColRich Multifamily Purchases Two Scottsdale Apartment Complexes for $67.5 Million

Area Map

ColRich Multifamily purchased two adjacent Scottsdale apartment complexes yesterday from NorthStar Realty Finance for a total of $67.5 million, or $108,000 per unit. Each sale was funded by an assumption of the seller's prior loans with US Bank, as well as new notes with Freddie Mac.

Visconti at Camelback totals 348 units and Indian Bend Condominiums totals 278. Both are located near the southwest corner of Hayden and Camelback Rds in southern Scottsdale and include 2 pools each. The properties are located across from the Club SAR Fitness Center and Le Cordon Bleu College of Culinary Arts.

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Two Industrial Properties Noticed on $27.8 Million in Debt

Area Map

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.

For more information on this property including complete history and buyer/seller contacts, visit us at our website or send us an email. We're happy to hear from you!



        

16th Street & Camelback Offices to be Replaced with Apartments

Vicinity Map (Subject parcel highlighted in red)

234 apartment units will replace the 66,000 square foot office complex at 5125 N 16^th Street, just north of the 16^th Street and Camelback intersection. The Arbor Court Apartments will consist of studio, one-bedroom, and two-bedroom floorplans in two four-story buildings and will include a pool and community center.

Previous Office Improvements

The Van Tuyl Group purchased the property back in April of 2013 in a bank sale from US Bank for $3.75 million. The apartments will replace the two 3-story buildings of offices which previously improved the property, which were built in 1976 and sat on a total of 4.25 gross acres of land.

For more information on this property including complete history, unit mix, and buyer/seller contacts, visit us at our website or send us an email. We're happy to hear from you!



        

Conn's Executes Sale-Leaseback at Metro Marketplace

By: Paul Dionne | Vizzda

Houston-based appliance retailer Conn's Inc. has sold its Metro Marketplace location to locally-based single-tenant investors, STORE Capital, in a deal valuing the freestanding big box space at $6.78m or $152.80 per square foot. As part of the transaction, Conn's inked a thirty year lease with STORE for the location with three 5-year options to extend and Conn's retains the remainder of the neighborhood shopping center, which they acquired from Brixmor--then an affiliate of Blackstone Group--in September of 2013 for $6.1m or $24.16 per square foot.

The 44,370 square foot freestanding building was built in 1988 on roughly 2.98 acres, zoned C-2 in an 243,786 square foot shopping center on 18.54 gross acres at the northwest corner of I-17 and Dunlap Road in Phoenix. As mentioned above, the prior sale included not only the current asset changing hands, but also another 43,469 square foot anchor space, a 19,527 square foot sub anchor, 136,375 square feet of inline, including the inline space adjacent to the subject parcel to the north, which did not convey, and two pads totaling 8,697 square feet.

The shopping center was previously acquired by Brixmor pursuant to the $6.2b acquisition of Excel Realty Trust by Centro properties in late July 2007. In mid 2011, Brixmor was acquired by private equity fund Blackstone Group for $9b, with transfer of the subject asset made by quit-claim in early July 2011. Following the quit-claim, Blackstone encumbered this property and several others under a $1b note comprised of two $450m notes with German American Capital Corporation and $100m with Barclays. Those notes were assigned to US Bank and securitized in August of 2012 with a 4.16% interest rate. As noted above, Conn's acquired the shopping center for $6.1m in an all cash sale, releasing the prior CMBS debt, and STORE acquired Conn's big box space this week in a deal that was 100% financed by Citibank.

To Contact the Author:
Paul Dionne - pdionne@vizzda.com

Partially Complete Neighborhood Shopping Center Sold for $11,172,825

By: Paul Dionne | Vizzda.com 

South Mountain Crossing Monument Sign

South Mountain Crossing—a 130,200 ft² partially-complete neighborhood shopping center at the northwest corner of Southern and 35^th Avenues in Phoenix—was acquired by Lamar Companies of Fairfield, Connecticut on Friday for $11,172,825. The seller was RN Properties South Mountain, LLC, a single-purpose entity comprised of Arte Moreno, Joe Fitzgerald, James Shough and Bill Beverage. The existing plat for South Mountain Crossing calls for an additional 92,898 ft² of retail development on the remaining 8.22 acres of undeveloped pad space.

Angelo Gordon & Co. Sell Anchor Centre to KBS Capital Advisors

By: Paul Dionne | Vizzda.com

Anchor Centre, the 337,450 ft² office plaza with ground floor retail at the southeast corner of Camelback Road and 22^nd Street, has sold for $85.1m or more than $250 per square foot. The buyer—Charles Schreiber Jr. of KBS Capital advisors—paid $39.1m in cash for the property and financed the remainder of the purchase price with $53.2m in new debt with US Bank. 

The plaza is comprised of two buildings: the 6-story west tower, totaling 200,576 ft² and the 4-story east tower, totaling 136,874 ft². They were built between 1983 and 1985 on 7.07 acres of C-2 zoning in the Camelback Corridor. Major office tenants include Humana, Northwestern Mutual, First American Title Company, First International Bank & Trust and USI Pilcher; the retail space is occupied by The Gladly and City Market Deli & Catering.

Angelo Gordon & Co.—a privately-held alternative investment advisor specializing in distressed situations in the commercial real estate space—previously acquired the property in November of 2010 for $52m or $154.10 per square foot. While that purchase was all cash, Angelo Gordon & Co placed $35m in debt secured by the property in four notes in April of 2011. The current purchase price represents a 63.6% unlevered rate of return and a 177.05% rate of return when the above mentioned refinancing is considered. 

Starwood Capital Completes Arizona Portion of $191m Portfolio Sale

VIZZDA—January 31^st, 2014 — CW Capital, in its capacity as special servicer for several CMBS vehicles in care of US Bank, has completed the sale of eleven office and retail properties in five states—including four in the Phoenix market—for $191m. Starwood Capital paid cash for the properties, which total 1.595m square feet with 1.3m square feet of office in seven properties and 295k square feet of retail in four properties.

The four properties in the greater Phoenix market are split fairly evenly between office and retail, with two of each property type conveying for a total of $33,774,980 and $33,280,070, respectively. In terms of square footage, the office properties are over twice as large on the aggregate when compared to the retail properties, leading to a blended per square foot basis for retail of $142.40 compared to $67.85 for office. The Phoenix properties are as follows:

 

·  Retail

o  East Thunderbird Square North

§  166,102 square foot power center built 2000

§  Northwest of Scottsdale and Thunderbird Roads

§  Acquired by Starwood for $25,988,563 or $156.46 PSF

§  Prior Face Value Outstanding of $50m

§  Acquired by CW Capital August 2011 with a $16m credit bid

o  Greenfield Gateway

§  67,608 square foot Neighborhood Shopping Center built 2005

§  Southwest of Greenfield Road and US 60

§  Acquired by Starwood for $7,291,507 or $167.38 PSF

§  Prior Face Value Outstanding of $15.6m

§  Acquired by CW Capital February 2010 with a $10m credit bid

·  Office

o  Plaza Squaw Peak

§  427,852 square foot office complex built 1985-1987

§  Southwest of 16^th Street and Northern Ave

§  Acquired by Starwood for $24,067,843 or $56.27 PSF

§  Prior Face Value Outstanding of $50m

§  Acquired by CW Capital August 2012 with a $19.52m credit bid

o  Arrowhead Creekside

§  69,930 square foot office complex built 2000 and 2004

§  Northeast 75^th Avenue and Bell Road

§  Acquired by Starwood for $9,698,937 or $138.68 PSF

§  Prior Face Value Outstanding of $14.5m

§  Acquired by CW Capital July 2011 with a $6.7m credit bid

The $67.055m aggregate purchase price for the four Phoenix assets represent a 48.5% discount to prior face value outstanding of $130.1m. Three of the assets—East Thunderbird Square North, Greenfield Gateway and Plaza Squaw Peak—were securitized within the same instrument, a 2007-vintage CMBS vehicle underwritten by Countrywide Financial and Merrill Lynch. As an interesting historical aside, the super-senior tranche of this CMBS vehicle was secured by an $800m bridge loan for the 2007 acquisition of Peter Cooper Village and Stuyvesant Town by a joint venture between Tishman Speyer and Blackrock for $5.4b. The 2010 default on this note is the largest commercial mortgage default in US history.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Mark-Taylor and Kitchell Unload ~80% of San Marquis Apartments for $32m+

VIZZDA—December 17^th, 2013 — A joint-venture between Mark-Taylor, Inc. and Kitchell Development Company has sold an 80.22% stake in San Marquis Apartments in Tempe to two California-based real estate investors for $32,254,858 or $143,994 per unit. The new tenants-in-common, Mark Carter of Sequoia Equity and Richard Dewey of Dewey Land Company, tendered $5,754,858 in cash for the property and secured an additional $26m in debt with Nationwide Life Insurance Company, Maturing January 5^th, 2021.

The 224-unit complex was completed in 2012 on a 10.09-acre site west of the southwest corner of Rural and Baseline Roads that Kitchell had previously planned for development as a shopping center. It is comprised of seventeen 1, 2 & 3-story buildings totaling 239,509 ft². The gated community has four garage buildings, a resort-style pool. There are five one-bedroom floor plans ranging from 645 ft² to 910 ft², eight two-bedroom floor plans ranging from 1083 ft² to 1,321 ft² and two three-bedroom floor plans of either 1,327 sf² or 1,442 ft².

Kitchell previously acquired the land on which the project sits on October 31^st, 2008 for $5m or $11.37 per unimproved square foot with $1.9m down and $3.965m in new debt with Bank of America, which was released in December of 2009. Kitchell entered the current selling entity on August 4^th, 2010 by selling its land holdings into the joint-venture for $4.5m. Following approval of the new plans by Tempe City Council, the joint-venture was able to secure $23m in new construction debt with US Bank.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Canadian Investor Snaps Up 16th Street Assemblage Planned for Luxury Apartments

VIZZDA—December 12^th, 2013 — Elliott Sud of Toronto, Canada and local multi-family developer, PB Bell Companies, have completed their acquisition of 6.18 acres of infill at the northwest corner of 16^th Street and Highland Avenue. The three commercial properties existing on the site—including the recently-closed Pugzie’s sandwich shop—are slated to be razed to make way for a 244-unit luxury apartment complex.

Scape Modern Living

The complex will be called Scape Modern Living and will comprise a single 5-story building with articulated facades, an amenity tower and resort-style pool. The complex with feature a mix of one-bedroom and two-bedroom units with nine foot ceilings. The sale price of $5,437,745 reflects per square foot cost basis of $20.25 or roughly $22,285 per planned unit. The buyers were able to secure an additional $30.65m in construction debt with US Bank to finance the transaction. The purchase comes nearly a year after M3 Companies and PB Bell began entitlement work on the site. Their plans called for 250-units in a similar lay-out to that which has been announced.

The sellers, James and Toni Pugliano, are members of the family for which Pugzie’s was named. They assembled the land on which the restaurant sits in six transactions dating to the early 1980s and culminating with the $1.25m acquisition of 4730 N 16^th Street in May of 2012. Their cash basis for the full assemblage, is roughly $2.3m, though transactions that predate affidavit requirements preclude specificity in that regard. Pugzie’s Restaurant closed in December of last year.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Crescent Communities Takes Majority Stake in Scottsdale Quarter Multi-family Site

VIZZDA--November 20th, 2013 -- An entity controlled by North Carolina-based multi-family developer Crescent Communities paid $9.25m--nearly $75 per square foot--for Phase III A of Scottsdale Quarter. The seller, Glimcher Realty Trust, will retain a minority stake in the acquiring entity. The site is planned for The Residences at Scottsdale Quarter--a 275-unit luxury apartment complex that will feature two 6-story towers with roughly 22k square feet of ground-floor retail, an elevated resort-style pool and below-grade parking. The complex will be comprised of 43 studio, 175 one-bedroom and 57 two-bedroom apartments totaling 263,049 net rentable square feet.

Glimcher previously acquired fee interest in Phase III--an 8.95-acre graded parcel along the eastern span of Scottsdale Quarter--on October 15th, 2010 in three concurrent transactions for total consideration of $25.45m or about $65 per square foot. This transaction was a buy-out of the majority tenant-in-common interest, a joint-venture between The Wolff Company and ACC Homes, and in addition to assuming the existing $12.5m senior debt with Washington Trust Bank, Glimcher placed another $3.5m in debt on the property with its former majority shareholder.

Starwood Hotels, a tenant in the office portion of Scottsdale Quarter, placed a right of first refusal with respect to hotel development on the property commencing February 9th, 2011 and expiring February 29th, 2027 with two 5-year options to extend. Following release of the junior note on November 7th, 2011, US Bank issued $15m in new debt on the property in early December 2011. The new Crescent/Glimcher venture secured $45.525m in new construction debt with Regions Bank comprised of a $43.625m multi-family development note and an $1.9m retail development note.

By:
Paul Dionne
Director of Analytics
Vizzda.com

Artis REIT buys North Scottsdale Corporate Center II for $38.6m

 Vizzda – September 12, 2013 – Artis REIT purchased the North Scottsdale Corporate Center II from Miller Global Properties for $38.6m or $253.53 per ft² with $17.37m down and $21.23m debt with US Bank. Peter W Savoie, managing principle and chief investment officer of Miller Global Properties, and Kirsty Stevens, chief administrative officer for ARTIS REIT, closed the deal.

North Scottsdale Corporate Center II, occupied by Choice Hotels, is located at 6811 E Mayo Blvd in Phoenix, just south and west of the intersection of Scottsdale Rd and Loop 101 and just west of the Shops at Chauncey Ranch. The four-story class A office was built by Opus West Development in 2007 on 8.70 acres. The office totals 152,249 ft² per Global Properties.

Opus West acquired this property as 8.70 acres of vacant land on December 19, 2006 for $4,422,323 or $11.67 per ft² from the Tom Chauncey and John F Rasor, doing busing as Westranch Land. North Scottsdale Corporate Center I, a nearly identical building occupied by Republic Services, was sold on June 27 of this year by AEW Capital Management to Oaktree Capital for $47.6m or $312.83 per ft².

Edward Moore
Director of Research

emoore@vizzda.com
www.vizzda.com

Retail Focused Developer Picks Up Bank Branch/Office Building on 5th Ave & Scottsdale in Old Town Scottsdale

VIZZDA -- 9/6/2013 -- A joint partnership between Artemio DeLaVega of DeLaVega Development, and Scott Weaver, a director at Western Refining in Texas, have acquired 13,960 square feet of bank branch & office in one 2-story building at the southeast corner of Scottsdale Rd & 5th Ave, just south of the Galleria project. The piece sold for $3.94m or $282 per square foot.

The building is located at the 4253 N Scottsdale Rd, Scottsdale. It was built 1981 on 0.40 acres zoned C-2, 6 parking spaces, and a drive thru.

The seller of the property was Nicholas McKay Sr., the CEO of Ecosentials LLC & Vitamin Squeeze. He previously acquired the property November 10th, 2005 for $4,531,875 or $324 per square feet, $100K down, and $2.5m new note with US Bank. $3.75m debt issued November 4th, 2008 with M&I Marshall Bank. $3,675M additional financing on May 24th, 2008 with Northern Trust. -- The prior lease with US Bank (as occupant) originated November 15th, 2002.

DeLaVega Development's website states that although their historic acquisition strategy has focused on ground up development, the company has more recently been seeking redevelopment and value added retail and mixed use opportunities in the southwest.

There is currently an active development review case for a parcel across the street from the subject property for a 6,009 square foot mixed-use building, planned to have ground floor restaurant and second floor residential. This property is located at 7158 E. 5th Avenue. Case Document


Daniel Alpers
Vizzda.com

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