Black Creek Group Adds to Significant Phoenix Industrial Holdings

 VIZZDA—August 8^th, 2012 – Scott Rector of the Black Creek Group has completed the purchase of the Buzz Oates-Roosevelt Center, a 1,267,110 ft² mega-warehouse fully leased by Amazon, for $90,286,281 or $71.24 per square foot. This marks the second major industrial acquisition by the Black Creek Group in the Phoenix market this year, having previously acquired the Riverside Industrial Center for $131.7m in May. The company has over 2.85m ft² under management in the Phoenix market. 

The property, located south of the southwest corner of 75^th Avenue and the I-10, is listed as the largest freestanding industrial warehouse property in Phoenix. Larry Allbough—CEO of the Buzz Oates Family of Companies—was the seller and had developed the property with a $43.5m construction deed of trust with Bank of America, modified September 1^st, 2009 to lower the principal balance to $30m. On February 23rd, 2011, the maturity date was extended to February 3rd, 2013. The principal was later increased to $52.7m and the maturity date was changed from February 3rd, 2013 to August 1st, 2012.

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BY: 

Daniel Alpers

Director of Planning & Municipal Solutions

daplers@vizzda.com

Paul Dionne

Director of Analytics

pdionne@vizzda.com

Phoenix Metro Sees $182M In Commercial Sales On May 11, 2012

VIZZDA, May 14, 2012 — The Phoenix Metropolitan Area experienced a high volume of commercial property sales on the Friday before Mother’s Day, with over $182m changing hands in six transactions.

The largest of these transactions was the sale of the Riverside Industrial Center—a mega-warehouse and distribution center of 1,205,821 and 377,180 square feet, the larger of which is currently leased by Amazon.com. Home Depot recently exercised an option to terminate their lease in the smaller of the two buildings. The sale was recorded as two transactions of $105.1m and $26.56m totaling $131.7m. The sellers, Jeffrey Kelter of KT Capital and Jonathan Tratt of Tratt Properties, previously acquired the property as unimproved land January 5, 2006 in two transactions totaling $5.9m.  The buyer is Scott Rector of the Black Creek Group of Denver.

Additionally, Scottsdale Gateway Apartments conveyed on Friday for $41m. The 611 unit complex at the northwest corner of Scottsdale and McKellips Roads was built between 1963 and 1972 in two phases of 124 and 486 units on 22.2 acres. Price per door is $67,103. The complex was previously acquired by the seller, John Bezzant of Aimco Apartments, in November of 1997 for $16.2m or $26,513 per door. The buyer is Danny Gabriel of ColRich Multifamily Investments of San Diego. The buyer put $10.875m down, incurred $6.775m new debt with Wells Fargo and assumed $16.8m CMBS debt with US Bank.

Finally, Elianto—2,382.23 net acres of undeveloped land zoned PC, or planned community—sold for $7.4m or $3,097 per acre. The parcel had been planned for three phases of residential development: Phase 1 was to total 1,745 units, Phase II was to total 1,198 units and Phase three remains unplanned. Robert Hummel of California and Sam Stern of Toronto, Canada were the buyers. The property was previously acquired as a Deed In Lieu of Foreclosure accruing to the benefit of Bank Midwest, a subsidiary of Dickenson Financial. The buyers incurred $8.4m new debt with the sale, issued by a consortium of individual investors.
By:      

Paul Dionne

Research Analyst

(202) 258-9508

pdionne@vizzda.com