Buchanan Street Partners Makes 440K SF+ Portfolio Purchase From Carlson

VIZZDA September 30th, 2013- Mr. Tim Ballard, in his capacity as President of Newport, CA-based Buchanan Street Partners has made a portfolio purchase summing $52.6M. The properties include:

Carlson Real Estate Company- the real estate arm of Carlson—a franchisor of TGI Fridays restaurants operator of 1,300 hotels worldwide—developed most of the portfolio from ground up. California Bank & Trust loaned Buchanan $37M secured by the portfolio.  

By:

Hadden Schifman

Managing Director

Vizzda.com

5.3 Acre “Argo at Town Lake” Project Sells for $13.5m, Purchased in 2011 for $4.6m

Vizzda – May 20, 2013 –  Evergreen Development sold a 5.3 acre parcel of land immediately south of the Tempe Center for the Arts for $13.5m or $58.19 per ft² to Lennar Multifamily- a newly formed division of Lennar Corporation.  Lennar secured a $37.5m construction deed of trust with California Bank and Trust. Andrew Skipper, co-founder of Evergreen, and Erik R Higgens, Vice President of Lennar Multifamily Investors, closed the deal.

The subject property is 5.3258 acres or 231,991 ft² of commercial acreage zoned MU-4 or “Mixed Use High Density” per the final-plat approved December 21, 2012. Evergreen entitled the site for 328 mutli-family units for the “Argo at Town Lake”. See this link for the PLANNING DOCUMENTS.
  
Plans call for a single six-story structure of 604K ft². The top four floors will feature 319 apartments including 32 studio, 135 one-bedroom, 136 two-bedroom and 16 three-bedroom apartments. The remaining 9 units of multifamily are live/work spaces clustered at the south side of the building with a ground floor business space connected by private stairwell to a residence above; these work spaces total 1,909 ft² of retail/office.

The site plan includes a 738 ft² coffee shop and “truck court” area with room for four mobile food truck restaurants and an outdoor seating area which will cater to pedestrian traffic when the Tempe Center for the Arts hosts events.

The bulk of this site was originally acquired by Zacher Development on January 19, 2007 as a 5.06 acre assemblage for $17,401,289 and financed by a $20.0m loan from Mortgages Limited and a $1.39m loan from Metropolitan Land Company. The property was noticed for trustee sale on May 8, 2008 and reverted to the receiver for the now-defunct Mortgages Limited (ML Manager) at a December 4th, 2009 trustee sale with a credit bid of $3.5m.

The property was sold to Evergreen on June 13, 2011 for $4.6m or $20.86 per ft²; with $2.1m down and $2.5m debt with National Bank of Arizona. Cricket Communications signed a 5 year lease (with extensions) on January 24th, 2013 to operate a cellular tower on the site – a mobile tower is on the site and a permanent tower is under construction. 

To sign up for information on this and other commercial real estate transactions, please visit www.vizzda.com and  request a product demonstration.

Edward Moore
Director of Research

emoore@vizzda.com
www.vizzda.com

Canadian Investor Acquires Major Chandler Office Building for $15m

VIZZDA—December 31^st, 2012 — Ayaz Velji of Redstone Enterprises—an investor and developer based in British Columbia, Canada—has purchased the Opus Chandler Airport Center 2 office building from Jon Demorest of the Picerne Group for $15m or $162.01 per ft². Redstone paid cash for the property.

The 92,584 ft² 2-story office building was built by The Opus Group in 2007 as the second phase of a 180,108 ft² office development on 14 acres West of the Southwest corner of Cooper Road and the Loop 202. This building sits on a 7.22 acre parcel zoned PAD and conveys with 450 parking spaces.

The Picerne Group acquired the property from the developer on September 29^th, 2009 for $5.4m or $58.32 per ft². While the amount tendered in that transaction is unavailable, Picerne secured $7.95m new debt with California Bank & Trust. The $15m sales price represents a 79% annualized rate of return for the property.

By:

Paul Dionne

Director of Analytics

Vizzda

Oaktree Capital Management President buys Fender Headquarters for $29.85m

--> VIZZDA—December 17th, 2012 — Bruce  Karsh of Oaktree Capital Management has purchased The FNBA Building in the Perimeter Center Business Park from WDP Partners. The building is the current headquarters for Fender Musical Instruments, and was formerly the headquarters for First National Bank of Arizona. 

The two-story office building is located West of the Southwest corner of Princess Road and Loop 101 at 17600 N Perimeter Drive in Scottsdale. Documents filed with the SEC list the building at 127,690 ft², though broker marketing materials place the structure at 137,000 ft². The property was built in 1999 on 10.39 acres zoned I-1. It has an approximate parking ratio of 5.26:1000 ft². Fender signed an 134-month lease (eleven years and two months) with two 5-year options to extend for 110,875 ft² on September 9th, 2011. The rents and escalations are as follows:

Months	Annual Basic Rent per RSF
0-14	0
15-98	23.80
99-134	24.5

Fender Filed an S-1 Registration declaring their intent to issue shares to the public on March 8th, 2012 with JP Morgan Chase as lead underwriter. An amended S-1 was filed on July 10th, 2012 detailing a $200m maximum amount raised on 10,714,286 shares issued, including 3,571,429 shares from Michael Lazarus, principal of Weston Presidio. Fender withdrew it's registration on August 8th, 2012.

Oaktree acquired the property for $29.85m or $277.33 per ft²; they paid $12.35m in cash, and secured $17.5m new debt with JP Morgan Chase maturing January 1st, 2023. First National Bank of Arizona (FNBA) previously acquired the property on May 1st, 2003 as 16.64 acres of vacant land for $19.484m or $142.22 per ft² and $19.6m new debt with California Bank and Trust; Metros Credit Card Services was a sub-lessee at the time.

FNBA refinanced the property several times, including $14.5m in new debt issued April 28th, 2005 with Countrywide, maturing May 8th, 2015 and having a 5.56% interest rate. This note was securitized September 1st, 2005, and assigned to Wells Fargo Bank CMBS. The $19.6m original note was released May 11th, 2005. FNBA merged with First National Bank of Nevada (FNBN) June 30th, 2008 prior to the closure of FNBN by the FDIC on July 28th, 2008. 

A court order appointing a receiver to the property was approved and it was concurrently sold to WDP Partners on November 22nd, 2010 for $10m or $72.99 per ft. While the amount down was not listed on the affidavit, WDP Partners secured $5,460,000 new debt at 18% interest with National Bank of Arizona. The $29.85m sales price represents a 99.25% annualized rate of return for WDP Partners.

By:

Daniel Alpers

Director of Planning and Municipal Solutions

Paul Dionne
Director of Analytics
Vizzda.com

Pacific West Land Acquires Vistancia Neighborhood Shopping Center

--> VIZZDA--October 29th, 2012 -- Bruce Galloway, CEO of Pacific West Land, has acquired two adjacent shopping centers in the Vistancia neighborhood from their original developer for $25.75m or $195.53 per ft². Pacific West Land paid $12.875m cash for the property and secured an additional $12.875m in debt with Meridian Bank. 

The larger of the two centers, both in terms of rentable square feet and acreage, is legally described as Lots 1-7 inclusive and Tract A of Vistancia Retail Subdivision, Parcel D9 and totals 94,119 ft² on 10.691 gross acres, zoned PCD. It is anchored by a 57,888 ft² Safeway and features 11,760 ft² inline retail in two buildings occupied by several full service restaurants and a Great Clips barber shop as well as four retail pads totaling 24,030 ft² and occupied by a Chase Bank and a Subway restaurant. The parcel has 320 parking spaces for a parking ratio of 3.39 per 1000 ft². 

The smaller of the two centers is legally described as Lots 1 and 2 of Vistancia Marketplace and totals 37,575 ft² on 7.53 gross acres, also zoned PCD. It is anchored by a 14,820 ft² Walgreen's Pharmacy and features two inline shells totaling 22,755 ft² as well as two undeveloped parcels. The parcel has 250 parking spaces for a parking ratio of 6.65 per 1000 ft². The two complexes have a total of 570 parking spaces and an aggregate parking ratio of 4.33 per 1000 ft². 

The land on which the neighborhood shopping centers sit was acquired by a Shea Homes/Sunbelt Holdings co-venture as part of the Vistancia development in 2001. On May 25th, 2007, the two parcels were transferred to a related entity and encumbered with $25.9m in new construction debt with California Bank and Trust. 

Paul Dionne
Director of Analytics
Vizzda 

Baron Properties Buys The San Ventura Apartments

VIZZDA—July 20^th, 2012 – Danny Gabriel of Colrich was signatory to the sale of the San Ventura Apartments, a 272-unit apartment complex at 3600 W Ray Rd, Chandler which was purchased by J Jeffrey Riggs of Baron Properties, for $29,650,000 or $109k per door on July 19^th, 2012. Baron Properties put $9,260,000 down, secured a $3,278,500 Freddie Mac Multifamily Loan originating with Holliday Fenoglio & Fowler (HFF), and assumed an existing $17.18M loan (5.08% A.P.R. fixed, maturing April 1^st, 2018) originated by HFF as an FHLMC loan March 3^rd 2011 and assigned to Citibank September 16^th, 2011.   

The 2-story apartment complex consists of 34 buildings built in 1995 on 14.67 acres. The apartments’ exterior was renovated in 2006 and Colrich has been renovating the apartments’ interiors as they have turned over. The individually-metered complex features a unit mix of 104 1Br/1Ba (921 ft²), 144 2Br/2Ba (1,173 ft²) and 24 3Br/2Ba (1,442 ft²). The community is 94% occupied.

The apartments were acquired by Colrich on May 10^th, 2007 for $40.7M with $10.2M down and $30.5M debt with Capmark Finance; per affidavit of value, $2.035M of the sale price was for the furnishings.  The Capmark debt was modified September 18^th, 2008 by splitting it into two notes: note A $19.32M & note B $11.18M. Colrich then took on $19.45M debt March 23^rd, 2009 with California Bank & Trust in two notes: note A $17.225M & note B $2.225M. Colrich used the proceeds to  pay off the Capmark Note A debt on March 23^rd, 2009 and the remaining debt on April 23^rd, 2009. 

On March 1^st, 2010 Colrich transferred the ownership of the San Ventura apartments to a second Colrich-owned entity recording a sale price of $20.475M with $3.39M down and the assumption of the California Bank & Trust notes. With this assumption, however, Zions First National Bank now holds Note B ($2.225M) and must be paid off first. On March 3^rd, 2011 . Holliday Fenoglio Fowler originated a $17.18M FHLMC loan (fixed 5.07% rate, maturing April 1st, 2018) which was securitized (CMBS) and to be serviced by HFF.  This debt was assigned to Citibank September 16th, 2011 and assumed by Baron Properties in the current sale.

By:

Ed Moore

Research Analyst

emoore@vizzda.com