Bell 28 Office Park Sold Out of CMBS REO for $6.725m

VIZZDA—October 31^st, 2012—Neil McKenna, Vice President of CWCapital Asset Management as special servicer for a Wells Fargo Bank-administered commercial mortgage backed security, has completed the sale of the Bell 28 Office Park for $6.725m or $61.73 per ft². John Solberg and Dan Keefe of Onward Investors paid cash for the 109,820 ft² class B office complex.

The two building complex was previously acquired by Ashton Capital Corp on February 22^nd, 2006 for $20.13m or $183.30 per ft². Ashton paid $4.445 in cash and secured an additional $15.675m in financing with PNC Bank. The note was securitized on November 17^th, 2006 as the J.P. Morgan Chase Commercial Mortgage Securities Corporation Commercial Mortgage Pass-Through Certificates Series 2006-LDP6 with Wells Fargo Bank as trustee and LNR Partners as general servicer.

Following default by Ashton Capital, LNR Partners noticed the properties for trustee’s auction on June 21^st, 2010, naming Craig K. Williams of Snell & Wilmer as trustee and CWCapital Asset Management as special servicer. The trustee’s auction was conducted on September 30^th, 2010 and the properties reverted to JPMCC 2006-LPD6 Black Canyon Office, LLC—a Wells Fargo reversion entity—with a $5.46m credit bid, a 65% write-down to the original principal amount.

Comprised of two 2-story buildings of 62,098 ft² and 47,722 ft², the Bell 28 Office Park legally conveys as Lots 2 and 3 of The Deer Valley Park and Ride. It was built in 1999 on 9.78 acres zoned IND. The complex has approximately 585 surface parking spaces for a parking ratio of 5.33 per 1000 ft².

Paul Dionne

Director of Analytics

Vizzda.com

Humberto Lopez Buys Broadstone at Queen Creek for $28m

VIZZDA—September 7^th, 2012 — Humberto Lopez, a Tucson-based multifamily investor and President of HSL Properties, has acquired the 264-unit Broadstone at Queen Creek for $28m or ~$106k per door. The property—located North of the Northeast corner of Ellsworth Loop and Ocotillo Road—consists of forty-eight 3-story buildings totaling 271,553 square feet and was built 2008 on 12.64 acres. It is the multifamily portion of the 68-acre, 318k square foot Cornerstone at Queen Creek mixed-use power center. The individually metered unit mix is as follows:

Units	Beds	Baths	SF	Rent Range
46	1	1	887	$790 - $1180
46	1	1	904	$815 - $1335
8	1	1	838	$860 - $1325
66	2	2	1132	$795 - $1295
66	2	2	1187	$825 - $1275
32	3	2	1378	$995 - $1530

The selling party, Robert Hutt of Alliance Residential, previously acquired the land on which the complex sits from Robert Mayhall of WDP on July 23^rd, 2007 for $5,783,809 with $34.423m in new financing from JP Morgan Chase. Mr. Lopez paid $9m cash down payment and secured $19m in new debt with National Bank of Arizona.

Metrocenter Business Park--Purchased for $17.6M in 2007--Sells in 2012 for $3.15M

VIZZDA--September 3rd, 2012 -- Houston-based Boxer Property acquired the Metrocenter Business Park for $3.15M of $24.58 per square foot. Boxer financed the purchase with an existing $464M credit line with Beal Bank, originated December 21st, 2009 and maturing June 30th, 2019. The bank-owned building was sold by C-III Asset Management as special servicer for JPMorgan Chase CMBS following an eight months as a bank-owned asset.  

Located at 10000 N. 31^st Ave in Phoenix near the Metrocenter Mall--West of the Southwest corner of Peoria Ave & I-17--Metrocenter Business Park totals 128,177 SF. The four building office complex consists of two 1-story, one 3-story and one 4-story buildings; all built in 1982 on 8.85 acres zoned C-2. 

Broker flyers indicate the property was listed on Auction.com at $1.25M starting bid and reportedly 50% leased. SF calculations vary from 128,177 SF per broker, 131,850 SF per Assessor, and 132,212 SF per special servicer.   

The property was previously acquired by a tenancy-in- common group February 1st, 2007 for $17.6M or $137.31 per SF; with $3,989,644 down and $13.768M debt with PNC Bank securitized and assigned to JPMorgan Chase CMBS. C-III Asset management in its capacity as special servicer noticed the property for trustee sale September 21st, 2011 and took back the property at auction January 10th, 2012 with a $9.05M credit bid.

Waterton Residential Acquires Andante Apartments

VIZZDA--July 31st, 2012 -- Chicago-based Waterton Residential has purchased Andante Apartments for $61.3m or $106,432 per door. Located at 15801 S. 48th St in Phoenix or southwest of the I-10 & Chandler Blvd, the 576 Unit complex totals thirty two two & three story buildings totaling roughly 509k SF constructed in phases from 1999 to 2001 on 25.51 acres. Andante features 3 pools, gates, and 885 average unit SF. The unit mix is 408 1/1 and 168 2/2.

Waterton acquired the Andante with $1M down and $43.35m new debt with CBRE Multifamily Capital, assigned to Fannie Mae following origination. Per Waterton’s website, this marks their first Arizona purchase. The property was sold by JP Morgan Chase’s Strategic Property Fund, who previously acquired Andante August 12th, 2005 for $58.76M or $102,014 per door. HSBC Realty Credit loaned $26,032,000 of debt on the property on August 8th, 2008 which matures August 1st, 2015. SNK Development originally constructed the property.

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BY:
Hadden Schifman
Managing Director

Hadden@VIZZDA.com

94 Hundred Shea Reverts to CMBS Beneficiary

VIZZDA--May 18, 2012 -- The 94 Hundred Shea, a 73,950 sf mixed use office park and retail development on 10.62 AC, reverted to JP Morgan Chase CMBS care of Special Servicer LNR Partners for $23.4M credit bid 5/17/12. This reversion continues to illustrate to nature of distress in high end edge city mixed use office park sub market. 

94 Hundred Shea is located to the east of Loop 101 and Shea Boulevard in an affluent area of Scottsdale, Arizona. Land for the development, approximately 18.5 AC, was acquired 5/31/02 for $8,287,726. The one and two story project, comprised of four buildings was completed in 2007. On 5/18/07, $21M debt originated with Canadian Imperial Bank of Commerce. 

The debt was noticed by JP Morgan Chase CMBS, care of LNR partners 2/1/12. The trustors and developers of 94 Hundred, John Russo and Steve Goodhue are also owners of  Renegade Canteen, which is a tenant in the development. Other tenants include: Ling and Louie’s Asian Restaurant, Golden Spoon Yogurt, Element’s Massage, Scottsdale Hand and Foot Spa, Pretty Papers, V’s Barber Shop, and Vine Urban Italian Restaurant. 

Vizzda is a commercial real estate intelligence provider located in Phoenix, Arizona. Vizzda provides verified and actionable research for sales, notices, and trustee sales. to learn more, please visit www.vizzda.com

By:

Miller Hamrick
Research Analyst
(205) 541-7451
mhamrick@vizzda.com