Intravest Sells Climatec Industrial Flex to California Investor

By: Paul Dionne | Vizzda

Less than two years after acquiring the Phoenix Headquarters of building technology company Climatec, Mason Cave of Intravest Development has sold the industrial flex property to Pacific Palisades-based investor, Charles Cale. Mr. Cale--who is also an attorney and was active in international sporting events like the 1984 Los Angeles Olympics, the 1992 Portugal Olympics and the 1994 USA World Cup--paid $21.6m for the property or $208.08 per rentable square foot in the all cash sale. In addition to the built industrial flex, Mr. Cale acquired an existing option to purchase 6.65 undeveloped acres adjacent to the north. 

The 102,996 rentable square foot flex-industrial property is a composite of seven inline buildings built between 1988 and 2006 on a re-platted 9.38 acre site, zoned IND PK. There are four grade level and two dock doors with a 20’ minimum clearance height. A broker flyer reports that the property was renovated in 2009 and features a 35,000 square foot basement which is not included in the rentable square foot calculation. Including the basement--as the assessor does but permits issued in association with the remodel do not--brings the per square foot value of the transaction down to $156.42.

The industrial flex property and adjoining land were previously acquired by John Kucera of Climatec from the original developer, Hypercom, in May of 2007 for $16.25m or $157.77 per rentable square foot. Kucera placed $4.1M down and was loaned $12.15M debt with M&I Marshall & Ilsey Bank, amended and restated in 2011 to stipulate an outstanding balance of $12m plus an additional $3m in new debt secured by the subject property. The M & I note was eventually taken out in June 2012 with $6.6m in new debt with UMB Bank. 

Kucera sold subject building later that year for $19,058,823 or $185.04  per rentable square foot to Intravest and entered into a sale-leaseback agreement. Kucera retained the ten acre “lot 2” expansion parcel and granted Intravest 24 month option to purchase. Intravest placed $4,764,706 down and was loaned $14,294,117 debt with Johnson Bank. Kucera also provided $4.6M seller-carry debt to Intravest. On 4/19/2013, the property was re-platted such that “Lot 1” building parcel expanded to include a portion of the expansion parcel that featured 350 improved parking spaces. As mentioned above, Intravest assigned its option to Cale with the current conveyance.

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

Bank Sale of Proposed Mixed Use Project in Tempe

Johnson Bank has sold a 3.46 gross acre lot in Tempe that is platted for Dorsey Crossing Live/Work Townhomes, a 45-townhome mixed use project. The lot was purchased by New Leaf Communities for $750,000 or $2 per square foot, $350,000 down, and $400,000 debt with Bill Cleverly of Inca Capital. The project has previously been marketed as 1233 Off Broadway, located at 1233 E Broadway Rd, East of the southeast corner of Rural and Broadway Roads. 

The project was previously acquired as land only on April 24th, 2006 for $800,000 or 5.01 per square foot, and $1,050,000 debt with IMH Financial corp; the note was later released in 2007. In 2006, the site went through the entitlement process with the City of Tempe planning and zoning to establish a planned area development for the mixed-use project, atop its PCC-2 zoning designation. New debt of $2,761,000 with Johnson Bank was issued July 26th, 2007. Johnson Bank gave notice of trustees sale September 30th, 2010. Johnson Bank then foreclosed on the property on December 30th, 2010 for $1,263,000 credit bid amount.

According to Vizzda's analysis of city zoning documents from a March 26th, 2006 project approval with the City of Tempe, the entire project is composed of three phases on 8.55 acres. The fist two phases are already built and the subject property (phase III) is on 3.46 gross acres (2.55 net), and will total 87,425 sf of total building area in 9 different product types. The 45 three-story buildings will consist of 45 residential units (7 two bedroom, 38 three bedroom). 14 of the units will have ground floor commercial space, ranging from 321 to 571 square feet. The buildings have a maximum allowable height of 40 feet and the density is measured at 17.6 dueling units per acre.

BY

Daniel Alpers

Director of Planning & Municipal Solutions

Vizzda