Kimco Realty Purchases Christown Spectrum Mall for $115 Million

Area Map

The 850,000- square foot Christown Spectrum Mall sold Monday to New York-based Kimco Realty. A partnership between Coventry Real Estate Advisors and Diversified Real Estate sold the property for over twice its original purchase price. Buyer assumed sellers' existing loan of $66.5 million with US Bank, securitized (CMBS) with LNR Partners as special servicer.

Christown Spectrum Mall was originally built in 1961 on 74 acres at the southeast corner of 19th Avenue and Bethany Home Road, within walking distance of the Montebello light rail stop. It includes Costco and Walmart anchors, three fast food pads, and freestanding public library, among various other tenants. Buyers report 94% occupancy at time of sale. 180,000 SF "Super Target" anchor was not included in this sale.

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Anthem Chase Bank Branch sells for Over $700 Per Square Foot

Anthem Crossing Chase Branch

Hadden Schifman | Vizzda 

Florida-based Real Estate Investment Trust, National Retail Properties ($NNN), has sold a single tenant pad leased to Chase Bank for $3,534,000 or $785 per square foot. The buyers were a group of investors out of Chicago who financed the deal with $1,464,140 in new debt with Lakeside Bank. Located within the North Phoenix master-plan community Anthem at 39516 N Daisy Mountain Drive- the 4,500 SF bank branch was constructed in 2007 as an out-parcel of the “Anthem Crossing” neighborhood shopping center.

Drive-Thru Facilities

Kimco Realty and Barclay group originally acquired a larger 13+ acre site in 2004 for the future Fry’s anchored 130,870 SF shopping center. A lease was entered July 1^st, 2005, commencing July 26^th, 2005 for a 20 year term with JPMorgan Chase as tenant--expiring 2027--with four 5-year renewals. This branch was later sold on January 3^rd, 2012 to an affiliate of USAA Real Estate Company for $2,816,000 or $625.78 per square foot. USAA then sold property to NNN REIT on February 26^th, 2014 for $3,181,493 or $707 per square foot. The three prior sales dates, prices and relative appreciation are listed below: 

Sale Date	Sale Price	Appreciation
January 3rd, 2012	$2,816,000	NA
February 26th, 2014	$3,181,493	13%
July 11th, 2014	$3,534,000	11%

Net-leased deals such as this have proven to be an attractive investment given their credit rated tenants and the added security of real property. Jamie Medress of Marcus Millichap’s Net Lease Advisory Group adds that cap rates—a ratio of the income derived from a property divided by the purchase price—are at unprecedented lows. Few new single tenant buildings have been constructed in the last several years and the demand for low risk and high credit deals draws investors from around the Country. Mr. Medress can be reached here.

To Contact the Author:

Hadden Schifman – hadden@vizzda.com

With Land Swap, Rivulon Development is Underway

By: Paul Dionne | Vizzda

Master Plan for Rivulon by Butler Design Group

With the transfer of 5.345 acres from Nationwide Realty Investors--as master developer--to LA Fitness in exchange for 17.06 acres at the northwest corner of the same development, Phase I of the 252-acre Rivulon mixed-use development in Gilbert is officially underway. 

The transfer was strictly a barter or trade transaction, with no consideration or boot changing hands. The site transferred to LA Fitness is planned for a 45k SF gym, while renderings of Phase I call for a total of 246k SF in new office development in four buildings. Following the transfer, Brent Berge of Berge Auto Group acquired the parcel from LA Fitness for $3.7m--or $15.03 per square foot--in a sale-leaseback transaction with a 15-year firm term and three 5-year extensions.

When complete, Rivulon will total 3.1m SF of new office space and 500k SF of integrated restaurant and retail use on a 252-acre parcel at the northeast corner of the Loop 202 San Tan Freeway and Gilbert Road. According to Nationwide, construction is set to begin on Phase I in the Fall of 2014. Phase I is comprised of roughly 30 acres with 13.5 acres dedicated to retail development, including an inline space and two pads in addition to the LA Fitness and 16.5 acres dedicated to developing the 246k SF office mentioned above. The remaining phases call for 116.3 acres of office use and 57.5 acres of retail use, with a partially assembled fifty acre parcel to the southeast that has yet to be rezoned.

Vizzda tracked the sale history of the assemblage that will become Rivulon going back to 2006, when Kimco Realty and DeRito Partners acquired a portion of the site from Continental Homes for $13,172,585. DeRito made three additional acquisitions that year with Donald Oliphant as a partner totaling $15,275,930 and one additional acquisition with Kimco in 2007 for $8,094,010, bringing their total to $21,266,595. Nationwide began acquiring the assemblage from Kimco, DeRito and Oliphant partnerships, as well as historical land holders in several transactions totaling at least $88,571,022.

LA Fitness’ portion was tracked back to a 1996 acquisition by Arnold Schlessinger and Ron McRea in which they acquired 20 acres at the southeast hard corner of Gilbert & Pecos Roads for $700k. Exxon Mobile acquired the site in 2000 for $3,267,318 and sold back everything except 2.95 acres at the hard corner for $3.25m in 2004. Less than two years later, Schlessinger and McRea sold the remaining parcel for $10m to Walt Brown and Tim Dollanger of Diversified partners, who--in turn--sold to LA Fitness for $12,083,799 in June of 2007.

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