The Shea Scottsdale Shopping Center sells for $44.5m

Vizzda – February 5, 2014 –Matthew Schwab, managing Director of Karlin Real Estate—a Los Angeles-based investment firm—has completed the sale of the Shea Scottsdale Shopping Center on Tuesday to Jerry Simms, owner of Turf Paradise for $44.5m or $273 per square foot. Simms paid $28,481,055 in cash and secured $16,018,944 in new debt with Pacific Coach, Inc.

The Shea Scottsdale Shopping Center is located on 17.77 acres at the northeast corner of Scottsdale Road and Shea Boulevard in Scottsdale. The shopping center totals ±162,929 ft² in thirteen one-story buildings comprised of a 40k ft² Safeway anchor, a 27k ft² sub-anchor occupied by CVS Pharmacy, strip retail and six pads. The shopping center, as well as the adjoining Shea Scottsdale East was completed in 1995 on a 31.96-acre site.

Karlin Real Estate acquired both Shea Scottsdale Shopping Center and Shea Scottsdale East on September 29, 2011. The ±277,253 ft² shopping center was acquired for $50.32m or $181.49 per square foot from the Herberger Family, who had acquired the property as land in 1975 and had financed the development of the shopping. Karlin realized a 50% increase in per foot price—nearly eliminating their cost basis—and retains over 100k ft² or retail space at Shea Boulevard and Scottsdale Road.

 Edward Moore
Director of Research
www.vizzda.com

DMB Associates, Inc. Sells Market Street at DC Ranch for $33.4m

VIZZDA—December 6^th, 2013 — Houston, Texas-based Whitestone REIT (NYSE: WSR) has completed its acquisition of Market Street—the office/retail mixed-use core of the DC Ranch master-planned community—for $33.4m or $138.61 per square foot. Whitestone paid cash for the Safeway-anchored community center located at the southeast corner of Thompson Peak Parkway and Pima Road in Scottsdale. The sale price reflects information found on the affidavit of property value that accompanied the deed, other sources report a sale price of $37.4m or $155 per square foot.

The property is assessed as 253,773 ft² comprised of 173,290 ft² of retail including a 56,400 ft² anchor space and a 9,084 ft² full-service restaurant, as well as 80,483 ft² of office space. Financing documents from 2005 indicate a total 240,948 net rentable square feet and on 241,280 gross ft² built from 2001 to 2004 on 22 acres, zoned C-O. The site also features an undeveloped pad, previously used as auxiliary parking.

Work on the project began in March of 2000 with the transfer of the Market Street parcel from DMB Associates, Inc. to a special purpose entity for nominal consideration. In November of 2005, DMB encumbered the property with a $47.5m debt with Archon Financial, an affiliate of Goldman Sachs, bearing 5.5% interest and maturing December 6^th, 2015. At the time of securitization, the property was 95.3% occupied and generating $3,611,678 in annual net operating income. The property is currently 79.3% occupied.

As previously reported by Vizzda, Whitestone REIT has acquired a number of trophy retail assets in the Valley, including the Scottsdale Mercado, Anthem Marketplace and the Village Square at Dana Park. Subscribe to Vizzda or schedule a demonstration for more information on this and any other deal in Maricopa and Pinal Counties.

By:

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 

Market Snapshot: Fletcher Heights Marketplace

VIZZDA—August 1^st, 2012 – The sale and notice of two properties within the same neighborhood shopping center in Peoria highlight the uneven pace of recovery in the retail sector in Northwest Phoenix, as well as the roll of securitization (CMBS) in both the appreciation and rapid decline of values. The subject retail center, Fletcher Heights Marketplace, was built in 2002 at the Southeast corner of 83^rd Avenue and Lake Pleasant Parkway in Peoria and features a 57,860 SF anchor space owned and occupied by Safeway. and access to several recently developed master-planned communities including the eponymous Fletcher Heights. Three of the ten originally platted lots changed hands on Thursday and Friday of last week- reflecting more than half of the available non-anchor space.

The first of these properties, Lot Eight, is a 9,291 SF pad built 2005 on 1.06 net acres zoned PAD. It was acquired May 10^th, 2004 by a syndicate formed by David Stapleton, Barry Light and Michael Feldman for $550k with $375k down and $175k new debt with Marine Bank, released May 23^rd, 2005. Prior to that release, the syndicate then further encumbered the property with a $1.75m deed of trust with Los Padres Bank which as assigned to Valley Oaks Bank before finally being released January 2^nd, 2007. This debt was replaced by a Morgan Stanley deed of trust that was issued November 2^nd, 2006, securitized sometime thereafter and assigned as a collateralized security to Wells Fargo Bank on March 21^st, 2007. Friday’s sale price of $960k reflects an annual rate of return greater than 9% as well as terminating all obligations of the selling syndicate.

The second active property within Fletcher Heights Marketplace last week included Lots Six and Seven. The non-contiguous inline spaces total 27,016 SF and were constructed with the anchor space in 2002. They sit on a combined 3.95. Fred C Smith originally acquired the property for $7.1m with $5.68m new debt with Lehman Brothers Bank on June 24^th, 2003. Lehman securitized the note and assigned it to Lasalle Bank (CMBS) on February 9^th, 2004. On October 5^th, 2005, Smith sold the property to David Christenholz et al for $7.7m; with $2,161,247 down and assumption of the LaSalle $5.68m CMBS note. On July 20^th, 2006, Christenholz sold the property to Thomas H Dye, et al. for $9.5m with $4,075,010 down and assumption of the CMBS debt, now held by Bank of America as successor-by-merger to Lasalle Bank. Finally, Bank of America assigned the $5.68m original note to US Bank on July 12^th, 2012. US Bank noticed the property for trustee sale July 26^th, 2012, naming Fred C. Smith as trustor despite the property selling two additional times and assumption of debt.

For more information on this and other commercial real estate intelligence from VIZZDA, follow us on Twitter, 'like' us on Facebook, sign in or  join our 30-day free trial and beta test!

BY:
Paul Dionne

Research Analyst

pdionne@vizzda.com

Hadden Schifman
Managing Director

Hadden@VIZZDA.com