The Vizzda Weekly - Phoenix - March 6th, 2017

 

THE VIZZDA WEEKLY

March 6th, 2017

 

 

Last week in Phoenix, Vizzda tracked $345,634,205 in commercial real estate transactions

including 74 sales and 12 new projects. Below are Vizzda's top reports of the week. 

 

 

 

 

PLANNING & ZONING 

 

 

New Subdivision of 537 Lots Coming to Buckeye     The Buckeye Planning and Zoning Commission introduced a preliminary plat for a 537-lot residential subdivision on ±139 acres in Buckeye.   (1 of 12 planning & zoning events last week)   Vizzda Subscribers - Click Here to View Full Report

 

LAND

 

 

Monolith Development Buys Land Proposed for Self Storage   2.38 acres of Ahwautukee land sold on February 24th to Monolith Development. The land is proposed for a ±105,000 square feet self storage facility with a conjoined basement level.                   (1 of 13 land sales last week)   Vizzda Subscribers - Click Here to View Full Report

 

OFFICE

 

 

Three-Story Office on Camelback Road Sells for $24,650,000      Lincoln Property Company purchased the 3-story office at 2777 E Camelback Road for $24.65 million on March 2nd from DRA Advisors.              (1 of 18 office sales last week)   Vizzda Subscribers - Click Here to View Full Report

 

MULTIFAMILY

 

 

Tempe Student Housing Sells for over $53 Million   The 225-unit student housing property Regents on University sold to Oxford Properties / Preferred Apartment Communities for $53,325,000 with $1 million down. Sale was funded by a $300 million line of credit with Keybank.   (1 of 13 multifamily sales last week)   Vizzda Subscribers - Click Here to View Full Report

 

INDUSTRIAL

 

 

95,000 Square Foot Distribution Warehouse Sells for over $7 Million   Cohen Asset Management sold the ±95,000 square foot warehouse at 2021 E Jones Ave to local company S & M Moving Systems for $7,068,932, financed with cross-collateralized note with Ameritas Life Insurance Corp.                     (1 of 14 industrial sales last week)    Vizzda Subscribers - Click Here to View Full Report

 

RETAIL

 

 

Casa Grande Shopping Center Anchor Sells for nearly $4.5 Million     California-based investor Amir Fateh Amirian purchased the 23,500 square foot co anchor of the Casa Grande Shopping Center on February 21st. Hinkson Company sold the property for $4,450,000, and the sale was funded by $500k debt with US Bank.               (1 of 16 retail sales last week)   Vizzda Subscribers - Click Here to View Full Report

The Domain at Tempe Student Housing Sells for $65 Million

Area Map

The 299-unit / 959 bed Domain at Tempe Student Housing Apartment Complex sold Thursday for $65 million or $217,000 per unit. It is located near the intersection of McClintock Drive and Apache Boulevard, less than two miles east of the Arizona State University Tempe campus. The Scion Group purchased this asset from Harrison Street. Both buyer and seller are based in Chicago.

A five-story parking garage, two pools, two strip retail buildings and a three-story clubhouse are included on the property. The unit mix includes units of two, three, and four bedrooms.

Wide Area Map

Vizzda subscribers: click here for the full report.

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Vizzda Planning and Zoning Week In Review August 3 - 7 2015

Vizzda Planning and Zoning Week In Review

August 3 - 7 

Here is a brief look at some of the newest Planning and Zoning cases in Maricopa County last week: 

1000 East Apache: Chicago-based owner and student housing developer CA Ventures is submitting a new site plan for the vacant 1.8 acre property located at 1000 E Apache Blvd. This is the third different site plan submitted since 2008. CA Ventures purchased the property for $4 million in January with approximately $20 million in construction debt with Wanxiang America Corporation.  This iteration includes a fourteen story mixed use building with 384 student housing units, 3,838 square feet of ground floor commercial and 417 parking spaces in a 135,000 square foot structure. The unit mix of 53 studios, 72 one bedroom, 164 two bedroom and 95 four bedrooms is planned to total 480,299 rentable square feet. Shepley Bulfinch is serving as the project architect, Wood Patel as the civil engineer and Snell & Wilmer are providing legal representation.  The case is set to be heard by the Tempe Development Review Commission on August 11.

Initial Rendering

Aerial Image of Site

Site Plan

Mattress Firm: Emerald Center is gaining another retail tenant. Houston-based mattress dealer Mattress Firm is planning on adding another location next to the recently completed Texas Roadhouse. The single tenant building is planned to be approximately 7,760 square feet and will share 95 parking spaces with the restaurant. Balmer Architects are serving as both the applicant and project architect.

Mattress Firm At Emerald Center Site Plan

Rhythm: The Tempe portion of the Rhythm project is moving one step closer to construction. Developer Mattamy Homes submitted the Preliminary Plat for the 94 single family residential lots located on approximately twenty acres in Tempe. The lots will have minimum dimensions of 50’ x 95’ with four acres of open space throughout. The Preliminary Plat will be reviewed along with the Development Plan at the August 11 Development Review Commission hearing. The rezoning case for the Chandler portion of the Rhythm development is scheduled to be heard at the August 13 Chandler City Council hearing.

Ritz Carlton Paradise Valley: The Paradise Valley Planning Commission is still conducting study session meetings regarding the Ritz Carlton Paradise Valley project. At the August 4 meeting they reviewed perimeter setbacks, traffic analysis and parking methods. The third work session is scheduled for August 18 where the applicant and city staff will review a revised traffic plan, parking study in addition to the open space plan and drainage / hydrology study. The Paradise Valley Planning Commission has until October 9, 2015 to make a recommendation to City Council on the project. Staff contact for the project is Eva Cutro.

Phasing Timeline for Ritz Carlton Paradise Valley

Wells Fargo Chandler Campus: 15.5 acres of the approximate 68-acre Wells Fargo Campus at the NWC of Price and Queen Creek Roads was introduced to the Chandler Planning Commission for rezoning on August 5^th. The Chandler Planning Commission is serving as the city’s Design Review Board for this project. Rezoning from Planned Area Development (PAD) to Planned Commercial Office (PCO) with a PAD overlay will allow for the third and final expansion of the Wells Fargo campus that was approved in 2013. With the second phase scheduled to open this fall, Wells Fargo is getting started on the third phase. This phase is planned to include: two 9 story offices at 385,000 and 362,000 square feet each, a four story 168,000 square foot office, 5,000 single story bank branch and three 5 story parking garages that will add just over 4,000 spaces.

Rendering for Phase II 

For more information on these properties, visit us at our website or send us an email. We're happy to hear from you!



        

Vizzda Planning and Zoning Week in Review July 27 - 31 2015:

Here is a brief look some of the newest Planning and Zoning cases for Maricopa County for the week of July 27 - 31 2015:

ASU Mixed Use:  – The 100-unit apartment complex known as University Village at 936 South Terrace Road in Tempe is being planned for demolition. The 53-year old apartments are planned to be replaced by a 5-story 559,700 square foot mixed use development designed for Arizona State University student housing. University Village 2.0 will have 260 units and a mix of 22 studios, 29 one bedroom / one bathroom, 56 two bedroom / two bathroom and 153 - four bedroom / four bathroom units in addition to 1,800 square feet of ground floor commercial space. The developer is California-based Legacy Partners who recently completed the mixed-use development The Legacy Bungalows near downtown Phoenix.

Initial Rendering

Phoenix Multi-Family: – The offices located at 4811 N 7^th Street in Phoenix are to be replaced by a multifamily development known as Alta Camelback. The 230-unit four story building with a unit mix of: 146 one bedroom / one bathroom, 78 two bedroom / two bathroom and 6 – three bedroom / two bathroom is currently in the development review process within the City of Phoenix Encanto Village team. The community will also include a 338 space parking garage, pool and 7,300 square foot clubhouse. The project developer is Wood Partners with Biltform Architecture serving as the project architect.  

Initial Rendering

Tempe Retail: -- Dunkin Donuts franchisee James A Klusman submitted the site plan for a new retail building at 4715 S Rural Road in Tempe. The 8,050 square foot multi-tenant building site is the former location of The Lingerie Superstore and is adjacent to City Scape At Lakeshore Apartments. At the time of submittal the planned occupants are Dunkin Donuts and Tokyo Joe's, the building will have the capacity to hold two additional tenants. Bar Napkin Productions is serving as the project architect. 

Single Family Subdivisions: -- The Town of Gilbert approved the Final Plats for two single family residential subdivisions at the July 30th meeting. Fulton Homes was given approval for the 193 lot / 34.6 acre Phase 2, Parcel 15 of Cooley Station near the NWC of Recker and Williams Field Roads. Ryland Homes was given approval for Brighton a 43 lot subdivision on 12.4 acres at the NWC of Val Vista Drive and Elliot Road.

For more information on these properties, visit us at our website or send us an email. We're happy to hear from you!



        

Gateway at Tempe Apartments Conveys in Bankruptcy Sale

Area Map

The 288-unit Gateway at Tempe Apartments near the corner of McClintock and University Drives sold Monday for a purchase price of $56.75 million, or just over $197,000 per unit with no debt recorded. Apex One Investment Partners acquired the property via bankruptcy sale. It had previously been sold for $51 million back in 2006, funded by a $33,150,000 loan with Wachovia Bank.

The complex consists of one, two, three, and four bedroom units. It was built in 1998 and is currently being used as ASU student housing.

For more information on this property including complete unit mix, history, and buyer/seller contacts, visit us at our website or send us an email. We're happy to hear from you!



        

Tempe Resort Style Student Housing at Rural & Apache Comes Online, Sells to REIT

By: Daniel Alpers | Vizzda

Another lavish student-housing complex in Tempe has come online near the Tempe ASU campus. The District on Apache is a 900-bed development that is located ±350 ft from the southeast corner of Rural Road and Apache Boulevard, which is the intersection that marks the southeast corner of campus. The Education Realty Trust REIT purchased the property from Residential Housing Development, a Houston, Texas & West Palm Beach, Florida based developer for $91m or $101,111 per bed. This is just one of many large student housing that have been built in the booming Tempe urban market.

Photo of Streetscape on Apache

The six-story single-building property was built in 2013, totals ±365,225 SF, and wraps a 6-tiered 770 unit parking structure. The property features 1,044 square feet of ground floor retail space that is divided by the parking structure entrance. The property's 279 units consist of a mix of studio, one-bedroom, two-bedroom, three-bedroom, four-bedroom, and five-bedroom living spaces. These units surround the very unique lazy river style pool and Jacuzzi. Another notable feature is the 2-story workout facility.

In their press release, Education Realty Trust REIT describes The District on Apache property to be “laden with the high-end amenities that are fast becoming the prerequisite among the student population”. This property enters the resort style Tempe student housing submarket with the likes of 922 Place (across Apache Boulevard to north), Vista Del Sol (±700 feet west of southwest corner of Rural & Apache), & The Villas at Vista Del Sol (±1,400 feet west of southwest corner of Rural & Apache), University House, and Grigio at Tempe Town Lake, most of which have been built in the last few years.

 

Rural & Apache vicinity map

This project, entitled with high intensity mixed use & residential zoning (MU-4 & R-5) contributes to the Apache Boulevard urban streetscape with the vertical 6-story building street-wall regulated to just 5-foot setbacks. This dense and walkability-prioritized urban mixed-use building design compliments the surrounding southeast campus student community that also includes a recently built dense cluster of ASU dorms at the northwest corner of the intersection. Altogether, this relatively new southeast-campus student living cluster has created a beehive of pedestrian activity at the intersection of Rural Road and Apache Boulevard.

The majority of the land for the District on Apache project (4.36 acres) was assembled in 2010 by Rockbridge Capital through three transactions. Residential Housing Development bought that 4.36 acre piece in 2011, the 28-unit “Spence Ave Apartments” with the sale, and traded land with Kevin Baer of Baers Den Bar, all concurrently on November 1^st, 2011, to assemble the 5.25 acres that the District on Apache sits on today. Baers Den Bar relocated to the west side of the property.

Formerly Distressed Student Housing in Tempe Sold for $38.7m

By: Paul Dionne | Vizzda.com

Block 1949

Block 1949—the “Class A” student housing and multifamily development located east of the southeast corner of McClintock and University Drives—was acquired by a tenancy-in-common (TIC) group comprised of Consolidated Investment Group (CIG) and CWS Capital Group (CWS) for $38.7m or $172k per door. CIG is the majority interest in the new ownership structure—acquiring 85% of the TIC interest in the property in an all cash purchase. In an interesting wrinkle to the deal, CIG was founded by David Merage who is the brother of Greg Merage, whose MIG Capital acquired the nearby Quadrangles Apartments in April of this year.

Block 1949 is a 225-unit, 640-bed apartment and student housing complex in one 4-story, courtyard style building totaling 264,555 net rentable square feet. The project sits on 6.35 acres of MU-4 zoning in Tempe and was completed in 2009. There are twenty-five studio units, ten live/work units, sixty-four two-bedroom, twenty-seven three-bedroom and ninety-nine four bedroom units. The five-level on-site garage has 702 parking spaces or 2.75 spaces per unit. The new ownership plan to re-brand the property as Regents on University.

Block 1949 Apartments and Shuttle

The property was originally acquired by JLB Partners as raw land in April 2008 for $6.15m or $22.22 per unimproved square foot. JLB financed $4m of the purchase price, which they took out with $30m in construction debt with Compass Bank.  Less than a month later, a Final Plat for Block 1949 was recorded and construction began. A joint venture between Pierre Education Properties and Partners Group acquired the completed project in March of 2011 for $52m or more than $230k per door, with $13.5m down and $38.5m new debt with Deutsche Bank. The property was placed into receivership in September of 2013 and reverted to affiliates of Deutsche Bank in January of 2014 with a $44m credit bid. 

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

Student Housing Planned for Former Theological Institute in Tempe

By: Cody Weisel | Vizzda.com

An abandoned theological institute west of the northwest corner of Priest Road and University Drive may soon be transformed into a new low-density student housing complex. The site—which was operated as the Charles H. Cook Christian Training School from 1965 through its closure in 2008—could soon be razed and replaced with “village-style” student housing units. 

The project is referred to in planning documents as Capstone Cottages and would contain 159 units for a total of 718 beds with a variety of townhome and multi-unit cottage style housing products. Tempe Development Review Board (DRB) recently approved a design approval request for the project on April 21st, 2014, however the DRB approval will be appealed before City Council later this month. 

The Lindon Park Neighborhood Association, a community organization for the neighborhood just east of the proposed site, has been fervently opposed to the project since being approached by the city and developer. This is not the first time residents of Lindon Park have been opposed to projects at the site. Proposed developments in 2008 and 2011 were both met with opposition by the Neighborhood Association, and were ultimately abandoned.  

The current issue of contention is one that echoes past concerns of the residents. Specifically, medium to high density projects at the site would generate increased traffic within the community. To mitigate these traffic concerns, the Capstone developers have agreed to provide a shuttle bus service for residents, install a traffic signal at Lindon and University, and to place speed bumps on the roads which abut the development. Despite these offers, residents remain skeptical about the project. 

Contention surrounding this and other academic housing projects raises the issue of specific zoning designations for student housing within the Tempe. The city has no such definition within the Zoning Ordinance for student housing developments, and thus, this and other academic housing projects are able to get away with being considered “multi-family”. Emily Gersema, President of the Lindon Park Neighborhood Association, raised this issue at an April DRB meeting, and will the make a final appeal of the project before Tempe City Council on May 22nd, 2014.