Sunbelt Holdings Sells Multi-family Site for $4.5m

Vizzda--July 29th, 2013 -- A joint venture between Bruce Hart of Vedura Residential and Bert Getz of Globe Corporation purchased a 4.23 gross acre vacant site that is fully entitled for a 266-unit multifamily project called Elevation on Central. The site is located at the southwest corner of Central & Highland Avenues in Phoenix. John Graham of Sunbelt Holdings sold the site for $4.5 million or $24.42 per square foot in the all cash transaction.

Plans for the project were approved following a city council meeting on April 3rd, 2013. The three buildings planned for the site will wrap around the six-level, 400 space above-ground parking garage, for a parking ratio of 1.5 spaces per unit. The development will be four stories and have a height of 69’8”.  The unit mix is planned as follows: 72 studio, 120 one bedroom one bath, 24 two bedroom one bath and 50 two bedroom two bath units. The units will have 9 different floor plans.  

The project will occupy 3.4 net acres of the 4.23 gross acre site, making a density of 6.8 dwelling units per acre. 13% of the gross acres will be dedicated towards open space.

The new Planned Unit Development zoning conforms with the general plan Transit Oriented Development overlay (TOD-1) in the light rail corridor. The site is 0.2 miles north of the Campbell/Central Avenue light rail station, and 0.25 miles south of the Camelback/Central Avenue station.

By:
Daniel Alpers
Director of Planing & Municipal Projects

Oliver McMillan Completes Acquisition of the Lofts at Hayden Ferry

Future Site of the Lofts at Hayden Ferry

VIZZDA—April 16^th, 2013 — A joint-venture formed by Sunbelt Holdings and Rockpoint Group of Dallas, TX has sold a 3.695 acre parcel within the Hayden Ferry development for $5.85m or $36.30 per ft². The buyer is Oliver McMillan through its CFO and Secretary, William Persky. Oliver McMillan is a luxury multi-family and mixed-use developer founded by Morgan Dene Oliver and James McMillan and based in San Diego. The group financed the transaction with a $2.925m promissory note and a term loan in the same amount with Bank of America. No additional construction debt was located with the sale, though should additional sums be made available, Vizzda will update this post to accurately reflect the state of project financing.

The site is planned for “The Lofts at Hayden Ferry”, a 264-unit apartment complex in one 4-story building totaling 327,182 ft².  The development will also feature fifth-floor loft space in select units and a 2-story sub-grade parking facility containing 459 parking spaces and totaling 197,633 ft² for a combined project square footage of 524,815 and a density unit per acre of 71.4. Despite the proximity of the site to Arizona State University’s Tempe Campus, planning documents associated with the parcel make no mention of dedicated student housing.

The proposed unit mix is as follows:

Number of Units	Bedrooms	Bathrooms	Average ft2
15	0	1	575
77	1	1	741.66
89	2	2	1120
26	3	2	1314
25	1 w/ Loft	1	867
32	2 w/ Loft	2	1358

Sunbelt Holdings and Rockpoint Group acquired the property from the now-defunct SunCor Development on September 15^th, 2010 for $250k or $1.55 per ft² as part of a $7,581,095 portfolio sale that included both raw land and improvements in several valley markets. While the prior sale price is likely depressed because of its inclusion in the larger portfolio—as well as the rapidly deteriorating financial condition of the seller—we calculate the annualized rate of return to be in the vicinity of 890% depending on carrying costs to the joint-venture, which are assumed to be nominal.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Sunbelt Holdings Acquires Laveen Vistas for $7.2m+

VIZZDA—November 5^th, 2012 — Mark Shekerjian of Parkway Bank & Trust has sold 190.73 acres of agricultural land North of the Northwest corner of 51^st Avenue and Carver Road to Sunbelt Holdings for $7,218,100 or $37,990 per acre. Sunbelt Holdings paid $2,165,430 in cash to acquire the property and secured it with $5,052,670 new debt, seller carry, with a maximum allowable lien of $10,105,340.

The parcel was previously acquired as approximately 199 acres by Zacher Homes on September 6^th, 2005 in three transactions totaling $15,205,600 or $76,410 per acre. Upon completion of the sale, Zacher encumbered the land with new debts of $16.575m with Parkway Bank & Trust and $10.881m with TCC Investor Holdings. Zacher further encumbered the property with new debt of $8.1m with Merchants Funding issued September 8^th, 2006 and $1.8m additional debt with Parkway Bank & Trust issued March 27^th, 2007.

A Notice of Trustee Sale was served on the senior $16.575m note with Parkway Bank & Trust on December 9^th, 2008 and the property reverted to beneficiary at an April 19^th, 2011 trustee’s auction with a $9.492m credit bid. The property was held by a Parkway Bank & Trust reversion entity—PB & J XXIV, LLC—for approximately 19.5 months prior to the November 2^nd, 2012 sale date.

Per the listing broker, James T. “Nate” Nathan of Nathan & Associates, the site had received preliminary approval from the City of Phoenix in 2007 for 555 lots with the following front footages:

·      194 lots of 70 front feet

·      157 lots of 60 front feet

·      197 lots of 50 front feet

·      Seven custom lots of at least 140 front feet

This plan also calls for 7.37 acres of commercial development within the community, though this preliminary platting has expired. John W. Graham, in his capacity as CEO, was signatory for Sunbelt Holdings.

Contact Vizzda today to schedule a demonstration of our groundbreaking commercial real estate research platform and receive unlimited access to timely, accurate and actionable CRE intelligence.

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 

Fresh to Phoenix, Gehan Homes Buys 49 Lots in Vistancia for $3.969M or $81K/Lot

VIZZDA – August 21, 2012 – Randy Hearne (CFO) represented Stratford Land in the sale of 49 partially improved lots within Vistancia to Texas-based Gehan Homes for $3.969M or $1,350 per front foot. The sale is per a prior purchase agreement between the buyer and seller dated 7/11/12.

The lots are within the Vistancia Village A Parcel G2 subdivision, which is planned for a total of 101 lots on 35.12 acres, a density of 2.87 lots per acre. This land has been partially graded but no other horizontal improvements have been built on the site. Per Stratford, land development will begin in early October. The lots are all 60’ x 120’ in dimension (7,200 SF area). Recorded documents indicate Woodside is the designated builder on the remaining lots within Parcel G2.

Vistancia, located in Peoria North of the 303 and Dysart Rd is a 7,100 acre masterplan community originally developed by Sunbelt Holdings and Shea Homes in 2001. Stratford Land joined in 2009 as an equity partner. This purchase by Gehan marks the second Phoenix acquisition tracked by VIZZDA, refer to our other here.

Hadden Schifman
Managing Director
hadden@vizzda.com