VIZZDA—June 20th, 2013 — John T Rassier of
Rassier Properties—a Danville, California-based retail property developer—has
completed the sale of The Mercado at Scottsdale Ranch to locally-headquartered
Real Estate Investment Trust (REIT), Whitestone. Whitestone paid $10,15m in
cash and assumed Rassier’s outstanding $11.1m CMBS debt in care of US Bank as trustee. The $21.25m purchase price reflects
$179.65 per square foot and a 30% premium to the prior purchase price of
$16,241,259 in August of 2003.
The Mercado at Scottsdale Ranch is a grocer-anchored
neighborhood shopping center totaling 118,285 ft2 located east of
the southeast corner of 96th Street and Shea Boulevard. The property
includes a 29,431 ft2 anchor space occupied by A.J.’s Fine Foods, a
12,900 ft2 sub-anchor space occupied by Walgreen’s, 64,948 ft2
of general inline space and Goldie’s Sports Bar, which occupies a 6,166 ft2
2-story space in the southeast quadrant of the property. The Mercado sits on a
8.594 net acre site, zoned c-2 and was completed in 1992.
Rassier previously acquired the property as Tenant-In-Common
(TIC) with two other investors on August 4th, 2003 for the above
mentioned purchase price or $136.30 per square foot. The TIC group paid
$7,340,348 in cash and assumed an earlier $9.4m CMBS note with Northland
Financial bearing interest of 7.26% per annum, maturing January 1st,
2028 and stipulated to have a balance $8,860,910. The Tenancy-In-Common
interests were consolidated for nominal consideration on July 28th,
2006 and the property was refinanced with $11.1m in new debt with Goldman Sachs
Commercial Mortgage Capital, bearing interest of 5.8% per annum and maturing
August 16th, 2016.
The note was securitized as GS Mortgage Securities Corp II,
Series 2006-GG8 and while the property was never noticed for trustee sale, the
note had been assigned to LNR Partners as special servicer. For the moment, the
note is under the direction of Wells Fargo as Master Servicer and has counted
Wells Fargo, Bank of America and—currently—US Bank among its trustees. The
outstanding principle balance was not recorded in the assumption agreement
between US Bank, Rassier and Whitestone. Whitestone’s Chief Operating Officer,
John Dee, was signatory for the acquisition.
By:
Paul Dionne
Director of Analytics
Vizzda.com
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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
