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TDI Starts 332-Unit Luxury M-F Project at One Scottsdale

20 Jan 2014, 5:19 pm

By Amalia Otet, Associate Editor

Irving, Texas–based TDI Real Estate Holdings L.L.C. has broken ground on Jefferson on Legacy, a 322-unit luxury apartment community. The project is part of One Scottsdale, a 115-acre mixed-use development in North Scottsdale.

Jefferson on Legacy is the second phase of a planned 750-unit residential development and is scheduled for completion in 2015.

“Jefferson on Legacy will be the premier luxury multi-family project in north Scottsdale to meet a growing demand for upscale housing in this submarket, which is a major employment center for the region,” said TDI executive vice president & investment partner Gus Villalba.

The multi-family community will offer 150 one bedroom/one bath apartments, 151 two bedroom/two bath apartments and 21 three bedroom/three bath apartment homes. Amenities include a controlled access gate, free Wi-Fi in all common areas, as well as a 10,400-square-foot clubhouse that features a lounge, media room, gourmet kitchen and fitness center.

Jones Lang LaSalle Inc. arranged a construction loan from Fifth Third Bank and equity financing from an institutional equity provider.

TDI currently has 2,608 units under construction in Texas, New York and Arizona and provides asset management for more than 5,294 units nationwide. The company plans to develop another 1,200 units over the next 12 months.

A joint venture of DMB Associates Inc. and Macerich, One Scottsdale could eventually comprise 1.8 million square feet of office and retail space, 1,100 upscale residential units and a 400-key boutique hotel at Scottsdale Road and the Loop 101 Freeway, according to the development’s website. Henkel AG’s North American headquarters anchors the office component.

One Scottsdale Rendering via DMB Inc.



P. B. Bell Closes on Sites of Luxury M-F Projects in Phoenix, Scottsdale

24 Dec 2013, 4:42 pm

By Amalia Otet, Associate Editor

P. B. Bell Cos. has closed on the site of a planned 244-unit luxury multi-family community about five miles from downtown Phoenix, the Scottsdale-based company said Dec. 19. Located at the intersection of 16th Street and Highland, the project is scheduled to open during the second quarter of 2015.

Dubbed Scape Modern Living, the complex will offer one- and two-bedroom units in three- and four-story building configurations. Units will feature nine-foot ceilings, complete appliance packages, granite countertops, balconies and walk-in closets. Common amenities include gated access, underground parking, attached garages, a heated pool and spa, residents’ lounge and exercise facility, theater room, fireplace and flat-screen TV. The community will be situated near Camelback Corridor and the Biltmore area.

P.B. Bell also said that it has closed on a 4.5-acre site in Scottsdale where it plans to build Cascàd, a 187-unit high-end apartment community. Located at Scottsdale Road and Mayo Boulevard, the project will feature a pool with spa, exercise facility and residents’ lounge, among other amenities. Cascàd is part of a planned mixed-use project that may also include retail, hospitality and office components.

The Greater Phoenix multi-family market has shown strong growth lately, with vacancy rates dropping and rents growing for the fourth consecutive year. According to Marcus & Millichap Real Estate Investment Services Inc., average monthly rents will end the year at $775, a 2.9 percent increase compared with 2012. Last year average rents increased 2 percent.

Nearly 2,900 new units have come on the market during the past 12 months, more than 1,900 of them during the second and third quarters. Some 7,600 units are under construction.

The largest of those projects are the Liv Ahwatukee in South Phoenix and Liv Northgate in Gilbert, high-end projects being developed by Grand Haven, Mich.-based Investment Property Associates. Scheduled for completion this coming spring, each community will comprise 402 units.

Photo credits: Rendering of Liv Northgate luxury apartments via official website



Whitestone REIT Buys N. Scottsdale Community Center for $37M

14 Dec 2013, 12:59 am

By Amalia Otet, Associate Editor

In a $37.4 million off-market deal, Whitestone REIT has acquired Market Street at DC Ranch, a 241,280-square-foot mixed-use neighborhood center in North Scottsdale, from DMB. The purchase price equates to $156 per square foot.

The property was 80 percent occupied at the time of closing and includes an adjacent land parcel that permits the addition of 35,000 square feet of leasable space.

Developed in phases between 1999 and 2003, Market Street primarily serves DC Ranch, one of Scottsdale’s signature master planned communities. It is located on the southeast corner of Thompson Peak Parkway and Pima Road and features a ‘main street’ theme incorporating 15 architecturally distinctive buildings that include 86,991 square feet of office space and 154,289 square feet of retail.

“While Market Street was not on the market for sale, we began discussing a possible purchase directly with DMB in early summer,” said Whitestone Chairman & CEO James Mastandrea in a statement.

The community center is anchored by a Safeway grocery store and showcases a diverse tenant base including Wells Fargo Bank, Fleming’s Steak House, Grimaldi’s Pizza, MidFirst Bank, McCormick & Co., and Edward Jones.

Market Street is Whitestone’s 21st acquisition in the Phoenix metropolitan area, and expands its local footprint to over 1.8 million square feet. Since its equity raise in October, the Houston based-REIT has invested $60.7 million in three properties, including Fountain Hills ($20.5 million), Corporate Park Woodland II ($2.8 million) and Market Street ($37.4 million).

Meanwhile, 7200 West Buckeye Road Industrial Investors L.L.C. purchased 7200 West Buckeye Road, a 400,000-square-foot industrial property in Southwest Phoenix for $26.3 million. Jones Lang LaSalle Inc. Managing Directors Mark Detmer and Bo Mills represented both the buyer and the seller.

Located on Buckeye Road within minutes of Interstate 10, the property is 100 percent leased through 2017 to Home Depot U.S.A. Inc. The building was built in 2009 and features amenities such as 32-foot clear heights, cross-dock loading, concrete truck courts and trailer storage.

Photo credit: Whitestone REIT via Business Wire



Liberty Property Trust Breaks Ground on 1 MSF Tempe Business Park

9 Dec 2013, 5:25 pm

By Amalia Otet, Associate Editor

Liberty Property Trust has broken ground on the first building at Liberty Center at Rio Salado, a 1 million-square-foot business park in Tempe and the REIT’s largest project to date in Arizona.

Scheduled for completion in mid-2014, the speculative two-story project at 1850 W. Rio Salado Parkway will feature 155,000 square feet of Class A office space. Additionally, the building is designed to achieve LEED Silver certification. Site preparation is currently under way for a sister building nearby.

In all, the first phase will include six office buildings and one industrial buildings, Liberty said in a statement. For the second phase, which will be located across the street, Liberty is eyeing plans for a hotel, retail space and additional office buildings.

“Our strategy is to create work environments that can make a difference in the quality of people’s lives,” said William Hankowsky, CEO of the Malvern, Pa.-based REIT, in a statement. “We believe that Liberty Center at Rio Salado—with its sustainable buildings and commitment to amenities such as an outdoor amphitheater and Wi-Fi—will provide a terrific location for creativity, productivity and innovation.”

At full build-out, the Liberty Center development will comprise as many as 11 buildings. It will also offer convenient access to Sky Harbor International Airport and to major Phoenix-area freeways. All buildings in the park will be designed to LEED standards and will emphasize energy efficiency and green practices.

As previously reported by Commercial Property Executive, Tempe tapped Liberty in 2012 as master developer of the 100-acre site at the northwest corner of Priest Road and Rio Salado Parkway.

Rendering of Liberty Center at Rio Salado via website



Freeport-McMoRan Center Receives TOBY Award; MIG Picks Up Class A Office Building

30 Nov 2013, 12:08 am

By Amalia Otet, Associate Editor

Freeport-McMoRan Center, a 26-story mixed-use building in downtown Phoenix managed by Transwestern, has received The Outstanding Building of the Year (TOBY) Award for 2013 from the Building Owners and Managers Association International’s Greater Phoenix chapter. The award recognizes Transwestern’s property management and operations skills in the corporate facility category.

The TOBY awards honor outstanding commercial office projects and recognize excellence in building management. During the competition, the building goes through a series of assessment procedures that evaluate everything from community involvement and site management to environmental and “green” policies and procedures, tenant relations programs, amenities package, building standards, energy management, accessibility and overall service.

Owned by National Electrical Benefit Fund, the three-year-old property serves as the corporate headquarters of Freeport-McMoRan Copper & Gold Inc., the world’s largest publicly traded copper mining company. It is also home to The Westin Phoenix Downtown hotel and Province restaurant. In 2010, the building was named one of the best tall buildings in the Americas by the Council on Tall Buildings and Urban Habitat.

In office investment news, Newport Beach, Calif.-based MIG Real Estate has acquired Arcadia Gateway Center, an 89,835-square-foot, Class A office building in Phoenix, for an undisclosed price.

Located at 4222 East Thomas Road, the four-story property offers a variety of suite sizes with views of Camelback Mountain and the Phoenix Mountain Preserve. Additionally, the property features a three-story, detached parking structure. It was 93 percent leased at the time of the sale.

“Arcadia Gateway Center is one of the higher quality office properties along the 44th Street Corridor,” said Greg Merage, CEO of MIG Real Estate, in a statement. “We plan to continue investing in Phoenix, as it is in the early stages of recovery and is expected to outperform the U.S. in terms of office employment growth and corporate investment, as highlighted by the recent announcement from State Farm to increase its workforce by 6,000 employees.”

Arcadia Gateway Center offers convenient access to Phoenix Sky Harbor International Airport as well as to upscale shopping destinations including Downtown Scottsdale and Biltmore Fashion Park. Retail centers such as Arcadia Crossing and Desert Palm are within walking distance.

Photo credits: Transwestern via PRNewswire



Mark-Taylor Breaks Ground on Gilbert M-F Community; Crescent Kicks Off $61M M-F Project in Scottsdale

24 Nov 2013, 12:19 am

By Amalia Otet, Associate Editor

Mark-Taylor, Inc. recently broke ground on San Privada, a 296-unit luxury rental community in Gilbert. Located at 1480 E. Pecos in the Spectrum neighborhood, ‘the Next Generation’ complex will offer one-, two-, and three-bedroom homes with an average size of 1,087 square feet. Interiors will feature open kitchens with granite, distressed plank flooring, custom cabinets, bar-top seating with pendant lights, and oiled bronze fixtures.

Additionally, the community will showcase amenities such as resort-style swimming pool with sundeck, poolside cabanas and wet bar, whirlpool spa, and the industry’s largest on-site fitness center with a separate spinning studio, individual workout stations, and TVs. Leasing is scheduled to begin next May; rents will range from $900 to $1800, according to AZRE Magazine.

Meanwhile, Crescent Communities and joint venture partner Glimcher Realty Trust began construction on Crescent Scottsdale Quarter, a $61 million, 275-unit luxury apartment complex. Scheduled to open in the spring of 2015, it will be the first residential component of Scottsdale Quarter, Columbus, Ohio-based Glimcher’s 28-acre mixed-use development at Scottsdale Road and the Greenway-Hayden Loop.

Charlotte, N.C.-based Crescent’s six-story building (pictured at right) will feature studios, one-bedroom and two-bedroom units. The community will offer a resort-style saltwater pool and two-story fitness center with views of the McDowell Mountains.

Crescent Scottsdale Quarter will also be among the first apartment communities in the city to comply with the 2012 International Energy Conservation Code and International Green Construction Code, the company said in a statement.

The property will offer access to an upscale, 370,000-square-foot open-air center that features a tenant roster including Apple, Restoration Hardware, lululemon, Calypso St. Barth and True Food Kitchen. Scottsdale Quarter also includes 203,000 square feet of office space.

Crescent and Glimcher are providing equity for the project, and Regions Bank is the construction lender. Whiting-Turner Contracting Co. is the builder. The architect is Gromatzky Dupree & Associates. Nelsen Partners, Inc. is the design architect, and Kimley-Horn and Associates is the civil engineering partner.

Photo credits: Crescent Scottsdale Quarter



Apple Acquires 1.3 MSF Manufacturing Facility in Mesa for Supplier

21 Nov 2013, 3:59 pm

By Amalia Otet, Associate Editor

In a $113.57 million deal, Apple Inc. has purchased a brand-new, 1.3 million-square-foot industrial property on an 83-acre site in Mesa, the Phoenix Business Journal reported.

The complex is situated within Eastmark, a 3,200-acre master-planned community being developed by DMB Associates. Apple will join Grand Canyon University and BASIS Mesa, which have already set up shop at Eastmark. The facility was designed to house a cadmium telluride (“CdTe”) PV module manufacturing factory for First Solar Inc, a Tempe-based provider of comprehensive photovoltaic (PV) solar energy solutions. However, First Solar never commissioned manufacturing at the facility. On October 3, 2013, the company entered into an agreement to sell the facility to an unnamed buyer, later identified as Apple Inc.

Cupertino, Calif.-based Apple has purchased the compound for its supplier, GT Advanced Technologies Inc., which will use the facility to manufacture sapphire-glass goods and other components used in Apple products. As part of a multi-year agreement with Apple, Merrimack, N.H.-based GT will deliver low-cost, high-volume sapphire material. GT plans to employ over 700 people in the first year. Additionally, the project is expected to generate approximately 1,300 construction and associated jobs. Apple will provide an estimated $578 million prepayment, which GT will reimburse over five years starting in 2015, the company said in a statement.

“Apple’s commitment to manufacturing that will rely on renewable energy further demonstrates its forward-thinking, progressive nature and Arizona’s advanced capabilities in producing and delivering renewable power,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “Salt River Project has been instrumental in working with Apple to create additional advanced renewable energy sources that will power next-generation manufacturing.”

Rendering of the First Solar facility in Mesa via DMB Associates



Buchanan Street Buys $52.6M Portfolio; Hines’ Camelback II Earns State’s 1st LEED Platinum for Existing Buildings

21 Nov 2013, 3:58 pm

By Amalia Otet, Associate Editor

In a $52.6 million deal, Buchanan Street Partners has acquired a 10-building portfolio totaling 446,000 square feet in metropolitan Phoenix from Carlson Real Estate Co. The sale price equates to $118 per square foot.

The portfolio, which was 74 percent leased at the time of the sale, was purchased in four separate transactions and includes a mix of office, industrial, office flex and retail properties. Three of the assets are located in Cotton Center in Phoenix while the fourth is an industrial property in Avondale, in the Southwest Valley submarket.

The Cotton Center is a 280-acre mixed-use business park that integrates a variety of uses including office, industrial, service retail and hospitality.

Newport Beach, Calif.-based Buchanan Street Partners now owns more than 1.2 million square feet of commercial space in the Phoenix area. “This investment underscores our ongoing commitment to invest in Phoenix and select Valley submarkets,” said Tim Ballard, president of Buchanan Street Partners, in a statement. “The improving market fundamentals and the high caliber of tenants in these properties make this an attractive acquisition for us.” The transaction was structured by Eastdil Secured.

Meanwhile, 24th at Camelback II, a 307,000-square-foot Class A office building situated in the heart of Phoenix’s Camelback submarket, has achieved LEED Platinum certification under the U.S. Green Building Council’s existing building program.

Owned by Hines and an East Coast pension fund advised by Invesco, the property is Arizona’s first LEED-EB Platinum building and also earned the ENERGY STAR label in 2012.

Located on an 8.5-acre site at the southwest corner of 24th Street and Camelback Road, the 11-story building was developed by Hines in 2010. The project’s designer, Pickard Chilton Architects of New Haven, Conn., also designed the neighboring 24th at Camelback I. Also managed by Hines, that building earned LEED Gold designation.

Green highlights of 24th at Camelback II include: reduced heat island effect through covered parking and reflective roofing; use of low-VOC materials and finishes; a 30 percent reduction in indoor, potable water usage; electronic waste recycling programs; a 60 percent reduction in landscaping-related water consumption; enhanced indoor air quality systems; and a construction waste diversion rate greater than 50 percent. Additionally, Hines offers its GREEN OFFICE for Tenants program, which is focused on inspiring enhanced sustainable behavior among tenant groups. (Hines)



Alliance Plans 316-Unit M-F Project in Scottsdale; Bridge Investment Group Pays $38M for Mesa M-F

3 Nov 2013, 7:36 pm

By Amalia Otet, Associate Editor

Alliance Residential has acquired a 5.4-acre multi-family development tract at 75th Street and Stetson Drive in Downtown Scottsdale, and plans to break ground on an upscale 316-unit project by the end of the year.

The company purchased the property for $18.5 million from Equity Partners Group, a division of Scottsdale-based Triyar Cos.  The sale price equates to $58,544 per unit.

David Fogler and Steven Nicoluzakis, executive vice presidents with Cassidy Turley multi-family investment group and Don Arone of the firm’s office group, represented the seller and brokered the transaction. “This is a premier multifamily development site located in the center of the Entertainment District in Downtown Scottsdale,” Nicoluzakis said.

Development costs are expected to run between $65 million and $70 million, according to Business Real Estate Weekly of Arizona.

In other multi-family news, Business Real Estate Weekly reports that Murray, Utah-based Bridge Investment Group Partners L.L.C. purchased Aventerra at Dobson Ranch (pictured at right), a 576-unit lakefront apartment community at 1960 West Keating Ave. in Mesa, for $38.4 million, or $66,710 per unit. The seller was an affiliate of Los Angeles-based Summit Equity Investments. Mark Forrester and Ric Holway of Hendricks-Berkadia in Phoenix arranged the transaction.

Built in 1980, Aventerra at Dobson Ranch underwent extensive renovation in 2012. Units feature high quality finishes, simulated wood flooring, stainless steel appliances and cherry or white cabinetry. Common amenities include a resort-style pool and spa and a playground.

Photo credits: Aventerra at Dobson Ranch Facebook page



Diversified International, Alliance Residential Buy Tempe M-F Asset for $15M

26 Oct 2013, 8:52 pm

By Amalia Otet, Associate Editor

In a $15 million deal, Diversified International Partners and Alliance Residential acquired Dorsey Place, an 84-unit, condominium-style apartment building in Tempe, from Stratford Partners and Pathfinder Partners.

Built in 2007, the four-story, 96,400-square-foot building is located on East University Drive, less than a mile from Arizona State University and near several major corporate projects under construction. It offers two-bedroom and three-bedroom apartment homes with upscale finishes, granite countertops and stainless steel appliances. Community amenities include underground parking, a heated swimming pool in a central courtyard and a resident clubhouse.

San Diego-based Stratford Partners and Pathfinder Partners were represented by Transwestern’s multifamily team in Phoenix, led by Vice Presidents Jack Hannum and Bret Zinn and Financial Analyst John Drowns.

Diversified International and Alliance Residential, both of Phoenix, plan to add value through such improvements as converting vacant first-floor retail space into residential units, adding a fitness center and renovating common-area amenities.

“With State Farm currently building 2 million square feet of office space on nearby Tempe Town Lake, there is growing demand for multi-family residential units here,” commented Hannum in a statement. “So in terms of timing, this is a win-win for the Dorsey Place buyers and sellers, as well as the City of Tempe.”

The North Tempe/University submarket led the area in rent growth during the past year, with average prices rents climbing 12 percent to $1,026 per month. According to Marcus & Millichap Real Estate Investment Services Inc., nearly 1,600 units were brought into service in the past four quarters, which contributed to the spike in rates.

Demand for apartment assets remains strong throughout metropolitan Phoenix, with 147 apartment property sales completed in the 12 months ending October 2013, according to research by Pierce-Eislen. Sales increased 5 percent year over year compared to the same period in 2011-2012. Development is also picking up, with 36 properties and 7820 units currently under construction.

Photo credit: Transwestern 







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