City Weighs 100-Acre Sale to Liberty Property Trust

By Camelia Bulea, Associate Editor

The Tempe City Council is scheduled on Feb. 7 to consider a proposal by Liberty Property Trust to acquire and develop up to 100 acres of city-owned land, the Phoenix Business Journal  reported.

 Under the proposed agreement, Liberty would buy 81 parcels of city-owned land at the intersection of Priest Dr. and Rio Salado Parkway near Tempe Town Lake in phases. A 21-acre public works yard located on the northeast corner of the site would be relocated if the Malvern, Pa.-based REIT exercises an option to buy the parcel.

In all, Liberty would develop more than 800,000 square feet of office, flex or industrial buildings. Liberty would start construction during the first half of 2013 and build out the site over the next nine to 12 years, the city said in a statement late last month. The firm was selected in Feb. 2012 from candidates responding to a request for qualifications.

“Now more than ever, job creation is a top priority, and developments like these will get us to an ever better place as a community,” Tempe Mayor Mark Mitchell commented in a statement. The deal would generate an estimated $11.9 million to help fund city projects, such as a new dam at Tempe Town Lake that must be completed by Dec. 2015.

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North Scottsdale Mixed-Use Project Launches Construction With $62M M-F Complex

By Camelia Bulea, Associate Editor

Dallas-based TDI Real Estate Holdings LLC broke ground earlier this month on Jefferson at One Scottsdale, a multi-family community that will be the first component of an 80-acre mixed-use development.

Phase one is scheduled for completion in 2014 and will consist of 388 units: 178 one-bedroom apartments, 186 two-bedroom units and 24 three-bedroom apartments.

Project plans also call for a 10,800-square-foot clubhouse, lounge, media room, two resort-size swimming areas with spa, 294 garage spaces and 182 carport spaces. Texas Capital Bank and The PrivateBank provided the construction loan, and Behringer Harvard furnished the mezzanine piece.

When complete, the 750-unit complex will form the residential portion of One Scottsdale, an 80-acre mixed-use project that DMB Associates Inc. and Macerich are planning for the north Scottsdale corporate corridor. In addition to its multi-family component, One Scottsdale will include up to 1.8 million square feet of retail, restaurant and Class A office space and about 400 boutique resort hotel rooms.

Because the multi-family sector has rebounded faster than other commercial real estate categories, DMB and Macerich are launching the residential component first, noted the Phoenix Business Journal.

Rendering of Jefferson at One Scottsdale, via Multi-Housing News

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ASU Plans Groundbreaking on 130 KSF Project in Tempe

By Camelia Bulea, Associate Editor

Arizona State University plans to break ground Jan. 24 on Block 12, a 130,000-square-foot mixed-use project on its campus in Tempe. Developers target June 2014 as the completion date.

The five-story building will be the new home for the Del E. Webb School of Construction and will house classroom and administrative space. Also planned for the complex are a Grab and Go market, café, bookstore and study space.

According to a detailed presentation by the university architect’s office, Block 12 is slated for LEED Silver certification or higher and will incorporate such features as LED lighting, integrated photovoltaic/solar-thermal technologies and a ventilated façade to reduce exterior surface temperatures.

In addition to Block 12 , ASU’s current projects in Tempe include expansion of McCord Hall, a 129,000-square-foot, four-story building at the W.P. Carey School of Business, notes the Ahwatukee Foothills News.

The business school has doubled in size to more than 10,000 students over the past decade, making expansion an urgent need. “To be blunt, we should have built this 12 years ago,” said Robert Mittelstaedt, the school’s dean.

Photo rendering of ASU’s Block 12, by Architekton / Gensler Architects, courtesy of ASU

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Stockbridge Capital/Alliance Residential JV Pays $50M for 629-Unit M-F Complex

By Camelia Bulea, Associate Editor

A joint venture of San Francisco-based Stockbridge Capital Group and Alliance Residential Co. of Phoenix has acquired The Canyons, a 629-unit apartment community in Northwest Phoenix, for $50 million. Continental Realty Advisors, the seller, purchased the property for $45.5 million in 2010, Business Real Estate Weekly reported.

“We see Northwest Phoenix as an area of focus of this continued growth for the next several years,” said Matthew McCormick, vice president of acquisitions for Stockbridge. According to BREW, this is Alliance’s first acquisition of an existing project in the Phoenix market in almost six years. The buyer is looking to purchase other local multi-family assets and land for apartment development.

At the time of the sale the property was 88% leased. Transwestern’s Phoenix office arranged the transaction.

The Canyons was built in two phases in 2004 and 2005. It offers Class A amenities including a clubhouse, resort-style pools, spas, fitness center, business center, BBQ area and Internet café. Monthly rents range from $571 for a studio to $1010 for a four-bedroom unit, according to Trulia.

Photo courtesy of Stockbridge Capital Group

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Novawest Proposes Landmark 420-Foot-Tall Tower for Downtown Phoenix

By Camelia Bulea, Associate Editor

Novawest L.L.C. is planning a distinctive addition to the Downtown Phoenix skyline: a 420-foot pin-like tower that would be the tallest building in Arizona.

Bjarke Ingels Group, a Copenhagen-based architectural firm, is providing the design for a 39-story structure with a reinforced concrete core topped by an open-air spiral sphere. The tower would include 70,000 of retail units, restaurant outlets and flexible exhibition space, noted World Architecture News.

Reminiscent of both a pin and Frank Lloyd Wright’s landmark design for the Guggenheim Museum in Manhattan, the structure would offer a 360-degree view. “The motion at the Pin is turned inside-out, allowing visitors to contemplate the surrounding city and landscape of Phoenix,” explained Bjarke Ingels, the design firm’s founding partner.

Novawest wants to build the structure near the Arizona Science Center, Phoenix Convention Center and US Airways Center, reports the Phoenix Business Journal.

Novawest plans to break ground on the $60 million tower in August 2013 so that the project can be completed before the 2015 Super Bowl, which will be played nearby at the University of Phoenix Stadium in Glendale. 

Major hurdles lie ahead, however; Novawest must secure financing and win city approval. Moreover, the firm will have to negotiate a lease for the city-owned site of the proposed project, adds AZCentral.com.

Rendering: Bjarke Ingels Group via Archello

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University of Arizona Launches $100M Cancer Center at Phoenix Biomedical Campus

By Camelia Bulea, Associate Editor

Construction is scheduled to start this month on the University of Arizona Cancer Center, a $100 million clinic at the Phoenix Biomedical Campus, university officials have announced.

Expected to open in early 2015, the 230,000-square-foot facility will offer comprehensive cancer services, including infusion, radiation oncology, diagnostic imaging, endoscopic/interventional radiology, a breast center, specialized clinics and clinical lab space.

Four of the building’s six stories will be built out initially. The fifth floor will be constructed as shell space for future expansion, and the sixth floor will house mechanical equipment.

Funding for the project is being provided by multiple sources, reported AZCentral.com:

- $14 million from the city of Phoenix
-  $66 million in revenue bonds provided by the University of Arizona
-  $20 million in private donations, including $5 million already in hand

“The Arizona Cancer Center is a tremendous next step on the Phoenix Biomedical Campus, and we look forward to continued growth,” said Mayor Greg Stanton. Located on a 28-acre Downtown Phoenix site, the decade-old campus encompasses research, academic and clinical facilities.

Rendering courtesy of the University of Arizona

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Van Tuyl Group Plans $16M Cadillac Dealership in Glendale

By Camelia Bulea, Associate Editor

The Van Tuyl Group is planning to develop a $16 million Arrowhead Cadillac dealership in Glendale.

The 55,000-square-foot showroom and service center would be located on an eight-acre tract located near 83rd Avenue and Bell Road. Groundbreaking is scheduled for early next year and the dealership is expected to open in the fall of 2013.

The Phoenix Business Journal reports that the group has also paid $7 million in late November for 75 acres across from University of Phoenix Stadium in Glendale near Glendale Avenue and the Loop 101 freeway. Van Tuyl has not released any development plans for that parcel, which was previously eyed for a new USA Basketball headquarters.

Florida-based Van Tuyl operates other several car dealerships in Phoenix, including ABC Nissan, Camelback Toyota, Bell Honda, Midway Chevrolet and Lund Cadillac. Arrowhead Cadillac will also include a Hummer and Saab service center.

Photo rendering of the Van Tuyl Group dealership on East Missouri Avenue in Phoenix, via Google maps

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Tanger Opens $76M Outlet Mall at Westgate City Center in Glendale

By Camelia Bulea, Associate Editor

Eight months after breaking ground, Tanger Outlets Westgate, a $76 million outlet mall, opened to the public on Nov. 15, reported the Phoenix Business Journal. The 85-store center will be an anchor for the 8 million-square-foot Westgate City Center complex, which will incorporate shopping, entertainment, office and luxury residential elements.

Tanger Outlets at Westgate joins two other anchors at the complex: Jobing.com Arena and University of Phoenix Stadium, according to AZCentral.com. Development of Westgate City Center began in 2005, incorporating restaurants, a 20-screen theatre and a 12-story Renaissance Hotel, completed in 2007.

Phase two will integrate the 328,000-square-foot Tanger center into a 440-unit residential district. Tanger may also add another 80,000 square feet to its property at a future date. Westgate City Center is scheduled for completion in 2015 at a cost of $1 billion.

Photo rendering of Westgate City Center courtesy of Wikipedia.org

First Washington-CalPERS JV Buys Lincoln Village Shops for $38.7 million

By Camelia Bulea, Associate Editor

Global Retail Investors L.L.C .,  a joint venture of First Washington Realty and the California Public Employees’ Retirement System, has acquired Lincoln Village Shops in Scottsdale for $38.7 million,  or $544.16 per square foot, the Phoenix Business Journal reports. The seller, an affiliate of Redwood Real Estate Partners, had owned the 71,142-square-foot property located at Scottsdale Road and Lincoln Drive since 1993. Lee & Associates was the broker.

Serving both Scottsdale and Paradise Valley residents, Lincoln Village Shops includes national and local tenants such as Walgreens, Trader Joe’s, Verizon Wireless and Cingular Wireless. Built in 1979, the retail property was renovated in 2011. Global Retail Investors’ portfolio includes more than 90 retail properties.

Marcus & Millichap Real Estate Investment Services Inc. reports that 2012 retail property sales in the Phoenix metropolitan market are dominated by REO and short sales.  Multi-tenant sales activity has risen 23 percent since last year as opportunistic buyers acquire bank-owned neighborhood and strip centers for value-add plays.

More investors may enter the Phoenix market in the coming months, targeting newer centers with nationally recognized tenants like Lincoln Village Shop, according to Marcus & Millichap analysts.

Charts courtesy of Marcus & Millichap Research Services

Intravest Takes N. Phoenix Flex Building for $19M

By Camelia Bulea, Associate Editor

Intravest Development L.LC. has purchased a 145,000-square-foot flex industrial building in North Phoenix. This $19.06 million acquisition marks the first commercial asset in the investor’s portfolio, the Phoenix Business Journal reported.

“This is the first in the line of several transactions Intravest Development plans to complete in the commercial real estate sector over the next 18 months,” commented Thomas M. Roskos, Intravest’s CEO. Robert Lundstedt of Daum Commercial represented Intravest in the transaction. Johnson Bank provided financing for the buyer.

Prior to its latest acquisition, Intravest had focused on multi-family properties in Greater Phoenix, the Business Journal noted.

Located west of I-17 and north of Greenway Road, the building serves as the headquarters of Climatec, a building technology company, under a 10-year, triple-net lease.  Before Climatec moved in five years ago, the building was occupied by Hypercom Corp., the  Business Journal reported. The property earned an Energy Star rating in 2011.

Intravest wants to capitalize on the positive momentum in the Greater Phoenix commercial market, the firm’s principals explained in a statement. The vacancy rate for the metropolitan Phoenix industrial market dropped to 11.1 percent during the third quarter, marking the 10^th consecutive quarter of positive absorption, CBRE Inc. reports.  Twenty-two of its 28 submarkets registered absorption on the plus side. So far this year, the market has absorbed 6.1 million square feet (see chart below).

Photo courtesy of Climatec

Chart courtesy of CBRE Inc.