Contested $17M Senior Housing Project Breaks Ground in Mesa

By Camelia Bulea, Associate Editor

Mesa officials broke ground Oct. 29 on a $17 million senior living center in the city’s Downtown. Dubbed the Residences at Center Street Station, the five-story project is being developed by Mesa Housing Associates and Encore and is scheduled for completion by October 2013, the East Valley Tribune reports.

Located on First Avenue, the 81-unit development is the first big private investment to get under way in Downtown Mesa for many years, Councilman Dave Richins told AZCentral.com. Richins was one of the big supporters of the project that split City Council members.

Critics, including some council members, contend that a low-income housing project is unsuitable for an area where the city is encouraging major investment around a rail station scheduled to open in 2015, the East Valley Tribune reports. Mesa Housing and Encore previously completed a five-story, 56-unit project, which opened in January in Tempe’s downtown.

Another major project in the works on First Avenue is Goldwater Library and Archives, which will be housed in a three-story, 40,000-square foot LEED-certified building, according to a statement by the city. Plans call for an exhibition area, reading room and café, the project is expected to attract some 57,000 visitors when it opens in 2016.

Photo courtesy of City of Mesa

Banner Health Group Starts $45M East Valley Expansion

By Camelia Bulea, Associate Editor

Banner Health Group is expanding its East Valley presence with a $45.2 million quartet of healthcare centers in Chandler, Gilbert, Mesa and Queen Creek. The Phoenix-based company broke ground Oct. 24 on all four facilities, the East Valley Tribune reported.

Scheduled to open in phases next spring and summer, each facility—about 21,000 square feet in size—will provide primary medical care, on-site imaging and laboratory services. Pam Nenaber, Banner’s chief operating officer, told the Tribune that the facilities will offer lower-cost alternatives to urgent care or emergency rooms. HMC Architects is designing the centers, and Kitchell is the general contractor.

Banner has opened similar clinics in Maricopa and Peoria/Sun City. In May, company  launched the $15 million Banner Health Center in Maricopa, a 41,000-square-foot facility with 36 exam rooms, imaging and laboratory services, according to inMaricopa.com. Three centers in the West Valley and one in Colorado are in the pipeline.

Photo of Banner Health Center in Maricopa, courtesy of Gateway to the East Valley

Archway Holdings Buys Glendale MOBs from Ventas for $20M

By Camelia Bulea, Associate Editor

In a $20 million deal, Archway Holdings Corp. has acquired Arrowhead Health Center, a 103,216-square-foot, two-building complex located near Arrowhead Hospital in Glendale, from Ventas Inc., the Phoenix Business Journal reported.

Formerly known as Arrowhead Orchards, the complex is about 65 percent leased, a level that Archway believes offers growth opportunities. The new acquisition expands Archway’s medical office portfolio in Arizona to about 400,000 square feet.

Arrowhead Health Center marks the biggest acquisition in the market for Archway so far in 2012. Earlier this year, the firm paid $8.6 million for Estrella Health Center, an 80,815-square-foot medical office property at 9250 W. Thomas Rd., from Chicago-based McShane Corp. The company also paid $5.9 million for Baywood Health Center and Broadway Health Center in Mesa. Eric Wichterman and Mike Coover of Cassidy Turley BRE Commercial represented Archway In both transactions.

A recent report from Marcus & Millichap Real Estate Investment Services Inc. shows that demand for medical office space in the Phoenix metro market grew in the past year, prompting developers to break ground on 140,000 square feet of new product that is expected to come online by mid-2013. Investment sales volume for medical office buildings has doubled over the last four quarters as investors show particular interest in properties valued between $1 million and $10 million.

Ventas’ medical office portfolio encompasses more than 320 properties throughout the U.S., 14 of them in Arizona, according to the company’s website.

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.

Allred Starts 2nd Spec Project of 2013 at Chandler Office Park

By Camelia Bulea, Associate Editor

Construction is in full swing on the latest addition to the Allred Park Place office park in Chandler–a 69,000-square-foot speculative office building.

The development, which broke ground in August, is the second spec building launched at the office park by Douglas Allred Co. this year, according to the Phoenix Business Journal. Allred previously broke ground on a 92,109-square-foot office building, which has since been leased to Infusionsoft and is scheduled for completion by the end of the year, the Business Journal reported.

Leasing for the latest project will be handled by Mark Krison and Scott German of CBRE Group Inc., Arizona Commercial Real Estate reported.  Mesa-based Willmeng Construction is serving as general contractor for both new buildings, which were designed by Phoenix-based Balmer Architectural Group.

Allred Park Place currrently consists of four Class A office buildings, totaling nearly 354,000 square feet, with an occupancy rate of 90 percent. Allred’s plan could eventually expand the business park’s footprint to upwards of 1 million square feet.

A recent report from Marcus & Millichap Real Estate Investment Services Inc. shows that a shortage of large, contiguous blocks of Class A space in Greater Phoenix has prompted developers to break ground on high-end projects totaling 540,000 square feet, including the two projects under way at Allred Park Place.

As illustrated by the chart at left, Marcus & Millichap projects that by the end of the year, metro Phoenix’s office market will gain 200,000 square feet of new product, which will boost inventory by 0.3 percent.

Photo courtesy of CBRE Group Inc.

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.

Weidner Adds Chandler Complex to Growing Arizona Portfolio

By Camelia Bulea, Associate Editor

In a $27.3 million deal, an affiliate of Weidner Apartment Homes has acquired Dobson Towne Centre, a 240-unit luxury apartment property in Chandler. CBRE Group Inc. represented Weidner in the transaction, which was financed with a $20.7 million Fannie Mae loan.

The property previously traded in 2005, when it was acquired for $23.8 million by Archon Group L.P., an investment management company affiliated with Goldman Sachs & Co., Business Real Estate Weekly of Arizona reported.

The 11-year-old gated complex features:

• two swimming pools and spas with outdoor Wi-Fi service
• a designer clubhouse with a culinary station
• a 24-hour fitness facility and business center

Units include full-size washers and dryers, fully-appointed kitchens, built-in computer desks and walk-in closets. At the time of the sale, Dobson Towne Centre had an occupancy rate of 93 percent, according to the Phoenix Business Journal.

The Chandler property is among the 27 assets and nearly 8,000 units that Kirkland, Wash.-based Weidner has acquired in Arizona since entering the market in March 2010. This month Weidner is scheduled to close on a 256-unit property in Mesa.

All told, 20 of Weidner’s assets in the state are located in the Phoenix metropolitan area; the Tucson market accounts for the remainder. Weidner also owns properties in Washington, Alaska, Colorado, Texas and western Canada.

Photo rendering of the Dobson Towne Center apartments, courtesy of www.Rentmint.com

$52M Student Housing Project Given Name: Roosevelt Point

By Camelia Bulea, Associate Editor

A $52 million student housing project in downtown Phoenix got two major boosts a week ago. Six months after it broke ground, the project finally has a name: Roosevelt Point. Another event that propelled the project even further was an official announcement by its developer – Concorde Eastridge Inc. – according to which a temporary leasing office will open in early October at Arizona Center.

The project is planned to include a residential building on each of the two separate blocks, standing at seven to eight stories each and containing approximately 325 dwelling units, common areas, approximately 8,000 square feet of grade-level mixed-use/retail, a five-level parking garage with approximately 400 stalls, on-grade pool areas and additional tenant amenities, according to a statement from Concord Eastridge.

The Phoenix Business Journal reported that earlier this year the developer became the minority owner of the project when EdR, one of the largest U.S. owners and developers of student housing, signed an agreement to act as the majority owner. EdR not only owns an 80 percent interest but will also manage the community.

Through a Phoenix city council government property lease excise tax , the owners of the development are exempt from paying property taxes at the site for the next 25 years. In exchange, the project will provide a significant number of high-quality for-rent housing units in downtown Phoenix, a primary objective of the city’s Downtown Master Plan. Additionally, the project is expected to generate even further development in the downtown area.

Expected to be completed by next summer, the rental project has been under construction since February 2012.

Photo rendering of the Roosevelt Point project, courtesy of Concorde Eastridge

Agua Caliente, World’s Largest Solar Plant, Hits Milestone

By Camelia Bulea, Associate Editor

The Agua Caliente solar project—the world’s largest photovoltaic power plant currently in operation—has achieved 250 megawatts of grid-connected power out of a total capacity of 290 megawatts.

Built by First Solar Inc. on a 2,400 acre-site between Yuma and Phoenix, the plant started operation in January, when it generated its first 30 megawatts. It surpassed 100 megawatts this spring and 200 megawatts this summer, according to First Solar.

The project is expected to reach full capacity in 2014, when it will generate enough power to serve more than 225,000 homes. NRG Solar, the plant’s owner, said that the plant is creating upward of 400 jobs during construction. NRG acquired Agua Caliente from First Solar, and then brought in MidAmerican Solar as a minority owner, according to the Phoenix Business Journal.

Pacific Gas and Electric Co. signed a 25-year deal to buy electricity from the plant. Over that period, the Agua Caliente project will displace 5.5 million metric tons of carbon dioxide—the equivalent of taking more than 40,000 cars off the road annually.

Other photovoltaic projects in Arizona’s pipeline include Hyder II Solar Power Plant, a 14-megawatt solar plant that will be built in Hyder. McCarthy Building Cos and Arizona Public Service (APS) have started the permitting process for the facility, which will generate enough energy to power more than 3,500 Arizona homes when it reaches capacity in late 2013. Hyder II is part of the AZ Sun Program, APS’ plan to bring 200 megawatts of solar power on line by 2015.  APS estimates that the facility will create 150 jobs.

Photo credits: NRG Solar

Shea Homes to deliver 250 homes at Johnson Ranch

By Camelia Bulea, Associate Editor

 In July, builders nationwide sold new homes at an annualized rate of 372,000, a 3.6 percent gain compared to the 360,000 sold in June and a year-over-year increase of 25.3 percent, according to the U.S. Census Bureau. The report, quoted byCNNMoney, states that existing home sales rose 2.6 percent in July and adds that building permit issuance also increased.

In response to metropolitan Phoenix’s share of that rising demand, Shea Homes expects to break ground this year on 248 new homes within the Johnson Ranch master-planned community, the Phoenix Business Journal reports. The homes would add to those that the California-based developer has delivered this year in Buckeye, Chandler, Gilbert, Litchfield Park and Peoria.

Located in San Tan Valley, The Ridgeview will include 113 new homes ranging in size from 1,500 to 2,468 square feet. Sizes in the 135-home Hideaway development will vary between 1,831 and 2,690 square feet.

Developed by Sunbelt Holdings, Johnson Ranch incorporates retail and office components as well as an 18-hole championship golf course. In addition to Shea, which will deliver about 250 out of the 6,100 units planned, participating include Calex Homes, Centex Homes, Continental Homes and Richmond American Homes.

Photo rendering of The Belize home at Hideaway, courtesy of Shea Homes

$90M Amazon Buy is Latest in Industrial REIT’s Local Spree

By Camelia Bulea, Associate Editor

Denver-based Industrial Income Trust Inc. acquired a 1.26-million-square-foot Amazon distribution facility in a $90.3 million deal, the Phoenix Business Journal reported. At $71.25 per square foot, the price is the highest ever commanded by a spec industrial building in the metropolitan Phoenix market, Cushman & Wakefield Inc. told the Business Journal.

One of four Amazon facilities in the Valley, the warehouse at 75^th Ave. and Van Buren St. in southwest Phoenix is fully leased by the online retailer for 10 years. Falcon 7X Inc., a venture formed by Buzz Oates Enterprises Arizona in Phoenix, was the seller. Cushman & Wakefield’s Bo Mills and Mark Detmer arranged the cash transaction.

Counting the most recent purchase, Industrial Income Trust’s local investment totals $237 million and 3.15 million square feet. In the second quarter, the trust made two other major deals in the area,  Business Real Estate Weekly of Arizona reported.

• In May, Industrial Income Trust paid $131.6 million to purchase 1.6 million square feet of warehouse space in two distribution buildings within the Riverside Industrial Center in Phoenix, making its first Valley investment. KTR Capital Partners LP was the seller.
• In June, the company purchased 302,640-square-foot Tolleson Distribution Center at 9704 W Roosevelt St. in Tolleson for $15.2 million. Prologis was the seller.

Photo courtesy of CoStar

Intel Corp. Adds $300M R&D Facility at Chandler Campus

By Camelia Bulea, Associate Editor

Intel Corp. is investing $300 million in a new research-and-development facility at its campus in south Chandler, thus further expanding its footprint in the city where it has had a presence since 1979.

The facility is currently under construction at the technology giant’s Ocotillo campus. AZCentral.com reports that the project will give a significant boost to the area’s economy, creating several hundred highly skilled permanent jobs and another 1,000 jobs during construction.

Scheduled for completion in the second half of 2013, the 285,000-square-foot research facility will be Intel’s third facility in Chandler. The building is a candidate for LEED certification by the U.S. Green Building Council.

The new facility represents Intel’s large and growing footprint in Chandler. At the Ocotillo campus, it is also building one of the world’s biggest construction projects, a $5.2 billion microchip fabrication plant, according to PCmag.com. Dubbed Fab 42, the plant will be the world’s most advanced high-volume chip-making plant upon completion next year, according to AZCentral.com.

Intel employs some 9,400 workers in Chandler, its second-largest campus, and generates an estimated $2.4 billion in economic activity annually for the area.

Image by Flickr user cks2k2

JPMorgan Sells Luxury M-F Asset in Ahwatukee for $61M

By Camelia Bulea, Associate Editor

Chicago-based Waterton Associates L.L.C. paid $61.3 million to acquire Andante Apartments, a 576-unit luxury apartment community in Ahwatukee. The price is the second-highest commanded by a multi-family asset in metropolitan Phoenix this year, bested only by the $68.8 million paid for the San Melia Apartments about a half-mile north of Andante, CoStar reported.

CBRE Group Inc.’s Phoenix office arranged the sale, Arizona Commercial Real Estate reported. Fannie Mae provided financing. JP Morgan Real Estate, the complex’s seller, had acquired the property in 2005 for close to  $59 million, according to the Phoenix Business Journal.

Built in two phases in 1999 and 2001, the property was 94 percent occupied at the time of the sale. Andante offers seven different floor plans, large living areas, nine-foot ceilings, Roman tubs and full-size washers and dryers. The complex’s amenities include three resort-style swimming pools, a clubhouse, a 24-hour fitness center, a business center and a dog park.

 Marcus & Millichap Real Estate Investment Services Inc. projects that sales in the Phoenix metro apartment market will remain steady in the coming months as owners capitalize on the low interest-rate environment and sell infill properties with good cash flow and high occupancy levels.

Demand will remain intense for these assets, as yield-driven buyers re-enter the market to acquire complexes providing long-term stability. Meanwhile, investors with an established presence in the Valley will diversify their holdings and target mid-tier properties with a value-add component, according to Marcus & Millichap.

Charts courtesy of Marcus & Millichap Real Estate Investment Services Inc.

Crow Holdings Buys N. Scottsdale Center for $38M

By Camelia Bulea, Associate Editor

Dallas-based Crow Holdings Capital Partners L.L.C has acquired Scottsdale Horizon, a 154,766-square-foot neighborhood retail center, in an all-cash transaction valued at $38 million.

The buyer is a separate fund of Crow Holdings, a private wealth management entity affiliated with the estate of the late Trammell Crow, according to the Phoenix Business Journal. For Crow Holdings, the acquisition is the first in the Valley. The seller was Hart Realty Advisers, an investment management firm based in Simsbury, Conn.

Located in North Scottsdale, the 13-year-old center is anchored by brands like Safeway, Bank of America, Chase and CVS. Scottsdale Horizon was 95 percent leased at the time of the sale. Cassidy Turley BRE Commercial represented the seller. Torrey Briegel and Cameron Warren of Phoenix Commercial Advisors assisted on the deal and will retain the leasing assignment for the property.

Buoyed by one of the nation’s top-performing job markets, metropolitan Phoenix’s retail market is expected to strengthen further in 2012, according to projections by Marcus & Millichap Real Estate Investment Services Inc. By the end of the year, vacancy in the area will decline to 11.2 percent, a 70 basis-point improvement compared to 2011. That would mark an even bigger uptick in occupancy from last year, when vacancy declined 30 basis points.

Photo courtesy of Weingarten Realty

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.

Mayo Clinic Marks Milestone With Innovative Projects

By Camelia Bulea, Associate Editor

The Mayo Clinic is building a $182 million proton-beam therapy center adjacent to its Phoenix hospital. The first treatment rooms are expected to open by 2016, followed by additional rooms the next year. Additionally, the non-profit clinic plans to add a medical-school branch campus in Scottsdale in 2015, according to AZCentral.com. Each project will create about 500 construction jobs.

The 100,000-square-foot proton-beam therapy facility will be the first of its kind in the Southwest and one of only 10 in the entire country. It is expected to give a major boost to the Mayo Clinic’s Phoenix campus and to the area’s healthcare industry.

The Mayo Clinic broke ground on the facility in December of 2011. Scottsdale-based Hunt Construction Group is the general contractor and AECOM of Minneapolis is the architect for the project, according to ENR Southwest.

The publication adds that the new proton-beam therapy program employs intensity modulated proton therapy, a technology that uses pencil-beam scanning. Proton-beam therapy is far more precise than conventional radiation treatment in destroying cancerous cells without damaging surrounding healthy tissue, said Dr. Wyatt Decker, vice president & chief executive for the Mayo Clinic in Arizona, reported AZCentral.com.

Funding for the project will come from the Mayo Clinic’s capital budget and donations. During the past 25 years, the institution has grown its Arizona staff to 470 physicians and scientists, along with almost 5,000 additional employees, on campuses in Phoenix and Scottsdale.

Architect’s rendering of the new proton-beam therapy facility courtesy of the Mayo Clinic

Mesa Breaks Ground on $99M Chicago Cubs Ballpark

By Camelia Bulea, Associate Editor

Construction of the $99 million baseball park in Mesa that will be the spring training home of the Chicago Cubs officially kicked off July 11 with a groundbreaking ceremony hosted by city leaders and officials of the Major League Baseball team. Located on Dobson Rd. just south of the Loop 202, the ballpark is scheduled to be completed in 2014, according to abc15.com.

The city will spend $84 million for the stadium and $15 million for associated infrastructure, which consists of enlarging and moving the lake at next-door Riverview Park, as well as other park upgrades, AZCentral reported. Mesa has a 30-year agreement with the Cubs and a 20-year option.

The 15,000-seat stadium will feature luxury suites, an outdoor plaza, a playground and event space for year-round activities. The new stadium could also be the new home of the Arizona State University baseball program, even though AZCentral reported as recently as last month that the college and the baseball team were at loggerheads.  ASU officials complained at the time that the Cubs were “erratic” and “not people of their word.”  Under the proposed deal, ASU would spend $2 million for a clubhouse and practice facilities in Mesa and would use the stadium from February to late spring.

City funding for the project was approved by voters in 2010 after the state legislature declined to approve financial backing. Mesa also felt pressure to build a stadium after Florida business interests approached the Cubs about moving their spring training complex there, AZCentral added.

Photo credits: www.facebook.com/kjzzphoenix

Angelo, Gordon and Slavin Pay $43M for Multi-Family Asset

By Alex Girda, Associate Editor

In a $42.5 million deal, Angelo, Gordon & Co. L.P. and its partner, Slavin Multifamily Advisors LLC, have acquired  Villa Salerno Apartments in Northeast Phoenix from an affiliate of Colony Realty Partners, the Phoenix Business Journal reported.

Constructed in 1996 by Mark-Taylor Development, the 412-unit Villa Salerno complex had been under the ownership of Boston-based Colony Realty for about four years. Angelo, Gordon and Slavin Multifamily assumed a $25 million loan from Freddie Mac as part of the transaction. Buyer equity and a new $3.4 million loan from Freddie Mac make up the rest of the financing package.

Angelo, Gordon and Slavin previously teamed up in Phoenix to buy the Boulevard Apartments, a 294-unit complex acquired by the joint venture in 2010. On its own, Angelo, Gordon recently acquired the U.S. Bank Center in Downtown Phoenix, Arizona’s second tallest building. The New York City-based hedge fund bought the property at auction in May for a discounted price of $36 million.

Globe Buys Chandler Property; MainSpring Sells Tempe Trio

By Alex Girda, Associate Editor

Scottsdale-based investment and private equity firm Globe Corp. is the new owner of a Chandler industrial property that it has acquired from Milgard Manufacturing Inc. in a $7.6 million deal, The Phoenix Business Journal reports. The building is part of the Westech Corporate Center near Arizona Avenue.

Tacoma, Wash.-based Milgard, a window and door manufacturer and the property’s original owner, has used it as a manufacturing and distribution center since its completion in 2005. Globe Corp. hopes to quickly lease the 164,000-square-foot Class A building, which is located on a 16.5-acre parcel. The property will become available in about 90 days when a temporary lease expires.

In other news, Maricopa Community Colleges paid $1.9 million for three office buildings in Tempe, the Business Journal reported. Located in the Airway Corporate Center, the buildings total 23,900 square feet of space. The seller, Bel de Mar L.L.C., is an affiliate of MainSpring Capital Group, a Scottsdale-based real estate investment and development firm. MainSpring operates about 1.5 million square feet of office and industrial space and owns 900 acres of developable land, mainly in the Phoenix metropolitan area.

Photo courtesy of loopnet.com

Lincoln Inks 164,000 SF of Leases at Mesa Business Park

By Alex Girda, Associate Editor

Lincoln Property Co. recently completed 164,000 square feet in new leases and renewals at its Broadway 101 Commerce Park in Mesa. The firm has completed a new deal with PODS, an international moving and storage company, for 67,949 square feet at the complex at 2160 West Broadway Road.

PODS will be occupying the last shell distribution facility available iat the property, along with another new tenant, Mitel Networks. The global provider of business communications and collaboration software and services signed for 38,157 square feet.

Lincoln, which self-manages the properties, was aided by Cassidy Turley in a pair of other renewals. Accu-Tech and Superior Pool Products have renewed leases totaling 57,880 square feet.

Developed by Lincoln in partnership with RREEF Real Estate, Broadway 101 Commerce Park is a 52-acre master-planned project located southeast of the freeway interchange between Loops 101 and 202. It offers 808,000 square feet of manufacturing, warehouse/distribution and office space distributed among 11 buildings. The tenant roster includes such names as Boeing/Aviall, Inc., World Wide Technology, Inc., Ulthera, Inc., Dragonfire Racing, PCT International, Siemens and NAPA Auto Parts.

Photo courtesy of broadway101commercepark.com

Arcadia Complex Hits Market; Held Takes Chandler Asset

By Alex Girda, Associate Editor

Arcadia Cove, a multi-family asset near the Phoenix Gateway Center and the upscale Arcadia neighborhood, has come to market with an asking price of $47.25 million, rentv.com reported. Located at 2522 North 44th Street, the 432-unit residential community was built in 1996 by Picerne Real Estate Group and features units with one-, two- and three-bedroom floor plans.

The units offer fully equipped kitchens, washer/dryer units and walk-in closets. Some  apartments feature vaulted ceilings, wood-burning fireplaces and wood-style flooring. Resident amenities include a stand-alone clubhouse, a fitness center open around the clock, controlled-access gated entry, two swimming pools, two spas, common areas featuring free Wi-Fi, barbecue stations, reserved parking facilities and private storage units.

In other investment news, Held Properties Inc. acquired the Chandler Office  Center for $9.9 million. Located north of Loop 202 near  Loop 101 and Interstate 10, the  67,600-square foot property was sold by Corporate Center Investments. A team from Cushman and Wakefield Inc. that included Chris Toci, Chad Littell, Karsten Peterson and Dave Seegar arranged the transaction.

Photo courtesy of city-data.com

Hotel Palomar Opens, Boosts Downtown Convention Market

By Alex Girda, Associate Editor

The two-block CityScape development has been completed with the grand opening of the $90 million Hotel Palomar Phoenix. Developed by RED Development and operated by Kimpton Hotels & Restaurants, the 242-key boutique hotel is part of the retail and office development at Central Avenue and Jefferson Street.

Hotel capacity in the city may finally be on its way to catching up with the $600 million expansion of the Phoenix Convention Center to 2 million square feet, a project that was completed in 2008. Downtown Phoenix’s hospitality market has now amassed nearly 3,000 rooms, the Arizona Republic reported.

 City officials estimate that a critical mass of 4000 hotel rooms Downtown would enable Phoenix to start attracting large conventions. With the 2015 Super Bowl on the horizon, the city is looking to beef up entertainment venues and hotel options.

Hotel Palomar Phoenix offers 10,000 square feet of meeting space, part of which is a chandeliered ballroom. Amenities include 24-hour in-room dining, ADA-compliant accessibility, a daily hosted evening wine hour, pool and open- air lounge, airport car service, 24-hour business center, concierge service, and valet parking.

Image courtesy of hotelpalomar-phoenix.com

North Scottsdale’s First Green Building Commands $79M

By Alex Girda, Associate Editor

Canadian players are joining the ranks of institutional investors finding opportunities in metropolitan Phoenix. Artis Real Estate Investment Trust has acquired MAX at Kierland, a 258,912-square foot, Class A office building in North Scottsdale. The Winnipeg, Manitoba-based REIT paid $79 million for the six-story building, which it acquired from a joint venture of Clarion Partners and Trammell Crow Co.

Completed in 2008, MAX at Kierland was the first building in North Scottsdale to earn LEED Core & Shell certification. The owners tout such advantages as prominent signage of Scottsdale Rd., easy access to Loop 101, nearby high-end executive housing, and the local presence of more than 75 national and regional corporations.

When the sale closed, the property was 90 percent occupied by such tenants as Universal Technical Institute, APL Limited, Willis of Arizona Inc., Ameriprise Financial and Ryan Inc. A four-person team from CBRE Group Inc.’s Phoenix and Los Angeles offices arranged the transaction

Image courtesy of  maxatkierland.com