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Consolidated Investment Group Buys Student Housing Property in Tempe for $38.7M

19 Jul 2014, 4:25 am

By Liviu Oltean, Associate Editor

Denver-based Consolidated Investment Group (CIG) recently announced the $38.7 million acquisition and planned refurbishment of a 225-unit, 640-bedroom student housing property located near Arizona State University in Tempe. Renamed Regents on University, the property formerly known as Block 1949 will be renovated before the beginning of the new school year.

Regents on University

As reported by the Business Real Estate Weekly of Arizona, the acquisition was made by three tenant-in-common entities. Two of them, Regents Tempe RE L.L.C. and Regents Tempe RE II L.L.C. were sponsored by CIG.  The former paid $21.38 million for 5 percent ownership interest, while the latter paid $11.5 million for an approximately 30 percent stake.

The third entity, CWS 1949 L.L.C, formed by CWS Capital Partners LLC acquired the remaining interest for $5.8 million. The seller, Block 1949 LLC, was assisted in the transaction by Hanover Street Capital, an advisor to Deutsche Bank, while John Cunningham and Charles Steele of Jones Lang LaSalle in Phoenix served as brokers.

“This property presents a unique opportunity for us to add value through improved management, capital improvements, and a complete re-branding of the building,” said CIG’s Vice President of Real Estate, Tim Bertoch. “We are focused on immediately implementing our improvement plan which will establish Regents on University as one of the premier student living experiences in Tempe.”

The company’s renovation plan includes new pool furniture with a full outdoor kitchen/bar area, a new game room, an added study room with new computer and printing stations, a community fire pit with seating area and the addition of a new fitness  room.

Photo Courtesy of Consolidated Investment Group

Buchanan Street Buys Stapley Corporate Center in Mesa for $33M

13 Jul 2014, 3:24 pm

By Liviu Oltean, Associate Editor

Buchanan Street Partners recently acquired Stapley Corporate Center, a two-building, Class A office property in Mesa. Located at 1840 and 1910 South Stapley Drive, the asset was purchased for $32.5 million from The DESCO Group, Inc.,  the buildings’ developer.

The Stapley Corporate Center

Totaling 181,934 square feet, the center is 90 percent occupied by such tenants as Cigna Healthcare and Wells Fargo. The transaction was brokered by Chris Toci and Chad Little of Cushman & Wakefield  Inc., while Mark Gustin of JLL Inc. will continue to handle leasing.

Amenities include close proximity to Sky Harbor International Airport and more than 2 million square feet of retail within a quarter of a mile.

“This property will continue to attract top tenants seeking high-image office space in the East Valley, based both upon the quality of the building and the continued Phoenix recovery,” said Brian Payne, a Buchanan Street vice president, in a statement.

Buchanan Street’s most recent acquisition increases its Phoenix holdings to more than 1.4 million square feet. As part of its value-added investment strategy, this year the company has also acquired Mesa Corporate Center, a 106,077-square-foot office building in Mesa, and Vue Park West, a 260-unit luxury apartment community in Peoria .

Image Courtesy of Buchanan Street Partners 

Glendale Office Complex Trades for $9M; Pacific Realty Advisors Plans Industrial Project in Mesa

8 Jul 2014, 4:03 pm

By Liviu Oltean, Associate Editor

In a $9.1 million deal, Select Healthcare Solutions L.L.C., Phoenix Cyberknife and Radiation Oncology Center L.L.C. have acquired Zanjero Falls, a 147,405-square-foot Class A office property at 7410 N. Zanjero Blvd. in Glendale. The sale and purchase agreement includes about 10 developable acres.

Completed in 2008 but never occupied, Zanjero Falls comprises a one-story and three-story office building. Distinctive design elements include Spanish Colonial architecture, Cantera stone and wrought iron, resort-style landscaping with synthetic turf and a signature water feature and bridge at the main entrance.

“The sale of Zanjero Falls to Select Healthcare Solutions and Phoenix Cyberknife is an indication we are continuing to see improvement in the West Valley office market,” said Cassidy Turley Senior Managing Director Steve Lindley in a statement. The transaction was arranged by a Cassidy Turley capital markets team that included Lindley and fellow Senior Managing Directors Bob Buckley and Tracy Cartledge; Executive Managing Director Eric Wichterman; and Senior Vice President Mike Coover. TJ Zaharis of COBE Real Estate represented the seller, RCFC Zanjero Falls.

In local development news, Pacific Realty Advisors will break ground this year on a 211,505-square-foot industrial project in Mesa, according to a statement from Cassidy Turley. Situated at the northwest corner of Broadway and Dobson roads, the project will consist of a 147,670-square-foot warehouse and distribution building and a 63,835-square-foot general industrial building. The former will have 32-foot clear height with 28 dock- and five grade-level doors, while the latter will have 26-foot clear height with 10 truck-well- and 12 grade-level doors.

“Clearly, there is major demand for this product type in the Southeast Valley,” said Cassidy Turley Executive Managing Director Andy Markham. “This location is also ideal for distribution and general industrial given its proximity to three major freeways and deep employment base.”

Photo Courtesy of Cassidy Turley

UMOM Details Plans for Affordable Housing Project in Sunnyslope

30 Jun 2014, 4:46 pm

By Liviu Oltean, Associate Editor

A new affordable housing project is coming to the Sunnyslope neighborhood of Phoenix through the efforts of UMOM New Day Centers and the financial support of the Arizona Department of Housing (ADOH) and The Bob & Renee Parsons Foundation. On June 6, ADOH granted UMOM $9.4 million in financing for the project, followed by The Bob & Renee Parsons Foundation with a $3 million donation.

The financing will allow UMOM to break ground in early 2015 and complete the project by the fall. In addition, the $12.4 million will also finance a 5,500 square foot community service center, which will provide job search assistance, GED tutoring and wellness programs.

Darlene Newsom, CEO

“The financing from the Arizona Department of Housing and funding from The Bob and Renee Parsons Foundation will allow UMOM to continue toward our goal of providing every family in need with an affordable place to live,” said UMOM CEO Darlene Newsom. “The additional housing units will go a long way to support the ever growing need for affordable housing in our community.”

In 2011, UMOM purchased North Mountain Lodge Motel in the Sunnyslope area. The dilapidated motel will be demolished to make way for UMOM’s affordable housing project, which will offer one-, two- and three bedroom units. At least 34 will be designated for chronically homeless individuals and families, with preference given to veterans.

“The idea of standing idle while a wait list for affordable housing grows is simply not an option,” said Bob Parsons, founder of Scottsdale-based GoDaddy. “There are families in this community who need a leg-up and a second chance at becoming first-class citizens. Renee and I have every intention to help make a long-term difference in the fight to end homelessness in the greater Phoenix area, and we believe that UMOM’s new housing community is a great next step.”

Equus Capital Partners Takes 2 Scottsdale Office Buildings for $44M

21 Jun 2014, 6:13 pm

By Liviu Oltean, Associate Editor

Equus Capital Partners, Ltd. recently expanded  its Scottsdale footprint with the  acquisition of two Class A office properties for $44.14 million,  92 Mountain View and Scottsdale Gateway I.  Totaling 223,131 square feet of space, the two-story buildings had a 96 percent occupancy rate under the previous ownership of TR Scottsdale Gateway I and TR Mountain View Corporation.

According to data from PropertyShark.com, Scottsdale Gateway I was built in 1997 and encompasses roughly 107,000 square feet. Its tenants include Matrix Medical Network, Grand Canyon University, Scottsdale Healthcare Rehabilitation Center, SimonMed Imaging and Q Vision. Also completed in 1997, 92 Mountain View encompasses 116,200 square feet and is fully leased to CVS Caremark.

The acquisition is Equus Capital’s  third in Scottsdale. In  2008, the company purchased Scottsdale Financial Center I, a  106,000-square-foot office project, on behalf of BPG Investment Partnership VIII L.P. Four years later, it acquired the Lincoln Towne Centre for $34.3 million (or about $153 per square foot).

“We are pleased to add these two well-leased, Class A office properties to our existing Scottsdale portfolio,”  said Jonathan Praw, vice president & head of Equss Capital’s west coast regional office, in a statement. “This investment presents the opportunity to acquire institutional grade assets at an attractive basis in a strong infill location.”


Habitat Metro, Sunbelt Holdings to Break Ground on $75M Downtown Condo Project

13 Jun 2014, 7:42 pm

By Amalia Otet, Associate Editor

As the economy picks up,  homebuyers across the Valley are increasingly opting for downtown living. An influx of new residents is seeking walkability and easy access to mass transit, as well as proximity to jobs, cultural venues, retail and entertainment destinations.

In response, developers are picking up the pace of condominium development in downtown Phoenix. No fewer than four projects are in the pipeline, according to The Republic. Habitat Metro, in a joint venture with Scottsdale-based Sunbelt Holdings, plans to break ground by the end of the year on Portland Park, an 170-unit mixed-use development in downtown Phoenix.

Designed by DAVIS Architecture, the infill project bears a $75 million price tag, as the Phoenix Business Journal reports.

To be located on the north side of Portland Street between First and Third avenues, adjacent to Margaret T. Hance Park, the complex will consist of three buildings varying from four to 14 stories. Units will range in size from 745 square feet to 2,381 square feet. Prices are expected to range from the low $200,000s to about $1 million.

In addition to the residential component, Portland Park will include commercial space on the first floor. The community will also feature bike storage and car charging stations. Completion is set for 2016.

The luxury development is the second phase of Portland Place (pictured at right), which was launched in July 2007. The first phase received the Arizona Real Estate Magazine RED Award for Best Multifamily Project in 2008, and the Pacific Coast Builder’s Conference 2008 Gold Nugget Award Best Mid Rise Attached Housing Project.

Meanwhile, California Capital Real Estate Advisors, Inc. has acquired Northwest Gardens Apartments, a 198-unit multi-family community in Peoria, for $9 million, or $45,480 per unit. According to CALCAP Advisors, the complex was an REO property that Fannie Mae acquired in 2012 with an original loan balance of slightly less than $10.2 million. Owen Loan Servicing handled the sale for Fannie Mae.

“Northwest Gardens last sold in 2007 for $14,150,000. We feel confident that our purchase price is attractive relative to its past sales history, as well as against similar properties in the Peoria/Glendale submarket,” stated Pat Wakeman, Principal of CALCAP Advisors.

The company plans to add value by implementing upgrades, including exterior painting to enhance curb appeal, installing attractive drought-tolerant landscaping, remodeling the clubhouse and adding a fitness center.

Photo credit: Habitat Metro, LLC

March 2015 Debut Planned for 180-Key Sheraton Next to Cubs Complex in Mesa

8 Jun 2014, 3:34 am

By Amalia Otet, Associate Editor

Starwood Hotels & Resorts Worldwide Inc. plans to open a 180-key Sheraton in Mesa, adjacent to the Chicago Cubs’ new spring training ballpark. Owned and developed by River View Hotel, L.L.C. and operated by Power Hotels, L.L.C., the Sheraton Mesa Hotel is scheduled to open in March 2015. The hotel will be Starwood’s first property in Mesa and the sixth Sheraton in metropolitan Phoenix.

The hotel will be located near Cubs Park at Wrigleyville West, the team’s brand-new, 15,000-seat stadium. While catering to sports travelers and baseball fans, the hotel will also aim to meet the demand for high-quality lodging and conference space. “We look forward to offering Cubs fans and travelers a stylish, comfortable atmosphere where they can make connections and enjoy all the brand’s signature amenities and services,” said Hoyt Harper, global brand leader for Sheraton Hotels & Resorts.

The Sheraton Mesa will offer more than 30,000 square feet of indoor and outdoor meeting and function space. Guest room amenities will include an oversized desk, high-speed Internet, a 42-inch flat-panel television and the all-white Sheraton Sweet Sleeper bed, designed to meet AAA’s Five Diamond Award criteria.

Hotel amenities include two full-service restaurants, indoor and outdoor bars, a resort-style outdoor swimming pool, a fitness facility, and Link@Sheraton, a casual lobby space providing complimentary wireless broadband service. The hotel will be walking distance from the Mesa Riverview shopping center and minutes from Phoenix Sky Harbor International Airport, the Mesa Convention Center and Arizona State University.

The new Sheraton hotel is part of the Riverview redevelopment project, which spans 170 acres and will provide venues for sports, recreational, cultural, and public events.

Link@Sheraton at Sheraton Chicago O’Hare via Sheraton Hotels & Resorts Facebook Page

KBS Acquires Camelback Corridor Office Complex for $85M

31 May 2014, 6:12 pm

By Amalia Otet, Associate Editor

In an $85.1 million deal, KBS Real Estate Investment Trust III of Newport Beach, Calif., has acquired Anchor Centre, a 333,284-square-foot office complex in Phoenix’s Camelback Corridor submarket.

The seller was an entity owned by Angelo Gordon and DW Capital. According to The Republic, the deal is the priciest office sale in the Valley in at least two years.

Located near the southwest corner of 24th Street and Camelback Road on a 7.3-acre tract, Anchor Centre consists of one six-story building and one four-story building, plus an underground parking structure that links the two.

A $10 million renovation in 2011 and 2012 added a modernized entry, visitor parking with direct access to Camelback Road, a outdoor common area with a central water feature, shaded outdoor seating and wireless internet access. Additionally, the complex features a fitness center, on-site conference room and the Gladley, a white- tablecloth restaurant.

Anchor Centre was 79 percent leased at the time of closing. The building’s largest tenant is health-insurance provider Humana, which occupies 71,221 square feet.

The buyer was attracted by Anchor Centre’s location along the top-performing Camelback Corridor submarket. KBS plans additional upgrades to add value and keep the property competitive.

“Because of its amenity package, walkable amenities, nearby hotels and its 24th Street and Camelback location in the Camelback Corridor, we believe Anchor Centre is an exceptional asset that combines everything KBS REIT III pursues in a new acquisition,” said KBS Capital Advisors West Region President Rodney Richerson in a statement. KBS Capital Advisors is KBS REIT III’s external adviser and is an affiliate of KBS Realty Advisors, an SEC-registered investment adviser.

One other Phoenix-area asset is owned by a KBS affiliate: the 445,957-square-foot Fountainhead Office Plaza, a two-building, Class A office complex in Tempe. Located in the 140-acre Fountainhead Corporate Park, that complex is owned by KBS REIT II.

Image courtesy of KBS Capital Advisors via Business Wire

Bob Parsons Entity Acquires Infill M-U Property in Tempe for $26.5M

24 May 2014, 2:24 am

By Amalia Otet, Associate Editor

Mill Avenue Office L.L.C., an entity owned by GoDaddy founder Bob Parsons, has acquired Hayden Station, a 107,508-square-foot office and retail development in Tempe, for $26.5 million (or $246.49 per square foot). The seller was Holualoa Cos. of  Tucson.

Bob Buckley,Tracy Cartledge and Steve Lindley, all senior managing directors with Cassidy Turley’s capital markets group, joined Jeff Hartland, Scott Boardman, Trevor Klinkhamer and Brent Mallonee of the firm’s office and retail team in arranging the transaction for the buyer and seller.

“Urban infill properties in true walkable, 24/7 locations are generating exceptional investor interest,” said Lindley. “We were able to take advantage of this interest with Hayden Station’s Mill Avenue address in downtown Tempe right at the light rail station.”

Formerly known as Hayden Square, the property is located on the southwest corner of Mill Avenue and 3rd Street, near a variety of shopping and dining destinations as well as Arizona State University. It comprises five buildings: 310, 350, 404 and 410 S. Mill Avenue and 51 W. 3rd Street. The four Mill Avenue buildings range in size from 5,642 to 9,548 square feet. The 3rd Street building is a five-story, 74,307 square-foot multi-tenant office building with views of Tempe Town Lake.

The project was 97 percent leased at the time of the sale to such tenants as The Tavern on Mill, Pop Health Man, Logan Simpson Design, NCounter, Mojo Yogurt, Moonshine Whiskey Bar and Downtown Tempe Community, Inc. “Hayden Station has had a history of maintaining high occupancy, even during the recent downturn,” observed Stan Shafer, COO of Holualoa Cos.

According to Cassidy Turley, Downtown Tempe is one of the Phoenix metro’s strongest office markets.During the first quarter, the Tempe North submarket recorded the lowest overall vacancy in the Valley at 8.4 percent. The acquisition brings Parsons’ holdings in metro Phoenix to more than 760,000 square feet. The firm’s local properties include Centerpoint on Mill, Tempe Town Center, Arrowhead Professional Center, Il Palazzo Center, Citadelle Center, The Shoppes at Legacy House, Grayhawk Plaza and McDowell Mountain Marketplace.

Image courtesy of YAM Properties via PRWeb

Standard Pacific Launches New Community in Phoenix; Broadstone Camelback Awarded LEED Platinum

18 May 2014, 5:14 am

By Amalia Otet, Associate Editor

California homebuilder Standard Pacific Homes has officially launched its newest gated community in Phoenix.

Dubbed The Enclave at Blossom Hills, the development is situated at the base of South Mountain Park and minutes away from downtown Phoenix, providing residents with convenient access to the area’s best employment, dining and entertainment options. Sky Harbor International Airport and downtown Tempe are also just short drives away.

The neighborhood features eight brand-new home designs specifically tailored to meet the needs of today’s most discerning home shoppers.

Homes range from approximately 2,900 to 4,350 square feet and contain as many as five bedrooms and four-and-a-half baths. Among a series of contemporary design elements, the properties showcase flexible living spaces, gourmet kitchens, generous bedroom counts, spa-like master suites, large outdoor covered living areas, as well as plenty of storage space in both single- and two-story plans. Additionally, homes may include an optional front casita, an office or even a puppy wash station.

The exterior styles of the homes are inspired from the architectural marvels of the Southwest, offering Hacienda Ranch, Spanish Colonial and European Cottage elevations.

Prices for the estate-size residences within The Enclave at Blossom Hills start in the $400,000s, according to the developer.

Founded and headquartered in Orange County, California, Standard Pacific Homes specializes in building family-oriented communities, with a particular focus on the nation’s largest housing markets, including California, Florida, Arizona, North Carolina, South Carolina, Texas and Colorado.

Meanwhile, Broadstone Camelback, a 270-unit luxury apartment community in the upscale Biltmore area, has been awarded LEED Platinum certification by the U.S. Green Building Council, reported AZ Big Media.

Developed by Alliance Residential, the multifamily complex offers a mix of studio, one- and two-bedroom residences ranging in size from 650 to 1,100 square feet.

The community incorporates a variety of green elements and sustainability features, including an energy-efficient building envelope (insulation), recycled building materials, high-efficiency mechanical systems, water-conserving fixtures and irrigation systems, environmentally conscious landscaping, high-efficiency low-E windows, climate-controlled elevators and halls, enhanced indoor-air quality, EnergyStar appliances and electric vehicle charging stations.

Photo credits: The Enclave at Blossom Hills Home Model courtesy of Standard Pacific Homes; Broadstone Camelback via Official Website

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