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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



Bela Flor Unveils 121-Unit Condo Development in Mesa

10 May 2014, 2:06 am

By Amalia Otet, Associate Editor

Real estate development firm Bela Flor Communities has debuted Villa Rialto, a 121-unit luxury condominium development in Mesa.

Villa Rialto is located at 7726 East Baseline Road, near the junction of Loop 202 and I-60 in the southeast Valley. It offers easy access to Superstition Springs Mall, Costco, golf courses, lakes and other destinations.

The upscale development offers nine two- and three-bedroom floor plans, ranging in size from 947 to 1,557 square feet. Interiors feature high-end appliances and fixtures, including gourmet kitchens with solid slab granite countertops, stainless steel appliances, 9-foot ceilings, 8-foot entry doors and 18″ ceramic tile flooring.

Common amenities include gated access, free Wi-Fi, a heated pool, a clubhouse outfitted with an entertainment kitchen and fitness center, and attached garages.

Additionally, the residences will offer a ‘smart home’ technology package upgrade ,that includes tankless electric water heaters and high-tech thermostats, both of which allow residents to adjust settings and monitor usage via an iOS or Android mobile device.

“Smart home technology has become increasingly attractive for today’s buyer,” said Hudd Hassell of Bela Flor. “It helps us offer a truly hassle-free ‘lock-and-leave’ lifestyle, which is very appealing – especially for homeowners who travel a lot,” he added.

Prices for the residences at Villa Rialto start in the mid-$140,000 range.

Bela Flor plans to break ground later this year on another high-end condominium project. Dubbed Bella Victoria, the 240-unit community will be located at Ellsworth and US 60. Offering high-tech features is part of the firm’s strategy to attract condominium buyers.

Photo credit: Villa Rialto via official website



MIG Real Estate Pays $42M for M-F Community in Tempe

28 Apr 2014, 1:58 am

By Amalia Otet, Associate Editor

Newport Beach, Calif.-based MIG Real Estate L.L.C. has acquired Quadrangles Village, a 510-unit multi-family community in Tempe. The purchase price was  $41.9 million or $82,108 per unit, reported Business Real Estate Weekly of Arizona. The seller, an affiliate of Beverly Hills FSC Realty Inc. in Beverly Hills, Calif., was represented by Tyler Anderson and Sean Cunningham of CBRE Group Inc.

“In acquiring this property, MIG Real Estate recognized Quadrangles Village’s desirable location next to ASU’s 60,000 students and 12,000 employees, as well as its excellent potential for value-add upgrades,” said MIG Real Estate’s CEO Greg Merage in a statement. Quadrangles Village represents the company’s second investment in the local multifamily market, following its investment in Acacia Creek in Scottsdale in 2013.

Located at 1255 E. University Drive, the complex consists of 23 three-story buildings with studio, one- and two-bedroom apartments.  Units feature walk-in closets, private patios or balconies, and fully equipped kitchens with breakfast bars.

Community amenities include gated access, three swimming pools with spas, poolside WiFi and water features, a clubhouse with a kitchen, billiards table and televisions, a fitness center, a business center and laundry facilities. Greystar Student Living will provide property management services.

Quadrangles Village is within walking distance of the main Arizona State University campus. Nearby attractions include Wells Fargo Arena, Sun Devil Stadium, and Tempe Town Lake. Retail amenities include Tempe Marketplace and Mill Avenue Shopping District.

Since April 2009, MIG Real Estate has acquired nearly 7 million square feet of investment properties totaling approximately $1 billion in assets under management throughout Arizona, California, Colorado, Edmonton-Alberta, Florida, Hawaii, Nevada, North Carolina, Texas, Utah, Washington, and Wyoming.

Photo credit: Quadrangles Village in Tempe, Arizona via Official Facebook Page



Buchanan Street Picks Up Office, M-F Properties for $43M

15 Apr 2014, 9:40 pm

By Amalia Otet, Associate Editor

Newport Beach, Calif.-based Buchanan Street Partners has teamed with Baron Properties of Denver to purchase Vue Park West, a 260-unit luxury apartment community in Peoria. The partnership paid $30 million for the complex, or $115,300 per unit.

Buchanan Street is currently on a buying spree, with eyes on California, Arizona, Nevada and Texas. The company is targeting properties in the $10 million to $100 million range.

“Vue Park West is an excellent example of the caliber of core-plus and value-add investments that we are making in select Western markets,” said Bob Dougherty, partner at Buchanan Street, adding that the venture was drawn to the asset’s cash flow and the prospect for rent growth in the West Valley market.

Completed by Wood Partners in 2008, the asset has reportedly enjoyed an occupancy rate of more than 90% since 2010, outperforming its submarket during that period.

Formerly known as Alta Park West, the community is located at 9680 W Northern Ave., within walking distance of the Park West lifestyle center and minutes away from Westgate Entertainment District. It also offers easy access to the Agua Fria (101) Freeway at West Northern Avenue.

The complex is a mix of studio, one-, two-, and three-bedroom units with island kitchens, vaulted ceilings, washer and dryer in the unit, garden tub and oversized closets. Common amenities include a business center, swimming pool, fitness center, pet park, eco-friendly environment, covered parking and gated access. Additionally, the new ownership plans to add value and re-position the property by implementing a series of improvements.

Further expanding its Phoenix footprint, Buchanan Street has acquired Mesa Corporate Center, a two-story Class A office building in Mesa, for $13.2 million. The seller was Parkway Properties in Orlando, Fla.

Located at 1001 W. Southern Avenue, the 106,077-square-foot property was 89 percent occupied at the time of closing, with a credit tenant roster that included Allstate Corp. and Carrington College (DeVry).

According to Brian Payne, vice president at Buchanan Street Partners, Mesa Corporate Center is a first-class property in a premier location and has amenities that broaden the firm’s offerings to present and potential tenants, and achieve further economies of scale.

Buchanan Street picked up the property at a 40% discount to estimated replacement cost and was attracted to the project’s current cash flow and the opportunity to participate in improving fundamentals as leases expire.

Photo credit: Vue Park West Apartment Homes in Peoria, Az. via Official Website



W. P. Carey Pays $43M for Chandler Office Building; Meritex Makes Local Debut With Industrial Acquisition

8 Apr 2014, 10:58 pm

By Amalia Otet, Associate Editor

In a $43 million deal, W. P. Carey Inc. has acquired a 183,000-square-foot Class A office building in the heart of Chandler’s Price Road Corridor, one of the Phoenix metro’s most sought-after office submarkets. The seller was Los Angeles-based Regent Properties.

The transaction was arranged by a three-member team of Colliers International brokers: Neil Glassmoyer, senior vice president; Tivon Moffitt, vice president; and Peter Bauman, senior associate, AZ Big Media reported.

Located at 2700 Frye Road, the three-story building serves as the West Coast regional headquarters of QBE Holdings, a global insurance company, which occupies the property under a 10-year-lease. Amenities include covered parking for more than 1,000 vehicles, a large cafeteria, reflective windows and significant IT infrastructure. The site offers additional development opportunities.

“The Price Road Corridor is Phoenix’s strongest submarket, with an 8.9 percent Class-A office vacancy,” said Gino Sabatini, W. P. Carey managing director and co-head of global investments, in a statement. “”The submarket – referred to as the ‘Silicon Desert’ – is filled with companies that specialize in research, technology, financial services and high-tech manufacturing. High-tech, professional and other ‘knowledge workers account for over 60% of Chandler’s workforce.”

In industrial investment news, Minneapolis-based Meritex Enterprises purchased a two-building industrial portfolio totaling 193,366 square feet in a deal that marks the company’s entry into the Phoenix market. The Class A properties are located at 21410 and 21415 North 15th Lane in the Deer Valley submarket.

At the time of closing, the buildings were 97 percent leased to ten tenants, including one that recently expanded by nearly 15,000 square feet. Both properties offer easy access to I-17 and Loop 101.

Tony Lydon and Pat Harlan, both managing directors with JLL, represented Meritex. Metro Commercial Properties will continue to handle management duties for the assets, and John Pompay of Cassidy Turley has been retained as the listing agent.

Meritex’s chief investment officer, Dan Williams, said in a statement that the firm will seek additional investment opportunities in the Phoenix area as part of its strategy to expand and diversify its industrial portfolio.

Photo courtesy of W.P. Carey Inc. via official website



Mentor Properties Buys Peoria M-F Asset for $10.8M; Exeter Property Group Grabs Distribution Center in $13M Deal

2 Apr 2014, 2:26 pm

By Amalia Otet, Associate Editor

In a $10.8 million deal, Mentor Properties Inc. has acquired Monterey Pines, a 216-unit apartment community in the Peoria suburb of Phoenix. The price translates to $50,000 per unit.

Murano Properties, the seller, was represented by Cliff David, a vice president with Marcus & Millichap Real Estate Investment Services Inc., and Steve Gebing, a senior director with Institutional Property Advisors, a Marcus & Millichap affiliate. David and Gebing, who are based in Phoenix, also advised the buyer.

“Monterey Pines is located within a submarket that is poised for smart growth through the city of Peoria’s 10-Year Capital Improvement Plan for fiscal years 2013-2022,” David commented in a statement. “The plan is a $463 million investment in 166 different capital projects focused on coordinating efforts with schools, utilities, developers, and other agencies for the express purpose of creating sustainable community assets.”

Developed by Hrebec Properties in 1984, Monterey Pines is located on 10 acres at 8650 West Peoria Ave., near the Cardinal Stadium and the Loop 101 Freeway. The apartment units feature oversized walk-in closets, individual exterior storage rooms and covered private patios/balcony decks. Common amenities include two swimming pools and a spa, a poolside ramada with built-in barbecues, a newly integrated and lighted sport court, horseshoe pit, shuffleboard, playground and picnic area, reserved covered parking, contemporary clubhouse and complimentary Wi-Fi connectivity in the clubhouse and pool area.

Additionally, the property is near the Bell Road retail corridor, which is anchored by Arrowhead Towne Center, a 1.2 million-square-foot super-regional mall.

In industrial investment news, Plymouth Meeting, Pa.-based Exeter Property Group purchased Prologis Riverside Distribution Center, a 250,796-square-foot facility in southwest Phoenix, for $13.2 million. The seller was Prologis.

Located at 2225 South 43rd Avenue, the distribution center offers direct access to both Interstate 10 and Interstate 17, as well as U.S. Route 60 and Loop 101. Occupancy was 44 percent at the time of sale.

Cassidy Turley Executive Managing Directors Andy Markham and Mike Haenel and Vice President Will Strong negotiated the transaction on behalf of the buyer and seller.

According to Cassidy Turley, Exeter Property Group plans to lease the remaining space to a corporate tenant seeking to take advantage of the central location, efficient layout and modern features of the asset.

Photo credit: Monterey Pines apartment complex via official website



Cohen Acquires 395 KSF Industrial Building; Liberty’s Aetna Building Awarded LEED Silver

24 Mar 2014, 9:51 pm

By Amalia Otet, Associate Editor

Jersey Industrial Capital L.L.C., an affiliate of Cohen Asset Management Inc., has acquired 43rd Avenue Logistics Center, a newly developed 394,775-square-foot industrial building in Phoenix.

Completed in 2013, 43rd Avenue Logistics Center is a LEED-certified, state-of-the-art distribution facility located in the southwest Phoenix industrial area. The property has rail access and is situated close to Interstates 10 and 17 as well as State Routes 143, 101, 202 and 303. The building was jointly developed by a local sponsor and a regional bank that had previously foreclosed on the site. The asset was purchased in an off-market transaction using joint venture equity funding secured by HFF. Senior managing director Paul Brindley, senior managing director Wally Reid, and associate director Jeff Sause of HFF represented the buyer.

The acquisition represents the 17th for Cohen in metro Phoenix. “Our acquisition of 43rd Avenue Logistics Center is the latest example of our capabilities in sourcing and closing well-located off-market industrial properties in vibrant infill submarkets such as this area of Phoenix,” said president & CEO Bradley Cohen. “Further, with the sale of the Rancho Cucamonga property in Southern California, we were able to recycle capital into an opportunity to create additional value for our investors in a capital-efficient and tax-efficient transaction.”

Meanwhile, Liberty Property Trust has been awarded LEED Silver certification for its newly-opened property at 4500 E. Cotton Center Blvd. (pictured at right). The two-story property is fully leased to Aetna, the diversified insurance and financial services firm.

Designed by Balmer Architecture Group, the 139,403-square-foot Class A office building was completed in 2013 and incorporates sustainable construction materials; highly efficient lighting, cooling and fan systems; and a building envelope with windows and insulation that minimize the sun’s heat. Wespac Construction served as general contractor.

Photo credit: Liberty Property Trust



Liberty Signs Power-One for 105 KSF, Brings Sky Harbor Center to Full Occupancy

10 Mar 2014, 3:37 am

By Amalia Otet, Associate Editor

Power-One Renewable Energy Solutions has signed a long-term lease with Liberty Property Trust for 105,000 square feet at Liberty Sky Harbor Center in Phoenix. The agreement brings the complex, which opened last year after a complete makeover and re-branding, to 100 percent occupancy.

Karl Tunberg of Midland Real Estate Alliance represented Power-One in the transaction, and Bob Crum of Ross Brown Partners was the building listing broker.

Power-One, a member of ABB Group, is a leading provider of renewable energy and energy-efficient power conversion and power management solutions and is the world’s second largest designer and manufacturer of photovoltaic inverters. Headquartered in Camarillo, Calif., the company has sales offices, manufacturing, and R&D operations in Asia, Europe, and the Americas. It had previously occupied the Liberty property in Phoenix on a month-to-month basis.

Located at 2626 S. 7th Street, Liberty Sky Harbor Center is an 185,834-square-foot Class A cross-dock distribution center that provides 67 dock doors, 360-degree truck access and more than eight acres of paved area for outside storage and trailer parking. Additionally, the facility offers convenient access to the I-10 and US 202 Freeways, as well as Sky Harbor Airport.

Liberty acquired the industrial outfit in 2012 from Beverly Hills, Calif.-based Emerik Properties Corp, according to data from PropertyShark. It underwent a major renovation in 2013, which included implementation of several green practices and sustainable enhancements. Liberty said it re-used 85 percent of existing structures on site; recycled asphalt, concrete and steel that was demolished as part of the redevelopment; installed upgraded radiant insulation with an R-30 value, and used low VOC paint throughout.

Power-One will take occupancy of the space this month, joining other tenants including Charter Towne Inc., which leased 44,868 square feet in August 2013, and American Beverage Corporation, the existing tenant in the building upon acquisition by Liberty.

Photo credit: Liberty Sky Harbor Center courtesy of Liberty Property Trust



Alberta Plans 187 M-F Units, Retail in Downtown Tempe

4 Mar 2014, 4:10 pm

By Amalia Otet, Associate Editor

Greenwood Village, Colo.- based Alberta Development Partners has acquired a 1.9-acre parcel at the northwest corner of University Drive and Ash Avenue in the Mill Avenue District of downtown Tempe, where it plans to develop 187 apartment units and 40,000 square feet of ground-floor retail space.

PCCP L.L.C., a real estate finance and investment management firm provided a $5.7 million senior loan to Alberta to purchase and entitle the development site.

The seller, Brookfield Asset Management of Toronto, was represented by Barry Gabel and Chris Marchildon of CBRE Group Inc.’s Phoenix office, in conjunction with CBRE’s National Loan Sale Advisory Group. Alberta Development Partners negotiated the sale in house.

The property is “one of the single most sought-after vacant land parcels in the Phoenix metropolitan area,” according to Gabel.

With a shortage of grocery retailers in downtown Tempe, Alberta is seeking a grocery tenant to anchor the development. At present, the nearest grocer is a Safeway two miles away.

The community will be within walking distance of the Mill Avenue District and its 75 restaurants, shops and nightlife attractions, and close to the 60,000 students, faculty and staff at the nearby Arizona State University campus.

“Both Alberta and PCCP look forward to further contributing to the vibrant Mill Avenue District and delivering the proposed mixed-use project to the market,” said Philip Russick, principal with PCCP, in a statement. “There is a pent-up demand in the area for the product they are seeking to entitle and we feel this will be an ideal fit for the area.”

Despite an increase in multifamily completions last year, Phoenix’s steady employment growth and robust economy will allow housing supply and demand to remain well aligned. Approximately 4.500 units are projected to come online in 2014, an uptick from the 3.900 units completed last year. According to a forecast by Marcus & Millichap Real Estate Investment Services Inc., vacancy will fall 30 basis points to 6.9 percent this year. In 2013, vacancy dropped 40 basis points.

The Tempe/Arizona State University area remains even tighter, with vacancy declining to the low 4 percent range.

Chart via Marcus & Millichap’s 2014 Annual Report



Epoch To Make Phoenix Debut With $50M M-F Project; Jerry Simms Pays $45M for Scottsdale Retail Center

21 Feb 2014, 7:26 pm

By Amalia Otet, Associate Editor

Winter Park, Fla.-based Epoch Properties Inc. is starting work on a $50 million multi-family project that would bring up to 292 new apartments to downtown Phoenix. Epoch plans a second-quarter groundbreaking for the project, which marks the Winter Park, Fla.-based company’s debut in metropolitan Phoenix. Completion is scheduled for early 2015.

Dubbed 11 Capital Place and 12 Capital Place, the property would comprise two four-story structures, each on top of one level of podium parking. A  parcel located along the south side of Washington Street at 12th Street is targeted for 152 units and another 140 units are planned for the north side of Washington Street at 11th Street, Business Real Estate Weekly of Arizona reportedThe communities will be adjacent to the 12th Street light rail stop.

Epoch bought the two parcels for $8.1 million in a deal structured by Mark Forrester and Ric Holway of Hendricks Berkadia.

The property is designed to attract young professionals with ties to the legal industry, Arizona State University’s downtown campus and Phoenix Sky Harbor International Airport. Archicon, the project’s architect, is designing studio, one-, two- and three-bedroom units ranging from 890 square feet to 1,500 square feet. Monthly rental rates are expected to run from $1,200 to $2,400. Epoch will also manage the properties.

In retail transaction news, an entity controlled by Jerry Simms, owner of the Turf Paradise racetrack in Phoenix, paid $44.5 million for Shea Scottsdale, a 160,228-square-foot retail center in the Scottsdale/Paradise Valley submarket.

Executive Managing Directors Michael Hackett and Ryan Schubert of Cassidy Turley’s capital markets group represented the seller, Los Angeles-based Karlin Real Estate. Marty De Rito of De Rito Partners in Phoenix represented the buyer.

Completed in 1994, the property is located at 10653 N. Scottsdale Road. Anchored by Safeway and CVS Pharmacy, the center was 95% leased at the time of closing. The transaction included all in-line space as well as additional sites with freestanding structures, including Wells Fargo, McDonalds, MidFirst Bank, Jason’s Deli and Arby’s.

Karlin Real Estate had purchased the asset in October 2011 along with an adjacent 117,025-square-foot retail center, Shea Scottsdale East at 7366 E. Shea Boulevard, for approximately $50 million. At that time, the two centers had a combined overall occupancy of 85%, according to Cassidy Turley. Karlin Real Estate has retained ownership of Shea Scottsdale East.

Shea Scottsdale Shopping Center via Karlin Real Estate website



KBP Realty Pays $8M for Deer Valley Flex Complex; Mark-Taylor Plans Upscale M-F Project in Scottsdale

10 Feb 2014, 11:04 pm

by Amalia Otet, Associate Editor

In an $8 million deal, KBP Realty Advisors has acquired Turner Spectrum Ridge, a 68,195-square-foot industrial flex property in Phoenix, from Newport Beach, Calif.-based Turner Real Estate Investments. The price translates to about $117.98 per square foot.

Turner Spectrum Ridge is a four-building, multi-tenant development located at 21025 North 8th Way and 21045-21111 North 9th Place, in the Deer Valley submarket, just north of the 7th Street exit on the Loop 101 Pima Freeway.

Developed in 2009, the property was 93.5 percent occupied at the time of closing.

Senior Managing Directors Bob Buckley, Tracy Cartledge and Steve Lindley of Cassidy Turley’s capital markets group arranged the transaction.

“Spectrum Ridge’s location dynamics and configuration resulted in strong tenancy,” Buckley commented in a statement. “Combined with current positive leasing momentum, this set the stage for a competitive pursuit by numerous Investors looking for quality product with upside potential.”

In multi-family news, Business Real Estate Weekly of Arizona reports that Scottsdale-based Mark-Taylor Inc. has acquired a 16.7-acre tract in North Scottsdale, where it plans to build a 252-unit luxury multi-family community. The seller was LaSalle115 Holdings L.L.C.-Series 34 Villa Volterra, an entity affiliated with BMO Harris Bank in Chicago, as successor to M&I Bank.

Located at 7215 E. Silverstone Drive, the acreage is part of the 160-acre former location of the Rawhide Western Town theme park.  Now rebranded as Silverstone, the old Rawhide site is being redeveloped with retail, multi-family and single family residential, senior housing and a planned office park.

A 12-acre upscale strip mall anchored by Sprouts is under construction at the southeast corner of Pinnacle Peak and Scottsdale roads, with delivery scheduled for late 2014/early 2015. Vi at Silverstone, a continuing care retirement community, opened at the site in 2010.

Mark-Taylor’s planned rental complex is designed by Architectural Design Group and will feature one-, two- and three-bedroom units averaging about 1,100 square feet. Monthly rents are expected to average around $1,430.

Groundbreaking is scheduled for mid-2015, followed by opening about 10 months later. Mark-Taylor Development will serve as contractor. Development will cost an estimated $45 million, according to BREW.

Photo credit: 21045-21111 North 9th Place in Phoenix via Google Maps



CSM to Reinvent Phoenix Office Building as Select-Service Hotel; W.P. Carey Pays $23M for Avnet HQ In Tempe

31 Jan 2014, 10:59 pm

By Amalia Otet, Associate Editor

CSM Lodging plans to revamp the historic Professional Building–the former Valley Bank & Trust building–in downtown Phoenix, and turn it into a premium select-service hotel.

The hospitality company, a division of CSM Corp., completed the purchase on Dec. 20. “We look forward to working with Phoenix, which has been so supportive, to open the hotel in time for the city’s hosting of the 2015 Super Bowl,” said Bill Upshaw, president of CSM Lodging, in a statement.

Located at North Central Avenue and Monroe Street, the landmark property will undergo a $40 million makeover. Highlights include renovation of the Art Deco exterior, installation of new insulated windows; new mechanical, electrical and plumbing systems; and a complete refurbishment of the former bank lobby, which will serve as the main reception and gathering place for hotel guests.

The hotel will feature 165 guest rooms on 12 floors, a rooftop terrace, 5,000 square feet of meeting space, a business center, a 1,300-square-foot fitness center, and on-site parking. Additionally, the compound will host approximately 8,000 square feet of retail along Central Avenue.

As to the branding options, CSM Lodging tends to gravitate toward either Marriott or Hilton; but the dearth of Hilton product in downtown Phoenix should tip the scales in favor of the Hilton Garden Inn brand.

Upon opening, Hotel Monroe is expected to bring 105 jobs to downtown Phoenix marketplace, on top of 100-plus jobs created during construction and an overall economic impact of about $18 million.

In other news, W.P. Carey Inc. announced that CPA®:17-Global, one of its publicly-held, non-traded REIT affiliates, has acquired 8700 South Price Road (below left), a Class A office building in Tempe, for approximately $23 million.

Built in 2000, the 132,070-square-foot facility serves as the global headquarters of Avnet Technology Solutions, one of Avnet Inc.’s two operating groups. It is located on a nine-acre tract within the Arizona State University Research Park and has direct frontage on the Loop 101 freeway.

Commenting on the acquisition, Morgan Olsen, President of the Arizona State University Research Park board of directors and Arizona State University’s CFO, said in a statement: “We are delighted that W. P. Carey has purchased a property in the ASU Research Park. This acquisition validates the institutional quality of the facilities and tenants within the Research Park, currently home to 48 companies which provide over 4,500 high-quality jobs.”

Chris Toci, Chad Littell and Michael White of Cushman & Wakefield Inc. represented the seller, Atlanta-based Piedmont Office Realty Trust, in the transaction, according to AZRE Magazine.

Avnet, a major global distributor of electronic components, computer products and embedded technology, will continue to occupy the building under a long-term net lease. As part of its commitment to sustainability, the company is seeking to install solar panels  to improve energy efficiency .

Photo credits: Professional Building courtesy of CSM Lodging; 8700 South Price Road courtesy of W.P. Carey Inc. via PRNewswire



Younan Buys Class A Office Building for $7M; Hansji Urban to Start $80M Marriott Project

28 Jan 2014, 11:06 pm

By Amalia Otet, Associate Editor

In a $7.1 million deal, Woodland Hills, Calif.-based Younan Properties Inc. has acquired Black Canyon Corporate Center, a 94,203-square-foot office property in Phoenix. The price translates to about $75 per square foot. Black Canyon Center was 82 percent leased at the time of sale.

Built in 2002, the asset is a Class A, multi-tenant office building with a two-story lobby. It is located at 10835 North 25th Avenue, within 15 minutes of Sky Harbor International Airport and a half mile of the National YWCA Leadership and Conferencing Facility, Nearby shopping and dining destinations include the Metrocenter Mall.

Eric Wichterman,  Mike Coover,  Jeff Wentworth, and Sean Spellman of Cassidy Turley arranged the transaction on behalf of the buyer and seller. LNR Partners, the property’s seller, was represented by asset manager and special servicer John Mitchell.

“Black Canyon Corporate Center is arguably the highest quality office building in the Northwest Phoenix trade area,” Wichterman commented in a statement. “With a strong tenant base it offered a unique mix of stability with upside potential for Younan Properties.”

In hospitality development news, the Phoenix Business Journal reports that Irvine, Calif.-based Hansji Urban plans to start work on an $80 million project within the historic Luhrs block in downtown Phoenix.

Dubbed the Luhrs City Center Marriott, the 19-story structure will replace a two-story office building on the northwest corner of Madison Street and Central Avenue. The site is located within Luhrs City Center, a Hansji-owned city block consisting of mixed-use, office, retail, parking and development sites. Hansji acquired the property in October 2007 with plans to return the area to its former vibrancy.

The 320-key hotel will host two brands: Courtyard by Marriott, which will take over the lower 120 rooms, and a 200-key Residence Inn by Marriott.

Groundbreaking is scheduled for this spring, followed by 22 months of construction.

Photo credit: Luhrs City Center via Hansji Urban Facebook Page



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







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