Major Camelback Corridor Office Building Sold for $12m

VIZZDA—September 26th, 2013 — 3333 E Camelback Road has sold to Fenway Properties for $12m or roughly $130 per square foot. The 92,348 ft2 multi-tenant office building is comprised of two contiguous 2-story buildings built in 1986 on 4.97 acres. The property features 350 parking spaces for a parking ratio of 3.79 per 1,000 square feet and is EnergyStar rated.

The sellers, Robert and James Noffsinger of Noffsinger Manufacturing Company, Inc. acquired the property in April of 2000 for $11.225m or $121.55 per square foot. They paid $4.125m in cash and encumbered the property with $7.1m in new debt with Bank of America. The Noffsingers were able to refinance this note on August 14th, 2003 with National Life Insurance Company.

Fenway paid $2.93m and secured an additional $9.07m in new debt with A10 Capital for a loan-to-value of 75.3%. Major tenants in the building include Summit Builders, The ConAm Group of Companies, Northmarq Capital and AmWINS Group, Inc. For information on this any other commercial real estate transaction or distress in Maricopa County, log on to Vizzda.com or contact Kris Thompson at (480) 383-9310 to schedule a demonstration.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Black Canyon Commerce Park and Red Mountain Corporate Center Revert to Beneficiary

 

VIZZDA – September 24, 2013  – In April we reported that the the entirety of the Black Canyon Commerce Park and the Red Mountain Corporate Centers in Phoenix had been issued a Notice of Trustee Sale for a debt in the amount of $40m (LINK) This debt was based upon a loan by Column Financial issued July 13, 2005 and later securitized as a CMBS or commercial-mortgage-backed security. The Notice of Trustee Sale was issued by CWCapital Asset Management pursuant to their role as the Special Servicer of the loans in this CMBS portfolio. CWCapital has now taken back these assets through the trustee sale process with the trustee deed recording September 23, 2013, for the credit bid amount of $22.96m. These office properties total approximately 313,805 square feet. Please see the prior post for a more in-depth description of the properties.

Edward Moore
Director of Research

Vizzda

Perot’s Hillwood Acquires West Valley Acreage for Industrial Development

VIZZDA—September 24th, 2013 — Hillwood, a private real estate company founded by Ross Perot Jr., has purchased 72.53 acres of agricultural land from Swift Transportation for $10,823,466 or $149,227.43 per acre. The parcel is located at the southwest corner of 75th Avenue and Buckeye Road in Phoenix.

The acquisition was financed by a $22.2m construction loan with Fifth Third Bank with a maximum lien of $40.4m,  maturing September 20th, 2016 with two 1-year extensions available under the note. An interesting wrinkle in the financing gives an indication of the scope of planned development: Hillwood must seek approval from Fifth Third to enter into a lease for less than 340,670 ft2 for seven years to a Standard and Poor’s BBB rated company at a fully net rate of $4.08 per square foot.

Swift’s founder and chairman, Jerry Moyes, previously acquired the land in 2004 as part of a 150-acre sale for less than half of the current price. The larger parcel was re-zoned last year from residential to industrial use. As reported by Vizzda, Swift sold the southern parcel to WinCo Foods for use as a distribution center for nearly $12m in March.

By:

Paul Dionne

Director of Analytics

Thistle Landing Office Park Noticed on $37m CMBS Note

VIZZDA- September 19th, 2013 — A Houston-based Tenant-in-Common (TIC) investment group was noticed for trustee sale yesterday on their holdings within the Thistle Landing office park–located Northwest of Chandler Blvd & I-10. The foreclosing beneficiary is an entity formed by Torchlight- who acquired the $37M note as part of their newly launched Debt Opportunity Fund IV. 

Thistle Landing office park is comprised of four freestanding back-office/flex facilities on 38 acres, all built in 1998. Three of these buildings, totaling 281,858 SF, were included in the sale. 

  • 4801 E Thistle Landing: 101,006 SF
  • 4805 E Thistle Landing: 90,299 SF
  • 4811 E Thistle Landing: 90,553 SF

The borrowers had previously acquired the three buildings on November 1st, 2005 for $51.176M or $181.57 per square foot. PNC Bank provided the initial funding of $37M debt, which was later securitized and assigned to Credit Suisse as part of a commercial mortgage-backed security (CMBS). 

 At the time of securitization, the property was 94% leased; including:

  • 101,006 SF leased to CheckFree Corp, expiring April 30th, 2010
  • 72,567 SF leased to EquiFirst, expiring December 11th, 2010
  • 65k SF leased to Alltell, expiring January 31st, 2007

The debt was originally scheduled to mature November 1st, 2015, bearing a 5.22% annual interest rate. The TIC investment group referenced above split the property into 20+ ownerships. A joint venture formed by Everest Holdings and Walton Street capital acquired the 4809 E Thistle Landing–the fourth building in the project–earlier in August at $66 per square foot.


Did you know VIZZDA covers distress properties in addition to all the sale transactions- monitoring auction dates, credit bids, and providing direct contact detail for lenders/beneficiaries. The above property is just one of the many distressed opportunities we track daily. Call Kris Thompson today @ (480) 383-9310 to schedule a demo.

Cole Real Estate Investments buys three property portfolio from LBA Realty for $56.33m

Vizzda – September 13, 2013 – Cole Real Estate Investments of Phoenix has acquired three properties from LBA Realty of Irvine for a total of $56.33m. Steven Layton at LBA oversaw the transaction; Robert Micera is the chief investment officer at Cole Real Estate Investments.

Portfolio Details:

Devry University at 2149 W Dunlap Ave in Phoenix is a ±122,646 ft2 2-story office built in 1991 on ±17.93 acres. LBA reports a 12:1000 parking ratio. $23.03m or $188 per ft2. LINK

Cotton Center II at 4121 E Cotton Center Blvd in Phoenix is a ±99,734 ft2 flex warehouse with mezzanine office built in 2000 on 8.70 acres. $18.88m or $189 per ft2. LINK

Rio Salado Corporate Center at 1415 W 3rd St in Tempe is a ±82,257 ft2 warehouse built in 1981 on 5.33 acres. $14.42m or $175 per ft2. LINK

Edward Moore

Director of Research

www.vizzda.com

Artis REIT buys North Scottsdale Corporate Center II for $38.6m

Vizzda – September 12, 2013 – Artis REIT purchased the North Scottsdale Corporate Center II from Miller Global Properties for $38.6m or $253.53 per ft2 with $17.37m down and $21.23m debt with US Bank. Peter W Savoie, managing principle and chief investment officer of Miller Global Properties, and Kirsty Stevens, chief administrative officer for ARTIS REIT, closed the deal.

North Scottsdale Corporate Center II, occupied by Choice Hotels, is located at 6811 E Mayo Blvd in Phoenix, just south and west of the intersection of Scottsdale Rd and Loop 101 and just west of the Shops at Chauncey Ranch. The four-story class A office was built by Opus West Development in 2007 on 8.70 acres. The office totals 152,249 ft2 per Global Properties.

Opus West acquired this property as 8.70 acres of vacant land on December 19, 2006 for $4,422,323 or $11.67 per ft2 from the Tom Chauncey and John F Rasor, doing busing as Westranch Land. North Scottsdale Corporate Center I, a nearly identical building occupied by Republic Services, was sold on June 27 of this year by AEW Capital Management to Oaktree Capital for $47.6m or $312.83 per ft2.

Edward Moore
Director of Research

emoore@vizzda.com
www.vizzda.com

Desert Creek at Las Sendas in Mesa Acquired by Ryland – Planned for 145 Lots

VIZZDA—September 9th, 2013 — Ryland Homes closed on the first of two phases within Las Sendas, a largely built out 2,432 acre master-plan in North Mesa, Northeast of Power & McDowell Roads. The subject community is to be called Desert Creek.

The sale price was $3.325M or $219,864 per acre for the roughly 15-acre parcel. City zoning documents indicate the subject sale portion is planned for 102 detached lots, with a minimum area of 2,399 ft2 and a minimum 30’ width. The second phase will comprise 43 lots, with the entire community to total 145 lots on 22.73 acres zoned RM-2 PAD for a project density of 6.38 density units per acre. Maximum height is 30’ for the two story units. Homes are expected to be 1,600 to 2,400 SF and average $275K.

The seller was an entity formed by Mr. J Chris Arnold of the UCI Companies, whose history within Las Sendas dates back to late 1990’s as part of a larger land holding. A related in conveyance in 2008 brought the 50.75 acre parent parcel (known as parcel 51) into the current ownership entity of Mr. Arnold who entered a development agreement with the City of Mesa with plans calling for:

·       180 condo units on 20 net acres

·       506K SF of office & retail (65’ max height)

·       160 room hotel

2008 plan referenced here.

Parcel D of Desert Creek at Las Sendas as it is currently planned

Part of the development stipulates that the residential component must be phased with a defined amount of non-residential development to be completed before the second residential phase can begin. On June 15th, 2012, 5 acres of parcel 51 was sold to IASIS Healthcare for $6.43 per ft2 or $280,057 per acre. The zoning for the planned 145 detached units represents a reduction in density from the agreed upon 180 condo units and was approved by Mesa City Council July 2013.

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