Taylor Morrison Acquires 67 Finished Lots at $2,222 Per Front Foot or $200K Per Lot in Cave Creek

VIZZDA–September 5th, 2012 — Lennar Homes sold 67 finished lots to Taylor Morrison for $13.4M within their Lone Mountain community, located North of the Northeast corner of Lone Mountain Rd & 56th Street in Cave Creek.

The acquired lots all measure 90’x’130’ or 11,700 SF and are zoned RE-35. Lone Mountain totals 794 lots on 608 acres. US Home Corp–a subsidiary of Lennar Homes–originally acquired all 608 acres from the Arizona State Land Department at auction in 2000 for $38.5M but the transaction was not recorded until May 2nd, 2007. The Arizona State Land Department has a continuing participation agreement with Lone Mountain’s builders. Lennar subsequently sold portions of the community to Pulte Homes.

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By:

Hadden Schifman

Managing Director

Tempe Grove Apartments Purchased by Fairfield Residential

VIZZDA – September 5, 2012 –  a 408-unit apartment complex at 909 W Grove Parkway in Tempe was sold by Archstone Apartments for $39.5m or $96,813 per door. The deal recorded August 31st, 2012 with $400k down per affidavit and a $29.625M Freddie Mac Multifamily Loan, maturing 9/1/22, originated through CBRE Capital Markets.  The three and four story apartment complex consists of 17 buildings built in 1998 on 20.17 acres zoned R-4. The brokers, Cliff David and Steve Gebing of Marcus and Millichap, report ±$3M in capital improvements since Archstone acquired the property in 2006. Asking price on the May 31st, 2012 broker flyer was $42.0M.  See the broker flyer here.

The apartments feature one, two and three-bedroom apartments and two and three bedroom townhomes. The brokers’ pro forma indicates that the apartments are 95% occupied. The apartments’ unit mix–taken from the linked flyer–is reproduced here:

The apartments were developed by Jay Wilton of Wilton Partners of Los Angeles who acquired the 20.17 acre parcel of vacant land for $1.63M or $1.85 per square foot, no debt recorded with sale.  Wilton Partners recorded a $871K related debt  on the property May 21st, 1996 by which the principles of Wilton Partners loaned themselves these funds. This debt was released September 4th, 1996.  Wilton Partners also borrowed $1.15M from Bank One August 2nd, 1996, released March 17th, 1998. 

However, the critical debt history on the property began August 29th, 1997 when Wilton Partners acquired a $24.588M note with TRI Capital Corp (6.5% APR, maturing January 1st, 2039) with a US Department of Housing and Urban Development (HUD) agreement binding the property with leasing restrictions requiring an absolute preference in leasing to displaced persons or families per section 221(d)(4) of the National Housing Act. 

This debt was modified June 22nd, 2001, increasing outstanding principle to $25.99M. On July 24th, 2004 TRI Capital assigned debt to Midland Loan Servicing who immediately re-assigned to HUD.  On April 5th, 2005 HUD released the property from any leasing restrictions and sold the note to a Delaware corporation including Archon Group.  On July 31st, 2006, Wilton Partners returned the property to Ameriton Properties, the capital arm of Archstone-Smith, through Deed-in-Lieu. On October 5th, 2007, Archstone-Smith was acquired by a Tishman Speyer and Lehman Brothers FSB partnership – this ownership entity was rebranded as “Archstone” February 19th, 2008. 

Richard L Boynton (VP) of Fairfield Residential and Brett C Johnson (VP) of Archstone closed the deal.

Links:

By:

Edward Moore
Director of Research

101K+ SF Office Building in Ahwatukee Purchased by Everest Holdings, Walton Street Capital Joint Venture for ~$66/SF

VIZZDA–September 4th, 2012 — A joint-venture between Everest Holdings and Chicago-based Walton Street Capital paid $6.725M for the final developer-owned building within the Thistle Landing Office Park at 4809 E. Thistle Landing Dr. Everest and Walton Street paid cash for the property and no debt recorded with the sale. The seller was Mr. Judson Ball, Chairman & CEO of Advantage Office Suites.

Thistle Landing Office Park is a four building complex on 38.29 acres, totaling 382,864 SF located South of the Southwest corner of the I-10 and Ray Road in Phoenix. The subject sale property–building 2–is a one-story, 101,006 square foot office building built 1998 on 10.17 acres and features CP/CGP zoning, 18’ clear height and a 6.1/1000 SF parking ratio.  

Mr. Ball is the original developer of Thistle Landing, having assembled land for the entire project in 1997. There were a number of subsequent related transfers and debt documents, including: 

  •  $37M debt loaned May 14th, 2001 by Fleet National Bank, released May 12th, 2011
  • $28M debt loaned June 13th, 2002 by Wells Fargo, released December 1st, 2005 

Entities formed by Mr. Ball sold buildings 1, 3 and 4–a total of 281,858 square feet–on November 1st, 2005 for $51.176M or $181.57 per SF to Principle Equity Management; he retained interest in building 2 until August 31st, 2012.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Metrocenter Business Park–Purchased for $17.6M in 2007–Sells in 2012 for $3.15M

VIZZDA–September 3rd, 2012 — Houston-based Boxer Property acquired the Metrocenter Business Park for $3.15M of $24.58 per square foot. Boxer financed the purchase with an existing $464M credit line with Beal Bank, originated December 21st, 2009 and maturing June 30th, 2019. The bank-owned building was sold by C-III Asset Management as special servicer for JPMorgan Chase CMBS following an eight months as a bank-owned asset.  

Located at 10000 N. 31st Ave in Phoenix near the Metrocenter Mall–West of the Southwest corner of Peoria Ave & I-17–Metrocenter Business Park totals 128,177 SF. The four building office complex consists of two 1-story, one 3-story and one 4-story buildings; all built in 1982 on 8.85 acres zoned C-2. 

Broker flyers indicate the property was listed on Auction.com at $1.25M starting bid and reportedly 50% leased. SF calculations vary from 128,177 SF per broker, 131,850 SF per Assessor, and 132,212 SF per special servicer.   

The property was previously acquired by a tenancy-in- common group February 1st, 2007 for $17.6M or $137.31 per SF; with $3,989,644 down and $13.768M debt with PNC Bank securitized and assigned to JPMorgan Chase CMBS. C-III Asset management in its capacity as special servicer noticed the property for trustee sale September 21st, 2011 and took back the property at auction January 10th, 2012 with a $9.05M credit bid.

By:

Paul Dionne

Director of Analytics

Vizzda.com

 

±65K SF Office Park in Scottsdale Purchased at Foreclosure Auction by Reliance Management

VIZZDA–August 30th, 2012 — The Turnstone Office Park in Scottsdale was purchased at trustee sale by Mr. Daryl Burton of Phoenix-based Reliance Management for $7.2M credit bid or ±$110 per SF. The property was auctioned August 24th, 2012 with C-III Asset Management acting as special servicer for US Bank, trustee for Bear Sterns CMBS debt totaling $11.3m.

Turnstone Office Park at Perimeter Center is located at 17786 N. Perimeter Drive in Scottsdale West of the Northwest corner Princess Dr and the Loop 101. The 65,472 SF property consists of four 1-story office buildings: two at 20,250 SF and two at 12,186 SF; all built in 1998. Site totals 6.2 acres zoned I-1 with 261 parking spaces. SF per Assessor, 65,100 SF per site plan.

The original borrowers were also the developers, previously acquiring the land in 1997, followed by multiple related transfers and debt documents. $11.3M was loaned March 9th, 2007 by Wells Fargo Bank, maturing April 1st, 2017 and later securitized. A notice of trustee sale was recorded May 16th, 2012, setting August 17th, 2012 as the auction date.

VIZZDA offers exclusive research of distress opportunities- daily tracking every commercial real estate foreclosure in Greater Phoenix. 

By:

Hadden Schifman

Managing Director

Shea Medical Plaza Sold Out of Double G Ranch Liquidation

VIZZDA–August 28th, 2012 — Tim Shaffer of Clotho Corporate Recovery, acting in his capacity as liquidation trustee for Double G Ranch, has sold the Shea Medical Plaza for $6.5m or $148.95 per square foot.  The 43,639 SF medical office building was developed by Lawrence Grinnell of Double G Ranch in 1998 on 2.65 acres East of the Southeast corner of Scottsdale Road and Shea Boulevard. The property includes approximately 34 surface parking spaces as well as a 54,618 SF sub-grade parking facility and is zoned S-R.

The buyer, Duane Nolde of Irgens Development Partners, put $2.36m down and secured $4.14m in new financing with The Privatebank and Trust Company. Based in Minneapolis, MN, Irgens specializes in the construction, acquisition and management of office, industrial and medical commercial properties in Phoenix, Chicago and Minneapolis. Irgens lists six additional properties under management in the Phoenix area including four additional medical properties.

Grinnell acquired the land on which the facility sits on January 8th, 1997 for $1,393,120 from Gary Herberger of Herberger Enterprises. Herberger retained an option to re-purchase the property following the completion of construction which expired without being exercised 12 months after the sale. On April 20th, 2010, Double G Ranch filed for Chapter 11 Bankruptcy Protection in the Eastern District Court of Michigan, a liquidation trust was created to sell the assets of Double G Ranch and Clotho Corporate Recovery was named trustee and administrator. 

By:

Paul Dionne

Director of Analytics

Mountainside Plaza–Scottsdale Bank-Owned Retail–Sells For $81.43/SF

VIZZDA–August 27th, 2012 — Mr. Edmond Khudyan of Glendale, CA based-Arin Capital has purchased the Mountainside Plaza Lot 1 for $1.36M. No debt was recorded with the sale. The seller was C-III Asset Management as special servicer for Wells Fargo / Morgan Stanley CMBS.

Mountainside Plaza lot 1 is a 16,700 SF strip retail center, built in 2004 on 1.27 acres zoned C-3; located N/NEC of Shea Road and 116th St in Scottsdale. The center’s anchor, a 35.9K SF Mountainside Fitness is not included in the sale. Recent Broker flyers indicate the subject property was listed at $2.3M and has a reported occupancy of 50%.

The property was previously acquired January 12th, 2007 for $5.655M or $339 per SF with $1.055M down and $4.6M debt with Morgan Stanley CMBS and sold August 16th, 2009 for $5.7M. Original $4.6m debt assumed. Borrowers were noticed for trustee sale March 9th, 2011 and the property reverted at auction August 19th, 2011 to C-III with a $2.6m credit bid. Glenwood Development Company was the center’s developers.  

By:

Hadden Schifman

Managing Director