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 or contact Kris Thompson at (480) 383-9310 to schedule a demonstration.


Paul Dionne

Director of Analytics

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


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.


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

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

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.

Interested in stories like this? Contact Kris Thompson at (480) 924-2000 to subscribe to VIZZDA and be amazed by the daily activity and relevant detail.

Retail Focused Developer Picks Up Bank Branch/Office Building on 5th Ave & Scottsdale in Old Town Scottsdale

VIZZDA — 9/6/2013 — A joint partnership between Artemio DeLaVega of DeLaVega Development, and Scott Weaver, a director at Western Refining in Texas, have acquired 13,960 square feet of bank branch & office in one 2-story building at the southeast corner of Scottsdale Rd & 5th Ave, just south of the Galleria project. The piece sold for $3.94m or $282 per square foot.

The building is located at the 4253 N Scottsdale Rd, Scottsdale. It was built 1981 on 0.40 acres zoned C-2, 6 parking spaces, and a drive thru.

The seller of the property was Nicholas McKay Sr., the CEO of Ecosentials LLC & Vitamin Squeeze. He previously acquired the property November 10th, 2005 for $4,531,875 or $324 per square feet, $100K down, and $2.5m new note with US Bank. $3.75m debt issued November 4th, 2008 with M&I Marshall Bank. $3,675M additional financing on May 24th, 2008 with Northern Trust. — The prior lease with US Bank (as occupant) originated November 15th, 2002.

DeLaVega Development’s website states that although their historic acquisition strategy has focused on ground up development, the company has more recently been seeking redevelopment and value added retail and mixed use opportunities in the southwest.

There is currently an active development review case for a parcel across the street from the subject property for a 6,009 square foot mixed-use building, planned to have ground floor restaurant and second floor residential. This property is located at 7158 E. 5th Avenue. Case Document.

Daniel Alpers

Scottsdale Airpark Runway Land Sells for $5.78m or $14.82 per Net Square Foot

VIZZDA – 9/4/2013—A vacant commercial land parcel abutting the south side of Scottsdale Airpark’s runway sold for $5.78M to an entity formed by renowned Arizona architect Bing Hu and his wife Wenchin Shi. The parcel totals 9.54 gross or 8.56 net acres and is zoned I-1. The site was previously planned in 2007 for an 85K SF office/hangar development, the plans for which are referenced here. Larry Miller—who had previously assembled the land in on January 3rd, 2005 for $10,102,500 or $24.31 per ft2—was the seller.

VIZZDA was actively tracking the property as it was noticed for trustee sale at the time of purchase on a $9.6M debt with Colony Capital. Had the property not sold, a foreclosure auction was scheduled for November 8th, 2013. Inca Capital provided the funding to satisfy this first position with a loan that was later assumed by the buyer.  Diversified Funding Group also provided buyer financing and was a prior lender on the property.

Eighty Acres Purchased by Joint Venture, 1M SF Distribution Facility Planned

VIZZDA – 9/4/2013—A venture formed by Wentworth Property Company and Texas-based Crow Holdings closed on 83.15 acres of commercial land at the northwest corner of 59th Avenue & Van Buren Street in Phoenix—just a half-mile South of the I-10. City zoning officials report no site specific plans have been approved but an earlier submittal from 2011, which was resubmitted in 2013, describes a multi-phase distribution project totaling 1.162M SF in three buildings, referenced here.


The property was purchased for $11,949,704 or $3.30 per gross square foot; El Dorado Holdings who had previously acquired the site for $4.06M on November 8th, 2010. 

Call VIZZDA today for detailed information on planning data, historical purchases, financing structures, and more. We can deliver accurate insight on any property in Maricopa or Pinal.