VIZZDA – September 7, 2012 – Richard Young of Table Mound Mobile Home Park (Iowa) acquired Ethan Plaza in Gilbert for $9,321,775 or $181.52 per square foot with $5.75M down and $3,571,775 seller carry debt with sellers Trevor Smith and Joshua Volen of CirePartners in La Jolla.
Ethan Plaza totals ±51,353 SF with 5 buildings built between 2008 and 2011 on 9.13 AC zoned CC. This neighborhood shopping center is located at the southwest corner of McQueen and Guadalupe Rds in Gilbert and includes addresses 706, 722, 728 & 734 N McQueen Rd and 1655 & 1675 W Guadalupe Rd. Tenants include Youfit Health Club, AZ Health Advantage, Dutch Bros Coffee, and Phoenix School among others.
Ethan Plaza was developed by Kamal Samsumair who acquired the property as ±9.40 AC land only September 1, 2006 from El Dorado Holdings for $2,362,884 or $5.77/SF with $1.313M debt with Wells Fargo. Samsumair took a $9.145M construction loan with Wells Fargo on September 28, 2007. The first plat of the site was recorded February 3, 2009, with a replat recording February 17, 2010. The property was noticed for trustee sale on March 4, 2010 by Erik Edwards (AVP) of Wells Fargo on the $9.145M loan. On April 8, 2010 Craig Hannay of Hannay Investment Properties was appointed by the Maricopa Superior Court as Receiver for the distressed property. The property reverted to Wells Fargo on August 12, 2010 throught the trustee sale process for $2,457,600 credit bid amount. Multiple mechanics liens are recorded after May 13, 2009 culminating in a $63K judgement March 2, 2011 against Samsumair. Cire Partners acquired the property on July 22, 2011 for $2.375M or $46.25/SF with $1.075M down and $1.3M related/self debt, later released on April 25, 2012.
Edit – Sept 11, 2012 – Joshua Volens of Cire Partner explains the price increase from July 22, 2011 ($2.375M) to Sept 7, 2012 ($9,321,775):
“We purchased the property at 20% economic occupancy and took it to 88%. Significant TILC and improvements/site corrections were made as well. Pad 2 has been bid for build, and it will most likely start construction within the next 90-120 days…the new buyer has significant momentum with other current lease activity from our brokers Brad Douglass and Chris Hollenbeck at Cassidy Turley. It is expected that the center will be 100% leased in less than 6 months once all the new tenants open.”
– Joshua Volens, President – Cire Partners
This illuminates a mistake I had made when the blog was first written. The property is currently 51,363 SF (5 buildings) with another 13,600 SF building planned but not yet constructed. I originally had that Ethan Plaza totaled ±64,953 SF but I was mistaken about the status of Pad 2. – Edward
Director of Research