Local Investor Moves Retail Markets

VIZZDA—April 30th, 2013 — Joseph Cattaneo, principal of A & C Properties, has acquired and disposed of 131,384 ft2 of retail property for a total Sales Volume of $36.42m in the last month.

The flurry of activity began with Mr. Cattaneo’s sale of the Kierland Village Center—an 115,938 ft2 neighborhood shopping center at the southeast corner of 64th Street and Greenway Road in Scottsdale. The center sits on 13.43 acres, was completed in 2001 and is comprised of 55,082 ft2 anchor space occupied by Safeway, 30,070 ft2 multi-tenant inline space, a 15,242 ft2 freestanding drug store and three retail pads totaling 15,553 ft2.

Christopher and Brett Schirm and Ryan Denk of Emerald Interests Corp paid $10,645,737 in cash for the property and assumed obligations under a $15m existing note with Sun Life Assurance Company of Canada with an outstanding principal balance of $14,704,262. The acquiring entity paid a 1% assumption fee in association with the transfer of ownership. The $25.35m sale price reflects a Per Square Foot Price of $218.65.

Mr. Cattaneo followed that disposition with two acquisitions of multi-tenant inline retail within larger neighborhood shopping centers. The first of these purchases was Riggs Marketplace, an 18,241 ft2 inline portion in a Fry’s-anchored neighborhood shopping center totaling 118,549 ft2. The property is located west of the southwest corner of Riggs and McQueen Roads in Chandler and is comprised of eleven retail spaces built in 2003 on 1.56 acres, zoned PAD.

Mr. Cattaneo and his partners, Alan Prince and William Wichterman, paid $1.74m in cash to acquire the property from David Gaunt of Murray and Gaunt Partners and secured $3.31m in new debt with First National Bank of Arizona. The $5.05m sales price represents a Per Square Foot Price of $276.85 and a loan-to-value (LTV) ratio of 65.5%.

Finally, on April 29th, 2013, Mr. Cattaneo acquired the inline portion of the Village at Surprise from Bruce Galloway with Pacific West Land for $6.02m. The 27,205 ft2 building was built in 2004 on 3.328 acres north of the northwest corner of Litchfield and Bell Road, and is part of a 121,946 ft2 neighborhood shopping center on 14.65 acres. 125 parking spaces convey with the property for a parking ratio of 4.54 per 1000 ft2. Mr. Cattaneo paid $2.05m cash and secured two new debts of $3.31m and $3.98m with First National Bank of Arizona in addition to the $3.31m new debt mentioned above.

Mr. Galloway acquired the property by purchasing a distressed first-position CMBS note secured by the property for a reported $3.1m from US Bank. Following a February 25th, 2011 Trustee’s Auction, the property reverted to Pacific West Land with a $3.2m credit bid. The sale price of $6.02m represents a Per Square Foot Price of $221.28 and 43.8% gross annualized rate of return for Pacific West Land.

By:

Paul Dionne

Director of Analytics

Vizzda

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