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

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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.

Sunbelt Holdings Sells Multi-family Site for $4.5m

Vizzda–July 29th, 2013 — A joint venture between Bruce Hart of Vedura Residential and Bert Getz of Globe Corporation purchased a 4.23 gross acre vacant site that is fully entitled for a 266-unit multifamily project called Elevation on Central. The site is located at the southwest corner of Central & Highland Avenues in Phoenix. John Graham of Sunbelt Holdings sold the site for $4.5 million or $24.42 per square foot in the all cash transaction.

Picture 13 Plans for the project were approved following a city council meeting on April 3rd, 2013. The three buildings planned for the site will wrap around the six-level, 400 space above-ground parking garage, for a parking ratio of 1.5 spaces per unit. The development will be four stories and have a height of 69’8”.  The unit mix is planned as follows: 72 studio, 120 one bedroom one bath, 24 two bedroom one bath and 50 two bedroom two bath units. The units will have 9 different floor plans.

The project will occupy 3.4 net acres of the 4.23 gross acre site, making a density of 6.8 dwelling units per acre. 13% of the gross acres will be dedicated towards open space.

Picture 14

The new Planned Unit Development zoning conforms with the general plan Transit Oriented Development overlay (TOD-1) in the light rail corridor. The site is 0.2 miles north of the Campbell/Central Avenue light rail station, and 0.25 miles south of the Camelback/Central Avenue station.


By:

Daniel Alpers

Director of Planing & Municipal Projects

American Furniture Warehouse Buys 40 Acres in Glendale for $9m

Vizzda – July 23, 2013 –  A 41.49 acre parcel in Glendale located at the southwest corner of Loop 101 and Bethany Home Rd, opposite of Westgate City Center and City of Phoenix Stadium and previously planned for a 1.25m square foot, mixed-use project called “Bella Villagio,” has been sold by Stearns Bank to American Furniture Warehouse for $9.0m or $4.98 per square foot.

The prior owners–doing business as Stadium Holdings LLC–previously acquired this land from the Arizona Department of Transportation on November 16, 2007 for $16.265m or $9.00 per square foot with $15.8m debt with Stearns Bank. The property was noticed for trustee sale November 26th, 2008 on the outstanding debt with Stearns. Stadium Holdings LLC filed for Chapter 11 Bankruptcy and Stearns Bank secured a ruling lifting the automatic stay on foreclosure on January 26th, 2010. The property then reverted to Stearns Bank on February 12, 2010 through trustee sale process for $16.495m credit bid amount.

Vizzda is actively researching the zoning and planned development for the site, which at this point appears to be in the early stages.

Edward Moore

Director of Research

emoore@vizzda.com

www.vizzda.com

Land Planned for 307 Multifamily Units Purchased in Gilbert

VIZZDA – July 22nd, 2013 — A parcel of land planned for Residences at Gilbert Town Square has been purchased at $4 per square foot by an entity formed by Mr. Paul Stark of Stark Builders Inc. Located within the Gilbert Town Square project South of the Southwest Corner of Warner and Gilbert Roads, the two parcels total 14.36 acres.

11.39 acres of the site was sold by WalMart Stores, which had previously acquired the property in 2006 at a valuation closer to $7 per square foot with plans to develop a store.   The planned multifamily development is to total 307 units in 3 & 4-story buildings with a 46’ maximum building height. The complex will feature 103 one bedroom units, 177 two bedroom units, and 27 three bedroom units for a project density of 21.4 units per acre.

Gilbert Town Square was originally developed by Triple Five group, who began assembling the 66 acre project in 1999. Find out much more about this deal, including contacts, debt, and detailed site information by subscribing to VIZZDA today. 

By:

Hadden Schifman

Managing Director

Vizzda.com

Camden USA Acquires Three Entitled Multi-family Parcels for $25.75m

VIZZDA—June 15th, 2013 — Equity Residential (EQR) is continuing it’s massive divestiture from the Phoenix market by selling three parcels of final platted land totaling 38.764 acres and planned for 834 units, for $25.75m to Camden USA. As their recently filed final plats suggest, these parcels came to EQR by way of their recent acquisition of the Archstone Enterprises portfolio from the bankruptcy estate of Lehman Brothers.

Camden paid cash for the three properties, described as follows:

  • Archstone at DC Ranch – 9.254 acres of raw infill land, zoned PNC PCD. Planned for a 220-unit apartment complex in 16 buildings totaling 350,000 ft2 for a proposed project density of 7.6 DU/AC. Sale Price: $11m; $27.3/ft2
  • Archstone Tempe – 7.8 acres of existing commercial development, zoned R-5 PAD. Planned for a 234-unit apartment complex in eight buildings comprised of 96 one bedroom, 113 two bedroom and 25 three bedroom units. Sale Price: $9.243m; $27.20/ft2
  • Archstone at Village Crossing – 21.71 acres of agricultural land, zoned C-3. Planned for 380-unit apartment complex in fifty-one 2 & 3-story buildings for a proposed project density of 17.5 DU/AC. Sale Price: $5.507m; $5.823/ft2 

Archstone acquired the parcels in three transactions beginning with the November 9th, 2011 purchase of 9.254 acres infill land in the DC Ranch community for $8m, followed by  $8.5m for 7.8 acres at the northwest corner of Scottsdale and Curry Roads–discussed hereand finally acquiring a 21.71 acres of agricultural land in Chandler for $3.25m on December 24th, 2012. EQR announced its plans to acquire the Archstone portfolio in the Fourth Quarter of 2012 and completed the acquisition in the First Quarter of 2013. Prior to their acquisition by Archstone, each of the three parcels was either bank-owned or had recently moved off of a bank balance sheet to a short-term investor at a significant discount to debt outstanding. 

The DC Ranch parcel was acquired from developers on December 27th, 2006 for $5,830,608 or $14.45 per square foot with $192,960 down and $7m new seller-carryback financing. The property was refinanced through Home National Bank and the principal balance outstanding was increased to $15,612,993. Home National Bank took the property back deed-in-lieu of foreclosure on December 8th, 2009 and sold concurrently to Avenir Group for $13.24m or $32.84 per square foot with assumption of the outstanding debt with Home National Bank, stipulated to be $13.12m at the time of sale.

On July 9th, 2010, Home National Bank was closed by the FDIC, which named Enterprise Bank and Trust as Acquiring Financial Institution. Enterprise also had occasion to take the property back deed-in-lieu before selling to a Wichita, Kansas-based investor group, HCW Development, for $5,488,104 on August 15th, 2011. HCW realized a roughly 189% annualized rate of return on their sale of the property to Archstone Enterprises following a three-month holding period.

The Tempe parcel was acquired as roughly 13.5 acres in January of 1999 for $9.775m and operated as a fitness center. The prior owner paid $2,765,879 in cash and assumed $7.1m in existing debt with Northland Financial. Lehman Brothers lent an additional $7.2m on the property and securitized the note with Wells Fargo as Trustee and LNR Partners as Special Servicer. That note was served a notice of trustee sale on July 26th, 2010 and sold to Bruce Shapiro and Martin Landis on July 14th, 2011. Landis and Shapiro foreclosed on the property on July 26th, 2011 with a $6.25m credit bid.

The Chandler parcel was acquired as 39.96 gross acres by local investors Wayne Howard and Michael Lieb for $2.9m or $1.67 per square foot. Stearns Bank was the seller and lent $1.45m against the property, maturing March 4th, 2014. That parcel was then split into the 21.71 acre multi-family parcel and 13.84 net acres for future commercial development. The investor group retained the commercial portion. Not only does this sale completely clear the cost basis for the larger assemblage, but on a per square foot basis, Howard and Lieb were able to realize a 110% annualized appreciation for their property.

By:

Paul Dionne

Director of Analytics

Vizzda.com