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

Florida Homebuilder Purchases The Borgata, Sells Restaurant Pad

VIZZDA—September 7th, 2012 — Samuel Colgan of Avatar Properties, a Florida-based homebuilder, has completed the acquisition of The Borgata for $12.75m and the disposition of two restaurant properties within the mall for $3.5m in simultaneous transactions. The seller, RED Development through its principal and vice-president Michael Ebert, had previously acquired the retail complex on April 30th, 2012 for $9.15m from Macerich. The $12.75m sale price represents a 39.3% appreciation over a ~4.5 month holding period for RED Development.

Promotional material supplied by Macerich lists the 10-building complex at 93,706 rentable square feet while the Assessor places the total square feet at 99,092. Using the Macerich figures, the $9.15m and $12.75m sales prices on a per-square-foot basis are $97.65 and $136.06, respectively. The complex was built in two phases in 1981 and from 2006-2008 on 6.65 acres zoned C-2. Per City of Scottsdale planning documents, the entire site has 490 parking spaces including approximately 186 spaces in a below-grade parking garage.

Upon completion of the acquisition, Avatar Properties sold two of the freestanding retail pads on 1.604 acres currently used as full-service restaurants to Bruce Shapiro of Arizona Partners for $3.5m or $286.27 per square foot. The properties total 12,226 rentable square feet and stand between the Borgata and Scottsdale Road.


Paul Dionne

Director of Analytics