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

Vizzda.com

MetLife Sells Scottsdale Shopping Center to Bob Parsons of GoDaddy

VIZZDA—July 26th, 2013 — The McDowell Mountain Marketplace, an 88,121 ft2 neighborhood shopping center at the southwest corner of Thompson Peak Parkway and Bell Road, sold for $14.125m or $160.29 per square foot. The seller was Metropolitan Life Insurance Company (MetLife) through its portfolio manager, Blackrock Realty Advisors. Bob Parsons, Executive Chairman of GoDaddy, purchased the property through his real estate holding company, YAM Management, in an all cash transaction.

MetLife had previously acquired the property from Canadian retail operator, Centrecorp, in February of 2006 for $22.5m or $255.33 per square foot with $11,633,379.18 down and the assumption of an existing $12.25m note with the Teachers Insurance and Annuity Association of America (TIAA). The $14.125m recent sales price represents a 37.22% decline in value over the seven-plus year holding period.

The complex is comprised of a 57,892 ft2 anchor space, currently occupied by Basha’s on a 20-year firm term lease commencing on November 30th, 2000 with four 5-year options to extend. There are two non-contiguous inline retail buildings totaling 26,288 ft2 and a freestanding retail pad, which is ground-leased to JP Morgan Chase until November 30th, 2022. The anchor and inline space was completed in 2002 and the pad space was added to the 10.9-acre site in 2007. Approximately 440 parking spaces convey for a parking ratio of 5.42 per 1000 ft2.

By:

Paul Dionne

Director of Analytics

Vizzda.com

 

Lakeview Village Retail Center of Gilbert sells for $12.15M

VIZZDA – July 16th, 2013 – A Los Angelesbased investor, Farid Safaie-Kia, has purchased Lakeview Village out of special servicing for $12.15M or $106 per square foot. No debt was recorded with the sale. The seller was LNR Partners as special servicer for the benefit of a US Bank-administered commercial mortgage-backed security (CMBS).

Located less than a half mile South of the US-60, at the Southeast corner of Baseline Road and Val Vista Drive in Gilbert – the office/retail development totals 114,440 ft2 of which 22K ft2 is office. The project was completed in stages between 1988 and 1995 on nearly 30 acres. The development is anchored by a 61K ft2 Fry’s Food and Drug Store, which is not included in this sale.  

The prior ownership of Lakeview Village dates back to a larger holding in 1997. The subject property was secured by a $13M loan originated by Citibank and later assigned to La Salle Bank and secured under a CMBS structure. The note was to mature June 11th, 2015 with an appraised value of collateral at time of issue of $19.4M and stated occupancy of 90%.

VIZZDA started tracking this property following the default of the prior trustors. The property was issued a notice of trustee sale on June 22nd, 2011 for the $13m face value note and later reverted at auction to the CMBS beneficiary with a $12.5M credit bid.

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By:

Hadden Schifman

Managing Director

Vizzda.com

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

FirstBank Expands its Arizona Operations with $5.2m Bulk Retail Acquisition

VIZZDA—January 8th, 2013 — Colorado-based FirstBank is adding to its eleven existing branches with the acquisition of three retail pads from restaurant franchisee, The Briad Group. The properties, which until recently had been occupied by T.G.I. Friday’s restaurants, were acquired in three consecutive transactions of $1,733,333 each totaling $5.2m. They are located in Mesa, Goodyear and Glendale and described in greater detail below:

  • Mesa Location: A 7,145 ft2 retail pad built in 1998 on a 1.62 acre parcel, zoned C-2. The property is located South of the Southeast corner of Power Road and US 60 in the Superstition Springs Parcel 8 Lot 2 subdivision and conveys with 111 parking spaces.
  • Goodyear Location: A 5,848 ft2 retail pad built 2000 on a 1.51 acre parcel, zoned PAD. The property is located at the Southeast corner of Litchfield and McDowell Roads in the Palm Valley Pavilions shopping center and conveys with 62 parking spaces.
  • Glendale Location: A 5,892 ft2 retail pad built 1993 on a 0.88 acre parcel, zoned PAD. The property is located at the Southeast corner of 59th Avenue and Bell Road in the Telavi Towne Center and conveys with 52 parking spaces.

The Briad Group acquired the properties in separate transactions going back to May 1993. On January 30th, 2008 Briad transferred all three properties—and presumably many others—to a related holding company and encumbered them with $61.125m new cross-collateralized debt with M & T Bank, which is released with this sale. FirstBank paid an average of $275.35 per ft2 for the three properties.

By:

Paul Dionne

Director of Analytics

Vizzda

Earnhardt Dealership Sells to Winco Foods for $5M

VIZZDA – January 23, 2013 – WinCo Foods of Boise Idaho has purchased the auto dealership at 1301 N Arizona Ave in Gilbert from Earnhardt Properties for $5,079,192 with no debt.

The property is currently a 55,088 SF auto dealership with ±1180 parking spaces on 14.58 acres. The site has been planned for an 117,949 SF neighborhood shopping center with a 94,683 SF grocery store anchor and 3 retail pads of 6,388 SF, 7,795 SF and 9,145 SF. Phase 1 for the site, the anchor design, has been approved.

Hal J Earnhardt III closed the deal. Tammy Zokan is the attorney contact for Winco Foods.

Edward Moore
Director of Research
www.vizzda.com

Boulevard at Surprise Point Purchased by Cire Partners of La Jolla for $17.5M

Vizzda – October 9, 2012 – The Boulevard at Surprise Pointe, formerly known as “Shoppes at Surprise” is the 35-acre retail portion of “Surprise Pointe” a 290-acre master-planned commercial business park. This acquisition comprises a 141,507 SF Lifestyle Retail Center built in 2008 and six vacant land parcels totaling 9.07 acres. The acquired portion sums to 29.82 acres zoned PAD and is planned for 201,223 SF of retail. Cire Partners has acquired all of the project except “Lot 7” a 1.32 AC vacant lot planned for “TCF BANK” PAD and “Lot 12” a 55K SF bowling alley “Uptown Alley” on 5.54 AC. Joshua Volen and Trevor Smith of Cire Partners purchased this property from Matthew Schwab of Karlin Real Estate for $17.5M with $5.9M down and $14.45M debt with Prime Finance Partners. Michael Hackett and Ryan Schubert of Cassidy Turley brokered the transaction.

David Glimcher of Glimcher Ventures Southwest was the original project developer, acquiring the ±27 acres of land in two transactions (7/23/07 & 2/25/08) for a total of $13,188,425. Karlin Real Estate acquired the note(s) from Huntington National Bank 11/10/2010 and conveyed the property through trustee deed 3/28/11 and 5/4/11. Karlin subsequently sold off the Phase II anchor “Lot 12”, consisting of ±60K SF shell building on 5.54 AC for $4.0M to Steven Uphoff for Uptown Alley bowling center.

By:

Hadden Schiffman

Managing Director

Vizzda

Whitestone REIT Adds Dana Point and Fountain Square to Phoenix Retail Holdings

VIZZDA—September 24th, 2012 — Houston-based Whitestone REIT has purchased the Dana Park Village Square and Fountain Square neighborhood shopping center in two transactions totaling $61,866,600 and a cumulative 443,070 square feet.

$50.5M / $162.39 per SF

Dana Park, located in Mesa at the Southwest corner of US-60 and Val Vista, totals 310,979 SF; built in 3-phases between 2003 to 2007. Assessor describes the site as 322,348 SF. The property includes six free-standing retail pads, 18,326 SF of second floor office space, and a 4+ acre vacant future development parcel. Dana Park totals nearly 70 acres zoned C-2. Five retail pads are excluded from the sale–sold previously to retailers. Tenants include: AJ’s Fine Foods, Barnes & Noble, Ra Sushi, Z Gallerie, and 50 other boutiques. Whitestone lists occupancy at 71% and cites a 45% discount to estimated replacement cost.

Canada-based TripleFive was the seller and also original developer of the project. Known for trophy assets like Mall of America, TripleFive acquired the land for Dana Park Village Square March 25th, 1999. Initial debt was with First Security Bank, later merged with Wells Fargo. Most recently May 31st, 2011, the Wells Fargo debt was modified- increasing the amount to $82,711,817.

$15,366,600 / $130 per SF

Fountain Square, located in Phoenix at the Northwest corner of 7th St and Bell Road, totals 118,209 SF; built 1986 to 1988. Assessor describes as 120,722 SF. The neighborhood shopping center includes 11 one-story buildings on 17.79 acres zoned C-2. Approximately 98K SF of inline space and 22K SF of pad (3 of 5 freestanding pads are conveyed). The 53K SF Safeway grocery anchor is excluded. Whitestone lists occupancy at 76% and cites a 49% discount to estimated replacement cost.

Fountain Square was previously acquired October 20th, 2005 for $28.9M with $23.36M debt loaned by Merrill Lynch. The note was securitized (CMBS) and assigned to Lasalle Bank March 9th, 2006, further assigned to Wells Fargo Bank November 7th, 2008 and finally assigned to US Bank July 7th, 2009. C-III Asset Management was special servicer on the CMBS debt and noticed the property for trustee sale on December 29th, 2010.

This auction was postponed following the appointment of Michael Crook of Nobeus Property Management as receiver for the property on December 22nd, 2010. Whitestone entered into a purchase agreement with Crook August 3rd, 2012 and received final approval for the sale of real property on September 19th, 2012; acquiring the property before scheduled foreclosure.

$50m Notice of Trustee Sale Recorded on Gateway Crossing of Avondale

VIZZDA – September 12, 2012  –  A Notice of Trustee Sale has been recorded on Gateway Crossing in Avondale, located at the northwest corner of Loop 101 & the  I-10. The noticed portion of the retail power center totals 223,738 SF (per SEC docs) built in 2006 on 23.29 acres zoned PAD.  Subject buildings include 7 free-standing  pads and ±165K SF of inline major/junior space.  The center is anchored by Hobby Lobby, Best Buy and Old Navy. Gateway Crossing totals 26.16 acres on 10 lots; excluded from the notice are three lots: two vacant land parcels and one lot owned by City of Avondale.

The trustors were the original developers, previously acquiring the land July 15, 2005 (29.22 AC gross) in two transactions totaling $11,731,232; with $1,911,017 down and $20.6M new debt with Gold Bank of Kansas City –later released 2/16/06.  On January 30, 2007 the trustors were loaned the subject $50.0M fixed-rate debt with Artesia Mortgage Capital (5.57% rate and maturing February 11, 2017). At this time, leases were signed with Best Buy, Claim Jumper, Guitar Center, Hobby Lobby and Old Navy per recorded documents. On October 25, 2007 Artesia assigned the debt to Wells Fargo / Wachovia where it was securitized –CMBS loan. On August 7, 2009 Wells Fargo assigned the CMBS debt to Bank of America, later transferring July 23, 2012 to US Bank. Mr. Geoffrey Wood (SVP) of CWCapital Asset Management is issuing this Notice of Trustee sale as the special servicer. Auction is slated for 12/11/12 at 1:00pm.   

Hadden Schifman
Managing Director

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.

By:

Paul Dionne

Director of Analytics