Thistle Landing Office Park Noticed on $37m CMBS Note

VIZZDA- September 19th, 2013 — A Houston-based Tenant-in-Common (TIC) investment group was noticed for trustee sale yesterday on their holdings within the Thistle Landing office park–located Northwest of Chandler Blvd & I-10. The foreclosing beneficiary is an entity formed by Torchlight- who acquired the $37M note as part of their newly launched Debt Opportunity Fund IV. 

Thistle Landing office park is comprised of four freestanding back-office/flex facilities on 38 acres, all built in 1998. Three of these buildings, totaling 281,858 SF, were included in the sale. 

  • 4801 E Thistle Landing: 101,006 SF
  • 4805 E Thistle Landing: 90,299 SF
  • 4811 E Thistle Landing: 90,553 SF

The borrowers had previously acquired the three buildings on November 1st, 2005 for $51.176M or $181.57 per square foot. PNC Bank provided the initial funding of $37M debt, which was later securitized and assigned to Credit Suisse as part of a commercial mortgage-backed security (CMBS). 

 At the time of securitization, the property was 94% leased; including:

  • 101,006 SF leased to CheckFree Corp, expiring April 30th, 2010
  • 72,567 SF leased to EquiFirst, expiring December 11th, 2010
  • 65k SF leased to Alltell, expiring January 31st, 2007

The debt was originally scheduled to mature November 1st, 2015, bearing a 5.22% annual interest rate. The TIC investment group referenced above split the property into 20+ ownerships. A joint venture formed by Everest Holdings and Walton Street capital acquired the 4809 E Thistle Landing–the fourth building in the project–earlier in August at $66 per square foot.


Did you know VIZZDA covers distress properties in addition to all the sale transactions- monitoring auction dates, credit bids, and providing direct contact detail for lenders/beneficiaries. The above property is just one of the many distressed opportunities we track daily. Call Kris Thompson today @ (480) 383-9310 to schedule a demo.

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

Griffin Capital REIT Acquires the Avnet Integration Headquarters in Chandler

Vizzda – MAY 30TH, 2013 – Griffin Capital Essential Asset REIT, Inc has acquired the Avnet Integration headquarters in Chandler for $31.5M or $137 per square foot. There was a $500K down payment, and the property was secured under a $200M cross-collateralized note with Keybank.

The 229,740 ft2 distribution center is located at 6700 West Morelos Place in Chandler, east of the southeast corner of 56th Street and the Loop 202. The property consists of one building on 13.11 acres zoned with a planned area development overlay. The building consists of 183,061 ft2 first floor that is used for integration and logistics. The 46,679 ft2 second floor is strictly office space. Further information on this building’s features is available through a  subscription to Vizzda.

Ryan Companies developed the building built-to-suit in 2007 for Avnet Integration, whose lease commenced on January 10th, 2007. The site was later sold to FORT Property Management on July 25th, 2008 for $35.2M or $153 per square foot. Fort facilitated a tenancy-in-common ownership arrangement by selling off fractional interests from July 28th, 2008 through April 20th, 2010.

By: Daniel Alpers

Director of Planning & Municipal Projects

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

Amkor Research and Development Facility in Chandler Sold to Digital Realty Trust for $24m

VIZZDA—February 1st, 2013 — Chandler-based chip manufacturer, Amkor Technologies, Inc., has sold its corporate headquarters and research facility to Digital Realty Trust for $23m. Digital Realty Trust is a leading provider of data center solutions and was represented by its CEO, Michael F. Foust. Gil Tily, as Executive Vice President, Chief Accounting Officer and General Counsel oversaw the transaction for Amkor.

The 17.79 acre campus is located at the southwest corner of Price and Germann Roads and includes 43,044 ft2 of 2-story office built in 1996, 95,430 ft2 of warehouse and manufacturing in three buildings built in 1997 and 75,465 ft2 3-story office shell built in 2000. The $24m sales price represents a $112.18 price per square foot. It is not known nor are there documents to indicate, if Amkor intends to lease the facility.

The land on which the facility sits was acquired by the family trust of the founder of Amkor on July 3rd, 1995 for $679,706, no new debt with sale. Following construction of the bulk of the facility, ownership was transferred to Amkor on September 15th, 1997 for $5,709,504. From April 23rd, 2003 to March 2nd, 2006, Amkor encumbered the property with $630m in total debt with Citicorp and Bank of America, the final $100m of which was released with this sale.

By:

Paul Dionne

Director of Analytics

Vizzda.com

 

Guaranty Bank and Trust Co. Sells Crown Plaza San Marcos Resort in Chandler

VIZZDA—January 28th, 2013 — Interwest Capital Corporation of La Jolla, CA has acquired the historic San Marcos Resort and Golf Course in Chandler for $11m. The seller, Guaranty Bank and Trust Co, held the property as Real Estate Owned for over a year following the bankruptcy of the resort’s prior owners. Interwest financed the transaction with $14m in seller carry debt, maturing January 28th, 2018.

Crowne Plaza San Marcos Resort

The resort—located at the Southwest corner of Arizona Avenue and Chandler Boulevard—was originally constructed in 1912, underwent major renovations in 1960 and 2006 and was expanded to 295 rooms in 1987. It is comprised of four 4-story buildings totaling 180,842 ft2 on a 123-acre campus, zoned PAD. The 18-hole par 72 golf course measures 6,626 yards from the tips and has a slope rating of 119.

The most recent arms-length transaction occurred on November 23rd, 2004 when Robert Bigelow of Bigelow & Co. paid $12,485,371 for the hotel and $1,214,629 for the golf facilities for a total $13.7m with an additional $1,254,669 in fixtures. The $8m in new debt issued by Guaranty with the sale was modified on May 31st, 2007 to increase the principal to $23m. Guaranty noticed the property on December 31st, 2010. On March 18th, 2011, Bigelow declared bankruptcy and the property reverted to Guaranty as beneficiary on December 6th, 2011 with a $16.5m credit bid.

The sale of the Crowne Plaza San Marcos comes after a purchase of nearly three acresof land immediately South of the Hotel. On January 18th, 201 3, an entity formedby Robert Furst of Oakstream Investors acquired 3.27 acres of finished lots, zoned MF-2, comprised of 19 lots with dimensions of 50’ x 150’ as part of the original Chandler plat for a total purchase price of $1,348,607 or $9.47 per square foot. Thesale is comprised of multiple transactions and trades; sold by the Bogle Family. Furst concurrently traded 2 of the lots to the Hall family, retaining 2.93 acres.2.41 Acres of this assemblage previously sold in 2006 for $1.5M or $14.29 PSF.

VIZZDA tracks built property types and land- enabling our clients to have a comprehensive view of activity! 

By:

Paul Dionne

Director of Analytics

Vizzda.com

Canadian Investor Acquires Major Chandler Office Building for $15m

VIZZDA—December 31st, 2012 — Ayaz Velji of Redstone Enterprises—an investor and developer based in British Columbia, Canada—has purchased the Opus Chandler Airport Center 2 office building from Jon Demorest of the Picerne Group for $15m or $162.01 per ft2. Redstone paid cash for the property.

The 92,584 ft2 2-story office building was built by The Opus Group in 2007 as the second phase of a 180,108 ft2 office development on 14 acres West of the Southwest corner of Cooper Road and the Loop 202. This building sits on a 7.22 acre parcel zoned PAD and conveys with 450 parking spaces.

The Picerne Group acquired the property from the developer on September 29th, 2009 for $5.4m or $58.32 per ft2. While the amount tendered in that transaction is unavailable, Picerne secured $7.95m new debt with California Bank & Trust. The $15m sales price represents a 79% annualized rate of return for the property.

By:

Paul Dionne

Director of Analytics

Vizzda