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.

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Two Golf Courses Change Hands for Eight Figures

VIZZDA—August 7th, 2013 — FireRock Golf and Country Club in Fountain Hills and the Arizona Golf Resort in Mesa were sold last week for a combined price of $11.8m. Both of these assets pricing in the seven figure range is atypical for golf assets, which typically transact in the low six figure range. Though the circumstances of the transactions were quite different, high valuations for recreational assets such as golf courses and resorts bode well for the Phoenix-area real estate market.

The first of these properties to change hands was FireRock, a 7,001 yard, par-72 course designed by Gary Pank in 1999 and boasting a 2-story 29,058 ft2 clubhouse. The sale price of $5.5m was furnished by the members of the club, who voted to buy out the original developers, MCO Properties, earlier this month. The vote was a response to professional golfer, Phil Mickelson, placing a bid on the property. More information on the circumstances of this sale can be found in this article from the Fountain Hills Times.

The Arizona Golf Resort is a 187-room golf resort with 54 condo units built in 1967 and renovated in 2004. The resort features an 18-hole, par-71 golf course that was completed in 1962. The property sits on roughly 120 acres at the southeast corner of Broadway and Power Roads. The $6.3m acquisition by Dr. Matthew Luxenberg represents a steep decline from a previous purchase price of $22.305m in April of 2007. Following default on a $19.2m CMBS note with JP Morgan Chase, the property reverted at trustee sale for $5,900,783 in August of 2010.

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

LNR Partners Sells First Arrowhead Commerce Center to International Co-venture

Picture 4VIZZDA—June 2nd, 2013 – A group formed by Daryl R Burton of Phoenix, Rod Saunders of Mesquite, Texas and Bernie Van Maren of British Columbia, Canada have acquired the First Arrowhead Commerce Center in Peoria for $15.8m or $73.83 per square foot. The 203,000 ft2 complex is located south of the southwest corner of Loop 101 and Bell Road in the West Valley and is comprised of four 1-story buildings with six truck wells and seven grade level roll-up doors. The facility sits on 17.38 acres and is zoned PAD; it was completed in 2001.

The seller was LNR Partners as special servicer for the registered holders of Greenwich Capital Commercial Funding Corp. Commercial Mortgage Trust, Series 2005-GG5, with US Bank as trustee. Lasalle bank had previously securitized the debt and assigned it to US Bank on November 8th, 2011 and US Bank placed the $19.6m portion of the $317.5m cross-collateralized debt secured by the Arrowhead Commerce Center—originally underwritten by Archon Financial, a Goldman Sachs subsidiary—into Special Servicing on January 10th of 2012. The property was subsequently noticed for trustee sale on March 9th, 2012 and reverted to US Bank as beneficiary on June 22nd, 2012 with a $16.1m credit bid.

The prior owners acquired the buildings in four consecutively recording deeds on April 20th, 2004 with a total sales price of $25,396,051 or $125.10 per square foot with $8,394,283 down and $222m new cross-collateralized debt accruing to the benefit of the Mortgage Electronic Registration System with Bank of America as Trustee. An additional $317.5m in new cross-collateralized debt was issued by Archon Financial on November 10th, 2005 and assigned to Lasalle Bank on August 26th, 2009. The current buyers secured an additional $13.5m with US Banks to finance the acquisition. The $15.1m sales price represents a decline of 40.5% from its pre-distress acquisition price.

By:

Paul Dionne

Director of Analytics

Vizzda.com

7025 N Scottsdale Road is Noticed for Trustee Sale on $24.5m CMBS Debt

VIZZDA—May 30th, 2013 — A notice of trustee sale was recorded May 28th, 2013 for 7025 N Scottsdale a large office building in Scottsdale whose major tenants include Waste Management and First Western Trust Bank. Located North of the Northeast Corner of Scottsdale Road & Indian Bend,  7025 N Scottsdale is a 3-story office building totaling 91,148 ft2 built 2002 on 2.87 acres. The property features two decks of sub-grade parking.

Scott McLaughlin of C-III Asset Management is the special servicer on behalf of a CMBS vehicle underwritten by Credit Suisse and in care of Wells Fargo as Trustee. Column Financial issued the original $24.5M debt to an entity formed by Falcon Real Estate Investment following their acquisition of the property on October 3rd, 2006 for $32.75M or $359.31 per ft2. Falcon purchased the 100% occupied property from Lees Mayfield, the building’s original developer.

The note was later securitized and assigned on August 25th, 2008 to Credit Suisse CMBS Series 2006-C5, maturing October 11th, 2013 and bearing a 5.77% annual interest rate. Court records indicate Mr. Michael D Wilson of Wilson Property Services was appointed receiver on November 5th, 2012. Mr. Jacob Maskovich of Bryan Cave is the successor trustee under the deed of trust, and the trustee sale is currently scheduled for August 29th,  2013 at 10:00 AM.

By:

Hadden Schifman

Managing Director

Vizzda.com

94 Hundred Shea Sells For $16,327,500

Vizzda – May 3, 2013 – Talia Jevon Properties of Vancouver, BC, has acquired 94 Hundred Shea, an Office & Retail mixed-use development in Scottsdale, from LNR Partners of Miami, Fl, for $16,327,500 or $220.40 per ft2.  

94 Hundred Shea is a 74,079 ft2 office and retail complex located east of the southeast corner of Loop 101 and Shea at 9325, 9343, 9375, and 9397 East Shea Blvd in Scottsdale. It is comprised of a 38,840 ft2 2-story office component and three multi-tenant retail strip buildings built in 2007 on 10.62 acres zoned C-3. The property has ±440 parking spaces or 5.9 spaces per 1,000 ft2.   

This property was previously acquired by John Rosso & Steven Goodhue of the now-defunct Westar Development on May 31 2002 as ±18.2 acres of vacant land for $8,287,726 or $10.5 per ft2 with $5,887,726 down; loaned $2.4m debt with Stearns Bank. Westar sold off a portion of the land and developed the remainder into 94 Hundred Shea. On May 18, 2007 Westar encumbered the property with a $21.0m loan with Canadian Imperial Bank of Commerce. 

This debt was securitized as commercial mortgage backed securities (CMBS)  by JPMorgan Chase Bank in 2007. The underwriter’s appraisal of July 1, 2007 described the property as 72,621 ft2 and 78.7% occupied with an appraised value of $31.0m. That loan was described in the SEC package as as a 6.02937% net rate maturing June 1, 2017. 

On October 6, 2010 the property was noticed for trustee sale on $21m orig debt in the care of LNR Partners as special servicer, cancelled December 10, 2010.  The property was re-noticed for trustee sale on February 1, 2012 reverting through trustee sale to LNR Partners on May 17, 2012 for $23.4m credit bid amount.

For data on this and thousands of other deals visit http://www.vizzda.com and  request a product demonstration.

By:

Edward Moore
Director of Research
www.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