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

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.

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

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

 

Angelo, Gordon & Co. Initiate $76m Sale-Leaseback with Hensley & Co, Cindy McCain

VIZZDA—December 28th, 2012 — Gordon Whiting, Managing Director and Portfolio Manager at Angelo, Gordon & Co. in New York, has acquired three cold storage and distribution facilities from Hensley & Co. and its chairperson, Cindy Hensley McCain. The properties are described in greater detail below:

  • Hensley Industrial Park: A 296,888 ft2 warehouse and distribution center at 4201 N. 45th Avenue in Phoenix, comprised of 60,663 ft2 office and 148,005 ft2 cold-storage built in 1988 with additional cold storage of 28,003 ft2 in 1998 and 58,936 ft2 in 2002. The facility sits on 32.96 acres, zoned A-1 and features thirty truck bays, fifteen roll top doors and a rail spike. It was acquired via quitclaim from representatives of the Atchison Topeka and Santa Fe Railroad on December 4th, 1995 and owned by Hensley & Co. at the time of sale. The $47m price tag represents a $158.39 price per ft2.
  • Hensley Chandler Facility: A 230,826 ft2 warehouse and distribution center at 2555 N Nevada Street in Chandler built in 2007 on 25.95 acres, zoned PAD. The property features twelve truck bays, thirty roll top doors and rail access. It was acquired on December 4th, 1995 from Brandon Mark of Catellus Development as vacant land for $1,002,655 and sold to the personal trust of Cindy Hensley McCain on May 25th, 2011 for $25m or $108.30 per ft2. The $26.5m price tag represents a $144.80 price per ft2.
  • Hensley Prescott Valley Facility: A 33,364 ft2 warehouse and distribution center at 10201 E. Valley Road in Prescott Valley comprised of 7,662 ft2 office, 18,480 ft2 cold storage and 7,222 ft2 warehouse. The facility was built in 2003 on 13.31 acres zoned M-1 and features four truck bays, two roll top doors and ten truck parking spaces. It was acquired from the Fain Signature Group on January 22nd, 2002 as vacant land for $1,280,664 and sold to the personal trust of Cindy Hensley McCain on March 11th, 2011 for $4m or $119.88 per ft2. The $2.5m price tag represents a $74.93 price per ft2.

Per the memorandum of lease recorded between Angelo, Gordon & Co. as landlord and Hensley & Co. as tenant, Hensley & Co. will lease the three properties until December 27th, 2030 with four 5-year options to extend.

By:

Paul Dionne

Director of Analytics

Vizzda

Southwest Product Corp’s 165K SF Building in Surprise Underway, Land Transacts

VIZZDA–August 23, 2012 – Moshe Silagi of Silagi Development has sold 23.62 acres within the Surprise Business Park II to Southwest Product Corp (SWP) for the construction of their new ±165K SF headquarters. The purchase price was $2,677,321 or $2.60 per SF with $200K Down (no debt recorded with sale).

The vacant I-1 zoned industrial land is located South of the Southwest corner of Cactus & Dysart Roads. Surprise Product Corp will be constructing a 166,985 SF Office, Warehouse and Manufacturing facility, inclusive of a 45,700 SF canopy, multiple truck wells, parking for 295 cars, and room for expansion.

News of the prospective building was announced earlier in June, followed by a development agreement between SWP and the City of Surprise, recorded July 24th, 2012. Following are some of the deal points:

  • Facility to be constructed & occupied by Aug. 2013 and cost no less than $10M 
  • Employ at least 120 people, City to offer Jobfair 
  • City provided 800 SF of temporary space at their AZTechCelerator facility 
  • City is to pay permit fees (estimated $130K expense) if occupied within 6 months of target date 
  • City to reimburse up to $90K in impact fees

Mr. Silagi previously acquired the land as an 81.05 acre assemblage on June 12th, 2009 for $4,696,814 or $1.33 per SF from National Bank of Arizona as bank owned property. Silagi plans for additional development on the remaining land, including a 418K SF spec industrial building dubbed ParkSkyway- whose size will make it the largest structure in Surprise. Southwest Product joins a growing number of businesses to enter the Surprise industrial area- including neighbors Rio Glass, Gestamp Solar, Brentwood Industries, and others.

By:

Hadden Schifman

Managing Director

Agave Center Sold to Westport Capital Partners for $23.3m

VIZZDA–August 15th, 2012 — Multi-Employer Property Trust (MEPT) a commercial real estate equity fund representing several local trade unions and administered by David Keto of Newmark Trust Company has sold several lots of a partially developed office/retail mixed use complex for $23.3m. Riggs and Company acquired the 22.37 acre original assemblage in a partnership with the trustee for MEPT on May 24th, 1999 for $4,552,350. The $23.3m sales price represents a 412% appreciation gross of fees and development costs or a 31% annualized rate of return.

The portion conveying consists of five 1 and 2-story buildings totaling 218,993 SF built in 1999 on 16.99 acres, as well as 4.64 acres of undeveloped land zoned PCC-1. Marc Porosoff in his capacity as Principal and General Councel was signatory for Westport Capital Partners. This acquisition–when combined with the Pinnacle Peak Business Park (124k SF) and the Scottsdale Financial Center II (150k SF)–marks the third large acquisition by Westport Capital Partners in the Phoenix area.

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BY:

Paul Dionne

Director of Anayltics