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.
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.
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VIZZDA—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.
Posted in CMBS, Distress, Joint Venture, Office
- Tagged Archon Financial, CMBS, First Arrowhead Commerce Center, Industrial, LNR Partners, London Park Investments, Peoria, Reliance Management, US Bank, Van Maren Properties
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.
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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