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

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

 

26-Story Phoenix Corporate Center Noticed For Trustee Sale, $54M

Phoenix Corporate CenterVIZZDA – 6/14/2013- A Notice of Trustee Sale was recorded against a $54m face value note secured by  the 26-story Phoenix Corporate Center located at 3003 N Central Ave. The foreclosing beneficiary is ColFin PHX Tower Funding LLC—an entity formed by Colony Capital. Petrus Partners, in care of their local affiliate Crown West Realty is the trustor under the note.

Crown West Realty acquired the building on June 26th, 2007 for $69.25M or $155.33 per rentable square foot. Krausz Companies—who had held the property since 1990—was the seller and JP Morgan Chase provided $54M in financing for the deal. JP Morgan assigned the note to Colony on December 19th, 2012. Per a Colony Financial, Inc. 10-k:

In December 2012, we invested $16 million in a joint venture with Co-Investment Funds that acquired a sub-performing first mortgage loan secured by a high-rise office tower in a main metropolitan center located in Phoenix, Arizona. The loan was acquired for approximately 59% of its UPB of $54 million. Our share of this investment is 50%.

Located north of the northeast corner of Central Avenue & Thomas Road, the Phoenix Corporate Center was originally built in 1989. Owner’s describe the property as 445,811 RSF with a 17,095 ft2 floor plate. The 4.31 acre site includes a 5-level above grade and 2-level sub-grade parking garage with 1,124 spaces. Amenities include ground-floor retail, 3,600 ft2 fitness facility, and a 180-seat auditorium. The building has undergone several renovations of varying scope. The law firm, Fennemore Craig, was an anchor tenant in the building—occupying over 100k ft2 of space for a time—dating back to 1994. The firm moved to the Biltmore area in April of 2013.

The Trustee for the note is Mr. Jonathan T Brohard of Polsinelli. Auction is presently scheduled for September 18th, 2013 at 11AM.

For more information on this and all distressed property in Maricopa County, log in to Vizzda.com or contact Kris Thompson for a demonstration.

By:

Hadden Schifman

Managing Director

Vizzda.com