Desert Creek at Las Sendas in Mesa Acquired by Ryland – Planned for 145 Lots

VIZZDA—September 9th, 2013 — Ryland Homes closed on the first of two phases within Las Sendas, a largely built out 2,432 acre master-plan in North Mesa, Northeast of Power & McDowell Roads. The subject community is to be called Desert Creek.

The sale price was $3.325M or $219,864 per acre for the roughly 15-acre parcel. City zoning documents indicate the subject sale portion is planned for 102 detached lots, with a minimum area of 2,399 ft2 and a minimum 30’ width. The second phase will comprise 43 lots, with the entire community to total 145 lots on 22.73 acres zoned RM-2 PAD for a project density of 6.38 density units per acre. Maximum height is 30’ for the two story units. Homes are expected to be 1,600 to 2,400 SF and average $275K.

The seller was an entity formed by Mr. J Chris Arnold of the UCI Companies, whose history within Las Sendas dates back to late 1990’s as part of a larger land holding. A related in conveyance in 2008 brought the 50.75 acre parent parcel (known as parcel 51) into the current ownership entity of Mr. Arnold who entered a development agreement with the City of Mesa with plans calling for:

·       180 condo units on 20 net acres

·       506K SF of office & retail (65’ max height)

·       160 room hotel

2008 plan referenced here.

Parcel D of Desert Creek at Las Sendas as it is currently planned

Part of the development stipulates that the residential component must be phased with a defined amount of non-residential development to be completed before the second residential phase can begin. On June 15th, 2012, 5 acres of parcel 51 was sold to IASIS Healthcare for $6.43 per ft2 or $280,057 per acre. The zoning for the planned 145 detached units represents a reduction in density from the agreed upon 180 condo units and was approved by Mesa City Council July 2013.

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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

The Sonora Canyon Apartments sell for $30m

Vizzda – July 16, 2013 – The Sonora Canyon Apartments were sold Monday to Lone Star Funds for $30.0m or $ 77,320 per door. The apartments had been owned by Orix Real Estate Capital. Scott Cronister chief operating officer of Orix and Marc Lipshy vice president of Lone Star closed the deal. Lone Star financed the deal with a $494,262,293 acquisition loan funded by Citibank & Royal Bank of Canada maturing July 8, 2015.

The Sonora Canyon Apartments are located south of the southeast corner of Gilbert Road and University Drive  at 265 N Gilbert Rd in Mesa.  This 388-unit 2-story apartment complex totals 33 buildings and was built in 1984 on 15.80 acres zoned RM-4. Sonora Canyon features a mix of eight different unit styles with 224 one-bedroom and 164 two-bedroom apartments totaling 312,880 rentable square feet. The apartments are individually metered for electricity.

 Mercury Investments of Duluth previously acquired these apartments from a Capital Associates joint venture on August 21, 2000 for $16.875m or $43,492 per door with $14.428m debt with First Union Bank. Mercury Investments sold to Security Properties of Seattle on September 21, 2005 for $22.15m or $57,087 per door with $22.15m debt with GMAC Commercial Mortgage. Security Properties sold to Orix Real Estate Capital on January 17, 2007 for $33.3m or $85,824 per door with no debt. 

Edward Moore
Director of Research

www.vizzda.com

East Valley Professional Plaza Sells for $5.94m

Vizzda – May 13, 2013 –  Dr. Sylvester Johnson, PhD, an investor based out of Laguna Beach and New York City, has acquired the East Valley Professional Plaza from Ensemble Real Estate Solutons for $5.94m or $313.82 per ft2. Dr Johnson paid cash and secured $3.3m in new debt with Wells Fargo.

The East Valley Professional Plaza is an 18,928 ft2 two-story medical office built in 2007 on 2.01 acres zoned LC or “Limited Commercial.” Aerial indicates ±109 parking spaces or a parking ratio of ±5.75/1000 ft2. The office is located at the southeast corner of Higley Road & Southern Avenue in Mesa and is leased to pediatric dentists and eye specialists. 

Per historical broker flyer, this property had been offered for sale at $6.05m. Ensemble Real Estate acquired the property as 211,215 ft2 or 4.85 acres of vacant land on January 11, 2006 for $2,862,747 or $13.55 per ft2 with no debt. This land acquisition includes the adjacent property at 5131 E Southern Ave–now a ±31K ft2 medical office also built in 2007 and still owned by Ensemble.  Randy P McGrane of Ensemble closed the deal.

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

Edward Moore
Director of Research
www.vizzda.com

ML Manager Sells Off 291 Acres at $22.5k per Acre in Mesa

VIZZDA–January 30th, 2013 — Mark Winkleman—as COO for the court-appointed receiver for Mortgages Ltd., ML Manager—has sold 291 acres for $6,547,500 or $22,500 per acre. The buyer was a general partnership led by Mr. Michael Cowley of Strategic Capital Management. Notably, parties within the general partnership were also lenders to ML Manager- having previously lent $20M in 2009. No debt was recorded with sale.

The property is located at the Southeast corner of Crismon and Pecos Roads in Mesa, just south of Eastmark—formerly known as the GM Proving Grounds. Legal documents describe the land as 290.77 acres. Aerials indicate the property has agricultural use, is zoned M-1, and is planned as “General Industrial” per Mesa’s land use plan. The property is within the Williams Gateway Trade Area.

Previous owners acquired a slightly larger area (±311 acres) on September 7th, 2006 for $23,209,496 or $74,628 per acre. Mortgages Ltd. loaned $25.74M debt secured by the property. Owners were noticed for trustee sale September 9th, 2008 on the $25.74M debt and later filed for chapter 11 bankruptcy protection February 9th, 2009. ML Manager as the successor beneficial interest to Mortgages Ltd. took back the property at trustee sale April 21st, 2011 with a $6M credit bid. A portion of the 311 acres (±20) was conveyed to one of the Mortgages Limited investors October 25th, 2012.

This transaction marks one of the final ML Manager properties remaining in Maricopa County and among a handful remaining between Maricopa and Pinal Counties. Contact VIZZDA today for the most current market intelligence available!

By:

Hadden Schifman

Managing Director

Vizzda.com

FirstBank Expands its Arizona Operations with $5.2m Bulk Retail Acquisition

VIZZDA—January 8th, 2013 — Colorado-based FirstBank is adding to its eleven existing branches with the acquisition of three retail pads from restaurant franchisee, The Briad Group. The properties, which until recently had been occupied by T.G.I. Friday’s restaurants, were acquired in three consecutive transactions of $1,733,333 each totaling $5.2m. They are located in Mesa, Goodyear and Glendale and described in greater detail below:

  • Mesa Location: A 7,145 ft2 retail pad built in 1998 on a 1.62 acre parcel, zoned C-2. The property is located South of the Southeast corner of Power Road and US 60 in the Superstition Springs Parcel 8 Lot 2 subdivision and conveys with 111 parking spaces.
  • Goodyear Location: A 5,848 ft2 retail pad built 2000 on a 1.51 acre parcel, zoned PAD. The property is located at the Southeast corner of Litchfield and McDowell Roads in the Palm Valley Pavilions shopping center and conveys with 62 parking spaces.
  • Glendale Location: A 5,892 ft2 retail pad built 1993 on a 0.88 acre parcel, zoned PAD. The property is located at the Southeast corner of 59th Avenue and Bell Road in the Telavi Towne Center and conveys with 52 parking spaces.

The Briad Group acquired the properties in separate transactions going back to May 1993. On January 30th, 2008 Briad transferred all three properties—and presumably many others—to a related holding company and encumbered them with $61.125m new cross-collateralized debt with M & T Bank, which is released with this sale. FirstBank paid an average of $275.35 per ft2 for the three properties.

By:

Paul Dionne

Director of Analytics

Vizzda

Bascom Arizona Ventures Adds Two Major Distressed Multifamily Properties

VIZZDA—October 1st, 2012 — Bascom Arizona Ventures, a wholly-owned subsidiary of the Bascom Group, has completed the purchase of Brookstone at the Foothills and Madera Point Apartments for a combined purchase price of $49.92m. The seller—AIG Global Investment Group through its representative Keith Honig—was the beneficiary named on two deeds of trust securing the properties during their prior acquisition by Redhill Realty.

Brookstone at the Foothills is a 528-unit complex comprised of 65 buildings totaling 473,659 ft2 on 23.44 acres built in 1986 and zoned R-4. It is located West of the Northwest corner of the I-10 & Baseline Road at 4424 E Baseline Road in Phoenix. Redhill Realty acquired the property on December 18th, 2006 for $46.8m or $88,636 per door. Redhill paid $13.5m cash for the property and secured $43.2m in financing with AIG Global Investment Group maturing January 1st, 2012.

Redhill was served with a Notice of Trustee Sale on September 26th, 2011 and it reverted to AIG with a $35m credit bid, after which it spent 8.5 months as REO. While the $35.57m—or $67,367.42 per door—sale price was in excess of the credit bid amount, it represents a 17.6% write down to the amount loaned and a 24% discount to the previous purchase price. Bascom paid $12,995,971 cash for the property and secured $25.85m new debt with Bank of America.

Madera Point is a 256-unit complex comprised of fourteen buildings totaling 179,296 ft2 on 9.44 acres also built in 1986 and zoned R-4. It is located South of the Southeast corner of Dobson and Broadway Roads at 455 S Dobson Road in Mesa. Redhill acquired the property October 24th, 2006 for $21.25m or $83,008 per door. Redhill paid $6,133,719 in cash at the time of purchase and placed $19.024m in debt with AIG Global Investment Group on the property. An additional $5,066,880 industrial development bond with the Bank of New York was assigned at purchase.

Redhill was served with a Notice of Trustee sale after defaulting on the senior AIG note January 14th, 2011 and it reverted April 20th, 2011 with a $16m credit bid. The property spent one year and five months as REO before being sold to Bascom for $14.35m or $56,054.68 per door. This sale price is significantly below the credit bid amount and represents a 24.5% write down to the amount loaned and a 32.5% discount to the prior purchase price. Bascom paid $8,607,547 cash for the property and secured $10.85m new debt, again with Bank of America, for a total outlay of $21,603,518 and new debt of $36.7m.