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Commercial Real Estate News 12-20-16

Credit: Orion Properties

cre1Sales Transactions

1. Oaktree Capital Management L.P.  is teaming up with Cypress Office Properties to buy almost all of the office space in the Renaissance Square towers located in downtown Phoenix. The joint venture partners will pay an estimated $152M ($157/sf) to buy the project in a deal set to close this month. The two-building, office plaza is comprised of the 25-story, 494KSF One Renaissance Square, 2 N. Central Avenue, and the 28-story, 475KSF Two Renaissance Square at 40 N. Central Avenue. The structures are owned by two limited partnerships in a fund managed by Hines Interests Limited. The sale is being brokered by Adam Edwards, K.C. Scheipe and Justin Shepherd of Eastdil Secured. The investment is being operated by Cypress Office Properties.

2. Columbia Property Trust Inc. exited the Phoenix market as it sold the SanTan Corporate Center for $58.5M to City Office REIT. The Class A office property near Ray and Price Roads, which consists of two office buildings totaling 267KSF, is fully leased. Adam Edwards, K.C. Scheipe, Mike Kathrein and Justin Shepherd from Eastdil Secured represented Columbia Property Trust in the deal. City Office REIT did not have a broker in the deal.

3. Hines has acquired the Southwest Industrial Center, a Class A industrial park located in Phoenix’s Southwest Valley submarket in Phoenix, Arizona, from Hillwood Property Trust for $47.3M. The project consists of a 684KSF, 32-foot clear logistics warehouse and an adjacent development parcel capable of accommodating a second building of 567KSF. The existing building is 35 percent leased.

4. 3rd Avenue Investments, LLC, has purchased Madera Court, a 561-unit apartment community at 8135 N. 35th Ave. and 3221 W. El Camino Dr. from B.H. Properties for $36.25M. Jim Crews and Brett Polachek from the Cushman & Wakefield Phoenix office represented the seller.

5. Ventana Medical Systems, Inc., closed on 53.6 acres at Innovation Park in Oro Valley for $18M ($336/acre). The land is adjacent to the company’s current facility at 1910 E. Innovation Park Drive and also in an Economic Expansion Zone (EEZ) in Oro Valley. The seller, Venture West, was represented by Tim Healy and Bob Delaney with CBRE in Tucson.

6. Phillips Edison Grocery Center REIT II Inc., has announced the purchase of Alameda Crossing, a 132KSF grocery-anchored shopping center in Avondale, Ariz.. The financial details of the transaction were not disclosed.

7. CBRE has completed the sale of CVS Plaza at South Mountain at 1615 – 1635 E. Baseline Rd. in Phoenix, Arizona and negotiated the spinoff of the CVS Pharmacy.  The sale included an approximately 14KSF retail strip center and a 14KSF CVS Pharmacy.  The first sale commanded a price of $5.9M. Total consideration for the re-sale of the CVS was $4.43M. Andrew K. Fosberg with CBRE’s Phoenix office represented the buyer on the initial sale that included the strip center and CVS and the seller on the CVS-only sale, NW Acquisitions, LLC. The seller on the initial sale was represented by John Reva and Mathew Berres with JLL and the buyer for the CVS was represented by Mike Foster with Foster & Company.

8. A 26.7KSF facility at the University Tech Center, sold for $3.8M in an off-market transaction, and will be used as a tech firm’s headquarters, according to Lee & Associates. iT1 Source chose the offices, at 1860 W. University Dr., as its headquarters for its proximity to ASU. An LLC controlled by iT1 source bought the building from University Tech Center LLC. Bill Blake and Colton Trauter of Lee & Associates facilitated the transaction for the buyer, 1860 W. University Drive LLC.

9. Precision Fleet Services has purchased an 81KSF industrial warehouse at 10857 N. 95th Ave. in Peoria for $3.9M. Chad Ackerley of Commercial Properties Inc., represented the buyer. Tom Knaub of Colliers International represented the seller, Peoria Mini Storage II LLC.

10. Maracay Homes closed on a $3.8M purchase of 93 homesites for courtyard cluster single-family detached homes in the Rio Paseo Cottages community on W. Encanto Blvd., north of Interstate 10, in Goodyear. David Cornwall, Chris Barr and Joseph Schram of Quantum Holdings, LLC, were the sellers’ representive, WQC Rio Paseo Investors IV, LLC.

11. 64 of the 66 condominium units at Mission Villa, 3001 N. 32nd St., Phoenix, have sold for $3.52M. or per unit. The buyer was Trinity Apartments of Canada. The sellers were the Romeli Group, LLC, Allen Iseri and Patricia F. Iseri, Supra Color Enterprises and Midence Family Limited Partnership. Brian Smuckler and Jeff Seaman with CBRE’s Phoenix office represented both the buyer and the seller in the transaction.

12. Turner Crossing at Southbank, a 20KSF single-tenant flex industrial property located at 3401 E. Harbour Dr. in Phoenix, Arizona has sold for $3.03M. Turner Real Estate Investments was the seller. The buyer was Portex Partners. Kelly Betpolice and Peter Steigleder of Brookfield Partners represented the buyer.

13. El Pollo Loco, 3781 W. Ina Rd., Marana, sold for $2.56M ($771/sf) in an investment sale. The 3,320SF former Burger King restaurant site was sold and converted by WKS Restaurant Group in 2015 to El Pollo Loco. Vahn Saroians with Coldwell Banker in Los Angeles represented the private buyer.

14. A 14.5KSF industrial facility in the Scottsdale Airpark sold to SWAKE Holdings LLC, according to ORION Investment Real Estate, which represented SWAKE. The industrial warehouse property at 15210 N. 75th St. in Scottsdale, was sold for $2.1M ($145/sf). The seller was represented by Mike Kane at Colliers International. Nick Miner, CCIM, ORION Investment Real Estate, represented the buyer.

15. A 7,400 SF contemporary live/office building at 116 W. McDowell Rd. has sold for $2.06M ($278/sf) in an all-cash transaction. Lee & Associates’ Steve Farrell negotiated the transaction on behalf of the seller, Oleskow Haan, LLC. Chris Walker of Cushman & Wakefield represented the buyer, Sunbelt Land Holdings, LP.

Lease Transactions

16. The Phoenix office of JLL has completed five new leases for Café Rio, expanding the fast casual Southwestern-style restaurant into multiple new locations across the metro Phoenix market. The new restaurants have opening dates ranging from October 2016 to summer 2017. Locations include:

– 4095 S. Gilbert Rd. (at Ocotillo Rd.) – 2,670 square feet, opened Oct. 20.

– 4747 E. Cactus Rd. (at Tatum Blvd.) – 2,501 square feet, opened Nov. 10.

– 5150 S. Rural Rd. (at Baseline Rd.) – 2,785 square feet, scheduled to open this month.

– 7439 W. Bell Rd. (at 75th Ave.) – 2,000 square feet, scheduled to open Summer 2017

– 2748 S. Signal Butte Rd. (at Guadalupe Rd.) – 2,880 square feet, scheduled to open Summer 2017

17. NAI Horizon represented the landlord in a sublease and long-term lease for a HVAC contractor TD Industries, Inc., at 1888 E. Broadway Road. NAI Horizon negotiated a short-term, $177K, representing CEC. They then represented Tempe Partnership in the $1.423M new lease of the 26KSF building for TDIndustries, Inc.

Openings

18. The fourth commercial office building at SkySong, The ASU Scottsdale Innovation Center, is open for business and already 50 percent leased. The building is also expected to be LEED Silver Certified by the U.S. Green Building Council. Pre-leasing is underway, with Andrew Cheney and Craig Coppola of Lee & Associates serving as brokers for the project.

Closures

19. Macy’s is expected to leave Tucson Mall next year as the company struggles with slow sales and online competition. Earlier this year the company announced plans to close 100 stores. Morningstar Credit Ratings LLC identified the Tucson Mall location as vulnerable. Macy’s has a second Tucson location at Park Place.

20. Jobot Coffee and Diner on Fifth and Roosevelt streets will close near the end of December. Jobot’s last day of service will be either Dec. 23 or 24. The business must vacate by Dec. 26.

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