News Ticker

Commercial Real Estate News 8-7-12

Economic Development

Phoenix/Mesa Gateway Airport’s $22M Terminal 1 remodel finishes just in time to welcome Frontier Airlines as the airport’s third carrier—joining Allegiant and Spirit—at Phoenix/Mesa Gateway Airport. The discount airline initiates flights from Mesa to Denver International Airport on November 15.

Sale Transactions

 

Photo Credit AZRE

Andante Apartments, 15801 S. 48th St. and Chandler Blvd, Phoenix, has sold for $61.3M ($106K/unit) to Waterton Associates, Chicago. JPMorgan Real Estate was the seller. The luxury complex has 576 units and was built in 1999 and 2001. CBRE handled the transaction for buyer and seller. The buyer plans upgrades to the newly acquired property.

Desert Flower assisted living facility, 9185 E. Desert Cove, Scottsdale, has been sold by BDC Advisors LLC to Fortress Investment Group, LLC, New York City. The 102 unit center sold for $24.6M ($124K/unit).

Photo Credit: AZRE

CBRE brokered sales of six Phoenix area apartment complexes with 1,744 units for an undisclosed price from UDR Inc. to a fund managed by DRA Advisors LLC, New York, and Milestone Group LLC, Dallas. As part of the deal, UDR sold properties in Florida, Texas and Virginia to the group. The Valley complexes are:

  • Finisterra, 356 units, 1250 W. Grove Pkwy, Tempe
  • Luimiere, 248 out of 320 units, 1100 N. Priest Dr., Chandler
  • Residences at Stadium Village, 382 units, 16485 N. Stadium Way, Surprise
  • Sierra Canyon, 236 units, 17500 N. 67th Ave., Glendale
  • Sierra Foothills, 322 units, 13601 S. 44th St., Phoenix
  • Waterford at Peoria, 200 units, 14109 N 83rd Ave., Peoria

The foreign real estate investor invasion continues with Optimus US Real Estate Fund, Calgary, Alberta, paying $16.2M ($83K/unit) for the 194 unit La Costa apartments, 1820 W. Lindner Ave., Mesa. JDM Partners LLC sold the development through Hendricks & Partners.

 

Photo Credit: Apartment Home Living

Smoke Tree Apartments, 31st and Peoria avenues adjoining Metrocenter, Phoenix has been acquired by BH Properties LLC for $7.25M ($26K/unit). The 280 unit complex joins five other properties BH recently acquired in Phoenix and one in Tucson. The new owner plans “moderate renovation” to stabilize the property and protect the investment. Transwestern represented the seller, Weiner Family Partnership, in the deal.

Baseline Village, 35th Ave. and Baseline Rd., Phoenix, was sold by Laveen Village Center Acquisitions LLC to Verus Partners LLC for $2.7M ($27/SF). SRS Real Estate Partners and Voit Real Estate Services represented the seller of the 100K SF complex. Occupancy at the time of sale was reported at 6 percent.

Carriage Lane Plaza, 2655 W. Guadalupe Rd., Mesa, a 45K SF shopping strip, sold for $1.7M ($38/SF) to Carriage Lane LLC, New York. Cassidy Turley BRE Commercial represented the seller, Coastline RE Holdings Corp.

 Orion Investment Real Estate brokered a deal to sell The Marquee, 620 N. 2nd Ave., Phoenix for $1.5M ($44K/unit). The downtown complex was sold by a private individual to Affordable Housing Developers.

Expansions, Relocations and New Store Openings

Fox Restaurant Concepts is moving to 4455 E. Camelback Rd. in The Park complex, Building B of the five-structure Arcadia setting. With the move comes an undisclosed concept for a 6.4K SF restaurant in the office building. Phoenix has approved outdoor seating and alcohol sales for the restaurant.

Photo Credit The Republic

Matt’s Big Breakfast is making room for more people to sit down, moving from its cramped corner on First St. to the 825 N. First St. location formerly held by Verde at the corner of E. Garfield St. The new digs will seat twice as many people as the old restaurant.

 

Photo Credit:World of Beer

World of Beer is readying its Tempe opening August 8 to time with the return of students to ASU. The pub features more than 500 beers by the bottle and 50 on top. It takes over the former American Apparel historic Tempe National Bank location, 526 S. Mill Ave. at Fourth St.

Queen Creek Olive Mill has opened a retail store in Kierland Commons. Oils and Olives is targeting Labor Day weekend for its grand opening. The outlet is the first of several locations planned by the grower. The restaurant carries other Arizona-made food products and offers an olive oil tasting bar.

Photo Credit: Stacie Spring/Tribune

Purple and lime green exercise equipment are showing up throughout the Valley as YouFit Health Club opens more studios, including a new Chandler location, 4991 S. Alma School Rd. A Gilbert location, 706 N. McQueen Rd. will open in a few weeks. Additional locations are planned for Tempe, Mesa, Peoria and Tolleson. Already, the economy-priced gym has two Phoenix locations, one each in Glendale and Scottsdale.

Closures and Terminated Projects

 

Photo Credit: A.E. Araiza / Arizona Daily Star

Cactus Moon, Broadway and Craycroft, Tucson, is closing its doors. Opened in 1989, the 11.8K SF country music night club has suffered from the economic turndown. Larsen Baker, LLC is the property manager and had not yet received formal notice of the closure, although it knows the club has closed and shut down its website.

 

Photo Credit: Scott Blair via Southwest Contractor

Evergreen Development Co., Inc. and the Hotel Monroe receiver have walked away from a potential deal on the building, Phoenix Business Journal reports in premium content. Evergreen had been trying to buy the empty, environmentally-damaged building at Central Ave. and Monroe St. from ML Manager LLC, the receiver for the bankrupt Mortgages Ltd. The dead deal is considered a “technical termination” that could be recrafted in the future.