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Commercial Real Estate News 9-11-12

Photo Credit: Commercial Executive Magazine

Renovation is planned by new owner Stratford Partner, LLC, Del Mar, Calif., for its newly acquired Chelsea Apartments, 57 N. Alma School Rd., Mesa. Cassidy Turley BRE Commercial represented Stratford in the deal. Quantum Realty Partners, LLC, represented the seller in the $3M ($39.5K/unit) transaction.

Photo Credit: AZRE

With plans to build an 8K SF addition, APS BioGroup acquired an 80K corporate headquarters, 2235 S. Central Ave., Phoenix, from Peiterson Limited Partnership. The company is moving into ownership and expanding from a 58K SF leasehold. The facility is just off I-17 at Central Ave. Cushman & Wakefield represented APS BioGroup, the sellers were self-represented.

Sales and Major Leases

Equinix, Inc., which owns multiple data center sites across the country, is selling 16 facilities, including its Phoenix facility, to a consortium of investment firms, 365 Main, Crosslink Capital and Housatonic Partners, for $75M ($267/SF). The Phoenix facility has 14K SF of colocation space.

Tempe Grove apartments, 909 W. Grove Pkwy., Tempe, has been sold to Fairfield Residential Inc., San Diego, Calif., for $39.5M ($97K/unit) by Archstone Tempe LLC. Marcus & Millichap Real Estate Investment Services handled negotiations. The 408 unit complex sold for $116K/unit in 2006.

Photo Credit: PR Newswire

Bascom Arizona Ventures picks up the Coldwater Springs Apartments, 301 units, for $27.2M ($90.4K/unit). The complex, 12115 W. Van Buren St., was built in 2007. CBRE handled the transaction.

Taylor Morrison spent more than $200K/lot to buy 67 finished home sites from Lennar Homes. The $13.4M transaction was for building sites in the Lone Mountain community, Lone Mountain Rd. and 56th St., Cave Creek. Pulte Homes has also purchased lots in the former State Lands parcel.

Richmond American Homes picked up 63 lots in Marana at Dove Mountain for $3.4M ($54K/lot). The finished home sites are near Tangerine Rd. and Dove Mountain Blvd. Land Advisors Organization handled the transaction.

Mesa Royale apartments sold for $9.7M ($64K/unit) to Hamilton Zanze & Company. The 152 units complex was sold by AIMCO Holdings, LP, using Cushman & Wakefield for both buyer and seller.

 

Photo Credit:Commerical Executive Magazine

The Cabana on 24th, a 149-unit apartment complex, located at 4341 N. 24th St., Phoenix, has sold for $9.0M ($61K/unit) to Pacific Transwest Real Estate, Inc., San Diego by Deco Communities. The complex, formerly known as Biltmore Center, was revamped by Deco prior to being placed on the market. Marcus & Millichap Real Estate Investment Services handled the transaction for both sides. The project was the first “cabana” makeover by the former owner.

 

Photo Credit: Diamondback Realty

Global CRES picked up the 67K SF office building at 1490 S. Price Rd., Chandler for $7.4M ($111/SF) in a bankruptcy sale from Mammoth Equities Property Management Group, Inc. The building was 65 percent occupied at time of sale. Voit Real Estate Services handled the transaction for buyer and seller.

Turnstone Office Park, 17786 N. Perimeter Dr., Scottsdale, has sold to Reliance Management at auction by US Bank. Reliance paid $7.2M ($110/SF) for the 65K SF office park. The site has four buildings ranging from 12K SF to 20KSF.

Everest Holdings and Walton Street Capital joint ventured the acquisition of a 101K SF office building in Thistle Landing Office Park, 4809 E. Thistle Landing Rd., Phoenix. The partners paid $6.7M ($67/SF) for the two-story structure formerly owned by Advantage Office Suites.

 

Photo Credit:Pacific West Land

Bell West Ranch, 16846 W. Bell Rd., Surprise, sold for $4.34M ($159/SF) to Pacific West Land. The property contains two retail buildings at 7K SF and 20K SF. O’Reilly Auto Parts has the smaller building, the larger multi-tenant space is 87 percent occupied. Cassidy Turley BRE Commercial handled both sides of the transaction. Bell West Ranch Shops, LLC was the seller.

Photo Credit: Cassidy Turley

A 35K SF flex space in the Scottsdale Airpark sold for $3.9M ($112/SF) to Kootenay Holdings Ltd. by Butherus LLC. The building, 8355 E. Butherus Dr., was 92 percent occupied at the time of the sale. Cassidy Turley BRE Commercial represented the buyers; the seller was self-represented.

Boxer Property acquired the Metrocenter Business Park, 10000 N. 31st Ave., Phoenix, for $3.2M ($25/SF) in an online auction from receiver JPMorgan Chase CMBS. At 50 percent occupancy, the approximate 130K SF office complex is across from Metrocenter Mall. The area has been a focus of interest and reinvestment since Carlyle Group took over the shopping complex.

 

Photo Credit:Commerical Executive Magazine

Pinchot Towers, a three-story complex at 3211 E. Pinchot Ave., Phoenix, has sold to an individual and personal trust for $3.1M ($30K/unit). The seller was an unidentified LLC. Marcus & Millichap Real Estate Investment Services handled the transaction for buyer and seller.

Communications Test Design Inc. is moving into at 238K SF Tolleson warehouse with places to hire 200 employees in the eight year, $10M lease deal. The company repairs and tests equipment for Cox communications, Inc., and other telecommunication companies. Jones Lang LaSalle handled the deal on the local side, Jackson Cross Partners LLC, King of Prussia, Penn., represented CTD.

Openings, Relocations and Expansions

The Valley is winning one and losing one when it comes to publicly-traded companies’ headquarters. Medicis is moving out of the country with its acquisition by Valeant, Montréal, Québec, but Heckmann Corp., currently in Pittsburgh, is moving its headquarters to Scottsdale following the Power Fuels merger. Power Fuels is based in Watford City, N.D.

Sizzler restaurant returns to the East Valley with a renovation of a former Taco Tote restaurant, 1050 Country Club Dr., Mesa. The renovation of the building will be the first of the new Sizzler updated design and menu in the Phoenix metro. The 185-seat eatery tops 6K SF and employs 80 people.

Photo Credit: Smashburger

Smashburger opens store number ten in far East Mesa at Power and McDowell roads in the Village at Las Sendas shopping center. The high-end burger eatery replaces the Caffé Boa pasta restaurant. The new location, one of five, is the first foray into the East Valley. Three of the new locations will be in the Mesa-Chandler-Gilbert area.

 

Photo Credit: Keeyool.com

Wingstop’s hit its lucky seven with a new location, 555 N. Scottsdale Rd., Tempe, and plans to open another Phoenix location, 5215 W. Indian School Rd., Phoenix, later this year. The Richardson, Tex.-based chain has six other locations in Phoenix, Chandler, Glendale, Mesa and Tucson.

Venerable Franklin’s Men’s Clothing Store, 5240 E. Broadway Rd., Tucson, is downsizing and revamping. The latest moves comes as the last remaining store in the local chain closes in 3,200 SF and reopens later this fall in 1,600 SF at the same location with the new name, George’s. The site near UofA will have more of a youthful inventory. The retailer has been in business since 1959.

Closures and Foreclosures

Photo Credit:The Arizona Republic

The Roosevelt Tavern is closing. Owner Matt Pool plans to keep the signature red brick building at 3rd St. two blocks south of Roosevelt St. With the expansion of Matt’s Big Breakfast, Giant Coffee (First St. and McDowell Rd.) and a branch Matt’s in Terminal 4 at Sky Harbor, the two do not have time to keep up with the tavern.

Yuma’s 4th Avenue Gym, 300 N. 22nd St., has opened its brand-new look with an interior and exterior remodel. The cardio room was expanded at 53 new workout machines were added along with on-machine, touch-screen computer access. Bathrooms and landscaping were also enhanced.