Source: Business Real Estate Weekly of Arizona
A parcel located near the southwest corner of 44th Street and Camelback Road in Phoenix that was previously targeted for development as part of a mixed-use project is now being planned for an upscale apartment community with 320 units. JLB Partners L.P., Irving, Tex. is under contract to acquire the 6.8-acre site in a deal that is contingent on zoning approval.
Sources say JLB Partners will pay just under $12M ($1.8M/acre) to buy the property, south and west of The Londen Center. The apartment site is being sold by Parkway Bank & Trust Co. The real estate is collateral on a loan that is in default which has an original principal balance of $37 million.
The site being sold to JLB Partners is part of a 9.23-acre parcel that Grace Communities intended to develop as a mixed-use project that was supposed to include restaurants, retail shops, residences, office space and a boutique hotel. Those plans were shelved in 2007 after the Valley real estate market and the national economy tanked.
The 2.41 acres of additional land, which is occupied by multiple commercial buildings and single-family residences, is expected to be sold in one or two separate transactions. CBRE has the marketing assignment. The sale to JLB Partners is anticipated to close by year-end.
Some of the tenants in the buildings are expected to remain in place until the sites are ready for redevelopment. The pads are eventually expected to be developed for office and retail users. The parcel being sold to JLB Partners has 1.71 acres dedicated for open space.
Kevin Ransil, JLB’s regional partner in Arizona, says the company hopes to start construction during the third quarter 2013, with opening scheduled to follow 12 months later. Gromatsky Dupree & Associates (GDA) has been hired to design the multi-family community. JLB to serve as contractor.
The multi-family community is one of three apartment projects JLB Partners has on the drawing board in the Phoenix market. In February, BREW reported JLB Partners planning to develop a 360-unit rental community at the northwest corner of Scottsdale Road and Kierland Boulevard in Phoenix on the old Robb & Stuckey site.
JLB Partners also plans to develop, Portales Place, a 369-unit apartment complex north of Scottsdale Fashion Square, located at Goldwater Boulevard and Highland Avenue. Construction set to start by year-end.
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