News Ticker

Commercial Real Estate News 10-09-12

1. In Phoenix Business Journal premium content, an Arizona Court of Appeals decision may mean relief for commercial real estate owners losing property in foreclosure. Investment real estate borrowers are not currently protected from coughing up the difference between loan and property values. The court, reports the Journal, found that lenders may not be proving the deficiency. Though not retroactive, the ruling benefits borrowers crushed by the recession.

Sale Transactions

2.City Scape at Lakeshore, a 214-unit Class A apartment project, 4630 S. Lakeshore Dr., Tempe, sold to Fairfield Residential Company, LLC, for $22.7M ($106K/unit). ORION Investment Real Estate closed the deal for the buyer. Fairfield recently purchased The Grove in Tempe for under $40M. The seller was a private Arizona company repositioning itself for apartment purchases in Texas and Arizona.

3. Alliance Residential and partner AEW Capital Management sold the Broadstone Ahwatukee Fairways, 310 units, 13220 S. 48th St., Phoenix, for $27.2M ($88K/unit) to Clorich, San Diego, Calif. The complex is 92 percent occupied and has one and two bedroom apartments. This is the third Broadstone complex Alliance Residential has sold in recent months.

4. Two local investors formed Intravest 2851 Kathleen, LLC to purchase a 103K SF flex space building at the 2851 W. Kathleen Rd., Phoenix, for $19.1M ($185/SF). JVC Holdings LLC was the seller and used DAUM Commercial Real Estate Services as the broker. The space is occupied by a company owned by the sellers and Climatec, Inc., an HVAC equipment supplier. The deal included an additional 10.3 acres of land capable of a 130K SF building.

5. Agave Apartments has been sold by Crown Realty & Development, Inc. for $7.4M ($54K/unit). The 137-unit complex, 1718 S. Jentilly Ln., Tempe, has been acquired by Omni Real Estate LLC. Hendricks & Partners represented both sides of the sale.

6. Precise Metal Products picked up a 101K SF industrial building, 4534 N.44th Ave., Phoenix, for $5.5M ($65/SF). The move provides the metal manufacturer with more space than its current 39th Ave. and Indian School Rd. location. Newmark Grubb Knight Frank represented the seller, Cassidy Turley BRE Commercial represented by buyer.

7. Yavapai Downs may be resurrected with the announcement by the trustee that a $5.5M deal has been struck with Prescott Valley Race Course LLC, led by Gary Miller, president of the state horsemen’s group. The sale must be approved by the bankruptcy court and lender USDA. If the court green lights the deal, racing could be back in action by Memorial Day 2013.

8. Best Western Metro Center Inn, 8101 N. Black Canyon Hwy., Phoenix, a 147-unit motel with 4K SF meeting space, sold to New Age Hospitality, Inc., for $4.8M ($32.7K/unit). newGen Commercial Realty represented both the international investment group selling the property and the buyer.

9. Howard Sahnow, Forest Grove, Ore., purchased the 92 unit Senior Cottages of Apache Junction, 251 N. 114th St., for $4.3M ($47K/unit) from Steadfast Companies. Sahnow is an owner of several senior residential facilities.

10. Garnett Capital (Arizona) Corp purchased 135K SF for $2.0M, 2000 Place Medical Plaza, 2000 East Southern Ave. GPE Companies was the broker in the transaction.

Lease Transactions

11. Another empty big box is filling, this time at 44th St. and Thomas Rd., Phoenix, as Burlington Coat Factory moves into a 52K SF former Ultimate Electronics storefront. A fall opening is planned. SRS Real Estate Partners handled the deal for Burlington and landlord Arcadia Crossing LLC represented itself.

12. Four restaurant concepts under one roof are slated for a November opening in 13K SF, 3500 E. Sunrise Dr., Tucson, in a first-in-the-U.S. concept for Five Palms LLC. CBRE handled the lease for landlord Landmark Assets, LLC, Scottsdale. Sylvester Realty & Investments, Tucson, represented the tenant. A fine-dining establishment, Five Palms, will be the centerpiece. Dovino, a gourmet food and wine shop; Nino’s Bar and Grill, casual dining inside will also feature separate patio dining. The Five Palms concept is modeled after the group’s restaurants in San Carlos, Obregon and Hermosillo, Sonora, Mexico.

13. VegCo Market leased 12K SF near McDowell Rd. and Central Ave., Phoenix, for a plant-based supermarket planning an early 2013 opening. The first-of-its-kind market features grocery, deli, bakery, demonstration kitchen and a classroom—and all products are plant-based. An indoor demonstration garden is also part of the offerings.


14. A hospice provider leased 8.3K SF at First Financial Plaza, 1550 South Alma School Rd., Mesa, with GPE Companies representing the landlord. The company also represented a landlord in a deal to leas 9.8K SF to a charter school. In Scottsdale, the firm leased 5.7K SF to an administrative office, 3200 N. Hayden Rd.

Mergers and Managers

15. One Thomas, a 98K SF 13-story office tower is now managed by Evergreen. The building is undergoing redevelopment—including conversion of the lobby area into a mix of internal and street-focused retail space. The property is owned by One Thomas LLC.

16. In November, employees of three Phoenix firms will move into a new 14K SF location, 3333 E. Camelback Rd., Phoenix and assume the name REDW. Miller, Allen & Co PC and Abalos & Associates PLLC, both in Phoenix, have merged with the largest locally-owned Albuquerque accounting firm, REDW.

Openings and Closings

17. With the opening of Gypsy Bar, the Phoenix CityScape, 1 E. Washington St., is 100 percent leased in its retail stores on the street and second levels downtown. The new upscale nightclub will mix themed parties and vaudeville acts rotating around its dance floor, restaurant, and video game arcade. The entertainment venue intends to be somewhat mainstream catering to a broad, upscale, general audience. (AZCentral premium content)

18. Tucson’s Ron’s Produce Co.
, 1605 E. Apache Park Pl., closed without warning October 5th. Company founder Ron Sternberg said it was for his planned retirement. The 24K SF warehouse and equipment will be liquidated ending a 35 year business venture. Ron’s had served as a niche, specialty produce wholesaler for smaller restaurants an outlets.