Commercial Real Estate News 5-7-13 | Arizona Builders Exchange

Sale Transactions

1. ?Capstone Mining Corp., Vancouver, British Columbia, Canada, paid $650M ($4/ton) for the 160M copper tonnage Pinto Valley Copper Mine and railroad in Gila County near the Pinal County line northeast of Florence. Seller BHP Billiton, Melbourne, Australia, has sold more than $5B in mining assets in the last 12 months. The sale price surprised some, as the Arizona State Geologist quoted a Reuters report saying Deutsche Bank estimated the mine?s value at $274M and UBS placed it at $500M.

2. ?IO Data Centers acquired its corporate headquarters building near Sky Harbor for $72M ($136/SF). The 507K SF building is the former LeNatures, Inc. bottling plant, 615 N. 48^th St., Tempe. IO opened in the facility in 2009. CBRE Global Investors was the seller in the deal. The facility offers secure colocation data center and a manufacturing center for modular portable data centers.

3. ?Pillar Communities LLC, Seattle, is moving into the stratosphere of luxury apartments in the metro with acquisition of the Crown Court apartments, 7900 E. Princess Dr., Scottsdale, adjoining TPC golf course. The $68.3M ($164K/unit) deal is with Equity Residential Trust, Chicago. The 416-unit complex is another of the Phoenix-area communities Equity is unloading as the REIT refocuses its acquisitions on West Coast and Atlantic Seaboard markets. CBRE handled the transaction.

4. ?Robert K. Swanson?s estate has acquired 15K acres near Prescott from the bankruptcy proceedings of Granite Dells Ranch LLC. The $31.3M ($2.1K/acre) deal covers a possible master planned community by former noteholder Arizona Eco Development LLC. Reportedly, the Swanson heirs are planning to serve as master developers for the long term investment.

5. ?Vancouver, this time, Washington-based Holland Partners acquired The Bellagio, 5635 E. Bell Rd., Phoenix, for $25.7M ($114.5/unit). The 202-unit community is the seventh in the investors? portfolio in the metro. Holland owns three apartments in Tempe, two in Scottsdale, one in Mesa, and one other in Phoenix. The seller is none other than Equity Residential Trust.

6. ?Canadian REIT Artis, Winnipeg, Manitoba, Canada, is back in the market?this time picking up the ASM America headquarters building in the Southbank Business Park near Sky Harbor. Artis bought 100 percent of the 130K SF Class A industrial/office building in a package deal for $68.8M. The other part of the package is half ownership in a 394K SF Uptown Denver office tower. The values of the two properties were not separated and sellers were not named.

7. ?Another Canadian, this time from Vancouver, B.C., acquired a mixed office and retail complex, 9325-9397 E. Shea Blvd., Scottsdale, for $16.3M ($220/SF). Talia Jevon Properties bought the 94 Hundred Shea complex from LNR Partners, Miami. The three building set-up totals 72.6K SF across four buildings?a two story office and a three-building strip mall; it?s 79 percent occupied. The complex was in foreclosure on a $21M note.

8. ?Gray Development Group, Phoenix, paid $13.2M ($35K/unit) to repurchase the Biltmore Club. The 378-unit apartment complex, owned by Weidner Apartment Homes, Kirkland, Wash., is on the corner of 24^th St. and Highland Ave.

9. ?The Arizona Daily Star reports CRE in the Old Pueblo topped $12.6M during the past week. The largest deals included:

• Cross Creek Riding Club LLC acquired residential property, 3511 N. Bear Canyon Rd., Tucson, from Northern Trust Co., Phoenix for $2.0M
• Kolb Office Park LLC bought 2090, 2096 and 2100 N. Kolb Rd., Tucson, from Kolb Plaza LLC, Tucson. $1.9M was paid for the commercial property.
• BMO Harris Bank sold 3667 W. T Bench Bar Way, Marana, to The McIntosh Family Trust, Oro Valley, for $1.6M.

10.? A&C Properties laid out $11.1M and acquired a pair of multi-tenant retail properties in Chandler and Surprise for $5.1M ($277/SF) and $6.0M ($221/SF). The first sale involved 18.2K SF of Riggs Marketplace (AZBEX, April 30), Riggs and McQueen roads, Chandler, anchored by a Fry?s Marketplace. The latter was 27.2K SF in the Village at Surprise, Litchfield and Bell roads. Murray and Gaunt Partners sold the Chandler piece; Pacific West Land sold the one in Surprise. Cassidy Turley represented A&C in the Surprise transaction.

11. ?Tierra Properties VII, Prescott, now has a Mesa office building, 6402 E. Superstition Springs Blvd. Westwind Holdings LLC, Chandler, received $7.1M ($132/SF) for the 64K SF property. Commercial Properties Incorporated handled the deal for both parties.

12. ?NIA Horizon wrapped up several deals totaling more than $6.4M. Major sales included:

• Desert Capital Venture LLC acquiring 37K SF of retail space for $3M ($81.42/SF), 17014-17092 W. Bell Rd., Surprise, from C-III Asset Management.
• Endovascular Medical, LLC, the buyer, used NAI Horizon in the acquisition of 14.5K SF for $1.5M ($103/SF), 333 N. Dobson Rd., Chandler. Marcus & Millichap represented the seller, Stearns Summit Holding Company, LLC.
• NAI represented seller PMC Holdings, LLC, in a deal for 22.9K SF of industrial space, 485 W. Vaughn, Tempe. Buyer 85 LLC paid $1.5M ($65/SF) for the building. Lee & Associates represented the buyer.

13. ?The primary entrance for Morrison Ranch, Gilbert, sold for $6.38M ($164K/net acre) to Higley & 202 LLC. As the name says, the 39 net acres are plopped down next to the Higley Rd./Loop 202 interchange in the neighborhood of Santan Village Mall. Moat Limited Partnership was the seller. Cassidy Turley handled both sides of the transaction for the business park site.

14. ?Ryland Homes bought land for 107 single family homes on 7.2 acres, Loop 202 and E. Warner Rd., Gilbert. The builder paid $5.6M ($779/acre; $52.5K/entitled unit) for the Cooley Station parcel. Communities Southwest was the seller. Pacific Land Company represented both parties.

15. ?Cole Capital Partners bought a Phoenix Walgreens, 1315 E. Chandler Blvd. for $3.9M ($258/SF). The 15.1K SF building was built in 2001. Bradner Smith & Company was the seller of the two acre parcel. Marcus & Millichap represented both sides in the transaction.

16. ?CBRE handled both sides of the sale of a Tucson office building, 3285 E. Hemisphere Loop, from Government Properties Income Trust to Modular Mining Systems, Inc. The 31K SF building on 2.8 acres sold for $2.2M ($71/SF).

17. ?Bee Line Transportation, Tucson, an operator of school and charter buses is moving into a 24K SF industrial space, 4002 W. Lincoln St., Phoenix, from its 8K SF facility. The company paid $1.9M ($78/SF) for the new building and six acres. Its current facility is in escrow. BB Property Management was the seller. Newmark Grubb Knight Frank handled both sides of the transaction.

18. ?The Pan-American Elementary Charter School has picked up a school building for $1.0M ($42/SF) at 2100 W. Indian School Rd., Phoenix. The 24.4K SF structure has 16 classrooms, a cafeteria, theatre and administrative offices?have served seller Academy of America school for nearly nine years. Pan-American is a K-6 school based in Phoenix for the past ten years. ORION Investment Real Estate handled the transaction for both sides. The school plans minor cosmetic fixes before school opens in the Fall.

19. ?Circle K is readying another of its new design C-stores and gas stations for construction at the corner of 27^th Ave. and Camelback Rd., Phoenix. The company picked up the 64K SF site from AutoNation for an undisclosed price. SRS Real Estate Partners represented the seller. SR Commercial Real Estate represented the buyer.

20. ?A distressed 14 unit apartment complex, Center Apartments, 644 N. Center St., Mesa, sold for $445K ($31.8K/unit). The short sale, between two private investors, was handled by Marcus & Millichap Real Estate Investment Services. The new buyer plans a major remodel of the property?which adjoins the soon-to-be-new spring training home of the Oakland A?s?including updated interior floors, cabinets, countertops and appliances. The owner intends to upgrade to a higher grade of apartment. No GC has been selected.

Lease Transactions

21. ?Silicon Valley Bank is practically still unwrapping new computers from its 2012 opening in ten-story Hayden Ferry Lakeside I, Rio Salado Pkwy. at Mill Ave., Tempe, when it signed a 50 percent space expansion. The highly-touted, Arizona Commerce Agency/GPEC effort to bring in the bank?s technology and operations center last year came with a promise of additional growth ?within a few years.? Six months after opening, Silicon Valley Bank is adding 25K SF to its original 50K SF. Jones Lang LaSalle handled negotiations for the new space.

22. ?Velocity Retail Group recently signed 130K SF in new leases. The major pacts include:

• Goodwill of Central Arizona, 36K SF, 6750 W. Peoria Ave., Peoria
• Goodwill of Central Arizona, 30K SF, 1625 W. Camelback Rd., Phoenix
• Gold Medal Gymnastics, 24.5K SF, 455 E. Warner Rd., Chandler

23. ?Taco Guild?the new concept from Z?Tejas?has inked a lease in the Old School 07 church, 7^th St. and Osborn Rd., Phoenix (AZBEX, May 3^rd). Old School is Wetta Ventures? historic preservation-based adaptation of the building into a multi-tenant retail use. Starbucks (AZBEX, April 2^nd) has signed for another portion of the space. Cassidy Turley handled the lease negotiations for Taco Guild.? RSP Architects and Chasse Building Team are handling the design & construction.

24. ?WearPro Inc. leased 20K SF, 3260 E. 36^th St., Tucson. Park Avenue Corp. is the landlord. Picor Commercial Real Estate Services represented both tenant and landlord in the transaction.

25. ??Dollar Tree keeps sprouting metro area branches, this time with a 10K SF decade-long deal at 4425-4465 E. McKellips Rd., Mesa. The retailer takes nearly a third of the 30K SF Falcon Gateway strip mall sharing the site with a neighboring Walmart and Staples. Strategic Retail Group represented landlord CNA Enterprises; SRS Real Estate Partners represented Dollar Tree.

26. ?Mesa officials have announced three new tenants for AZLabs, the former Air Force Research laboratory near Phoenix-Mesa Gateway Airport. The startups?one from academia and two from Department of Defense contractors?are not named per security requirements. The businesses move into 4.5K SF in the ten-building, 6.8 acre complex this year. Alion Science and Technology Corp. manages the facility for the city.

Closures

27. ??Heraeus Materials Technology North America LLC is cutting back its 1980s Silicon Desert semiconductor facility and relocating its manufacturing to Singapore. About 190 workers in the facility will lose their jobs in the consolidation. The company says 60 will remain employed. The move is a result of a restructuring by the German company due to economic conditions.

28. ? In the future, the only golf carts driven on Ahwatukee Lakes Golf Club may be by seniors getting from condo-to-condo. Owner Wilson Gee is plugging the holes May 5^th after four years of seeking an alternative to keep the facility opened. The closure affects only the Lakes executive golf course and none of the other four courses in the area. New plans are not finalized, but neighbors have already opposed any type of condominium development on the fairways. Gee said he is pursuing a senior housing development proposal (AZCentral premium content).

Source: http://azbex.com/commercial-real-estate-news-5-7-13/

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