Tag Archives: Cassidy Turley

Rendering courtesy of Gensler

Wentworth Property, Northwood Investors to redevelop 234KSF office

Wentworth Property Company (WPC) and Northwood Investors purchased a ±234,446 square foot office project at 1665 W. Alameda Drive. The partners had the vision to see the unique potential in the property and purchased it for $13.83M with plans to spend $20 to $25 million on redeveloping the project. They selected Gensler as the architect, Kennedy Design Build, LLC as the general contractor and Cassidy Turley as the leasing agent.

The Cassidy Turley team of Executive Managing Directors Jeff Wentworth and Mike Beall and Vice Presidents Sean Spellman and Chris Walker represented WPC during the property purchase from FNB Fountainhead, LLC.

“This property was the perfect vehicle for us to come in and reimagine it as an open, creative office environment where we can create an interconnection between indoor and outdoor environments,” said Jim Wentworth, Jr., Principal. “Even the most conservative companies want this type of office space because they understand how the work environment plays a major role in attracting and retaining employees, productivity and synergy within their company.”

The team plans to start the redevelopment of the 1665 Alameda project this year with availability by mid-2015. “There is enormous demand in this submarket for unique office space for large tenants,” said Cassidy Turley’s Jeff Wentworth. “This property gives us the opportunity to deliver innovative, flexible office space perfectly designed to function for tenants from 30,000 to 235,000 square feet.  It provides 16 to 20’ ceiling heights, 7/1,000 SF parking and because of the connection between the indoor and outdoor spaces there is the opportunity for functional space not under roof.”

The single-story existing 1665 Alameda building was constructed in 1986 and has been used by multiple tenants until the recent purchase of the property. The challenge was to significantly transform the building image and regain its stature as a viable Class A office environment. WPC and the Gensler design team saw the opportunity to transform the site and building to develop an amenity–rich, creative workplace environment that embraces its freeway location with direct visibility from I-10.

“Renovating existing building assets is an exercise in sustainability allowing us to extend their life and usage.” says Beth Harmon-Vaughan, Managing Principal of Gensler’s local Phoenix office. “The 1665 project is in a great location and provided a strong foundation for impactful design upgrades.”

Specific concept strategies focused on heightening the building image, creating a unified appearance, developing personalized entry elements for tenants, adding shared amenities to the site, enhancing daylighting opportunities, and creating indoor/outdoor connections. The existing U-shaped footprint allowed for a functional courtyard space in-between the building volume to connect the interior with the exterior and create usable year-round spaces. The existing mansard roof and visually low façade will be eliminated and a new façade proposed.

Architectural entry elements create a new frontal projection to the street, a fluid architectural language and significant visual markers for branding and tenant signage. Proposed building materials include integral colored cementitious panels, aluminum composite naturally finished metal panels, steel and glass elements, and textural gabion wall features integrating the new façade with the courtyard concept in a seamless fashion. New building amenities include bocce ball, café dining, fitness center, outdoor shaded seating, water features, and a unique rain garden concept that uses sustainable and indigenous landscape.

“Creating a fresh identity and amenity-rich creative office environment in Tempe will help ensure attraction and retention of top tenants in the market.” says Harmon-Vaughan.

WPC partnered with Northwood Investors and purchased Discovery Business Campus (DBC) in November 2011. DPC is a 136 acre campus with 800,000 square feet of existing office space and up to 1.6 million square feet of additional, entitled Class A office, hotel and retail development in Tempe. WPC is currently developing a 237,000 square foot build-to-suit facility for Shutterfly, Inc. at DBC, slated for completion in April 2015.

Scottsdale Executive Office Center, Courtesy of Cushman & Wakefield of Arizona

Scottsdale Executive Office Center signs new tenants

Cushman & Wakefield of Arizona, Inc. negotiated 21,085 square feet of new leases at Scottsdale Executive Office Center, 15880, 15990 and 16100 N. Greenway-Hayden Loop.

Ingram Micro, Inc., a Santa Ana, Calif.-based firm, opened a technology incoming call center and occupies 14,926 SF. PHX Architecture relocated from a central Scottsdale location into 6,159 SF.

“The Scottsdale Executive Office Center meets the needs of tenants who require dense floor plans with 5.77:1000 ratio parking to go with it,” said Chris Nord, Associate Director with Cushman & Wakefield of Arizona, Inc.  “The bay depths allow for efficient floor plans and a 1 percent load factor keeps the required size of the premises smaller than competing office properties.”

Nord and Michael White of Cushman &Wakefield represented the landlord, Perry Investment Trust No. 1. Mark Seale of Cassidy Turley represented Ingram Micro. Victor Gilgan and Scott Fey of Omni America, LLC represented PHX Architecture.

Both tenants took occupancy this month, bringing the property to 87 percent leased. Other tenants include Trivita, Stella & Dot, MWA Intelligence, and Landmark Education.

Gold Canyon Candles signs lease at 6205 S. Arizona Ave., in Chandler, Ariz.

Gold Canyon Candles signs 3-year lease in Chandler

An Arizona-based company signed a 36-month lease for 42,000 SF at the Gold Canyon Candles Building at 6205 S. Arizona Ave. in Chandler, Ariz.

Lee & Associates principals TJ Swearengin, Stein Koss, SIOR and Tom Louer, SIOR, represented the landlord, Gold Canyon Candles, which occupies a majority portion of the 212,070 SF warehouse building. Andy Cloud with Cassidy Turley represented the tenant, Barlow Company Inc. of Tolleson, Ariz.

The property features the original 122,366 SF with an additional 99,704 SF addition added in 2008. The warehouse building is situated on 19.81 acres near the intersection of Riggs Rd. and Arizona Ave. in Chandler and is close to I-10.

First Commons at West 10

First Commons at West 10 sells for $6.08M

Cassidy Turley announced the sale of First Commons at West 10, a ±99,528, institutional-quality, multi-tenant industrial complex. Located at 4625 and 4635 W. McDowell Road, the two-building, general industrial warehouse buildings were purchased by Enright Capital, Calgary, Alberta for $6.08 million. The seller was MDI Capital.

Cassidy Turley Senior Managing Directors Bob Buckley, Tracy Cartledge and Steve Lindley negotiated the transaction on behalf of both the buyer and the seller.

“Although First Commons at West 10 was built over a decade ago, the property includes design and functionality that makes it competitive with the most modern multi-tenant industrial properties in the market,” said Mr. Buckley.

Built in 2002, the complex sits on 6.88 acres just north of Interstate 10 at 45th Avenue and includes the 44,637 SF north building at 4625 W. McDowell and the 54,890 SF south building at 4635 W. McDowell. The property was ±60% leased at the time of sale.

Southern Plaza, WEB

California investor buys retail plaza for $11.9M

Cassidy Turley announced that Amargosa Palmdale Investments, LLC of Beverly Hills, Calif., purchased Southern Plaza, a ±75,233 square foot neighborhood shopping center located at 6036 S. 7th Avenue for $11.9 million.

 

Executive Managing Directors Ryan Schubert and Michael Hackett with Cassidy Turley’s Retail Capital Markets Group represented the seller, Park West Development of Scottsdale, Ariz.

 

“Southern Plaza offered the buyer the opportunity to own a stabilized, high-volume grocery center with the potential to add value through ground leases or development of additional outparcels,” Schubert said. “The Food City performs very well and currently accounts for over 73% of the center’s total square footage.”

 

Built in 2007, Southern Plaza was 95.3% occupied at the time of sale. The property is anchored by a ±55,014 square foot Food City (Bashas’) grocery store and includes ±20,219 square feet of additional shop space and two developable pads. In addition to Food City, Southern Plaza’s tenant mix includes Payless ShoeSource, Grand Mart, Pizza Patron, AA Insurance, Rapido Tax and locally owned operators of a hair salon, nail salon and dentist. Southern Plaza is located in densely populated trade area that services over 102,000 residents within a three mile radius of the center.

Coldwater Depot

Industrial Sector Suits Up

If Q1 reports are any indication, the Phoenix metro’s industrial sector is suiting up for an interesting year. Intel finished construction on its 2.2MSF manufacturing fab in Chandler, Ariz. It sits vacant with hopes for adaptations into a manufacturing facility for chips.

The 700KSF Buckeye Business Center is under construction without any tenants. Last year, Turner Spectrum Ridge broke group on eight industrial buildings that totaled 120KSF of space in Deer Valley. And WinCo Warehouse is expected to complete a 800KSF distribution facility in Q2 2014. While there are a handful of tenants looking for large industrial spaces, a majority of market demand lingers between 20KSF and 100KSF.

Still, Phoenix ranks No. 3 in the country for year-over-year construction completion increases, according to Cushman & Wakefield’s Q1 2014 report. In Q1 2013, 316KSF of industrial product was completed. In Q1 2014, that number jumped to 2.1MSF. Another 2.7MSF is being developed. Industrial vacancy in Phoenix is at 10.5 percent, still above the national average (7.4 percent), Cushman & Wakefield reports. Vacancy reached a two-year high, reports Colliers International, and vacancy in buildings larger than 100KSF has spiked to 16 percent, while vacancy in buildings of 200KSF and larger has more than doubled in the past year to 17.6 percent.

“But the glass is half full,” says Marc Hertzberg, managing director of industrial/supply chain and logistics solutions at JLL. “Phoenix remains a great place for labor, lower operating costs and quality of life. Economic conditions are improving and we expect to bounce back.”

“Phoenix typically absorbs somewhere between 3.5MSF and 4.5MSF of industrial space per year,” says Hertzberg. “We’ve been off this mark for about 12 months now, but we are not the only market in this position. Our large-scale industrial sector is a mirror image of a phenomenon taking place in southern California, and particularly the Inland Empire, which usually absorbs as much industrial space in one quarter, approximately 4MSF, as Phoenix does all year. At almost mid-year, that market has only absorbed 3.4MSF.”

The sweet spot, he says, are the small- and mid-size users who need between 75KSF and 200KSF. “The small- and mid-size users are typically made up of higher-wage specialized employers like medical and high-tech companies,” Hertzberg says. “They are looking for fully-air conditioned flex industrial space that is close to quality labor, vendors and transportation, and they are willing to pay prices of approximately 10 to 20 percent higher than the big-box users in the areas of west Phoenix to secure those factors.”
Build-to-suit construction is what companies need to factor into their projections, says Hertzberg.

“In the build-to-suit sector, vertical markets like e-commerce and food and beverage are providing us with some positive absorption, however this does nothing to fill existing space,” he says. “Rather, it is adding specialized building inventory to our market—product that is built specifically for its user versus the specs of an existing warehouse.”

“We are seeing an aggressive level of capital looking to be placed in Phoenix,” says Cassidy Turley’s Industrial Group Vice President Will Strong. Companies are looking toward build-to-suit options over taking existing buildings, he says.

“New industrial developments are pushing higher on clear height, bigger on truck courts, and are continuing to find better, more efficient and modern ways to meet the tenants’ changing facility needs,” he says. “We are seeing companies increase employment density for fulfillment centers, which in-turn pushes the parking requirements higher than a traditional warehouse user would have.”

Spec is also being leased up. Coldwater Depot in Avondale, Ariz., the Trammel Crow-Clarion project, entered the market with 600KSF in spec development and leased out to Conn Appliances and SanMar Corp.

“Capital markets are really looking at Phoenix hard right now because they can’t find anything to buy in other markets that pencils out,” Strong says. “This has pushed investors to look not only at traditional listings but also off-market opportunities. Whether current owners will sell is another question. Some are contemplating offers, but even if they were to sell they’d need to determine where to put their money next, and if that investment has the same kind of upside potential as Phoenix industrial space.”

ZK Grill, SRS, WEB

ZK Grill leases space at Gilbert Crossing

SRS Real Estate announced ZK Grill, a Mediterranean fast casual restaurant,  has leased a 2,347-square-foot space at the northeast corner of Guadalupe and Gilbert roads in Gilbert, Ariz.

 

 

Other notable tenants located within Gilbert Crossing include: Power MMA & Fitness, Firestone, Meridan Bank, and Tots Unlimited. This will be ZK Grill’s fourth location in the Valley.

 

 

Scott Ellsworth with SRS represented the tenant, ZK Grill, in the transaction.  Cliff Johnson with Cassidy Turley represented the landlord, Tri Gate Capital.

 

555North18thStreet, Cassidy Turley, WEB

San Francisco investor buys St. Luke’s Medical building for $8.45M

Cassidy Turley announced the successful sale of a ±49,816 square foot medical office building at 555 North 18th Street in Phoenix’s downtown submarket. San Francisco-based Stockbridge Funds purchased the St. Luke’s Medical property for $8.45 million ($169.62/psf) from Chicago-based Heitman Real Estate Investment Management.

Executive Managing Director Eric Wichterman and Senior Vice President Mike Coover with Cassidy Turley negotiated the transaction on behalf of the buyer and seller.

Built in 2006, St Luke’s Medical Building is a multi-tenant medical office project on 5.63 acres. The property is located north of Van Buren Street on 18th Street, adjacent to St. Luke’s Medical Center and one-half mile from Interstate 10. St Luke’s Medical Building was 86% occupied at the time of sale. The new owner plans to hold the property and continue to lease-up the remaining space.

Marley Park Plaza

Cassidy Turley reports two retail center sales

Cassidy Turley announced the sale of Marley Park Plaza, a 77,545 square foot, grocery-anchored neighborhood shopping center at 15411 W. Waddell Road in Surprise. IMAN Enterprises, LLC of Surrey BC, Canada, purchased the retail center for $12.45 million from Donahue Schriber Realty Group.

Cassidy Turley Executive Managing Directors Ryan Schubert, Michael Hackett, Dan Wald and Matt Kircher negotiated the transaction on behalf of the seller.

Located on 11.83 acres at the southeast corner of Waddell and Reems Road, the sale included the Basha’s anchored shopping center and an adjacent 2.45 acre developable land parcel. The parcel is currently planned for an additional 16,705 square feet of retail space. In addition to Basha’s, Marley Park Plaza tenants include Subway, H&R Block, Little Caesar’s Pizza, Baskin Robbins and Great Clips. Developed in 2007 by Donahue Schriber Realty Group, the property is located one-half mile east of the Loop 303 with frontage on two primary thoroughfares in Surprise. Marley Park Plaza was 98% leased at the time of sale.

“There was tremendous upside for the buyer with the future development of the adjacent parcel,” Hackett said.

The brokerage firm has also announced that Hayden Crossing Shopping Center, a 63,446 square foot neighborhood retail center at 8015-8035 E. Indian School Road sold for $14 million ($221.38 PSF).

Executive Managing Directors Ryan Schubert and Michael Hackett with Cassidy Turley’s Retail Capital Markets Group represented the seller Hayden Crossing Shopping Center, LLC. The buyer was a Phoenix investor, 919 Hillsdale, LLC.

Hayden Crossing

Hayden Crossing

“Hayden Crossing is located in a prime infill Scottsdale submarket with a very high barrier of entry by future competition,” Schubert said. “The center includes two quality, net lease tenants, Bashas’ and Walgreens.”

Hayden Crossing is located on six acres at the southeast corner of Hayden and Indian School Roads. The center was built in 2004 specifically for Bashas’ and Walgreens. The neighborhood shopping center services all of downtown Scottsdale, the city’s second largest employment center and a hub for technology and healthcare companies like Yelp and McKesson.

8313 Latham, WEB

Ryan West Business Park sells for $14.59M

Cassidy Turley announced today that a subsidiary of Cohen Asset Management purchased Ryan West Business Park, a ±242,863 square foot warehouse distribution building at 8313 Latham in Tolleson for $14,591,460 from EG Properties, LLC. Ryan Companies US, Inc’s (Ryan) Real Estate Management group was the asset manager for the seller and will continue to serve as property manager for the buyer. Will Strong, Mike Haenel and Andy Markham, SIOR of Cassidy Turley procured the investment sale transaction, bringing the buyer, Cohen, and the seller together.

“Phoenix’s industrial market continues to attract capital searching for assets with credit tenancy, modern features and a history of being institutionally managed and maintained. Ryan West Business Park fits that description,” according to Will Strong, Vice President with Cassidy Turley’s Industrial Services Group. “Located less than one quarter mile south of I-10, this asset’s location is in the heart of the Southwest Phoenix distribution market and will continue to benefit from strong local labor, improving market fundamentals, and access to the Southwestern U.S.”

Built in 2001 by Ryan, the project was named Ryan West Business Park. Shortly after completion, Ryan was awarded the NAIOP Arizona Industrial Building of the Year for the development which features tilt panel construction, high performance reflective glass, a 30-foot clear height, 59 front-loaded fully-gated and -secured docks/truck wells, 150 feet of truck maneuverability, 17,836 square feet of refrigerator/freezer space and was designed to accommodate future two-story uses.

“Having a strong credit tenant like Circle K in a portion of the building, the ability to lease the remaining 61,713 square feet and projected rental rate growth in this segment made this a strategic acquisition for the buyer,” said Strong.

This is the second acquisition Cassidy Turley has secured for Cohen in 2014 and will be the fifth industrial building purchase in the last seven months by their firm. Cassidy Turley represented them in May for the $29 million purchase of a three-property industrial portfolio, totaling 174,644 square feet and 12.31-acres, from Alliance Commercial Properties.

Cassidy Turley will retain the leasing assignment for the remaining space at the Latham property.

Cave Creek CVS sells for $6.75M

Cassidy Turley reports that Mountain Villas, LLC, has purchased the 13,813 square foot CVS Pharmacy located at 28138 N. Tatum Blvd. in Cave Creek, AZ (85331) for $6.75 million.

Michael Campbell and Ed Colson Jr., CCIM,of Cassidy Turley’s San Diego office represented Mountain Villas LLC. John Wertz of Colliers International represented the seller, Charles W. Hostler Trust.

“We worked tirelessly with our client to satisfy his 1031 exchange and accomplish his investment goals.  We looked at a wide variety of potential deals,including those with credit and non-credit tenants, as well as a variety of geographies and product types.” said Mr. Colson.  “At the end of the day we were able to narrow  the search to a property that fits our client’s risk threshold. With this acquisition, he can also drive to see his new investment anytime.”

The free-standing CVS Pharmacy building, with drive-thru, is ideally located at the signalized intersection of N. Tatum Blvd and E Dynamite Blvd,  CVS has been successfully operating at the site since it was built in 2005 under a long-term triple net (NNN) lease.

2932 W Deer Valley, Cassidy Turley, WEB

California Investor Buys Motorcycle Mechanics Institute

Cassidy Turley announced the successful sale of a ±40,427 square foot Class B flex project at 2932 West Deer Valley Road in Phoenix’s Deer Valley Submarket. California-based Hyperion Fund L.P. purchased the property for $5.97 million ($148.00/psf) from California-based 2932 DVR LLC.

Executive Managing Director Eric Wichterman and Senior Vice President Mike Coover with Cassidy Turley negotiated the transaction on behalf of the buyer, while Barry Gabel and Chris Marchildon with CBRE represented the seller.

Built in 2002, the Deer Valley building on 4.01 acres is part of a three building complex incorporating the Motorcycle Mechanics Institute (MMI) campus. The project is located at Deer Valley Road, one-half mile from the Interstate 17 and two miles from the North Loop 101. The property is leased entirely to Universal Technical Institute, a private technical training school for auto mechanics, marine technicians and NASCAR techs. The new owners plan to hold the property and maintain the current tenancy.

Black Canyon Business Park, Cassidy Turley, WEB

California investor buys Black Canyon Business Park

Cassidy Turley announced that BKM Capital Partners (Irvine, California) acquired Black Canyon Business Park, a ±219,090 square foot business park at 8041 North Black Canyon Freeway for $13.1 million. The seller was Business Properties (Irvine, California).

Senior Managing Directors Bob Buckley, Tracy Cartledge and Steve Lindley with Cassidy Turley’s Capital Markets Group and Vice President John Pompay with Cassidy Turley’s Industrial Group brokered the transaction representing both parties.

“The project has an outstanding location, with freeway exposure,” Mr. Buckley said. “With the ability to capitalize on improving market conditions and tenant demand, Black Canyon Business Park offered exceptional value and upside potential for the buyer.”

Black Canyon Business Park is a 15 building business park with office, flex industrial and retail spaces ranging in size from 1,200 to 13,000 square feet. Built between 1975 and 1984, the property is located on the northeast corner of Northern Avenue and Interstate 17. The property was ±34% leased at the time of sale.

Colliers, WEB

Colliers International sells Class-B office in Phoenix

Colliers International in Greater Phoenix has recently completed the sale of a Class B office building in Phoenix for $950,000, or $79.40 a square foot.

Phoenix-based John F. Long Properties LLP purchased the building, located at 1118 E. Missouri Ave., from Gillman, Kawecki, McCluskey and Windes Investment Partnership of Phoenix.

Peter Nieman, an executive vice president, Kathy Foster, a senior vice president, and Marcus Muirhead, an associate vice president, all of Colliers International; served as the brokers for the seller.

Nieman and Foster are members of Colliers International’s Office Properties Solutions Group. The team has a diverse base of knowledge and expertise that leads to successful and tailored real estate solutions. Muirhead specializes in office and retail investment properties in the Phoenix area.

Thomas Jacobs of Cassidy Turley served as the broker for the buyer.

The building, encompassing 11,964 square feet, was constructed in 1975.

“The seller occupied and maintained the property, taking exceptional care of it. The building attracted much interest since there is a shortage of owner-user locations that have been well-maintained in that submarket,” Foster said.

CoStar

NXP Semiconductors leases 33KSF at Chandler Midway

The ViaWest Group announced today that NXP Semiconductors has signed a 10-year lease for 32,988 SF of office space at Chandler Midway Corporate Center, 5670 W. Chandler Blvd. Built in 2007, the project is comprised of two class-A office buildings totaling 111,800 SF. ViaWest originally purchased Chandler Midway in December 2012. At the time of the acquisition the buildings were 34 percent leased and with the addition of the NXP, the project is now 75 percent leased with deal activity that could bring the project in excess of 90 percent in the very near future.

NXP relocated to Chandler Midway from another ViaWest-owned building in the ASU Research Park. “We developed a great relationship with NXP and were excited that we were able to find an opportunity within our portfolio of assets that fit NXP’s long-term needs,” said Danny Swancey of ViaWest Group. “We pride ourselves as a relationship-oriented owner who works closely with the brokerage community and tenants to facilitate smooth and fair transactions for all parties involved,” added Gary Linhart of ViaWest Group.

Located at the northeast corner of Chandler Blvd and Gila Springs, the project is centrally located between the I-10, Loop 101 and new Loop 202 Freeways and is in close proximity to Chandler Regional Hospital. Chandler Midway is within 3 miles of 3MSF of retail amenities and 15 minutes from Sky Harbor International Airport.

We’re excited to continue our relationship with ViaWest and keep our Arizona operations in the Southeast Valley.  The talent of the workforce, quality of life, and lack of extreme weather and natural disasters are all factors that we consider when selecting sites, and Chandler has all of these key ingredients,” stated Greg Stuck, Sr. Director of Global Real Estate for NXP Semiconductors.

“The Chandler area has consistently outperformed the overall Phoenix market in attracting technology-related companies and is one of the top job-creating economies in the U.S. NXP continues this trend by bringing another a great global corporate name and quality workforce to Chandler Midway,” said Cassidy’s Scott Baumgarten. These properties are surrounded by first-class amenities, high-end executive housing and the I-10, Loop 101 & 202 Freeways making them very attractive to prospective tenants. Mark Stratz added, “NXP’s move to Chandler Midway solidifies their commitment to Arizona and further ratifies the Southeast Valley as one of the nation’s premier technology corridors.”

Vice Presidents Stratz and Baumgarten of Cassidy Turley’s Phoenix office represented the landlord and are currently marketing the remaining vacancy consisting of 23,117 SF in the 5670 building, as well as, a state-of-the-art 5,066 SF spec suite prominently located on the first floor lobby of the 5710 building. Don Rodie of Cushman & Wakefield’s Phoenix office represented the Tenant.

SAARS, WEB

TradeCor purchases SAARS building for $2.1M

4221_Obliques 1Cassidy Turley announced the $2.1 million ($247.06/psf) sale of SAARS Building, a Class-B office building at 4221 N. Scottsdale Rd. in the Scottsdale, Ariz., submarket. Phoenix-based 4221 Scottsdale LLC / TradeCor LLC purchased the property from Scottsdale-based Scottsdale Area Association of Realtors (SAARS).

Cassidy Turley Managing Director Mark Bramlett, Executive Managing Director Eric Wichterman and Senior Vice President Mike Coover negotiated the transaction on behalf of the seller and buyer.

Built in 1982, SAARS Building is a two-story, ±8,500 square foot office building on .57 acres located in the heart of the Old Town Scottsdale entertainment district at Scottsdale Road and 4th Avenue. The Scottsdale Area Association of Realtors occupied the building since 1982 and recently purchased a building at the Scottsdale Airpark for its new headquarters. No details have been disclosed for redevelopment at this time.

“We are anxious to watch the evolution of this site in the near future,” said Mr. Bramlett. “Based on its zoning, the property has the potential to be redeveloped as a restaurant, bar or for numerous other adaptive reuses.”

MMIBuildingPR, WEB

Motorcycle Mechanics Institute building sells for $6M in Deer Valley

CBRE has completed the sale of the Motorcycle Mechanics Institute (MMI) Building located at 2932 W. Deer Valley Rd. in Phoenix. The 41,739-square-foot technical training facility commanded a sale price of $5.975 million.

Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, 2932 DVR, LLC. The buyer, Hyperion Fund, LP, was represented by Eric Wichterman and Mike Coover with Cassidy Turley.

Deer Valley is a prime area for large corporate users like Universal Technical Institute’s Motorcyle Mechanics Institute. Investment opportunities like this are unique and sought after because the asset provides the opportunity to acquire a well-located, 100 percent triple-net leased facility with a strong-credit tenant on a long-term lease,” said CBRE’s Gabel.

The MMI Building is 100 percent leased to UTI on a long term lease. It is one of three buildings that comprise the MMI campus. The building is located on Deer Valley Road, the main street serving the market, and half mile west of the Interstate 17. The property also benefits from its adjacency to numerous retail services, residential neighborhoods including multi-family developments and other strong corporate users.

Headquartered in Scottsdale, Ariz., UTI, a NYSE (UTI) publically traded company, is the leading provider of post-secondary education for students seeking careers in automotive, diesel, collision repair, motorcycle and marine technicians. UTI has more than 170,000 graduates from 11 locations througout the country within its 48 year history.

SkySong III

Online advertising co-op signs lease at SkySong 3

An advertising innovator changing the way companies advertise online will set up shop at SkySong 3 early next year.

The company, adhesive.co, is relocating from east Indian School Road and will begin its five-year lease at SkySong on January 1, 2015. The layout of the space will be in line with the online ad company’s philosophy of a creative and collaborative environment.

The performance display online advertising company—where they like to say “the geeks are in charge”—helps drive incremental business for clients and is regarded as an industry leader with a fresh approach to online advertising. The adhesive team turns pages of code into advertising solutions for advertisers and publishers.

With the leasing agreement, adhesive.co’s presence at SkySong will help enhance its brand and a perfect fit for its collaborative environment.

“The innovative environment at SkySong will become even more dynamic with the addition of adhesive,” said Sharon Harper, President & CEO of Plaza Companies, the developer of the project. “They are online ad innovators and model collaborators who represent the best in entrepreneurial striving. We are thrilled they decided to come to SkySong, where their unique view of the world will be welcomed with open arms.”

Chad Little, one of the adhesive.co founders alongside Patrick Schwind, said: “Serial entrepreneurialism needs the right place to grow and prosper. Fortunately for Patrick and I, and our clients, we have found that place—SkySong. It’s the perfect fit for our approach, for who we are and for what adhesive is all about. We can’t wait to move in and meet our new neighbors and potential collaborators.”

The addition of adhesive.co is the latest addition to the growing SkySong project, which recently saw the completion of the SkySong Apartments and is nearing the completion of SkySong 3, the third office building at the property. With the adhesive.co lease, SkySong 3 is now at 88 percent leasing occupancy even before opening its doors. Leasing is currently ongoing for SkySong 4, the next office building at the project, with construction anticipated to begin by the end of 2014.

Mark Seale of Cassidy Turley was the leasing agent handling the transaction for adhesive.co. The Lee & Associates team of Craig Coppola, Andrew Cheney and Gregg Kafka represented the SkySong ownership group.

SkySong, the ASU Scottsdale Innovation Center is a home to a global business community that links technology, entrepreneurship, innovation, and education to position ASU and Greater Phoenix as global leaders of the knowledge economy.

SkySong is a 42-acre mixed use development designed to:

• Create an ecology of collaboration and innovation among high-profile technology enterprises and related researchers;
• Advance global business objectives of on-site enterprises;
• Raise Arizona’s profile as a global center of innovation through co-location of ASU’s strategic global partners; and
• Create a unique regional economic and social asset.

Companies located at SkySong enjoy a special relationship with Arizona State University, which has more than 73,000 students at four metropolitan Phoenix campuses. Its campus in Tempe is the single largest campus in the U.S., and is located less than three miles from SkySong.

In addition to locating its own innovative research units at the center, ASU provides tenants with direct access to relevant research, educational opportunities and cultural events on its campuses. Through ASU’s on-site operations, tenant companies have a single point of contact for introductions to researchers, faculty and programs to address their specific needs.

CoutntryClubManor, WEB

Arizona Urology Specialists leases 12,034 SF at Country Club Manor

Cassidy Turley announced that it completed a 10-year lease of 12,034 square feet for locally-based Arizona Urology Specialists PLLC at Country Club Manor, 1221-1313 East Osborn Road in Phoenix.

Senior Vice President Gordon Raguse and Vice President Chris Jantz of Cassidy Turley’s Office Group represented landlord Hyperion Fund LP, while David Heiple of Heiple Travers Realty represented the tenant.

Arizona Urology Specialists is the largest provider of urologic services in Arizona. It is comprised of three practices with 21 physicians, five physician assistants and six locations throughout the Phoenix metropolitan area. The physicians practice the most advanced methods of treatment, providing patients with top quality comprehensive urologic care. They are nationally renowned and have been ranked among the nation’s and Arizona’s top physicians. The new lease is part of a relocation and expansion for Arizona Urology Specialists.

Built in 1987, Country Club Manor is a classic, two building two-story 89,214 square foot Class B office project on 4.58 acres. The property is centrally located in the Midtown Submarket at Osborn Road and 16th Street. The garden style office building is 81% leased with 16,927 square feet available and suites ranging from 1,144 square feet to 5,100 square feet. For more information contact Gordon Raguse at 602-224-4452.

WestoodBusinessCenter, WEB

California investor purchases Westwood Business Park for $7.4M

Cassidy Turley announced the $7.4 million ($80.88/psf) sale of Westwood Business Park, a Class B office development at 2222-2228 West Northern Avenue in the Northwest Phoenix Submarket. California-based LBK Trust III purchased the property from Nebraska-based MJA Holdings, LLC.

Cassidy Turley Executive Managing Director Eric Wichterman and Senior Vice President Mike Coover negotiated the transaction on behalf of the seller, while Edward Nelson of Marcus & Millichap represented the buyer.

Built in 1981, Westwood Business Park is a ±91,491 square foot office complex consisting of four two-story buildings on 5.40 acres. The property is located conveniently in the heart of North Central Phoenix west of 19th Avenue and Northern Avenue. Westwood Business Park is minutes from the Interstate 17 and the Loop 101 freeways and in close proximity to shopping, restaurants, hotels, high-end communities, recreational parks and corporate centers. The business park was 82% leased at the time of sale.

GreenfieldGateway, Cassidy Turley, Wal-Mart, WEB

Cassidy Turley awarded leasing of 300KSF Walmart power center

Cassidy Turley announced it has been engaged by Greenfield Gateway Retail Investments for the marketing and leasing assignment of Greenfield Gateway in Mesa, Ariz.

The assignment consists of a 300,000 square foot shopping center anchored by Walmart Supercenter and Sportsman’s Warehouse. Cassidy Turley Vice President Brent Mallonee is now leasing the property.

“We are excited to be partnering with Greenfield Gateway Retail Investments on the leasing assignment of Greenfield Gateway,” Mr. Mallonee said. “The project is well located and conveniently accessible to the East Valley via the U.S. 60 Freeway. We are focused on leasing the shopping center up and improving the tenant mix, consistent with a first class power center.”

Greenfield Gateway is located at the southwest corner of the U.S. Highway 60 Superstition Freeway and Greenfield Road with immediate access from the U.S. 60 Superstition Freeway. It is adjacent to other regional centers that include At Home, Hobby Lobby and LA Fitness as tenants, and minutes from regional shopping destination Village Square at Dana Park.

The area boasts strong traffic counts and residential densities of over 130,000 people in a three mile radius. The Cassidy Turley team is currently leasing space configurations at Greenfield Gateway that can accommodate users seeking ±1,112 square feet suites to +35,000 square feet.

Pecan Promenade, WEB

Cire Equity acquires Pecan Promenade retail center in Tolleson

Cassidy Turley announced today that they have been awarded the leasing assignment for Pecan Promenade, a ±40 acre, ±336,023 square foot (sf) retail center on the northeast corner of 99th Avenue and Lower Buckeye Road by the property’s new owner, CIRE Equity of La Jolla.

Cassidy Turley’s Brad Douglass and Chris Hollenbeck have the leasing assignment for the retail power center. Pecan Promenade has ±16,968 available for lease with shops available from ±1,274 to ±6,000 sf. Anchor tenants at Pecan Promenade include Target, Ross Dress for Less, Rainbow Apparel, Dollar Tree, L.A. Fitness, Kirkland’s, Starbucks, Jack in the Box and Taco Bell.

“We are very excited to work on another property with CIRE Equity; they are a great owner and bring a creative energy to their assets,” according to Mr. Douglass. “Pecan Promenade has strong national tenants in-place and is an excellent opportunity for retailers to locate in a neighborhood center surrounded by a growing daytime business population and established residential neighborhoods.”

Pecan Promenade is located just south of Interstate 10 on major east/west and north/south arterial streets in the West Valley. The household income within a five mile radius of the center is more than $59,000.

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Cassidy Turley releases Q2 ‘Market Snapshots’

Cassidy Turley has released its Q2 market snapshots for Phoenix.

The brokerage firm reported the following market trends: “The metro Phoenix economy continues to post positive gains, adding 24,000 net new jobs year-over-year through the second quarter 2014 with a total employment base of 1,830,000 jobs. Moody’s recently raised its employment forecast for year end 2014 and now expects 40,600 net new jobs this year, compared to 38,600 net new jobs originally forecasted at the beginning of the year. As employment levels rise, the metro Phoenix unemployment rate improved year-over-year, declining 110 basis points to 5.9%. The metro Phoenix unemployment rate continues to outperform the national unemployment rate of 6.1%.”

Office

Highlights: Office vacancy has dropped below 20%, a first since 2008. At the end of Q2, 2.18MSF of office property was under construction. Four new projects broke ground, three of which were speculative construction (Chandler 202, Hayden Ferry III and Chandler Corporate Center).

Industrial

Quick Hit: By the end of Q2, nearly 3MSF of industrial property was under construction. During the quarter, 10 new projects broke ground (half of which were build-to-suit).

Retail

Highlights: At Home and Hobby Town’s occupation in the northwest Phoenix submarket contributed significantly to 460,845 SF of positive net absorption in Q2. Vacancy declined 10 basis points, finishing the quarter at 12.1%. Year-end net absorption is expected to be 2.5MSF and vacancy to drop below 12 percent, which hasn’t happened since 2009.

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Pacific Realty Advisors plan 211KSF spec industrial project

Cassidy Turley announced today that Pacific Realty Advisors (Kenn Francis and Tod Thorpe, Scottsdale, Ariz.) will break ground this year on a ±211,505 SF, two-building industrial project on the northwest corner of Broadway Road and Dobson Road in Mesa, Ariz.

Cassidy Turley’s Mike Haenel, Andy Markham, SIOR, and Will Strong have the leasing assignment for the 16-acre project that includes a ±147,670 SF warehouse/distribution building and a ±63,835 SF general industrial building.

“Clearly, there is major demand for this product type in the Southeast Valley,” said Mr. Markham, Executive Managing Director. “This location is also ideal for distribution and general industrial given its proximity to three major freeways and deep employment base.”

The warehouse/distribution building will have 32-foot clear height and includes 28 dock and five grade level doors and ESFR capabilities. It includes a ±148-foot concrete truck court along the north side of the building and a ±40-foot driveway on the south side along Birchwood Avenue with direct access to Broadway and Dobson roads at a lighted intersection.

The general industrial building will have 26-foot clear height and includes 10 truck well and 12 grade level doors, with a ±120-foot truck court along the south side of the building.
Pacific Realty Advisors plans to break ground on the yet to be named project during the third quarter. The architect for the project is Euthenics Architecture, project manager is T.L. Steimel and Associates and the engineer is CaliChi Design Group.