Tag Archives: CBRE

Lakeview at SSprings v2, CBRE WEB

Lakeview at Superstition Springs sells for $66.6M

CBRE has completed the sale of Lakeview at Superstition Springs, a 676-unit apartment complex located at 1849 S. Power Rd. in Mesa, Ariz. The multifamily asset sold for $66.6 million. The property was 95 percent leased at time of sale.

Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE’s Phoenix office represented the institutional seller. The buyer was San Diego, CA-based Fairfield Residential Company LLC.

Lakeview at Superstition Springs offers a great opportunity in the East Valley,” said CBRE’s Cunningham. “The East Mesa/Gilbert submarkets are projected to lead the Phoenix metro in population growth through 2020 with multifamily demand only strengthening over the time frame as well.”

Surrounded by the largest employers and best retail options in Mesa, Lakeview offers an unmatched living environment for residents. The community is within 5 to 10 minutes of Banner Gateway Hospital, Banner Baywood Hospital, The Boeing Company’s Arizona headquarters and the future Apple production facility. Lakeview is also within minutes of Superstition Spings Center and The San Tan Village Mall as well as another 1.6 million square feet of periphery power centers including a Super Walmart, Costco, Best Buy, Target, Harkins 25 Theaters and Home Depot. Additionally, Grand Canyon University is building a 10,000-student campus five miles from the community.

Developed in two phases in 1995 and 1998, Lakeview is an institutionally-maintained class A community located within the Superstition Springs masterplan. The property is situated on 38 acres encompassing five lakes and is comprised of 676 units offering a mix of floor plans that range in size from 660 to 1,314 square feet. Unit features include full-sized washers and dryers, fully-appointed kitchens, walk-in closets and private patios and balconies. Community amenities include four resort-style swimming pools, a resident clubhouse, a 24-hour fitness center, a basketball court, two playgrounds, resident business center and picnic areas with ramadas and BBQ grills.

West 101 Corporate Center, CBRE, WEB

CBRE leases 67KSF to Arizona’s newly created CSFS agency

CBRE has completed two office leases totaling 67,335 square feet in Metropolitan Phoenix. The leases are representative of new office requirements by Arizona for the newly created Child Safety and Family Services agency (CSFS).

A 26,265-square-foot, full-floor space in West 101 Corporate Center, which is owned by Los Angeles, Calif.-based Regent Properties and located at 1860 N. 95th Lane in Phoenix, will service CSFS’s West Valley clients. The second location is a 41,070-square-foot office building at the Corridors business park, formerly owned by Chicago, Ill.-based The Alter Group and recently purchased by Los Angeles-based Adler Realty Group. Located at 1925 W. Pinnacle Peak Rd. in Phoenix, this location will service North Phoenix.

Jim Bayless, Ashley Brooks and Jenny Aust with CBRE’s Phoenix office negotiated the long-term lease transactions on behalf of Regent Properties and The Alter Group. The State of Arizona was represented by Chris Corney with JLL’s Phoenix office.

1860 N. 95th Lane is a three-story, class A office building located within the West 101 Corporate Center master-planned business park. The property benefits from proximity to more than 1 million square feet of retail amenities, including Gateway Pavilions and Gateway Crossing. The building also has immedate access to the I-10 and Loop 101 freeways. The tenant, whose lease agreement brings the property to 72 percent leased, will take occupancy in early November.

An 80-acre business park, Corridors currently features single-story buildings as well as land for expansion and build-to-suit opportunities. Located near the southeast corner of Pinnacle Peak Road and the I-17 freeway, the park benefits from proximity to more than 1.7 million square feet of retail amenities. Current tenants include Chubb Insurance, Arizona State Credit Union, Syntellect, Bechtel, Belcan Engineering, Kutta Technologies and Performance Software. The Child Safety and Family Services lease, whose operations will take occupancy of in early December, brings the business park to 88 percent leased.

Target-Village Center, CBRE, WEB

Valley retail portfolio sells for $150M

CBRE has completed the sale of the Phillips-Edison Fund IV Portfolio. The nine-property retail portfolio sold for $150 million and totals over 1.35 million square feet.

Jesse Goldsmith and Steve Julius of CBRE in Phoenix, Ariz., along with Christian Williams and Gleb Lvovich of CBRE’s National Retail Investment Group, negotiated the sale between the seller, Cincinnati, Ohio-based Phillips Edison Shopping Center Fund IV REIT, LLC and the buyer, Newquest-Epic Investments, LLC of Austin, Texas.

Arizona Retail Investment Specialists, Jesse Goldsmith and Steve Julius focused heavily on the portfolios’ Phoenix asset – the Village Center, located at 4304 E. Cactus Rd. in the Paradise Valley submarket. The 159,425-square-foot retail center is anchored by a Target and sits directly west of Paradise Valley Mall.

“The Village Center has been a high-performing property since it was developed in 1986. I anticipate that center will only become more successful in the future. The property is highlighted by a high-performing Target store anchor on a below market ground lease,” said CBRE’s Goldsmith. “Village Center is a class A asset, as were two other properties in the portfolio, which makes this offering unique as there is a lack of class A product currently on the market.”

 

The Phillips-Edison Fund IV Portfolio includes nine retail centers across six states. These include Village Center in Phoenix, Ariz.; Prairie Point and Glidden Crossing in Aurora and DeKalb, Ill., respectively; Marketplace in Independence, Mo.; Deerfield Place and Plaza North in Omaha, Neb.; Silver State in Sparks, Nev.; and Johnson Creek and Hermiston Plaza in Happy Valley and Hermiston, Ore., respectively. Six of the properties are grocery anchored.

Sonoran Vista Apartments

California company buys Sonoran Vista Apartments complex

CBRE has completed the sale of the Sonoran Vista apartment community, a 264-unit apartment complex located at 9340 E. Redfield Rd. in Scottsdale, Ariz. The multifamily asset, which is situated in the heart of the north Scottsdale submarket was 95 percent leased at time of sale.

Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE’s Phoenix office represented the seller, a joint venture of Security Properties of Seattle and an institutional fund managed by Hunt Investment Management, the SEC-registered advisor of the Hunt Companies (Hunt), based in Chicago. The buyer was San Francisco, California-based Aukum Management.

“Sonoran Vista is an extremely well-located asset that offers an excellent value-add opportunity and will continue to benefit from its location in one of the strongest employment corridors in the Valley,” said CBRE’s Cunningham.

Sonoran Vista is located on the eastern border of the Greater Scottsdale Airpark, a major employment hub in the Valley. Encompassing 26 million total square feet of office, retail and light industrial space and including more than 50,000 jobs, the area is home to several world headquarters and large employers. Additionally, last summer KUD International announced its intention to develop a biomedical campus on 225 acres north of the Loop 101 and west of Scottsdale Rd, about five miles away from the multifamily community. That development would bring 10,000 jobs to the area over the next ten years.

Developed in 1996, Sonoran Vista consists of 264 units comprised of a mix of one-, two- and three-bedroom floor plans that feature gourmet kitchens, nine-foot and vaulted ceilings, wood-burning fireplaces, spacious walk-in closets and private patios and balconies. The community offers a resort-style swimming pool with spa and Ramada with BBQ; a designer clubhouse with coffee bar, kitchen, lounge area, and recreation options; a 24-hour fitness center and a resident business center in addition to other amenities.

TCP-Ventana, CBRE, WEB

Ventana leases 60KSf build-to-suit in Marana

An affiliate of Cottonwood Properties announced they will be constructing and leasing a 60,000 square foot distribution facility for Ventana Medical Systems, Inc. (Ventana), a member of the Roche Group. The new facility is located in Tangerine Commerce Park located on Tangerine Farms Road just west of the Tangerine Road freeway interchange. This is the first development within the 100-acre business park that provides a range of retail and employment uses and will be a key location for future employment and retail growth in the Marana area. Financial terms of the transaction were not disclosed.

Bill Di Vito and Jesse Blum with CBRE’s Tucson office represented Cottonwood in the transaction. Ventana Medical Systems, Inc. was represented by Dev Gupta with DTZ.

“The Tangerine Corridor is an ideal location for this type of development,” said CBRE’s Di Vito. “Freeway access and the availability of larger commercial parcels will attract other logistics and employment users to the area, establishing it as the next major commercial hub in greater Tucson.”

The distribution facility is being designed by Gromatzky Dupree and Associates and construction with Barker Morrissey Contracting is scheduled to start in 4Q 2014 with completion projected for 4Q 2015.

Ventana Medical Systems, Inc., headquartered in Oro Valley, Ariz., is a member of the Roche Group and is a world leader and innovator of tissue-based cancer diagnostic solutions for patients worldwide. At its existing facility, located in the master-planned business community of Innovation Park, Ventana delivers medical diagnostic systems and biopsy-based cancer tests that are shaping the future of healthcare. This new facility will function as a multi-use distribution facility with some assembly to support its facility in Oro Valley.

Tangerine Commerce Park is located just off Interstate-10 on Tangerine Road and is the only mixed-use and industrial development along the quickly developing Tangerine Corridor with direct access to Oro Valley and the bio-tech industries. The park can accommodate uses from smaller 2- to 3-acre requirements up to 100-acre requirements.

camelhead

Leading used vehicle retailer signs lease at Camelhead Square

Cushman & Wakefield of Arizona, Inc. negotiated a 14,278 square foot lease at Camelhead Square, 3033 N. 44th St., bringing the property to 80 percent capacity.

This is a new lease for DriveTime Automotive Group, Inc., the leading used vehicle retailer in the United States, providing additional office space for their expanding business.  Other tenants include Hill & Usher and Sovereign Healthcare.

“The deal involved a local company (DriveTime) in close proximity to Camelhead Square. We were able to accommodate their short-term expansion needs and fill a big block of space,” said Chris Latvaaho.

Latvaaho, Chris Nord and Michael White of Cushman &Wakefield represented the landlord, Sun Life Assurance Company of Phoenix. Tom Adelson of CBRE represented the tenant.

ScottsdaleQuarterOffice, WEB

Glimcher breaks ground on 170KSF at Scottsdale Quarter

Glimcher Realty Trust has broken ground on Block M at Scottsdale Quarter, a six-story, approximately ±170,000 SF Class-A, mixed-use building in north Scottsdale, Ariz. Located at the southeast corner of the high-end lifestyle center, the new tower will feature premier office space, above ground-floor retail plus an additional parking garage for both tenants and visitors. The tower is expected to deliver in the summer of 2015.

Glimcher has partnered with Brad Anderson and Mike Strittmatter at CBRE to market the new office space.  IBEX Construction out of New York City has been selected as the general contractor for the new building. American Girl has already been announced as the anchor retail tenant, which will occupy 12,000 square feet for their experiential store. This will be the first American Girl store in the state of Arizona.

“We are extremely pleased to continue development of phase three at Scottsdale Quarter with the groundbreaking of Block M,” said Marshall A. Loeb, president and chief operating officer for Glimcher. “Demand for space at The Quarter continues to be high further signifying the center’s appeal for businesses looking for a vibrant, upscale office environment.”

Existing office space in the center is nearly 100% leased as momentum at the property continues. In May, Starwood Hotels & Resorts, a premier office tenant at Scottsdale Quarter, expanded to more than 67,000 square feet.

Following the development of the south parcel, Scottsdale Quarter will be a 1.2 million square foot lifestyle center offering a premier, experience-centered environment. The addition of the luxury residential component of Crescent Scottsdale Quarter, combined with the existing upscale retail amenities, provides office tenants a premium, all-inclusive environment.

Scottsdale Quarter, which sits on 28 acres at the southeast corner of Scottsdale Road and the Greenway-Hayden Loop, includes 370,000 square feet of upscale retail, restaurant and entertainment options and 203,000 square feet of class A office space. The new six-story building will feature contemporary architecture perfectly integrated into the project, with high ceilings and breathtaking views of the surrounding mountains.

“Leasing activity on the building is very strong considering how early we are in the construction process,” said CBRE’s Anderson.

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.

Robert Shibuya named president of Mohr Partners

Robert Shibuya, Mohr Partners

Robert Shibuya, Mohr PartnersTed Frerick

Mohr Partners announces that Robert “Bob” Shibuya has joined the company as president responsible for the firm’s real estate service business globally which encompasses transaction advisory, portfolio/lease administration, project management and corporate finance/disposition services to corporate and government sector clients.

Shibuya will report directly to Bob Mohr, Chairman, CEO and Founder of Mohr Partners, and be charged with significantly expanding Mohr Partners’ platform in the Americas as well as refining the firm’s international delivery model to satisfy the firm’s growing number of occupier clients seeking an integrated global real estate solution.

“I am excited to have Bob Shibuya join Mohr Partners to help grow additional new markets and service lines, which will allow us to become the preferred partner to our customers who are increasingly looking for conflict-free advice across geography and service discipline with a single-point of accountability,” said Bob Mohr. “With over three decades of hands-on experience, Bob Shibuya is the right leader to take us to the next stage of our ambitious growth strategy.”

Shibuya, a 31-year commercial real estate veteran, has a well-established track record of helping property service firms grow and develop through broker recruitment, corporate development and superior client service delivery, having served in executive roles for CBRE, Trammell Crow, Cushman & Wakefield and most recently DTZ. Mr. Shibuya succeeds Ted Fredericks, Mohr Partners’ long-serving President. Fredericks will continue to serve as President Emeritus.

rsz_kitchell

Kitchell acquires 20-acre parcel near Sky Harbor

Kitchell Development Company acquired nearly 20 acres at Interstate 10 and 28th Street, just south of Sky Harbor Airport in Phoenix for an industrial development.

“Over the years we have developed several types of commercial projects including retail business parks, and multifamily, depending on the market climate,” said Senior Director of Development Ryan Cochran. “We’re expanding our presence in the industrial market, and this property is an ideal location for that type of development.”

Scottsdale-based Aspen Group has an ownership interest in the venture. Aspen Group has been an active developer of shopping centers and master-planned communities over the past 20 years.

The 19.85-acre site is south of Interstate 10 at the northeast corner of 28th and Elwood streets, a premier location due to its freeway access and visibility, low vacancy rates in the submarket, and strong tenant demand. The acquisition was made in three separate transactions, with the joint venture represented by John Werstler of CBRE, who will also handle marketing of the property. The development will consist of one or two buildings totaling 250,000 to 290,000 square feet.

According to CBRE’s quarterly market report, the overall industrial vacancy rate in the Phoenix metro market is 11.12 percent, with positive net absorption in each quarter over the past four years. There has been 3.7 million square feet of net absorption of industrial space through the second quarter of 2014.

“We’re bullish on the local industrial market and believe metro Phoenix will remain a viable distribution alternative to the coastal markets,” Cochran said.

Geoffrey Harris joins CBRE Capital Markets

Geoffrey Harris, CBRE

Geoffrey Harris, CBRE

CBRE Group, Inc. today announced that Geoffrey Harris has joined the firm’s Capital Markets’ Debt and Structured Finance team as Senior Vice President. Harris is a financial services professional with more than 15 years of mortgage banking experience. Based in Phoenix, Harris will play a key role in originating net-leased transactions for the firm nationally, in the multi and single-tenant, office, retail and industrial properties space.

“I am thrilled to welcome Geoff to the team. He is a wonderful complement to our team of best-in-class debt and structured finance professionals,” said Bruce Francis, vice chairman, Debt and Structured Finance, CBRE. “His experience and skill set will expand CBRE’s reach and strengthen our capabilities to serve the diverse needs of our investment clients across the country.”

Harris joins CBRE from Meridian Capital where he was managing director. He previously served as vice president of Capital Markets at Marcus & Millichap, where he was a top performer and was ranked as a “Top Five Broker” nationally from 2007 through 2011, and a “Top Loan Originator” for three consecutive years. Additionally, he was the recipient of Marcus & Millichap’s National Achievement Award for five consecutive years. Over the course of his career, Harris has closed more than 2,000 loans in excess of $3 billion.

“Geoff’s years of experience coupled with his deep market knowledge make him an excellent addition to our team. In addition, he is one of the most respected finance professionals in the Phoenix commercial real estate market,” said Craig Henig, senior managing director, CBRE. “In our business things like integrity, trust and confidence define the line between success and failure. Geoff is the epitome of these qualities and we are fortunate to be able to call him one of our own going forward.”

Harris holds a B.S. in business management from Southwest Texas State University. Outside of CBRE, he is actively involved in the community donating to and volunteering with numerous organizations including Boys Hope Girls Hope Arizona, Boys & Girls Club of Metropolitan Phoenix, Brokers for Kids of Arizona, American Liver Foundation and Arizona March of Dimes, among many others. He is also very dedicated to raising funds and awareness for multiple sclerosis.

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.

58 W. Congress St., Tucson, Ariz.

CBRE reports recent Tucson transactions

CBRE’s Tucson office has released the following recent leasing transactions for the greater Tucson area:

Ridgewood Associates, a full-service public relations and integrated marketing communications firm, has leased 2,378 square feet of office space at the Pioneer Building located at 100 N. Stone Ave. in Tucson, Ariz. Ridgewood Associates was represented by David Montijo and Bruce Suppes with CBRE’s Tucson office. The landlord, Holualoa Pioneer, LLC, was also represented by Bruce Suppes in addition to David Volk of CBRE.

Street Taco and Beer Co. has leased 2,233 square feet of restaurant space at 58 W. Congress in downtown Tucson. The landlord, BC Limited, LLC, was represented by Buzz Isaacson with CBRE’s Tucson office. The tenant was self-represented.

Batteries Plus has leased 1,400 square feet of retail space at Tucson Spectrum shopping center located at 1725 W. Irving Rd. in Tucson. The landlord, DDR Tucson Spectrum II, LLC, was represented by CBRE’s Nancy McClure, Jayme Fabe and Michael Laatsch. The tenant was represented by Steffan Cione with Cione Company.

Arizona Pizza, Inc. has leased 1,500 square feet of retail space at Southgate Shopping Center located at 3346 S. 6th Ave. in Tucson. The landlord, Red Mountain Asset Fund, LLC, was represented by CBRE’s Jayme Fabe. Arizona Pizza, Inc. was represented by Debbie Heslop with Volk Co.

Community Extension Programs, Inc. (CEP) has purchased a 2,760-square-foot office space at La Cholla Corporate Center in Tucson. The Tucson-based non-profit organization, which provides extended care and education and enrichment for schools in Tucson and Oro Valley, purchased the property from Orca, LLC. CBRE’s David Montijo and Jeff Casper represented the seller in the $469,200 transaction. CEP was represented by Esther Empens with Tierra Antiqua Realty.

Goodyear 1, WEB

Schoeller Arca Systems leases 77KSF at Goodyear Crossing

CBRE has negotiated the lease of a 77,046 square feet space at Goodyear Crossing Industrial Park located at 3801 S. Cotton Lane in Goodyear.

Schoeller Arca Systems, Inc., a Netherlands-based plastic injection molding manufacturer, has leased the warehouse and distribution space to accommodate production from its approximately 150,000-square-foot manufacturing facility located across the street at 4320 S. Cotton Lane.

Pat Feeney, Dan Calihan and Rusty Kennedy of CBRE’s Phoenix office represented the landlord, Indianapolis, Ind.-based Duke Realty, in negotiating the long-term lease agreement. Schoeller Arca Systems was self-represented. The exact financial terms of the transaction were not disclosed.

The metropolitan Phoenix industrial market is definitely improving. We’ve seen net positive absorption of 2.1 million square feet through the second quarter and 3.7 million square feet year-to-date,” said CBRE’s Feeney. “The Valley is proving an attractive placefor major industrial users to locate and expand. This lease is a prime example of that trend. With this transaction, SAS brings their total footprint in metro Phoenix to over 227,046 square feet, which is a sizeable investment. Activity is up because companies like SAS recognize the benefits of operating in the Valley.”

Schoeller Arca Systems, whose U.S. headquarters is located in Chicago, first entered the Phoenix market in 2011 when the company opened the facility at 4320 S. Cotton Lane which manufactures recyclable and reusable plastic crates for harvesting.

This lease brings the existing buildings at Goodyear Crossing Industrial Park to 100 percent occupied. Other tenants at the park include Suntech, a major producer of solar panels; e-commerce giant Amazon; and Macy’s, which operates an e-commerce distribution facility that was recently expanded by 360,000 square feet and now totals 1 million square feet. With all existing buildings fully leased, Duke Realty is actively and aggressively pursuing build-to-suit and other potential tenant opportunities for the remaining 130 to 150 acres of improved, rail-served industrial lots that also offer foreign-trade-zone status.

Camelback Square, WEB

National tech company signs 30KSF lease in downtown Scottsdale

Lincoln Property Company signed a 30,000 SF lease with a nationally platformed technology tenant at the Camelback Square office project in downtown Scottsdale. The confidential tenant commitment brings the Class-A building to 95 percent occupancy.

Bill Blake, Craig Coppola, Andrew Cheney, Colton Trauter and Gregg Kafka of Lee & Associates serve as the listing team for Camelback Square. Bryce Terveen of CBRE represented the tenant.

“Downtown Scottsdale is a truly unique combination of business, dining, shopping and entertainment,” said Lincoln Property Company Vice President Amr Ceran. “It is easy to understand why companies want to locate here, and we do all we can as an owner/manager to make sure we’re complimenting that choice with very positive tenant relationships and lease deals that are a win-win scenario for everyone.”

With the new lease, the 172,690-square-foot, three-story Camelback Square is now 95 percent occupied to tenants including Regus, Echo Global Logistics, Paramount Financial, Ashton Woods, Carefree Financial, Barker Education and Mastro’s City Hall Steakhouse.

“This is a very stabilized occupancy position for Camelback Square, even when compared to South Scottsdale’s recovering office vacancy rate, which is performing competitively in the low teens,” said Ceran.

LPC and Los Angeles-based investment firm Oaktree Capital Management purchased Camelback Square out of special servicing in June 2011. Since that time, LPC has completed a major renovation including new building entrances, lobby and common area finishes, a courtyard fountain and furniture, and upgraded building signage. As property owner and manager, LPC also initiated an aggressive leasing plan that moved the project from just 50 percent occupied to almost 100 percent occupied.

Camelback Square is located at 6991 E. Camelback Rd., at the southwest corner of Camelback and Scottsdale roads. It sits adjacent to the 2 million-square-foot Scottsdale Fashion Square regional mall and includes on-site amenities such as the award-winning Mastro’s City Hall Steakhouse, a casual deli and a building conference room.

Sierra Vista I and II apartments, CBRE

Sierra Vista apartments sell for $23.825M in Tempe

CBRE has completed the sale of Sierra Vista I and II located at 710 and 615 S. Hardy Dr. in Tempe, Ariz. The garden-style apartment community consists of 239 and 228 units, respectively, and commanded a sale price of over $23.8 million.

Tyler Anderson, Sean Cunningham, Brian Smuckler and Jeff Seaman with CBRE’s Phoenix office represented the seller, Sierra Vista Apartments, LLC of Leawood, Kansas. Bert Kempfert, also with CBRE, represented the buyer, Newport Beach, Calif.-based FPA Multifamily, LLC.

Sierra Vista I and II offer a unique opportunity in an irreplaceable north Tempe location. The Tempe submarket is one of the most vibrant in the metropolitan area and will only continue to grow in the 21st century,” said CBRE’s Smuckler. “This 18-acre property has the potential to be redeveloped as a new core-plus multifamily community, capitalizing on not only the student population of ASU, but the numerous nearby mixed-use development projects currently underway.”

Sierra Vista I and II are both less than one mile west of downtown Tempe, ASU and Rio Salado, an innovative 840-acre mixed-use urban project designed to meet the recreational, environmental and economic needs of the Tempe community. The property benefits from proximity to the industrial parks north and east of US 60 in west Tempe, as well as to the high tech jobs corridor along the Loop 101 Freeway and the large and growing employment center surrounding Sky Harbor International Airport.

Built in 1975 Sierra Vista I is located on University Drive in Tempe. The property is situated on approximately 9.04 acres. Community amenities include two large swimming pools, sport court, handball court, leasing office, two on-site laundry facilities, secured access gates, picnic areas with charcoal barbecues and an internet café with coffee bar.

Sierra Vista II, which was built in 1971, is located on 7th Street just east of Hardy Drive in
Tempe. The property sits on approximately 8.96 acres and is attractively landscaped. Community amenities include a large swimming pool, 24-hour fitness center, two on-site laundry facilities, picnic areas with charcoal barbecues and access to all the amenities at Sierra Vista I.

Campus Tucson International, CBRE, WEB

VXI Global Solutions leases 31KSF at Campus at Tucson International

CBRE has completed a 31,100-square-foot lease at the Campus at Tucson International in Tucson, Ariz. VXI Global Solutions, a Los Angeles, Cailf.-based company and leading provider of business process and information technology outsourcing, has leased the space. This lease marks VXI Global Solutions’ entrance into the Arizona market and the company plans to hire approximately 300 employees in the short-term, potentially 500 in the long-term.

Bill Di Vito and Jesse Blum with CBRE’s Tucson office negotiated the long-term lease on behalf of the landlord, HSL Properties of Tucson. VXI Global Solutions was represented by Jackson Meyer of Dallas, Texas-based Avison Young. The financial terms of the transaction were not disclosed.

VXI Global Solutions’ entrance into the Arizona market, specifically into Southern Arizona, is another great indicator of the steadily improving economy,” said CBRE’s Di Vito. “Over the past several quarters, user interest in our region has definitely been up. Major companies are looking at Tucson as a place to expand or locate and having the right real estate available makes it easier to get them here. The Campus at TI is well-positioned to attract quality tenants and this lease is a prime example.”

VXI Global Solutions has leased its 31,100-square-foot space at 6730 S. Tucson Blvd. in Building One at the Campus at TI. An industry leader in its space, VXI Global Solutions specializes in call center and BPO services, software development, quality assurance testing, and infrastructure outsourcing and will operate a call center from this location. Capitalizing on Tucson’s deep, well-educated labor pool, the company plans to hire approximately 300 new employees immediately and could potentially hire up to 500 employees in the future. A global company, VXI has operations across North America as well as in Asia and Latin America.

The Campus at Tucson International is a six-building, 253,393-square-foot business park campus that sits on 17.6 acres two blocks from Tucson International Airport. The property was formerly home to Texas Instrument’s operations in Tucson. HSL Properties purchased the property in September 2013 from the Dallas-based company and soon got to work making improvements to the existing buildings and grounds in order to reposition and bring new life to the project.

We’ve believed from the start that Tucson is a market that can and will attract major employers with the right kind of real estate,” said Humberto Lopez, president of HSL Properties. “Our goal has always been to attract companies that will add value to the Tucson market in the form of jobs and commerce and this lease with VXI does just that.”

A business campus that once housed over 1,400 employees, the Campus at Tucson International is a multi-use site that includes offices, labs, a conference center with a full commercial grade kitchen and cafeteria, as well as manufacturing and warehouse space. The multi-building campus is serviced by a sophisticated on-site central utility core that offers seven megawatts of power, which makes it an attractive option for users with significant power needs.  Entirely secured with multiple access points, The Campus at Tucson International is two blocks from the Tucson International Airport and within walking distance to hotels and restaurants.

Mark Boisclair Photography, Inc.

CBRE completes $65M sale of Parcland Crossing

CBRE has completed the sale of Parcland Crossing, a 383-unit apartment complex located at 800 W. Willis Rd. in Chandler, Ariz. The multifamily community, which sits just south of the 202 Freeway at the northeast corner of Willis and Alma School roads in Chandler, commanded a sale price of $65 million. The property was 93 percent leased at time of sale.

Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE’s Phoenix office represented the seller, Alma School Apartments, LLC, a joint venture between Scottsdale-based Mark-Taylor, Inc. and Phoenix-based Kitchell Development Co. The buyer was PrivatePortfolio Group, LLC of Seattle, Wa.

Parcland Crossing is an extremely well-located asset. Population growth for the one-mile radius around Parcland Crossing has averaged 5.5 percent in the past three years and is projected to increase by almost 9 percent in the next five years,” said CBRE’s Cunningham. “The exploding population in the area has led to pent-up demand for housing and resulted in an incredibly brisk pace of lease-up activity at Parcland Crossing.”

Parcland Crossing is located in the heart of Chandler’s employment hub. The apartment community is located within a five mile radius of two Intel campuses, Bank of America, Wells Fargo, Chandler Regional Medical Center, eBay/PayPal, Verizon, Microchip, Freescale Semiconductor, Orbital Sciences, EDMC, and Avnet.

Built in 2013, Parcland Crossing features state-of-the-art one-, two- and three-bedroom units in ten floor plans. Community amenities include an elegant entry with controlled-access gate, a designer resident clubhouse, a resort-style swimming area, garage parking, 24-hour fitness center, resident business center, shaded children’s playground, a dog park, and a picnic area with gas barbeque grills.

CBRE hires Jay Lefevers

CBRE’s Phoenix office has announced that Jay Lefevers, founding principal of Phoenix-based Viewpoint Group, LLC will join CBRE’s Valuation and Advisory Services team. This addition further enhances CBRE’s platform and will position the company to better service its clients throughout the region.

Jay Lefevers, CBRE

Jay Lefevers, CBRE

“I am excited to welcome Jay to the CBRE team,” said Mike Rowland, senior managing director of CBRE’s Valuation and Advisory Services Intermountain Region. “Jay is one of the top appraisal professionals in Arizona and this addition ensures our ability to continue providing the highest level of service for our clients.”

CBRE repeated as the No. 1-ranked firm in this year’s Phoenix Business Journal’s Commercial Real Estate Appraisers List. Rankings were determined by the number of appraisals completed in 2013. CBRE recorded 1,174 appraisals and was followed by Viewpoint Group, LLC with 760. CBRE has consistently been at the top of this list for several years.

“Joining CBRE presents an unparalleled opportunity for my clients,” said Lefevers. “My extensive experience with large lending institutions and national corporations, coupled with the ability to leverage CBRE’s global platform, will allow for an unrivalled level of service for current and future clients.”

Lefevers has more than 27 years of experience in the appraisal business. He has served as a member of the National Grievance Committee for the Ethics/Counseling Department of the Appraisal Institute, was the Education Chairman for the Phoenix Chapter of the Appraisal Institute and has served on the Experience Review Committee for the Appraisal Institute.

“Commercial real estate is a business where relationships matter – where things like integrity, trust and confidence define the line between success and failure. This is why our RISE values are so central to everything we do,” said Craig Henig, CBRE’s senior managing director and Arizona market leader. “Jay is the embodiment of those values and I’m proud to welcome him to CBRE. This is an exciting milestone as we continue to strive for excellence in the service we provide our clients.”

CBRE’s Valuation and Advisory Services Intermountain region, which is headquartered in Phoenix, provides comprehensive valuations on complex real estate in an expeditious and cost effective manner. Products and services offered extend beyond real property valuations to include market/feasibility studies, consulting services, rent surveys, site inspections, litigation support and expert testimony.

Grand Retail Plaza, WEB

ViaWest sells Grand Retail Plaza for $1.3M

ViaWest Group has sold Grand Retail Plaza, a premier multi-tenant strip center located at 9827 W. Grand Ave. in Sun City, Ariz., for a total consideration of $1.3 million. The property was 100% leased at time of sale.

Phoenix-based ViaWest Group sold the property to Kanjibhai Ghadia of Anaheim, Calif. Steve Julius and Jesse Goldsmith with CBRE’s Phoenix office negotiated the $1.3 million transaction.

ViaWest purchased the property in September 2011 from Pacific Western Bank subsequent to the original developer losing the property to foreclosure. At the time, the property was 100% leased but all the existing tenants had near-term lease expirations. “After purchasing, we reached agreements with all the existing tenants to extend their leases, except for one which we replaced with Domino’s Pizza on a 10-year lease. Additionally, shortly after acquisition we were able to creatively restructure an existing billboard lease by converting it to a perpetual easement allowing us to further enhance the economic performance of the asset by significantly reducing our basis,” added Danny Swancey of ViaWest Group.

Grand Retail Plaza, which totals approximately 6,369 square feet and sits on 0.78 acres in the master-planned retirement community of Sun City, is currently fully occupied by five tenants, including Domino’s Pizza, Edward Jones, HE/PA Enterprises, Cash for Gold, and Cricket Wireless.

Grand Retail Plaza is a superbly-located asset in excellent physical condition,” said CBRE’s Julius. “The property has no other retail competition at the intersection and has excellent Grand Avenue frontage and visibility. In addition, the property has a strong leasing history due to the success of each of its tenants.”

Built in 2003, the property sits just west of the Loop 101 freeway and approximately 30 minutes from the Phoenix Sky Harbor Airport. Located on the southeast corner of 99th Avenue and Grand Ave/US 60, Grand Retail Plaza sees an average of 41,707 vehicles per day via Grand Avenue and another 14,500 vehicles per day on 99th Avenue.

Harvard-LPC-Riverview, WEB

Harvard, LPC partner on final Riverview Point phase

Harvard Investments announced today that it will partner with Lincoln Property Company (LPC) to develop the second and final phase of Riverview Point, a Class-A office project directly adjacent to the 250-acre Mesa Riverview mixed-use property in Phoenix’s booming Southeast Valley.

Harvard Investments purchased the 19.55-acre land parcel for the new project from Montana Avenue Capital this week. In conjunction with LPC, Harvard Investments will build two new, Class A office buildings on the site: a three-story, 150,000-square-foot building and a two-story, 105,000-square-foot building. LPC will direct development of the project. It will also market the opportunity to build-to-suit prospects and anchor tenants.

“This project represents all of the things that make the Southeast Valley so exceptional–retail, dining, entertainment, and corporate environments, all linked by some of the state’s best educational assets and busiest transportation corridors,” said Harvard Investments President Craig Krumwiede. “These are key elements in an investment project, and they are what will make this property a strategic opportunity for companies looking for that next great address.”

“We’re operating within an area that continues to show—and grow—its ability to attract amenity-driven office tenants and make a positive, notable impact on greater Phoenix’s economic recovery,” said Lincoln Property Company’s Executive Vice President David Krumwiede. “This project will be no exception. Its timing and location are perfect for a development that will anchor this market for years to come.”

Dave Carder, Luke Walker and Eric Schultz, from the Phoenix office of CBRE, brokered the land transaction and will assist with the project’s marketing and leasing efforts. The Davis Experience serves as the project architect and Wespac Construction serves as the general contractor.

“We are very excited to work with Harvard and Lincoln on this new endeavor,” said Carder. “Momentum and demand for large blocks of Class A office space have returned to the office sector in force, and along with it great opportunity to create exceptional next-generation business environments.”

The new Harvard-LPC development is located on the borders of Mesa, Tempe and Scottsdale, just six miles east of Phoenix Sky Harbor International Airport and accessed via Loop 101 at Rio Salado Parkway and via two full-diamond interchanges along the Loop 202 at Dobson and Alma School roads. It is directly east of Mesa Riverview, a 1.3 million-square-foot retail, hospitality and entertainment complex. It is also less than one mile from the new Cubs Spring Training Facility and the newly reconfigured Riverview Park, which includes an innovative playground, six-acre lake and pedestrian path that connects the park and lake to the stadium.

When completed, the new Harvard-LPC office buildings will join an existing Hyatt Place Hotel, two existing, two-story office buildings that are approaching 90 percent occupancy, and a planned 180-room, luxury brand Sheraton Hotel scheduled to open in March 2015 and including amenities such as full-service restaurants, bars, swimming pool, fitness facility and more than 30,000 square feet of meeting and event space.

Grand Retail_Photo

ViaWest Group sells Grand Ave. plaza for $1.3M

ViaWest Group has sold Grand Retail Plaza, a premier multi-tenant strip center located at 9827 W. Grand Ave. in Sun City, Ariz., for a total consideration of $1.3 million. The property was 100% leased at time of sale.

Phoenix-based ViaWest Group sold the property to Kanjibhai Ghadia of Anaheim, Calif. Steve Julius and Jesse Goldsmith with CBRE’s Phoenix office negotiated the $1.3 million transaction.

ViaWest purchased the property in September 2011 from Pacific Western Bank subsequent to the original developer losing the property to foreclosure. At the time, the property was 100% leased but all the existing tenants had near-term lease expirations. “After purchasing, we reached agreements with all the existing tenants to extend their leases, except for one which we replaced with Domino’s Pizza on a 10-year lease. Additionally, shortly after acquisition we were able to creatively restructure an existing billboard lease by converting it to a perpetual easement allowing us to further enhance the economic performance of the asset by significantly reducing our basis,” added Danny Swancey, of ViaWest Group.

Grand Retail Plaza, which totals approximately 6,369 square feet and sits on 0.78 acres in the master-planned retirement community of Sun City, is currently fully occupied by five tenants, including Domino’s Pizza, Edward Jones, HE/PA Enterprises, Cash for Gold, and Cricket Wireless.

“Grand Retail Plaza is a superbly-located asset in excellent physical condition,” said CBRE’s Julius. “The property has no other retail competition at the intersection and has excellent Grand Avenue frontage and visibility. In addition, the property has a strong leasing history due to the success of each of its tenants.”

Built in 2003, the property sits just west of the Loop 101 freeway and approximately 30 minutes from the Phoenix Sky Harbor Airport. Located on the southeast corner of 99th Avenue and Grand Ave/US 60, Grand Retail Plaza sees an average of 41,707 vehicles per day via Grand Avenue and another 14,500 vehicles per day on 99th Avenue.

4141 N. Scottsdale Rd.

Cushman & Wakefield negotiates two leases at Scottsdale office building

Cushman & Wakefield of Arizona, Inc. negotiated leases totaling 24,486 square feet for a commercial real estate advisory firm and a medical care company at 4141 N. Scottsdale Rd.

Fresenius Medical Care of Waltham, Mass., signed a 12-year lease for 15,317 square feet. Fresenius provides dialysis treatment through a network of more than 1,800 facilities nationwide. Keyser signed a 6-year lease for 9,169 square feet. It is relocating from 1048 N. 48th St. in Phoenix.

“Both tenants saw an opportunity to plant a flag in the heart of Old Town Scottsdale,” said Chris Latvaaho. “Scottsdale continues to attract innovative companies that see the value of locating their business in what has been branded as the live-work-play that is unique to Scottsdale and not easy to replicate anywhere else in the Valley.”

The anchor tenant is Aetna Life Insurance. With the two leases, occupancy will be 89 percent.

Latvaaho and Tim Whittemore of Cushman & Wakefield represented the landlord, an entity owned by certain affiliates of Westport Capital Partners LLC. Keyser was represented by company owner Jonathan Keyser. Fresenius was represented by Pete Wentis and Jim Greene of CBRE.

The "Class of 2014" advocates visit DMB Associates' masterplanned community Eastmark.

It takes two

Valley principals host young professionals in inaugural advocates program

A look around the room at a Valley Partnership Friday Morning Breakfast (FMB) reveals a who’s who of Arizona’s commercial real estate industry. You’ll see seasoned professionals sitting next to up-and-comers, and though these are an effective networking tool, Valley Partnership took the concept to the next level.

It created the Valley Partnership Advocates Program for young professionals. The program is a nine-month-long course for a “class” of 20 people under the age of 35 to meet with a new industry leader every month.

The inaugural program began last August and has included sessions hosted by prominent figures from DMB Associates, Inc., Vestar, Arizona State Land Department, Ryan Companies, Sunbelt Holdings, Evergreen Development, ASU and Macerich/WDP Partners. Many of the sessions were hosted by board members, including one held during a board meeting. “I did not understand the power of Valley Partnership and the people behind it until I attended that board meeting,” says advocate Nicole Mass, 35, Kitchell’s director of marketing.

The feeling is mutual. Bruce Pomeroy, founding principal at Evergreen Devco, has worked in the industry for 40 years. During that time, he has trained many young hires and has taught classes for the International Council of Shopping Centers. Pomeroy says of the session he hosted at Centerpointe in Goodyear that “the ‘students’ were very engaged and asked good questions.”

“I believe the most important issue was that the advocates wanted to spend more time with the developers during each monthly event,” says Vice President and General Counsel to Maven Universal Brett Hopper, who helped design the program. “We want to provide the advocates a greater opportunity to interact with senior executives and create long-lasting relationships.”

Stephanie Stephens, 27, marketing and project coordinator at Buesing, says the mentors emphasized the importance of getting involved in the real estate community. That typically starts with something as simple as the monthly Valley Partnership breakfasts, where Stephens heard about the program. Easton Mullen, 37, started his general contracting company Mullen Construction and Development in 2006 and has since built capital with the goal of becoming a developer. The advocates program, he says, created a foundation of contacts to use while his company evolves. “You can’t call these people up on the phone,” he says, “but if you’re part of the program, you can.”

The mentors encouraged community involvement and engagement within Valley Partnership’s committees and leadership roles. CBRE Sales Assistant Chris Marchildon, 28, was approached by board members at the suggestion of CBRE Executive Vice President Barry Gabel, about joining Valley Partnership’s Advocates Program.

sidebar“One of the first things I was told in this business was to ‘be a sponge,’” he says. “The second was to develop as many good relationships as you can along the way. Through the program, I was certainly provided the opportunity to learn success stories from the ground up as well as the chance to ‘soak up’ as much information as I could.”

Recent Denver transplant Kelly Kaminskas, 34, senior vice president at FirstBank, used the advocates program as an introduction to the industry. “It would have taken me years to piece together the information I received by being part of this group,” she says.

Tuition is $150. Applications are available on Valley Partnership’s website through July.