Tag Archives: CBRE


CBRE completes sale of Esplanade III

CBRE has negotiated the sale of Esplanade III, a 218,266-square-foot office building located at 2415 East Camelback Road in Phoenix. Financial terms of the transaction were not disclosed. The property was approximately 95 percent leased at time of sale.

Jim Fijan and Will Mast with CBRE’s Phoenix office negotiated the sale, along with Kevin Shannon of CBRE’s South Bay, California office. The seller was an institutional client of AEW Capital Management, L.P. The buyer was Dallas-based Crow Holdings.

“This is the highest price per square foot for a multi-tenant, class A asset since the downturn,” said CBRE’s Fijan. “Office fundamentals are improving and pricing is approaching pre-recession levels. Investors are taking notice and have shifted their attention to Phoenix, especially as pricing in coastal markets skyrockets.”

As part of the Esplanade mixed use development, Esplanade III benefits from the wealth of on-site amenities shared by the complex. MetLife, owner of the other four office buildings in the development, recently announced a refresh of the retail amenities such as new restaurants and a new common area business center. 

Developed in 1997, Esplanade III is a ten-story, class A, multi-tenant office building located in the heart of the Camelback Corridor. Ninety-five percent leased at time of sale, tenants include CBRE, Alliance Residential, Regus, Helios and Major League Baseball’s western headquarters, among others.

MG Properties buys Trillium Papago Apartments for $36M

 MG Properties Group, a private San Diego-based real estate investor and operator, has announced the acquisition of the Trillium Papago Apartments in Phoenix, Arizona.

The property consists of 270 luxury apartments built in 2007. The property features an exceptional array of common area amenities, including a resort-style pool and spa, modern fitness center, movie theater, and pool room.

The property is located north-east of Phoenix Sky-Harbor Airport, providing convenient access to multiple job corridors within the region. MGPG plans to rebrand the property as Ascent at Papago Park. Units include nine-foot ceilings, full-sized washers and dryers, and a mix of 1, 2, and 3-bedroom floor plans. 

Trillium Papago was purchased for $36,220,000 from Trillium Residential. The acquisition was financed with a 10-year fixed-rate mortgage from Fannie Mae, arranged by CBRE. 

According to Mark Gleiberman, MG Properties Group Chief Executive Officer, “This acquisition reflects our continued belief in the long term growth potential of the Phoenix market. The property’s excellent design and central location position it well to benefit from further growth in the region.”

Trillium Papago marks MG Properties Group’s fourth acquisition in the past six months.  The four acquisitions totaled approximately 700 units and $125,000,000 in combined purchase price. The company is targeting further acquisitions in Arizona, California, Colorado, Nevada, Oregon, and Washington. 

Vacancy rate falls to single digits for 1st time since 2008

Retail vacancy rates for Metropolitan Phoenix have fallen into the single-digit range for the first time since 2008, according to a recent retail study by CBRE’s Phoenix office. While the retail market continues to improve at a more gradual pace than previously anticipated, retail real estate experts point to the 9.6 percent vacancy rate as an important milestone and a good reflection of the economic recovery.

“Single-digit vacancy is very good news for the retail sector,” said CBRE Vice President Greg Abbott, who specializes in retail real estate services. “This number is actually telling us two things: first, existing retailers are experiencing growth and new retailers are entering the Phoenix market; and second, the positive leasing and absorption activity is resulting in an improvement in market conditions such as higher rents and lower tenant concessions.”

Abbott, who partners with Vice Presidents Chris Ryan and Bill Bones, points to the fact that metropolitan Phoenix has not experienced any substantial, new retail development since 2008 as a major factor in the falling vacancy rate. Additionally, Bones notes that a significant amount of available retail space is considered functionally obsolete. This means the amount of functional, available space is even less than the numbers show.

“Slowly, but surely, retail tenants are expanding or entering the market. However, availability in the type of space retailers are interested in is growing increasingly tight,” says Bones. “Class A space, in particular, has a high barrier to entry right now in terms of supply. Tenants are very interested in class A opportunities and they are jumping on them when they come available.”

Class B space is also seeing healthy tenant demand. While these spaces may be older, the team points to their location in neighborhood or community centers, which offers great identity and stable residential and nighttime demographics, as key benefits for tenants.

Ryan says continued, pent-up demand for A and B space will cause rental rates to rise significantly over the next couple of years, particularly if there is no substantial new development. Increased rental rates could translate to high barrier to entry for some retailers.

“We have reached a point in the market cycle where existing, useable space is being absorbed, whereas five years ago we were absorbing new space as it came online via preleased tenants. Now tenants are leasing up existing space,” notes Ryan.

CBRE Research reports that the metropolitan area has not seen more than one million square feet of new retail construction delivered to the market, year over year, in the the last five years. 2014 reported merely 285,400 square feet of new product, while 2013 saw 512,000 square feet come online. Conversely, from 2000 to 2010 metro Phoenix saw an average of 5.5 million square feet of retail product delivered annually.

So, as the amount of quality space continues to tighten and retailers experience more incremental growth, new development will be inevitable. But what does new retail development look like? And what happens to the so-called “un-useable” space?

“Those spaces that have reached or are nearing functional obsolescence will have to be repurposed for new uses such as charter schools or mini-storage or redeveloped as multi-family or office,” says Abbott. “In fact, we’re already seeing those types of projects across the Valley.”

The retail team points to examples like the former East Valley Mall at the northwest corner of Arizona Avenue and Warner Road in Chandler, which is being repurposed from a mall into multiple new uses including a charter school, multi-family development as well as mini-storage. Additionally, Valley East Plaza, located at the northwest corner of Southern Avenue and Longmore Road, has been demolished to make way for the new Centrica office project. The shopping center, which formerly housed Bed, Bath & Beyond, Petco and Circuit City, sat vacant for more than six years before new ownership had it repositioned for office development.

As for new development, Abbott says developers today are still fairly conservative and most want a committed tenant or a solid anchor or shadow anchor prior to commencing the project.

New construction that will come online this year includes 132,000 square feet at Fashion Square Mall that’s going to be a new Harkin’s Theater and Dick’s Sporting Goods location. A 75,000-square-foot neighborhood center called Silverstone at Pinnacle Peak is also under construction and will be anchored by a Sprout’s grocery. Scottsdale Quarter, which has already established itself as a retail hub, also has an additional 30,000 square feet that will come online in its new mixed-use building.

Going forward, the retail team says retail market participants will continue to keep a watchful eye on improving fundamentals and tightening supply of space.

“If vacancy in the A and B spaces continues to fall, as it has in recent quarters, development really is inevitable,” says Abbott. “I think this is an interesting point in the cycle and tenants and landlords alike could see some really great opportunities in the coming quarters.”

Chris Brozina, WEB

Generation Next: Chris Brozina, Mark-Taylor

When Chris Brozina, vice president of Mark-Taylor, worked as a broker at CBRE, his team transacted more than $1.59B of multifamily transactions in seven states. In 2011, he made the decision to move into development with Mark-Taylor. He reveals to AZRE his steps to climbing the ladder of success, while sustaining his humility and connecting with his employees on a personal level.

Have you always been interested in real estate or did you start on a different career path?
As a young person coming into the industry in 2007, right into the teeth of the Great Recession, I was a young kid who didn’t have any money and didn’t have a whole lot to lose. The timing probably allowed the opportunity to accelerate through the ranks a little faster than what otherwise would have been the case.

Where did your real estate career start?
I started as a researcher and runner in the brokerage industry. In other words, a grunt. I did a lot of research, familiarizing myself with the lingo of the industry, and made cold calls like crazy. I absolutely started in the most un-glamorous role you can start in. I’d never know at the time just how valuable that time was.

What the biggest risk you have taken in your career?
I switched careers from being a broker at a very well-respected large company to the development world and Mark-Taylor. At the time, it was a major risk personally, because I was leaving something that I was starting to see a lot of success doing and a place I was really happy, with very respected brokerage partners. I thought I was going to be a broker for the rest of my life and I treated it that way. As is usually the case, the opportunity at Mark-Taylor hit me at a time when I certainly wasn’t expecting it. It was the brokers I worked with that gave me the perspective to understand what this opportunity meant. In retrospect, there is zero question that this has been the right move for me and something I see doing for the rest of my life.

What qualities do you think successful business leaders and mentors should have?
You become a leader only because people choose to follow you. At the end of the day, you can have any title you want behind your name but if people don’t choose to follow you you’re not leading anybody. That is the way I approach everything.

What advice would you give to a college graduate wanting to work in the real estate industry?
The advice I would have above all else to new college graduates: salary should be the furthest thing from your mind and your entire focus should be on finding a company where they are willing to teach you. You’re going to meet a lot of people in this industry that are constantly sniffing around looking to move companies. I would think that attitude is a pretty big turn-off to executives. Whatever you decide to do, whether you see it as a long-term career or a short-term job, act like you’re going to do it for the rest of your life. That passion and preparation is going to be palpable and is going to bring opportunities your way that you would never find if you were out there trying to seek opportunities on your own.

Ironline Partners bringing Adaptive Reuse Project to Phoenix

Phoenix will soon see new life breathed into a warehouse property in the downtown core. The building, located at 841 E. Jefferson, was recently purchased by Ironline Partners for $3 million. The local developer has plans to convert the property into a modern, relevant space for the right tenant.

Kevin Calihan with CBRE’s Phoenix office negotiated the sale on behalf of Ironline Partners. Kevin Lange with Keyser Commercial and Rod Beach with Cresa represented the seller, Phoenix-based Jefferson Partners, LLC. Bryan Taute and Charlie von Arenstchildt, also with CBRE, will handle the marketing and leasing assignment on the redeveloped property.

841 E. Jefferson was formerly home to Goodman’s Furniture and served as a showroom and warehouse. However, Ironline Partners believes the property is ideally located for redevelopment in the dynamic central business district. Situated at the southwest corner of Jefferson Boulevard and 9th Street, the property is next door to Chase Field, right on the Metro Light Rail line and steps from numerous retail amenities.

“Downtown Phoenix has seen significant revitalization over the last several years and adaptive reuse projects like the one planned at 841 Jefferson have played a major part in that revitalization,” said Bob Karber, Principal with Ironline Partners, whose other redevelopment projects include 2828 N. Central and 111 W. Monroe, both in central Phoenix.

According to the Downtown Phoenix Partnership, more than $4 billion has been newly invested in office space, retail, restaurants, educational facilities and convention space and hotel rooms in the area. This investment has transformed Downtown Phoenix into a center for employment, education, professional sports, living, and arts and culture. The dramatic changes over the past five years are providing a surge in momentum for additional development. 841 Jefferson looks to capitalize on that momentum. 

“An economically strong central business district is a vital component to a metropolitan area’s overall economic growth,” said CBRE’s Calihan. “As people return to city centers, so do office users. 841 E. Jefferson will be able to offer employers the unique and creative office environment their target employee base is looking for. In fact, several tenants have already shown interest in the space.”

841 E. Jefferson boasts 25-foot, wood-truss ceilings and an open-concept floor plan. Initial design plans show large banks of windows and rolling-overhead glass doors to be added during renovation to ensure maximum exposure of natural light and the creation of cross-functional indoor/outdoor space.

The existing building is approximately 48,500 square feet, but development plans call for the addition of a mezzanine, which will bring the building to 60,000 square feet. The building will offer potential users heavy parking, which can often be difficult to find in urban environments. The property’s parking along with direct access to the Metro Light Rail will serve high-density users well, meaning 841 Jefferson has the potential to bring hundreds of new employees to Downtown Phoenix.

Development of 841 E. Jefferson is slated to begin this quarter.

Church turns into retail development

CBRE has completed the sale of a property located at 5601 E. Broadway Boulevard. The site, formerly home to the Christian Faith Fellowship church, has been slated for retail redevelopment. The property has commanded a sale price of $2.2 million.

Nancy McClure and John Ash with CBRE’s Tucson office negotiated the transaction on behalf the buyer, a local developer under the entity Broadway Festival, LLC, and Christian Faith Fellowship.

In December, Ash represented Christian Faith Fellowship in the acquisition of a 21,807-square-foot church property that also included two adjacent single-family residences. The property, located at 1900 N. Country Club Drive was purchased for $1.7 million.

This new location has allowed Christian Faith Fellowship to meet significant growth requirements while occupying a state-of-the-art facility and decreasing their debt obligation,” said CBRE’s Ash. “Additionally, Broadway Festival, LLC finalized a successful rezoning of the property at 5601 E. Broadway which will allow the developer to accommodate the pent-up demand for high-profile retail and restaurant uses.”

With the success of nearby Park Place Mall-area properties in their redevelopments and re-tenanting, this site is sure to be a winner. The new use will bring the site onto the City’s tax rolls, add to the job base with new employees for incoming operators, and put a fresh-face on Broadway Boulevard,” said McClure. “It’s definitely a win-win for those involved as well as the community!”

5601 E. Broadway, which sits on approximately two acres on the north side of Broadway just east of Craycroft Road, will be redeveloped into a multi-tenant retail project. The property is adjacent to the eastern boundary of 5555 Broadway, a successful retail redevelopment project that is home to Hobby Lobby, Stein Mart, Vitamin Shoppe, Mattress Firm, among others.

The 5601 site has been planned to accommodate up to three freestanding pads and has already secured its first tenant. El Pollo Loco has signed a long-term ground lease for the western-most pad. Neil Board and Brian Gausden with Western Retail represented the El Pollo Loco Corporation, while CBRE’s Ash, McClure and Michael Laatsch represented Broadway Festival, LLC in the transaction.

The remainder of the site has seen significant tenant activity and the developer hopes to announce users for the balance of the property in the near future once negotiations are completed. Redevelopment of the site is slated to begin in early March.

Apollo Corporate Headquarters Sells for $183M

CBRE has negotiated the sale of the Apollo Corporate Headquarters campus, a Class A, 599,664 square foot, three-building, single-tenant office campus located at 4025, 4035, and 4045 South Riverpoint Parkway in Phoenix for $183 million. In addition to negotiating the sale, CBRE also arranged acquisition financing of behalf of the buyer.

CBRE’s Barry Gabel and Chris Marchildon in the Phoenix office, along with Kevin Shannon, Ken White, and Michael Moore in the firm’s South Bay office negotiated the sale. The team represented the seller, American Realty Capital Properties, Inc. (ARCP). The buyer was Epic Apollo, LLC, coordinated by Crown Properties, Inc.

CBRE’s Capital Markets’ Debt and Structured Finance team, including Bruce Francis, Dana Summers, Bob Ybarra, and Shaun Moothart, worked on behalf of the buyer and the lender, Goldman Sachs.

“The Metropolitan Phoenix investment market continues to post significant benchmarks towards full recovery,” said CBRE’s Gabel. “This property last traded at $283 per square foot in 2011, and this most recent sale marks a 7.6 percent increase at $305 per square foot. Investors recognize momentum in the market and we expect this is just the beginning of an active and healthy 2015.”

“The sale of this property is part of our ongoing active portfolio management strategy,” explained Thomas W. Roberts, Executive Vice President, Real Estate at ARCP. “During the third quarter of 2014 we began evaluating opportunities to bring this high-quality asset to market and maximize its value, capitalizing on the increasing strength of the Phoenix commercial real estate market.”

“This is another example of the increasing investment of foreign capital in all US markets. This property provides our off shore investor the stability of a long-term, 16 year remaining, net lease with one of the largest educational companies in the world,” said Shannon. “In addition, the annual rent increases of two percent provides the investor predictable annual revenue growth over the life of the lease.”

“This transaction served as an ideal opportunity to bring together world-class sponsorship and Goldman Sachs as the lender,” said Francis. “The borrower and lender worked closely and diligently on the financing of this office campus, which serves as the World Headquarters for the Apollo Group. From loan application to loan closing, it took just over 30 days to complete the transaction.”

The Apollo Group Headquarters campus is 100 percent leased to Apollo Group, Inc., one of the nations largest providers of higher education programs for working adults. It is comprised of three office buildings, one 10-story building at 267,962 square feet and two six-story buildings each comprised of 165,851 square feet, and two multi-level parking garage structures. The campus is home to approximately 2,850 executives and employees of Apollo Group, Inc.

This state-of-the-art, institutional-quality campus is centrally located within the Phoenix metropolitan area. It is adjacent to Interstate 10, providing access to Highway 60, Interstate 17, and Loop 202 and 101 freeways. The campus is within a ten-minute drive from both downtown Phoenix and downtown Tempe, a five-minute drive to Sky Harbor International Airport and benefits from proximity to numerous amenities, including restaurants, hotels and a variety of retailers.

New Arizona child safety department leases 112KSF

CBRE and JLL have negotiated a new 112,323-square-foot lease at Phoenix Corporate Tower located at 3003 N. Central Ave. in Phoenix. The tenant, who will be occupying space for administrative purposes, is the recently formed Arizona Department of Child Safety.


Dave Carder, Luke Walker and Eric Schultz with CBRE’s Phoenix office represented the landlord, a joint venture between Colony Capital and Montana Avenue Capital. The tenant was represented by Pat Williams, Andrew Medley, Steve Corney, Vicki Robinson and Chris Corney with JLL’s Phoenix office.


“The Midtown office market is currently experiencing a resurgence in tenant activity due to the central location, light rail access, walkable amenities, affordable rates and increased investment by multi-family and residential condo developers,” said CBRE’s Carder.


Phoenix Corporate Tower is a 445,811-square-foot26-story Class A office building in Midtown Phoenix. The landmark building, originally completed in 1965 and renovated once in 2006, has recently undergone another round of renovations. In the past 12 months the building owners invested in exterior paint, landscape improvements and upgraded modern lobby finishes. The building owners are currently in the design phase for further improvements to the common areas in and around the building.



CBRE reports southern Arizona transactions

CBRE Tucson has released the following recent transactions for Southern Arizona.

Roman Empire Investments, LLC has purchased a 6,250 sq. ft. building at 4143-4149 E. Speedway Blvd. from Commerce Bank of Arizona in Tucson. The buyer was represented by Nancy McClure and Michael Laatsch with CBRE’s Tucson office. The seller was represented by Jim Marian and Juan Teran with Chapman Lindsey Commercial Real Estate. The asset commanded a $235,000 sale price.

Petsmart, Inc. has leased 6,015 sq. ft. at 7090 N. Oracle Rd. Peter Villaescusa and Jesse Peron with CBRE’s Tucson office represented the landlord. David Uhles with Western Retail Advisors represented the tenant.

John Lebbs, CPA has leased 800 sq. ft. at 10132 N. Oracle Rd. from CJR Investments LLC. The landlord and tenant were both represented by Bruce Suppes with CBRE’s Tucson office.

El Pollo Loco, Inc. has leased 2,973 sq. ft. at 5601 E. Broadway Blvd. from Broadway Festival, in Tucson. Neil Board with Western Retail Advisors of Arizona represented the tenant. The landlord was represented by Nancy McClure, John Ash and Michael Laatsch with CBRE’s Tucson office.

CBRE Completes Sale of Rose Garden Apartment Community

CBRE has negotiated the following multi-family sales transaction:

Arcadia Place Condominiums LLC from Scottsdale, Ariz. has purchased Arcadia Rose Garden condominiums, a 30-unit multi-family property located at 3445 North 36th Street in Phoenix from TSR, Inc., also of Scottsdale. Brian Smuckler and Jeff Seaman of CBRE’s Phoenix office represented both buyer and the seller in negotiating the $1.8 million transaction.

Sabrina Nayer Joins CBRE

CBRE has announced that Sabrina Nayer has joined the firm as its Regional Business Operations Manager for the Southwest Region. In this role she will partner with the firm’s local market and regional leadership to develop and implement strategic priorities for business operations.


”I am thrilled to welcome Sabrina to the team. She is the perfect complement to our team of best-in-class professionals,” said Cathy Teeter, CBRE’s Director of Operations for the Southwest Region. “Her years of experience coupled with deep market knowledge will make her a pivotal asset as we work to continue to provide unrivaled service to our clients. I’m looking forward to partnering with her as we develop and implement initiatives that will move us ever closer to our vision of making CBRE a world-class organization.”


Ms. Nayer returns to CBRE where she was previously a real estate manager. Most recently, she was director of operations for Healthcare Trust of America. In this role, she was responsible for providing oversight and direction for the operation of approximately 3 million SF of medical office properties in the Midwest region. Ms. Nayer has also held positions with Transwestern, CoStar Group and a local valuation and appraisal company.


Over the course of her career, Ms. Nayer has established herself as well-respected, knowledgeable and capable real estate professional. She has considerable experience successfully running profitable operations while leveraging an effective administrative infrastructure that provides superior service to colleagues and clients alike. Additionally, Ms. Nayer is heavily involved in the community and has been active in Brokers for Kids, ChildHelp USA, the Southwest Autism Research Center and the local Valley of the Sun chapter of Rebuilding Together.



Papago Arroyo, courtesy of CBRE

Papago Arroyo sells for $40.85M

CBRE announced Tuesday the sale of Papago Arroyo, a three-building office complex in Tempe. The 279,503 square foot, two-story office buildings are located at 1255, 1275, and 1295 W. Washington St. in the geographic heart of metropolitan Phoenix and Tempe office market. The asset commanded a sale price of $40.85 million.

Bob Young, Glenn Smigiel, Steve Brabant and Rick Abraham with CBRE’s Phoenix office, along with Andrew Cheney and Craig Coppola with Lee & Associates, represented the seller, Greenwood & McKenzie of Tustin, Calif., in the transaction. The buyer was undisclosed.

In addition to handing the investment sale, CBRE Vice Chairman Bruce Francis and Vice President Shaun Moothart, both with the CBRE Debt & Structured Finance team, arranged the ten-year loan on behalf of the borrower. The permanent financing included five years of interest-only.

Constructed in 1998 and 96 percent leased, Papago Arroyo is part of Papago Park Center, a 350-acre infill business park with a strong corporate tenant profile, including Wells Fargo, DHL, Union Bank, State Farm, and First Solar. The Tempe submarket has a 10.3 percent vacancy rate, less than half the overall office market vacancy rate in metropolitan Phoenix. This is indicative of the strong tenant preference for a location in Tempe.

“Tempe continues to perform at the top of the metropolitan Phoenix office market. Papago Arroyo offers tenants a centralized, highly desirable location with a strong amenity base and access to one of the strongest labor pools in the Valley,” said CBRE’s Young, lead broker in the investment sale.

“The outstanding central location of the property with its close proximity to Sky Harbor International Airport and the major valley freeways made this a very desirable financing opportunity for a wide variety of lenders and will ensure the property’s ability to draw tenants and stay well-occupied into the future,” says Francis.


John Ash joins CBRE in Tucson

CBRE’s Multifamily Investment Group has announced the addition of John Ash in the company’s Tucson office.

Ash-4x6Mr. Ash will work in conjunction with Brian Smuckler and Jeff Seaman, who are based in company’s Phoenix office.

“We’re pleased to welcome John to the team,” said Senior Vice President Brian Smuckler. “We pride ourselves on the comprehensive, best-in-class transaction, valuation and underwriting services we offer our clients in the multifamily sector. With the addition of John, we will be better positioned to service clients located and interested in the Southern Arizona market.”

Ash will focus his attention on the Tucson multifamily market, working with clients looking to place capital in Southern Arizona. With the help of his Phoenix-based partners, he will leverage CBRE’s comprehensive Investment Properties Group platform in order to ensure his clients reach their real estate goals.

“I’m very proud of John. His extensive market knowledge and experience in investment transactions make him an excellent addition to CBRE’s Multifamily Investment Group,” said Ike Isaacson, managing director of CBRE’s Tucson office. “The greater Tucson market will greatly benefit from the highly specialized service John will provide. This will mean good things for our clients.”

Ash was promoted to Senior Associate in 2012 and over the last three years has been involved in multiple land transactions leading to the construction of nearly 2,000 beds of student housing. He is experienced in investment opportunities ranging from selling income streams of various types, directing and managing the full scope of CBRE’s brokerage services to achieve lease stabilization, infill repurposing and land acquisition and assemblage slated for development or investment.

Ash is a graduate of the University of Arizona in Tucson where he studied business administration and marketing. A varsity athlete while at UA, Ash was a member of the Wildcat men’s basketball program, including the 1997 NCAA National Championship and 2001 NCAA National Runner-Up Teams.

Mr. Smuckler and Mr. Seaman lead the Multifamily Investment Properties Group in Arizona. With over 33 years of combined experience, they provide comprehensive multifamily transaction experience to investors of B and C class multifamily properties throughout Arizona. To date, they have completed over 360 transactions accounting for more than 14,000 units and total consideration exceeding $660 million.

CBRE’s Investment Properties Group is part of CBRE Capital Markets. The platform offers customized investment sales, acquisition and recapitalization services, together with industry leading market intelligence, to provide unmatched exposure to buyers across the country. By utilizing market research, a seamless execution process and in-depth relationships, Investment Properties can anticipate trends and command capital globally.

Metro Commons

Metro Commons redevelopment sells for $7.8M

CBRE has completed the sale of Metro Commons, a multi-tenant retail center located at 3121 W. Peoria Ave. in Phoenix. The ±17,755-square-foot, class A retail center commanded a sale price of $7.78 million.

Andrew Fosberg, Cam Stanton, Chris Ackel and Molly Busch with CBRE’s Phoenix office represented the seller, an entity formed by Jacor Partners of Phoenix, AZ. The buyer was Brentwood, CA Roseben MC, LLC.

“Metro Commons is an excellent example of a quality, in-fill redevelopment project.  The seller tore down an old office building and turned the corner into thriving retail location,” said CBRE’s Fosberg. “The strip retail center commanded an impressive per square foot price of $438.”

Metro Commons was 100 percent leased at time of sale and home to nationally recognized tenants, including Verizon, Smashburger, The Joint, Potbelly’s, Menchie’s, Mod Pizza and Yogi’s Grill, among others. The property and its tenants benefit from excellent visibility and signage along Peoria Avenue. Metro Commons also benefits from freestanding Chick-Fil-A and Starbucks pads that shadow-anchor each side of the property.


Osborn Place apartments sell for $1.83M

CBRE has negotiated the following multi-family sales transaction:


  • Phoenix Fund IPIRG, LLC from San Diego, California has purchased Osborn Place apartment complex, a 30-unit, multi-family property located at 1414 East Osborn Place in Phoenix, Ariz. from EQ Downtown, LLC of Tempe, Ariz. Brian Smuckler and Jeff Seaman of CBRE’s Phoenix office represented both buyer and the seller in negotiating the $1.83 million transaction.
Gas Station in Florence, CBRE, WEB

ARCP REIT buys gas station portfolio for $40M

CBRE has completed the sale of a twenty-four property gas station and convenience store portfolio for properties in Tucson and southern Arizona. The portfolio commanded a sale price of $39.75 million.

Pete Villaescusa and Jesse Peron in CBRE’s Tucson office represented the seller, Reay’s Ranch Investors, LLC of Tucson. The buyer was a national REIT, American Realty Capital Properties (ARCP).

Of the 24 convenience store locations, eight are in the Tucson area, and the rest are located throughout Southern Arizona. Under a new master lease agreement between ARCP and El Paso, Texas-based Western Refining, the stores will be rebranded and operate under the “Giant” moniker. In addition to the twenty four sale properties, another seven locations were leased to Western Refining for a total of thirty one new locations for their company to operate.

This sale was the culmination of tremendous efforts and cooperation between the Reay’s Ranch group, ARCP, and Western Refining,” said CBRE’s Villaescusa. “It was a very complex deal involving operating businesses, fuel supply agreements, some fee owned and some leasehold real estate, and existing inventory and employees. It will provide Western Refining with more retail outlets for their product and reward the Reay’s group for building a successful business over their operating history.”

Washington Business Park

Washington Business Park sells for $11.15M

CBRE has completed the sale of Washington Business Park located at 5324-5330 E. Washington St. in Phoenix. The ±139,196-square-foot, four-building business park commanded a sale price of $11.15 million.

Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, BREOF AIP Phoenix, LLC of Toronto, Ontario, Canada. The buyer was Scottsdale-based CAM-10, LLC, an affiliate of Covington Asset Management, LLC.

Despite the fact the property is not fully stabilized, Washington Business Park attracted significant interest from local, regional and national buyers,” said CBRE’s Gabel. “This property offers tremendous opportunity for investors in the form of reliable cash flow, strong credit tenancy and upside through lease-up of remaining space.”

Washington Business Park is strategically located between the airport and Tempe and has a solid tenant lineup with nicely finished vacancies that are well positioned for lease up,” said Len Noel of CAM-10, LLC. “We are pleased to add this unique project to our existing Arizona portfolio.”

Developed in 1985 with several capital improvements made throughout the years, Washington Business Park was 72 percent occupied at time of sale. Tenants include Walgreens Drug Co., Arizona Department of Revenue and Quality Care Network, Inc. Walgreens recently expanded and extended their lease.

The property benefits from an excellent central Phoenix location and adjacency to the METRO light rail. Washington Business Park’s centralized location allows for accessibility to all major employment cores. It also features proximity to four major freeways in Loop 202, Loop 101, Interstate 10 and State Route 143.

TargetTempe, CBRE, WEB

Florida investor buys Target, US Bank buildings

CBRE has completed the sale of two single-tenant net leased investment properties in Tempe, Ariz. The transaction included a free-standing, single-tenant Target and US Bank at the northeast corner of McClintock Drive and Baseline Road. The properties are located on a 10.02-acre corner parcel and commanded a sale price of $11.9 million representing a 5.35 percent cap rate.

Joseph Compagno with CBRE’s Phoenix office represented both the buyer and the seller in the transaction. The seller was Tempe, Ariz.-based Hudson Retail Center, LLC. The buyer was Rosebud Tempe One, LLC of Palm Beach, Fla.

“Our net lease investment team continues to see a significant demand from investors for this type of real estate.  These investors are looking for less management intensive properties, best-in-credit tenancy and stable cash flow,” said Compagno. “This was a highly sought after investment. It’s an incredibly rare piece of real estate to acquire, because Target owns the majority of their real estate. We generated fifteen offers through our aggressive marketing campaign and the property sold at list price.”

Geoffrey Harris, also with CBRE’s Phoenix office, arranged acquisition financing for the purchase. The three and a half year bank loan totaled $7.8 million with an interest rate of 2.91 percent and 25 year amortization.

The investment consists of triple net leases with Target Corporation and US Bank. Target has occupied its building since 1988, their building was constructed in 1974. The property is strategically located in a densely populated area that is home to approximately 157,465 residents in three miles and 353,705 residents within a five mile radius. The area also boasts a large employment center with approximately 160,000 jobs within three miles and 515,083 jobs within a five mile radius. Major employers in the area include Intel, Arizona State University and Maricopa Community Colleges, among others.

Administration Officials - Hiring Quotas

CBRE hires three VPs for Retail Services Group

CBRE has hired Vice Presidents Greg Abbott, Bill Bones and Chris Ryan, three tenured, well-respected commercial real estate professionals, to join the firm’s Retail Services Group in Phoenix, Ariz.  They will partner on a team that will deliver integrated, strategic landlord advisory services including the leasing, acquisition and disposition of retail space in the Phoenix metro market. They will also partner with CBRE’s existing, best-in-class, property management team to deliver a cohesive set of property value enhancement services to their clients

“Greg, Bill and Chris have established track records and solid reputations in the industry, which makes them an excellent complement to CBRE’s team of best-in-class retail professionals,” said Craig Henig, CBRE’s senior managing director and Arizona market leader.  “Their combined talent and market knowledge add value and strengthen our ability to serve the complex real estate requirements of retail property owners and operators.”

Misters Abbott, Bones and Ryan have completed more than 1,200 transactions totaling over 7.25 million sq. ft. Their combined 53 years of experience, vast market knowledge, and individual unique skill sets will ensure CBRE’s retail clients receive the most strategic, personalized and outcome-driven service.


Greg Abbott

Greg Abbott

Mr. Abbott is a twenty-year veteran of the Arizona retail real estate market. He returns to CBRE, where he had three prior years’ experience, after roles with Grubb & Ellis, Strategic Retail Group and De Rito Partners, Inc. He is a graduate of Arizona State University in where he earned a B.S. in marketing.






Bill Bones

Bill Bones

Mr. Bones comes to CBRE from De Rito Partners. He has spent the last ten years honing his skills of creating and implementing strategic, results-oriented leasing plans for clients. A fourth generation Arizonan, Bill Bones specializes in landlord representation, tenant representation, land sales, and pre-pleasing of new developments in Arizona. He holds a Bachelor of Science degree in real estate from the WP Carey School of Business at ASU.





Chris Ryan

Chris Ryan

Mr. Ryan has most recently been Director of Real Estate with TitleMax, Inc. He was responsible for the development and growth of the company’s locations throughout Arizona, California, Utah, Nevada and New Mexico. Prior to this position, he was a broker with De Rito Partners as well. He is a graduate of California Polytechnic State University in San Luis Obispo, Calif. where he studied business and finance.


AZRE announces 2015 RED Awards finalists

Every February for the last 10 years, AZRE magazine has shone a spotlight on the commercial real estate industry through its annual Real Estate Development (RED) Awards. This year, a record number of projects and brokerage teams were nominated for a chance to be recognized at this year’s RED Awards.

For tickets to this year’s RED Awards, click here.

After lively debate and a few unanimous decisions among this year’s selection committee, AZRE proudly announces the 2015 RED Award finalists are, in alphabetical order:

Congratulations to this year’s contending projects:
Adelante Healthcare Peoria
Banner Estrella New Tower Addition
Banner MD Anderson Cancer Center Phase II Clinic Expansion
Bottled Blonde/Livewire
Broadstone Lincoln
Chandler Regional Medical Center
CityScape Residences
College Avenue Commons
Coyote Center at Chandler-Gilbert Community College, Pecos Campus
CyrusOne, Building 4
General Motors IT Innovation Center
GoDaddy Global Technology Center
Great Hearts Academies, Arete Preparatory Academy
Heritage Marketplace
Lewis Prison Complex Expansion
Liberty Center at Rio Salado
Marketplace at Lincoln & Scottsdale
Mesa Community College Performing Arts Center
Ocotillo Brine Reduction Facility
Phoenix Sky Train Stage 1A
SkySong, The ASU Innovation Center — SkySong 3
Start @ West-MEC, Innovation Center
Sun Devil Marketplace
Sunset Heights Elementary School
Sussex Properties for TLC Label
The Newton
University of Arizona—McKale Center Renovation
University of Arizona—Old Main renovation

And the companies that have been nominated as finalists with the above projects:
ADM Group
Alliance Residential Builders
Alliance Residential Company
Ameris Construction
Arizona Board of Regents
Arizona Department of Administration
AV3 Design
Axis Projects Corporation
Balmer Architectural Group
Banner Health
Butler Design Group
BWS Architects
Cam-8, LLC
Carollo Engineers
Cawley Architects, Inc.
Chasse Building Team
City of Phoenix
Corgan Associates, Inc.
CyrusOne Inc.
Dick & Fritsche Design Group
Dignity Health
DLR Group
DPR Construction
Emc2 Architects Planners, PC
Evening Entertainment Group
Fanning Howey
Fimbres Studio
Follett Higher Education Group
Gannett Fleming, Inc.
Great Hearts Academies
HKS, Inc.
Hunt Construction, an AECOM Company
Iconic Design Studio

Intel Corporation
JE Dunn Construction
John Douglas Architects
Jones Studio
Layton Construction Co., Inc.
Liberty Property Trust
LGE Design Build
Maricopa Community Colleges
Mark IV Capital
McCarthy Building Companies, Inc.
McCarthy Kiewit Joint Venture
MD Heritage LLC
Modus Development
Mortenson Construction
Okland Construction
ORB Architecture, LLC
Orcutt | Winslow
Peoria Unified School District
Plaza Companies
Poster Frost Mirto
RED Development
RJM Construction
RSP Architects
Ryan Companies US, Inc.
Sundt Construction, Inc.
Sussex Properties
The Whiting-Turner Contracting Company
Venue Builders
Venue Projects
Wespac Construction Inc.


Brokerage Team Finalists

Pat Feeney, Dan Calihan and Rusty Kennedy
Todd Fogler, Ryan Eustice and Jami Savage-Gray
Tom Adelson, Jim Fijan, Jerry Robert and Corey Hawley

Leroy Breinholt
Trent Rustan
Tyson Breinholt

Cushman & Wakefield
Chris Toci and Chad Littell
Jackie Orcutt, John Grady and Mackenzie Ford
Larry Downey

Mike Haenel, Andy Markham and Will Strong
Robert Buckely, Tracy Cartledge, Steve Lindley

Anthony Lydon and Marc Hertzberg
Bill Honsaker, Anthony Lydon and Marc Hertzberg
Dave Seeger, Karsten Peterson and Mark Gustin
John Bonnell and Brett Abramson
Mark Detmer and Bo Mills
Pat Harlan, Steve Sayre and Kyle Westfall
Pat Williams, Steve Corney, Vicki Robinson and Andrew Medley

Lee & Associates
Craig Coppola and Andrew Cheney

Velocity Retail
Andy Kroot
Darren Pitts and Dave Cheatham

The project and brokerage team winners will be announced at the RED Awards reception on Thursday, Feb. 26, at the Arizona Grand Resort between 6 and 8 p.m. At the event, winners of AZRE’s 2015 developer, general contractor, architect and subcontractor of the year awards will also be announced.

Tickets are now available for the RED Awards. here for more information.

ATS at Waypoint, LPC, WEB

Groundbreaking marks start of Waypoint office campus

Officials from Harvard Investments, Lincoln Property Company (LPC), the City of Mesa and anchor tenant American Traffic Solutions (ATS) were on hand yesterday for the groundbreaking of Waypoint, a two-building, 258-square-foot Class A office campus in Mesa, Ariz., that is nearly 50 percent pre-leased to ATS.

ATS, a leader in road safety and toll management, will relocate more than 600 workers to fully occupy Waypoint’s 108,000-square-foot Building One. A 152,000-square-foot Building Two will accommodate single- and multiple-occupancy users. Completion of Building One is scheduled for late 2015, at which time ATS will officially move its headquarters operations into the two-story accommodations.

Waypoint sits on a prime 19.55 acres along the Loop 202 freeway, adjacent to the 1.3 million-square-foot Mesa Riverview mixed-use project and less than one mile from the Loop 101, the new Cubs Spring Training Facility and the newly reconfigured Riverview Park.

“Waypoint will be an excellent addition to the Riverview employment district,” said Mesa Mayor John Giles. “It is a great location next to two busy freeways, shopping center and parks. I look forward to welcoming more projects like Waypoint to Mesa.”

“This is an exciting time to build in the Southeast Valley and ATS is a wonderful client to build for,” added Craig Krumwiede, President of Harvard Investments. “We’re excited to bring their new home to fruition – a truly dynamic place to work within a very high energy, high amenity environment.”

“Waypoint sits in a buzzing, contemporary office corridor that continues to earn great demand from both employers and employees,” said Lincoln Property Company’s Executive Vice President David Krumwiede. “People want to be here, and that has allowed us to break ground on one building that is already 100 percent leased, and a second building that will soon round out this very valuable infill site.”

Just six miles east of Phoenix Sky Harbor International Airport, Waypoint is conveniently accessed via Loop 101 at Rio Salado Parkway, and the Loop 202 at Dobson and Alma School roads. It is directly east of Mesa Riverview, a retail, hospitality and entertainment complex. It is also less than one mile from the new Cubs Spring Training Facility and the new Riverview Park, and within a few minutes’ drive to Arizona State University.

When completed, Waypoint will join an existing Hyatt Place Hotel, two existing, two-story office buildings and a 180-room, upscale brand Sheraton Hotel that is under construction now and scheduled to open in March 2015. The hospitality site amenities will include full-service restaurants, bars, swimming pool, fitness facility and more than 30,000 square feet of meeting and event space.

“This facility offers all of the things we looked for when choosing where to place our headquarters,” said James Tuton, CEO of American Traffic Solutions. “The opportunity to have a state-of-the-art facility built to our specifications, along with the easy access to major highways and the variety of restaurants, hotels and other shops, made this the perfect location for our new headquarters.”

“I’m thrilled to see the continued development of Riverview with the new Waypoint development,” said Mesa District 1 Councilmember Dave Richins. “I am pleased to welcome new corporate partners and employers to Mesa.”

Created by project architect The Davis Experience, Waypoint reflects a “high-tech” aesthetic that extends from the buildings’ exteriors to its two-story lobbies. Façades will feature a multi-layered envelope of architectural cast concrete panels and high performance dual-pane aquamarine glazing. Interior entries will showcase clean lines, timeless materials, simple detailing and the focal point – an open “floating” grand stair. Waypoint will offer abundant parking, shaded amenity areas located around the office campus and the built-in amenity of Tempe Canal’s multi-use path.

Dave Carder, Luke Walker and Eric Schultz, from the Phoenix office of CBRE, lead the project’s marketing and leasing efforts.


Az Business honors top corporate counsel

Effective corporate counsel has never been more important than it is in today’s new economy. And on Thursday at the Camelback Inn, Az Business magazine partnered with the Arizona Chapter of the Association of Corporate Counsel and the State Bar of Arizona to present the 2015 Arizona Corporate Counsel Awards (ACC Awards).

2015 ACC Awards Winners

  • David Bixby, Banner Health – General Counsel of the Year winner
  • Franc Del Fosse, Insys – IP Attorney winner
  • JDA Software legal department – Legal Department winner
  • Carmen Neuberger, Phoenix Children’s Hospital – Non Profit winner
  • Mary Beth Orson, Apollo Education Group – Public Company winner
  • Michael Reagan, Kahala Corporation – Private Company winner
  • Jason Steiner, Insight Enterprises – Up & Comer winner

2015 Arizona Corporate Counsel Awards


As the featured speaker, high-profile Valley attorney Grant Woods had the crowd of more than 300 rolling with his roast of the current political scene.

“Sheriff Joe (Arpaio) became sheriff when I was attorney general,” Woods said, “and I thought he was amusing. But that joke is just really tired now.”

Presenting sponsors of the ACC Awards were Squire Patton Boggs and CBRE.

The following attorneys earned 2015 ACC Awards:

• David Bixby, senior vice president, general counsel and secretary at Banner Health,  was named General Counsel of the Year. Bixby joined Banner (then Samaritan Health System) in 1998 as senior vice president, general counsel and secretary. From 1981 to 1998, he was with Lewis and Roca LLP, in Phoenix, as an associate and partner, he specialized in corporate mergers and acquisitions, finance and health care law. Bixby received his bachelor of arts degree in history and literature from Harvard University, a bachelor of arts (honors) in history from the University of Cape Town, South Africa, and his law degree from Yale Law School. He is a member of the Arizona Bar, the American Health Lawyers Association, and the American Corporate Counsel Association.

JDA Software‘s legal department earned Legal Department of the Year. Led by Chief Legal Officer Martin Felli, JDA’s legal team has grown from approximately 10 to 24 associates in the last six months to better support the company’s strategic initiatives.  The legal department has focused its efforts on building the team from Arizona-based legal talent. The team’s proactive, high-engagement business model aligns to the company’s guiding principles and leaves a lasting impression that JDA is a company people want to do business with. With a focus on improved communications, employee engagement, streamlined corporate governance processes and proactive client-centered  internal training and awareness initiatives on a wide range of compliance matters, the team embraces the company’s mission to “plan to deliver” in all aspects of its work.

• Franc Del Fosse, general counsel and secretary at Insys, was named IP Attorney of the Year.  After joining Insys, Del Fosse worked with President and CEO Michael L. Babich in establishing the legal and compliance departments of Insys.   Immediately prior to joining Insys, Del Fosse was a partner at the law firm of Snell & Wilmer. Del Fosse began his legal career as an associate at the law firm of Shearman & Sterling and holds a degree from Columbia University School of Law and an undergraduate degree from Arizona State University.  In 2013, Insys had its initial public offering and had the top performing IPO nationally that year. In 2014, Inys was named Arizona Bioscience Company of the Year by the Arizona Bioindustry Association.

• Carmen L. Neuberger, senior vice president, legal affairs and general counsel for Phoenix Children’s Hospital earned Nonprofit Attorney of the Year. Neuberger is responsible for managing the legal environment at Phoenix Children’s. This includes providing legal guidance, developing hospital-wide policies and procedures, counseling the hospital on business transactions, and managing complex contractual relationships. She also is involved in the legal aspects of medical staff privileging and credentialing, risk management, patient-related matters, regulatory compliance and privacy, clinical research and employment law. She is also credited with developing and implementing a code of ethics, and improving the relationship between the legal and human resources departments. Neuberger came to Phoenix Children’s in 2007 with more than 20 years of experience in healthcare law.

• Mary Beth Orson, vice president, legal and deputy general counsel for Apollo Education Group was named Public Company Attorney of the Year. At the time Orson joined Apollo, there were a number of significant pending legal matters, including a Section 10(b)(5) class action lawsuit. In response to these matters and other challenges, the Apollo general counsel’s office, under Orson’s direction, updated and adapted the company’s disclosure controls and procedures to reflect the far more complex business organization that Apollo had become in the years prior to her arrival. These policies and procedures led to enhanced public disclosure practices that we believe have been emulated by other leading proprietary education companies. Orson is credited with effectively creating order out of disorder.

• Michael Reagan, executive vice president and general counsel for Kahala Corporation, was named Private Company Attorney of the Year. During his 15-year tenure with Kahala, Reagan has overseen all legal and real estate affairs for the company and its 14 restaurant brands — which include Cold Stone Creamery, America’s Taco Shop, Blimpie, Taco Time, Great Steak & Potato and Samurai Sam’s. He is part of an executive team that, during the past eight years has grown Kahala from 80 outlets to more than 3,000; raised nearly $200 million in private transactions; identified, negotiated and completed nearly $200 million in acquisitions. Reagan personally handled all due diligence and other legal aspects of each transaction and helped integrate the acquired companies into Kahala and its uniform franchising and operating platform.

• Jason Steiner, corporate counsel, Insight Enterprises, was named Up-and-Comer of the Year. In less than two years, Steiner has proved himself to be a valuable contributor to the Legal Department at Insight, working on contracts, supporting internal investigations throughout North America, litigating smaller claims himself, supporting litigation involving restrictive covenants with former employees, becoming proficient in the field of eDiscovery and developing the necessary labor and employment knowledge to be a front-line resource for the HR department.  Steiner has a “can do” attitude, a willingness to learn new areas and the drive and tenacity to see tasks through to completion. Steiner graduated from ASU with a B.S. in finance (2009) and a J.D. (2012) from the Sandra Day O’Connor College of Law.

Sports Authority

$11.5M acquisition loan for lease property

CBRE Capital Markets has arranged an $11.5M loan in the sale of a triple-net leased retail property leased to Sports Authority. The 50,714-square-foot property sold for $15.25M.

Geoffrey Harris, with CBRE’s Capital Markets Debt & Structured Finance group in Phoenix, arranged the five-year loan on behalf of the buyer, a private investor based in Florida. Loan terms included a low 2.92 percent interest rate with a 25-year amortization.

“Start to finish, we were able to complete this transaction in just 34 days despite the holidays landing in the middle of closing,” said CBRE’s Harris. “Net leased assets continue to perform well in this market and this deal was especially attractive to the buyer. Sports Authority has eight years remaining on the initial lease term, a quality tenant that should provide a solid return on investment.”

Sports Authority is one of the largest sporting goods retailers in the United States, operating more than 460 stores in 45 U.S. states and Peurto Rico. This particulary property is positioned in a major retail trade area on the southeast corner of 16th Street and Camelback Road that includes over 5.6 million square feet of office and retail amenities. Built in 1997 with renovations completed in 2009, Sports Authority serves as the anchor of the shopping center.

Kierland II

Kierland II sells for nearly $50M

CBRE has negotiated the sale of Kierland II located at 16260 N 71st Street in Scottsdale, Ariz. The 237,875-square-foot office building commanded a sale price of $49.15 million. The property was approximately 80 percent leased at time of sale.

Jim Fijan and Will Mast with CBRE’s Phoenix office negotiated the transaction. The seller was The Prudential Insurance Company of America. The buyer was Irvine, Calif.-based LBA Realty, a full service real estate investment and management company.

“The sale of Kierland II is a great way to kick off 2015 and this sets the tone for what should be a good year for the office investment market,” said CBRE’s Fijan. “We expect the office market to be very active throughout 2015. The past few quarters have seen steady market improvement and buyers and sellers alike are looking to capitalize on the improved fundamentals the Phoenix office market is demonstrating.”

Developed in 2001, the four-story, class A, multi-tenant office building is currently home to Prudential, Brookfield Relocation Services and 41st Parameter. Located in the heart of North Scottsdale, the property benefits from proximity to world class retail amenities, restaurants and resorts as well as direct access to the Loop 101 Freeway via Scottsdale Road. Tenant’s amenities include ample covered parking as well as a new on-site full service restaurant.