Tag Archives: CBRE

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.

4127 E. Van Buren

Prosper Marketplace expands into Phoenix

Cushman & Wakefield of Arizona, Inc. negotiated a 17,998-square-foot lease for Prosper Marketplace, a peer-to-peer lending company that opened a new office at Airport Tech Center, 4127 E. Van Buren St.

It is the first office outside the company’s San Francisco headquarters. The Prosper platform connects people who want to borrow money with people who want to invest money, offering an alternative to traditional banking institutions.

“They initially toured over 20 locations and buildings,” said Larry Downey, Vice Chairman for Cushman & Wakefield of Arizona. “Airport Tech Center gave Prosper Marketplace a central location within the city and great access to the transportation freeway corridors. This is a very functional building for them and gives them the flexibility and room to expand within the project.”

Located minutes from Phoenix Sky Harbor International Airport, the new location is currently recruiting, with plans to expand to 40 employees in its first year. The office will eventually employ about 150 people.

“The Prosper platform has grown more than 400 percent over the past year, and we expect continued growth in 2014. Prosper Marketplace is excited to open a new office in Phoenix to support our growth, and we are looking forward to being part of the local business community,” said Josh Tonderys, Chief Risk Officer, Prosper Marketplace.

“We are encouraged by the expansion of companies like Prosper Marketplace,” said Barry Broome, president and CEO of the Greater Phoenix Economic Council. “The new jobs that will be available at the Phoenix office show a transformative shift from traditional back office jobs, providing exciting new opportunities for the existing technical talent in the region.”

Downey and Curtis Chickerneo of Cushman & Wakefield represented the tenant. The landlord, Arden Realty Limited Partnership, was represented by Jerry Roberts and Corey Hawley of CBRE. Occupancy is in late July.

CBRE sells two Class-A offices for $44M in Scottsdale

92 Mountain View, located at 10001 N. 92nd St. in Scottsdale.

92 Mountain View, located at 10001 N. 92nd St. in Scottsdale.

CBRE has negotiated the sale of two premier class A office buildings in the Phoenix metro area for a total consideration of $44.15 million. The sale included the ±106,931-square-foot Scottsdale Gateway I, located at 9201 E. Mountain View Rd. in Scottsdale, and the ±116,200-square-foot 92 Mountain View, located at 10001 N. 92nd St. in Scottsdale.

Barry Gabel and Chris Marchildon with CBRE’s Phoenix office, along with Kevin Shannon, Ken White and Michael Moore in CBRE’s Los Angeles office, brokered the transaction between the sellers, TR Scottsdale Gateway I Corp. and TR 92 Mountain View Corp., and Equus Capital Partners, Ltd. of Los Angeles. Jenifer Ratcliffe and Erin Curry with Chicago-based LPC Realty Advisors were also involved in the transaction on behalf of the seller. Equus Capital Partners purchased the properties for a total consideration of $44.15 million.

Bryan Taute with CBRE’s Phoenix office has been awarded the marketing and leasing. Equus Capital Partners has also retained CBRE to handle property management.

Scottsdale Gateway I, located at 9201 E. Mountain View Rd.

Scottsdale Gateway I, located at 9201 E. Mountain View Rd.

“We are pleased to add these two well-leased, class A office properties to our existing Scottsdale portfolio,” said Jonathan Praw, vice president and head of Equus Capital Partner’s West Coast Regional Office, who oversaw the transaction for the firm, “This investment presents the opportunity to acquire institutional grade assets at an attractive basis in a strong infill location.”

“Interest in these two assets was exceptionally high given their strong leasing history. Both properties are located in a dynamic infill location and each has averaged 90 percent occupancy for the past ten years due to being surrounded by strategic economic engines such as Scottsdale Healthcare’s Shea Medical Campus and the CVS Caremark Corporate Campus,” said CBRE’s Gabel. “In addition, the properties are both in excellent condition, boast exceptional parking and are adjacent to abundant retail services and the Loop 101 Freeway.”

Built in 1998, Scottsdale Gateway I is a two-story, class A office building located directly across from the ±433-bed Scottsdale Healthcare Hospital and Medical Campus. The property is 91 percent leased to five, high-quality tenants, including Matrix Medical Network, Grand Canyon University, Scottsdale Healthcare Rehabilitation Center, SimonMed Imaging and Q Vision. Each of the tenants benefits from its proximity to a major hospital and medical campus.

Built in 1996, 92 Mountain View is also a two-story, class A office building with proximity to Scottsdale Healthcare Hospital and Medical Campus. The property is fully leased to CVS Caremark, the largest pharmacy healthcare provider in the United States and Scottsdale Healthcare Foundation headquarters, a group of world class medical centers within Metropolitan Phoenix.

Both properties benefit from surrounding amenities including dining, shopping, golf resorts and executive housing, as well as close proximity to the Loop 101 Freeway.

RMRM, LLC has leased 7,910 square feet of industrial space at Antigua Corporate Center located at 16681 84th Ave. in Peoria, Ariz.

CBRE releases recent lease transactions

CBRE’s Phoenix office has released the following recent leasing transactions for the metropolitan area:

Wells Fargo Tenant Advisors has renewed a 5,000-square-foot lease for office space at 12515 W. Bell Rd. in Surprise, Ariz. Kevin Calihan with CBRE’s Phoenix office represented the tenant. The landlord, Nellis Family Investments, LLC, was represented by Alan Davidson with Eagle Commercial Realty Services.

DNB Engineering, Inc. has leased 5,435 square feet of industrial space at 10 Chandler Business Park located at 580 N. 54th St. in Chandler, Ariz. Mike Parker, Evan Koplan and Mark Krison with CBRE’s Phoenix office represented the tenant. The landlord, North 54th Street Venture, LLC, was represented by James Harper with Cassidy Turley.

Cumming Construction Management, Inc. has leased 4,876 square feet of office space at14350 N. 87th St. in Scottsdale, Ariz. CBRE’s Kevin Calihan represented the tenant. The landlord, Miref Northsight, LLC, was represented by Sean Spellman with Cushman & Wakefield. This marks an expansion for the international project and cost consulting firm.

Dell, Inc. has renewed an existing 12,303-square-foot lease at 4747 N. 22nd St. in Phoenix, Ariz. CBRE’s Kevin Calihan represented the tenant. The landlord, Anchor Center II, LLC, was represented by Judy Tucker with Camroad Properties.

RMRM, LLC has leased 7,910 square feet of industrial space at Antigua Corporate Center located at 16681 84th Ave. in Peoria, Ariz. Mitch Stravitz, Cooper Fratt, John Werstler and Jerry McCormick represented the landlord, First Arrowhead Commerce Center, LLC. The tenant was represented by Tom Keck with West USA Realty.

Pathlight Investors has leased 4,067 square feet at 3131 E. Camelback Rd. in Pheonix, Ariz. Kevin Calihan with CBRE’s Phoenix office represented the tenant. Ray Harris with Cassidy Turley represented the landlord, Lincoln Property Company. The lease marks an expansion for the investment advisory firm.

cemex

CEMEX Construction moves HQ to Phoenix

CBRE has completed a 17,134-square-foot office lease at 5555 E. Van Buren St. in Phoenix, Ariz. The lease marks a relocation of CEMEX Construction Materials’ regional headquarters within the Valley. The financial terms of the transaction were not disclosed.

Luke Walker, Dave Carder, Nate Goldfarb and Eric Schultz with CBRE’s Phoenix office negotiated the lease on behalf of the landlord, Abart Properties 5555 LLC of Scottsdale, Ariz. CEMEX was represented by Darius Green with Keyser Co.

Previously home to Phoenix-based Weitz Construction, CBRE was able to lease the space at 5555 E. Van Buren within three months of Weitz’s departure. CBRE’s Walker points to the property’s creative-office environment and the workplace-strategy trends corporate office users are embracing as major factors in his team’s ability to lease the space quickly.

“Demand for creative space has extended beyond the start-ups and tech centered industries and we are definitely seeing increased interest in this type of space from more traditional office users,” said Walker. “Really since late 2012 approximately 90 percent of tenant prospects that visit 5555 E. Van Buren are seeking workspaces that optimize efficiency, collaboration and creativity.”

Built in 2003, 5555 E. Van Buren is located at the southwest corner of 56th and Van Buren Streets and has spectacular views of Papago Buttes and Papago Golf Course. It features unique, contemporary architecture with stained concrete floors and an exposed ceiling grid. The two-story class A office building benefits from direct access to Loop 202 and proximity to hotel and restaurant options.

CBRE reports recent multi-family transactions

CBRE has negotiated the following multi-family sales transactions:

Paradise Vista
7102 North 43rd Avenue Partners, LLC of Denver, Colo. has purchased the Paradise Vista apartment complex, a 352-unit multi-family property located at 7102 N. 43rd Ave. in Glendale, Ariz., from Paradise Vista Affordable Apartments, LLC of San Diego, Calif. Brian Smuckler and Jeff Seaman of CBRE’s Phoenix office represented both parties in negotiating the $7 million transaction.

Carol Mary 2
Carol Mary, LLC of Phoenix, Ariz. has purchased the Carol Mary apartment complex, a 40-unit multi-family property located at 501 East Willetta in Phoenix, Ariz., from EQ Downtown, LLC of Tempe, Ariz. Brian Smuckler and Jeff Seaman of CBRE’s Phoenix office represented both parties in negotiating the $3 million transaction.

Continental Apartments
M & S Continental, LLC of Phoenix, Ariz. has purchased the Continental Apartments, a 48-unit multi-family property located at 1030 N. 3rd St. in Phoenix, from EQ Downtown, LLC of Tempe, Ariz. Brian Smuckler and Jeff Seaman of CBRE’s Phoenix office represented both parties in negotiating the $2.3 million transaction.

derito

De Rito Partners redeveloping retail center in Mesa

De Rito Opportunity Investors, LLC, a company formed by De Rito Partners in Phoenix (Marty De Rito, Iver Bowden, Doug Himmelberger, Principals) has purchased the retail plaza and adjacent drive-thru in Mesa, Arizona, located at the southeast corner of Southern Avenue & Stapley Drive for $2,250,000. The 84,890 square-foot center, was owned by Brixmor GA Apollo II Sub, LLC. The sale was negotiated by Glenn Smigiel of CBRE. The adjacent 2,436 square foot drive-thru was owned by Smothers Family Investments II, LTD.

De Rito Partners has spent over $1,000,000 on updating the center with Spanish-inspired facades, parking lot resurfacing and various capital improvements. De Rito Partners agents, Bill Bones and Lizette Borbon-Iskhakova are working on re-leasing the plaza named La Gran Plaza. An anchor box at 52,220 square foot is available in addition to smaller spaces ranging from 1,200 to 6,500 square feet, including two freestanding buildings (one with a drive-thru).

“We are excited to be working on this premier Hispanic-focused retail destination. We have developed 22 retail properties including a major renovation of The Pavilions at Talking Stick. We secure dominant retail tenants for our projects and are happy to be a significant part of the growing Hispanic redevelopment opportunities in Arizona. ” said Marty De Rito, CEO of De Rito Partners.

Crestone 2, CBRE, WEB

Shadow Mountain apartments sell for $27.2M

CBRE’s Capital Markets group announced today that it has secured financing on behalf of Real Estate Capital Partners (“RECP”) for the financing of Crestone at Shadow Mountain Apartments (“Crestone”). Brian Eisendrath with CBRE’s Debt and Structured Finance team arranged a 5-year, full term interest only fixed rate loan of $16,811,000 (60% LTC), which was locked in at an interest rate of 3.30% through Freddie Mac. The 248-unit asset was acquired for $27.2> ($109,677/unit) from Scottsdale-based P.B. Bell, who will remain in-place as the property’s management company, and was represented by Tyler Anderson and Sean Cunningham with CBRE in Phoenix.

RECP’s Current Income Fund (the “Fund”) provided the equity for Crestone, which will provide investors a strong current rate of return in a high quality, well located project. RECP is a U.S. real estate investment advisor, founded in 1989, whose goal is to create superior risk adjusted returns by investing in U.S. real estate. Investments have consisted of existing and to-be-built apartment, office, industrial, retail and mixed-use properties.

With the low cost of capital and the full term interest only loan, this execution will allow RECP to execute its business plan,” said Mr. Eisendrath.

Brian and his team were able to secure attractive financing at a 3.30% rate with full term interest only. The execution supports our business plan to maximize cash on cash returns,” said Stephen Henry, Vice President – Investment Management of REC.

Crestone at Shadow Mountain is a well-established community situated in the heart of North Phoenix. This community was built in 1992 and features 248 units, averaging 876 square feet, in 19 two-story buildings. The Property offers proximity to the SR 51 connecting residents to the Loop 101 through North Scottsdale as well as to all the amenities in Downtown Phoenix. Select units offer nine-foot ceilings, full size washers and dryers, and wood burning fireplaces.

PV303 SubZeroLARGE

SubZero expands facility at PV303

CBRE has completed the sale of an 11.5-acre land parcel at PV303, the master-planned business park which sits at the confluence of Interstate 10 and Loop 303 in Goodyear, Ariz. The land parcel commanded a sale price of $2 million.

Pat Feeney, Dan Calihan and Rusty Kennedy with CBRE’s Phoenix office negotiated the transaction on behalf of development owner, Sunbelt Holdings. The land was purchased by SubZero, who was represented by John Pompay with Cassidy Turley’s Phoenix office.

SubZero currently operates a 438,501-square-foot manufacturing and distribution facility within PV303 at 4235 N. Cotton Lane in Goodyear. The industry leader in premier cooking and preservation appliances has purchased the additional 11.5 acres to facilitate an expansion of their current facilities, which SubZero purchased in 2010.

“This sale is a testament to the continued recovery of the industrial market in Phoenix,” said CBRE’s Feeney. “The Phoenix metro has become recognized as a mature industrial market and a large number of users are actively looking across the Valley. SubZero, who’s already been in the market for the past four years, recognizes the benefits offered in metro-Phoenix and PV303 in particular.”

Acquired through a Sunbelt Holdings venture in 2010, PV303 is a master-planned business park designed to meet the growing demand for commercial and industrial opportunities in metro-Phoenix. At build-out the park will offer ±1,600-acres with 20 million square feet of office, retail and industrial space. Ideally situated to serve Arizona as well as key markets in the western U.S. like the Ports of Long Beach; Los Angeles and San Diego, Calif.; El Paso, Texas; and Las Vegas, Nev., PV303 benefits from approved Foreign Trade Zone status on portions of the property. This FTZ status provides special customs procedures to U.S. plants engaged in international trade-related activities, making it an attractive opportunity for major companies looking to locate in the metro-Phoenix area.

In addition to the SubZero manufacturing and distribution facility, PV303 is currently home to Dicks Sporting Goods’ western United States Distribution Center.

PV303 1500 ACRE BUS PARK-Pg04

Coldwater Plaza_Avondale

CBRE completes sale of Coldwater Plaza

CBRE has completed the sale of Coldwater Plaza located at 1461 North Dysart Rd. in Avondale, Ariz. The ±10,017-square-foot shopping center commanded a sale price of $2,085,000.

Joseph Compagno, Steve Julius and Jesse Goldsmith with CBRE’s Phoenix office represented the seller, a partnership between Denver, Colo.-based North Dysart SG, LLC and Scottsdale-based Coldwater Dysart Partners, LLC, in the transaction. The buyer was Sparty Holdings of Great Falls, Va. and was represented by Ken Gatt with Evergreen.

“The seller was very impressed with the amount of buyer activity we had during the marketing process,” said CBRE’s Compagno. “We executed and sold the property at 98 percent of list price.”

Coldwater Plaza is a high-quality, freestanding, shopping center located on Dysart Road less than a quarter mile south of the I-10 Freeway in Avondale. 100 percent leased at time of sale, tenants include Pacific Seafood Buffet, Cricket Wireless, Hire Source Staffing, and Checkmate Loans. The building, constructed in 2003, has excellent visibility from Dysart Road and is located at the main entrance of a Sam’s Club-anchored shopping center. The property also benefits from a strong retail corridor with neighboring tenants such as Home Depot, Walgreens, McDonald’s, Ashley Furniture, QuickTrip as well as numerous restaurant options.

RYAN-AIRFIELD-MAP

CBRE to market land for Tucson Airport Authority

CBRE has been awarded the marketing and leasing assignment for the Tucson Airport Authority (TAA) airport system. Comprised of Tucson International Airport and Ryan Airfield, CBRE will oversee the marketing of the airport system’s ±10,147 acres of commercial development land.

“This is an exciting opportunity and we look forward to working with the Tucson Airport Authority to market its landholdings,” said Ike Isaacson, managing director of CBRE’s Tucson office. “The Airport Authority offers unique opportunities at Tucson International Airport and Ryan Airfield, each with large tracts of commercially developable land and the opportunity for direct runway access. Our goal is to continue to market the property as a premier economic-generator for the region.”

“The Airport Authority’s mission is to promote aviation and foster economic development in our region,” said TAA President and CEO Bonnie Allin. “We are continually looking for ways in which we can strategically plan, develop and operate the most efficient airport system possible while also growing Tucson’s economic footprint. By partnering with CBRE, we now have the benefit of real estate services and expertise that will drive those efforts and pursue opportunities.”

A collaborative team of brokerage professionals with CBRE’s Tucson office, including Bill Di Vito, Tim Healy, Robert DeLaney, Jesse Blum and Ian Stuart will handle the marketing and leasing of the property for TAA. .

As CBRE and TAA work together to attract new users to the area, the marketing team will look to capitalize on advantages like the region’s weather, unobstructed airspace, direct airfield access and TAA’s excellent inter-modal potential. The Tucson region already benefits from the presence of major aviation companies like Raytheon, Bombardier and Ascent, making a strong case for future users recognizing all the region has to offer and establishing operations in greater-Tucson.

 

In addition to regional and property advantages, TAA benefits from CBRE’s global airport experience. CBRE has a proven track record of working with airports and airport systems to cultivate successful development projects, and currently has eight active assignments domestically and several others in foreign markets. By leveraging the company’s various service lines, including the Aerospace & Defense Contractor Group, Labor Analytics Group, Economic Incentives Group, Global Corporate Services and more, potential users will benefit from a service that is specifically tailored to ensure they meet their real estate objectives.

“Ultimately, our goals center around building a sustainable business ecosystem,” said Isaacson. “By leveraging the company’s many service lines and extensive client network, we’ll be able to ensure that the users looking to locate in our market and the existing business community are equally well-served, guaranteeing long-term economic success for the region.”

Tucson International Airport is a full commercial service airport serving the Tucson metropolitan area, southern Arizona, and northern Sonora, Mexico, while Ryan Airfield serves as a general aviation reliever airport. Ryan Airfield is also a popular recreation field for transient pilots. Tucson International TIA encompasses ±8,343 acres and is located eight miles south of Tucson’s central business district. There are 130 separate buildings on the airport complex that provide nearly 2.5 million square feet of space. Ryan Airfield, located 12 miles southwest of downtown Tucson, covers ±1,804 acres and accommodates a wide variety of general aviation activity.

TAA has a long term agreement with the City of Tucson to operate and manage both airfields. TAA does not receive any local tax dollars and operations are funded through airport generated revenues from parking, space rentals, land leases, airline fees, and concessions. Capital improvements such as runway and terminal construction are funded primarily through state and federal grants, as well as airport user fees.

CBRE’s Jamie Swirtz named to “Young Leaders to Watch”

Jamie Swirtz head shotCBRE broker Jamie Swirtz has been named to CoreNet Global’s inaugural “36 Under 36: Young Leaders to Watch” list.

CoreNet Global chapters from around the world nominated their top Young Leaders for the first-ever list of “Who’s Who” in corporate real estate and the honorees were recently announced and featured in the LEADER magazine’s May/June issue. Distinguishing themselves as vibrant, adaptable, technologically savvy, innovative and philanthropic, CoreNet’s “36 Under 36” represent the bright future of corporate and commercial real estate.

Swirtz began his career with CBRE in 2009. In 2011 he joined the Arizona market’s top corporate services team working under Executive Vice President Tom Adelson. That year the team negotiated 78 transactions worth $343 million and comprising ±2.6 million square feet and represented 30 different tenants in 35 leases. In 2014, Swirtz began focusing his work in the Southeast Valley (Tempe, Chandler, Gilbert and Mesa) office market where he represents landlords and tenants.

Outside of CBRE Jamie is actively involved in the community. In addition to CoreNet Global’s Arizona Chapter, he participates in the Make-A-Wish Foundation and Phoenix Suns Charities.

“I’m very proud of Jamie; he is very deserving of this honor. Since starting with CBRE he has quickly made an impact on the local commercial real estate community,” said Craig Henig, senior managing director and Arizona market leader for CBRE. “CBRE prides itself on being at the forefront of the industry and professionals like Jamie, who embody our standards of excellence, ensure we will continue to maintain our position as an industry leader.”

AirportGatewayFTZ_Main-2

Infrastructure development underway at Goodyear Gateway South

EJM Development Co. has broken ground on $5 million worth of infrastructure development at Goodyear Gateway South in Goodyear, Arizona. Goodyear Gateway South is a ±221 acre industrial zoned park located just north of the Phoenix Goodyear Airport that has recently been subdivided with lots ranging in size from 9.6 acres to 50 acres. Construction on streets and utilities is underway, which will lay the framework for the master-planned industrial park to attract major users to the area. The street improvements will be complete in the 4th quarter of 2014 and include full width 143rd Avenue from Van Buren Street to Yuma Road and improvements to Yuma Road as well as a traffic signal at 143rd and Van Buren.

“The West Valley has emerged as the next epicenter of major commercial development in metropolitan Phoenix,” said Fred Stiles, Regional Director with EJM Development Co. “As major employers look to locate and expand in the Valley, it’s important that we are able to offer high quality industrial zoned shovel-ready sites. The development of infrastructure, streets and utilities at Goodyear Gateway South is major step towards being ready for incoming users.”

In addition to offering shovel-ready sites, Stiles points to the park’s designation as a foreign trade zone as another boon to future users.

“The U.S. Foreign Trade Zones program expedites and encourages foreign commerce making Goodyear Gateway South an attractive location for any industrial, manufacturing, distribution or warehouse user doing business internationally,” said Stiles. “And in the state of Arizona there is an additional tax benefit for properties in foreign trade zones that allows for significant reductions in both real and personal property taxes.”

The master-planned industrial park also benefits from proximity to the Phoenix Goodyear Airport and Interstate-10 and its location within one of the Southwest’s fastest growing markets, which offers unparalleled accessibility to both metro Phoenix and other major markets in the Western United States.

“Goodyear Gateway South is ideally situated on a number of fronts,” said Pat Feeney, senior vice president with CBRE’s Phoenix office, who heads up the marketing and leasing team for the property. “Users that transport goods intra- and inter-state will be well positioned to conduct business efficiently. What’s more, a talented, deep and productive workforce lives in the immediate area, while freeways put Goodyear within an hour of all 3.8 million workers in greater Phoenix.”

The ±221-acre, foreign trade zone-approved Goodyear Gateway South is part of the larger ±350 Airport Gateway at Goodyear master-planned community. At build out Airport Gateway will feature approximately 3 million square feet of planned industrial/work space at Goodyear Gateway South and an additional 2.5 million square feet of upscale regional retail, hotel, office and medical office uses at Goodyear Gateway North.

Rio West Business Park

American Airlines Group renews Tempe lease

CBRE has negotiated a 201,724-square-foot lease at Rio West Business Park, a class A office complex located at 1821, 1921 and 2021 W. Rio Salado Parkway in Tempe, Ariz.

Fort Worth, Texas-based American Airlines Group, the holding company for American Airlines and US Airways, is the anchor tenant of the business park, where the company houses accounting, customer service and IT jobs. American also has staff facilities at 111 W. Rio Salado Parkway and reservations and customer service functions at other locations in Tempe, in addition to its airport flight, training and maintenance operations at Phoenix Sky Harbor International Airport. The company employs more than 10,000 people in Arizona.

American’s new lease agreements for the Rio West space run through April 2019 for Buildings B and E and September 2017 for Building A. Financial terms were not disclosed.

Tom Adelson in CBRE’s Phoenix office represented the tenant in the lease agreement. The landlord, Leavitt-Wolff Tempe Holdings LLC of Seattle, was represented by Warren Johnston, also of CBRE’s Phoenix office.

CBRE multi-housing investment group negotiates $3.6M in sales

Oak CreekCBRE has negotiated the following multi-family sales transaction:

801 Turney LP of Tempe, Ariz. has purchased the Oak Creek apartment complex, a 60-unit multi-family property located at 801 W. Turney Ave. in Phoenix, from the Gary B. Outzen Trust and Jacqueline Schneider Trust. Brian Smuckler and Jeff Seaman of CBRE’s Phoenix office represented both parties in negotiating the $2.7 million transaction.

ParkwayMike Davis of Oxnard Calif. has purchased the Parkway apartment complex, a 16-unit multi-family property located at 6516 N. 17th Ave. in Phoenix, from Abbotsford, British Columbia, Canada-based Parkway Westco Apartments, L.P. Brian Smuckler and Jeff Seaman of CBRE’s Phoenix office represented the buyer and seller in negotiating the $960,000 transaction.

Dick's Sporting Goods distribution warehouse, Goodyear

Industrial Evolution: West Valley poised for land grab

Dick’s Sporting Goods built a 720KSF distribution center in Goodyear to service its West Coast stores.

A California-based investor erected a 400KSF spec shell in Surprise’s Southwest Railplex business park.

Corporate giants, Macy’s, Amazon, Sub-Zero, Marshall’s/TJ Maxx, Southwest Products and WinCo have landed or expanded their vast West Valley industrial operations within the last two years.

Even more companies are eyeing potential stakes in the burgeoning industrial parks springing up in once sleepy bedroom communities west of Phoenix.

With the recession in their rear-view mirrors, local, national and international companies are revving up manufacturing and distribution operations, and the West Valley is poised to be a big beneficiary of their expansion plans.

Justin LeMaster, Cushman & Wakefield

Justin LeMaster, Cushman & Wakefield

Available and affordable land, a deep labor pool, business-friendly state and local governments and top-notch transportation corridors contribute to the West Valley’s desirability, said Justin LeMaster, Cushman & Wakefield’s director for industrial properties.

Farsighted developers are already master-planning vast spreads of land, setting up infrastructure and even building large-scale spec structures that can accommodate another industrial giant or get sliced and diced to accommodate several smaller operations.

The developers — along with city and state economic development specialists — want their properties primed to snag the business when the lookers become movers, LeMaster said.

“Smart, creative developers will make the West Valley a successful high-growth market for years to come,” he said.

The numbers confirm the trend.

An impressive 4.5 MSF — nearly 94 percent of the metro area industrial construction started or completed in 2013 — is in the West Valley, according to Jones Lang LaSalle’s Q4 Industrial Report.

Q4 absorption was 1.96 MSF, and only 15.3 MSF of the West Valley’s 90.7 MSF total industrial inventory was still available at year’s end.

Nevertheless, 4.5 MSF is a significant amount of new inventory for a post-recession market, and, in fact, it boosted Valleywide industrial vacancy rates above 12 percent.

Anthony Lydon, Jones Lang LaSalle

Anthony Lydon, Jones Lang LaSalle

Industry experts aren’t worried.

“The new, grown-up, industrial tenants coming to market right now are looking for 300KSF, 400KSF and above,” said Anthony Lydon, Jones Lang LaSalle managing director for Supply Chain & Logistics Solutions.

Less than half of the West Valley’s available space meets that criteria, and a few big employers could snatch that up in a flash, he said.

Like LeMaster, Lydon expects that to happen sooner rather than later.

“Over the next 24 to 36 months, the Valley, and the West Valley in particular, will see significant new job creation,” he said.

So what makes the West Valley suddenly so attractive to the industrial users?

“Economics and location,” said Pat Feeney, CBRE senior vice president for industrial services.

Cost is key
Of the metro area’s three major industrial hubs ­— the airport area, the Tempe/Chandler corridor and the West Valley — the first two are nearly out of developable land, Feeney said. And scarcity makes that land pricey, especially for a large user.

Pat Feeney, CBRE

Pat Feeney, CBRE

A skilled and diverse labor force that moved west when the home builders did is another major factor, he said.

“Nearly 70,000 people live in Goodyear, but only 14,000 or 15,000 work in Goodyear,” Feeney said.

When big employers like Sub-Zero, Amazon and Macy’s held job fairs for their new West Valley digs, they typically attracted eight to 10 qualified applicants for every position, he said.

“They all shared that they were so happy they could pick the cream of the crop,” Feeney said. “It’s a really big draw.”

David Krumwiede, Lincoln Property Company

David Krumwiede, Lincoln Property Company

Staffing a large warehouse is a major economic concern, especially for companies with labor-intensive, e-commerce picking systems, said David Krumwiede, executive vice president for Lincoln Property Company, which owns 6 MSF in its four-state Desert West Region, 2.4 MSF of that in the West Valley, including Goodyear AirPark and 10 Lincoln.

Arizona’s main competition for the big industrial users looking to establish or expand operations in the West is California’s Inland Empire, Krumwiede said.

While the Inland Empire’s construction costs are comparable to Arizona’s, labor costs in Arizona, a right-to-work state, are much lower, he said.

“We are extremely competitive with California’s Inland Empire if a user has more people than trucks,” Krumwiede said.

And big energy consumers, such as companies employing sophisticated e-commerce logistics technology, can save as much as 30 percent to 40 percent in operating costs by locating in Arizona instead of California, Lydon said.

But possibly the biggest economic incentive for many industrial users is Arizona’s much more favorable tax basis, Krumwiede said.

All of the West Valley’s large planned business hubs have designated areas that are Foreign Trade Zone capable, and that’s a big selling point for companies that do significant international business in parts or products, Krumwiede said.

“If a company qualifies, it can see a 72 percent reduction in property taxes,” Feeney said. “It’s a tremendous benefit.”

And a benefit none of the nearby states can offer, he said.

Such issues make Arizona, especially the West Valley, where land is available and affordable, a clear economic winner over California.

Location, location, location
Second only to the West Valley’s attractive economics, is its advantageous location, less than half-a-day’s drive from the southern California ports — a major consideration for retailers and e-commerce leaders like Amazon, as well as manufacturers like Sub-Zero, according to the experts.

Rob Martensen, Colliers International

Rob Martensen, Colliers International

“If you can get out of traffic and get closer to the ports in Los Angeles and Long Beach, you can make that in six hours,” said Rob Martensen, Colliers International vice president.

That means truck drivers can log a round trip and still stay within federal guidelines regarding length of time on the road, a feat not so easy to accomplish from the East Valley.

And for companies distributing products regionally — Macy’s or Dick’s Sporting Goods, for example — the completion of the Loop 303 will forge the final freeway link that can speed trucks to and around cities and states north and west of Phoenix.

“It will open the gateway,” LeMaster said. “Companies want to be in Phoenix, and the West Valley will be the industrial hub of Phoenix with the (Loop 303/I-10) interchange.”

Overall, the combo of favorable attributes will ensure the West Valley lands on the short list for large and small industrial users for the next decade or so, Krumwiede said.

“The companies that are already out there — Amazon, Target, Costco, PetSmart, Staples, Macy’s — are all household names. It’s a great start. We’ll see more of those,” he said.

“My vision is that a lot of that vacant land will be put into production in the next five to 10 years.”

USA Place includes a 390-room Omni International hotel, 65KSF events center and exhibit hall, 545 Class-A apartments, 180KSF of street level retail, 240KSF of office space and underground parking. Rendering courtesy of Concord Eastridge.

Valley sports venues a slam dunk for developers

The Valley is already home to the largest concentration of Major League Baseball fields, used during the Cactus League Spring Training, but even more sporting venues are breaking ground and with them a variety of mixed-use retail, hospitality and multi-family developments. USA Place, Avenue Shoppes at P83 and Riverview Park are such milestone investments in the Valley. Between the three projects, more than three-quarters of a billion dollars is coming out of the ground next to major sports venues. There’s something to be said about the generating return of investment when a few months of star-quality use also needs to spur another eight to 10 months of revenue.

The key behind the three projects is that developers are focused on what happens when USA Basketball and Major League Baseball Spring Training games are not filling the stadiums. It’s the “off-season” activities that return the investment and ensure successful revenue streams. These are “they’re coming; now we can build it” developments. However, each has its own business plan for success.

A City Built Around a Campus

Susan Eastridge, Concord Eastridge

Susan Eastridge, Concord Eastridge

When USA Place, the largest of the trio, broke ground in February, it became the second-largest Phoenix Metro project under construction. Its $450M price tag is second only to the nearby $600M Marina Heights project. Designed by Future Cities, one of the development partners, and Architekton, the single-phase project is being built by Turner Construction. CBRE is handling the office and residential leasing; Cushman & Wakefield is leasing the retail.

The joint venture that is USA Place LLC is run by Scottsdale-based Concord Eastridge. CEO Susan Eastridge says the project is the ultimate urban mixed-use development. Located on the future Tempe trolley line, USA Place is the new home to USA Basketball and Arizona Interscholastic Athletics. When it comes to filling the venue, AIA and landlord Arizona State University are the ones who will keep the 65KSF events center filled 10 months of the year. Eastridge says there are already 200 events a year locked into the facility.

Alisa Cutright-Thompson, Concord Eastridge

Alisa Cutright-Thompson, Concord Eastridge

“This is a community where people can literally live, work and shop,” explains project manager Alisa Cutright-Thompson. “We have retail shops, apartments for professionals, the events center, meeting space and a hotel in a single urban complex.”

“We’re building something that ASU and Tempe have wanted — a class-A hotel and mixed-use community,” says Eastridge.

“The AIA will fill the center with more than 200 events per year. Conferences and meetings from the hotel will fill the rest. The residents will connect with the shops.”

The high-rise, full-service hotel- and tallest building in Peoria- will have 140 rooms and likely carry a Hilton brand. The restaurant-retail complex will include more than 245KSF in space. The city is paying $30M for the twin parking garages that PSP LLC will build. Avenue Shoppes at P83. Image courtesy of Peoria Sports Park, LLC.

The high-rise, full-service hotel- and tallest building in Peoria- will have 140 rooms and likely carry a Hilton brand. The restaurant-retail complex will include more than 245KSF in space. The city is paying $30M for the twin parking garages that PSP LLC will build. Avenue Shoppes at P83. Image courtesy of Peoria Sports Park, LLC.

A Venue for Westsiders
One of the largest projects in the West Valley will be the $150M mixed-use retail and hospitality development called the Avenue Shoppes at P83. Anchoring the main gate of the Peoria Sports Complex, the project brings life to the P83 entertainment district the city is trying to create.

“This is going to be a destination,” says Peoria Sports Park LLC managing member Michael Oliver. The Peoria-based developer says his personal experience is what led to the vision for the facility. “There are no entertainment and shopping destinations in Peoria. We’re going to anchor this with a complex that is in a category falling between Scottsdale Fashion Square and Kierland Commons. It will be a place to go and stay, not just shop and run.”

The development includes city-funded parking garages and a 140-room, high-rise hotel. Not including the rooftop bar, there are 245K SF for restaurants and shopping. PSP is looking at a major flag for the hotel, which will be set on top of the retail complex on city-owned land.

The Avenue Shoppes will start construction in the next year and is estimated to costing $150M. Michael Baker Jr. Inc. is handling design duties; a contractor has not been selected. CBRE is consulting on leasing.

The Cubs Park stadium has touches of Wrigley Field. The bricks behind home plate and the scoreboard are replicas of the same facilities at the Chicago ballpark. The Sheraton Hotel and Wrigleyville will be east of Cubs Park. Photo by Eric Jay Toll.

The Cubs Park stadium has touches of Wrigley Field. The bricks behind home plate and the scoreboard are replicas of the same facilities at the Chicago ballpark. The Sheraton Hotel and Wrigleyville will be east of Cubs Park. Photo by Eric Jay Toll.

Mesa ‘Ville Plans Year-Round Action
“This is new money in the market, and it’s a destination with both regional and local opportunities,” says Mesa Mayor Scott Smith about the showcase Cubs Park and hometown Riverview Park complex nestled against the Loop 101 and 202 freeways in northwest Mesa. “It’s the anchor for a lot of activity,” he adds. “Wrigleyville’s hotel and shops provide an opportunity for conferences and sports events.”

The city invested more than $90M into Cubs Park and another $30M into the recreation and sports facilities at Riverview Park. Structures, Inc., and Powers Hotel Corp. will build a full-service Sheraton Hotel next to Cubs Park, along with 20K SF of retail space in the first phase.

Construction starts this summer and developer Bob Yost expects it to be completed in time for the Super Bowl. Structures Inc., with Yost as CEO, is handling the design-build. It’s estimated that the hotel-retail project will cost more than $60M, but no one from Structures would confirm the price tag.

Chauncey Professional Center, 6930 E. Chauncey Lane, Phoenix.

CBRE negotiates $11.1M sale of 2 office buildings

ViaWest Group has sold two premier class A office buildings in the Phoenix metro area for a total consideration of $11.1 million. CBRE negotiated the sale to Melcor Development of the ±24,154-square-foot Perimeter Parkview Corporate Center at 8355 E. Hartford Drive Scottsdale, Ariz. and the ±35,066-square-foot Chauncey Professional Center located at 6930 E. Chauncey Lane, in Phoenix, for a combined ±59,220-square-foot investment. The buildings commanded sale prices of approximately $4.1 million and $7 million, respectively.

Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, ViaWest Group of Phoenix. The buyer, Edmonton, Alberta, Canada-based Melcor Developments Arizona, Inc., was represented by Tom Swan with Amcal Southwest.

ViaWest originally purchased the properties in two separate transactions. The Chauncey property was purchased in December 2006 in shell condition and ViaWest was able to lease up the property from zero percent in late 2007 to 100 percent by mid-2009 during a very difficult leasing period. This was done through building spec suites of varying sizes, creative marketing approaches and unique lease structures. The Perimeter Parkway property was bought at a trustee sale in January 2011 with a portion of the property leased and the balance in shell condition. Within one year of purchase the property was 100 percent leased.

Both Chauncey Professional Center and Perimeter Parkview are presently 90 percent leased, with one suite in each property becoming available within the last month. Those suites total 3,708 square feet and 2,486 square feet, respectively.

“These two assets are excellent properties that are of great quality and extremely well-located. Melcor should have much success with them. As a local value-add operator, we will continue to redeploy capital into our strategies that generate opportunistic-type returns,” stated Steven Schwarz of ViaWest Group.

“The North Scottsdale/Airpark area has consistently outperformed the overall Phoenix market in net absorption of office space and is one of the top job-creating economies in the U.S.,” said CBRE’s Gabel. “In addition, these properties are both surrounded by first-class amenities, high-end executive housing and the Loop 101 Freeway making them very attractive to both current and prospective tenants, and solid investments for the buyer.”

The sale marks Melcor Developments Arizona, Inc.’s entrance into the Arizona market and ViaWest has been retained to continue management of both properties keeping its management portfolio in excess of 1.5 million square feet.

Built in 2007, Perimeter Parkview Corporate Center is a two-story, class A, multi-tenant office building situated in the Scottsdale Airpark submarket. The property has a high-quality tenant roll including Arizona State University’s WP Carey Graduate MBA Program, Interior Motives, Titus Brueckner & Levine PLC, BIC Distributors and Pro Sports Management. The property is located at the base of the McDowell Mountains, in the ±260-acre Perimeter Center Business Park. The business park is adjacent to the TPC Stadium as well as numerous residential and golf communities, resort hotels and an abundance of exciting dining and retail options.

Chauncey Professional Center, which was built in 2006, is located in the North Scottsdale Corporate Center master-planned commercial development. Tenants include Aspen Systems, Troche Fertility Clinic, Marcum Media, AZ Tech Finders, Nobis Technology Group, Landmark Management Group, MiCamp Solutions, Bottle & McInerney, Cadron Financial and Pogson Asset Management. Chauncey Professional Center is surrounded by first-class amenities, including the ±580,000-square-foot Scottsdale 101 retail power center, the ±200,000-square-foot Whole Foods anchored Shops at Chauncey Ranch, the ±465,000-square-foot Chauncey Ranch Autoplex, and a ±110,000-square-foot Lifetime Fitness. The property also benefits from proximity to high-end executive housing and the Loop 101 Freeway.

Perimeter Parkview Corporate Center, 8355 E. Hartford Drive, Scottsdale, Ariz.

Perimeter Parkview Corporate Center, 8355 E. Hartford Drive, Scottsdale, Ariz.