Tag Archives: colliers international

5555 W. Lower Buckeye Rd.

Prologis sells Phoenix warehouse for $24.25M

Colliers International in Greater Phoenix recently completed the sale of a 486,241-square-foot warehouse in Phoenix for $24.25 million, or $49.87 per square foot.

Exeter Property Group, headquartered in suburban Philadelphia, bought the property, at 5555 W. Lower Buckeye Rd., from Prologis Inc., a San Francisco-based REIT.

Executive Vice Presidents Don MacWilliam and Payson MacWilliam with Colliers International represented the buyer and seller.

Exeter Property Group and Prologis are real estate investment organizations for which one shared area of specialization is the acquisition, development, leasing and management of industrial properties.

Prologis built the cross-dock distribution warehouse in 2013. The building sits on a 27.73-acre lot in Park Riverside 2, part of a 150-acre industrial park setting in a designated Foreign Trade Zone magnet site.

The LEED-certified building has a 1,893-square-foot office, 118 dock-high doors, and four drive-in doors. The warehouse is in the favorable Riverside Tax District and has quick access to the I-10 and future Loop 202. Corporate neighbors include Amazon, Home Depot, Frito Lay, Federal Express, Kraft, DHL and Marshalls.

“This is the largest industrial building Prologis has constructed in Phoenix and the property is ideal for distribution-oriented tenants,” said Don MacWilliam, adding that Exeter will lease the warehouse and the MacWilliam brothers will retain the leasing assignment.

Exeter has acquired other properties in southwest Phoenix, including another warehouse from Prologis, at 2225 S. 43rd Ave., purchased in early 2014.

“This was an excellent opportunity for Exeter to establish a larger presence in the Phoenix market with a quality distribution facility,” said Don MacWilliam, noting, “The timing and price was also right for Prologis to complete the transaction with Exeter.

The Offices at Reems

California investor buys two Surprise office buildings

Colliers International in Greater Phoenix recently completed the sale of two office buildings in Surprise, for $2.15 million, or $182.17 a square foot, which are presently leased to One Step Beyond Inc., a nonprofit of Peoria.

Richards Family Trust of San Diego purchased the buildings, located at 15527 and 15331 North Reems Road, from Reems & Greenway LLC of Phoenix. The two free-standing units are among eight at The Offices at Reems, a Class B business park built in 2008.

Marcus Muirhead, associate vice president, and Tyler Smith, vice president, with Colliers International were the listing agents. The buyer was represented by Chuck Wasker and Evan McDonald, of Colliers’ San Diego office.

One Step Beyond took possession of the 11,802 square feet this summer, when the non-profit entered into a long-term, triple net lease. Based in Peoria, One Step Beyond provides comprehensive programming for people with developmental disabilities.

“This is a 1031 exchange investment purchase for the buyer who recently sold a property in San Diego,” said Muirhead. “The buyers wanted a passive investment which is provided through the lease terms,” he added.

Smith brokered the lease for One Step Beyond. He specializes in office properties, focusing on the West Valley submarket. Muirhead concentrates on investments properties with an eye to health care and offices.

Talavi, JLL, WEB

Phoenix Heart buys its office building

In a deal that points to rising corporate confidence, the Phoenix office of JLL has completed a $6.25 million class-A office building sale that brings Phoenix Heart – the anchor tenant at 5859 Talavi – from project tenant to project owner.

JLL Senior Vice President Brian Ackerman represented the property seller, Credit Union West, in the transaction. Marcus Muirhead of Colliers International represented Phoenix Heart.

Recognized as a leading Valley cardiology group, Phoenix Heart PLLC currently occupies 50 percent of the 35,904-square-foot building at 5859 W. Talavi Blvd., within the Talavi Business Park in Glendale, Arizona. The building’s remaining space is fully occupied by quality tenants including Credit Union West, John C. Lincoln and Wallick & Volk.

“This deal points to a new level of confidence and solid market recovery,” said Ackerman. “Five years ago, recession fundamentals and uncertainties would have blocked this type of sale, but today the outlook is optimistic. Tenants are more confident, and considering opportunities to buy their buildings and secure the benefits of a market upswing.”

The 5859 Talavi building is located near the southeast corner of Bell Road and 59th Avenue in Glendale, Ariz., with an immediate area that is inundated with retail amenities that attract tenants to work in Talavi Business Park. It is adjacent to the Talavi Town Center retail project and surrounded by neighbors such as the Thunderbird School of International Business, ASU West and Midwestern University.

175 E. Corporate Place

$730K Chandler sale to benefit foster kids

 Colliers International in Greater Phoenix recently completed the sale of an office building in Chandler for $730,000, or $81.29 a square foot, to a non-profit that supports foster children.

Aid to Adoption of Special Kids (AASK) of Phoenix purchased the building, located at 175 E. Corporate Place, from TMS Properties, LLC, of Phoenix.

Kathy Foster, senior vice president, and Lindsey Carlson, vice president, both of Colliers International, represented the buyer. Tim Tapia of the Upland Group was the seller’s broker.

Built in 2004, the 8,980-square-foot building provides AASK with its first East Valley location. The organization has existing offices in Phoenix and Peoria. AASK promotes positive and stable relationships for Arizona’s foster children by recruiting, training and supporting foster families, adoptive families and adult mentors.

After completing the transaction and wanting to further support the organization’s mission, Foster and Carlson created “Team AASK” to raise donations. Foster also serves on the organization’s Board of Directors.

Through Team AASK, metro Phoenix businesses donated more than $50,000 in time, services and materials to build out the space, providing items such as donated furniture and discounted flooring. Foster and Carlson also donated a portion of their sales commission.

“We found companies eager to support efforts to aid an unprecedented number of children in Arizona foster care. The donations enable AASK to continue non-state funded activities such as the Mentoring Program, Sibling Camp and Todos Los Ninos. We couldn’t have done it without Team AASK,” Foster said.

Team AASK members include Colliers International in Greater Phoenix, Grand Canyon Title Agency Inc., ReSource Flooring, Blood Systems, Interior Solutions, McCarthy Nordburg, Wespac Construction Inc., Gust Rosenfeld P.L.C., Engelman and Berger PC and Arizona Business Bank.

“We are grateful for the opportunity to advance AASK’s mission and help connect foster children with caring adults,” Carlson said.

Ron Adelson, CEO of AASK, said because of the team’s backing, hundreds of children will have the chance to succeed.

“Kathy Foster and Lindsey Carlson have gone out of their way to support AASK’s mission. After guiding us through the purchase of our East Valley location, they led the effort to raise funds, allowing us to continue essential programs that support foster children and recruit additional families.”

Foster and Carlson are part of the top-producing Office Properties Solutions Group with Colliers International.

Midtown on Main, Courtesy Colliers International

Midtown on Main Apartments sell for $34.95M

Colliers International in Greater Phoenix recently completed the sale of the 472-unit Midtown on Main Apartments, a transit-oriented, class-B complex in Mesa for $34.95 million, or $74,047 per unit.

Houston-based Domain Acquisitions LLC in partnership with BH Equities LLC of Des Moines (DFA/BH Midtown LLC of Houston, Texas) purchased the complex, located at 2121 West Main Street, from Bay Club Partners LLC of Beaverton, Oregon.

The transaction was brokered by the Colliers Cooke Team, led by Cindy Cooke, senior executive vice president, and Brad Cooke, vice president.

Built in 1985, Midtown on Main is a garden-style community with 42 three-story buildings on 18.5 acres. Within 391,178 square feet of total living space, the unit mix is 186 one bed/one bath units (730 sf), and 286 two bed/two bath units (893 sf).

This gated community realized $4 million in capital improvements in 2006, and the new owner will renovate 100% of the unit interiors and significantly enhance and expand the site’s amenity package. The amenities include a 10,000-square-foot recreation facility with indoor basketball and racquetball courts, three swimming pools, sand volleyball court, covered children’s’ play area, covered parking, and beautifully landscaped grounds with gas barbecue facilities throughout.

“The purchase of Midtown on Main is a continuation of our commitment to re-establish a sizable, strategically located multifamily portfolio in Arizona,” said Jay O’Connor, executive vice president of Domain.

Midtown on Main is southeast of the Loop 101 and 202 interchange, and west of Dobson Road. The apartment community is located directly on the Metro Light Rail line that connects Mesa to Tempe, Sky Harbor International Airport, and Metro Phoenix.

“Midtown is an excellent value-add opportunity located in an infill urban area where Tempe and Mesa are starting to merge. One of the major components creating this merge is the recently expanded Metro Light Rail,” said Cindy Cooke.

Indian Wells, Courtesy of Colliers

Class-B Apache Junction apartments sell for $9.66M

Colliers International in Greater Phoenix recently completed the sale of Indian Wells, a 176-unit, class-B multifamily complex in Apache Junction, for $9.66 million, or $54,886 per unit, which is $54.88 per square foot.

Sonoma Valley LLC of Scottsdale purchased the property, at 975 South Royal Palm Road, from CSFB 2004-C5 Apache Apartments, LLC a subsidiary of LNR partners of Miami Beach.

Bill Hahn, Jeffrey Sherman, and Trevor Koskovich, senior vice presidents with Colliers International’s HSK Multifamily Southwest Team, represented both buyer and seller.

The complex was developed in 2001 under the Federal Low Income Housing Tax Credit Program. A foreclosure led to the removal of rent restrictions, elimination of compliance requirements for operating the property, and ultimately the late 2014 sale.

Situated on 9.9 acres at the base of the scenic Superstition Mountains, the apartments are equally divided into two- and three-bedroom units within 11 two-story buildings. All have side-by-side washer/dryers, walk-in closets, private patios/balconies, microwave ovens and dishwashers. A separate rental office is located on the property and boasts wide frontage along Royal Palm Road.

Common amenities include pool, spa, fitness center, basketball court, clubhouse, two playgrounds, outdoor barbeques, picnic area, and 182 covered parking spaces plus 173 uncovered spaces.
Indian Wells is positioned along Old West Highway, a major east-west thoroughfare running through Apache Junction and into Mesa and Tempe. It is two miles north of US Route 60, giving resident’s greater access to Metro Phoenix.

The community is surrounded by small commercial developments, and well as manufactured and single-family homes. A Walmart Supercenter-anchored neighborhood shopping center is located about two miles northwest, while the master-planned Gold Canyon Ranch is approximately three miles southeast. Indian Wells is within walking distance to Central Arizona College.

“This purchase enables the buyer to reposition this asset as the best market-rate apartment in Apache Junction,” said Koskovich.

Main Photo_Chandler CC

Colliers Int. sells Chandler Corporate Center

Colliers International in Greater Phoenix recently completed the sale of the Class A, 68,443-square-foot Chandler Corporate Center II, which was 100 percent occupied at the time of the sale.

Palisades Capital Realty Advisors of Los Angeles purchased the building, located at 500 North Juniper Drive in Chandler, from The Rockefeller Group.

Mindy Korth, executive vice president, Phil Breidenbach, executive vice president, and Kirk Kuller, vice president, of Colliers International, represented the seller.

Chandler Corporate Center earned a LEED (Leadership in Energy and Environmental Design) Silver Core and Shell Certification. The building was constructed in 2009 on 8.75 acres within Chandler Corporate Center North, a master-planned business park at the northwest corner of McClintock Drive and Chandler Boulevard. Three of the five tenants in the two-story office building are institutional-quality companies that account for 76 percent of the space.

Breidenbach, along with Paul Sieczkowski, executive vice president, and Rob Martensen, vice president, with Colliers International in Greater Phoenix, also represent The Rockefeller Group on the recently completed 82,000-square-foot Chandler Corporate Center III, which is available for immediate occupancy. Additional land is also targeted for the future Chandler Corporate Center IV.

“Palisades Capital Realty Advisors is the perfect buyer for this transaction,” Korth said, explaining, “This is the twin building to 585 North Juniper Drive, their first Phoenix-area purchase, which they acquired earlier this year. Both buildings were purchased as stabilized assets with outstanding tenant rosters.”

As a whole, Chandler Corporate Center North is a 75-acre business park that will contain 1.28 million square feet of building area at completion. It is surrounded by a vast number of daytime amenities and three freeways—Loop 202 to the south, I-10 to the west, and Loop 101 to the east—providing Valley-wide access. Chandler Fashion Center is a mile to the east.

In addition to the Chandler Corporate Center properties, Colliers also markets The Rockefeller Group’s other Phoenix area properties, which include Rockefeller Group Chandler 101, Rockefeller Group North Gateway, Rockefeller Group Chandler Crossroads and Rockefeller Group Gilbert Crossroads.

 

Cove on 44th

Cove on 44th sells for $8M

Colliers International in Greater Phoenix recently completed the sale of Cove on 44th, a 256-unit class-B apartment complex, for $7.78 million, or $30,390 per unit.

Cove Phoenix LLC of Phoenix purchased the property, located at 4030 N. 44th Avenue, from Cove at 44th LLC of Los Angeles.

Bill Hahn, Jeffrey Sherman and Trevor Koskovich, senior vice presidents with Colliers International’s HSK Multifamily Southwest team, represented both buyer and seller.

Built in 1983, the desert landscaped Cove on 44th consists of 134,400 square feet in 13 two-story buildings constructed on an irregular shaped site of 8.05 acres. This Maryvale submarket complex is close to public transportation and minutes away from Phoenix College, Grand Canyon University and Universal Technical Institute.

Units are divided evenly between studio and one-bedroom apartments with full-sized appliances, walk-in closets and private patio/balcony space. Common amenities include two swimming pools, a spa, tennis court, laundry facilities and outdoor barbeques. A separate clubhouse, which is undergoing renovation, and leasing office are located in the center of the property which is visible from 44th Street.

“This was a good opportunity for the buyer to acquire a clean building with solid cash flow and an upside through modest interior improvements,” said Koskovich, adding, “The property is positioned in a rebounding submarket that will benefit from the continued recovery in the local economy.”

Partsmaster photo, Colliers, WEB

AZ Partsmaster sells, buys two buildings in Phoniex Metro

Colliers International in Greater Phoenix recently completed two building sales with a combined total of $6.73 million for AZ Partsmaster, a supplier of home and property maintenance supplies.

AZ Partsmaster of Phoenix purchased a design build facility at 7125 W. Sherman St. in Phoenix for $4.9 million from Sun State Builders of Tempe. This transaction was brokered by Payson MacWilliam and Don MacWilliam, both executive vice presidents for Colliers International.

“With the economy rebounding, Partsmaster committed to the project and doubled the size of its operation,” said Payson MacWilliam.

The 73,536-square-foot build-to-suit, on 4.2 acres, is three miles west of Partsmaster’s previous location.

The MacWilliam brothers also assisted JJSM Real Estate Fund LLC of Scottsdale in purchasing the former Partsmaster property, located at 15 North 57th Drive in Phoenix, for $1.83 million from JD Partsmaster LLC of Phoenix.

The 34,567-square-foot industrial building is situated on 1.83 acres of land, south of Van Buren between 59th Avenue and 57th Drive. The buyer will use the property for manufacturing.

AZ Partsmaster is a full line maintenance supplier of HVAC, appliances and repair parts, electrical and lighting supplies, general maintenance supplies, and garden, plumbing and pool supplies. The company services industry professional and individuals.

Vestar to develop at Crossroads Towne Center

Colliers International in Greater Phoenix recently negotiated two separate long-term leases for a restaurant and dental office at a multi-tenant retail building soon to be under construction at Crossroads Towne Center in Gilbert.

Local shopping center owner, developer and manager, Vestar Development Company of Phoenix, is developing a 7,800-square-foot building at 3787 S. Gilbert Road. Delivery is anticipated by the fourth quarter of 2015.

Brian Woods, vice president, and Tom Woods, senior executive vice president, with Colliers International are Vestar’s exclusive listing agents for the shopping center.

Café Zupas LC of Sandy, Utah, leased 3,600 square feet from Vestar with representation by Western Retail Advisers of Phoenix. The restaurant specializes in soups, salads and sandwiches. This will be Gilbert’s first Café Zupas, which already has existing locations in Phoenix, Glendale and Mesa.

Gentle Dental of Vancouver, Washington, leased 3,200 square feet in Vestar’s multi-tenant building. The Woods Team represented both parties in this transaction. Gentle Dental, part of the InterDent Services Corp., has delivered comprehensive care in general, cosmetic and specialty dentistry for more than 30 years. InterDent provides management services to more than 165 affiliated dental offices employing approximately 475 dentists in the following eight states: Arizona, California, Hawaii, Kansas, Nevada, Oklahoma, Oregon and Washington.

“These two tenants will be outstanding additions to this vibrant center and we look forward to their openings next year,” said Brian Woods.

Economic Forecast

IREM, CCIM announce 9th annual CRE Economic Forecast

IREM and CCIM will present the 9th annual commercial real estate Economic Forecast at the Tempe Center of the Performing Arts on Thursday, Jan. 15, 2015. IREM and CCIM will begin the program by honoring Jerry Colangelo, who will be recognized as the Person of the Year by the organizations.

The panel discussion will be moderated by Peter Bolton of Newmark, Grubb, Knight, Frank. Each panel member will discuss their area of expertise as it relates to the current commercial real estate environment and then predict, based on the metrics of the commercial real estate business, achievements by year’s end.

The program will begin at 8 a.m. and continue until noon. The program will include;
Jerry Colangelo Program Honor

Multi-Family Panel
o    Cindy Cooke – Colliers International
o    Mark Schilling – MEB
o    Tom Lewis – Alliance

Office Panel
o    Jim Fijan – CBRE
o    Chris Toci – Cushman & Wakefield
o    Matt Mooney – Parkway Properties

Retail Panel
o    Judi Butterworth – Velocity Retail
o    Greg Laing – Phoenix Commercial Advisors
o    Pat McGinley – Vestar

Industrial Panel
o    Stein Koss – Lee & Associates
o    Tony Lydon – JLL
o    Mark Singerman – Rockefeller Group

The Tempe Center of the Arts is located at 700 W Rio Salado Parkway, Tempe, Ariz., and more information on the 2015 IREM/CCIM Economic forecast can be found here.

Autumn Ridge apartments

Autumn Ridge apartments sells to out-of-state investors

Colliers International in Greater Phoenix recently completed the sale of the 672-unit Autumn Ridge Apartments, a class-B complex in north Phoenix.

Houston-based Domain Acquisitions LLC in partnership with BH Equities LLC of Des Moines purchased the complex, located at 1944 W. Thunderbird Road, from Summit Autumn Ridge LLC of Los Angeles. Colliers Cooke Team, led by Cindy Cooke, senior executive vice president, and Brad Cooke, vice president, with Colliers International brokered the transaction.

Autumn Ridge Apartments is a 672-unit garden-style community with 73 buildings on 31.04 acres. An infill location with limited land available for new construction, it is adjacent to Cave Creek Golf Course and a large park with lighted walking paths. It is strategically located between the robust Deer Valley employment center and the established North I-17 employment corridor, the second largest employment area in Phoenix.

“The market is just starting the recovery in North Phoenix and we are excited to see the recent momentum in occupancy and rents. Autumn Ridge is a great asset to take advantage of in this market recovery,” said Cindy Cooke.

This purchase marks Domain Acquisitions’ re-entry into the Metro Phoenix market since the organization sold its portfolio here in 2006. “We have been patiently watching the Arizona market for many years, and the state’s economy continues to gain impressive momentum. We are excited to be back as investors in Arizona,” said Domain’s CEO, J.D. Golden.

“With Autumn Ridge, we recognized the solid location, the advantage and financial benefit of a ‘value-add’ approach, and the significant value to replacement cost—all underscored by the improving economic fundamentals in Arizona,” said Jay O’Connor, Domain’s Executive Vice President. Approximately $5 million will be spent in renovating and repositioning the property.

Laura Cathlina and Andy Hill of Berkadia Commercial Mortgage LLC originated $30.9 million in financing for the acquisition and renovation. BH Management Services will provide property management and construction services for the partnership.

The unit mix contained in one- and two-story casitas is 368 one bed/one bath at 680 square feet; 128 two beds/two baths at 816 square feet; 136 two beds/two baths at 910 square feet; 24 three beds/two baths at 1,194 square feet; and 16 three beds/two baths at 1,444 square feet.

“Autumn Ridge has excellent floor plans with washer-dryers in the majority of the units—it is well positioned for the buyer to update the interiors,” said Brad Cooke.

Terri's_Hopley, WEB

Terri’s Consign & Design office building sold for $2.8M

Colliers International in Greater Phoenix recently completed the sale of a 23KSF, class-A office building in Scottsdale for $2.87M, or $126 per square foot.

The buyer, Desert Palm Management Group of Phoenix, purchased the building, located at 15000 N. Hayden Road, from LC Coffey of Lincoln, Neb.

Colliers International Executive Vice President Greg Hopley represented both parties.

“This is an investment purchase for Desert Palm Management Group, which will have a long-term hold on the building,” said Hopley.

The freestanding building on Hayden Road was constructed in 1993 on 1.55 acres of commercial/industrial land. Terri’s Consign & Design is the anchor tenant now.

“This is great investment opportunity and an excellent location in the Scottsdale Airpark, positioned at the northwest corner of Hayden Road and Raintree Drive with easy access to the 101 outer loop freeway,” Hopley said.

Earlier this year, Hopley represented Desert Palm Management Group when it acquired a 93,500-square-foot, $6.39 million industrial building at the Chandler Corporate Center.

Lee Lee Oriental Supermarket

Retail center with Lee Lee Oriential Supermarket sells for $3.67M

Colliers International in Greater Phoenix recently completed the investment sale of a 60,080-square-foot retail space in Peoria for $3.67 million, or $61.12 per square foot.

JGNK Investments Arizona LLC, of Santa Ana, Calif., purchased the property at 7575 W. Cactus Road from 75 Cactus LLC, of Phoenix.

Marcus Muirhead, associate vice president, and Lauren Rodes, associate, both of Colliers International, represented the seller. Vicky Papoulias with Geovest Corporation of Santa Ana represented the buyer.

“The seller presented a good investment opportunity, having negotiated a new 20-year lease with the occupant, Lee Lee Oriental Supermarket, about a year ago,” said Rodes.

The class-B building was constructed in 2002 and is situated on 5.39 acres at the southwest corner of Cactus and North 75th Street.

“This sale brought multiple offers from several qualified and interested parties,” said Muirhead. “The buyer was selected because of a cash offer and opportunity for a quick closing,” he added.

48 Piedmont, CoStar

Wilson Engineers signs long-term lease in Phoenix

Colliers International in Greater Phoenix recently completed a 14,629 SF long-term lease in a class-B office building in southeast Phoenix for Wilson Engineers.

Wilson Engineers, LLC of Phoenix leased space at 9633 S. 48th St. from 48 Piedmont Place, LLC of Phoenix.

Kathy Foster, senior vice president, and Lindsey Carlson, vice president, both of Colliers International, represented the tenant.

“Wilson Engineers has been a long-term tenant with 48 Piedmont. The property has supported their growth and will continue to serve as their headquarters,” said Foster.

Wilson Engineers specializes in water, wastewater, and reuse engineering. Wilson provides full-service design and construction administration capabilities, which includes planning, preliminary design, detailed design, scheduling, budget estimating, construction phasing, and operation and maintenance requirements.

Crown Castle photo, WEB

LGE Design Build starts construction on Crown Castle BTS

LGE Design Build has broken ground and is currently in the process of constructing Crown Castle’s 70KSF, two-story class-A office build to suit in Chandler.

Crown Castle, the nation’s largest provider of wireless infrastructure, expects to move into the new facility next summer, located at southeast corner of Germann Road and Stearman Drive. Crown Castle provides wireless carriers with the infrastructure they need to keep people connected and businesses running. With approximately 40,000 towers and 14,000 small cell nodes supported by approximately 6,000 miles of fiber, Crown Castle has a significant presence in the top 100 U.S. markets.

“With an innovative, cutting-edge client, the design intent is to create a unique experience by providing a specific context within the desert and Chandler,” said David Sellers, president of LGE Design Build. “We’ll connect the outside environment with texture, colors and materials to convey corporate elegance.”

The build to suit’s entry includes steel beams and columns, accented by sandstone and a wood finished, with interior concrete panel walls and tinted glazing, contributing to a sophisticated corporate feel. The building also will have two balcony areas and metal trellises to provide shade around the building.

Hi-Health, Courtesy of Sperry Van Ness

Sperry Van Ness reports 4Q retail, office transactions

RETAIL SALES: 

Mary Ridberg and Rommie Mojahed represented the seller, Jorde Hacienda Inc. in the $1,700,000 sale of a 152,460 SF PAD at Higley Village. Higley Village is located at the SEC of Higley Road and Queen Creek Road in Gilbert. The buyer was ARJ Properties LLC.

Trenton McCullough and Shari A. Tucker represented the buyer, Casa Mirage Properties, LLC in the $3,070,000 purchase of a 20,130 SF multi tenant retail building located at 13915 N. Dysart Road in El Mirage. The seller was El Mirage Partners, LLC and was represented by Cam Stanton and Andrew Fosberg of CBRE.

 

RETAIL LEASES:

Baja Tacos leased 1,800 SF of restaurant retail space at Barkley Center, located at 1437 E. Main Street in Mesa. Beau Flahart represented the landlord.

Fix it Wireless, LLC dba Metro PCS leased 2,000 SF of retail space at Pecan Promenade, located at 9820 W. Lower Buckeye Road in Tolleson.  Beau Flahart represented the tenant and Brad Douglas of Cassidy Turley represented the landlord.

Mary Ridberg, Rommie Mojahed and Beau Flahart represented the landlord at Fiesta Crossing in the 5,116 SF lease to Living by the Word Church.   Fiesta Crossing is located at 1660 S. Alma School Road in Mesa.  Jody Dents of US Preferred Realty represented the tenant.

Kings Ranch Dental leased 3,000 SF of retail space at Apache Trail Plaza. Apache Trail is located at 3061 W. Apache Trail in Apache Junction. Beau Flahart represented the landlord.

Larry Charles leased 1,200 SF of retail space at Plaza 32, located at 2822 N. 32nd Street in Phoenix. Mary Ridberg and Carrick Sears represented the landlord.

Shari A. Tucker-Gasser and Trenton McCullough represented the landlord at Mountain Park Square, located at 4232 E. Chandler Blvd. in Ahwatukee, in the leasing of a 5,012 SF space to Hi Health.  The space was leased to the former Secreto’s restaurant.

Mary Ridberg and Rommie Mojahed represented Potato Barn to lease 22,252 SF of retail space at Scottsdale 101 Retail, located at the NWC of Mayo Blvd. and Scottsdale Road in Scottsdale.

Firehouse Subs opened their newest location at Watson Marketplace, located at 485 S. Watson Rd. in Buckeye. Mary Ridberg and Rommie Mojahed represented Firehouse Subs in the 2,300 SF, 120 month lease.

Mary Ridberg, Rommie Mojahed and Beau Flahart represented the landlord at Mesa Vista Plaza in the leasing of 1,155 SF of retail space to tenant Nguyen Nail Salon, who was represented by Scott Teerink of MEB Commercial Management Group, LLC.

OFFICE LEASES: 

Justin Horwitz and Nicole Ridberg represented the landlord at Ventura Gateway, located at 8687 E. Via De Ventura in Scottsdale, to lease 990 SF of office space to Developmental & Educational Psychological Services.  The tenant was represented by Gregg Sherman of Cassidy Turley.

Also new to Ventura Gateway, The Law Offices of David Baker.  Justin Horwitz and Nicole Ridberg represented the landlord and Colby Everett of Cassidy Turley represented the tenant.

Justin Horwitz represented Amer-X-Security in the leasing of 4,358 SF of office space at 15841 N. 77th Street in Scottsdale.  Mike Kane of Colliers represented the landlord in the transaction.

Cedar Court, WEB

Cedar Court in Glendale sells for $6.25M

Colliers International in Greater Phoenix recently completed the sale of Cedar Court in Glendale, a 116-unit class-B multifamily complex, for $6.25 million, or $53,879 per unit.

Emma Capital Properties Inc. of Toronto, Ontario, purchased the property, at 5215 W. Peoria Avenue, from Cedar Court Condominiums LLLC of Glendale.

Bill Hahn, Jeffrey Sherman, and Trevor Koskovich, senior vice presidents with Colliers International’s HSK Multifamily Southwest team, represented both buyer and seller.

Built in 1986, Cedar Court has 77,408 square-feet, in seven two-and three-story buildings, positioned on 4.07 acres. The community has 56 one bed/one bath units with 580 square-feet, 24 one bed/one bath units with 630 square-feet; and 36 two bed/two bath units with 828 square feet.

The condominiums are within two miles of Arizona State University West and Glendale Community College, and just over three miles from the Thunderbird School of Global Management. Other nearby employment centers include the Aurora Behavioral Health System and the Banner Thunderbird Medical Center. Cedar Creek is three miles away from Interstate-17.

“The buyer was attracted to the high-quality design and construction of this 1980s-era property. This was clearly an A-quality property at the time it was built,” said Hahn.

Main Pic Promenade, WEB

Promenade at Desert Sky sells for $11.85M

Colliers International in Greater Phoenix recently completed the sale of Promenade at Desert Sky, a 300-unit class-B apartment complex in Phoenix, for $11.85 million, or $39,500 per unit.

Desert Sky Estates, LLC, of Woodmere, New York, purchased the property, at 6233 W. Thomas Road, from WT Promenade LLC of Englewood, Colo.

Bill Hahn, Jeffrey Sherman, and Trevor Koskovich, senior vice presidents with Colliers International’s HSK Multifamily Southwest team, represented both buyer and seller.

Built in 1987, Promenade at Desert Sky features the highest quality architecture and design compared to class-B competitors in the Phoenix multifamily market. The apartment community consists of 216,140 square-feet, in 17 two-story buildings, situated on 11.4 acres. A wide frontage area faces an active thoroughfare at the entry.

Unit mix is 68 one bedroom/one bath, at 525 square-feet, and 124 one bedroom/one bath, at 690 square-feet. There are 68 two bedroom/one bath, 860 square-feet, and 40 two bedroom/two bath, 910 square-feet, apartments.

“Promenade at Desert Sky is one of the more physically attractive multifamily assets in the immediate area. The buyer will be able to leverage this attribute along with light physical improvements to derive above average performance in terms of rents and occupancies moving forward,” said Sherman.

data center to be built in price corridor in chandler

Colliers International hires first mission critical data center expert

Colliers International in Greater Phoenix has hired Michael Ortiz, its first mission critical and data center expert, to help capture the data center construction market which is expected to boom to $20 billion in the U.S. and $80 billion globally by 2020, according to a 2011 Data Center Knowledge article.

Michael Ortiz

Michael Ortiz

Construction for data centers, the fastest-growing real estate class in the world, is forecast to expand over the next four years as demand for facilities increases and regulations in the energy industry prompt upgrades. A key driver behind this growth has been the soaring influence of data in consumers’ lives. Humans have created more information in the last 10 years than in the entire history of collecting data. Usage of data is expected to continue rising as the average individual will carry approximately 6.6 devices by 2020 as compared to 3.5 devices today, according to the Stevens Institute of Technology in New Jersey.
Ortiz joins Colliers International as an associate vice president and a member of Colliers’ national Technology Solutions Group, a select group of brokers specializing in data centers. He collaborates with clients and fellow brokers across the entire Colliers platform to identify, create and deliver mission critical infrastructure and data center-specific solutions to end users, developers and investors.

Ortiz brings more than 15 years of commercial real estate experience and in-depth knowledge of mission critical infrastructure and data centers. His skills include quantitative credit underwriting, asset management, sales and operational expertise. Ortiz has managed data centers from a developer perspective, delivering solutions to early-stage entities up to Fortune 1000 clients.

Ortiz also has data center policy experience. He served as a senior member of the Arizona Data Center Coalition, which helped to pass S.B. 2009, signed by Gov. Brewer in 2013. The goal of the IT-specific tax reform legislation is to elevate Arizona’s positioning in the U.S. as a top tier data center market.

“The legislation levels the playing field relative to other states that offer IT-based tax programs to attract free-standing data center facilities and colocation tenants with 500 kw or greater in IT deployment,” Ortiz said.

Since data centers rely heavily on equipment, the primary expenses for a tenant are recurring server and equipment refresh costs, occurring approximately every 36-42 months, he said.

“With the new legislation and Arizona’s many manmade and natural attributes that make it an optimal destination for data centers, our state is poised to experience noteworthy growth in this sector,” said Bob Mulhern, managing director of Colliers International in Greater Phoenix. “Michael brings the caliber of expertise and leadership that makes him the right person to propel momentum and drive our clients to new successes.”

Arizona’s lack of earthquakes, abundant access to affordable and diverse forms of energy, and proximity to Fortune 500 headquarters in cities such as San Francisco, Los Angeles, Dallas and Denver, make the state a desirable place to locate mission critical properties and data centers, Ortiz said.
“The Phoenix data center market continues to be very appealing to West Coast companies seeking relief from the higher power costs in California. Excellent tax incentives and lower utility costs have made Phoenix a very strong competitor against California and Texas data center sites,” said Tim Huffman, EVP national director of Colliers’ Technology Solutions Group. “The Colliers Technology Solutions Group offers a full suite of data center strategy and transaction services to companies around the world. Michael Ortiz’s experience working on the landlord side of the business brings a uniquely qualified perspective to our team and to our clients. We are very pleased to have him on board.”

As part of Colliers’ global platform that includes 16,000 professionals in 63 countries, Ortiz, who is fluent in Spanish, will serve clients throughout the U.S. and may also serve clients internationally. Latin America is poised to see significant IT-spending over the next several years.

Before joining Colliers, Ortiz served as the senior asset manager for the Western region at Digital Realty Trust, which led the Arizona Data Center Coalition initiative in partnership with the Greater Phoenix Economic Council, Arizona Commerce Authority and data center developers such as CyrusOne, PhoenixNAP and IO Data Centers. At Digital Realty, Ortiz managed a two million-square-foot portfolio of technology-based assets delivering data center solutions to clients in the Southern California and Arizona markets.

At Scottsdale-based Global Mission Critical Services, Ortiz served as the senior director of the IT Advisory Services Group where he drove and diversified the sales program, strengthening channel relationships with IT, healthcare and aviation companies. In 2013, Ortiz also founded a real estate advisory firm, Hemisphere Capital Advisors, LLC. His firm provided advisory services in the areas of asset management, sales and operations for office, industrial and data center clients.

Additionally, Ortiz’s experience includes serving as a credit officer for the Bank of Tokyo- Mitsubishi UFJ, Ltd., and as a commercial lending analyst for JPMorgan Chase.

“I’m excited to join Colliers, a unique global company that treats each client’s real estate needs with a local service approach. Colliers is about people doing business with people they like and trust as experts in this information technology-based real estate sector,” Ortiz said. “We look to provide creative, simplified solutions for companies to make mission critical infrastructure and data centers a valuable piece of their real estate portfolio.”

Ortiz earned the Equity Office Properties’ 2005 Excellence Award and is a member of the National Society of Hispanic MBAs. He earned an MBA from Indiana University and a bachelor’s of science degree from Purdue University.

Crowne Plaza San Marcos

Crust Pizza signs 10-year least at Crowne Plaza San Marcos

Colliers International in Greater Phoenix recently negotiated a 10-year restaurant space lease at Crowne Plaza San Marcos Golf Resort and Hotel in Chandler.

Crust Management, LLC, of Phoenix, leased 6,550 square feet, 2,850 square feet of which is in the basement of the resort located at 1 San Marcos Place. Crust was represented by Ken Flynn of Realty One Group in Scottsdale.

Michael Farrar, vice president in Colliers’ Scottsdale office, represented the landlord, San Marcos Hotel, LLC, of Chandler.

The tenant will renovate the space for a Crust Pizza, which has restaurants in Scottsdale and Phoenix. Ground was broken in September and the restaurant opening is anticipated in late spring 2015.

“The Crust’s concept is based on the owner growing up in the back of his father’s pizzeria on Long Island where he learned traditional family recipes,” said owner Mike Merendino, adding, “In keeping with the nostalgia of the San Marcos, we’re planning a prohibition speakeasy-style lounge.”

The San Marcos was purchased by Interwest Capital Corporation in January 2013 and a multi-million dollar makeover ensued.

“This historic 1912 resort, with Frank Lloyd Wright-inspired Mission Revival architecture, is listed on the National Register of Historic Places,” Farrar said, adding, “The Crowne Plaza San Marcos is in the heart of Chandler’s entertainment district and is an icon for the East Valley. Crust Pizza will be a valued addition to this signature property.”

2851 W.  Kathleen Rd Flex-Office Showroom, WEB

Deer Valley submarket sees its largest transaction of the year

Daum Commercial Real Estate Services has negotiated the all-cash, $21.6 million sale of a 145,000-square-foot flex-office showroom project located at 2851 W. Kathleen Road in the Deer Valley submarket area of Phoenix.

Bob Lundstedt and Chris Rogers of Daum in Phoenix represented the seller, Intravest 2851 Kathleen LLC of Phoenix. The buyer, a subsidiary of Griffin Opportunities of Pacific Palisades, Calif. was represented by Ben Prater of Colliers International of Sacramento, Calif.

The 9.55-acre property was developed in 1988 and is fully leased to Climatec, the largest privately-owned building technologies company in the nation. Climatec is a leading provider of advanced building technologies and energy solutions.

The flex-office building was renovated in 2009. This marks the first investment in the Valley for Griffin Opportunities and the largest transaction in the Deer Valley submarket this year.

Daum Commercial Real Estate Services specializes in industrial and office properties throughout metro Phoenix. Daum Phoenix has successfully sold and leased millions of square feet in industrial and office buildings, and land. Headquartered in Los Angeles, Daum is California’s oldest and most experienced commercial real estate brokerage company. Daum is an affiliate of ONCOR International, a premier global commercial real estate referral network comprised of more than 50 independent commercial real estate partner brokerages in 32 countries.

CBRE hires two first vice presidents

Brian Raczynski, CBRE

Brian Raczynski, CBRE

CBRE has hired First Vice Presidents Brian F. Raczynski and Tim Watters, two tenured, well-respected commercial real estate professionals, to join the firm’s Office Services Group in Phoenix.  They will partner on a team that will deliver integrated, strategic landlord advisory services including asset management and the acquisition, disposition and leasing of office space in the Phoenix metro market.

Raczynski and Watters have an established track record and a solid reputation in the industry, which complements our market-leading lineup of office services brokerage 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 office property owners and operators.”

Tim Watters, CBRE

Tim Watters, CBRE

Raczynski also returns to CBRE after seven years with Colliers International, where he was also a senior member of the top producing Landlord Advisory Group. Over the course of his 20-year commercial real estate career, Raczynski has leased more than 5.2 million square feet of office space. His efforts have increased his clients’ gross revenues by more than $320 million to date. He has extensive experience with asset management and leasing for some of the country’s most active pension and endowment funds; he also has significant experience negotiating contracts with public sector entities like the DEA, FBI and Veterans Affairs, among others. In 1999 he was named CBRE’s Rookie of the Year in Phoenix.

Raczynski attended Central Connecticut University and holds dual Bachelor of Science degrees in accounting and finance.

Watters, who began his real estate career at CBRE in 2000, returns to the firm from Colliers International’s Phoenix office where he served as a senior member of the company’s Landlord Advisory Group for the past seven years. Since 2002, he has leased over one million square feet and has been involved in more than 100 lease transactions annually. Prior to entering the commercial real estate industry, Watters was a professional hockey player in the National Hockey League for the Winnipeg Jets and Los Angeles Kings. He also competed in the 1980 and 1988 Winter Olympics for the Canadian National Team.

He holds a Bachelor of Science degree in business administration from Michigan Technology University.

CBRE is the market leader of office services in the metropolitan Phoenix market. Leveraging local market knowledge against a world-class, global real estate services platform, CBRE’s office services experts act as advisors and become an invaluable part of clients’ decision-making processes by providing integrated products and services including strategy development, management, finance, corporate services, consulting and leasing.

Villa Serena Main Pic, Colliers, WEB

Villa Serena apartment complex sells for $6.42M

Colliers International in Greater Phoenix recently completed the sale of Villa Serena, a 137-unit Class B apartment complex, for $6.42 million, or $46,861 per unit.

Janet LePage of North Vancouver, BC, purchased the complex, located at 4221 W. Dunlap Avenue, from Bligh Group, LLC, of Rancho Santa Fe, Calif.

Bill Hahn, Jeffrey Sherman and Trevor Koskovich, senior vice presidents with Colliers International’s HSK Multifamily, served as the brokers for the buyer and the seller. Colliers HSK Multifamily uses the extensive resources of Colliers International to assist in the placement of debt, investment sales and appraisal services. By ensuring strong and efficient systems are in place for the marketing, acquisition and disposition of properties and providing superior service, Colliers HSK Multifamily has achieved the highest market share of sales of B and C-quality multifamily assets in Arizona.

“Villa Serena provided the buyer with a good opportunity to acquire a clean building with solid cash flow and an upside through modest interior improvements,” said Sherman.

Built in 1982, the garden-style 117,732-square-foot apartment property is situated on 5.04 acres and consists of one, two and three-story buildings.

Unit mix is 63 one bedroom/one bath apartments and 60 two bedroom/two bath apartments. An additional 14 two bedroom/two bath flats are single-level casitas.

“This is a clean property positioned in a rebounding submarket that will benefit from the continued recovery in the local economy,” Sherman said.