Tag Archives: colliers international

Generic Building, WEB

Retail absorption dips to start 2014, gains likely later in the year

Colliers International in Greater Phoenix released its 1Q report for retail in 2014. Read the highlights below. Link to full report at the end of the post.

  • Net absorption in the Greater Phoenix retail market turned negative in the first quarter for the first time in three years. Negative net absorption was approximately 103,000 square feet. Still, the longer-term trend is for retailer expansion; net absorption over the past 12 months has totaled 2.7 million square feet.Tenant demand is typically weakest in the first quarter, as ,retailers often expand late in the year and then close under-performing stores after the holiday shopping season.
  • Vacancy ended the first quarter at 10.8 percent, up from 10.7 percent at year-end 2013. Despite the recent uptick, the prevailing trend is for declining vacancy. The rate is down 80 basis points year over year.
  • Shopping center transaction activity is gaining momentum, with sales velocity in the first quarter increasing 8 percent from fourth quarter levels and more than doubling the number of properties sold in the first quarter 2013.

Phoenix Retail Market Report

2700 W. Frye Rd., Chandler

Colliers International Completes $43.1M Sale of 183KSF Office in Chandler Price Corridor

Colliers International in Greater Phoenix recently completed the sale of a 183KSF, Class-A office building in Chandler for $43.1M, or $235.50 a square foot.

W. P. Carey Inc., a global net-lease REIT based in New York City, purchased the building at 2700 W. Frye Rd. in Chandler from Regent Properties of Los Angeles.

Neil Glassmoyer, senior vice president; Tivon Moffitt, vice president; and Peter Bauman, senior associate; all of Colliers International in Greater Phoenix, served as brokers for the buyer and seller.

“The market fundamentals in Chandler’s Price Road Corridor are very strong and the area is poised for continued expansion. The building’s location in the heart of Chandler’s Price Corridor helped attract W. P. Carey,” Moffitt said.

The Chandler submarket features one of the lowest office vacancy rates in Metro Phoenix, as tenants are drawn to the area due to the highly educated workforce, according to Colliers International.

“Price Corridor is Chandler’s premier employment corridor, and continues to attract companies interested in quality and a sense of place,” said Chandler Mayor Jay Tibshraeny. “It is a central hub for the workforce, infrastructure and amenities that the current marketplace demands.”

W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini, said, “The combination of the desirable location, credit tenant and quality asset made the acquisition an ideal addition to our portfolio. Together with its criticality to the operations of QBE the property meets all our investment criteria and supports our strategy of providing secure, long-term cash flow to our investors.”

QBE Insurance, one of the 20 largest insurance and reinsurance companies in the world, is the building’s only tenant on a long-term lease. This location is QBE’s second largest office building in the country. Overall, QBE is located in 43 countries.

“This acquisition was ideal for W. P. Carey given that the tenant, QBE Insurance, is a strong and stable investment grade tenant,” Bauman added.

Regent Properties completed the building’s construction after purchasing the property in 2011 and then fully leased the building to QBE shortly thereafter.

“Regent Properties had a dynamic vision for this property. They added significant value by completing this class A office asset,” according to Glassmoyer.

“The success of this project is due in large part to the cooperation and aid from the City of Chandler’s economic team, QBE’s desire to be in Chandler and ultimately Neil and Tivon, and the entire Colliers’ team, for connecting Regent Properties with the W. P. Carey team.  This project is emblematic of our proven track record at stabilizing once troubled assets as well as our commitment and belief in the Phoenix market,” according to Eric Fleiss, president of Regent Properties.

Deal, WEB

Colliers: Transaction Activity Mixed, But Land Prices Continue to Push Higher

Colliers International of Greater Phoenix has issued the 2H 2013 Phoenix land report. We’ve included the highlights with a link to the complete report below.

·         The Greater Phoenix housing market is posting price gains, but the pace of appreciation has been slowing in recent months after being among the top-performing markets in the country in 2012. One area where home prices have continued to gain momentum is in new home sales, where the median price topped $300,000 in December 2013.

·         Sales activity for land for residential uses slowed in the second half of the year, as did single-family permitting activity. Multifamily permitting increased in the second half of the year and for all of 2013, multifamily permitting was up 9 percent from 2012 levels.

·         Sales activity involving parcels for industrial and other commercial uses accelerated in the second half of 2013 in response to strengthening demand for office and retail space.

·         While sales activity levels for land parcels were mixed in 2013, prices pushed higher across the board. Current market fundamentals are improved over recent years and the outlook has brightened. Additional volatility surrounding activity levels is likely, as demand for new homes and commercial real estate has been uneven.

Read more: Phoenix Land Market Report H2-13

Desert Canyon, Colliers

Colliers International Completes 5-Year Lease of Global Business Travel and Events Firm

Colliers International in Greater Phoenix recently completed the 5-year lease of Carlson Wagonlit Travel, a Paris-based business travel and meetings and events company.

Carlson Wagonlit Travel selected Desert Canyon 100, located at 2401 W. Peoria Ave. in Phoenix, for its large, flexible floor plans and proximity to employees’ residences. The company, which has a presence in 150 countries and territories, is leasing 25,815 square feet.

Constructed in 1999, Desert Canyon 100 is a three-story, Class A building located near Interstate 17, allowing quick access to downtown Phoenix and Phoenix Sky Harbor International Airport.

Keith Lambeth, senior vice president at Colliers International, and Ryan Timpani, senior associate at Colliers International, served as brokers for the landlord, St. Paul Fire and Marine Insurance Company of St. Paul, Minn.

Richard Collins with CD Commercial Advisors of Phoenix and Stephen Pisarik with Studley of Irvine, Calif., served as brokers for Carlson Wagonlit Travel.

Left to right, from top: Cindy Cooke, Bill Hahn, Trevor Koskovich, Keith Lambeth, Bill Littleton, Don Macwilliam, Payson Macwilliam, Todd Noel, Jeff Sherman.

Phoenix Brokers Are Among Top at Colliers International

Colliers International in Greater Phoenix’s national office recently honored brokers for their financial achievements, ranking nine of them in the top 10 percent of brokers in the United States, Canada and Latin America.  

The brokers were recently recognized as 2013 Everest Club qualifiers at a reception in Atlanta during the Colliers International 2013 Americas Conference.

“The foundation of our success is the strength, expertise and depth of our staff,” said Bob Mulhern, the managing director of Colliers International in Greater Phoenix. “We are very proud of our top brokers who provide outstanding service to help our clients accelerate their businesses.”

 

2013 Everest Club honorees:

·       Cindy Cooke, Executive Vice President

·       Bill Hahn, Senior Vice President

·       Trevor Koskovich, Vice President

·       Keith Lambeth, Senior Vice President

·       Bill Littleton, Senior Vice President

·       Don MacWilliam, Senior Vice President

·       Payson MacWilliam, Senior Vice President

·       Todd Noel, Senior Vice President

·       Jeff Sherman, Vice President

The Paragon_pic - Smaller

The Paragon at Kierland Sells for $57.75M

The Colliers International in Greater Phoenix Southwest Multifamily Advisors’ team recently completed the sale of The Paragon at Kierland, a 276-unit, Class A luxury apartment complex located on the Westin Kierland Golf Course, for $57.75 million or $209,239 a unit/$200 a square foot.

The transaction is the highest per unit sale to date in 2013 and the highest per unit sale in the last five years for properties without an active condo map in the Phoenix market, according to Colliers International in Greater Phoenix.

Sentinel Real Estate Corporation of New York City acquired the property at 15608 N. 71st Street in Scottsdale. The seller was Sunstone Realty Advisors of Vancouver, Canada.

Colliers’ Southwest Multifamily Advisors’ team of Jerry Tenge, senior vice president of multifamily investments; and Tristan Charlesworth, an associate; served as the exclusive representatives of Sunstone Realty Advisors. The Southwest Multifamily Advisors previously negotiated the acquisition of The Paragon on behalf of Sunstone in November 2009 for $34.2 million ($123,913 a unit/$118.19 a square foot). The Paragon has risen in value by $23.55 million in four years.

In total, more than 65 investors bid on the property and 22 investors placed bids at more than $50 million.

Sunstone selected Sentinel for its ability to close the deal.

“The Paragon is among the most elite investment properties in Arizona. The future opportunities at The Paragon are numerous from converting the complex into condos, running a timesharing program or continuing to operate the complex as apartments,” Tenge said.

Built in 2000 and renovated in 2008, The Paragon consists of 289,233 rentable square feet in 23 three-story buildings, along with a single-story recreation building, set on approximately 10.4 acres. The unit mix includes one-, two- and three-bedroom apartments ranging in size from 924 square feet to 1,323 square feet. Current occupancy is 98 percent.

“The luxury apartment complex has been maintained with meticulous care and is located in a highly desirable resort area of Scottsdale near fine shopping, dining and golfing,” Charlesworth said.

Located just west of the Loop 101 and Scottsdale Road, The Paragon is situated along the Westin Kierland Golf Club at the Westin Kierland Resort & Spa and is within walking distance of 30 prime restaurants and more than 100 specialty shops at Kierland Commons and Scottsdale Quarter.

Unit amenities include gourmet chef’s kitchens, ceramic countertops, custom cabinetry, built-in microwaves, full-size washers and dryers, oversized walk-in closets and large private patios or balconies in select units. The property is designed with many resort-style features including a heated pool with pool bar, fire pit and cabanas.

Scott German

Colliers International Hires Office Properties Leader

 

Colliers International Greater Phoenix named Scott D. German vice president of office properties for its Scottsdale office.

German is leasing and selling Scottsdale office buildings, and providing consultation on development and land acquisition for clients.

During his 28 years in the Metro Phoenix commercial real estate industry, German has completed more than 2,000 lease and sale transactions in office, medical and industrial buildings. He specializes in financial analysis and contract negotiation.

“Scott’s expertise in landlord and tenant representation complements the accomplished team of our Scottsdale office,” said Bob Mulhern, managing director of Colliers International Greater Phoenix. “Scott is well-versed in the intricacies of the Scottsdale submarket having focused on the area for much of his career.”

Previously, German served as a vice president at CBRE for more than six years where he helped lead the industrial team as it developed build-to-suit distribution buildings, light industrial multi-tenant parks, office parks and two of the largest multi-tenant office/back office parks in the Metro Phoenix market.

In addition, German served as a vice president at NAI Horizon for 11 years and as a senior associate for almost 10 years at CBS Property Services.

“Colliers’ skilled management team, its laser-sharp focus on serving the needs of clients and its positive environment attracted me,” German said. “I have known a number of remarkable Colliers brokers throughout my career and it’s an honor to join this dedicated team.”

A member of the Arizona Technology Council and National Association of Industrial and Office Properties (NAIOP), German earned his bachelor’s degree in finance from Arizona State University.

 

 

Peter Bauman

Colliers Expands Team Specializing In Investment Sales, Corporate Tenant Representation

 

Colliers International in Greater Phoenix announced that Peter Bauman, senior associate, has joined the Phoenix office.

Bauman specializes in investment sales and corporate tenant representation. Client services include dispositions, acquisitions, site selection, financial analysis and strategic planning. Bauman partners with Tivon Moffitt, vice president.

“Peter is a welcome addition to the Colliers team,” said Bob Mulhern, managing director of Colliers International. “He has a strong work ethic, is a dedicated professional, and is enthusiastic about working closely with other brokers to best serve our clients. We are fortunate to have Peter on board.”

Bauman’s background includes expertise in the healthcare industry and extensive international business experience in Ghana, The Netherlands, United Arab Emirates, Indonesia, United Kingdom and Costa Rica. Prior to joining Colliers, Bauman was with Fresenius Medical Care North America in northern California, where he helped improve patient productivity and clinic profitability.

Previously, Bauman held the positions of exploration manager and geologist for Wyoming Mining and Exploration in Ghana, West Africa, from 2007 to 2009. He created feasibility studies, which he presented to investors to secure funds for operations. His responsibilities also included profit and loss forecasts, annual budgets, mine plans and exploration growth models.

“When I made the decision to pursue a career in commercial real estate, I spoke with a number of brokers at various firms,” Bauman said. “The decision to join Colliers was driven by the dynamic and synergistic work environment, the entrepreneurial spirit, and the strong core values that are ingrained in the Colliers culture. There was an immediate connection with Colliers and with Tivon Moffitt.”

Bauman holds a Bachelor of Science in Oceanography and a Bachelor of Arts in Geology from Humboldt State University in Arcata, Calif.

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Casa Carranza Apartments In Mesa Sell For $9.1M

 

Colliers International in Greater Phoenix negotiated the sale of the 272-unit Casa Carranza Apartments at 1903 N. Country Club Dr. in Mesa for $9.1M, or $33,456 per unit.

SPL Real Estate & Management Company of Denver acquired Casa Carranza in an all-cash transaction. The seller was Summit Equity Investments, Inc., a Los Angeles-based real estate investment firm. Bill Hahn, Jeffrey Sherman and Trevor Koskovich of Colliers’ HSK Multifamily team represented both parties.

The community, which was built in 1979, was originally acquired by Summit in 2010; and Summit completed extensive remodeling in 2011. Most significant was the addition of a $1.5M, 281-kilowatt solar power system, which covers 15,000 SF atop new parking canopies with 1,004 high-efficiency solar panels. This is believed to be the largest covered-parking solar power system added to an apartment community in Arizona.

The solar system provides an annual utility savings of approximately $50,000, by replacing approximately 25% of total energy consumption with solar energy and generating more than 475,000 kW hours annually. The project takes advantage of the Salt River Project’s production-based renewable energy incentive program.

“Casa Carranza represented a highly-desirable investment opportunity for SPL Real Estate & Management Company,” Koskovich said. “The solar power system drives real savings for the property and greatly enhanced the property’s value. Summit made other considerable investments in the property, improving the community’s infrastructure, renovating building facilities, and re-tenanting.”

Koskovich adds that SPL will self-manage Casa Carranza and plans further improvements through streamlined operations and taking advantage of their property management expertise. This is SPL’s second multi-family acquisition in metro Phoenix, with plans to acquire additional multi-family assets.

Casa Carranza is a 2-story complex consisting of 14 buildings on 7.5 acres with 126,600 net rentable SF. The unit mix includes 104 studios, 166 one-bedroom and 2 two-bedroom apartments. Community amenities include two swimming pools, laundry facilities, shaded ramadas and covered parking. Renovations completed by Summit include a new playground, lighted basketball court and soccer field, dog park and exterior paint.

 

AZCREW Q&A: Lindsey Carlson, Associate VP, Office Property Solutions, Colliers Intl.

Screen Shot 2013-07-26 at 11.12.33 AMQ:Professionally, what does it mean to you to be a member of AZCREW?

A: I am surrounded by an incredible group of women with knowledge and expertise in a variety of aspects related to real estate. Involvement in AZCREW has allowed me to learn from my peers and become a well-rounded broker who provides a high level of service to meet and exceed my clients’ expectations. It has given me great perspective and insight into what is happening in the commercial real estate market. I have such confidence in referring any of my fellow AZCREW members to my clients, knowing they will take great care of them.

Q: What about AZCREW do you find to be most rewarding?

A:  I’d say the networking with other successful women for whom I have the greatest respect. The friendships that have developed while serving on various committees and the board have been invaluable in providing a strong sense of community while working in a mostly male-dominated profession. The support we provide to each other, not only professionally but personally, is remarkable. These are amazing women with great stories, and many are role models and mentors to me. I aspire to have the same impact they have had on our community. Through AZCREW’s community service, many of us give time and resources to help women-focused groups, such as Fresh Start, UMOM and Susan G. Komen, which has been truly inspiring.

Q: Was there an “aha moment” when you realized being a member was invaluable?

A: Several years ago, we hosted our first CREW Careers event to mentor young women who were interested in a commercial real estate career. This program gave them hands-on experience and exposure to a wide range of real estate careers, while demonstrating how rewarding and fun it could be. Seeing the excitement on their faces while surrounded by a group of women who they could look up to and respect was extremely satisfying. I felt we truly made a difference in their lives and, hopefully, encouraged more women to join our industry.

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WAM Glendale Purchases Warehouse Occupied By Sprouts; Enters Phoenix Market

 

Colliers International in Greater Phoenix negotiated the sale of a 105,848 SF cold-storage warehouse at 5445 W. Missouri Ave. in Glendale for $9.2M, or approximately $86.9 PSF.

By purchasing the property, WAM Glendale L.P., formed by WAM Development Group of Alberta, Canada, gains entry into the market. FBL LLC, a large design builder of Berkeley, Ill., sold the property. Marc Bonilla of Colliers International in Greater Phoenix represented both sides.

Sprouts Farmers Market’s Southwest U.S. Distribution Warehouse is the only tenant on a new 10-year term with the option to expand to an additional 40,000 SF.

Sunflower Farmers Market moved its operation into the property after Sprouts acquired the company in 2012. Sprouts has been at the location for 10 years.

Sprouts recently filed a $247.6M initial public offering of its stock, according to media reports.

The privately owned Arizona-based specialty grocery store chain has more than 150 locations in Arizona, California, Colorado, New Mexico, Texas and Utah. Sprouts annual revenue is approximately $2B.

“Sprouts’ rapid growth helped attract WAM to the property,” Bonilla said. “WAM is seeking to purchase other single-tenant industrial net-leased assets in the Valley on an all-cash basis.”

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Colliers Negotiates $11.5M Sale Of Lucera Apartments In Mesa

 

Colliers International in Greater Phoenix negotiated the sale of the 192-unit Lucera Apartments at 2940 E. Broadway Rd. in Mesa for $11.5M, or approximately $59,895 per unit.

New City Financial Group of Vancouver, BC, acquired Lucera in an all-cash transaction. The seller was Principal Real Estate Investors. Bill Hahn, Jeffrey Sherman and Trevor Koskovich of Colliers International’s HSK Multifamily team represented both the buyer and seller.

“New City Financial Group felt Lucera Apartments was a desirable asset to acquire, with its location in a dynamic area of Mesa that is seeing improvements in both rent and occupancy,” Sherman said. “Lucera also offers excellent visibility on Broadway Road, with proximity to employment centers, and is in great physical condition.”

Occupancy at closing was 93%.

Built in 1986, Lucera is a two- and three-story community consisting of approximately 138,352 net rentable square feet in 11 buildings set on 6.94 acres. The unit mix includes 136 one-bedroom, one-bath and 56 two-bedroom, two-bath units, ranging in size from 530 SF to 892 SF.

Community amenities include controlled access entries, a business center, clubhouse, fitness room, two swimming pools and a spa. There are 192 covered parking spaces, plus 138 open parking spaces. Apartments include washers and dryers, walk-in closets in select units, private patios, dishwashers and microwaves.

Hahn, Sherman and Koskovich specialize in the sale of multifamily investment real estate in the Southwest. Colliers HSK Multifamily is positioned within the marketplace as a service-intensive operation serving the private and institutional capital markets.

 

Campus Walk Apartments

Campus Walk and Campus View Apartments Sells For $5.6 Million in Tempe

Colliers International in Greater Phoenix negotiated the sale of the Campus Walk and Campus View Apartments in Tempe, Ariz., for approximately $5.58 million, or $50,718 per unit. The two communities consist of a combined 110 units.

The buyer was Renue on Orange, LLC, of Scottsdale, a company formed by Jay Chernikoff and Michael Christiansen. The seller was Steve Heimler of Calabasas, Calif. Bill Hahn, Jeffrey Sherman and Trevor Koskovich of Colliers International’s HSK Multifamily team represented both the buyer and seller.

“Chernikoff and Christiansen recognized the opportunity to acquire an older property with excellent potential to be repositioned as student housing to serve Arizona State University, located one-half mile west of the properties,” said Koskovich. “Due to the proximity to the Metro Light Rail, both assets are in the Transit Overlay District (TOD), which allows for future high-density redevelopment and provides a pedestrian-friendly environment.”

The 62-unit Campus Walk is a two-story community located at 1137 E. Orange Street; the 48-unit Campus View is a three-story community located directly across the street at 1140 E. Orange Street, in Tempe. Both properties were built in 1968.

Campus Walk consists of 28 one-bedroom, one-bath and 34 two-bedroom, two-bath units ranging from 820 to 935 square feet. Campus View consists of 24 one-bedroom, one-bath and 24 two-bedroom, two bath units ranging from 820 to 965 square feet. Common amenities include two swimming pools, two laundry facilities and 140 uncovered parking spaces with additional open parking along Orange Street.

The Phoenix team of Cohen Financial led by Brandon Harrington, partner-director, arranged acquisition financing at 85 percent loan-to-cost. The loan is interest only with a three-year term. “We were able to provide an attractive interest rate with high non-recourse leverage from a private equity firm for Renue Properties to reposition the asset while maximizing investment yield,” said Harrington.

Hahn, Sherman and Koskovich specialize in the sale of multifamily investment real estate in the Southwest. Colliers HSK Multifamily is positioned within the marketplace as a service-intensive operation serving the private and institutional capital markets. To view their current offerings, visit www.colliershskmultifamily.com.

About Colliers International

Colliers International is a global leader in commercial real estate services, with over 13,500 professionals operating out of more than 482 offices in 62 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

For the latest news from Colliers International, visit colliers.com/us/news or follow on Twitter: @ColliersIntl.

Colliers International in Greater Phoenix has served clients locally and globally for more than 30 years. 

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Talia Jevan Properties Purchases Lifeprint Health Center For $20.5M

 

Colliers International announced that Vancouver-based private investor Talia Jevan Properties (TJP) has acquired the Lifeprint Health Center at 20414 N. 27th Ave. in Phoenix for $20.5M.

The Lifeprint property represents TJP’s second Class A acquisition in the U.S.

Bob Broyles, senior vice president with Colliers International in Greater Phoenix, and Simon Lim, executive vice president with Colliers in Vancouver, represented TJP in negotiating the purchase of this key investment property. Eric Wichterman, Mike Coover and Tom Weinhold with Cassidy Turley Arizona represented the seller, Winthrop Realty Trust of Boston.

Built in 2008, the 81,875 SF, 5-story Lifeprint Health Center is a Class A medical property located at the intersection of two major freeways — I-17 and West Loop 101. Situated near retail amenities and within a few blocks of the John C. Lincoln Deer Valley Hospital, the building also includes a 41⁄2-story parking garage with 300+ spaces.

“The Lifeprint Health Center is a great addition to Talia Jevan’s portfolio,” Broyles said. “Its strong base of synergistic tenants, state-of-the-art amenities and proximity to the hospital, combined with a fantastic location, make this a highly attractive medical property.”

The property is currently 98 percent occupied with a range of strong tenants. Lifeprint, a primary care, multi-specialty clinic owned by United Healthcare, occupies approximately 50 percent of the building. Other tenants include Premier Research Group, SimonMed Imaging, Southwest Desert Cardiology, Sonora Quest Laboratories and Central Garden and Pet.

“To date, we’ve acquired just under $40M in U.S. real estate. Our goal is to have upwards of $100M within a short time frame,” said Harmel S. Rayat, president of Talia Jevan Properties.

“As with our Canadian portfolio and our recent purchase of 94 Hundred Shea, a 74,000 SF mixed-use retail and office complex in North Scottsdale, we are primarily interested in Class A assets. As such, we are thrilled about the unique and rare opportunity to acquire this almost fully leased Class A medical property, which is home to many high quality tenants. We look forward to seeking additional high-caliber acquisitions like this in the near future.”

TJP will continue to work closely with Colliers International and lead advisors Vector Asset Management, Inc. in making further strategic acquisitions.

“This follow-on acquisition marks Talia Jevan’s second such purchase in as many months, a rapid deployment of our near-term $100M-plus allocation,” said Jay S. Bhogal, President and CEO of Vector Asset Management. “We’re confident that both of these target acquisitions and timing are opportune.”

The Phoenix team of Cohen Financial, led by partner-director Brandon Harrington, arranged acquisition financing for this transaction.

“We were able to close the deal in 30 days due to our management of the underwriting and legal process, which is critical in a volatile interest rate environment. In addition, we were able to mitigate rollover risk with our correspondent lender to maximize proceeds,”  Harrington said.

The Lifeprint Heath Center will be managed by the well-known Plaza Companies. Megan Sherwood with Plaza will manage the leasing.

 

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Colliers International Completes 36-Month Lease In Arcadia Gateway Center

 

Colliers International negotiated the 36-month lease of an approximately 8,806 SF Class A office space in the Arcadia Gateway Center, 4222 E. Thomas Rd. in Phoenix.

Greg Hopley, executive vice president with Colliers’ Scottsdale office, represented the landlord, 4222 E Thomas Rd LLC, in completing the transaction. The tenant, Stealth Solar, was self-represented.

Arizona-based Stealth Solar is relocating to the Arcadia Gateway Center from its previous office located nearby at 2600 N. 44th St. in Phoenix.

Arcadia Gateway Center is an 89,811 SF building with current occupancy of approximately 90%.

“This outstanding Class A office property is an ideal upgrade and perfect fit for Stealth Solar, which is growing its business throughout Arizona and Hawaii,” Hopley said.

“Stealth Solar wanted a well-located building with great presence and visibility. Built in 2000, the center is very well-maintained, has ample signage and has easy access to the Loop 101, 202, SR 51 and SR 143 freeways.”

The adjacent covered parking structure was also a determining factor in the selection of this property.

Stealth Solar is a residential and commercial solar photovoltaic (PV) design and integration company based in Phoenix.

 

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Colliers International Completes $5.6M Sale Of Avalon Hills Condominiums

 

Colliers International announced that BH Properties of Los Angeles recently purchased 205 units within the 348-unit Avalon Hills Condominiums, 3535 W. Tierra Buena Lane in Phoenix for $5.6M, or $27,317 per unit.

The seller was Michael Carmel, in his capacity as Trustee.

Bill Hahn, Jeffrey Sherman and Trevor Koskovich of Colliers International’s HSK Multifamily team represented both the buyer and seller in this transaction.

“Avalon Hills represents a great investment opportunity as a bulk sale of condominiums at a price far below the previous retail values of individual units,” said Bill Hahn, senior vice president with Colliers in Greater Phoenix.

Hahn said that BH Properties was particularly interested in the upside potential for increases in the property’s value through property improvements. Current plans call for BH Properties to hold Avalon Hills as an investment.

Avalon Hills is a 2-story community originally built as apartments in 1986 and subsequently converted to condominiums. The 205 units sold consist of 87 one-bedroom and 118 two-bedroom units, ranging in size from 470 SF to 828 SF.

Hahn, Sherman and Koskovich specialize in the sale of multi-family investment real estate in the Southwest. Colliers HSK Multifamily is positioned within the marketplace as a service-intensive operation serving the private and institutional capital markets.

 

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Colliers Retained As Representative For 276-Unit Scottsdale Luxury Apartment Community

 

Colliers International has been retained as the exclusive marketing agent for The Paragon at Kierland, a 276-unit Class A luxury apartment property at 15608 N. 71st St. in Scottsdale.

Jerry Tenge, senior vice president of multi-family investments with Colliers in Greater Phoenix, represents the seller, Sunstone Realty Advisors of Vancouver, Canada. Tenge previously negotiated the acquisition of The Paragon on behalf of Sunstone in November 2009. The call for offers date is June 12, 2013

“The Paragon presents tremendous value-add opportunity as an investment property. The interiors underwent partial upgrades in 2008, but could continue to be further upgraded to improve rents, which already command a 25% premium in Scottsdale over Greater Phoenix as a whole,” Tenge said.

Alternatively, the complex could be completely upgraded and sold as condominiums.

Strengthening demand in the Kierland area has been attracting investors and developers, according to Pete O’Neil, research manager for Colliers.

Tight Class A multi-family vacancy averages around 4.2% and rents exceed $1,100 per month in the area, supported by elevated household incomes and prominent area employers.

“This condo-quality asset is one of the most attractive multifamily investment properties available in Scottsdale due to these strong operating fundamentals,” asserts Tenge.

Built in 2000, The Paragon consists of 289,233 RSF in 23, three-story buildings, along with a single-story recreation building, set on approximately 10.4 acres. The unit mix includes one-, two- and three-bedroom units ranging in size from 924 SF to 1,323 SF.

Current occupancy is at 98%. Unit amenities include gourmet chef’s kitchens, ceramic countertops, custom cabinetry, built-in microwaves, full-size washers and dryers, oversized walk-in closets and large private patios or balconies in select units.

The Paragon is located in Scottsdale’s Kierland neighborhood, just west of the Loop 101 and Scottsdale Road. The property is situated in a resort-like setting along the Westin Kierland Golf Club at the Westin Kierland Resort & Spa and is within walking distance of 30 prime restaurants and more than 100 specialty shops at Kierland Commons and Scottsdale Quarter.

 

Kathleen Foster

Kathleen Foster Joins Colliers International’s Phoenix Office

 

Colliers International in Greater Phoenix announced the addition of one of the area’s top corporate real estate professionals to the Phoenix office.

Kathleen Foster, senior vice president, joined the Office Properties Solutions Team, partnering with senior vice presidents Phil Breidenbach and Peter Nieman, associate vice president Lindsey Carlson, and marketing coordinator Sandy Machado.

Foster has 20 years of in-depth experience in corporate real estate. During her career, she has completed transactions in excess of 8 MSF in more than 100 markets throughout the U.S. and Canada.

Foster specializes in portfolio management and corporate real estate strategy, working on behalf of clients with significant domestic and global real estate assets. Areas of expertise include strategic planning, transaction implementation, site selection, lease administration, and project and portfolio management.

“We are very pleased to welcome Kathy Foster to Colliers,” said Bob Mulhern, managing director of Colliers. “Kathy is a dedicated and skilled professional with an outstanding record of success in corporate real estate and tenant and landlord representation, and she will provide additional value and opportunities to our clients. Kathy’s expertise, strategic approach and extensive relationships make her a valuable addition to Colliers and to one of our leading office teams.”

Said Foster: “Instrumental to my decision to come to Colliers was Bob Mulhern’s leadership and reputation in the marketplace. I was extremely impressed with Bob, with the culture of collaboration, and the comprehensive platform of services that Colliers offers its clients.

“Joining Colliers provides the opportunity be part of an organization that is dedicated to creating strategic partnerships that will accelerate the success of my clients. It is a privilege to become a member of the experienced, knowledgeable and professional team of Phil Breidenbach, Peter Nieman, Lindsey Carlson and Sandy Machado.”

Prior to joining Colliers, Foster was a principal with CRESA Phoenix for seven years, specializing in corporate real estate. Previously, she managed the corporate real estate portfolio for First Health Group based in Scottsdale for 13 years. The portfolio consisted of more than 2.7 million square feet with an annual operating budget of $33M.

She is a member of Arizona Commercial Real Estate Women (AZCREW) and serves as vice chairperson of the board of Aid to Adoption of Special Kids (aask). Kathy resides in the Desert Ridge community in Phoenix with her husband Jack and their sons, Jack, 14, and Aidan, 11.

 

Ryan Timpani

Ryan Timpani Recognized as 2012 Rising Star By Colliers International

 

Colliers International Senior Associate of Office Properties, Ryan Timpani, was granted the 2012 National Rising Star Award for the U.S.

The Rising Star, which encompasses all brokerage property sectors, is given to one recipient. The award recognizes an up-and-coming talented broker with fewer than two years of experience in full-time brokerage. This distinction is given to a broker who demonstrates outstanding brokerage performance, shows tremendous future promise, is committed to building expertise and clearly exhibits Colliers’ core values.

Timpani emerges from a background in sales, where he received accolades for his superior service working as an associate at Nordstrom, while attending college. He has carried his customer service talents into his professional brokerage career. His client relationship skills earned him the 2011 Rookie of the Year award in Greater Phoenix. Ryan joined Colliers in mid-2010 and became a full-time broker in February 2011.

He was ambitious in his career pursuits long before his career at Colliers. As a first grader he wrote that his life goal was to own his own business; he worked in a brokerage office starting at the age of 16.

“I attribute my tenacity to my dad,” he says.

Growing up in a competitive, sports-focused household, he fondly remembers being pushed to his limits. His strong work ethic, which has permeated throughout his professional career, was instilled in him from a young age.

Timpani also attributes his successes with Colliers to his mentors and team leaders, senior vice presidents Keith Lambeth and Todd Noel. As a senior associate, he is a member of the office properties team of Lambeth, Noel and Shannon O’Keefe, marketing specialist. Their team has ranked as a top five producing team for the past five years.

Timpani exceeds Colliers’ expectations by being proactive and persistent when it comes to sourcing new business, as well as continually demonstrating the drive to be a top broker in the Metro Phoenix marketp. To date, Ryan has successfully negotiated leases in seven states for spaces up to 132,000 SF.

Timpani holds a bachelor of science in business marketing from Arizona State University. He is actively involved in the community and holds leadership roles in NAIOP Developing Leaders and Brokers for Kids, and helps out with a local youth basketball league.

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Colliers Ranked Among Top 3 Global Commercial Real Estate Firms

 

It’s a game of numbers and names, and in a world where transaction volumes often indicate monetary success, one number specifically reflects leadership and excellence in the global commercial real estate industry.

That number is highlighted in the 12th annual Lipsey survey. The Lipsey Co., the industry’s leading training consultancy, has ranked Colliers International among the top global brands in its survey of more than 100,000 industry professionals from commercial property owners, investors and lenders, to brokers and property managers around the globe.

For the fourth year in a row, Colliers International was ranked second out of 25 firms.

“Our ranking in the Lipsey survey reflects the dedication of our professionals to deliver exceptional service to our clients. We continue to attract the best talent in the industry— experts who provide innovative and strategic solutions for our clients,” said Bob Mulhern, Managing Director of Colliers International in Greater Phoenix.

“Our Lipsey ranking reflects more than our yearly number of transactions,” said Doug Frye, global president and CEO of Colliers International. “It displays our dedication to service and expertise – which is at the core of who we are. Our employees around the globe are truly committed to our clients and the success of this firm and we thank them for their exceptional work in the past year.”

Colliers employs about 12,300 professionals in 522 offices in 62 countries worldwide.

Frye added that Colliers International outpaced all of its key competitors in revenue growth — up 18% globally in 2012, he said.

“Our goal is not necessarily to be the biggest firm,” said Dylan Taylor, CEO of Colliers International in the Americas. “Our goal has always been to be the best firm. As we navigate through complex transactions and provide enterprising, strategic solutions, our clients see how well we understand our industry and turn to Colliers for exemplary service.”

 

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Greater Scottsdale Airpark 2030 Report: On the Mend

 

Jim Keeley, SIOR, CCIM, founding partner of Colliers International’s Scottsdale office, released his annual Greater Scottsdale Airpark 2030 Report, which provides a current and historical perspective on economic activity, growth, and trends for the Scottsdale Airpark submarket.

Keeley has tracked and reported on the Airpark since 1981, and he has published the 2010 Report (now renamed the 2030 Report) since 1989.

“The trend we are seeing in the commercial, office and industrial sectors in the Greater Scottsdale Airpark submarket is continued improvement as the corridor is on the mend from the recession,” Keeley said. “In 2012 there were more sales transactions than in the previous two years when the market seemed to be bouncing along the bottom.”

A combination of high tech and residential-related vendors and suppliers are slowly coming back into business due to residential construction increasing.

According to the report, there were very few high priced building or land sales over the last two years, with a majority of building sales in the range of $55 to $75 PSF. Keeley notes that the largest segment of properties was of those sitting idly and attracting little interest, what he coins the “stuff in the middle.”

This segment pushed rental rates down and subsequently decreased the vacancy rate from 29% in 2009 to 18.5% today. Over the past few years this segment has shrunk considerably and rental rates are gradually on the rise.

“The supply of buildings for sale continues to diminish since 2011 and margins are getting skinnier,” Keeley says. “With the economy in the Airpark improving and the market closing rapidly, now is a great time to buy what is still left while it has good value.” It is still a good time to lease Class A office space as rents are finally firming up and vacancies are declining.

Although there is very limited land available in the region for new construction, we have seen some redevelopment and construction starts in 2012. These were led by 240 new apartment units being constructed on the former Barcelona restaurant and nightclub site at 73rd St. and Greenway-Hayden Loop.

In retail, Starbucks and Potbelly Sandwich Shop are under construction on the former Paddy O’ Furniture store site and Restoration Hardware moved into a new 24,000 SF store where the former 6,000 SF Oakville Grocery originally opened.

“Scottsdale Airpark’s long-term future will be robust due to a number of factors, including its prime location, transportation, a cornucopia of 100 plus industries, 34 MSF of core space, quality of life and the Airpark’s safe environment with a lack of crime,”  Keeley said. “Most of the downturn is now in the rearview mirror.”

Statistical highlights and a historical comparison from the 2030 Greater Scottsdale Airpark Report:

>> At year-end 2012, the Airpark had ±52,000 employees, ±34 MSF of buildings and ±2,848 businesses.

>> In 1981, there were 3,000 employees, 1.5 MSF of buildings and 268 companies.

>> At year-end 2012, overall vacancy was approximately 18.5%.

>> In 2011, overall vacancy was approximately 23%.

>> In 2012, there were 76 building sales (41 office, 28 industrial and 7 retail buildings) with a total sales volume of approximately $350M.

>> In 2011, there were 78 building sales (29 office, 38 industrial and 11 retail buildings), with a total sales volume of approximately $181M.

>> In 2012, there were four land sales consisting of ±15.36 acres with a total sales volume of approximately $10.8M for an average of ±$16.25 PSF.

>> In 2011, there were three land sales consisting of ±8.21 acres for with a total sales volume of approximately $4.8M for an average of ±$13.43 PSF.

 

Cindy Cooke & Danny Plapp

Colliers Announces 2012 Top Producers: No. 1, Cindy Cooke; Rookie of the Year, Danny Plapp

Colliers International in Greater Phoenix announced its Top Producers, Top Teams and Rookie of the Year for 2012.

“We are proud to recognize these professionals who have achieved the highest levels of success,” said Bob Mulhern, Managing Director of Colliers.

Cindy Cooke, Executive Vice President of Multi-family Investments, was recognized as the No. 1 Top Producer in Greater Phoenix and the No. 1 Multi-family Producer in the U.S. Cooke has more than 30 years of experience specializing in multi-family investments and leads a six-member team in Phoenix as well as the Western Region team of 10 brokers across Washington, California and Nevada.

“2012 was another great year for us,” Cooke said. “We are grateful for fantastic clients and their repeat and referral business.”

Among her team’s successes was the sale of San Melia, one of the largest multi-family properties in Arizona, for $68.75M. The team’s clients include Investment Property Associates, Aimco, GE Capital, TIAA-CREF, Bridge, Sentential, Summit and Hamilton Zanze & Co.

“Cindy is a leader for Colliers both locally and nationally. She not only achieved the top production ranking for the Greater Phoenix region in 2012, but she also played a key leadership role in accelerating the success of Colliers’ multifamily platform,” Mulhern said.

William Hahn, senior vice president, Jeffrey Sherman, vice president and Trevor Koskovich, vice president, known as Colliers HSK Multi-family, were ranked as the No. 1 Team in Greater Phoenix. Koskovich and Sherman were also ranked the No. 3 Multi-family Producers in the U.S., and Hahn was ranked the No. 6 Multi-family Producer in the U.S. The team specializes in the evaluation, marketing, acquisition and disposition of investment-grade, income-producing multifamily properties and portfolios.

The top producing team completed 34 transactions in 2012 throughout Arizona and the Southwestern U.S.

“We are experiencing a market in transition,” Hahn said. “Our current focus is getting out of the lender-driven REO market and into the more private and institutional capital-driven market.”

Danny Plapp, senior associate, was named the David L. Hallstrom Rookie of the Year for 2012. Plapp joined Colliers in 2012. He specializes in office properties and has quickly grown a promising career.

In his first year with Colliers, Plapp assisted his team in closing more than $40M in lease transactions. He also played a key role in securing the team’s marketing assignment for the 251,000 SF Scottsdale Executive Office Park. Plapp attributes this tremendous success to the strength and cohesiveness of his team including senior vice president, Charles Miscio.

“Charles paved the path and set the foundation for my future success, introducing me to an institutional client base and network of landlords,” Plapp said. “My achievements have certainly been a team effort.”

A complete list of the 2012 top producers and top teams for Colliers International in Greater Phoenix follows:

Top 10 Producers in Greater Phoenix

• Cindy Cooke, Executive Vice President — Multi-family Investments

• Don MacWilliam and Payson MacWilliam, Senior Vice Presidents — Industrial Properties

• Keith Lambeth and Todd Noel, CCIM, Senior Vice Presidents — Office Properties

• Trevor Koskovich and Jeffrey Sherman, Vice Presidents — Multi-family Properties

• Brad Cooke, Vice President — Multi-family Investments

• Bill Hahn, Senior Vice President — Multi-family Properties

• Greg Hopley, Executive Vice President — Office & Industrial Properties

Top 5 Teams in Greater Phoenix

1. William Hahn, senior vice president; Jeffrey Sherman, vice president; Trevor Koskovich, vice president; Arsen Aminov, marketing coordinator; Danyale Breckenridge, research associate — Multi-family Properties

2. Don MacWilliam, senior vice president; Payson MacWilliam, senior vice president; Jimmy Leaf, associate — Industrial Properties

3. Cindy Cooke, executive vice president; Brad Cooke, vice president; Carrie Burton, marketing associate; Dwight Fujimoto, investment analyst; Alex Sampson, research associate — Multi-family Investments

4. Keith Lambeth, senior vice president; Todd Noel, CCIM, senior vice president; Ryan Timpani, senior associate; Shannon O’Keefe, marketing specialist — Office Properties

5. Phillip Breidenbach, SIOR, senior vice president; Peter Nieman, senior vice president; Lindsey Carlson, associate vice president; Sandy Machado, marketing coordinator — Office Properties

Rookie of the Year in Greater Phoenix

• Daniel Plapp, Senior Associate — Office Properties

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Cushman & Wakefield Completes Sale of 131,000 SF Flex/Industrial Building

Crown Realty & Development, represented by Will Strong, senior associate of Cushman & Wakefield, Inc., sold 5115 N. 27th Ave., a 131,000 SF, single-story flex/industrial building in Phoenix for $6.4M.

The buyer was Grand Canyon University, a private institution that will utilize the property for administrative purposes.

The former Honeywell assembly site, which had been acquired by Crown in 2005, comprises 15.03 acres near a full diamond interchange on I-17 and Camelback Rd. The property is situated in close proximity to Grand Canyon University’s existing main campus.

“During our term of ownership of this property, we have enjoyed the chance to work with GCU and to see them grow significantly,” said Rick R. Carpinelli, SVP Acquisition & Development, Crown Realty & Development. “We are pleased that we could work with GCU on the purchase so they can further their expansion. GCU is a great institution for our community and state. We look forward to seeing their expansion into our former property.”

“This industrial market continues to tighten in terms of buildings available for sale,” Strong said. “The Metro Phoenix industrial market fundamentals are starting to improve with 2.8 MSF absorbed year-to-date, lack of supply and increasing values. This ultimately became an opportunity for Crown to sell a well-located property at a good price.”

Todd Noel of Colliers International’s Phoenix office worked on behalf of Grand Canyon University.

Cushman & Wakefield’s 3Q industrial market statistics show investment sales totaling 2.7 MSF across 28 transactions, on par with the previous two quarters. Several tenants are expected to take occupancy in this year’s last quarter, which will add an additional one million square feet of absorption. Steady leasing activity over the previous year helped move vacancy rates downward and continues to increase market rates.

 

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CBRE Completes Office Lease as Mexican Consulate General Relocates Downtown

CBRE leased 24,216 SF of office space at McDowell Corporate Center, a 3-story office building at 320 E. McDowell Rd. The Consulate General of the United Mexican States, which relocated from a building near 15th Ave. and West Camelback Rd., expanded into larger quarters when it occupied McDowell Corporate Plaza this month.

Luke Walker and David Carder of CBRE’s Phoenix office represented the landlord, Abart Properties 26 LLC of Scottsdale in negotiating the 5-year lease agreement. The tenant was represented by Tivon Moffit of Colliers International in Phoenix. The exact financial terms of the transaction were not disclosed.

“Abart Properties Corporation wants to thank and found it was a pleasure working in coordination with professionals that are diligent and dedicated in collaborating with all of the parties; from the initial engagement to the execution of the lease,” said Arthur J. Ferrari III, director of finance at Abart Properties Corporation. “Their persistence, along with direction from the representatives of the Mexican Consulate General, has accommodated and nurtured the foundation for a long-term relationship between both landlord and tenant. We look to reinforce these fruitful bonds for times to come.”

In addition to gaining more office space at McDowell Corporate Plaza, the Mexican Consulate General’s new location places it closer to the Central Business District, containing the District, State and Federal Court Houses and other government agencies.

The move also positions the consulate closer to the Valley Metro Light Rail System. The tenant also benefits from recent building upgrades, including a complete renovation of the common area, new HVAC, electrical and mechanical systems, as well as new landscaping and exterior paint.

The Mexican Consulate General will be the largest tenant at McDowell Corporate Plaza, occupying 70% of the building. The balance of the property remains available for lease.