Tag Archives: colliers international

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.

Carleton Club Apartments

Class-B apartment complex sells for $22.25M in Phoenix

Colliers International in Greater Phoenix recently completed the sale of the 436-unit Carleton Club Apartments, a Class B complex in Phoenix, for $22.25 million.

Phoenix-based Bruckal Developments Inc. purchased the complex located at 17425 N. 19th Ave., completed in 1984. The buyer has plans for major renovations in the near future.

Cindy Cooke, senior executive vice president of Colliers International in Greater Phoenix, and Brad Cooke, vice president of Colliers International, served as the brokers for the seller. The Cooke Multifamily Investments team has represented the seller in more than 20 transactions since 2010.

The buyer was self-represented.

“We overcame the challenge of a submarket in the beginning stages of recovery by personally contacting our key relationships and using our extensive databases to strategically seek investors who typically look for value-add properties in recovering markets,” Cindy Cooke said.

The Cooke team has maintained a strong track record of closing 97 percent of their listings over the last 30 years.

San Marin Apartments

Utah investor buys San Marin Apartments

Colliers International in Greater Phoenix recently completed the sale of the 176-unit San Marin Apartments in Tucson.

Chartwell Capital Partners of North Salt Lake, Utah, purchased the complex, located at 5650 S. Park Ave., from Bridge Investment Group Partners of Murray, Utah.

Cindy Cooke, Senior Executive Vice President of Colliers International in Greater Phoenix, and Brad Cooke, Vice President of Colliers International in Greater Phoenix, served as the brokers for the seller. The buyer was self-represented.

The garden-style apartment property, situated on 5.76 acres, was built in 1986 and began renovations in March 2011. Renovations included upgrades to common areas, new equipment for the fitness center, new playground, new barbeque area, exterior paint, landscaping, lighting, signage, pool resurfacing and asphalt repairs. Additionally, approximately 50 units have been upgraded.

“The San Marin Apartments provide a strong investment opportunity by continuing the interior renovation program started by the seller,” Brad Cooke said.

Unit mix is 88 one-bedroom apartments, 56 two-bedroom/one bathroom apartments and 32 two-bedroom/two bathroom apartments.

Scottsdale_AZ

The West’s most developable town

Valley Partnership has announced the topic for its upcoming monthly breakfast on Friday, Aug. 22. This month’s program will feature an update on current real estate conditions in Scottsdale, Ariz. Panelists will discuss what’s been happening in “The West’s Most ‘Western’ Town” as well as future opportunities for the commercial real estate and development community.

The Scottsdale update panel will feature Danielle Casey, economic development director for the City of Scottsdale; Jim Keeley, senior vice president with Colliers International; and Jonathan Keyser, founder of Keyser Co. City of Scottsdale Mayor W.J. “Jim” Lane will also be the featured “Mayor’s Minute” panel and will give a brief update on current development projects within the city.

“The City of Scottsdale is one of the most dynamic centers of economic development within the Valley,” said Richard Hubbard, president and CEO of Valley Partnership. “Scottsdale has proven to be a desirable location for companies looking to locate and/or expand within the Valley, and as the economy continues to improve it is important the commercial real estate and development communities are educated on potential opportunities and challenges that will come from Scottsdale’s business growth.”

In addition to the panel the Community Project Committee will feature a “hands on” display of instruments to be installed in the sensory section at the site of this year’s recipient, Arizona Foundation for the Handicapped. Members may also order engraved bricks.

The Valley Partnership Monthly Breakfast will take place Friday, August 22nd at the Phoenix Country Club located at 2901 North 7th St. in Phoenix. Registration begins at 7 a.m.; program begins at 7:45 a.m. To register, visit www.valleypartnership.org and click on the “Monthly Breakfast” tab.

Crown Castle photo, WEB

Crown Castle leases 70KSF build-to-suit in Chandler

Colliers International in Greater Phoenix has recently completed the long-term lease of a 70,000-square-foot build-to-suit, Class A office property in Chandler.

Crown Castle International, one of the country’s largest independent owners and operators of shared wireless infrastructure, will lease the building on the southeast corner of Germann Road and Stearman Drive in Chandler from developer LGE Design Build of Phoenix.

Keith Lambeth, an executive vice president, Todd Noel, an executive vice president, and Ryan Timpani, an associate vice president, all of Colliers International; served as brokers for the tenant. Together, they form one of the top-producing office property teams in the Phoenix area. They have completed numerous assignments on behalf of local and national clients ranging from land acquisitions, tenant representation, build-to-suit and investment acquisitions and dispositions.

The landlord was self-represented.

“The property was attractive to the tenant because it is located off Loop 202 and within walking distance of 1.2 million square feet of retail. This land offers expansion opportunities for Crown Castle down the road,” Lambeth said.

The build-to-suit is expected to be completed by July 1, 2015.

“Crown Castle actively participated in the design. Next summer, the company will have a Class A building that meets their specific needs and reflects their valued brand,” Timpani said.

Fletcher Heights Marketplace, WEB

Fletcher Heights Marketplace in Peoria goes for $3.15M

Colliers International in Greater Phoenix recently sold the 26,658-square-foot Fletcher Heights Marketplace in Peoria for $3.15 million, or $118 a square foot.

Daniel Ortega, a vice president, and Larry Ortega, an executive vice president; both of Colliers International, represented the seller, LB-UBS 2003-C7 Fletcher Heights Marketplace, LLC, of Phoenix. The buyer, Eleven Investments, LLC, of Fargo, N.D., was self-represented.

The Class B neighborhood retail shopping center, located at 20783 N. 83rd Avenue, is primed for a new start with a 75% occupancy rate.

“Colliers International was selected by the seller because of our past successes in adding value to properties by attaining lessees in order to prepare the retail property for sale,” said Daniel Ortega.

Constructed in 2006, the center was anchored by a chain grocery store, which exited during the Great Recession. Part of the vacant space was converted into a thrift store.

“The loss of the anchor store was a major challenge in retaining tenants as well as adding new tenants to the center,” he said.

Among the new retail tenants are Delex Realty, Planet Beach Spa and Farmers Insurance.

“The area is a stable upper middle class neighborhood with new housing starting back up,” said Daniel Ortega.  “The trade area opened up when the off-ramp at Union Hills became operable, allowing traffic to flow right by the center,” he added.

“The area is making a slow comeback with service type operators trying to find space to service the local neighborhoods. As the economy recovers, this center will again flourish,” he said.

Cave Creek CVS sells for $6.75M

Cassidy Turley reports that Mountain Villas, LLC, has purchased the 13,813 square foot CVS Pharmacy located at 28138 N. Tatum Blvd. in Cave Creek, AZ (85331) for $6.75 million.

Michael Campbell and Ed Colson Jr., CCIM,of Cassidy Turley’s San Diego office represented Mountain Villas LLC. John Wertz of Colliers International represented the seller, Charles W. Hostler Trust.

“We worked tirelessly with our client to satisfy his 1031 exchange and accomplish his investment goals.  We looked at a wide variety of potential deals,including those with credit and non-credit tenants, as well as a variety of geographies and product types.” said Mr. Colson.  “At the end of the day we were able to narrow  the search to a property that fits our client’s risk threshold. With this acquisition, he can also drive to see his new investment anytime.”

The free-standing CVS Pharmacy building, with drive-thru, is ideally located at the signalized intersection of N. Tatum Blvd and E Dynamite Blvd,  CVS has been successfully operating at the site since it was built in 2005 under a long-term triple net (NNN) lease.

Metro Value Add Portfolio, Colliers, WEB

Colliers’ Cooke Team brokers largest multifamily portfolio in Phoenix

The Cooke Multifamily Investments Team at Colliers International in Greater Phoenix completed the sale of a 2,759 unit-multifamily portfolio for $168.5 million. To date, the largest multifamily portfolio closed in Metro Phoenix and it could hold the record for 2014.

The size of this Class A and Class B Value-Add Metro Phoenix Portfolio attracted attention from investors around the world, but it was a local investor that was awarded the deal.  P.B. Bell of Scottsdale partnered with Stonecutter of New York City to purchase the portfolio from Standard Phoenix Fund of Arcadia, Calif.

Cindy Cooke, senior executive vice president of Colliers International, and Brad Cooke, vice president of Colliers International, served as the brokers for the seller. The buyer was self-represented.

“It was P.B. Bell’s in-depth knowledge of the assets and submarkets that helped separate them from the other buyers.  We were impressed with their upfront due diligence and ability to transfer their local knowledge to their New York equity partner.  They executed the transaction smoothly and even removed contingencies a day early,” Cindy Cooke said.

The Cooke Team provided attentive support to buyer and seller to ensure that they felt well informed and cared for.  Delivery of world-class expertise combined with strategic navigation of skills allowed a team approach between all parties for a seamless transaction.

“Having a local company that has been imbedded in the Valley of the Sun since 1976 step up to make their largest acquisition ever shows the strength of the current Phoenix apartment market.  This portfolio of seven properties represented exactly that.  The properties’ strong locations with stable occupancy of 96% set it up for a perfect position for upgrading the interiors and improving the exterior. P.B. Bell intends to use the transaction as a springboard to acquire more product.”  Brad Cooke said.

The Cooke team was hired by Standard Phoenix Fund due to their strong track record of closing portfolios at or above their target prices.  This is the second time the Cooke team has sold these seven assets; the first time as part of a 12-property portfolio in 2007 for $427.5 million, which is still the largest multifamily deal ever in Phoenix.

Five of the properties are located in the highly sought-after Southeast Valley submarket, one is located in the prestigious Camelback Corridor and one is located across from Arizona State University’s West Campus.  The properties:

Alante at the Islands

2222 N. McQueen Road, Chandler

Class A, 320 Units, Built in 1996

Crosswinds

868 S. Arizona Ave., Chandler

Class B, 374 Units, Built in 1985

Laguna Village

102 W. Palomino Drive, Chandler

Class B, 460 Units, Built in 1985

Tuscany Palms

901 S. Country Club Drive, Mesa

Class B, 582 Units, Built in 1986

Whispering Meadows

1050 S. Longmore St., Mesa

Class B, 432 Units, Built in 1979

Sienna Springs

5128 N. 15th St., Phoenix

Class B, 395 Units, Built in 1973

Tela Verde

5020 W. Thunderbird Road, Glendale

Class B, 196 Units, Built in 1984

Colliers, WEB

Colliers International sells Class-B office in Phoenix

Colliers International in Greater Phoenix has recently completed the sale of a Class B office building in Phoenix for $950,000, or $79.40 a square foot.

Phoenix-based John F. Long Properties LLP purchased the building, located at 1118 E. Missouri Ave., from Gillman, Kawecki, McCluskey and Windes Investment Partnership of Phoenix.

Peter Nieman, an executive vice president, Kathy Foster, a senior vice president, and Marcus Muirhead, an associate vice president, all of Colliers International; served as the brokers for the seller.

Nieman and Foster are members of Colliers International’s Office Properties Solutions Group. The team has a diverse base of knowledge and expertise that leads to successful and tailored real estate solutions. Muirhead specializes in office and retail investment properties in the Phoenix area.

Thomas Jacobs of Cassidy Turley served as the broker for the buyer.

The building, encompassing 11,964 square feet, was constructed in 1975.

“The seller occupied and maintained the property, taking exceptional care of it. The building attracted much interest since there is a shortage of owner-user locations that have been well-maintained in that submarket,” Foster said.

Arrowhead Health Centers, Colliers, WEB

Colliers completes $1.9M sale/leaseback for Arrowhead Health Centers in Surprise

Colliers International in Greater Phoenix recently completed a sale/leaseback transaction for Arrowhead Health Centers’ location in Surprise for $1.9 million, or $309 per square foot.

Marc Bonilla

Marc Bonilla

A buyer from Brooklyn, New York, purchased the property, 17061 N. Avenue of the Arts, suite 100, from Scottsdale Office Properties (formed by Arrowhead Health Centers).

Marc Bonilla, vice president of Colliers International’s Scottsdale office, served as the broker for the seller. Bonilla has sold every Arrowhead Health Centers clinic, transacting over $50 million during the last 10+ years.

Bonilla specializes in the sale of income-producing assets. He has extensive experience in the specialized niche of net lease investment programs including sale-leasebacks and triple net leased investment properties.

Marcus & Millichap represented the buyer. The building was constructed in 2008.

Arrowhead Health Centers provides the ultimate healthcare experience in the community. Their multi-specialty team of family physicians, physical therapists, pain management physicians, chiropractors, and massage therapists are all under one roof with seven Valley locations.

“Driving this disposition was another successful collaborative approach which has developed over a decade of working with Arrowhead Health Centers and its partners. I view Arrowhead Health Centers’ principals and partners as my teammates,” Bonilla said. “A synergistic approach has effectively launched and executed a sale/leaseback program that has created value for patients and customers. Arrowhead Health Centers can now save companies significant money on their healthcare costs.”

“Arrowhead Health Centers is the best-in-class healthcare provider. They are fully committed to the patient experience and revolutionizing the typical healthcare model,” he said. “The positive benefits of Arrowhead Health Centers’ success have helped local companies navigate through the ever changing healthcare industry, saving companies significant healthcare costs.”

“We will be expanding Arrowhead Health Centers’ reach into North Scottsdale and downtown Phoenix,” he said.

Fresenius Medical Care Building, Colliers, WEB

Triple-net leased Fresenius Medical Care Building sells for $1.75M

Colliers International in Greater Phoenix has recently completed the sale of the triple net leased Fresenius Medical Care Building in Chandler for $1.725 million, or $232 a square foot.

Prescott-based Cowboy Town, LLC, purchased the building, located at 912 W. Chandler Blvd., from 912 A&D Chandler, LLC, of La Habra, Calif. This facility, used as a dialysis center, serves the Chandler area. Fresenius Medical Care is a global company with more than 3,200 facilities and 53 dialysis centers in Arizona.

Bob Broyles, a senior vice president of Colliers International, served as the exclusive broker for the seller. Broyles is a 32-year veteran of commercial real estate and has been a specialist in NNN leased investment properties for more than 23 years. He offers principals a wealth of experience and knowledge in investment real estate and financing to address their strategic objectives and goals.

Bebe Wright and Sandy Shaffer of Arizona Commercial in Prescott served as brokers for the buyer.

The building, encompassing 7,425 square feet on a 34,848-square-foot lot, was constructed in 2000.

“The property listing had several offers within the first week. In addition, it sold and closed escrow within 45 days of marketing,” Broyles said.

The Offices at Reems in Surprise pic 2, WEB

One Step Beyond leases 12KSF in Surprise

Colliers International in Greater Phoenix recently completed an 11,800-square-foot office lease in Surprise for One Step Beyond, Inc., a Peoria-based day training organization for individuals with developmental disabilities.

One Step Beyond is leasing space at The Offices at Reems, an office condo project. The tenant signed a 10.5 year-lease for two buildings located at 15527 & 15531 N. Reems Road in Surprise. One Step Beyond moved into the first building in July and plans to move into the second in March.

Tyler Smith, a vice president of Colliers International, served as the broker for both the tenant and the landlord, Reems and Greenway, LLC, of Phoenix.

Smith, who has specialized in office properties since 1997, focuses his efforts on the West Valley submarket. He is an established market leader who has consistently ranked among the top-producing brokers throughout his career.

The Class B office condo project was built in 2008 and remodeled in 2014 for tenant improvements.

“I have been working with One Step Beyond for more than 5 years. This location will help the group continue to provide excellent service to special needs individuals throughout the West Valley,” Smith said.

Photo credit CoStar

New City Church buys office shell in downtown Phoenix

Colliers International in Greater Phoenix has recently completed the sale of a Class C office shell in downtown Phoenix for $2.3 million, or $130 a square foot.

Phoenix-based New City Church purchased the building, located at 1300 N. Central Ave., from Drapac Group of Los Angeles.

The New City Church has experienced tremendous growth in the last three years and had outgrown their current location. New City Church was attracted to the property because of its downtown location, light rail access, bike parking and proximity to the downtown arts district.

Larry Ortega, executive vice president of Colliers, served as the broker for the buyer. Ortega specializes in the sale and leasing of retail and commercial properties. He has focused on downtown Phoenix since 1990.

The seller was not represented by a broker.

The building, encompassing 17,692 square feet, was constructed in 1961. New City Church plans to redesign the building.

“This transaction is an example of persistence and creativity coming together to make a deal work for both parties.” Ortega said.

91st Street

Colliers reports two industrial transactions in Scottsdale

$2.9 Million Sale of 7327 E. Tierra Buena Lane in Scottsdale
Colliers International in Greater Phoenix announces the $2.9 million sale of a 21,008-square-foot office/warehouse/flex building at 7327 E. Tierra Buena Lane in Scottsdale. The property was built in 1996.

Henry Mohrschladt of Newport Beach, Calif., purchased the property from TR & RT Properties, Inc. of Scottsdale.

Jim Keeley, founding partner of Colliers International’s Scottsdale office and a senior executive vice president, represented the seller. Darren Tappen of Voit Commercial Services represented the buyer.

$1.45 Million Sale of 16460 N. 91st Street in Scottsdale
Colliers International in Greater Phoenix recently completed the $1.45 million sale of a 10,710-square-foot office/warehouse/flex building at 16460 N. 91st Street in Scottsdale.

Juggernaut Holdings, LLC of Scottsdale has acquired the IDS Building, built in 2004, from LME Asset Development of Scottsdale.

Jim Keeley, founding partner of Colliers International’s Scottsdale office and a senior executive vice president, and Mike Kane, a senior vice president in Colliers International’s Scottsdale office, represented the seller.

Jim Lieberthal with Cutler Commercial represented the buyer in the transaction.

The Villas at Roger Road, Courtesy of Colliers International

Tucson multifamily complex sells for $5.68M

Colliers International in Greater Phoenix recently completed the sale of Villas at Roger Road, a 232-unit Class B apartment building in Tucson, for $5.68 million, or $24,504 per unit.

Equilibrium Villas, LLC, of Washington, D.C., purchased the complex, located at 3985 N. Stone Ave., from Blue Valley Apartments, Inc. of West Palm Beach, Fla.

Bill Hahn, Jeffrey Sherman and Trevor Koskovich, Senior Vice Presidents of Colliers 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.

“Villas at Roger Road presented an excellent opportunity to acquire an investment asset that could quickly appreciate through property repairs and the continued stabilization of income,” Sherman said.

The unit mix includes 88 one-bedroom and 144 two-bedroom/one-bathroom apartments, ranging from 500 square feet to 750 square feet. The building was constructed in 1984.

Rob Martensen Transaction

Colliers completes $5.8M sale of flex industrial buildings

Colliers International in Greater Phoenix recently completed the sale of three showroom/flex industrial buildings in Mesa, Ariz. for $5.8 million, or $61.03 a square foot.

Rob Martensen, Colliers International

Rob Martensen, Colliers International

Tucson-based Holualoa Companies purchased the buildings, located at the Superstition Springs Commerce Center, from AEW Capital Management of Boston, Mass.

Rob Martensen, SIOR, CCIM, vice president of Colliers, served as the broker for the buyer and seller. Martensen is a member of the Society of Industrial and Office Realtors (SIOR) and is a Certified Commercial Investment Member (CCIM) of the Commercial Real Estate Institute. Martensen specializes in industrial sales, leasing and land development.

The buildings, encompassing 95,035 square feet, were constructed in 2001.

“Holualoa hopes to capitalize on the recovering industrial market, specifically in the residential housing construction arena. There are few spaces available in close proximity to the new Eastmark community. Superstition Springs Commerce Center can accommodate contractors and suppliers of home-related products to supply this growing area,” Martensen said.

Kathy Foster, with AASK event participants at Kiwanis Park, Tempe. Photo by Mike Mertes.

After Hours: Kathy Foster

Knowing more about the people we work with is the fun side of business. It helps start conversations and strengthens business relationships. We hope you’ll enjoy learning more about your peers in every issue of AZRE.

Kathy Foster

In the mid-1980s, Kathy Foster moved to Arizona, where she now helps companies solve problems, through creative strategies and proactive plans to support their business. When Foster was younger, she thought she’s be a professional dancer or dance instructor and has always wanted to open a non-competitive dance studio for disabled children. Foster danced with a college troupe into her late 30s and most recently joined the board of Aid to Adoption of Special Kids (AASK), where she serves as the vice chair.

Senior Vice President, Colliers International in Greater Phoenix
Years at Colliers: 1 year at Colliers International (20 years in industry)
Primary responsibilities in this position: Helping companies solve problems, creating strategies and future proactive plans to support their business.

Family: Husband, Jack
Sons: Jack, 15 years old, and Aidan, 12 years old
Pets: Baxter (dog), 5 years old

Born/raised: I was born in Pittsburgh, Penn., and lived in New Jersey and Michigan. I moved to Arizona in the mid-1980s.

Favorites
Sports/teams: Football; Steelers and Cardinals
Music: I love all types of music and variety, depending on my mood. I enjoy everything from top 40, to classical music, to the ‘60s and up! Songwriters from the 1960s are my favorite.
Travel destinations: I would love to go to Egypt someday. For now, I enjoy anything with a beach – Mexico, the Caribbean and Hawaii.
Leisure activities: Contemporary dance, pilates and yoga

What did you think you’d be when you grew up?
I thought I would be a professional dancer or a dance instructor. I always wanted to open a non-competitive dance studio for disabled children. Everyone should have the chance to enjoy the benefits of dancing and performing.

Of what personal or professional accomplishment are you most proud?
Professional: A client recently mentioned he thinks people before profits. I am most proud of having the same high standard of integrity and ethics.
Personal: Although I have always continued to dance, I am proud of performing with a local college in my late thirties. Dancing with women nearly half my age was an accomplishment.

What would people be surprised to know about you?
I spent summers in high school working at my family’s oil change business.

Best business advice you’ve been given?
I had a great mentor early in my career in corporate real estate. He always said spend money like it’s your own and make decisions as you would for yourself.

Regardless of the client, type of business or issue, I always become an extension of the company. I don’t think like a broker. I think like business leaders and put myself in their shoes, always exploring every avenue, not just the easiest one.

Advice you’d share with people early in their real estate career:
Starting out in corporate real estate is a great springboard to brokerage. It gives you the perspective and experience to understand all phases of the real estate process, not just the brokerage piece.

Please tell me about your involvement with (AASK). How long ago did you join and why? How much time do you dedicate “after hours” (outside of work) to AASK?
I joined the board for Aid to Adoption of Special Kids (AASK) two years ago. Currently, I serve as the vice chair. I have a very dear friend who adopted two children through AASK. AASK has always been very close to my heart. Most people have no idea of the growing issue and large number of kids in foster care. More than 15,300 children are in foster care, many in group homes and shelters. AASK is the largest agency in Arizona solely focused on finding families for Arizona’s foster children.

My personal mission is to raise awareness, increasing the number of foster homes and raising money for non-funded programs such as AASK’s mentor and sibling programs. The mission of AASK and its board is to improve the lives of Arizona’s foster children by ensuring that every child has a relationship with someone who cares.

453623347

Vacancy ticks higher as tenant demand patterns shift

Colliers has release its 2014 Medical Office Report for the first quarter. Highlights include:

  • Economic and employment growth slowed in the first quarter and these demand drivers spilled over into the medical office market. Despite the recent slowdown, there are indications that growth should accelerate in the coming quarters, supporting future space demand.
  • Vacancy in the Greater Phoenix medical office market ticked up to 20.4 percent in the first quarter, compared to 19.5 percent at year-end 2013. Negative net absorption of 142,000 square feet was recorded in off-campus buildings, with the Scottsdale submarkets accounting for nearly 85,000 square feet of this total.
  • Vacancy in on-campus medical office buildings was 13.1 percent in the first quarter, slightly higher than the five-year average of 12.4 percent.
  • Sales activity in both traditional medical office buildings and medical office condos has slowed in recent quarters, due in part to a drop-off in distressed properties changing hands. With fewer REO properties selling, prices have ticked higher in both condo and non-condo sales.

Click here to download the full report [.PDF].

Kirk Kuller joins Colliers investment property sales team

Kirk Kuller Joins ColliersColliers International in Greater Phoenix has appointed Kirk Kuller a vice president. Kuller brings 15 years of financial experience into his new position, including the structuring and underwriting of more than $50 billion in transactions.

Kuller joins Colliers’ investment property sales team led by Mindy Korth, recently named the NAIOP Investment Broker of the Year for 2013.

Adding new depth to Korth’s team, Kuller specializes in advising clients about the structuring of large, complicated deals, providing clients with guidance through the financial process and preparing robust financial analyses and market studies for clients’ chief financial officers and other executives.

“Kirk’s financial acumen and leadership in providing solutions for elaborate projects will propel Mindy Korth’s first-rate team to an even higher level,” said Bob Mulhern, managing director of Colliers International in Greater Phoenix.

Kuller previously served as the managing director of CBRE’s Financial Consulting Group for the Southwest region where he assisted in the financial structuring and underwriting of more than 350 million square feet of office, retail, industrial and multifamily housing projects with a total value of more than $50 billion.

In addition to his capital markets experience, Kirk has an extensive understanding of corporate real estate and tenant advisory services. His consultative approach enables stakeholders to make fully informed real estate decisions.

“Kirk’s strategic planning capabilities and personal knowledge of the intricacies of complicated underwriting processes is unmatched in the market today,” Korth said.

Kuller is a member of NAIOP and a licensed Arizona real estate professional. He earned a bachelor’s degree in business administration from the University of North Dakota.

“I am excited to join Colliers International and assist Mindy Korth in streamlining the financial structuring and underwriting process for clients, enabling them to make informed and timely decisions to accelerate their business,” Kuller said.

3350 E. Hemisphere Loop, Tucson, Ariz.

Colliers completes $18.95M sale in Tucson

Colliers International in Greater Phoenix recently completed the sale of a 143,650-square-foot Class A office building for $18.95 million, or $131.95 a square foot.

W. P. Carey Inc. on behalf of CPA®:17 – Global, one of its managed REITs, purchased the building, which is leased to a single tenant. The seller was Summit Properties of Seattle.

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 transaction is the largest office sale in Tucson based on square footage since January of 2008 and involves one of the highest quality assets in the market,” Moffitt said.

“This sale shows demand for assets in the Tucson market that have investment-grade tenants,” Bauman said.

Constructed in 2002, the building is located at 3350 E. Hemisphere Loop in Tucson and is situated on 16 acres at the Tucson International Business Center.

“The buyer acquired this Class A office building well below replacement cost with a high-quality tenant in place,” Glassmoyer said.

Gino Sabatini, W. P. Carey Managing Director and Co-Head of Global Investments, noted, “The quality of the tenant and the criticality of the asset to their operations made this an attractive investment for W. P. Carey. The building’s size along with significant improvements made by the tenant are key factors in meeting the tenant’s unique requirements and consequently enhanced the investment value of the asset for us.”

Lease at Diablo Technology Center

Colliers Completes 247,000 SF of New Leases at Diablo Technology Park

Colliers International in Greater Phoenix has completed 247,000 square feet of new leases at Diablo Technology Center in the last year and is currently marketing additional space there for a data center and also a speculative suite.

The leases at 2900 S. Diablo Way in Tempe include 110,000 square feet for Computershare, 71,000 square feet for Xerox and 66,000 square feet for Emerson, a manufacturing and technology company.

Charles Miscio, an executive vice president at Colliers International, and Danny Plapp, a senior associate with Colliers International, served as brokers for the landlords, Walton Street Capital of Chicago and The Muller Company of Irvine, Calif.

Computershare is the most recent transaction at Diablo Technology Center. Dan Dobric of Newmark Grubb Knight Frank served as Computershare’s broker.

In the other transactions, Emerson was not represented by a broker while JLL served as Xerox’s broker.

Motorola Solutions is the Diablo Technology Center’s original tenant, dating back 20 years, and continues to operate on a long-term lease.

Remaining in the project is 38,000 square feet of repurposed space that Colliers International is marketing to data centers and also an 18,000-square-foot speculative suite.

The Diablo Technology Center has a new 13,000-square-foot fitness center that serves as an amenity for all tenants. In addition, negotiations are underway for a food operator, with 1,500 to 2,000 employees on campus, to serve on-site breakfast and lunch and offer catering services.

“The building’s convenient location near Interstate 10, large campus environment with amenities and ample parking attracted the tenants,” Miscio said. “Success of the project is due to strong institutional ownership through The Muller Company and Walton Street Capital.”

“In addition, Diablo Technology Park’s proximity to high-quality employees in Tempe and the landlords’ involvement helped to drive the successful transactions,” Plapp said.

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