Cushman & Wakefield
Years with company: 2
Years as ICSC member: 9
What is the biggest issue facing shopping center real estate?
We’ve seen a few larger tenants close or downsize their business due to the competition of internet sales and a decrease in consumer spending. This left many big boxes available with little business options to backfill the spaces.
How have consumer attitudes affected the retail commercial real estate market?
Consumers have moved to online shopping, which is one of the reasons for the downsize in business size as well as store closings. Locally, we’ve seen an increase in adaptive re-use projects due to the consumers moving to in-fill areas and wanting a unique experience while shopping/dining.
What was your most significant deal in 2013?
The deals we’re doing in Fiesta Mall. It’s significant because I’ve never leased a mall before…leasing mall space during the holiday season has been a great learning experience.
Griffin Capital Essential Asset REIT of El Segundo, Calif., paid $54.5M for a two-building office campus in Northwest Phoenix, according to Chris Toci, Executive Director with Cushman & Wakefield of Arizona, Inc.
The 232,648 SF buildings at 25500 and 25600 Norterra Parkway are fully occupied by a Fortune 500 company. The two buildings are part of a 573-acre master plan campus, adjacent to the USAA Phoenix Campus.
Located along Interstate 17 at Happy Valley Road, the property is within the Deer Valley submarket, which houses more Fortune 500 companies than any other area of Metro Phoenix.
“This is the second large acquisition in Phoenix for Griffin Capital in recent months,” Toci said. “The REIT acquired a sizable AVNET building in Chandler earlier this spring. These assets provide the buyer with incredibly strong tenants in large facilities with long-term occupancy plans. As our market rebounds from recession conditions, these assets will surely provide impressive appreciation for the investors.”
The Corporate Campus at Norterra also benefits from surrounding retail amenities offered at Shops at Norterra and Happy Valley Towne Center. This amenity base provides abundant retail, entertainment and dining options.
Griffin Capital Essential Asset Reit purchased the property from an affiliate of USAA Real Estate Company. Toci represented the seller in taking the asset to market and successfully procured Griffin Capital as a buyer.
Toci, Chad Littell and Tim Whittemore of Cushman & Wakefield of Arizona, Inc. handled the transaction, in conjunction with Mike Beall of Cassidy Turley in Phoenix.
Cushman & Wakefield of Arizona announced the sale of 6700 W. Morales Place in Chandler, an industrial facility that houses Avnet Global Solutions. The purchase price was approximately $32.5M.
Cushman & Wakefield Executive Director Christopher E. Toci represented the seller, Fort Properties of Los Angeles and procured the buyer, Griffin Capital Essential Asset REIT of El Segundo, Calif.
The 222,086 SF building houses light assembly and integration processes for Avnet, one of the largest distributors of electronic components and technology. Avnet, Inc. is headquartered in Metro Phoenix and operates several facilities throughout the city.
The property was a build-to-suit project constructed by Ryan Companies US in 2008. Avnet signed a 10-year lease for the property at the time of the building’s completion. Ryan Companies sold the project to Fort Properties, Inc. of Los Angeles in July 2008.
Griffin Capital Essential Asset REIT, affiliated with Griffin Capital Corp., made the purchase with AVNET’s current lease extending until April 30, 2018.
“This has been a unique sale, involving investment complexities not typically experienced in simple transactions,” Toci said. “This involved converting multiple ownership shares into future investment vehicles, while certain shareholders liquidated with cash. Both entities benefited from this sale with Griffin acquiring a well-designed, newer building that houses a very committed, strong credit tenant.”
Cushman & Wakefield announced Larry Downey has been named Vice Chairman, a title reserved for an elite few throughout the firm’s worldwide offices.
The distinction marks the first time in the 25-year history of the company’s Phoenix office that an individual has been assigned that designation.
“The Vice Chairman title honors Cushman & Wakefield professionals who stand out as top performers, both in production and fulfilling the core values of our firm,” says Tom Johnston, senior managing director of Cushman & Wakefield of Arizona, Inc.
“In order to be considered for this distinction, professionals must not only be perennial top producers, but exhibit leadership, a genuine commitment to collaboration, mentorship of our future leaders, exemplary client reviews, and a strong history of dedication to charitable causes. Over the years, Larry has excelled in each category and elevated the importance of the Phoenix market to the firm.”
Larry Downey is a 28-year veteran of the commercial real estate industry. He represents both tenants and building owners.