Tag Archives: Judi Butterworth

Moon Valley Towne Center

Goodwill to open new stores other Velocity Retail transactions

In August, Velocity Retail Group, LLC completed 18 deals totaling nearly 300,000 square feet spanning from Texas to Arizona, Utah and Oregon.  Below is a summary of those transactions.

 

Ahwatukee will soon have a new 22,565 square foot store for Goodwill Industries of Central Arizona.  The retailer will be opening in the Foothills Shopping Center at the northeast corner of Ray Road and 48th Street in Phoenix.  Formerly a Michael’s, the tenant was represented by Velocity Retail Group’s Andy Kroot.

 

Darren Pitts of Velocity Retail Group, and Chris Peters of Capital Pacific in San Francisco represented the seller, J & M Management, LLC in the sale of 10011 Metro Parkway East in Phoenix. The buyer, Tombstone Tactical was represented by Larry Miller of Velocity Retail in the purchase of the 5,425 square foot former Verizon store.  Tombstone Tactical has a location in Chino Valley and is growing their business by opening this second store.

 

Judi Butterworth of Velocity Retail represented the seller, Sooner Frye Price, LLC in the $1.5 million sale of 2.4 acres at the southeast corner of Frye Road and the Loop 101 Freeway in Chandler, AZ.  The buyer will open a Chuck E. Cheese restaurant on the parcel.  The buyer, Melvin Property #3260 LLC currently has 14 restaurants in multiple states.  He was represented by Western Retail Advisors.  The property is adjacent to the Hilton hotel.

 

Moon Valley Towne Center at the southeast corner of Bell Road and 7th Street will soon have two new tenants.  Orange Theory Fitness will be opening a 3,090 square foot location adjacent to Hobby Lobby in October of 2014.  Additionally, Cartridge World will be opening a 1,260 square foot store.  This is a relocation from an existing location.  The Landlord, NorthStar Realty Finance Corp. is represented by John Jackson, Larry Miller and Michael Clark of Velocity Retail Group.

 

Brian Gast of Velocity Retail Group represented the landlord of Scottsdale Fiesta shopping center at the southeast corner of Shea Boulevard and the Loop 101 Freeway in a 3,749 square foot lease to Watercolors High Fashion.  The new store recently opened for business. Danielle Davis of LevRose Real Estate represented the tenant in the transaction.

 

Dave Cheatham of Velocity Retail Group represented Mega Furniture in three separate transactions in San Antonio and Austin, Texas.  Working with Nick Altomare of The Retail Connection in San Antonio, the team leased a 29,487 square foot location at 125 NW Loop 410 in the La Plaza Del Norte shopping Center.  RPAI was the landlord for this 10-year deal.  In a second transaction, Mega Furniture purchased a former K-Mart building located at 3150 Pat Booker Road in San Antonio.  The 72,454 square foot building is located on 11.15 acres.  These stores are expected to open in the next quarter.  In the third transaction in Austin, Texas, Mega Furniture leased a 31,736 square foot building at 3815 Dry Creek Drive in Austin, Texas.  The landlord is Sandalwood Management in this 10-year lease.  Todd Wallace of Jones Lang LaSalle worked with Velocity Retail group on this transaction.  Look for more locations to be announced in the coming months as Mega Furniture expands its Arizona footprint in Texas.

 

Velocity Retail’s Darren Pitts and Chad Moore of Mountain West Retail represented Mattress Firm in a new 4,084 square foot location at 598 W. Main Street in American Fork, Utah. The site was a former Rubio’s.

 

Goodwill Industries of Central Arizona, Inc. was represented by Velocity’s Andy Kroot in a new 25,000 square foot location at the northeast corner of Ellsworth Road and Heritage Square in Queen Creek, AZ.  The Landlord is E.R. 15, LLC.

 

Popeye’s Louisiana Kitchen was represented by Dave Cheatham, Darren Pitts, Michael Clark, and Nick Ault of Velocity Retail Group in the 15-year lease of a parcel that will accommodate a 2,695 square foot freestanding building at The Pavilions at Talking Stick at Indian Bend Road and Loop 101 in Scottsdale, AZ.  The Landlord is De Rito Pavilions 140, LLC.

 

Ashley Furniture Stores will open a 15,505 square foot location in the Cascade Village Shopping Center in Bend, Oregon.  The tenant was represented by Darren Pitts of Velocity Retail Group and Mark New of New & Neville from Portland, Oregon in the 10-year lease transaction.  The store is expected to open this fall.

 

Larry Miller and John Jackson of Velocity Retail Group represented Edward Jones Investments in two separate transactions.  First in a 1,436 square foot lease at Bell Plaza North shopping center located north of the northwest corner of Bell Road and Boswell Road in Sun City, AZ.   This location is expected to open by January 2015.  The second transaction is a 915 square foot location at the southeast corner of Baseline Road and Hawes in Mesa, AZ.  The store is expected to open in October of this year.  Edward Jones continues to reposition their stores into more prominent locations including office buildings.  Look for more transactions in the near future.

 

Andy Kroot of Velocity Retail Group represented Goodwill Industries of Central Arizona in a 25,000 square foot transaction at the southeast corner of 99th Avenue and Lower Buckeye Road in Phoenix, AZ.  The Mack Southwest Corporation is the landlord for this build-to-suit location.

 

Total Sports Therapy leased 3,238 square feet in Lone Mountain Landing at Cave Creek Road and Lone Mountain Road in Cave Creek, AZ.  The Landlord, NorthStar Realty Finance Corp. is represented by John Jackson, Larry Miller and Michael Clark of Velocity Retail Group.  The tenant is expected to open in October of this year.

 

Goodwill Industries of Central Arizona, Inc. is opening a 25,000 square foot location north of the northeast corner of RH Johnson Blvd., and Camino Del Sol in Sun City West, AZ.  Brown Grace 6 Investments, LLC is the landlord for this build-to-suit location.

 

Cocktails & Clothes

Cocktails & Clothes Restocks AWEE Boutique

Looking for a chance to give your “less than loved” clothes a new lease on life? Cocktails & Clothes is the chance to donate new or gently used clothing to the Arizona Women’s Education & Employment (AWEE) free Clothing Boutique for participants to have for job interviews or first week on the job.

Clothes can be dropped off at the annual event tomorrow, March 4, from 4:30 to 7:30 p.m. at the 19th Hole at the Adobe Golf Club at the Arizona Biltmore Resort, 2400 E. Missouri Ave. The event includes a raffle featuring custom-designed gift baskets each valued at $300 or more, a live auction, cocktails and hors d‚oeuvres.

Tickets are $65 each and can be purchased at the door or by contacting Susan Lagasse at susanlagasse@awee.org or by calling (602) 223-4333).

Each year, Cocktails & Clothes provides hundreds of new and gently used professional dresses, suits, slacks, blouses, shoes, briefcases and purses, and slacks, shirts, ties, shoes and sports jackets for women, men and young adults entering or re-entering the workforce.

Sperry Van Ness is the Diamond Sponsor. Sapphire Sponsors are Alliance Bank of Arizona and Avnet. Topaz Sponsor is AmTrust Bank. Emerald Sponsors are DMB and Dunlap & Magee.

The event is organized by the Friends of AWEE. Committee members are Phyllis Dumond, Judi Butterworth, Jami Savage, Kathy Jorgenson, Heather Moos, Nicole Ridberg, Carol Vernon, Sharon Contorno, Judy Jones, Arica Bec, Alison Harris, Roseann Marchett, Joe Hogan, Wendy Carlos, Victoria Benavidez and Shannon Ellermann.

For more information, visit www.awee.org.

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Real Estate Relationships: Importance Of Representation In Tough Marketplace

By Tom Ellis

Businesses thinking of leasing space in Phoenix should have no problem finding a real estate broker to help them select the best site, and negotiate with the landlord on their behalf. But there is one thing the tenant must bring to the table — patience. Brokers who specialize in commercial tenant representation make it clear that site selection and lease negotiation are complex processes that can take several years to bring to fruition.

Real Estate Relationships, Arizona Business Magazine September 2008Retail
For Judi Butterworth, a principal at De Rito Partners and a Phoenix broker specializing in retail tenant representation, it all starts with becoming thoroughly knowledgeable about the client’s business. Then she looks at local geography, the freeway system, traffic patterns and changes in demographics. There are many questions her client must answer: What are the client’s goals? Will the client share space with other retailers, who are the ultimate co-tenants? If the client has existing stores here, will some of them relocate?

Retail leasing is more complicated than office and industrial, considering multiple locations and an out-of-state headquarters often are involved, Butterworth says. Client representatives come to town to look around, including the president.

“Part of what you do as a broker is really a process of elimination,” Butterworth says. “You’re given the criteria and you research all of the available space and decide which ones meet the criteria. That way, when you drive around with the client, you know what the alternatives are.”

Once a location is selected, Butterworth negotiates a letter of intent with the landlord. The letter delineates whether her client accepts the space as is or will make improvements; the money the landlord will allot for construction; the number of days allowed for construction; when the lease starts; and when rent payments commence. The final letter typically is approved by a client committee. Then attorneys for the landlord and Butterworth’s client draw up a lease that can be 60 to 80 pages long. After the lease is signed, Butterworth’s job is done.

Retail, office and industrial clients all must determine how much square footage they need, but that’s where the similarities end, according to Butterworth. Brokers representing industrial clients must consider railroad service, dockside service, ceiling height and freeway access. For office tenants, there are questions about the kind of floor plan that will accommodate all employees, where employees and vendors travel from to get to the building, parking requirements and area amenities.

Office

CB Richard Ellis in Phoenix specializes in office tenant representation. Chuck Nixon, a senior vice president there, says he first helps his client select an architect because changes to the existing space usually are needed. Then he rolls out a six-step process that’s the same for small, medium and large tenants — client needs assessment, market evaluation, landlord solicitation, negotiation, implementation and post-project documentation.

The client’s general criteria are gathered during the needs assessment, and a list of potential buildings is narrowed during the market evaluation as the client’s needs are further refined, Nixon says. Once a short list of buildings is drafted, Nixon sends a request for proposal to each landlord. Nixon and the client evaluate the economics of each Request for Proposal (RFP), and the architect evaluates whether the landlord’s proposal is a good fit.

The client accepts one of the RFPs and Nixon negotiates a letter of intent and then a lease. Nixon and the landlord may negotiate through several lease offers as an array of topics are addressed, including tenant rights to expand and reduce the space, tenant improvements as specified by the architect’s design and rights to terminate and renew the lease.

“Typically, the client is involved (in negotiations) as much as they want to be,” Nixon says.“Some want to be involved in just key decisions. Some want to be involved in all points of discussion.”

Implementation includes construction and final lease documentation that covers such areas as lease term, rent, additional costs (i.e. property taxes and/or maintenance), security deposit, subleasing and dispute resolution. In post-project documentation, Nixon makes sure the client’s move into the space is coordinated and that the client is happy.

Market OpportunitiesArizona Business Magazine, September 2008
Current market conditions offer more opportunities than challenges for tenants, Butterworth and Nixon say. The main challenge is selecting the right building. Butterworth and Nixon make sure they work the opportunities into lease negotiations.

The construction frenzy over the past few years has resulted in an ample supply of retail and office space, and Butterworth and Nixon say vacancy rates have climbed. Consequently, landlords are aggressively pursuing tenants, and brokers can negotiate lower rents or no rent for specific periods of time. Landlords are offering more concessions and are flexible on tenant improvements and parking requirements.

“Clearly, it is a tenant-friendly environment and will be so for the foreseeable future,” Nixon says. “Which is good. One thing you don’t want as a tenant is limited options.”

www.cbre.com/phoenix
www.derito.com