Tag Archives: Lee & Associates

Superstition Commerce Park, Courtesy of Cassidy Turley

Verde Investments buys Superstition Commerce Park

Cassidy Turley has announced the sale of Superstition Commerce Park, a 15.97-acre industrial project west of the northwest corner of U.S. Highway 60 and Sossaman Road. Phoenix-based Verde Investments, Inc. purchased the property for $8.8 million from Delta SCP, LLC. The buyer is an owner/user and plans to occupy the project.

Cassidy Turley Executive Managing Directors Andy Markham, SIOR, and Mike Haenel and Vice President Will Strong negotiated the transaction on behalf of the seller. Lee & Associates represented the buyer.

Superstition Commerce Park includes two existing buildings and ±5.49 acres of fully improved land for future expansion. The existing buildings are a ±49,438 square foot back office building at 7457 East Hampton Avenue and a ±57,793 square foot flex/industrial building at 7465 East Hampton Avenue.

Superstition Springs Business Park

Superstition Springs Business Park trades for $13.98M

Lee & Associates is pleased to announce the sale of the two-building Superstition Springs Business Park at 7307 and 7427 E. Hampton Ave. in Mesa for $13,985,000 or $137.90 per SF. Total SF for the project was 101,411 SF. The transaction closed on September 12.

Lee & Associates Arizona brokers facilitated both sides of the deal. The seller, Hampton/Mesa, LLC was represented by principals Pat Dempsey, Jan Fincham, Chris McClurg and Matt Fredrick. The buyer, Allred Hampton DE, LLC of San Diego, Calif., was represented by principals Stein Koss, SIOR and Tom Louer, SIOR.

The two-building, single story fl ex industrial business park sold with an occupancy of 91.5%. The buildings were constructed in 1999 and in 2007. The buildings feature clear heights of 18’-28’, fi ber optics and 8:1,000 parking ratio. Major tenants include GC Services and Norwegian Cruise Lines.

The property is just north of the Superstition Springs Mall and along side the U.S. 60 (Superstition Freeway).

Gold Canyon Candles signs lease at 6205 S. Arizona Ave., in Chandler, Ariz.

Gold Canyon Candles signs 3-year lease in Chandler

An Arizona-based company signed a 36-month lease for 42,000 SF at the Gold Canyon Candles Building at 6205 S. Arizona Ave. in Chandler, Ariz.

Lee & Associates principals TJ Swearengin, Stein Koss, SIOR and Tom Louer, SIOR, represented the landlord, Gold Canyon Candles, which occupies a majority portion of the 212,070 SF warehouse building. Andy Cloud with Cassidy Turley represented the tenant, Barlow Company Inc. of Tolleson, Ariz.

The property features the original 122,366 SF with an additional 99,704 SF addition added in 2008. The warehouse building is situated on 19.81 acres near the intersection of Riggs Rd. and Arizona Ave. in Chandler and is close to I-10.

Canal Crossing

Auto aftermarket company signs 109KSF lease in Phoenix

A leading auto aftermarket company has signed a 10-year + lease for 109,060 SF at Canal Crossing Logistics Center at 5670 S. 32nd St. in Phoenix. The project is currently under construction.

Lee & Associates principals Jeff Conrad and Allen Lowe represented the landlord, Conor Commercial Real Estate (a real estate development and investment arm of The McShane Companies) and Globe Corporation in this transaction. Mike Parker and Evan Koplan of CBRE along with Jacob Bobek of Avison Young represented the tenant, LKQ Corporation. “We are excited to have secured LKQ as the anchor tenant for Canal Crossing Logistics Center. Landing a commitment from LKQ, a Fortune 500 company, before construction had even begun, speaks to the projects’ strategic central location and modern, functional design,” said Conrad.

LKQ Corporation is a leading international provider of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks and recreational and performance vehicles. The company will occupy 70% of the 155,351 SF building.

As developed, Canal Crossing Logistics Center is an industrial building currently scheduled to be delivered in February 2015. Conrad and Lowe are marketing the remaining 46,054 SF that remains available. “The Airport submarket has been thirsty for new Class A distribution product to choose from. This deal further substantiates that momentum,” Conrad added.

The building features 30’ clear height, two drive-ins and ESFR sprinklers. The project sits on 10.09 acres and is located just south of Phoenix Sky Harbor International Airport.

Lee & associates industrial aerial, web

11.58-acre, SW Phoenix industrial facility sold for $2.93M

Four buildings totaling 18,496 SF on 11.58 acres of land at 8164 W. Buckeye Rd. in Phoenix, has sold for $2,925,000.

The transaction was recorded on September 8. Lee & Associates principals Matt Hobaica, Allen Lowe and TJ Swearengin negotiated on behalf of the owner, MidFirst Bank. Hobaica secured the buyer, EMC Holdings, LLC of Phoenix which will use the property for their truck transportation business.

The property located at 83rd Ave. and Buckeye Rd. is currently being used as a trucking facility and features heavy industrial (I-2) zoning and multiple service bays. The site is fully-fenced with rolling gates and has a 2-acre, hard corner parcel within the property that can be sold or leased for a retail pad opportunity.

317 S. 48th St, Lee Associates, WEB

Road Machinery buys 113KSF warehouse in Phoenix

A Phoenix-based company bought a 113,827 SF industrial warehouse facility at 317 S. 48th St. in Phoenix for $9,200,000 or $80.82 per SF. The transaction closed on Aug. 22.

 

Lee & Associates Principal Ken McQueen represented the buyer, Road Machinery, LLC. The seller was Verde Investments, Inc. of Phoenix.

 

The building, which sits on just over 12 acres, was built as a Costco retail warehouse store in 1990. It features, 24’ clear height ceilings, six, 8’ x 12’ exterior loading docks and abundant parking. It also enjoys freeway exposure from the Hohokam Expressway (SR-143) and proximity to the Red Mountain Freeway (Loop 202) and Phoenix Sky Harbor International Airport.

 

Road Machinery sells and services construction and mining heavy equipment and has been in the Valley since 1955. It will be consolidating its operations from three other Valley locations into the new headquarters. The Phoenix-based company has other locations throughout California, New Mexico, Texas and Mexico.

1800 S. Price, Lee Associates, WEB

Calif. investment firm takes Chandler Iridium facility for $12.7M

A 69,429 SF fl ex manufacturing facility and an adjacent 2.97 AC parcel at 1800 S. Price Rd. in Chandler has been sold for $12.65M. The building is fully-leased to Iridium Communications with an estimated 10 years remaining on their lease.

Cohen Asset Management, Inc., a California-based private real estate investment fi rm purchased the building from Abart Properties Corp. of Scottsdale. Lee & Associates Arizona Principals Rick Lee and Andy Ogan represented Cohen. Bret Angner with Nova Management represented Abart in the transaction.

The building is located in one of the Valley’s best commercial real estate areas. Chandler’s Price Corridor is home to notable companies such as Intel Corp., Motorola, PayPal, Orbital Sciences, eBay, Amkor Electronics, Charles Shwab and General Motors. The area is served by the Loop 101 and Loop 202 freeways with easy access to the entire Valley.

Iridium Communications, based in McLean, Virginia, is a mobile satellite communications company providing voice and data solutions worldwide. It is the only company of its kind that spans the entire globe.

Bella View Apartments

Central Phoenix apartment complex trades in $12.5M investment deal

A 355-unit, central Phoenix apartment community at 2912 E. Indian School Rd., Phoenix, sold for $12,500,000. The price calculates to $35,211 per door. The transaction closed this past July 29.

Lee & Associates Principal Todd Braun and associate Will Barnard represented the buyer, SPL Real Estate & Management Co. of Denver. Karl Abert of Newmark Grubb Knight Frank represented the seller, Bella View Apartments, LLC of Scottsdale.

Bella View Apartments, built in 1979, is situated on 7.92 acres. It features four, three-story buildings of studio and one bedroom units. The community features four pools, spa, tennis and basketball courts, picnic areas with BBQs and laundry facilities.

“BellaView Apartments LLC did an excellent job of repositioning this property over the last few years. When they acquired Bella View in 2011 (then called Brandywood) from an out-of-state lender, the community had signifi cant vacancy and deferred maintenance,” Braun said.

“The new owner, SPL Management, has an exciting plan to further enhance the asset to attract higher demographic tenants. They will be upgrading both the exterior design and amenities as well as elevating the interior features to a level that will compete with many of the luxury communities in the area. SPL was attracted to the property due to its compelling location; close to the Camelback Corridor, Biltmore Fashion Park and immediately next to a Sprout’s-anchored shopping center. SPL has renamed the apartment community The Standard at 29th,” Braun added.

Lincoln Plaza 2, WEB

Lincoln Plaza Shopping Center sells for $25M

Lincoln Plaza Shopping Center, located on the SWC of Scottsdale Rd. and Lincoln Dr. in Scottsdale, was sold to an investment group for $25 million or $330 per SF. AJ’s Fine Foods supermarket anchors this premier retail center that is poised for future redevelopment.

Lee & Associates Fincham/Dempsey Investment Team, led by principals Pat Dempsey and Jan Fincham, facilitated the transaction on behalf of both the buyer, RN Properties South Mountain, LLC. of Phoenix and the seller, Lincoln Plaza Limited Liability Co. of Scottsdale.

RN Properties purchased the property utilizing a 1031 Exchange after selling South Mountain Crossing Shopping Center in Phoenix back in June. Fincham and Dempsey represented RN Properties on that transaction as well. The sale of Lincoln Plaza completes a trifecta of deals brokered by Fincham/Dempsey of $75 million in the past 18 months at the SWC of Lincoln Dr. and Scottsdale Rd. that includes the sale of The Borgata, Lincoln Village and now Lincoln Plaza.

“The future potential for this property is very strong due it’s location and appeal to tenants seeking Arizona’s most affluent demographic,” said Dempsey.

The 75,744 SF luxury shopping center includes the aforementioned AJ’s Fine Foods and Scottsdale Marketplace as well as other high-end retail stores. It is surrounded by established shopping destinations, resort and entertainment venues close by.

SEC Germann and Stearman

Sought-after parcel in First Chandler Business Park sells for $2.2M

An 8.56 acre commercial parcel at the SEC of Germann and Stearman Roads sold for $2,221,000 or $5.95 per square foot.

The fully-improved parcel is located within First Chandler Business Park and will be the future home of Crown Castle, a wireless infrastructure provider. Plans call for the construction of a 70,000 SF built-to-suit office building. LGE Design Build will be the developer.

Lee & Associates Arizona principals Ken McQueen and Chris McClurg represented the land owner, Vintage Farms. The buyer MDB Chandler, LLC was represented by Colliers International. The sale marks the second land sale within First Chandler Business Park in the past month, both of which will have industrial developments under construction by year’s end. This activity is complimented by an already under construction, 65,000 SF build-to-suit
project at the park.

Overall, the hot Chandler Airport area is seeing strong activity with new projects moving forward. A FedEx facility will be occupying a 48-acre site within the submarket. In total, there will be an additional 530,000 SF of various industrial product type added to the market in the coming year. There is also high demand for new offi ce product with several new projects to be developed in the area.

SkySong III

Online advertising co-op signs lease at SkySong 3

An advertising innovator changing the way companies advertise online will set up shop at SkySong 3 early next year.

The company, adhesive.co, is relocating from east Indian School Road and will begin its five-year lease at SkySong on January 1, 2015. The layout of the space will be in line with the online ad company’s philosophy of a creative and collaborative environment.

The performance display online advertising company—where they like to say “the geeks are in charge”—helps drive incremental business for clients and is regarded as an industry leader with a fresh approach to online advertising. The adhesive team turns pages of code into advertising solutions for advertisers and publishers.

With the leasing agreement, adhesive.co’s presence at SkySong will help enhance its brand and a perfect fit for its collaborative environment.

“The innovative environment at SkySong will become even more dynamic with the addition of adhesive,” said Sharon Harper, President & CEO of Plaza Companies, the developer of the project. “They are online ad innovators and model collaborators who represent the best in entrepreneurial striving. We are thrilled they decided to come to SkySong, where their unique view of the world will be welcomed with open arms.”

Chad Little, one of the adhesive.co founders alongside Patrick Schwind, said: “Serial entrepreneurialism needs the right place to grow and prosper. Fortunately for Patrick and I, and our clients, we have found that place—SkySong. It’s the perfect fit for our approach, for who we are and for what adhesive is all about. We can’t wait to move in and meet our new neighbors and potential collaborators.”

The addition of adhesive.co is the latest addition to the growing SkySong project, which recently saw the completion of the SkySong Apartments and is nearing the completion of SkySong 3, the third office building at the property. With the adhesive.co lease, SkySong 3 is now at 88 percent leasing occupancy even before opening its doors. Leasing is currently ongoing for SkySong 4, the next office building at the project, with construction anticipated to begin by the end of 2014.

Mark Seale of Cassidy Turley was the leasing agent handling the transaction for adhesive.co. The Lee & Associates team of Craig Coppola, Andrew Cheney and Gregg Kafka represented the SkySong ownership group.

SkySong, the ASU Scottsdale Innovation Center is a home to a global business community that links technology, entrepreneurship, innovation, and education to position ASU and Greater Phoenix as global leaders of the knowledge economy.

SkySong is a 42-acre mixed use development designed to:

• Create an ecology of collaboration and innovation among high-profile technology enterprises and related researchers;
• Advance global business objectives of on-site enterprises;
• Raise Arizona’s profile as a global center of innovation through co-location of ASU’s strategic global partners; and
• Create a unique regional economic and social asset.

Companies located at SkySong enjoy a special relationship with Arizona State University, which has more than 73,000 students at four metropolitan Phoenix campuses. Its campus in Tempe is the single largest campus in the U.S., and is located less than three miles from SkySong.

In addition to locating its own innovative research units at the center, ASU provides tenants with direct access to relevant research, educational opportunities and cultural events on its campuses. Through ASU’s on-site operations, tenant companies have a single point of contact for introductions to researchers, faculty and programs to address their specific needs.

609 W. Knox, WEB

Lee & Associates reports two industrial transactions in Tempe

59,375 SF Manufacturing Building Sells for $2.4M
A Tempe manufacturing building at 1531 W. 17th St. in Tempe, sold for $2.4M. The 59,275 SF facility brought a price SF of $40.42. The transaction was completed on June 26.

Lee & Associates principals, Matt Hobaica and Matt McDougall represented the seller, JCS, LLC of Tempe. The facility was the former home of All Pro Industrial, LLC. Paul Timm of Trust Realty Advisors represented the buyer, Lexkel, Inc. of Mesa, AZ.

The 1981-built building sits on 3 acres and features heavy power, a fenced yard, natural gas, A/C and Evaporative production areas and four grade level loading doors. It is located just east of the Interstate 10 and Broadway Rd. curve and is close to Phoenix Sky Harbor International Airport.

18,730 SF Manufacturing Facility Trades for $2.15M
An 18,730 SF freestanding manufacturing facility at 609 W. Knox Rd. in Tempe, sold for $2.15M or $114.79 per SF. The sale closed on July 7th on an eleven day escrow.

Lee & Associates Arizona Principals represented both sides of the transaction. Stein Koss and Tom Louer represented the buyer, Broadway-Genesis, LLC of Tustin, CA while Ken McQueen, Principal, represented the seller, Fleet Wing Holdings, LLC of Tempe. The building previously was headquarters for Spectrum Aerospace.

The transaction was a 1031 exchange for the buyer and represented an 8.15% cap rate on a seven year sale/leaseback.

Built in 2006, the 2-story, single tenant building features 4,000 SF of office and two drive-in doors. The facility sits on 1.14 acres in South Tempe off of Kyrene Rd. between Warner and Ray roads and is close to Interstate 10.

South Mountain Crossing, WEB

South Mountain Crossing trades for $11M cash, value-add deal

The South Mountain Crossing shopping center at 3636 W. Southern Ave. in Phoenix, sold for $11,172,825, or $84 per square foot in an all cash, value add investment sale. The sale closed on June 20.

The transaction includes the 132,314 SF shopping center space, four developable pads and a 6.6-acre parcel for future retail development.

Lee & Associates Arizona Fincham/Dempsey Investment Team, led by principals Jan Fincham and Pat Dempsey, facilitated the transaction on behalf of both the owner, RN South Mountain Properties, LLC and the buyer, South Mountain Retail, LLC.

RN South Mountain Properties, LLC originally purchased the property in February 2012. At the time, the property was a failed development project that included what was to be a Mervyn’sanchored shopping center. However, Mervyn’s declared bankruptcy and the project failed. RN properties back-fi lled the former Mervyn’s building with a Goodwill store and a Cal Ranch Store, a 20-store ranch and home chain from Boise, Idaho. In addition, the RN properties group recently negotiated a to-be-built McDonald’s on a ground lease on the hard corner as well as a new Filiberto’s restaurant.

Built in 2007, the shopping center is nearly 80 percent occupied and has the additional 6.6 acres of excess land which is entitled for an additional 61,788 SF of building space. The entire property sits on 25.6 acres. The center is located in the dynamic Laveen area of Southwest Phoenix and is bounded by major arterial corridors such as Southern Ave., 35th Ave. and is close to Interstate 10.

8201 S. 48th St, WEB

Precision Installation buys 45KSF Phoenix warehouse

Precision Installation, Inc., a local commercial furniture and equipment installer, has purchased a 45,307 SF warehouse property at 8201 S. 48th St., Phoenix for $2.98M or $65.66 per SF. They will relocate their corporate headquarters from their current Mesa, Arizona location.

Rick Robertson, Lee & Associates

Rick Robertson, Lee & Associates

 

Lee & Associates principals Rick Robertson and Scott Smith brokered the transaction on behalf of the seller, Jack Berg Family, LP of Santa Barbara, California. The buyer was represented by Clint and Blake Hardison of Keyser Corporation. The building was purchased using an SBA loan from Wells Fargo Bank.

 

“The transaction was a win-win opportunity for both buyer and seller and it offers the building a new lease on life after being vacant for over a year,” said Robertson.

Scott Smith, Lee & Associates

Scott Smith, Lee & Associates

The building, built by Sun State in 1998, sits on 2.65 acres, has 6,800 SF of office and 38,500 SF of evap-cooled warehouse space. It features 24-foot clear height with storage racking, five dock high doors and one grade level door. The property is located in the Pointe South Mountain Business Park and is close to I-10, US 60 and Phoenix Sky
Harbor International Airport.

PioneerPackaging, WEB

Masco Corporation leases 25KSF in Phoenix

Cassidy Turley announced that it completed a lease of 25,002 SF for Service Partners Supply, LLC at Pioneer Packaging Center, 2440 S. 8th Pl., Phoenix.
Senior Vice President Bruce Calfee and Vice President Josh Wyss of Cassidy Turley’s Industrial Group represented the landlord, Phoenix-based, 20 Mule Team Holdings LLC while Jeff Conrad of Lee & Associates represented the tenant.
Service Partners Supply is the largest distributor of residential fiberglass insulation and related contractor accessories in North America. Through its network of over 50 distribution centers, the company supplies insulation, insulation accessories, fireplaces, gutters, roofing, drywall, acoustical material and other building products to thousands of contractors and retailers nationwide. Service Partners Supply is a subsidiary of Masco Corporation MAS (NYSE) one of the world’s largest manufacturers of brand- name products for the home improvement and new home construction markets.

Built in 1997, Pioneer Packaging Center is a ±50,474 square foot, industrial warehouse project. The property is centrally located in Phoenix near a full-diamond interchange at 7th Street and the I-17 Freeway. Service Partners Supply plans to use the newly leased space as a distribution center supporting the Phoenix metro area. The transaction brings Pioneer Packaging Center to 100% occupancy.

4250 E. Broadway

Forever Nutraceutical Expands to 38,500 SF

Forever Nutraceutical, LLC, a supplement products supplier has paid $1.82 million for a 38,500 SF manufacturing facility at 4250 E. Broadway Rd. in Phoenix, just one block from their current production facility.

Ken McQueen, Lee & Associates

Ken McQueen, Lee & Associates

Lee & Associates Principal Ken McQueen negotiated on behalf of Forever Nutraceutical. The seller, Sorenson Group Management of Salt Lake City, UT was represented by Newmark Grubb Knight Frank.

McQueen had once sold the building for $2.15 million in 2006 that was eventually given back to the bank. Sorenson Group subsequently purchased the note along with other bad debt. The building, renovated in 2011, has remained vacant for the past seven years. Forever Nutraceutical plans to use the facility for production and distribution of nutritional supplements and other health-related products.

Built in 1976, the property sits on 1.79 acres and features a remodeled exterior, new parking lot, fenced yard and upgraded landscaping. It is located close to Interstate 10, Phoenix Sky Harbor International Airport, Metro Light Rail and is directly across the street from Cotton Center.

Linsalata Airpark Parcel

Runway parcel in Scottsdale Airpark sells for $8.3M

Scottsdale Airpark’s largest commercial land parcel on the runway, at 9.54 acres, sells to a local investment company for $8,325,000 or $20.03 per square foot.

Mark Linsalata

Mark Linsalata

Mark Linsalata, Bill Blake and Fred Darche, principals with Lee & Associates represented the seller, Phoenix Dragon FEI, LLC of Scottsdale. Linsalata represented the buyer, Boeing V, LLC, a private investment entity in Phoenix.

The 415,562 SF parcel was the largest remaining commercial parcel will runway access for sale in the Airpark. This highly sought after parcel on the south side of the airport’s runway, holds strong investment potential for future aviation and various commercial uses.

Scottsdale Airpark is one of the state’s largest employment core’s with close to 50,000 jobs within its boundaries. The area is strategically located in North Scottsdale and is surrounded by world class shopping, entertainment, recreational and hospitality venues.

The Airpark is surrounded by easy access to top transportation corridors such as the Loop 101, Scottsdale and Hayden roads and Frank Lloyd Wright Blvd.

Talavi Corporate Center, WEB

California Casualty renews 6-year, 27,750 SF office lease at Talavi

California Casualty Insurance Co. has renewed its 27,750 SF offi ce lease for a 6-year term at Talavi Corporate Center, 5651 W. Talavi Blvd. in Glendale, Ariz.

Craig Coppola and Andrew Cheney, principals with Lee & Associates Arizona negotiated on behalf of California Casualty. Ashley Brooks, Jr. of CBRE represented the landlord, Regent Properties, Inc. of Los Angeles. Coppola originally brought California Casualty to the building in 2004.

During lease negotiations, the owner, CW Capital Asset Management sold the property to Regent Properties who was successful in retaining the strong anchor tenant.

“We were able to help California Casualty to capitalize on the competitive market in the West Valley. All parties were pleased with the win-win transaction,” said Cheney.

Screen shot 2014-04-14 at 10.12.40 AM

113,880 SF industrial showroom project to break ground in May in Deer Valley

The 17/Union Hills Business Center, a two-building, 113,880 SF industrial and showroom project is expected to break ground May 2014 at 2350-2400 West Union Hills Drive in Phoenix.

The multi-tenant project consisting of 61,320 SF and 52,560 SF buildings will feature 24’ clear height, dock and grade level loading, ESFR fire protection and fenced truck courts. Space availabilities begin at 4,755 SF. Each suite will offer at least one dock door and one grade level door, with many of the suites offering multiple dock doors per bay.

The property is currently owned by Jim Chamberlain whose company Sun State Builders has been constructing and developing industrial and office buildings in the Phoenix area for 40 years. Greenwood & McKenzie, a real estate investment company in Tustin, CA, will be purchasing the project upon its completion in November. Carl Greenwood and his partner Jim McKenzie have been acquiring projects from Jim Chamberlain for almost 35 years. Wes Balmer with Balmer Architectural Group was selected as architect. Lee & Associates Arizona principals Matt Hobaica and Jeff Conrad were chosen to market the property.

“Sunstate, along with Carl and Jim, have been involved with this infill site for some time. After assessing current market conditions, they have determined it is time to put the land into production,” said Conrad.

The Deer Valley submarket has proven itself to be one of the most dynamic industrial submarkets in the Greater Phoenix area. Vacancy for Class A, multi-tenant industrial space is tight for small to mid-bay users looking for frontage opportunities with immediate proximity to Interstate 17 and the Loop 101. “The 17/Union Hills Business Center is well-positioned to capture the pent-up demand for this new product,” said Hobaica.

7400 E Tierra Buena, WEB

Jewelry design firm takes 30,500 SF of flex space in Scottsdale Airpark

South Hill Design Corp., a jewelry design and marketing firm has leased 30,500 SF of flex industrial space on a 5-year term at 7400 E. Tierra Buena Ln., Scottsdale.

Mark Linsalata

Mark Linsalata

The landlord, Hewson Development Corp. and GH Scottsdale I was represented by Mark Linsalata, Principal with Lee & Associates. John Quatrini with Shell Commercial secured the tenant. The newly leased space is for their corporate offices and a fulfillment center. South Hill Design Corp. is a direct sales jewelry company where clients create their own designs was started in 2012 and has grown to a nationwide entity.

The 66,057 SF fl ex building was built in 1998 and situated in heart of the Scottsdale Airpark on 1.49 acres, a half-mile from the Loop 101. The South Hill lease brings the building to 100% occupancy.

av air front-S2, WEB

Av-Air breaks ground on 162,500 SF, multi-building project totaling $15M

Arizona-based Av-Air, Inc. has hired Sun State Builders to construct its new two-building, 162,500+ SF headquarters for a total project cost of nearly $15M.

The 6.17-acre parcel at 6877 W. Frye Rd., Chandler, Ariz., fronts the Loop 202 Freeway in Santan Technology Park. Av-Air purchased the property and broke ground soon after.

Andy Ogan, Principal with Lee & Associates Arizona negotiated the transaction for the land and build-to-suit project. Architectural services were provided by Wes Balmer with Balmer Architectural Group. Tom Altieri of MidFirst Bank provided the financing with an SBA 504 loan. According to Altieri, it was one of the largest SBA loans done in Phoenix-area history.

The new buildings will consist of a 92,500 SF building with 20,000 SF of office space and a 70,000 SF building storage/distribution building. Both buildings will feature metal deck, steel trusses, 30’ clear height, grade level and truck well loading doors. The project is estimated to be completed in the fall of 2014.

Av-Air, a provider of aftermarket aviation parts and services, will vacate 67,000 SF it currently owns & occupies in its Chandler headquarters at 33 South 56th Street and 1510 West Bell De Mar Drive in Tempe and consolidate operations in the new facility. Av-Air will be offering the 67,000 SF in both facilities for lease, Ogan will be the listing broker for both properties.

Kafka, WEB

Gregg Kafka Promoted at Lee & Associates

Gregg Kafka has been promoted to associate at Lee & Associates Arizona. He was a Runner with The Coppola Cheney Group for 30 months and will now join the team as a broker.

Kafka specializes in the representation of office landlords and tenants in the leasing and sales of offi ce properties in the metropolitan Phoenix real estate market. His extensive knowledge of the Phoenix market is complemented through analysis and marketing skills involving tenant relocation, tenant expansion, lease negotiations, market analysis and property marketing. These qualities, along with a strong work ethic, have earned him respect from the brokerage community.

Kafka, under the guidance of Principals Craig Coppola and Andrew Cheney, has worked with the team to assist with developing new opportunities and all related activities.

“With his construction background, Gregg adds a unique perspective our clients highly value,” said Andrew Cheney, Principal with Lee & Associates. “The rest of the firm values Gregg as a dynamic broker and is excited to have him aboard as an associate.”

He previously worked for Macerich, one of the largest retail REITs in the U.S. where he provided construction and lease analysis for the company. Kafka holds an Arizona Real Estate License and a Bachelor of Science in Construction Management from Arizona State University.

River Center_Whole Foods, Lee and Associates

Lee & Associates Sells Tucson Shopping Center for $24.8M

River Center, a 117,563 SF Whole Foods- and Petco- anchored shopping center at 555 E. River Rd. in Tucson, has sold for $24,775,000. The sale posted a cap rate of 5.5%.
The January 9 closing was lead by Lee & Associates Arizona principals Patrick Dempsey and Jan Fincham. The buyer was Global Retail Investors, LLC, a subsidiary of First Washington Realty, Inc. of Bethesda, MD. The seller was River Center Canada, LLC.
“We were pleased to have sourced this signature Tucson project and worked diligently to provide valuable guidance for both parties,“ said Dempsey.
River Center was constructed in 1986 and remodeled in 1997 and in 2013. The center is located at the base of the Catalina Foothills in northeastern Tucson.

Jim Fijan, Exec. VP CB Richard Ellis

Strong Absorption Lifts Phoenix Industrial Sector Off Mid-Year Slide

Lee & Associates reported the following:

The Phoenix industrial market has rebounded well from its mid-year doldrums and has regained much of what was lost to round out 2013. The sector has yet to hit its full stride and there is growing optimism as to where it might be headed. Most all indications from economic forecasters and commercial real estate experts show an improving economic engine is
providing a safer foundation for further growth throughout 2014. Much of the renewed enthusiasm that grew this quarter was largely due to Washington politicians finally reaching a budget compromise along with rising job numbers and stronger-than-expected GDP forecasts. Speculative industrial projects are underway in Phoenix and across the U.S. due to rising confidence in the economy, easier lending opportunities and the return of a more stable market.
The overall vacancy rate ended the year at 12.6%; a 30-basis point improvement from last quarter. The vacancy rate would be even lower if it were based on strong absorption alone; however, the delivery of over 1.2M SF this quarter and 5.2M SF of space for the year, offsets the decline somewhat.
Absorption finished strong in the fourth quarter posting a 2.78M SF net gain and 3.7M SF for the entire year. The Southwest Valley posted the largest net absorption gain this quarter at 1.9M SF and the Northwest Valley submarket showed the most gains over the year at nearly 1.6M SF. Construction activity declined this quarter to 4.6M SF, down from 5.2M last quarter. Fourth-quarter building completions rose to nearly 1.3M SF and included four distribution buildings; the largest being the 394,775 SF, 43rd Avenue Logistic Center at 1635 S. 43rd Ave., Phoenix. Asking rental rates have remained unchanged from last quarter at $0.52 per SF, per month and have been essentially fl at for some time.
Leasing activity has decreased each quarter since Q2. There were 472 transactions totaling 3,074,379 SF in Q4. A 418,200 SF lease by First Solar was the largest lease transaction of the quarter. It is located at SW Logistics Center, 2950 S. Litchfield Rd. in Goodyear.
Sales activity was up this quarter to $257.4M from only $167.9M last quarter. The Q4 total is the most of any quarter in 2013. The largest sales transaction for the quarter was the headline-grabbing purchase by Apple Corp. for First Solar’s former Mesa manufacturing facility at 3740 S. Signal Butte Rd. Apple paid $107.6M or $81.02 PSF for the 1.3M SF building. It plans to assemble glass touch-screen components for the iPhone and iPad in Apple’s effort to bring some of its manufacturing back to the U.S.
The Valley economy seems poised for growth in areas such as housing, employment and net-migration to the region. All of those areas in turn stimulate commercial sectors. As the economy began to improve, the Phoenix industrial market had momentum only to see it falter and restart again. It seems that the right factors are finally in place to influence steady, sustained growth with minimal interference from past issues that, over time, have become less significant.