Tag Archives: legacy capital advisors

Posada Del Rio

Legacy Capital finances 160-unit multi-housing property in Tucson

Legacy Capital Advisors, Phoenix, recently financed the sale of Posada Del Rio, a 160-unit multifamily property located in Tucson, Ariz. The building is approximately 99,280 square feet and was built in 1980. The property was sold to Radium Investments I, LLC (an entity formed by Jim and Kevin Szymanski of James Associates Management Equity Services, LLC). The seller was HSL Properties.  The sales price was $8.1 million, which equates to $50,625/unit.

“Kevin and Jim Szymanski had a tight time frame on the Posada Del Rio acquisition and we were able to secure a great new loan for them in 45 business days,” stated Jim Pierson, Principal at Legacy Capital Advisors.

Legacy Capital Advisors secured $6,100,000 in Agency (Freddie Mac) permanent financing. Financing was arranged by Jim Pierson and Keaton Merrell of Legacy Capital Advisors in Phoenix and the deal was brokered by Art Wadlund and Clint Wadlund of Hendricks Berkadia. Legacy Capital has a long-standing relationship with James Associates which has been active in both Phoenix and Tucson apartment ownership and management.

35th Avenue Rendering.

Legacy Capital Finances Industrial Property for Harvard Investments

Legacy Capital Advisors recently financed the sale of 2 N. 35th Avenue and 36 N. 35th Avenue in Phoenix, an industrial distribution property. The two buildings are approximately 100,000 SF and were built in 1980.The property was sold to H35 Building LLP, an entity formed by Harvard Investments Inc., a Scottsdale-based real estate investment and development company. This was Harvard Investments first commercial real estate purchase in the Valley . The seller was Lindquist Development Company, Inc., an Oregon Corporation. The sales price was $3,050,000, which equates to $32.48 per square foot.

Securing $2,415,000 in non-recourse bridge financing, the sponsor plans to complete an extensive renovation of the project and lease the vacant building. Steve Grossoehme of Rein & Grossoehme Commercial Real Estate negotiated the transaction. David Krumwiede, Executive Vice President of Lincoln Property Company (LPC), put the deal together with Harvard and LPC will handle leasing and property management.

Facing a firm deadline with the purchase contract, we were able to quickly identify the best financing source and close the acquisition loan in only 24 business days from loan application.” stated Jim Pierson, Principal at Legacy Capital Advisors. 

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One North Fifth's Recent Financing Promotes Urban Living In Downtown Tucson

 

Legacy Capital Advisors of Phoenix recently financed One North Fifth Apartments in Downtown Tucson. Working with the developer, Scott Stiteler of Tucson Urban, LLC, Legacy Capital Advisors secured permanent financing for the recently renovated MLK Public Housing Project.

The permanent financing solidifies this urban apartment complex and retail/commercial building as a long-term community endeavor.

“This project is significant to the downtown Tucson revitalization efforts and demonstrates Scott Stiteler’s commitment to the community,” Legacy Capital Advisors Principal Jim Pierson said.

This is one of several other investments Stiteler has made in Downtown Tucson, most notably seven new businesses that opened this summer including Diablo Burger and Proper.

Securing more than $6.2M in financing via U.S. Department of Housing and Urban Development (HUD) funds, the Legacy Capital team locked in a 35-year fully amortized loan at 3.25%.

Situated adjacent to the historic Hotel Congress and the newly renovated Rialto Theatre, the One North Fifth project is at the NWC of Congress St. and Fifth Ave. The project has 64 studio and 32 one-bedroom apartments on floors two through six. On the ground floor, the project boasts 9,000 SF of new retail and commercial space.

Jim Pierson

AMA Names Pierson to 2013-14 Board of Directors

Jim Pierson was named as a new member to serve at the Board of Directors level for the Arizona Multihousing Association (AMA).

In this capacity, Pierson will serve a two-year term to participate in all of the practices and functions to assist in the oversight of the industry organization.

Pierson, principal and co-founder of Legacy Capital Advisors in Phoenix, has more than 23 years of experience in capital advisory services including mortgage banking, mortgage brokerage and direct mortgage lending.

His experience includes business development, extensive negotiating and underwriting of multi-family and commercial real estate loans.

“With multi-family housing leading the construction industry and Phoenix gaining in this market because of the rising demand for apartments, the AMA board will have a critical influence guiding and serving developers, political policy and issues that will poise the industry for success. I am honored to serve on this distinguished board.” Pierson said.

In addition to the board leadership for the AMA, Pierson has a long history of commitment to business and philanthropic organizations including: Arizona Commercial Mortgage Bankers Association (ACMBA), International Council of Shopping Centers (ICSC), National Association of Industrial and Office Properties (NAIOP) Board of Directors, Ryan House Board of Directors, Foundation for Blind Children (FBC) Board of Directors and Life Member and Phoenix Children’s Hospital Circle of Friends.

Pierson holds an Arizona commercial mortgage brokers license, is a graduate from the University of Mississippi with a Bachelor of Business Administration and moved to Phoenix in 1990.

 

NAIOP Roundtable 2011 - AZRE Magazine September/October 2011

NAIOP Roundtable 2011

NAIOP Roundtable 2011

The commercial real estate industry is clearly recovering. Companies are absorbing vacant space, build-to-suit development is active and abundant capital is pursuing core real estate. The key question remains, however, how do we compare with the other major markets when it comes to job and population growth?
In short, when will the market justify new development and how will the state and our local commercial real estate industry assist in this effort? To be sure, the future remains bright in Arizona but the recovery will last longer before the next boom.

— Mike Haenel


NAIOP Roundtable Participants Key NAIOP Roundtable - AZRE Magazine September/October 2011

Roundtable Participants

 

1 — SB: Scott Bjerk
President
Bjerk Builders, Inc.

2 — MC: Megan Creecy
Leasing and Development Manager
EJM Development Co.

8 — JD: John DiVall
Senior VP
Liberty Property Trust

MH: Mike Haenel
Executive VP, Industrial Group
Cassidy Turley BRE Commercial
Chairman Profile

6 — TH: Todd Holzer
VP of Development
Ryan Companies US

5 — KM: Keaton Merrell
Principal
Legacy Capital Advisors

7 — BM: Bob Mulhern
Managing Director Greater Phoenix
Colliers International

3 — DW: Deron Webb
Managing Principal
Wentworth Webb & Postal

4 — CW: Clay Wells
Director, Business Development
McShane Construction Co.


Q: What is different in July 2011 in our local commercial real estate industry than a year ago?

BM: The short answer is that the market is stronger, but still burdened by vacancy rates that are high by historical standards, despite being lower than recent peaks. What is decidedly different, however, is that the outlook is considerably brighter than it was a year ago.

Last year at this time, uncertainty was the overriding theme and it plagued the market. The industrial market had posted just one quarter of positive absorption, and it was unclear whether that was a one-time burst in activity or a sign that tenants were more optimistic and the industrial market was beginning to turn a corner. Now we can see that tenant demand for industrial space has been sustained for more than a year, vacancy is tightening, and rents are stabilizing. We are also seeing headline-making announcements from companies such as Amazon and First Solar that not only improve the numbers, but also renew confidence in the market as a whole.

The office market has been slower to bounce back, but it is far more stable today than it was a year ago. A year ago, we were averaging negative net absorption of more than 500,000 SF per quarter, and the vacancy rate was shooting higher. While absorption has been mixed in recent quarters — up one quarter, down the next — the overall vacancy trend is essentially flat. The market hasn’t necessarily started to improve, but it’s no longer in free fall. We’re forecasting slightly positive absorption in the second half of 2011 and then positive absorption of nearly 1 MSF in 2012. We think rents will likely tick lower through the remainder of this year, because the high availability of space will continue to create competition in the marketplace.

MC: Activity is up, but it is still the quintessential “tale of two tenants.” National companies with 200,000 SF+ warehouse requirements are in the market. And, there are definitely more of those types of requirements (including build-to-suits) in the market today than there were last year at this time.

When looking, however, at say deals in the 5,000 SF to 20,000 SF range, there has been an increase in activity, but the regional and local tenants who comprise a large portion of that market segment are still facing a lot of challenges, such as difficulty obtaining financing, and economic uncertainty. These challenges result in a constraint on their ability to expand and the lack of confidence needed to make long term real estate decisions, which is why we are still seeing a number of these tenants in the smaller size ranges wanting only short-term extensions in their current spaces.

TH: I sense that we are now a local real estate industry made up of survivors. The attrition of firms is over for the most part. Those remaining have right sized for this “new normal” that we find ourselves in. Companies in our business have had to make changes in their business plans and doing activities that they did not anticipate 4 to 5 years ago. I think that this transformation has completed where a year ago it was still finding itself.

Q: How would you compare our Metro Phoenix commercial real state market to other major markets throughout the Western U.S.?

BM: At present, the characteristic that best describes the Phoenix commercial real estate market is the vacancy rate, which is among the highest, if not the highest of the major markets in the Western U.S. In the period immediately preceding the recession, development in Phoenix was fairly active, and when the economy cratered and companies slashed payrolls, there was a significant supply/demand imbalance.

The difference between Phoenix and the major California markets — where employment losses were nearly as dramatic as losses here — is that those markets didn’t have nearly as much speculative construction in the pipeline. As a result, vacancies rose in California, but not to the heights that they rose in Phoenix.

The other state that makes for an interesting comparison is Texas, where development has historically been quite active — just like Phoenix. The primary difference between Phoenix and the major Texas markets in the recession and thus far in the recovery is that the Texas markets weren’t hit nearly as hard by job losses during the downturn and the state has led the way with job gains during the recovery.

Looking ahead, the picture brightens significantly. Most forecasts call for Phoenix to rebound favorably once the economic recovery really gains traction nationally. Long-term forecasts call for annual population and employment gains in the 2.5% range, which should be similar to the major Texas markets and far outpace the California markets. This anticipated expansion is the primary source of optimism in the Phoenix market — now we’re just waiting for it to happen.

CW: The Metro Phoenix commercial real estate market has actually fared no worse or better than the other major Western U.S. markets. Retail and office continue to struggle in most markets while industrial vacancies for building over 500,000 SF have started to decrease. Recently a 500,000 SF speculative building broke ground in the Inland Empire and I believe if the economy stays as is we will see a speculative industrial building in Phoenix breaking ground by 3Q 2012. Where the Phoenix market differs from the rest of the Western U.S., with the exception of Las Vegas, is the residential real estate market. Metro Phoenix was too dependent on the residential construction market for creating jobs.

The reason this is so important until we create new jobs to replace these lost jobs, the retail and office sectors will continue to be slow to recover. People have to have a job, which allows them to have diposable income to spend at stores creating a need for new retailers. The same can be said for the office market. Until new companies locate to Metro Phoenix or are created here the need for office space will remain depressed. Most activity we are seeing in the office market are new investors coming to Metro Phoenix and buying distressed properties at a discount. This allows them to quote reduced rents forcing a downward pressure on existing landlords, who must rent space at a loss or lose a tenant. Office markets in some cities that have a more diverse economic base are recovering at a better pace than Metro Phoenix.

MC: While there has been increased activity across the Western U.S., the divergence is in the stage of recovery in primary markets such as the Inland Empire, vs. secondary markets like Phoenix.

The Inland Empire, for example, is one of the strongest industrial markets in the country with vacancy at 6.3%, which is the lowest vacancy rate in 14 quarters. By comparison, Phoenix’s Q2 2011 industrial vacancy rate was 13.9%, which was our 5th consecutive quarterly decline. But, I would say that the steady decline in vacancy we are experiencing here in Phoenix is a positive indicator, and it is only a matter of time before our recovery picks up speed.