Newmark Grubb Knight Frank (NGKF) announced the opening of a new retail store for Leslie’s Poolmart, Inc. (Leslie’s) at 2005 E. Indian School Road. The nation’s leading retailer of swimming pool supplies and related products leased 4,500 square feet of a new 6,500 square foot retail building developed by DM Ventures I, LLC. The new retail storefront is located next to Leslie’s custom converted 91,500-square-foot office complex, which opened late last year. NGKF Executive Managing Director Jerry Jacobs handled the transaction.
“The Leslie’s renovation of the vacant Sam’s Club and the opening of its new retail store is elevating the perception of the Camelback East Village neighborhood, and furthering its transition into a burgeoning development area,” explained Jerry Jacobs. He continued, “This is a prime example of how creative and adaptive reuse can literally transform a community.”
Other developments planned along Indian School Road include a new 220-unit Class A apartment complex situated on 6.5 acres at 20th Street, scheduled to commence in April, and another Class A apartment complex at 28th Street with 152 units. Additionally DeDito Partners has redevelopment plans for a 140-acre retail center located at 32nd Street and DM Ventures I, LLC is actively promoting developable or ground lease land adjacent to Leslie’s.
Newmark Grubb Knight Frank (NGKF) announced the sale of 3225 North Colorado Street in Chandler to Sun Valley Solar Solutions. The solar panel installation company purchased the 26,815-square-foot, free-standing industrial building and accompanying 3.3 acres from Washington Street Enterprises Arizona, L.L.C. for $2.7 million or $100.00/square foot. Sun Valley Solar Solutions was represented by NGKF’s Associate Director Tricia Gumulka.
“Sun Valley is experiencing rapid growth, with year-over-year revenue forecasted to grow by 60% this year,” remarked Russ Patzer, CEO of locally-owned Sun Valley Solar Solutions. “We needed a new location, and wanted to combine our current facilities under one roof, leveraging our brand while accommodating future growth. We are fortunate to have found 3225 N. Colorado, with its ideal situation close to our former Chandler location, attractive façade and layout, and 32’ clear height.” Built in 1996, the stand-alone industrial facility offers office, warehouse and showroom space along with a fenced 1.23- acre yard with storage. Sun Valley is improving the property and has an aggressive renovation time-line, in preparation for a May move-in. The Arizona-based company currently has 85 full-time employees, and continues to expand.
“3225 N. Colorado is an extremely unique opportunity given its age, size, acreage, and location within the thriving Chandler submarket,” commented Tricia Gumulka, associate director at NGKF. “Sun Valley instantly found value in all of the existing improvements.” Vacancy in the Chandler submarket is very low – at just 10.3%, with limited options for companies looking to expand.
Sun Valley’s decision to purchase a new facility was not a spur-of-the-moment one. NGKF and Sun Valley have a four-year working relationship, having completed several smaller deals as the company grew. NGKF added value to Sun Valley by working closely with the company to analyze its current and future requirements, identifying the ideal option, and negotiating tenaciously on behalf of the tenant. Jerry McCormick of CBRE represented the seller in the sale transaction.
GDC/RE founders Joe Doucett and Tim Gunnink are bringing their team of retail specialists to Newmark Grubb Knight Frank‘s (NGKF) Phoenix office, where the number of real estate professionals has grown fourfold in the past two years.
With nearly 25 years of real estate experience between them, Doucett and Gunnink will join the retail division of the Phoenix office as senior managing directors. Following them are Joseph Hoye, director; Tim Westfall, associate director; Ryan Moroney, associate; and Chris Osborn, associate. The group brings more than 8.4 million square feet of listings, representing 48 retail properties.
“Phoenix is one of the most competitive and desirable retail markets in the country because of its rapidly growing population, positive employment outlook and inexpensive land prices relative to other major metro areas. Every retailer wants a foothold here,” said Pete Bolton, executive vice president and managing director of NGKF’s Phoenix office. “Bringing Tim, Joe and their team aboard gives NGKF a strong and established presence in a retail market that totals more than 150 million square feet and positions us to take advantage of the expanding opportunities.”
Doucett and Gunnink founded Phoenix-based GDC/RE in 2009. Within five years, the firm became one of the top retail firms in the Western U.S., offering consulting services, retailer representation and leasing and investment sales services. Prior to GDC/RE, Doucett worked with The Corritore Company, representing high-profile, mixed-use developments and lifestyle centers along with specialty retailers. Gunnink was a vice president at Phoenix Commercial Advisors.
“Retailers and retail property owners are demanding more efficiency from their real estate to achieve sustainability and growth,” said Gunnink. “NGKF’s platform of enhanced services and capabilities, including its entire suite of real estate disciplines, its access to financing and capital markets and its international footprint, equips our team to position our clients for further success.”
The addition of the GDC/RE team follows several other key hires at NGKF in Phoenix. This spring, the office welcomed Directors Kathleen Morgan and Trisha Talbot, both from GPE Commercial Advisors, where they specialized in medical office properties. Together, they brought 1.2 million square feet of primarily medical office listings in the greater metro area and became part of NGKF’s Global Healthcare Services practice.
Jerry Jacobs, executive managing director, and Michael Crystal, managing director, both joined from Cushman & Wakefield, also in spring 2014. Specializing in office tenant and landlord representation, they added two million square feet in listings, comprising Class A high-rise buildings and Class B mid- and low-rise buildings in the Phoenix CBD and surrounding area. Last year, Jacobs was recognized as one of the top producers in the Phoenix area. Crystal has leased and sold over five million square feet of office space during his tenure and is involved in more than 80 lease transactions each year.
Newmark Grubb Knight Frank (NGKF) has negotiated a 20,127 square foot lease at the Tempe Commerce Park, 7360 S Kyrene, a 99,384 square-foot Industrial manufacturing building, built in 1996, in Tempe, Ariz.
Rob Stephens, Managing Director with NGKF’s Phoenix office represented the Tenant Honeyville Food Products, in the lease transaction. The landlord, Invesco was represented by JLL’s Steve Sayre in the transaction. Honeyville is moving its current operation from Chandler Blvd & 56th street to the new space in November. Honeyville is a national food supplier specializing in the baking, cooking and food storage industries. Headquartered in Honeyville, Utah, the company has been in business for over 50 years.
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.
Newmark Grubb Knight Frank (NGKF) negotiated the $12.5 million sale of the Bella View Apartments located at 2912 E. Indian School Rd , in Phoenix. The property, a 355 unit Class B apartment complex, was built in 1979 and sits on approximately 7.92 acres.
Karl Abert, Managing Director with NGKF’s Phoenix office represented the seller, Belleview Communities, LLC. The buyer, SPL Properties of Denver, Colo., was represented by Todd Braun at Lee & Associates. The acquisition expands SPL Properties footprint in the Phoenix marketplace. Multiple offers were generated prior to the bid deadline and
NGKF achieved an at-list price sale following an extensive national marketing campaign of the 6.3% cap rate opportunity.
“Following their acquisition of the previously foreclosed property, Belleview communities completed an extensive exterior and interior renovation, resulting in operational stabilization as well as substantial rental income growth,” says Abert. “The desirable location produced high occupancy rates and provided residents convenient neighborhood services.”
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.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.
Newmark Grubb Knight Frank (NGKF) negotiated the $1.8 million sale of 4250 E. Broadway Rd., a 38KSF Industrial building, in Phoenix.
Rob Stephens, Managing Director and Tricia Gumulka, Associate Director with NGKF’s Phoenix office represented the seller, Sorenson Group Management. The buyer, Forever Nutraceuticals, a worldwide distributor of vitamins was represented by Ken McQueen at Lee & Associates in the transaction.
“Forever Nutraceuticals expanded in the Phoenix market, this building is right across the street from their existing space on Wood St, says Stephens, it’s perfect for them due to the location and the fully air-conditioned facility which was a requirement for Forever Nutraceutical.”
Newmark Grubb Knight Frank completed the sale of the 301 unit Pine Ridge Apartments located at 2627 N. 45th Ave. in Phoenix.
Karl Abert, Managing Director with Newmark Grubb Knight Franks’ Phoenix office, represented the seller, Lili Rubin Investment Properties, LLC. The buyer, Community Enhancement Group of Denver, CO represented themselves. The property was financed with private equity and is the first acquisition by the Denver based REIT, Pine Ridge Apartments was purchased below replacement cost at just over $7 million. The buyer is planning to complete a full renovation of the property to stabilize the asset as part of their portfolio. Pine Ridge Apartments is the second community that NGKF has marketed and sold for Lili Rubin Investment Properties within the last 12 months.
Newmark Grubb Knight Frank negotiated the $4.1M sale of 455 E. Warner Rd., a 49,984 SF industrial building in Phoenix.
Rob Stephens, managing director and Tricia Gumulka, associate director with NGKF’s Phoenix office, represented the buyers, DWWF, LLC and IGWF, LLC, in closing the 1031 Exchange transaction.
The seller, AVIV Realty was represented by CBRE’s Mike Parker and Evan Koplan.
NGKF renewed the current tenant, Jump Street and Gold Medal Gymnastics is a new tenant that just moved into the building, bringing the occupancy to 100% creating more value for the buyers.
BH Properties, a Los Angeles-based commercial real estate investment firm that has a penchant for working through difficult transactions, time-sensitive closing factors and an expertise in repositioning real estate, acquired Vista Ventana, a 275-unit multi-family property at 3221 W. El Camino Dr. in Phoenix.
“With two of our other Phoenix properties, Smoke Tree and Biltmore, nearby, we plan to manage Vista Ventana to take advantage of the economies of scale that we can achieve by cross-marketing, sharing staff and promoting properties to new visitors,” said Executive Vice President of BH Properties Steve Jaffe.
“This acquisition perfectly fits into what BH Properties is looking to accomplish in the Southwest. We expect to add two more apartment complexes by the end of 2013.”
According to Jaffe, the seller had made a significant amount of improvements including interior upgrades, exterior painting and a roof renovation while also increasing occupancy to 90% prior to closing.
“This stable asset mirrors most of our Phoenix multi-family assets and should not require much in the way of improvements,” he said.
Since January, BH Properties has been extremely active in the Southwest, including the recent acquisitions of the 205 condominium units at Avalon Hills and the 214-unit Terrance Park Apartments both in Phoenix.
“This well maintained asset is a solid, long term type hold for us. We continue to view the Arizona B and C class apartments market as full of opportunity — despite the recent uptick in pricing. We hope our high level of activity will keep us at the top of all sellers’ lists,” Jaffe said.
BH Properties was represented by Karl Abert and Brad Pickering of Newmark Grubb Knight Frank, who also represented the seller, El Camino Vista, LLC.
Newmark Grubb Knight Frank completed the sale of the 275-unit Vista Ventana Apartments at 3221 W. El Camino Dr. in Phoenix.
Karl Abert, Sally Schwenn and Brad Pickering, all managing directors with Newmark Grubb Knight Franks’ Phoenix office, represented the seller, El Camino Vista, as well as the buyer, B.H. Vista Ventana.
Abert, Schwenn and Pickering negotiated the all-cash transaction in less than 21 days.
A recent unit by unit rehab was instituted over the past six months, yielding increased rents as well as an enhanced future value for the community.
The buyer plans on continuing the rehab project and will hold the property as a long term investment in their portfolio. This stabilized community is in a great location with a strong employment corridor, in a rejuvenated sub-market.
iStar Financial announced today that Terminix, the world’s largest pest control provider, will open a new customer care center at Westgate Entertainment District in October that will bring as many as 300 jobs to Arizona and help invigorate activity within the office buildings of the Entertainment District.
At 32,800 square feet, the deal is the largest office lease in Westgate’s history. The Memphis, Tenn.-based company is expanding its customer service operations to Arizona and will take over the entire second floor of the east office building beginning October 1.
“With Westgate’s attributes, including over 15 on-site restaurants and abundant parking, we strategically and aggressively targeted large corporate users and are pleased to announce the full-floor lease to Terminix,” said Jeff Teetsel, development manager of Westgate Entertainment District. “This is the largest office lease in Westgate’s history, and is another indication of our positive momentum. With our direct freeway access and ease and efficiency for employees to walk to lunch, we have a uniquely desirable mixed-use environment for office tenants.”
The announcement comes on the heels of strong leasing activity at Westgate Entertainment District in recent months including signed leases from Buffalo Wild Wings and Whiskey Rose Bar & Grill and the recent openings of Chipotle, Gallery Glendale and The Arizona Republic, which relocated its West Valley office earlier this year.
“This lease is a validation of the market’s response to the nearly $1 million in investments iStar has made in upgrades to the property over the past year that includes improving the parking lot and common areas and installing new signage to benefit office tenants,” said Teetsel.
Terminix, a company with revenues exceeding $1.3 billion, is the largest subsidiary of ServiceMaster, one of the world’s largest residential service networks. Terminix services more than 3 million residential and commercial customers in 47 states and 14 countries.
“This new Arizona facility reinforces our commitment to enhancing the Terminix customer experience and providing one-call resolution to any customer questions or concerns,” said Larry Pruitt, president of Terminix. “Terminix already earns best-in-class service ratings from customers, and this new center will help us take that service to an even higher level.”
Terminix conducted a site selection process throughout the western United States, narrowed the focus to Denver, Salt Lake City and Phoenix, and ultimately selected metro Phoenix and Glendale specifically.
CBRE’s Bryan Taute and Brad Anderson represented the landlord and Newmark Grubb Knight Frank’s Aaron Sommer, of the Atlanta office, and Geoffrey Waldrom and Dan Dobric, of the Phoenix office, represented the tenant.
The City of Glendale Economic Development Department worked to expedite permit processing and coordination to help the tenant meet its expedited occupancy target date. Jeanine Jerkovic in City’s Economic Development department coordinated the City’s efforts, along with Department Director Brian Friedman.
For more information about Westgate Entertainment District, visit www.westgateaz.com.
Newmark Grubb Knight Frank negotiated a lease extension totaling 153,600 SF at 7102 W. Roosevelt in Phoenix.
Rob Stephens, Managing Director and Tricia Gumulka, Associate Director with Newmark Knight Franks’ Phoenix office, represented the tenant, Summit Warehouse & Logistics in the transaction.
The landlord, First Industrial Realty Trust represented itself. Stephens and Gumulka negotiated a 36-month extension for Summit totaling more than $2.3M in total consideration. Stephens and Gumulka represented Summit in September of 2009 when it first moved into the space.
Summit Warehouse & Logistics was established in 2002 by a management team that has more than 30 years in the trucking and distribution industries. It focuses on specialized distribution requirements.
In another deal, Newmark Grubb Knight Frank negotiated a lease totaling 37,856 SF at 121 S. 39th Ave. in Phoenix.
Stephens and Gumulka again represented the Phoenix-based tenant, Summit Warehouse & Logistics. The landlord, Eastern Columbia Properties, was represented by Don MacWilliam with Colliers International.
Newmark Grubb Knight Frank negotiated a 5-year renewal for Century Link at 2120 N. Central Ave. in Phoenix.
It comprises of 18,505 SF of office space for a total lease consideration of $1.8M.
Geoffrey Waldrom, Managing Director with Newmark Knight Franks’ Phoenix office, represented the tenant, Century Link. The Landlord, City of Phoenix was represented by their internal real estate department.
Century Link is a provider of Internet, tv and voice. Headquartered in Monroe, La., Century Link is represented nationally by the Denver Newmark Grubb Knight Frank office.