Tag Archives: Principal Real Estate Investors

Reviving the Construction Industry

$6.5M land transaction leads to new Mesa industrial park

Metro East Valley Holdings, LLC, a joint venture between Tempe based Metro Commercial Properties, Inc., and a private REIT managed by Principal Real Estate Investors, Des Moines, IA, completed the purchase of 21.5 acres of land fronting the US 60 Superstition Freeway in Mesa, Arizona, for a planned four building light industrial development.

The seller in the transaction was PuppyFeathers, LLLP, an entity controlled by Craig Berge, also president of Berge Ford, Inc. The site located at 614 – 720 East Auto Center Drive, is immediately east of the Berge Ford dealership with frontage on the south side of the U.S. 60 at Mesa Drive. The $6.5 million land sale was brokered by Kurt Saulnier, Ken McQueen and Chris McClurg of Lee and Associates Arizona.

The 21.5 acre site was formerly zoned for automotive dealership use. The team at Metro Commercial Properties, led by veteran zoning attorney Mike Withey of Withey Morris, completed a re-zone of the site on February 23, 2015, to allow industrial uses for the proposed multi- tenant light industrial project. Upon receipt of permits with the City of Mesa, construction is scheduled to commence in August 2015.

McCall & Associates Architects (Jeff McCall) of Scottsdale was engaged as the project architect and designed the four-building project to accommodate the anticipated small and medium sized user profile of the southeast valley industrial market in attractive rear load buildings. Each of the four buildings were designed to break down to accommodate a diverse size of users ranging from as small as 5,750 square feet to as large as 128,000 square feet. Building features include a 180 foot shared truck court, grade level and truckwell loading, clear heights of 24’ and 30’, ESFR sprinkler system, and parking for 640 cars (1.86/1000 SF).

Upon completion of the project in March, 2016, the development will add 349,049 square feet of additional light industrial product to the inventory base of the Southeast Valley, a submarket with only 8.9% overall warehouse vacancy according to 2nd quarter industrial reports published by Lee & Associates Arizona.

“We were extremely fortunate to work with Craig Berge in the acquisition of this in-fill industrial site with over 1,300 feet of highly visible frontage along the US 60 Superstition Freeway.” stated Janet Herlyck, Vice President of Metro Commercial Properties. “The site has tremendous accessibility off of the US 60 between two full diamond interchanges at Mesa Drive and Stapley.” In addition to the controlled intersection at Mesa Drive and E. Auto Center, two additional controlled Baseline Road intersections at S. Hobson and Horne Drive provide very convenient truck access to the site.

“The site is literally the geographic center of the entire southeast valley industrial submarket,” added Tony C. Hepner, Principal of Metro Commercial Properties. “The infill location and freeway infrastructure of the Metro East Valley Commerce Center site allow industrial users to serve their customer base, northwest to Sky Harbor Airport and southeast to Phoenix-Mesa Gateway from a single central location with delivery times of less than 30 minutes.”

Nitti-Graycor Construction has been engaged as the project’s general contractor. Bank of America, N.A. provided construction financing to the Metro-Principal joint venture. The team of Saulnier, McClurg and McQueen of Lee & Associates has been retained by the developer to provide leasing services for the new project which is currently marketing space for the March 2016 delivery date.

Hannay Reality Advisors - Denver

Phoenix-Based Hannay Realty Advisors Expands to Colorado

Longtime Phoenix-based property management and commercial real estate investment firm, Hannay Realty Advisors, has opened an office in Colorado to expand presence.

To take the lead of the new office, Denver-based commercial real estate executive Bruce Backstrom has been brought on as senior vice president and manager of the Hannay Realty Advisors’ Colorado office in Denver. Backstrom will be involved in establishing a larger presence for Hannay Realty Advisors as the company continues their expansion across the Western U.S.

Backstrom’s background includes 26 years in the commercial asset management and leasing industry where he held top level positions with some of the nation’s leading real estate firms, including CBRE and the Trammel Crow Company. His experience includes managing office, retail, industrial and medical office portfolios, and he is highly adept at receiverships for distressed properties and has been responsible for 15 receiverships in the past 24 months.

Backstrom has worked with top players in the commercial real estate industry, such as Morgan Stanley, Principal Real Estate Investors, Invesco, CW Capital, TIAA-CREF and LaSalle Investment Management, among others. Backstrom has been involved in numerous professional commercial real estate organizations, including being a former board member of BOMA/Denver, member of the National Association of Industrial and Office Properties (NAIOP). He is a Certified Shopping Manager (CSM) awarded by the International Council of Shopping Centers (ICSC). Bruce is the licensed employing broker in Colorado.

“We are very excited to have Bruce join our organization and are confident that we have the right person in place to help us become a major player in Colorado,” said Craig Hannay, president of Hannay Realty Advisors. “Bruce has an impressive background and has in depth knowledge of the Colorado market. This is just the first step in our strategic growth plan that we foresee for 2012.”

For more information on Hannay Realty Advisors, visit hannayrealtyadvisors.com.