Tag Archives: ViaWest Group

Battling-Robots

Local Real Estate Companies Battle The ‘Big Boys’

Across all business sectors, local companies are constantly running into challenges competing against the big, national companies that possess more resources, easier access to capital and power of size. This is no different in the local Phoenix, real estate investment and development business. So, how do these companies survive and excel?

Steven Schwarz

Steven Schwarz


As a foundation, local companies must have 1) access to capital that is properly aligned with the company’s strategies; and 2) excellence in operations. On a deal level, local companies cannot forget the importance of location and, just as critical, timing, i.e., being on the forefront of market shifts.
The following elements are key to the successful business strategy of a local company:

ESTABLISHED RELATIONSHIPS:
Longstanding relationships may offer local companies unique opportunities and help them to more quickly access the right type of capital.

TRACK RECORD:
A successful track record is critical to establishing credibility with debt and equity sources and to procuring the best investment opportunities.

RAISING DISCRETIONARY
EQUITY CAPITAL:
Discretionary funds allow local companies flexibility to pursue new opportunities that are on the forefront of market changes. Relationships and solid track record are key to being able to raise these discretionary funds. Our company, ViaWest Group, is presently raising a $50M real estate fund from private investors that will provide it with the discretionary capital it needs to have a competitive advantage. Its ability to raise these dollars will be based, in large part, on its deep investor relationships established over many years and its ten-year highly successful track record.

BEING CREATIVE:
Local companies need to be creative in their pursuits, whether, as examples, establishing joint venture relationships with land owners or creating unique deal structures that incentive brokers to bring them opportunities.

PROVIDING LOCAL SERVICES:
Some local companies have found success by taking the “if you can’t beat them, then join them” approach by providing services to national companies that can be done best on a local level. With the building of relationships through services, such as property management, local companies can sometimes parlay these into larger opportunities.

Local companies do have the advantages of flexibility, responsiveness and market knowledge and, when matched with the key elements above, they have significant opportunities to outcompete the larger national companies

Grand Retail_Photo

ViaWest Group sells Grand Ave. plaza for $1.3M

ViaWest Group has sold Grand Retail Plaza, a premier multi-tenant strip center located at 9827 W. Grand Ave. in Sun City, Ariz., for a total consideration of $1.3 million. The property was 100% leased at time of sale.

Phoenix-based ViaWest Group sold the property to Kanjibhai Ghadia of Anaheim, Calif. Steve Julius and Jesse Goldsmith with CBRE’s Phoenix office negotiated the $1.3 million transaction.

ViaWest purchased the property in September 2011 from Pacific Western Bank subsequent to the original developer losing the property to foreclosure. At the time, the property was 100% leased but all the existing tenants had near-term lease expirations. “After purchasing, we reached agreements with all the existing tenants to extend their leases, except for one which we replaced with Domino’s Pizza on a 10-year lease. Additionally, shortly after acquisition we were able to creatively restructure an existing billboard lease by converting it to a perpetual easement allowing us to further enhance the economic performance of the asset by significantly reducing our basis,” added Danny Swancey, of ViaWest Group.

Grand Retail Plaza, which totals approximately 6,369 square feet and sits on 0.78 acres in the master-planned retirement community of Sun City, is currently fully occupied by five tenants, including Domino’s Pizza, Edward Jones, HE/PA Enterprises, Cash for Gold, and Cricket Wireless.

“Grand Retail Plaza is a superbly-located asset in excellent physical condition,” said CBRE’s Julius. “The property has no other retail competition at the intersection and has excellent Grand Avenue frontage and visibility. In addition, the property has a strong leasing history due to the success of each of its tenants.”

Built in 2003, the property sits just west of the Loop 101 freeway and approximately 30 minutes from the Phoenix Sky Harbor Airport. Located on the southeast corner of 99th Avenue and Grand Ave/US 60, Grand Retail Plaza sees an average of 41,707 vehicles per day via Grand Avenue and another 14,500 vehicles per day on 99th Avenue.

Northbank Office

ViaWest Group completes $5.2M sale of Northbank Office Building

ViaWest Group announced the sale of Northbank Office Building, a two-story suburban office building in Phoenix, for $5.2 million. The ±31,231 square foot, multi-tenant property located at 5110 North 40th St., was built in 1983 and completely renovated in 2005, with additional upgrades in 2013. It is part of the master-planned Northbank Office Park, which is comprised of eight high-quality office buildings.

Steve Lindley, Bob Buckley and Tracy Cartledge with Cassidy Turley’s Capital Markets Group negotiated the sale transaction.
Northbank Office Building was 94.2% leased at the time of sale, with 15 of 17 suites occupied.
“The property boasts an exceptional leasing history with average occupancy of 90.6% over the past 15 years, including 11 quarters at 100% occupied,” noted Steven Schwarz of ViaWest Group.

With multiple enhancements and upgrades over the past 30 years, the property includes a large open lobby with striking finishes including new flooring and energy efficient lighting. The façade and landscaping of Northbank Office Building were both updated during the recent renovations. The property sits on a two-acre site with 17 office suites averaging ±1,800 square feet, creating a desirable configuration for private tenants.

“Even though we bought this in 2005 (for $4.3 million) through strong management and negotiating a discounted note payoff, we made this a successful deal for our investors,” added Gary Linhart, also of ViaWest Group.

Northbank Office Building is located in the heart of the Camelback Corridor office submarket with an abundance of amenities within minutes of the property. It offers convenient access to multiple freeways, Sky Harbor International Airport, and high-end employment base.

Chauncey Professional Center, 6930 E. Chauncey Lane, Phoenix.

CBRE negotiates $11.1M sale of 2 office buildings

ViaWest Group has sold two premier class A office buildings in the Phoenix metro area for a total consideration of $11.1 million. CBRE negotiated the sale to Melcor Development of the ±24,154-square-foot Perimeter Parkview Corporate Center at 8355 E. Hartford Drive Scottsdale, Ariz. and the ±35,066-square-foot Chauncey Professional Center located at 6930 E. Chauncey Lane, in Phoenix, for a combined ±59,220-square-foot investment. The buildings commanded sale prices of approximately $4.1 million and $7 million, respectively.

Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, ViaWest Group of Phoenix. The buyer, Edmonton, Alberta, Canada-based Melcor Developments Arizona, Inc., was represented by Tom Swan with Amcal Southwest.

ViaWest originally purchased the properties in two separate transactions. The Chauncey property was purchased in December 2006 in shell condition and ViaWest was able to lease up the property from zero percent in late 2007 to 100 percent by mid-2009 during a very difficult leasing period. This was done through building spec suites of varying sizes, creative marketing approaches and unique lease structures. The Perimeter Parkway property was bought at a trustee sale in January 2011 with a portion of the property leased and the balance in shell condition. Within one year of purchase the property was 100 percent leased.

Both Chauncey Professional Center and Perimeter Parkview are presently 90 percent leased, with one suite in each property becoming available within the last month. Those suites total 3,708 square feet and 2,486 square feet, respectively.

“These two assets are excellent properties that are of great quality and extremely well-located. Melcor should have much success with them. As a local value-add operator, we will continue to redeploy capital into our strategies that generate opportunistic-type returns,” stated Steven Schwarz of ViaWest Group.

“The North Scottsdale/Airpark area has consistently outperformed the overall Phoenix market in net absorption of office space and is one of the top job-creating economies in the U.S.,” said CBRE’s Gabel. “In addition, these properties are both surrounded by first-class amenities, high-end executive housing and the Loop 101 Freeway making them very attractive to both current and prospective tenants, and solid investments for the buyer.”

The sale marks Melcor Developments Arizona, Inc.’s entrance into the Arizona market and ViaWest has been retained to continue management of both properties keeping its management portfolio in excess of 1.5 million square feet.

Built in 2007, Perimeter Parkview Corporate Center is a two-story, class A, multi-tenant office building situated in the Scottsdale Airpark submarket. The property has a high-quality tenant roll including Arizona State University’s WP Carey Graduate MBA Program, Interior Motives, Titus Brueckner & Levine PLC, BIC Distributors and Pro Sports Management. The property is located at the base of the McDowell Mountains, in the ±260-acre Perimeter Center Business Park. The business park is adjacent to the TPC Stadium as well as numerous residential and golf communities, resort hotels and an abundance of exciting dining and retail options.

Chauncey Professional Center, which was built in 2006, is located in the North Scottsdale Corporate Center master-planned commercial development. Tenants include Aspen Systems, Troche Fertility Clinic, Marcum Media, AZ Tech Finders, Nobis Technology Group, Landmark Management Group, MiCamp Solutions, Bottle & McInerney, Cadron Financial and Pogson Asset Management. Chauncey Professional Center is surrounded by first-class amenities, including the ±580,000-square-foot Scottsdale 101 retail power center, the ±200,000-square-foot Whole Foods anchored Shops at Chauncey Ranch, the ±465,000-square-foot Chauncey Ranch Autoplex, and a ±110,000-square-foot Lifetime Fitness. The property also benefits from proximity to high-end executive housing and the Loop 101 Freeway.

Perimeter Parkview Corporate Center, 8355 E. Hartford Drive, Scottsdale, Ariz.

Perimeter Parkview Corporate Center, 8355 E. Hartford Drive, Scottsdale, Ariz.

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ViaWest Group Acquires Office Asset for $13.2M

 

Adding to its growing portfolio, ViaWest Group successfully acquired two commercial properties: a 118,853 SF Phoenix multi-tenant, flex-office complex and a 2.8-acre parcel of commercially- zoned vacant land, collectively referred to as “West 101 Business Center.”

Phoenix-based ViaWest represented itself in the $13.2M acquisition and Eastdil Secured represented the seller, Carlson Real Estate Company, LLLP based in Minneapolis.

The office building is currently 82% leased with many high-profile tenants, including Maricopa County, Aetna, and ITT Educational Services, Inc. The properties are located on 95th Avenue on the north side of McDowell Road in the Southwest Valley submarket. Near the I-10 and 101 freeway interchange, the property has many amenities in very close proximity, including retail, hotels, and hospitals.

Bill Bayless and Andrew Brigham at CBRE will continue leasing the property on behalf of ViaWest. Guggenheim Life Insurance provided debt financing for the project with Keaton Merrell at Legacy Advisors serving as mortgage broker.

“The location of this property combined with the excellent function and aesthetic of the buildings makes this the most desirable asset in the entire submarket for tenants needing office and flex office/industrial space to service the West Valley population.” said Gary Linhart, Co-Founder and Principal of ViaWest.

“We pride ourselves on being 6 to 12 months ahead of the curve in identifying opportunities. We feel that the headline vacancy percentages are misleading due to the small inventory of buildings and the dysfunction of some of the buildings included in the vacancy calculations.,” said Steven Schwarz, also a Co-Founder and Principal of ViaWest.

“As the few functional, vacant buildings fill up, we believe that there will actually be a shortage of office space in the West Valley over the next three to five years, especially considering that 52% of Metro Phoenix’s future growth is expected to be in this area.” The company intends to hold the office building for investment and is considering build-to-suit development opportunities on the land parcel. ViaWest will serve as the property and asset manager on the office buildings. The company continues to seek new acquisition opportunities throughout the Southwestern United States.”

rsz_via_west

ViaWest Group Acquires Multi-Office Asset for $10.1M, Seeks New Acquisitions

 

Adding to its growing portfolio of properties, ViaWest Group successfully acquired two commercial office buildings and five office condominium buildings within the Chandler Midway Corporate Center at Chandler Blvd. and Kyrene Rd.

The combined purchase price of the short-sale acquisition exceeds $10M and the combined properties total 139,803 SF. The brokers representing ViaWest were Scott Baumgarten, Mark Stratz, and Tyler Wilson of Cassidy/Turley. Kevin Cosca and Pete Wentis of CBRE represented the seller, McMahon Development Group.

Located near Intel’s north Chandler corporate campuses, the two Class-A, 2-story office buildings are 55,900 SF each and were built in 2007 and 2008. 5710 W. Chandler is approximately 70% occupied with a single tenant and 5670 W. Chandler is completely vacant and ideal for a corporate headquarters or multi-tenant use.

The five acquired office condominium buildings total 28,003 SF and comprise 21 condo units ranging from 1,058 to 9,980 SF contiguous. These condos are currently unfinished, allowing prospective tenants maximum customization. The corporate center boasts a total of 40 condominium units.

“With easy access to I-10, the Loop 101 and the Loop 202 Freeways, the Chandler Midway Corporate Center is located in an ideal commercial hub. Additionally, the newer product and surrounding retail and service centers add value to not only our asset, but to our tenants’ businesses as well,” said Steven Schwarz, Co-Founder and Principal of ViaWest Group.

“Chandler is a fantastic business city, poised for continued employment growth. We specialize in leasing up vacant space, so this opportunity fits our skills perfectly in a prime location.” said Gary Linhart, also a Co-Founder and Principal at ViaWest.

The company intends to sell the office condos and lease-up the vacancy of the larger office buildings to hold for investment. ViaWest will serve as the property and asset manager on the office buildings. The company continues to seek new acquisition opportunities throughout the Southwest.