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Liberty Signs Power-One for 105 KSF, Brings Sky Harbor Center to Full Occupancy10 Mar 2014, 3:37 am
By Amalia Otet, Associate Editor
Power-One Renewable Energy Solutions has signed a long-term lease with Liberty Property Trust for 105,000 square feet at Liberty Sky Harbor Center in Phoenix. The agreement brings the complex, which opened last year after a complete makeover and re-branding, to 100 percent occupancy.
Karl Tunberg of Midland Real Estate Alliance represented Power-One in the transaction, and Bob Crum of Ross Brown Partners was the building listing broker.
Power-One, a member of ABB Group, is a leading provider of renewable energy and energy-efficient power conversion and power management solutions and is the world’s second largest designer and manufacturer of photovoltaic inverters. Headquartered in Camarillo, Calif., the company has sales offices, manufacturing, and R&D operations in Asia, Europe, and the Americas. It had previously occupied the Liberty property in Phoenix on a month-to-month basis.
Located at 2626 S. 7th Street, Liberty Sky Harbor Center is an 185,834-square-foot Class A cross-dock distribution center that provides 67 dock doors, 360-degree truck access and more than eight acres of paved area for outside storage and trailer parking. Additionally, the facility offers convenient access to the I-10 and US 202 Freeways, as well as Sky Harbor Airport.
Liberty acquired the industrial outfit in 2012 from Beverly Hills, Calif.-based Emerik Properties Corp, according to data from PropertyShark. It underwent a major renovation in 2013, which included implementation of several green practices and sustainable enhancements. Liberty said it re-used 85 percent of existing structures on site; recycled asphalt, concrete and steel that was demolished as part of the redevelopment; installed upgraded radiant insulation with an R-30 value, and used low VOC paint throughout.
Power-One will take occupancy of the space this month, joining other tenants including Charter Towne Inc., which leased 44,868 square feet in August 2013, and American Beverage Corporation, the existing tenant in the building upon acquisition by Liberty.
Photo credit: Liberty Sky Harbor Center courtesy of Liberty Property Trust
Alberta Plans 187 M-F Units, Retail in Downtown Tempe4 Mar 2014, 4:10 pm
By Amalia Otet, Associate Editor
Greenwood Village, Colo.- based Alberta Development Partners has acquired a 1.9-acre parcel at the northwest corner of University Drive and Ash Avenue in the Mill Avenue District of downtown Tempe, where it plans to develop 187 apartment units and 40,000 square feet of ground-floor retail space.
PCCP L.L.C., a real estate finance and investment management firm provided a $5.7 million senior loan to Alberta to purchase and entitle the development site.
The seller, Brookfield Asset Management of Toronto, was represented by Barry Gabel and Chris Marchildon of CBRE Group Inc.’s Phoenix office, in conjunction with CBRE’s National Loan Sale Advisory Group. Alberta Development Partners negotiated the sale in house.
The property is “one of the single most sought-after vacant land parcels in the Phoenix metropolitan area,” according to Gabel.
With a shortage of grocery retailers in downtown Tempe, Alberta is seeking a grocery tenant to anchor the development. At present, the nearest grocer is a Safeway two miles away.
The community will be within walking distance of the Mill Avenue District and its 75 restaurants, shops and nightlife attractions, and close to the 60,000 students, faculty and staff at the nearby Arizona State University campus.
“Both Alberta and PCCP look forward to further contributing to the vibrant Mill Avenue District and delivering the proposed mixed-use project to the market,” said Philip Russick, principal with PCCP, in a statement. “There is a pent-up demand in the area for the product they are seeking to entitle and we feel this will be an ideal fit for the area.”
Despite an increase in multifamily completions last year, Phoenix’s steady employment growth and robust economy will allow housing supply and demand to remain well aligned. Approximately 4.500 units are projected to come online in 2014, an uptick from the 3.900 units completed last year. According to a forecast by Marcus & Millichap Real Estate Investment Services Inc., vacancy will fall 30 basis points to 6.9 percent this year. In 2013, vacancy dropped 40 basis points.
The Tempe/Arizona State University area remains even tighter, with vacancy declining to the low 4 percent range.
Chart via Marcus & Millichap’s 2014 Annual Report
Epoch To Make Phoenix Debut With $50M M-F Project; Jerry Simms Pays $45M for Scottsdale Retail Center21 Feb 2014, 7:26 pm
By Amalia Otet, Associate Editor
Winter Park, Fla.-based Epoch Properties Inc. is starting work on a $50 million multi-family project that would bring up to 292 new apartments to downtown Phoenix. Epoch plans a second-quarter groundbreaking for the project, which marks the Winter Park, Fla.-based company’s debut in metropolitan Phoenix. Completion is scheduled for early 2015.
Dubbed 11 Capital Place and 12 Capital Place, the property would comprise two four-story structures, each on top of one level of podium parking. A parcel located along the south side of Washington Street at 12th Street is targeted for 152 units and another 140 units are planned for the north side of Washington Street at 11th Street, Business Real Estate Weekly of Arizona reported. The communities will be adjacent to the 12th Street light rail stop.
Epoch bought the two parcels for $8.1 million in a deal structured by Mark Forrester and Ric Holway of Hendricks Berkadia.
The property is designed to attract young professionals with ties to the legal industry, Arizona State University’s downtown campus and Phoenix Sky Harbor International Airport. Archicon, the project’s architect, is designing studio, one-, two- and three-bedroom units ranging from 890 square feet to 1,500 square feet. Monthly rental rates are expected to run from $1,200 to $2,400. Epoch will also manage the properties.
In retail transaction news, an entity controlled by Jerry Simms, owner of the Turf Paradise racetrack in Phoenix, paid $44.5 million for Shea Scottsdale, a 160,228-square-foot retail center in the Scottsdale/Paradise Valley submarket.
Executive Managing Directors Michael Hackett and Ryan Schubert of Cassidy Turley’s capital markets group represented the seller, Los Angeles-based Karlin Real Estate. Marty De Rito of De Rito Partners in Phoenix represented the buyer.
Completed in 1994, the property is located at 10653 N. Scottsdale Road. Anchored by Safeway and CVS Pharmacy, the center was 95% leased at the time of closing. The transaction included all in-line space as well as additional sites with freestanding structures, including Wells Fargo, McDonalds, MidFirst Bank, Jason’s Deli and Arby’s.
Karlin Real Estate had purchased the asset in October 2011 along with an adjacent 117,025-square-foot retail center, Shea Scottsdale East at 7366 E. Shea Boulevard, for approximately $50 million. At that time, the two centers had a combined overall occupancy of 85%, according to Cassidy Turley. Karlin Real Estate has retained ownership of Shea Scottsdale East.
Shea Scottsdale Shopping Center via Karlin Real Estate website
KBP Realty Pays $8M for Deer Valley Flex Complex; Mark-Taylor Plans Upscale M-F Project in Scottsdale10 Feb 2014, 11:04 pm
by Amalia Otet, Associate Editor
In an $8 million deal, KBP Realty Advisors has acquired Turner Spectrum Ridge, a 68,195-square-foot industrial flex property in Phoenix, from Newport Beach, Calif.-based Turner Real Estate Investments. The price translates to about $117.98 per square foot.
Turner Spectrum Ridge is a four-building, multi-tenant development located at 21025 North 8th Way and 21045-21111 North 9th Place, in the Deer Valley submarket, just north of the 7th Street exit on the Loop 101 Pima Freeway.
Developed in 2009, the property was 93.5 percent occupied at the time of closing.
Senior Managing Directors Bob Buckley, Tracy Cartledge and Steve Lindley of Cassidy Turley’s capital markets group arranged the transaction.
“Spectrum Ridge’s location dynamics and configuration resulted in strong tenancy,” Buckley commented in a statement. “Combined with current positive leasing momentum, this set the stage for a competitive pursuit by numerous Investors looking for quality product with upside potential.”
In multi-family news, Business Real Estate Weekly of Arizona reports that Scottsdale-based Mark-Taylor Inc. has acquired a 16.7-acre tract in North Scottsdale, where it plans to build a 252-unit luxury multi-family community. The seller was LaSalle115 Holdings L.L.C.-Series 34 Villa Volterra, an entity affiliated with BMO Harris Bank in Chicago, as successor to M&I Bank.
Located at 7215 E. Silverstone Drive, the acreage is part of the 160-acre former location of the Rawhide Western Town theme park. Now rebranded as Silverstone, the old Rawhide site is being redeveloped with retail, multi-family and single family residential, senior housing and a planned office park.
A 12-acre upscale strip mall anchored by Sprouts is under construction at the southeast corner of Pinnacle Peak and Scottsdale roads, with delivery scheduled for late 2014/early 2015. Vi at Silverstone, a continuing care retirement community, opened at the site in 2010.
Mark-Taylor’s planned rental complex is designed by Architectural Design Group and will feature one-, two- and three-bedroom units averaging about 1,100 square feet. Monthly rents are expected to average around $1,430.
Groundbreaking is scheduled for mid-2015, followed by opening about 10 months later. Mark-Taylor Development will serve as contractor. Development will cost an estimated $45 million, according to BREW.
Photo credit: 21045-21111 North 9th Place in Phoenix via Google Maps
CSM to Reinvent Phoenix Office Building as Select-Service Hotel; W.P. Carey Pays $23M for Avnet HQ In Tempe31 Jan 2014, 10:59 pm
By Amalia Otet, Associate Editor
The hospitality company, a division of CSM Corp., completed the purchase on Dec. 20. “We look forward to working with Phoenix, which has been so supportive, to open the hotel in time for the city’s hosting of the 2015 Super Bowl,” said Bill Upshaw, president of CSM Lodging, in a statement.
Located at North Central Avenue and Monroe Street, the landmark property will undergo a $40 million makeover. Highlights include renovation of the Art Deco exterior, installation of new insulated windows; new mechanical, electrical and plumbing systems; and a complete refurbishment of the former bank lobby, which will serve as the main reception and gathering place for hotel guests.
The hotel will feature 165 guest rooms on 12 floors, a rooftop terrace, 5,000 square feet of meeting space, a business center, a 1,300-square-foot fitness center, and on-site parking. Additionally, the compound will host approximately 8,000 square feet of retail along Central Avenue.
As to the branding options, CSM Lodging tends to gravitate toward either Marriott or Hilton; but the dearth of Hilton product in downtown Phoenix should tip the scales in favor of the Hilton Garden Inn brand.
Upon opening, Hotel Monroe is expected to bring 105 jobs to downtown Phoenix marketplace, on top of 100-plus jobs created during construction and an overall economic impact of about $18 million.
In other news, W.P. Carey Inc. announced that CPA®:17-Global, one of its publicly-held, non-traded REIT affiliates, has acquired 8700 South Price Road (below left), a Class A office building in Tempe, for approximately $23 million.
Built in 2000, the 132,070-square-foot facility serves as the global headquarters of Avnet Technology Solutions, one of Avnet Inc.’s two operating groups. It is located on a nine-acre tract within the Arizona State University Research Park and has direct frontage on the Loop 101 freeway.
Commenting on the acquisition, Morgan Olsen, President of the Arizona State University Research Park board of directors and Arizona State University’s CFO, said in a statement: “We are delighted that W. P. Carey has purchased a property in the ASU Research Park. This acquisition validates the institutional quality of the facilities and tenants within the Research Park, currently home to 48 companies which provide over 4,500 high-quality jobs.”
Chris Toci, Chad Littell and Michael White of Cushman & Wakefield Inc. represented the seller, Atlanta-based Piedmont Office Realty Trust, in the transaction, according to AZRE Magazine.
Avnet, a major global distributor of electronic components, computer products and embedded technology, will continue to occupy the building under a long-term net lease. As part of its commitment to sustainability, the company is seeking to install solar panels to improve energy efficiency .
Photo credits: Professional Building courtesy of CSM Lodging; 8700 South Price Road courtesy of W.P. Carey Inc. via PRNewswire