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Wood Partners, PREI Close on M-F Project Site; NewQuest Epic’s Big Buy Includes Phoenix Asset

29 Aug 2014, 9:52 pm

By Liviu Oltean, Associate Editor

A joint venture of Wood Partners and Prudential Real Estate Investors has closed on a downtown Chandler site in the South Arizona Avenue Corridor where the partners plan to build a 301-unit apartment project, Business Real Estate Weekly of Arizona reported.

The joint venture, PR III/Wood Chandler Apartments L.L.C., will develop the asset on the former site of the CMC Steel plant, which closed in 2009.

Dubbed Alta Steelyard Lofts, the property will be located on about six acres at the southeast corner of Washington Street and Frye Road. The South Arizona Avenue Corridor Study deemed the location deemed suitable for high-density residential development.

Biltform Architecture is the project’s designer, and the contractor is WP West Builders Arizona L.L.C., an affiliate of Wood Partners. Tony Lydon and Marc Hertzberg of JLL’s Phoenix office arranged the transaction.

A linchpin of the deal was the 25-year Government Property Lease Excise Tax rate obtained by Wood Partners. Under the terms of the GPLET rate, the property is valued at $0.76 per square foot, the standard rate for high-density residential projects and considerably lower than the property’s market value.

In retail investment news, NewQuest Epic Investments L.L.C. acquired Village Center, a 171,129-square-foot community center located at 4304-4326 E. Cactus Road, BREW reported. According to NewQuest Epic’s website, the property is one of nine acquired from Phillips Edison as part of a six-state, 1.35 million-square-foot portfolio.

Village Center is anchored by Target and Dollar Store and, according to BREW, was 98 percent leased at the time of the sale. Among its neighbors is Paradise Valley Mall, a 1 million-square-foot regional mall owned by Macerich.


Realty Executives Phoenix Sells to Kinetic Cos.

25 Aug 2014, 4:52 am

By Liviu Oltean, Associate Editor

Realty Executives Phoenix recently announced that it has been acquired by Kinetic Cos., a Phoenix-based real estate investment firm. Operations will continue under the Realty Executives name so as to continue the company’s 49-year-old tradition.

Founded in 1965 by Dale and June Rector, the family-held company has been managed for several decades by the son, Rich Rector, who continues to have an ownership share in Realty Executives International. The company is one of the largest brokerage firm in the U.S., with 11 branch offices and dozens of satellite offices throughout the state of Arizona, and it holds an impressive international presence – nearly 700 franchises in 12 countries around the world, with approximately 11,000 sales associates.

It was the first company to operate on 100 percent commission, which led it to rank among the leaders of the top 1 percent, according to a 2014 research report from Real Trends. Last year’s financial reports showed that the company’s agents averaged in excess of $85,000 in commissions, while the company brokered nearly $2.2 billion in transactions.

“Realty Executives is an agent-centric brand that aligns with our values and philosophy as a company,” said Jeff Murtaugh, partner with Kinetic Cos. “The company’s future is bright. We will continue to improve upon our brand and grow the Realty Executives family by developing the tools needed to increase career success.”

ASU Taps Gould Evans, HNTB for Sun Devil Stadium Makeover

11 Aug 2014, 1:37 am

By Liviu Oltean, Associate Editor

The Sun Devil Stadium

Arizona State University has tapped Gould Evans and HNTB Corp. to lead the architectural and design renovations of its Sun Devil Stadium.

“We have reached an important milestone in the reinvention of Sun Devil Stadium,” said Ray Anderson, Vice President for University Athletics. “While preliminary conceptual work has been done for purposes of planning and programming considerations, today’s announcement means we are shifting gears and that the vision starts being transformed into concrete plans.”

Planned enhancements include an expanded student section, a new concourse experience, better seating, more restrooms, improved concessions, a video board and sound system, in-stadium technology, accessibility improvements and an air-conditioned club. The renovation will be funded entirely by private donations and new revenue streams.

This past spring, 5,700 seats were removed as an initial step. Redevelopment will proceed in phases so as not to hinder team activities and is slated to be completed in 2017.

“Gould Evans is thrilled to have this opportunity to re-engage a great partner like ASU on their next signature project!” said Krista Shepherd, principal with Gould Evans. “We have had a strong relationship with ASU delivering complex iconic projects and we couldn’t imagine not being part of this one. We look forward to transforming this most visible ASU venue to enrich campus and community life and enhance the uniqueness of the desert setting.”

P.B. Bell, Stonecutter Purchase $168.5M Phoenix M-F Portfolio

3 Aug 2014, 8:16 am

By Liviu Oltean, Associate Editor

Alante at the Islands

P.B. Bell of Scottsdale and Stonecutter of New York City have completed the acquisition of a $168.5 million portfolio of seven multi-family properties comprising 2,759 units from Standard Phoenix Fund. The transaction is Phoenix’s largest multi-family deal so far this year.

Cindy Cooke, a senior executive vice president at Colliers International, and Brad Cooke, a Colliers vice represented the seller. “It was P.B. Bell’s in-depth knowledge of the assets and the submarkets that helped separate them from the other buyers,”  Cindy Cooke commented in a statement. “We were impressed with their upfront due diligence and ability to transfer their local knowledge to their New York equity partner. They executed the transaction smoothly and even removed contingencies a day early.”

The Cooke team arranged the sale of the assets in 2007, when the seven properties traded as part of a 12-property, $427.5 million portfolio.

The properties are:

  • Alante at the Islands: 2222 N. McQueen Road, Chandler; Class A, 320 units, built in 1996
  • Crosswinds: 868 S. Arizona Ave., Chandler, Class B, 374 units, built in 1985
  • Laguna Village: 102 W. Palomino Drive, Chandler, Class B, 460 units, built in 1985, 364,440 SF
  • Tuscany Palms: 901 S. Country Club Drive, Mesa, Class B, 582 units, built in 1986
  • Whispering Meadows: 1050 S. Longmore St., Mesa, Class B, 432 units, built in 1979
  • Sienna Springs: 5128 N. 15th St., Phoenix, Class B, 395 units, built in 1973
  • Tela Verde: 5020 W. Thunderbird Road, Glendale, Class B, 196 units, built in 1984


Five of the properties are located in the Southeast Valley submarket, one is in the Camelback Corridor and one is across from Arizona State University’s West Campus.

“The properties’ strong locations with stable occupancy of 96% set it up for a perfect position for upgrading the interiors and improving the exterior,” Brad Cooke said in a statement. “P.B. Bell intends to use the transaction as a springboard to acquire more products. This portfolio of seven properties represented exactly that.”

 Image Courtesy of Colliers International, Cooke Multi-Family Investments




TruAmerica Multifamily, Berkshire Group Pay $35M for Avenue 25 Apartments in Phoenix; Security Properties Buys Mesa M-F Asset

27 Jul 2014, 2:49 pm

By Liviu Oltean, Associate Editor

In a $35.4 million deal, TruAmerica Multifamily and an affiliate of Berkshire Group have acquired Avenue 25 Apartments in Phoenix.

Comprising 254 units in 19 buildings, Avenue 25 features one-, two- and three-bedroom layouts. Amenities include an electric car-charging station, recreation and fitness center, pool area, a dog park and a business center. The asset has high visibility along  Interstate 17 and is convenient to the U.S. 101-Interstate 17 interchange. Financing for the off-market transaction entailed $24.78 million in pre-stabilization debt provided by Capital One Commercial Bank.

“We are pleased to add Avenue 25 Apartments to our portfolio and acquire an attractive asset alongside a high-quality partner,” said Eric Draeger, Senior Vice President, Head of Equity & Debt Transactions for Berkshire. “We are excited about prospects for the Phoenix market given the turnaround in its fundamentals. We will continue to seek opportunities in the region, which is an area of focus for our investment funds.”  The property’s new co-owner, TruAmerica Multifamily, is a company formed last year by Robert Hart, the former CEO of Kennedy Wilson Multifamily Management Group, and Guardian Life Insurance Co. of America,

In other multi-family transaction news, Sonora Canyon Venture L.L.C., an affiliate of Seattle-based Security Properties Inc., recently acquired the 388-unit Sonora Canyon complex in Mesa for $30 million, or $77,320 per unit. Business Real Estate Weekly of Arizona reports that the seller was LSREF2 Oreo L.L.C., an affiliate of Lone Star Funds. Completed in 1985, the complex was acquired by Lone Star as part of a $1.2 billion portfolio deal, which included apartment projects, industrial buildings, hotels and land.

Prudential Mortgage Capital Co. L.L.C. provided $25 million in financing for the acquisition, which was brokered by Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE Group Inc.’s Phoenix office. The acquisition of the Sonora Canyon complex increases Security Properties’ multi-family portfolio in Arizona to 1,418 units.

Image Courtesy of Sonora Canyon , through RentCafe

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