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Faris Lee Closes $22M Sale of Watson Marketplace in Buckeye

19 Sep 2014, 10:30 pm

By Liviu Oltean, Associate Editor

Watson Marketplace

Faris Lee Investments, an Irvine-based retail advisory and investment sales firm, recently announced that it helped close the $22 million sale of Watson Marketplace, a fully-leased 90,000-square-foot retail center in Buckeye. The transaction comprised 55,153 square feet of retail space leased to national credit and regional tenants such as Goodwill, Denny’s and The UPS Store; plus two retail pads totaling about 10,000 square feet and ground-leased to McDonald’s and Bank of America.

Senior Managing Director Matthew Mousavi and Managing Directors Chris Tramontano and Patrick Luther of Irvine, Calif.-based Faris Lee represented the seller, Desert Troon Companies, which also developed the property. The buyer, San Diego-based Interstate Holdings, was represented by  Tramontano and Faris Lee Investments Director Tom Chichester.

Located at 441–733 S. Watson Road, the center is part of the South Watson Road retail corridor and is across the street from Sundance Towne Center, which features high-profile tenants such as Walmart Supercenter and Lowe’s. Spread across approximately 19.5-acres, Watson Marketplace also boasts a high traffic count due to its proximity to Interstate 10.

“Faris Lee implemented a breakup strategy for the property,” said Tramontano in a statement. “Marketing the anchored portion of the center and the two ground-leased retail pads individually would maximize value and meet the seller’s objective of selling the entire project this year. We secured several strong offers, particularly for the McDonald’s and Bank of America pads, which were in the low 4 percent cap rate range. However, the San Diego buyer required a larger transaction as part of the up-leg of its 1031 Exchange. Because of this, we negotiated an attractive, all cash-offer with an aggressive blended cap rate for the entire center.”


Lease Deal Paves Way for $350M USA Place Project in Tempe

13 Sep 2014, 3:47 pm

By Liviu Oltean, Associate Editor

Susan Eastridge, CEO of Concord Eastridge

In a milestone for the $350 million USA Place project in Tempe, the developers and Arizona State University officials have reached agreement on a 99-year lease for a site near the school’s campus. The deal paves the way for a December groundbreaking.

Located on an 11-acre site on the east side of Mill Avenue, USA Place will consist of a 220-room Omni Hotel, a 4,500-seat event center, a 30,000-square-foot conference center, 500 luxury apartments, 160,000 square feet of retail, and up to 200,000 square feet of office space, as CPE reported in August 2013. USA Place will also be the future headquarters of USA Basketball, the national governing body for men’s and women’s basketball.

The development team, USA Place L.L.C., is led by Susan Eastridge, CEO of Concord Eastridge; Michael Hallmark, co-founder of Future Cities, the project’s master planner; and Robert Harris, CEO of Harris Sports & Entertainment.  Their initial plan was a phased build-out, but that is no longer the case, as the The Arizona Republic reported.

“This is an exciting and an incredible opportunity that offers nothing but positives for USA Basketball,” said USA Basketball chairman Jerry Colangelo in an statement. “USA Place will offer USA Basketball an excellent site for the development of its office headquarters, a training center and event center that will provide the organization with a first-class site for hosting junior level events and will allow USA Basketball to continue to evolve.”


NexMetro to Develop Hybrid Single-Family Home Community in Goodyear

7 Sep 2014, 7:09 pm

By Liviu Oltean, Associate Editor

NexMetro advanced its plan to develop 125 single-family rental homes in Goodyear in late August when it closed on the acquisition of a 9.7-acre site at the northwest corner of Falcon Drive and Indian School Road. The development will be part of the 9,000-acre Palm Valley master-planned community.

Dubbed Avilla,  NexMetro’s residential project will be a hybrid. It will offer the physical separation and private backyards typical of single-family homes. As with multi-family communities, however, maintenance and landscaping will be handled by a property management company rather than by the residents.

“Goodyear is a growing, vibrant city and Avilla Homes is a great addition to our community,” noted Mayor Georgia Lloyd in a statement. ” This project gives our diverse population–including our military families–quality housing options.”

The project responds to the growing demand by Millennials and Baby Boomers for residences without mortgages. NexMetro’s portfolio includes about 1,300 homes completed or under construction.

NexMetro has already established a local presence in Chandler, where it has completed 112 units n the first phase of Avilla San Marcos. The second phase is scheduled to this month.

“Out of the many sites we researched for future development for Avilla throughout the Sunbelt, Goodyear, featuring the Palm Valley master-planned community, was the next logical location for us to build, as it is primed to provide the lifestyle that consumers are seeking,” said Josh Hartmann, executive vice president of NexMetro, in a statement. “Goodyear continues to be one of the fastest growing submarkets in Phoenix and the demographics lend themselves well for an Avilla neighborhood.”

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.”

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