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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

Consolidated Investment Group Buys Student Housing Property in Tempe for $38.7M

19 Jul 2014, 4:25 am

By Liviu Oltean, Associate Editor

Denver-based Consolidated Investment Group (CIG) recently announced the $38.7 million acquisition and planned refurbishment of a 225-unit, 640-bedroom student housing property located near Arizona State University in Tempe. Renamed Regents on University, the property formerly known as Block 1949 will be renovated before the beginning of the new school year.

Regents on University

As reported by the Business Real Estate Weekly of Arizona, the acquisition was made by three tenant-in-common entities. Two of them, Regents Tempe RE L.L.C. and Regents Tempe RE II L.L.C. were sponsored by CIG.  The former paid $21.38 million for 5 percent ownership interest, while the latter paid $11.5 million for an approximately 30 percent stake.

The third entity, CWS 1949 L.L.C, formed by CWS Capital Partners LLC acquired the remaining interest for $5.8 million. The seller, Block 1949 LLC, was assisted in the transaction by Hanover Street Capital, an advisor to Deutsche Bank, while John Cunningham and Charles Steele of Jones Lang LaSalle in Phoenix served as brokers.

“This property presents a unique opportunity for us to add value through improved management, capital improvements, and a complete re-branding of the building,” said CIG’s Vice President of Real Estate, Tim Bertoch. “We are focused on immediately implementing our improvement plan which will establish Regents on University as one of the premier student living experiences in Tempe.”

The company’s renovation plan includes new pool furniture with a full outdoor kitchen/bar area, a new game room, an added study room with new computer and printing stations, a community fire pit with seating area and the addition of a new fitness  room.

Photo Courtesy of Consolidated Investment Group

Buchanan Street Buys Stapley Corporate Center in Mesa for $33M

13 Jul 2014, 3:24 pm

By Liviu Oltean, Associate Editor

Buchanan Street Partners recently acquired Stapley Corporate Center, a two-building, Class A office property in Mesa. Located at 1840 and 1910 South Stapley Drive, the asset was purchased for $32.5 million from The DESCO Group, Inc.,  the buildings’ developer.

The Stapley Corporate Center

Totaling 181,934 square feet, the center is 90 percent occupied by such tenants as Cigna Healthcare and Wells Fargo. The transaction was brokered by Chris Toci and Chad Little of Cushman & Wakefield  Inc., while Mark Gustin of JLL Inc. will continue to handle leasing.

Amenities include close proximity to Sky Harbor International Airport and more than 2 million square feet of retail within a quarter of a mile.

“This property will continue to attract top tenants seeking high-image office space in the East Valley, based both upon the quality of the building and the continued Phoenix recovery,” said Brian Payne, a Buchanan Street vice president, in a statement.

Buchanan Street’s most recent acquisition increases its Phoenix holdings to more than 1.4 million square feet. As part of its value-added investment strategy, this year the company has also acquired Mesa Corporate Center, a 106,077-square-foot office building in Mesa, and Vue Park West, a 260-unit luxury apartment community in Peoria .

Image Courtesy of Buchanan Street Partners 

Glendale Office Complex Trades for $9M; Pacific Realty Advisors Plans Industrial Project in Mesa

8 Jul 2014, 4:03 pm

By Liviu Oltean, Associate Editor

In a $9.1 million deal, Select Healthcare Solutions L.L.C., Phoenix Cyberknife and Radiation Oncology Center L.L.C. have acquired Zanjero Falls, a 147,405-square-foot Class A office property at 7410 N. Zanjero Blvd. in Glendale. The sale and purchase agreement includes about 10 developable acres.

Completed in 2008 but never occupied, Zanjero Falls comprises a one-story and three-story office building. Distinctive design elements include Spanish Colonial architecture, Cantera stone and wrought iron, resort-style landscaping with synthetic turf and a signature water feature and bridge at the main entrance.

“The sale of Zanjero Falls to Select Healthcare Solutions and Phoenix Cyberknife is an indication we are continuing to see improvement in the West Valley office market,” said Cassidy Turley Senior Managing Director Steve Lindley in a statement. The transaction was arranged by a Cassidy Turley capital markets team that included Lindley and fellow Senior Managing Directors Bob Buckley and Tracy Cartledge; Executive Managing Director Eric Wichterman; and Senior Vice President Mike Coover. TJ Zaharis of COBE Real Estate represented the seller, RCFC Zanjero Falls.

In local development news, Pacific Realty Advisors will break ground this year on a 211,505-square-foot industrial project in Mesa, according to a statement from Cassidy Turley. Situated at the northwest corner of Broadway and Dobson roads, the project will consist of a 147,670-square-foot warehouse and distribution building and a 63,835-square-foot general industrial building. The former will have 32-foot clear height with 28 dock- and five grade-level doors, while the latter will have 26-foot clear height with 10 truck-well- and 12 grade-level doors.

“Clearly, there is major demand for this product type in the Southeast Valley,” said Cassidy Turley Executive Managing Director Andy Markham. “This location is also ideal for distribution and general industrial given its proximity to three major freeways and deep employment base.”

Photo Courtesy of Cassidy Turley

UMOM Details Plans for Affordable Housing Project in Sunnyslope

30 Jun 2014, 4:46 pm

By Liviu Oltean, Associate Editor

A new affordable housing project is coming to the Sunnyslope neighborhood of Phoenix through the efforts of UMOM New Day Centers and the financial support of the Arizona Department of Housing (ADOH) and The Bob & Renee Parsons Foundation. On June 6, ADOH granted UMOM $9.4 million in financing for the project, followed by The Bob & Renee Parsons Foundation with a $3 million donation.

The financing will allow UMOM to break ground in early 2015 and complete the project by the fall. In addition, the $12.4 million will also finance a 5,500 square foot community service center, which will provide job search assistance, GED tutoring and wellness programs.

Darlene Newsom, CEO

“The financing from the Arizona Department of Housing and funding from The Bob and Renee Parsons Foundation will allow UMOM to continue toward our goal of providing every family in need with an affordable place to live,” said UMOM CEO Darlene Newsom. “The additional housing units will go a long way to support the ever growing need for affordable housing in our community.”

In 2011, UMOM purchased North Mountain Lodge Motel in the Sunnyslope area. The dilapidated motel will be demolished to make way for UMOM’s affordable housing project, which will offer one-, two- and three bedroom units. At least 34 will be designated for chronically homeless individuals and families, with preference given to veterans.

“The idea of standing idle while a wait list for affordable housing grows is simply not an option,” said Bob Parsons, founder of Scottsdale-based GoDaddy. “There are families in this community who need a leg-up and a second chance at becoming first-class citizens. Renee and I have every intention to help make a long-term difference in the fight to end homelessness in the greater Phoenix area, and we believe that UMOM’s new housing community is a great next step.”

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