Home » MHN City Pages  »  Phoenix  

WP HTTP Error: A valid URL was not provided.

BKM Capital Acquires Black Canyon Business Park, Plans $5M Upgrade

24 Oct 2014, 9:48 pm

By Liviu Oltean, Associate Editor

Black Canyon Business Park

BKM Capital Partners plans a major upgrade for Black Canyon Business Park in Phoenix after buying it as part of a three-property, $42.8 million deal. The Irvine, Calif.-based firm acquired the asset for $13.1 million or $59.71 per square foot.

Also included in the portfolio was Hayden Island Business Park in Portland, Ore., and Patrick Commerce Center in Las Vegas.

Shortly before the acquisition, the 219,410-square-foot Black Canyon property lost its main tenants, which cut occupancy from 95 percent to 34 percent. BKM is planning to invest over $5 million in the asset, with an eye toward repositioning Black Canyon as a traditional multi-tenant industrial park.

The acquisition was the first for BKM Industrial Value Fund I L.P., a $300 million commingled fund scheduled to close next March, according to Brian Malliet, the firm’s CEO.

“We are active on both the acquisition and capital raising fronts as we near the close of a productive 2014,” Malliet said in a statement. “I believe we are the only fund manager in market specifically targeting value-add multi-tenant industrial properties in this geography. As such, we are excited at the opportunity to assemble within the fund an optimal portfolio of assets precisely fitting our investment criteria, starting with these three.”

“Undermarket opportunities still exist in the multi-tenant industrial niche. We have been successful in finding and acquiring properties at approximately 40 percent off replacement cost and 50 percent off peak market value on a per square foot basis,” Malliet added. ‘Buying right’, as we say, and then fixing what is broken in each acquisition, are the fundamentals of our strategy.”

Image Courtesy of BKM Capital Partners via Official Website  

Hines Plans Early 2015 Construction Start For Chandler Mixed-Use Project

18 Oct 2014, 9:49 pm

By Liviu Oltean, Associate Editor

Rendering of the Chandler Viridian

Paving the way for development of a mixed-use project near Chandler Fashion Center, Hines has closed on the acquisition of a 25.5-acre site at the northwest corner of the Loop 101 and Loop 202 Interchange, the company announced Oct. 15.

Dubbed Chandler Viridian, the project will include luxury apartments, a six-story hotel, a central plaza with 250,000 square feet of Class A office and a pedestrian promenade with retail space.

Hines’ plans have been delayed by “significant legal complications related to the unfinished Elevation Chandler project,” the firm explained in a statement. That partially built hotel  has occupied the site since it was abandoned by its developer in 2006. Hines plans to demolish the structure in December.

“Chandler Viridian will expand the area’s economic engine by creating a true live, work and play environment. The visibility and walkability of Chandler Viridian exceeds many other mixed-use projects in the area,” said Chris Anderson, Hines’ managing director and local city leader, in a statement. “Hines is excited to develop the last available site adjacent to the Chandler Fashion Center and complete the master plan envisioned by the Chandler City leadership and citizens over 15 years ago.”

Phoenix-based Alliance Residential will start construction in the first quarter of 2015 on Chandler Viridian’s residential component, a high-end apartment complex. Construction of the vertical infrastructure for the hotel, retail and office components is scheduled to begin during the second quarter.

“This is a high-profile site in the midst of the Price Corridor, and the entire community will benefit from having a new project there,” said James Smith, the city’s acting economic development director. “This is the moment our residents have been waiting for – to see that failed structure come down, and new development take its place.”

Rendering Courtesy of Hines via Official Website 

Catellus Wins Nod to Develop ASU’s Athletic Facilities District

12 Oct 2014, 2:32 pm

By Liviu Oltean, Associate Editor

The Tempe Campus from Atop Hayden Butte

Arizona State University has enlisted Catellus Development Corporation as master developer for its ASU Athletic Facilities District, a 330-acre mixed-use development. Envisioned as a model for urban neighborhood design and sustainability, the district will be located at the northeast end of ASU’s Tempe campus. The site will border the campus, downtown Tempe and major collegiate and amateur sports venues.

Backed by 2010 state legislation that promotes the creation of revenue districts on land owned by state-supported universities, the project will provide financial returns to ASU, while also providing economic benefits to the city, according to university officials. ASU will be able to use property tax revenue for the construction and improvement of athletic facilities, according to ASU News.

“With a strong partner in the City of Tempe, a unique location and the unlimited potential of the young men and women who graduate from ASU every year, this project should be one of the most attractive sites for the development in the nation,” said ASU president Michael Crow said in a statement. “We look forward to working with Catellus and leaders throughout the city and the region to build out this vital new part of Tempe.”

The project, which is expected to have a 10-year to 20-year buildout, could create 7 million to 11 million square feet of multi-family, commercial and retail space.

“We have a long way to go, and this is just the beginning, “said John Creer, ASU’s assistant vice president for real estate development. “No decisions have been made about what happens or where things go. What comes first is studying the infrastructure needs of this large piece of property and understanding the market conditions of what is possible. We will have a public planning process with meetings, open houses and community engagement – it’s going to be a collaborative process.”

Image via Wikipedia 



OliverMcMillan Unveils Plans for Apartment Community in Tempe

3 Oct 2014, 9:27 pm

By Liviu Oltean, Associate Editor

OliverMcMillan recently detailed plans for SALT, a 265-unit, Class A apartment community in Tempe. The project will be located on a 3.7-acre tract in the Hayden Ferry Lakeside master-planned community, which also includes residential, hospitality and office components.

SALT will offer one-, two- and three-bedroom units. Amenities will include two pools, a spa, a yoga lawn, poolside cabanas, multiple barbecue areas, landscaping and frontage on Tempe Town Lake. Residents will also have access to media and social rooms and a gym equipped with cardio machines, free weights and resistance training machines.

“We created a modern, multi-family community that offers easy transition between indoor and outdoor living, drawing inspiration and vital energy from both environments, “ said OliverMcMillan CEO Morgan Dene Oliver said in a statement. “The location near Mill Avenue and Tempe Town Lake inspired the multi-faceted idea of SALT – our take on contemporary elemental living that we think will be very enjoyable for residents.”

The development team comprises Amstar, the equity partner; Comerica, the construction lender and Adolfson & Peterson Construction, which will serve as general contractor. “We brought together a fantastic team to make SALT stand out for its contemporary design and livability,” said Eric Buchanan, OliverMcMillan’s managing director of acquisition and development.

Founded in 1978 by Dene Oliver and Jim McMillan, San Diego-based OliverMcMillan has designed, developed and managed properties totaling more than eight million square feet. In Tempe, the firm developed the two-building Regents Center, located 1.5 miles from Arizona State University.

Renderings Courtesy of OliverMcMillan 

American Traffic Solutions Picks Mesa Office Campus for 108 KSF Headquarters

27 Sep 2014, 7:25 pm

By Liviu Oltean, Associate Editor

Waypoint at Riverview

American Traffic Solutions recently made public its plan to relocate over 600 employees to The Waypoint in Mesa, a 19.5-acre Class A office campus being developed by Harvard Investments and Lincoln Property Co.

ATS will consolidate operations in its new 108,000-square foot headquarters in November 2015. Harvard Investments and Lincoln also plan a companion 150,000-square-foot building, which is available for single or multiple occupancy, Harvard Investments noted in a statement.

The Waypoint site is located six miles east of Phoenix Sky Harbor International Airport and is accessible via a half-diamond off Loop 101 at Rio Salado Parkway as well as two full-diamond interchanges along the Loop 202 at Dobson and Alma School roads.

Upon completion, Waypoint will join an existing Hyatt Place Hotel and a 180-room Sheraton Hotel slated to open in March, 2015. Mesa Riverview, a 1.3 million-square-foot retail, hospitality and entertainment complex, will also be a neighbor.

“We welcome American Traffic Solutions, the national leader in its industry, to Waypoint and are thrilled the corporate
environment we are creating resonates with their leadership team,” Craig Krumwiede, president of Harvard Investments, said in a statement. “We anticipate a great fit for their employees who will be within walking distance of the shopping center, restaurants, theater, park and Cubs stadium. The proximity to Arizona State University and Tempe Town Lake also adds to the location’s attraction.”

Rendering Courtesy of Harvard Investments 

Leave a Reply