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Buchanan Street Picks Up Office, M-F Properties for $43M

15 Apr 2014, 9:40 pm

By Amalia Otet, Associate Editor

Newport Beach, Calif.-based Buchanan Street Partners has teamed with Baron Properties of Denver to purchase Vue Park West, a 260-unit luxury apartment community in Peoria. The partnership paid $30 million for the complex, or $115,300 per unit.

Buchanan Street is currently on a buying spree, with eyes on California, Arizona, Nevada and Texas. The company is targeting properties in the $10 million to $100 million range.

“Vue Park West is an excellent example of the caliber of core-plus and value-add investments that we are making in select Western markets,” said Bob Dougherty, partner at Buchanan Street, adding that the venture was drawn to the asset’s cash flow and the prospect for rent growth in the West Valley market.

Completed by Wood Partners in 2008, the asset has reportedly enjoyed an occupancy rate of more than 90% since 2010, outperforming its submarket during that period.

Formerly known as Alta Park West, the community is located at 9680 W Northern Ave., within walking distance of the Park West lifestyle center and minutes away from Westgate Entertainment District. It also offers easy access to the Agua Fria (101) Freeway at West Northern Avenue.

The complex is a mix of studio, one-, two-, and three-bedroom units with island kitchens, vaulted ceilings, washer and dryer in the unit, garden tub and oversized closets. Common amenities include a business center, swimming pool, fitness center, pet park, eco-friendly environment, covered parking and gated access. Additionally, the new ownership plans to add value and re-position the property by implementing a series of improvements.

Further expanding its Phoenix footprint, Buchanan Street has acquired Mesa Corporate Center, a two-story Class A office building in Mesa, for $13.2 million. The seller was Parkway Properties in Orlando, Fla.

Located at 1001 W. Southern Avenue, the 106,077-square-foot property was 89 percent occupied at the time of closing, with a credit tenant roster that included Allstate Corp. and Carrington College (DeVry).

According to Brian Payne, vice president at Buchanan Street Partners, Mesa Corporate Center is a first-class property in a premier location and has amenities that broaden the firm’s offerings to present and potential tenants, and achieve further economies of scale.

Buchanan Street picked up the property at a 40% discount to estimated replacement cost and was attracted to the project’s current cash flow and the opportunity to participate in improving fundamentals as leases expire.

Photo credit: Vue Park West Apartment Homes in Peoria, Az. via Official Website

W. P. Carey Pays $43M for Chandler Office Building; Meritex Makes Local Debut With Industrial Acquisition

8 Apr 2014, 10:58 pm

By Amalia Otet, Associate Editor

In a $43 million deal, W. P. Carey Inc. has acquired a 183,000-square-foot Class A office building in the heart of Chandler’s Price Road Corridor, one of the Phoenix metro’s most sought-after office submarkets. The seller was Los Angeles-based Regent Properties.

The transaction was arranged by a three-member team of Colliers International brokers: Neil Glassmoyer, senior vice president; Tivon Moffitt, vice president; and Peter Bauman, senior associate, AZ Big Media reported.

Located at 2700 Frye Road, the three-story building serves as the West Coast regional headquarters of QBE Holdings, a global insurance company, which occupies the property under a 10-year-lease. Amenities include covered parking for more than 1,000 vehicles, a large cafeteria, reflective windows and significant IT infrastructure. The site offers additional development opportunities.

“The Price Road Corridor is Phoenix’s strongest submarket, with an 8.9 percent Class-A office vacancy,” said Gino Sabatini, W. P. Carey managing director and co-head of global investments, in a statement. “”The submarket – referred to as the ‘Silicon Desert’ – is filled with companies that specialize in research, technology, financial services and high-tech manufacturing. High-tech, professional and other ‘knowledge workers account for over 60% of Chandler’s workforce.”

In industrial investment news, Minneapolis-based Meritex Enterprises purchased a two-building industrial portfolio totaling 193,366 square feet in a deal that marks the company’s entry into the Phoenix market. The Class A properties are located at 21410 and 21415 North 15th Lane in the Deer Valley submarket.

At the time of closing, the buildings were 97 percent leased to ten tenants, including one that recently expanded by nearly 15,000 square feet. Both properties offer easy access to I-17 and Loop 101.

Tony Lydon and Pat Harlan, both managing directors with JLL, represented Meritex. Metro Commercial Properties will continue to handle management duties for the assets, and John Pompay of Cassidy Turley has been retained as the listing agent.

Meritex’s chief investment officer, Dan Williams, said in a statement that the firm will seek additional investment opportunities in the Phoenix area as part of its strategy to expand and diversify its industrial portfolio.

Photo courtesy of W.P. Carey Inc. via official website

Mentor Properties Buys Peoria M-F Asset for $10.8M; Exeter Property Group Grabs Distribution Center in $13M Deal

2 Apr 2014, 2:26 pm

By Amalia Otet, Associate Editor

In a $10.8 million deal, Mentor Properties Inc. has acquired Monterey Pines, a 216-unit apartment community in the Peoria suburb of Phoenix. The price translates to $50,000 per unit.

Murano Properties, the seller, was represented by Cliff David, a vice president with Marcus & Millichap Real Estate Investment Services Inc., and Steve Gebing, a senior director with Institutional Property Advisors, a Marcus & Millichap affiliate. David and Gebing, who are based in Phoenix, also advised the buyer.

“Monterey Pines is located within a submarket that is poised for smart growth through the city of Peoria’s 10-Year Capital Improvement Plan for fiscal years 2013-2022,” David commented in a statement. “The plan is a $463 million investment in 166 different capital projects focused on coordinating efforts with schools, utilities, developers, and other agencies for the express purpose of creating sustainable community assets.”

Developed by Hrebec Properties in 1984, Monterey Pines is located on 10 acres at 8650 West Peoria Ave., near the Cardinal Stadium and the Loop 101 Freeway. The apartment units feature oversized walk-in closets, individual exterior storage rooms and covered private patios/balcony decks. Common amenities include two swimming pools and a spa, a poolside ramada with built-in barbecues, a newly integrated and lighted sport court, horseshoe pit, shuffleboard, playground and picnic area, reserved covered parking, contemporary clubhouse and complimentary Wi-Fi connectivity in the clubhouse and pool area.

Additionally, the property is near the Bell Road retail corridor, which is anchored by Arrowhead Towne Center, a 1.2 million-square-foot super-regional mall.

In industrial investment news, Plymouth Meeting, Pa.-based Exeter Property Group purchased Prologis Riverside Distribution Center, a 250,796-square-foot facility in southwest Phoenix, for $13.2 million. The seller was Prologis.

Located at 2225 South 43rd Avenue, the distribution center offers direct access to both Interstate 10 and Interstate 17, as well as U.S. Route 60 and Loop 101. Occupancy was 44 percent at the time of sale.

Cassidy Turley Executive Managing Directors Andy Markham and Mike Haenel and Vice President Will Strong negotiated the transaction on behalf of the buyer and seller.

According to Cassidy Turley, Exeter Property Group plans to lease the remaining space to a corporate tenant seeking to take advantage of the central location, efficient layout and modern features of the asset.

Photo credit: Monterey Pines apartment complex via official website

Cohen Acquires 395 KSF Industrial Building; Liberty’s Aetna Building Awarded LEED Silver

24 Mar 2014, 9:51 pm

By Amalia Otet, Associate Editor

Jersey Industrial Capital L.L.C., an affiliate of Cohen Asset Management Inc., has acquired 43rd Avenue Logistics Center, a newly developed 394,775-square-foot industrial building in Phoenix.

Completed in 2013, 43rd Avenue Logistics Center is a LEED-certified, state-of-the-art distribution facility located in the southwest Phoenix industrial area. The property has rail access and is situated close to Interstates 10 and 17 as well as State Routes 143, 101, 202 and 303. The building was jointly developed by a local sponsor and a regional bank that had previously foreclosed on the site. The asset was purchased in an off-market transaction using joint venture equity funding secured by HFF. Senior managing director Paul Brindley, senior managing director Wally Reid, and associate director Jeff Sause of HFF represented the buyer.

The acquisition represents the 17th for Cohen in metro Phoenix. “Our acquisition of 43rd Avenue Logistics Center is the latest example of our capabilities in sourcing and closing well-located off-market industrial properties in vibrant infill submarkets such as this area of Phoenix,” said president & CEO Bradley Cohen. “Further, with the sale of the Rancho Cucamonga property in Southern California, we were able to recycle capital into an opportunity to create additional value for our investors in a capital-efficient and tax-efficient transaction.”

Meanwhile, Liberty Property Trust has been awarded LEED Silver certification for its newly-opened property at 4500 E. Cotton Center Blvd. (pictured at right). The two-story property is fully leased to Aetna, the diversified insurance and financial services firm.

Designed by Balmer Architecture Group, the 139,403-square-foot Class A office building was completed in 2013 and incorporates sustainable construction materials; highly efficient lighting, cooling and fan systems; and a building envelope with windows and insulation that minimize the sun’s heat. Wespac Construction served as general contractor.

Photo credit: Liberty Property Trust

Liberty Signs Power-One for 105 KSF, Brings Sky Harbor Center to Full Occupancy

10 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

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