GOODYEAR – In a deal BREW reported to be in the works in July, an affiliate of Nike Inc. of Beaverton, Ore. (NYSE:NKE) has paid $69,832,600 ($77.45 per foot) to purchase an industrial facility in Goodyear that is expected to have 500 employees in a new manufacturing operation. The 901,700-square-foot industrial facility, located just south of Van Buren Street at 575 S. 143^rd Avenue, was developed and sold by a venture formed by Lincoln Property Co. (LPC) of Dallas, Tex. and Goldman Sachs Group Inc. of New York City, N.Y. (NYSE:GS). John Werstler, Cooper Fratt and Rusty Kennedy of CBRE in Phoenix had the marketing assignment on the speculative project and represented the seller. John Grady and Jackie Orcutt of CBRE represented the buyer. Maricopa County records show Nike IHM, Inc. (Nike affiliate) acquired the property in a cash transaction. GSLP Goodyear LLC (Goldman Sachs/Lincoln Property entity) was the seller. David Krumwiede, regional partner for LPC in Phoenix, spearheaded the development of the building known as Lincoln Logistics 40 (LL40). In October 2017, BREW reported LPC and Goldman Sachs joining forces and planning to develop the big box, warehouse-distribution project on a spec basis without any tenant commitment. GSLP Goodyear LLC paid $9.24 million ($4.25 per foot) to purchase the 49.92-acre, fully-improved site in November 2017 and the venture completed construction of LL40 late last year. Nike IHM will use the Interstate 10 Corridor facility as a manufacturing plant to produce the mid-sole cushioning portion of its athletic shoes. According to a well-documented Job Creation Agreement between the City of Goodyear and Nike IHM, the world’s largest supplier of athletic shoes and apparel will receive roughly $2 million in incentives in the form of job creation funding up to a maximum of $1.02 million and almost $995,000 from waiving/reimbursing plan review and permit fees for phase one. In return, the wholly-owned subsidiary of Nike Inc. that does business as Air Manufacturing Innovation (Air MI) will create up to 505 full-time jobs by 2025 ($42,614 average annual salary) and acquire the Goodyear building. Roughly 500,000 sq. ft. targeted for use in the initial phase is to be occupied by June 1, 2020, and within three years from the executed agreement date, Air MI will invest a minimum of $184.5 million in tenant improvements and capital equipment for phase one. The advanced manufacturing operation will be the company’s third such plant in the U.S. Believed to be to the largest spec structure ever to be built in the Valley with 40-foot clear height, Nike’s newly-acquired building also has 3,200 sq. ft. of fully improved office space. The facility is within The Airport Gateway at Goodyear, a 350-acre business park targeted for up to 3.5 million sq. ft. of industrial, office, hotel and retail space in an area that has foreign trade zone (FTZ) designation providing tax benefits and other incentives. LL40 tops a group of spec industrial buildings of varying sizes located near the Interstate 10 Corridor and the Loop 303 (Arizona State Route 303) that have been absorbed in recent years by a countless number of companies that have selected the West Valley so that they can distribute products to markets across the Western U.S. The privately-held Lincoln Property Co. has been active buying, developing, and managing office and industrial buildings in the Phoenix area. Several of those projects have been developed and/or acquired in joint ventures with Goldman Sachs, a Wall Street-based global investment banking, securities and investment management firm with $933 + billion in assets. Find out more from Air MI v.p. Lalit Monteiro at (503) 671-6453. Reach Krumwiede at (602) 912-8888. Joseph Sumberg of Goldman Sachs is at (212) 902-1000. Call the CBRE agents at (602) 735-5555.

PHOENIX – In a purchase resulting in another first time buyer entering the Valley market, Albany Road Real Estate Partners LLC of Boston, Mass. (Christopher Knisley, pres.) paid $43.5 million ($164.15 per foot) to buy 264,994 sq. ft. of flex office space within the Cotton Center business park near the southeast corner of Broadway Road and 40^th Street in Phoenix. BGP Cotton Center LLC, a company formed by Buchanan Street Partners in Newport Beach, Calif. (Robert Brunswick, Tim Ballard, principals), was the seller in the deal. Tracy Cartledge, Bob Buckley and Steve Lindley of Cushman & Wakefield in Phoenix negotiated the sale. The four-building complex, called Quattro, is 92.5 percent occupied. Mark Gustin of JLL in Phoenix has been leasing the project, which is comprised of 68,006 sq. ft. at 4310 E. Cotton Center Boulevard, 57,055 sq. ft. at 4320 E. Cotton Center Boulevard, 82,825 sq. ft. at 4340 E. Cotton Center Boulevard and 57,108 sq. ft. at 4350 E. Cotton Center Boulevard. Tenants include: Freeport-McMoRan, Konica Minolta, CVS Health, Sodexo and Xerox. Three of the four structures are fully occupied and a JLL marketing brochure shows 20,301 sq. ft. is available for lease in the building located at 4310 E. Cotton Center Boulevard. The parking ratio is 6 spaces per 1,000 sq. ft. Located in the Phoenix Sky Harbor International Airport submarket, the 280-acre Cotton Center business park is adjacent southwest of Interstate 10 and the Hohokam Expressway (State Route 143). “Quattro is a unique asset that provides a rare combination of strong tenancy, institutional quality and a prestigious Cotton Center location,” says Cartledge. “These components established the project as a market leader for flex-type product.” Maricopa County records show Albany Road-Quattro LLC (Albany Road Real Estate Partners entity) acquired the Cotton Center asset with a $30.875 million loan from Regions Bank. Sources say although the investment is the first in the Valley for Albany Road Real Estate Partners, the company is interesting in having a bigger footprint in the Phoenix area. Since its inception in 2012, Albany Road Real Estate Partners has acquired 8.9 million sq. ft. of commercial properties in 39 acquisitions spread across 11 states. According to the Albany Road Real Estate Partners website, the privately-held company has purchased roughly $1 billion of real estate comprised of a variety of product types, including office, retail, warehouse, distribution, flex industrial and self-storage. To date, the Boston-based firm has sponsored two funds with a combined $200 million in equity commitments and is preparing to launch a third fund with a target equity commitment totaling $250 million. In September 2013, BREW reported Buchanan Street Partners paying $34.75 million ($131.14 per foot) to buy Quattro (at that time called Cotton Center IV). The 21.52-acre property, developed by Opus West Corp. in two phases in 2002 and 2005, was acquired by BSP as part of a $52.6 million ($118 per foot blended average) portfolio deal that included 445,774 sq. ft. of office, industrial and retail space in four Valley projects. Buchanan Street Partners, which has been an active investor in the Phoenix area, has now resold all of the properties in transactions totaling a combined $65.45 million ($146.82 per foot). Merrick Egan, managing director for Albany Road Real Estate Partners in the firm’s office in Dallas, Tex. is the contact for the company . . . reach him at (214) 862-6840. Talk to Ballard at (949) 721-1414. Call the Cushman &Wakefield agents at (602) 954-9000.

PHOENIX – Camelback Esplanade III, one of five office buildings that comprise the Camelback Esplanade mixed-use project has been sold for $60.25 million ($275.89 per foot) to a joint venture formed by Transwestern in Houston, Tex. (Robert Duncan, chairman) and C-III Capital Partners in Irving, Tex. (Andrew Farkas, chairman). CH Realty VII/O Phoenix Esplanade LLC, a company formed by Crow Holdings Capital Partners LLC in Dallas, Tex., was the seller of the 218,387-square-foot building. Maricopa County records show Esplanade III Owner LLC (Transwestern/C-III Capital Partners) acquired the asset in a cash sale. Barry Gabel, Chris Marchildon and Will Mast of CBRE Capital Markets in Phoenix represented the seller in the deal. Jim Fijan and Jack Fijan of Transwestern in Phoenix represented the buyer. The 10-story structure, located at 2425 E. Camelback Road, is roughly 50 percent occupied. Jim Achen and Bill Zurek of Transwestern in Phoenix will lease and manage the Class A office. With  a block of contiguous space of 100,000 sq. ft. available for lease, Camelback Esplanade III can accommodate the largest office tenant looking to locate in the Camelback Corridor. That was not the case just over four years ago when BREW reported Crow Holdings paying $74.3 million ($340.22 per foot) to purchase what was then a 95 percent occupied building. The empty space is a result of two tenants relocating to other office buildings at Camelback Esplanade. Developed by Opus Corp. in 1997, Camelback Esplanade III sits on just over 1 acre. So now the Transwestern/C-III Capital Partners venture will look to stabilize the asset by securing tenants to occupy the vacant offices. Transwestern, which was able to source the equity partner in C-III Capital Partners, will serve as the operator and manage the investment. “Transwestern is expanding its footprint in the Phoenix market and the west,” says Jim Fijan. “Nationally, the company is partnering with institutional capital on select, high-profile properties.” C-III Capital Partners is a fully-diversified asset management and commercial real estate services company with more than $8 billion of assets under management. Transwestern is a privately-held real estate firm with a family of companies that includes: Transwestern Investment Group, with $4.4 billion of assets under management, and Transwestern Development Co., which develops office, industrial, multi-family, mixed-use and healthcare properties across the U.S. The other four office buildings within the Camelback Esplanade mixed-use project at the southeast corner of Camelback Road and 24^th Street are owned by LBA Realty in Irvine, Calif. In December 2015, a limited partnership formed by LBA Realty paid $279 million ($288.69 per foot) to buy 966,421 sq. ft. of space in Esplanade I, Esplanade II, Esplanade IV and Esplanade V. Get more from Katherine Furman of C-III Capital Partners at (212) 705-5084. Carlos Rainwater of Crow Holdings is at (214) 661-8113. Talk to the Transwestern agents at (602) 956-5000. Call the CBRE agents at (602) 735-5555.

PHOENIX – Just seven months after Bow River Capital Partners in Denver, Colo. (Blair Richardson, Eric Wolf, co-founders) and Fenway Properties in San Diego, Calif. (Larry Jackel, principal) finalized the sale of an office tower on Central Avenue in midtown Phoenix, the two companies completed the trade of another office project located two miles up the road. In the recent deal, a fund managed by Bow River Capital Partners paid $27.95 million ($128.54 per foot) to acquire 217,434 sq. ft. of office space in two buildings located along the east side of 7^th Street and just south of Camelback Road in Phoenix. Fenway XV LLC, a company formed by Fenway Properties, was the seller. Steve Lindley, Eric Wichterman, Tracy Cartledge, Bob Buckley and Mike Coover of Cushman & Wakefield in Phoenix negotiated the sale. The office complex, called Valley Commerce Center, is 81.4 percent occupied. Developed in 1984 on 8.2 acres, the project is comprised of four-story structures with 109,735 sq. ft. at 4745 N. 7^th Street and 107,699 sq. ft. at 4747 N. 7^th Street. Scott Boardman and Dave Carder of Cushman & Wakefield are taking over the leasing assignment. Maricopa County records show RE II Office IV LLC (Bow River Capital Partners entity) acquired the real estate with a $27.35 million loan issued by NXT Capital Investment Advisers LLC in Chicago, Ill. Proving that 13 can be a lucky number, in June 2006 just before the downturn in the economy, BREW reported Fenway Properties paying $22.25 million ($102.33 per foot) to buy Valley Commerce Center. Unlike many real estate investors who unloaded or walked away from Valley real estate due to the market crash, Fenway Properties hung in there for 13 years and was able to sell the office buildings for $5.7 million more than what the company paid to purchase the asset. Bow River Capital Partners, a privately-held alternative asset management firm, has now completed two acquisitions from entities formed by Fenway Properties. In November, BREW reported another Bow River Capital fund paying just over $14.65 million ($51.46 per foot) to buy a 20-story, 284,709-square-foot office tower at 3550 N. Central Avenue in Phoenix. That acquisition included the fee interest in half of the 8.8-acre project, the assumption of a ground lease for the remaining 4.4 acres of the site, a four-story attached annex and zoning approval for the future development of a luxury apartment complex and accompanying parking structure. AEW Capital Management in Boston, Mass. was Fenway Properties’ partner in that development, which is known as Grand Central Tower. Sources say Bow River Capital Partners also have ownership in multi-family and retail properties in the Valley and principals of the company are looking to grow its real estate portfolio in the Phoenix market. Find out more from Garrett Neiffer of Bow River Capital Partners at (303) 861-8466. Call Jackel at (858) 436-3600. Reach the Cushman & Wakefield brokers at (602) 954-9000.

PHOENIX – In acquisitions totaling almost $21.4 million, entities formed by ViaWest Properties LLC in Phoenix (Gary Linhart, Steven Schwarz, Danny Swancey, principals) has acquired just under 275,000 sq. ft. of existing industrial buildings and land to develop another 375,000 sq. ft. of industrial space in two separate locations in Phoenix. Bayless Investment & Trading Co. in Phoenix (Linda Bayless, pres.) was the seller of the properties in three cash transactions. John Werstler and Cooper Fratt of CBRE in Phoenix brokered the deals and will be leasing the projects going forward. In the largest of the sales, a joint venture formed by ViaWest and Prospect Ridge Advisors LLC in New York City, N.Y. paid $18,681,250 to acquire 272,973 sq. ft. of warehouse and cold storage space in two buildings on a 25-acre site at the southeast corner of Central Avenue and Buckeye Road. Maricopa County records show PR VWP Central Property LLC (Prospect Ridge/ViaWest company) was the buyer of that project, which is located just south of Downtown Phoenix. The purchase included a 196,672-square-foot cross-dock warehouse at 111 E. Buckeye Road that is fully leased to Ferguson Plumbing Supply and a 76,301-square-foot freezer storage facility at 202 E. Buckeye Road that is vacant. Plans for the project include the immediate renovation of the cold storage building and adding 250,000 + sq. ft. of new warehouse space in a phased expansion of the Central Avenue property, which is about half developed. Initially, the venture intends to build a 71,346-square-foot warehouse adjacent south of the cold storage and a 93,628-square-foot industrial building at the southwest corner of the project. Both of those structures should be available for occupancy by summer of 2020. A mirror building of 93,628 sq. ft .is targeted for the final phase of development. The start of construction on that warehouse is not expected to start until Ferguson’s lease expires in three years. The matching, 32-foot clear height structures are each divisible to accommodate two tenants. Plans also call for a 35,079-square-foot pad (.80-acre) at the hard corner of Central Avenue and Buckeye Road that is suitable for a retail/restaurant building of around 4,000 sq. ft. In the other location within the Phoenix Sky Harbor International Airport submarket, two ViaWest entities paid a combined $2,681,249 ($6.71 per foot) to acquire 9.17 acres surrounding the northwest corner of Superior Avenue and 44^th Street that is targeted for 150,700 sq. ft. of Class A industrial space in two buildings. The two parcels, both located within opportunity zones, are south of University Drive and west of State Route 143. In a $1,348,369 sale, VWPOZ 44^th Industrial LLC (ViaWest entity) acquired a 4.614-acre parcel located along the west side of 44^th Street and just north of Superior Avenue. That site is planned for a 79,200-square-foot structure. In the other transaction, VWPOZ Superior Industrial LLC (ViaWest entity) paid $1,332,880 to buy a 4.56-acre parcel along the north side of Superior Avenue and just west of 44^th Street. That site is planned for a 71,500-square-foot building. The space will be divisible to accommodate two to four tenants. Construction set to start late Fall with completion expected by June of 2020. Development cost (land and buildings) estimated at $17 + million. Construction financing now being arranged. Linhart says the company is developing the spec buildings through an opportunity zone fund it is managing and is looking to take advantage of the limited industrial space available in the area. “There is very little developable land immediately near the airport,” says Linhart. “The airport market is very tight.” Over the past few years, ViaWest has been involved in more than $350 million of real estate acquisitions and developments in the Phoenix area. In 2018, the privately-held ViaWest participated in acquiring 1.3 + million sq. ft. of office and industrial space in the Valley in five deals totaling $156 million. “The Phoenix industrial market has really matured and infill development sites are much harder to find,” says Linhart. “This deal gives us the opportunity to expand our development footprint in two attractive locations in the Sky Harbor/South Central submarkets to meet growing demand from industrial tenants for infill locations.” While ViaWest has been active in the Valley, the investment is the first in the Phoenix market for Prospect Ridge, which is an affiliate of AllianceBernstein Holding L.P. in New York City, N.Y. (NYSE:AB). That global investment management and research firm, with $286.7 billion in assets under management, teamed up with ViaWest in July 2015 and paid $163.1 million ($257.48 per foot) to buy the 633,459-square-foot office Biltmore Financial Center office project at the northwest corner of 24^th Street and Camelback Road in Phoenix. Find out more from the ViaWest principals at (602) 957-8300. Talk to Bayless at (602) 943-1323. Reach the CBRE agents at (602) 735-5555.

CHANDLER – It took almost five years to return to the Valley market, but investor Kulwant Singh Sarai of Delta, B.C., Canada has paid $30.8 million ($246.75 per foot) to buy a 124,822-square-foot neighborhood shopping center at the northwest corner of Gilbert and Chandler Heights roads in Chandler. Boardman Chandler LLC in Ketchum, Id. (John Boardman Baker, manager) was the seller. Jan Fincham and Andrew Lundahl of Lee & Associates Arizona in Phoenix represented the seller in the deal along with Shane Jimenez of Lee & Associates in Boise, Id. Nathan Cardon of Cardon Commercial in Surprise represented the buyer. The 18.08-acre property, called Chandler Heights Marketplace, is 98 percent occupied. The five-building shopping center, anchored by Bashas’ Grocery and Ace Hardware, has addresses of 4940, 4970, 4850 and 4870 S. Gilbert Road. Maricopa County records show Sita Enterprises LLLP (Sarai’s limited partnership) acquired the asset with a $5 million down payment and $25.8 million in seller carryback financing. In September 2016, BREW reported Baker’s company paying $30 million ($240.34 per foot) to purchase the retail center, which was developed by Kitchell Corp. of Phoenix in 2005. “It’s a terrific location in a high demographic area,” says Fincham. “It’s in a real affluent area with household incomes within a one mile radius averaging more than $152,000.” Other tenants in the center include: Starbucks, Orange Theory, Pizza Hut, Leslie’s Pool Supplies, UPS, H&R Block and Edward Jones. With a tenant roster paying rent that is roughly 25 percent below market rates in the area, Fincham says there is upside potential for the new owner. Bryan Ledbetter of Western Retail Advisors in Phoenix has been hired to lease Chandler Heights Marketplace. Zell Commercial Real Estate Services Inc. in Phoenix is managing the project. The purchase is the second in the Valley for Sarai. In August 2014, BREW reported the private investor from Canada paying $11.7 million ($150.88 per foot) to acquire a 77,545-square-foot retail center also anchored by Bashas’ grocery within the Marley Park community at the southeast corner of Waddell and Reems roads in Surprise. That property, called Marley Park Plaza, is in the process of being expanded by 16,200 sq. ft. In his first Valley acquisition in June 2012, BREW reported Sarai paying $2.35 million ($177.21 per foot) to buy a 13,261-square-foot retail center at 1914 S. Power Road in Mesa. Nathan Cardon, who represents Sarai in his Valley investments, says the Canadian businessman owns 27 properties across the country and is looking to add to his three assets in the Phoenix market and will look at deals up to $50 million. Find out more from Nathan Cardon at (602) 334-8546. Talk to Fincham and Lundahl at (602) 956-7777. Contact Jimenez at (208) 343-2300.

PHOENIX – In its second investment in the Valley, two tenant-in-common entities led by Harbor Group International LLC in Norfolk, Va. (Jordan Slone, chairman) paid $40.35 million ($156,395 per unit) to purchase the 258-unit Arcadia 4127 apartments at 4127 E. Indian School Road in Phoenix. Arcadia 4127 Apts LLC, a company formed by Baron Properties LLC in Denver, Co. (J. Jeffrey Riggs, Scott Fisher, principals), was the seller. Steve Nicoluzakis and Dave Fogler of Cushman & Wakefield in Phoenix brokered the sale. The tenant-in-common buyers are: Arcadia Gardens L.P., as to an undivided 89.96370968 percent interest, and Beach Arcadia LLC, as to an undivided 10.03629032 percent interest. Maricopa County records show the buyers acquired the asset with a $30.4 million Freddie Mac loan issued by Berkadia Commercial Mortgage LLC in Ambler, Pa. In April 2016, BREW reported Baron Properties paying $23.45 million ($90,541 per unit) to buy Arcadia 4127 (then called Arcadia Del Sol apartments). The 7.155-acre complex was built in phases in 1970, 1971 and 1986. At year-end 2018, BREW reported a group of TIC entities led by the privately-held Harbor Group International entering the Valley market by paying $63.5 million ($193,598 per unit) to acquire the 328-unit Avana McCormick Ranch apartments located at the southwest corner of Hayden Road and Via de Ventura Drive in Scottsdale. That investment was the first in the Phoenix market for Harbor Group International, which has a worldwide portfolio of 190 assets valued at $9.1 billion. In addition to 31,300 apartment units, the company has 3.6 million sq. ft. of office and retail buildings that it manages from its headquarters in Norfolk, as well as from offices in New York City, N.Y., Baltimore, Md., Los Angeles, Calif. and Tel Aviv, Israel. Baron Properties, also a privately-owned firm, has been an active buyer, developer and seller of multi-family projects in the Phoenix market. In a purchase reported in this week’s issue, Baron Properties paid $67.85 million ($215,397 per unit) to acquire a 315-unit apartment community in Gilbert and the company sold a 68-unit complex in Uptown Phoenix. Find out more from Richard Litton, Jr., pres. of Harbor Global International, by calling (757) 640-8400. Reach the principals of Baron Properties at (303) 290-9007. Talk to the Cushman & Wakefield agents at (602) 954-9000.

MESA – An assemblage of roughly 250 acres in Mesa that has been in the works for nearly five years is now complete, paving the way for a mixed-use community with more than 700 residences. Located east of the Phoenix-Mesa Gateway Airport and south of the 3,200-acre Eastmark community, the planned development is being called Destination at Gateway. The Mesa acreage has been assembled by entities controlled by W Holdings in Tempe (formed by the Wolfswinkel family) and Freedom Communities LLC in Chandler (Brent Hickey, principal). Maricopa County records show the land was acquired in four transactions totaling a combined $25,253,636 ($100,584 per acre blended average). With its close proximity to the hugely successful Eastmark community and the burgeoning Elliot Road Technology Corridor anchored by Apple Inc. (NASDAQ:AAPL) and its $2 billion mega data center, several Valley home builders have already expressed interest in Destination at Gateway. Sources say at least one Phoenix-area builder may want to buy the entire tract, which is generally bounded on the north by Williams Field Road, on the south by Frye Road, on the east by Meridian Road and on the west by just west of Signal Butte Road. W Holdings executive Carson Brown, who spearheaded the investment and is responsible for marketing the project, says plans will include a for rent housing product. Although the property has a preliminary plat in place for 709 home sites with five single-family lot products, plans for the Southeast Mesa acreage are still fluid and parcels are being reconfigured to include sites for about 250 rental units, 10 + acres of commercial use and a 5-acre parcel that will be sold to the Mormon Church. Those components are targeted for 30 acres located at the southwest corner of Signal Butte and Williams Field roads. The W Holdings/Freedom Communities venture intends to complete the planning process and obtain a final plat before selling the land to one or more home builders and commercial developers. Rooftops within Destination at Gateway are expected by year-end 2020 or first quarter 2021. Public records show the brunt of the assemblage is roughly 185 acres located along the south side of Williams Field Road and between Meridian Road and Signal Butte Road on the east and west. Signal Butte 24 LLC (formed by W Holdings and Freedom Communities principals) was the buyer in that $19.55 million sale. Trusts formed by the DeMuro family of The Woodlands, Tex. (Eugene DeMuro, Joanne DeMuro, co-trustees) and investor Joseph Baldelli were the sellers. Jason Hyams and his partner Dave Headstream of CBRE in Phoenix brokered that sale. Fees were also paid to Cam Stanton of CBRE and Mike Ratliff, formerly of CBRE, and now with Insight Land & Investments in Scottsdale. Pacific Coach Inc. in Phoenix (Andrew Cohn, principal) provided $16.75 million in financing for that purchase. Signal Butte 24 LLC was also the buyer of the 30 acres at the southwest corner of Signal Butte and Williams Field roads. Groh Revocable Trust in Scottsdale (John Groh, Nancy Groh, trustees), was the seller. Brent Moser and Mike Sutton, formerly of Cushman & Wakefield in Phoenix and now with Lee & Associates in Phoenix, negotiated that sale. The remaining 37.734 acres, along the east side of Mountain Road at the southern edge of the assemblage just north of the future State Route 24, was sold in two transactions totaling $2.6 million. Those 18.867-acre parcels, which both sold for $1.3 million, were acquired by a company formed by Brown and an affiliate of W Holdings. Learn more from Brown at (480) 831-2000.

PHOENIX – In an $80 million ($657,354 per acre) sale that sets the record for the highest price per acre ever paid for a housing development site in the Valley, R & R Riverview LLC in Fort Worth, Tex. (Reagan Horton, Ryan Horton, members) acquired a 121.7-acre (gross) tract surrounding the northeast corner of Tatum Boulevard and Bell Road in Phoenix. As BREW reported four weeks ago when it broke the news on the then pending property sale, D.R. Horton Inc. in Phoenix (Kim Oium, division pres.) has zoning approval to build 700 + homes on the land in a gated community being called Arabella. The sellers of the prime acreage were two entities formed by the Jean M. Marley Family Trust in Scottsdale (Jean Marley, trustee) and her sons, Jason Wesley of Scottsdale and Justin Wesley of Hermosa Beach, Calif. Nate Nathan, Dave Mullard, Courtney Buck and Casey Christensen of Nathan & Associates Inc. in Scottsdale negotiated the cash transaction. D.R. Horton in Phoenix, a division of D.R. Horton Inc. in Arlington, Tex. (NYSE:DHI), has been preserving its capital by using land bankers and by postponing and even cancelling property acquisitions in the Valley, according to multiple sources. Word on the street among residential land brokers and other real estate professionals in the Phoenix-area, is that D.R. Horton is working to acquire another home builder. “Something is going down,” says a Valley real estate broker, who asked not to be identified. “I’m not exactly sure what D.R. Horton is doing, but they are getting ready to write a big check. I have never seen them behave like this.” As per D.R. Horton policy, representatives of the publicly-traded home building firm declined comment. An example of the odd behavior is the recent sale of the Marley tract in Phoenix to R & R Riverview LLC, which is owned by Reagan Horton and Ryan Horton, both sons of D.R. Horton Inc. founder and chairman Donald R. Horton. Although R & R Riverview has previously bought and sold an office project in Mesa, BREW has never reported the company serving as a land banker for D.R. Horton. And while Maricopa County records show the deal for the Arabella property was a cash transaction, a closer look at the public records show R & R Riverview LLC borrowed the $80 million from Donald R. Horton and Marty Horton, husband and wife. Industry sources say the structure of the purchase of the prime acreage surrounding Bell Road and Tatum Boulevard came together quickly as Marley and the Wesleys did not want to extend the closing of the infill site, which is mostly vacant except a horse stable and single-family home that the seller has been occupying. After a two year period to plan and zone the site, apparently the sellers did not want to delay the close. Although it is widely known that the Nathan & Associates agents marketed the property and negotiated the sale, none of the brokers would discuss the deal or even confirm their involvement in the transaction. Even with the public documents easily accessible on the recent record-breaking land sale, none of the Phoenix-area real estate executives contacted by BREW would speak on the record regarding D.R. Horton, which has been neck-and-neck with Lennar Corp. in Miami, Fla. (NYSE:LEN) for the top slot as the state and nation’s largest homebuilder. Some say D.R. Horton may be pushing to increase its market share following the $9.3 billion deal that Lennar completed last year when it acquired CalAtlantic Group Inc. in Arlington, County, Va. (NYSE:CAA), which was formed in 2015 with the merger of Ryland Homes and Standard Pacific Homes. Industry sources have speculated that D.R. Horton could be making a run at a number of builders that could be ripe for the picking. Meritage Homes Corp. in Scottsdale (NYSE:MTH), with 300 communities located in 9 states across the Sunbelt, has been a name frequently mentioned as a merger candidate for D.R. Horton. Richmond American Homes, a subsidiary of M.D.C. Holdings Inc. in Denver, Colo. (NYSE:MDC) also with operations in 9 states, has recently been linked as a target when it was learned that a D.R. Horton v.p. who is one of its key personnel in Phoenix was being transferred to Denver. The rumor mill has been ramped up since D.R. Horton top executives were sequestered on a cruise ship for nearly three weeks in February and March and returned with a mandate to hold off on land acquisitions and to keep all lots off the books until ready for use, says another source familiar with the company. D.R. Horton is increasing its home building activity across the Valley, in Tucson and in the other parts of the country partly because of its affiliation with the fast-growing Forestar (USA) Group Inc. of Dallas, Tex. That real estate development company and subsidiary of D.R. Horton has operations and land holdings in 24 markets in 14 states. In the past year, BREW has reported Forestar Group investing $25.782 million to buy properties in three southwest Phoenix locations to land bank a combined 943 lots for D.R. Horton. The relationship with Forestar Group and the deal completed with R & R Riverview allow the builder to preserve capital and keep the land expense off its balance sheet, says an executive of another Valley homebuilder. Described as the largest privately-owned undeveloped infill site remaining inside of the Loop 101, plans on file in the City of Phoenix for Arabella show 420 single-family detached residences and 286, attached duplex units in a three-phase development. Withey Morris PLC of Phoenix assisted D.R. Horton in the entitlement process for Arabella. The homes will be connected through a series of trails, sidewalks and common areas, including a nearly 5-acre central amenity with a clubhouse, fitness center and pool complex. Of the planned 420 single-family residences, there are three lot products with 242 home sites averaging 3,750 sq. ft. (50x75), 142 averaging 5,400 sq. ft. (45x120) and 36 averaging 9,600 sq. ft. (80x120). The 286 duplex units are targeted for 27 acres that surround the 412-unit IMT Desert Ridge apartments. That multi-family complex is on the east and north sides of a retail plaza anchored by a Fry’s Food & Drug at the northeast corner of Bell Road and Tatum Boulevard. Roughly 20 percent of the Arabella community will be open space and common areas with a host of amenities for recreational uses, including game courts, a putting green and swimming pool. Plans also include a tot lot, and a picnic area with barbeques and ramadas. No word on construction timetable, product or pricing, but D.R. Horton will likely have some residences approaching the $1 million mark. The cost of the Marley property translates to a raw unit cost of $113,314 per home site. Including the infrastructure improvements and other costs associated with finishing the home sites, D.R. Horton will likely have an average of $150,000 per unit as a land basis for every residence the company builds within Arabella. Given the similarity in the lot sizes, the builder is expected to construct some of the same product the company has at its extremely popular Paradise Ridge community located a few miles to the northeast. That 262-unit project, at the southeast corner of Mayo Boulevard and 66^th Street in Phoenix, is being developed on a 70-acre site D.R. Horton acquired from the Arizona State Land Department. Since beginning pre-sales a year ago, the builder has sold 110 homes priced from $550,000 to $950,000. That community figures to be completed in short order as D.R. Horton is spec building two-thirds of the residences at Paradise Ridge. In addition to the nearly 1,000 residences D.R. Horton plans to construct at Arabella and Paradise Ridge, the builder has two other planned communities in the northeast Phoenix area targeted for another 1,400 homes. D.R. Horton controls a 259-acre parcel located on the east side of the 5,700-acre Desert Ridge master-planned community in Phoenix that is approved by the City of Phoenix for up to 903 single-family and multi-family residences in a community being called Talinn. D.R. Horton is expected to sell a parcel within Talinn to its multi-family development division and some larger single-family lots to another home builder. In a fourth master-planned community D.R. Horton is developing in North Phoenix called Stone Butte (formerly known as Hillstone), the builder intends to construct roughly 500 residences on 265 acres located about two miles north of the Loop 101 at the north end of Cave Buttes Dam Road at Cave Creek Road. Find out more from Patrick Brown, v.p. of land acquisition and development at D.R. Horton, by calling (480) 483-0006. Blake Davis, D.R. Horton manager of acquisition, is at (480) 368-1041. Talk to Reagan Horton and Ryan Horton at (817) 737-9490. Reach the Nathan & Associates agents at (480) 367-0700.

PHOENIX – Already flush with land and lots in the northeast Phoenix area targeted for 1,600 + residences, D.R. Horton Inc. in Phoenix (Kim Oium, division pres.) is acquiring a 121.7-acre tract surrounding the northeast corner of Tatum Boulevard and Bell Road that has zoning approval for 706 homes. According to plans on file in the City of Phoenix, the gated community called Arabella will have 420 single-family detached residences and 286, attached duplex units in a three-phase development. The homes will be connected through a series of trails, sidewalks and common areas, including a nearly 5-acre central amenity with a clubhouse, fitness center and pool complex. While representatives of D.R. Horton are not commenting on the pending land acquisition, sources say the builder is paying $80 million ($657,354 per acre) to buy the property. The cash transaction, scheduled to close later this month, is being brokered through Nate Nathan, Dave Mullard, Courtney Buck and Casey Christensen of Nathan & Associates Inc. in Scottsdale. Located just north of the Town of Paradise Valley and west of the City of Scottsdale, the site was annexed into Phoenix in 1994 and is mostly vacant except a horse stable and single-family home still occupied by the seller. Maricopa County records show the land is owned by two entities formed by the Jean M. Marley Family Trust in Scottsdale (Jean Marley, trustee). Beneficiaries include Jean Marley and her sons, Jason Wesley of Scottsdale and Justin Wesley of Hermosa Beach, Calif. Described as one of the largest privately-owned undeveloped infill sites remaining inside of the Loop 101, the prime acreage has drawn interest from several Valley home builders. Public records show 80 + acres located along the west side of 52^nd Street between Grovers Avenue on the north and Bell Road on the south is held by the Jean M. Marley Family Trust, and a connecting 40.13-acre parcel at the southeast corner of Tatum Boulevard and Grovers Avenue is owned by JLEY Investors Limited Partnership (Jean Marley trust, Jason Wesley, Justin Wesley, members). Of the 420 single-family residences that are planned, there are three lot products with 242 home sites averaging 3,750 sq. ft. (50x75), 142 averaging 5,400 sq. ft. (45x120) and 36 averaging 9,600 sq. ft. (80x20). The 286 duplex units are planned on 27 acres that surround the 412-unit IMT Desert Ridge apartments that are located on the east and north sides of a retail plaza anchored by a Fry’s Food & Drug at the northeast corner of Bell Road and Tatum Boulevard. Roughly 20 percent of the Arabella community will be open space and common areas with a host of amenities for recreational uses, including game courts, a putting green and swimming pool. Plans also include a tot lot, and a picnic area with barbeques and ramadas. No word on construction timetable, product or pricing. D.R. Horton in Phoenix, a division of D.R. Horton Inc. in Arlington, Tex. (NYSE:DHI), is both the state and the nation’s largest home builder. While the publicly-traded company has primarily been known for building entry level housing in the Phoenix market, the company has been buying some of the Valley’s priciest residential land targeted for production homes. The cost of the Marley property  translates to a raw unit cost of $113,314 per home site. Including the infrastructure improvements and other costs associated with finishing the home sites, D.R. Horton will likely have an average of $150,000 per unit as a land basis for every residence the company builds within Arabella. Although it is smaller by comparison, D.R. Horton has to be encouraged by the success it is enjoying at its Paradise Ridge community located a few miles to the northeast. That 262-unit project, at the southeast corner of Mayo Boulevard and 66^th Street in Phoenix, is being developed on a 70-acre site D.R. Horton acquired from the Arizona State Land Department. Since beginning pre-sales a year ago, the builder has sold 100 homes priced from $550,000 to $950,000. That community figures to be completed in short order as D.R. Horton is spec building 200 of the residences at Paradise Ridge. Having paid $21.85 million ($310,546 per acre) to buy the property at Paradise Ridge, D.R. Horton’s raw land cost per unit of $83,397 is almost $30,000 per  lot less than what the company is paying for Arabella. In addition to the 968 residences D.R. Horton plans to construct at Arabella and Paradise Ridge, the builder has two other planned communities in the northeast Phoenix area targeted for another 1,400 homes. D.R. Horton controls a 259-acre parcel located on the east side of the 5,700-acre Desert Ridge master-planned community in Phoenix that is approved by the City of Phoenix for up to 903 single-family and multi-family residences in a community being called Talinn. D.R. Horton is expected to sell a parcel within Talinn to its multi-family development division and some larger single-family lots to another home builder. In a fourth master-planned community D.R. Horton is developing in North Phoenix called Stone Butte (formerly known as Hillstone), the builder intends to construct roughly 500 residences on 265 acres located about two miles north of the Loop 101 at the north end of Cave Buttes Dam Road at Cave Creek Road. Find out more from Patrick Brown, v.p. of land acquisition and development at D.R. Horton, by calling (480) 483-0006. Blake Davis, D.R. Horton manager of acquisition, is at (480) 368-1041. Reach the Nathan & Associates agents at (480) 367-0700.