Category Archives: Breaking News

WHITEBOARD GETS REWARDED FOR SUN CITY REDEVELOPMENT PROJECT

SUN CITY – Colin Brown of Whiteboard Development Co. in Phoenix has been rewarded for showing creativity, passion and backbone in taking a significant financial risk by converting the brunt of the La Ronde Centre mixed-use commercial project built by Del Webb Corp. in the early 1970's into a healthcare facility. In what Brown describes as a “labor of love,” the Phoenix developer took a tired and mostly vacant, 82,841-square-foot neighborhood shopping center at 14262-14820 N. Del Webb Boulevard and turned it into a vibrant and mostly leased, 88,438-square-foot medical office building. Originally developed as the primary attraction of a 107,753-square-foot, two-building retail-office complex located along both sides of Del Webb Boulevard at Thunderbird Road, the 7.537-acre retail plaza at the northwest corner of the intersection was renovated by Whiteboard in 2015-2016 and the former lifestyle and entertainment project was repositioned as La Ronde Medical Centre. In 2016, the creatively-designed medical facility with large, glass storefront entries was awarded the Medical Redevelopment Project of the Year in Phoenix by the National Association of Industrial and Office Properties (NAIOP). While Brown was pleased with the recognition from NAIOP, the real reward came this past week when a joint venture entity formed by The Carlyle Group of Washington, D.C. (NASDAQ:CG) and Anchor Health Properties (AHP) in Charlottesville, Va. paid $25.25 million ($285 per foot) to purchase La Ronde Medical Centre. Chris BodnarLee Asher and Ryan Lindsley of CBRE Healthcare Capital Markets in Denver, Co. brokered the sale, with assistance from Dylan Brown and Andrew Fosberg of CBRE in Phoenix. Maricopa County records show CPI/AHP Sun City MOB Owner LLC (Carlyle Group/Anchor Health company) acquired the asset with a $8,037,500 down payment and a $900 million credit facility Anchor Health Properties has at Capital One in Chicago, Ill. Sun City Development Group LLC (Whiteboard entity) was the seller. Over the past 25 years, BREW has reported The Carlyle Group involved in numerous real estate deals in the Phoenix market. The global asset manager with $212 billion of assets under management, has invested in multi-family, office and retail properties in the Valley. The Carlyle Group has previously teamed with Anchor Health Properties to buy medical facilities in multiple U.S. markets. Anchor Health Properties, a full-service healthcare real estate development, management and investment company, focuses exclusively on medical facilities. The 30-year-old firm, with 12 offices located throughout the country, has developed more than 2.5 million sq. ft. of healthcare properties and currently manages almost 4 million sq. ft. of medical space. La Ronde Medical Centre, which is 90.3 percent occupied by 9 tenants, is the first investment in the Valley for Anchor Health Properties (Paula CrowleyLou Sachs, co-founders). The privately-held AHP, which will provide asset and property management services for the Sun City project, has hired Kidder Mathews to handle the leasing. Barnet Dulaney Perkins Eye Center and Comprehensive Interventional Care Centers are anchor tenants in La Ronde Medical Centre, which is located less than a mile from the 501-bed Banner Boswell Medical Center. After the sale to the AHP/Carlyle venture, Sun City Development Group LLC still owns 24,912 sq. ft. of retail and office space on a 3.39-acre parcel located on the east side of Del Webb Boulevard directly across the street from the recently sold medical office building. That portion of La Ronde Centre, developed by Del Webb in 1973, is about 65 percent occupied. Perry Gabuzzi and Margaret Lloyd of Plaza Cos. in Peoria are no longer handling the leasing of La Ronde Medical Centre, but the pair are continuing with the leasing assignment for the retail portion of La Ronde Centre at the southeast corner of Del Webb Boulevard and Talisman Road. That portion of the mixed-use project, located at 14600-14800 N. Del Webb Boulevard, is owned by Brown’s company free of any debt and could be targeted for redevelopment down the road. In August 2014, Sun City Development Group LLC paid $8 million ($74.24 per foot) to buy both portions of La Ronde Centre, which did not include freestanding structures located in front of the medical office project and the retail building. The seller in the deal with Brown’s company paid $18,426,907 ($208.36 per foot) to acquire La Ronde Centre in August 2007. The iconic commercial buildings, located in the middle of a circle surrounded by a maze of hundreds of ranch style homes that comprise the centerpiece of the Sun City community, was a hub of activity nearly 50 years ago when Del Webb developed the project. It was the destination for where many of the active adult residents went to worship, shop, dine or to catch a movie. “This was an absolute passion project to step into the shoes of a visionary developer in Del Webb,” says Brown, referring to the redevelopment. “This was the first lifestyle center in the heart of Sun City. We spent a lot of time on this. It was truly a labor of love.” Over the past five years, BREW has reported Whiteboard taking a selective approach to developing real estate in the Valley with redeveloping existing commercial projects and the ground-up development of The District Lofts, a 172-unit rental community in Gilbert that the company completed in 2017 and still owns. Brown says Whiteboard is working on a couple new projects, including a small, redevelopment of a 20,000-square-foot retail property in the West Valley and a much larger, mixed-use project that will surpass $100 million when built out. Find out more from Colin Brown at (602) 463-5682. Ben Ochs, CEO at Anchor Health Properties and James Schmid, CIO at AHP, are both at (434) 293-8004. Dylan Brown and Fosberg of CBRE in Phoenix are at (602) 735-5555. Reach Gabuzzi and Lloyd of Plaza Cos. at (623) 972-1184.

 

LEVINE INVESTMENTS ADDS TO DIVERSE PORTFOLIO AND PAYS $51.65 MILLION FOR UPTOWN PLAZA

Phoenix – After ending 2017 by purchasing a high-profile property along the Tempe Town Lake that is the highest price ever paid for an office project in the Valley, Levine Investments Limited Partnership in Phoenix (Bill Levine, Andrew Cohn, principals) has started 2019 by paying top dollar to buy a landmark retail property in the Valley. Known for having a healthy appetite that includes buying a wide variety of real estate assets, the privately-held Levine Investments paid $51.65 million ($470 per foot) to acquire the 109,346-square-foot Uptown Plaza neighborhood shopping center at the northeast corner of Central Avenue and Camelback Road in Phoenix. Uptown Plaza Associates LLC, a Delaware company formed by the Royal family of Dubai in the United Arab Emirates (Sheikh Mohammed bin Rashid Al Maktoum, ruler) and Zell Holdings Inc. in Miami, Fla., was the seller. Vintage Partners LLC in Phoenix, which had a small ownership interest in the property, completed a major refurbishment to the 60 + year-old shopping center. In March 1996, BREW reported the Dubai royals venture with Zell Holdings paying $9.1 million ($77.28 per foot) to buy Uptown Plaza. Sources say the partnership led by the offshore investors spent roughly $20 million to reposition Uptown Plaza with Vintage Partners completing that work over a five year period. The 9-acre project, with addresses including 100 E. Camelback Road and 5025 N. Central Avenue, is 92 percent leased. AJ’s Fine Foods, which occupies 24,312 sq. ft., is the anchor tenant in the center. Levine Investments will take over management and leasing of the plaza, which has been restored to its mid-century, red brick design. Maricopa County records show Levine Investments Limited Partnership acquired the property in a cash transaction. Some of the other tenants comprising the impressive rent roll include: West Elm, Flower ChildFrancesca’sLou Malnati’s Pizzeria, Shake Shack, AmTrust Bank, Chipotle Mexican Grill, Huss Brewing Co. Taproom, Elly’s Brunch & Café, and several other locally-owned restaurants and boutiques. “Uptown Plaza has great tenants, a great trade area and great re-development execution, which led to a great sales price and a long term benefit to the neighborhood,” says Marty De Rito, who has been a retail developer and investor in the Valley for more than 30 years. Vintage Partners, formed 10 years ago by longtime Phoenix-area real estate professionals David Scholl, Bobby WilliamsMike Treadwell, Monty Ortman, Mark Ortman and Walter Crutchfield, was able to meet the needs of four established neighborhoods. “It’s nice to be able to put smiles on people’s faces,” said Scholl, who oversaw development of the center while Williams focused on leasing the project. “We were able to embrace the neighborhoods by making Uptown Plaza a gathering place with lots of great restaurants, entertainment options and retail stores,” added Scholl. “This is a destination where four historic neighborhoods come together at one corner and the nearby residents can get there on foot or on a bicycle.” Originally developed in 1955 by Del Webb Corp., the retail plaza was outside Phoenix city limits giving the iconic property the distinction as the Valley’s first suburban shopping center. Many longtime Phoenicians will recall some of the original tenants, including the Piggly-Wiggly supermarket, Bostrom’s department store, Jerand’s of Arizona, Porters, Helsing’s Coffee Shop and Navarre’s restaurant. Although representatives of Levine Investments declined to comment on the purchase of Uptown Plaza, industry sources say the new owner could further enhance the asset with a higher and better use for an area now occupied by a 5,538-square-foot freestanding building at the hard corner of Camelback Road and Central Avenue. Applebee’s Grill + Bar occupies that property through a long term lease, but the retail restaurant chain could be motivated to relocate or sell its lease rights. That single-story structure, at 2 E. Camelback Road, is across the street from an 11-story, 203,122-square-foot building at the southeast corner of Camelback Road and Central Avenue that BREW reported the prior owners of Uptown Plaza selling last year. That former office project, located at 1 E. Camelback Road, is now being converted as rental apartments. Last April, BREW reported a group of investors led by Charles Dubroff of Scottsdale paying $14 million ($68.92 per foot) to buy the 1.97-acre property called One Camelback. The Phoenix neighborhood that surrounds Uptown Plaza and One Camelback has seen a resurgence of development partly attributable to the installation of the Metro Light Rail that runs along Central Avenue. The only portion of Uptown Plaza that was not part of the sale was a 4,312-square-foot building occupying just over a half-acre parcel at the northwest corner of Camelback Road and 2nd Street. See’s Candy Shops Inc. acquired the land in 1969 and public records show the candy store was built 30 years ago. That freestanding structure at 132 E. Camelback Road would be a great addition to expand Uptown Plaza, but acquiring that site may not be so simple as See’s Candy is now owned by Berkshire Hathaway Inc. of Omaha, Neb. (NYSE:BRK). Over the years, BREW has reported Levine and Cohn involved in numerous Valley real estate investments. The low-key investors have acquired many high-profile, landmark properties in the Phoenix area as well as other markets in the U.S. At year-end 2017, BREW reported Levine Investments teaming with JDM Partners LLC in Phoenix (Jerry Colangelo, David Eaton, Mel Shultz, principals) and paying $928 million ($457 per foot) to buy the 2+ million-square-foot Marina Heights office project located along Tempe Town Lake in Tempe. State Farm Auto Insurance Co. occupies all five of the those office buildings. Find out more from Cohn at (602) 248-8181. Paul Berkowitz of the Greenberg Traurig LLP law offices in Miami, Fla., represents the Uptown Plaza Associates venture . . . reach him at (305) 579-0685. Call the Vintage Partners principals at (602) 626-8992.

EXETER ACQUIRING AND DEVELOPING INDUSTRIAL BUILDINGS AT A RAPID CLIP

Phoenix – Since entering the Phoenix market in 2013, Exeter Property Group in Conshohocken, Pa. (Ward Fitzgerald, Tim Weber, principals) has established itself as one of the most active commercial real estate investors and developers in the Valley. Including the recent acquisition of a business park and the purchase of a site targeted for a new distribution facility, the privately-held company has now invested $248.3 million ($78 per foot blended average) to acquire roughly 3.182 million sq. ft. of industrial and office space in 14 Valley properties and has plans to develop 900,000 sq. ft. of industrial buildings in two projects located in southwest Phoenix. In what will be its second ground-up development in the Valley, Exeter is building a 540,960-square-foot distribution facility at the southwest corner of 39th Avenue and Lower Buckeye Road in Phoenix. Exeter Property Group paid $7.65 million ($5.25 per foot) to acquire that 33.426-acre site, which is comprised of two parcels located at 3929 and 4065 W. Lower Buckeye Road. The seller was 303 And Lower Buckeye LLC, formed by Scottsdale Investment Management LLC in Scottsdale (Gary Jestadt, Tim Grant, Ed Grant, principals). Stein Koss and Tom Louer of the Koss Louer Team at Lee & Associates in Phoenix negotiated the deal. Maricopa County records show Exeter 39th Land LLC (Exeter Property Group entity) was the buyer in the cash sale. Plans from Cawley Architects in Phoenix show a cross-dock structure with 36-foot clear height. Construction scheduled to start in April 2019, with completion anticipated fourth quarter 2019. Contractor still to be selected. Koss and Louer have the leasing assignment on the project, which will be divisible to 150,000 sq. ft. to 200,000 sq. ft. Development cost (land and building) estimated at $40 million. Construction financing yet to be arranged. Records show Scottsdale Investment Management paid $4,942,471 ($3.39 per foot) to acquire the properties in 2015 and 2016. In another purchase, Exeter Property Group paid $28.6 million ($133.73 per foot) to buy 213,870 sq. ft. of back-office and industrial space in five buildings located within the Phoenix Airport Center business park at the northwest corner of State Route 143 (Hohokam Expressway) and University Drive in Phoenix. LBA Realty Fund II-WBP IV LLC, a company formed by LBA Realty in Irvine, Calif. (Steve Layton, et al., principals), was the seller. Chris Toci and Chad Littell of Cushman & Wakefield in Phoenix brokered the deal, along with Jim Wilson of C&W in Phoenix. Maricopa County records show Exeter 4602 East Hammond LLC (Exeter Property Group entity) acquired the property in a cash transaction. Developed on 17.23 acres of the 85-acre Phoenix Airport Center mixed-use project, the single-story buildings are 90 percent occupied on the average. Phoenix Airport Center I was developed in 1987 and the other four structures (Phoenix Airport Center II, III, IV and V) were all completed in 1980. Here is a description and location of each building: PAC I has 31,877 sq. ft. of back-office space located on 3.59 acres at 4602 E. University Drive that is 73 percent occupied; PAC II has 35,825 sq. ft. of industrial space on 3.09 acres located at 2617 S. 46th Street that is 67 percent occupied; PAC III has 55,102 sq. ft. of industrial-warehouse space on 2.47 acres located at 4602 E. Hammond Drive that is fully leased; PAC IV has 31,178 sq. ft. of industrial and back-office space on 1.94 acres located at 4632 E. Hammond Drive that is fully occupied, and PAC V has 59,888 sq. ft. of back-office space on a 6.14-acre parcel located at 4601 E. Hilton Avenue that is 100 percent leased. In June 1997, BREW reported Bedford Property Investors Inc. (LBA Realty purchased that company in 2006) paying $19 million ($88.84 per foot) to acquire the five-building project at Phoenix Airport Center. Exeter Property Group buys, develops and manages commercial properties across the U.S. and Europe and has managed more than $6 billion of assets for its domestic and international investor partners. In a $28.7 million ($81.14 per foot) purchase completed this summer, Exeter Property Group acquired a 353,711-square-foot flex project located about a mile south of Phoenix Airport Center. That four-building development, called Hohokam 10 Business Center, was sold by the Arizona Department of Transportation (ADOT). A portion of that 21-acre complex located along the north side of Interstate 10 is needed for a planned widening of the freeway. In its first ground-up development in the Valley that is nearing completion, Exeter Property Group is building a 359,040-square-foot industrial building at the southeast corner of Buckeye Road and 83rd Avenue in Phoenix. Christina Virgilio is the contact for Exeter Property Group . . . reach her at (267) 634-3281. Call Jestadt and the Grants at (480) 860-2000. Contact Koss and Louer at (602) 956-7777. Bob Hubbard of LBA Realty is at (602) 648-0905. Talk to the Cushman & Wakefield agents at (602) 954-9000.

GREYSTAR BUYS 845 APARTMENTS IN $149 MILLION PORTFOLIO DEAL FOR THREE VALLEY PROJECTS

Gilbert/Chandler – In a portfolio purchase of three apartment assets in the southeast Valley, Greystar Real Estate Partners LLC in Charleston, S.C. (Bob Faith, CEO) paid a combined $149 million ($176,331 per unit blended average) to buy 845 apartments in Gilbert and Chandler. Acacia Capital Corp. in San Mateo, Calif. (Wes Clelland, III, principal) was the seller in three separate transactions. The apartment projects, developed between 1986 and 1990, were acquired by Acacia in 2011 and 2012 for a combined $64.6 million ($76,450 per unit blended average). Greystar, which purchased the portfolio with a value-add investment fund, plans to complete extensive renovations to the newly-acquired units and changed the name of the communities to include “Avana” as part of its brand. In the largest of the portfolio acquisitions, GS Baseline LLC (Greystar company) paid $59 million ($173,021 per unit) to buy the 341-unit Vista Montana apartments at 3225 E. Baseline Road in Gilbert. PHX Baseline 2010 LLC (Acacia entity) was the seller. Tyler Anderson, Sean CunninghamAsher Gunter and Matt Pesch of CBRE in Phoenix negotiated the sale. Public records show the buyer acquired the asset with a $38.599 million Freddie Mac loan issued through CBRE Capital Markets Inc. in Houston, Tex. In July 2012, BREW reported Acacia Capital paying $28 million ($82,111 per unit) to purchase Vista Montana. Located west of Val Vista Drive, the 15.5-acre property (now called Avana Gilbert) was developed in 1990. In another sale brokered by the CBRE agents, GS Chandler LLC (Greystar entity) paid $58 million ($183,544 per unit) to buy the 316-unit Chandler Court apartments at 3800 W. Chandler Boulevard in Chandler. PHX Chandler 2010 LLC (Acacia entity) was the seller. Records show the buyer acquired that asset with a $37.916 million Freddie Mac loan issued by CBRE Capital Markets. In June 2011, BREW reported Acacia Capital paying $24.4 million ($77,215 per unit) to acquire Chandler Court (now called Avana Chandler). Located east of McClintock Drive, the 17.688-acre complex was developed in 1987. In a third multi-family asset in the portfolio, GS Oakland LLC (Greystar entity) paid $32 million ($170,213 per unit) to purchase the 188-unit River Ranch apartments at 6152 W. Oakland Street in Chandler. PHX Oakland 2010 LLC (Acacia entity) was the seller. Jim Crews of Cushman & Wakefield in Phoenix brokered that sale. Greystar acquired the property with a $20.961 million Freddie Mac loan issued by CBRE Capital Markets. In June 2011, BREW reported Acacia Capital paying $12.2 million ($65,591 per unit) to buy the asset (now called Avana River Ranch). Located north of Chandler Boulevard and west of Kyrene Road, the 9.788-acre project was developed in 1986. Greystar now owns 1,815 apartments and manages 25,405 multi-family units in the Valley. The privately-held Greystar is the world’s largest apartment manager with a portfolio comprised of 490,000 units valued at $80 + billion. After the sale to Greystar, Acacia Capital owns 1,528 multi-family units in 6 Phoenix-area communities. Learn more from Jerry Brand of Greystar at (858) 876-6289. Todd Darling of Acacia Capital is at (650) 372-6472. Reach the CBRE agents at (602) 735-5555. Talk to Crews at (602) 229-5992.

BRIDGE SPENDS $171.25 MILLION FOR 1,016 VALLEY APARTMENTS AS PART OF PORTFOLIO DEAL

Phoenix/Gilbert – One of the busiest multi-family investors over the past several years has made its first Valley purchase in 2018 by spending $171.25 million ($168,553 per unit blended average) to acquire 1,016 apartments in three projects located in the Phoenix market. A multi-family fund managed by Bridge Investment Group LLC in Sandy, Utah (Robert Morse, chairman) purchased the group of assets in a portfolio deal that included 642 units in two properties in Las Vegas, Nev. The five multi-family communities, comprised of 1,658 units, were acquired by the Utah-based investor for a combined $271 million ($163,450 per unit blended average). Fairfield Residential Inc. in San Diego, Calif. (Greg Pinkalla, chairman), which was the seller of the portfolio, paid $165.4 million ($99,759 per unit blended average) to acquire the assets in 2015 and 2016. Tyler AndersonSean Cunningham, Asher Gunter and Matt Pesch of CBRE in Phoenix brokered the portfolio sale to Bridge Investment Group. That privately-held firm, with $12 + billion in assets under management, purchased the apartments through Bridge Multifamily IV Holdings LLC. Maricopa County records show the Phoenix assets were acquired with $54.374 million in cash down payments and $116.876 million in Fannie Mae financing  from a master credit facility agreement funded through Wells Fargo Bank. Here is a summary of the three Valley projects with the buyer name, allocated sale price and property description: BMF IV AZ Array South Mountain LLC (Bridge Multifamily IV entity) paid $98.975 million ($164,958 per unit) to acquire the 600-unit Array South Mountain apartments located in the Ahwatukee area at 13229 S. 48th Street in Phoenix. Fairfield Presidio SM LLC (Fairfield Residential company) was the seller. In July 2015, BREW reported Fairfield Residential paying $57.5 million ($95,833 per unit) to buy the complex (then called Presidio at South Mountain).

Located west of Interstate 10 and north of Ray Road, the 22.38-acre project was developed in phases in 1986 and 1988. Immediately to the north, BMF IV AZ Lore South Mountain LLC (Bridge Multifamily IV entity) paid $37.15 million ($153,512 per unit) to  acquire the 242-unit Lore South Mountain apartments at 13021 S. 48th Street in Phoenix. Fairfield Villas SM LLC was the seller. In July 2015, BREW reported Fairfield Residential paying $23 million ($95,041 per unit) to purchase that community (then called Villas at South Mountain). The 11.75-acre property was built in 1986. BMF IV AZ Cambria LLC (Bridge Multifamily IV entity) paid $35.125 million ($201,868 per unit) to purchase the 174-unit Cambria apartments located at 130 W. Guadalupe Road in Gilbert. Fairfield Cambria LLC (Fairfield Residential company) was the seller. In December 2015, BREW reported Fairfield Residential paying $24.35 million ($139,943 per unit) to buy Cambria apartments. The 8.67-acre complex was developed in 2000. Sources say Bridge Investment Group paid a combined $99.75 million ($155,374 per unit blended average) to acquire 642 multi-family units in Las Vegas apartment communities comprised of the 316-unit Helix and the 326-unit Reflections at the Lakes. Fairfield Residential paid $60.55 million ($94,315 per unit blended average) to purchase those properties in two transactions in 2015 and 2016. Over the past 25 years, BREW has reported Fairfield Residential developing, buying and selling thousands of apartments in the Phoenix area. Although the company was hit hard when the market collapsed and real estate values in the Valley plummeted, the San Diego-based firm stayed the course and has been able to salvage decent returns on some properties acquired or developed at the peak of the market and has faired real well by re-investing in the Phoenix market after the correction. The same goes for Bridge Investment Group and its predecessors, which have been in and out of the Arizona real estate market over the past few decades. The privately-held company, also an investor in the Tucson area, has been buying and selling apartments and office projects primarily in Metropolitan Phoenix. Bridge Investment Group completed many of those deals through an investment vehicle known as the ROC Funds. According to a recent entry from Bridge Investment Group on Linkedin, the registered investment advisor’s 12 + billion in assets is comprised of 31,000 multi-family units, 9,200 + senior housing units and 9.3 million sq. ft. of commercial office buildings. Find out more from Jonathan Slager, co-CEO at Bridge Investment Group, by calling (801) 716-4500. Gino Barra, v.p. at Fairfield Residential, is the contact for the company . . . talk to him at (858) 457-2123. Reach the CBRE agents at (602) 735-5555.

ASCENTRIS BUYS KIERLAND OFFICE BUILDING IN $25 MILLION DEAL ($300 + PER FOOT)

Scottsdale – In the company’s first direct investment in the Phoenix real estate market, Ascentris in Denver (Gabe Finke, CEO) paid $25 million ($305.27 per foot) to acquire a 81,894-square-foot office project located within the Kierland community in Scottsdale. The three-story structure, called Kierland Corporate Center II, is located at 7033 E. Greenway Parkway. PCPI Kierland II LLC, formed by Parallel Capital Partners in San Diego, Calif. (Matt Root, Jim Ingebritsen, Jim Reynolds, partners), was the seller in the deal. Eric Wichterman and Mike Coover of Cushman Wakefield in Phoenix negotiated the transaction. Ascentris, formerly known as Amstar Advisers, is a private equity firm and an SEC registered investment adviser with more than $1.1 billion in assets under management. Maricopa County records show Ascentris-214 LLC (Ascentris entity) acquired the office project in a cash sale. Developed in 2009 on a 3.4-acre parcel just west of Scottsdale Road, Kierland Corporate Center II is 93 percent occupied. Bill Blake and Colton Trauter of Lee & Associates in Phoenix have been awarded the leasing assignment. In October 2016, BREW reported Parallel Capital Partners paying $20 million ($244.22 per foot) to buy the Kierland office. Ascentris, which acquired the asset on behalf of a public retirement system, intends to upgrade the property, build out some speculative office suites and hold the project as a long term investment. BREW previously reported Amstar Advisers providing equity for multi-family projects in Phoenix, Tempe and two developments adjacent to the newly-acquired office building. Those apartment and condominium mid-rises, being built by Opitma Real Estate Inc. in Glencoe, Ill., are within the Optima Kierland Center mixed-use project located at the northwest corner of Scottsdale Road and Kierland Boulevard. Learn more from Jeff Higgins, v.p. at Ascentris, by calling (303) 317-6464. Reach the principals of Parallel Capital Partners at (858) 882-9500. Talk to Wichterman and Coover at (602) 954-9000. Blake and Trauter are at (602) 956-7777.

EASTGROUP DEVELOPING 320,000-SQUARE-FOOT BUSINESS PARK IN GILBERT

Gilbert – EastGroup Properties L.P. (NYSE:EGP) plans to develop a 319,661-square-foot business park south of the 202 Loop (SanTan Freeway) and west of Lindsay Road in Gilbert. The company paid $6,411,286 ($6 per foot) to buy the 24.6-acre site at the southeast corner of Germann Road and Mustang Drive. RG-Germann LLC, formed by Rockefeller Group Development Corp. in Phoenix, was the seller. Paul Sieczkowski, Rob Martensen and  Phil Breidenbach of Colliers International in Phoenix brokered the cash sale. Butler Design Group Inc. in Phoenix is designing the four-building project called Gilbert Crossroads Business Park. Plans for the first phase show buildings of 57,585 sq. ft. and 82,128 sq. ft. Phase two includes structures totaling 74,948 sq. ft. and 105,000 sq. ft. Mike Sacco, v.p. at EastGroup Properties in Phoenix, says the Gilbert development will cater to last mile distribution, light manufacturing, warehouse and showroom users. Paul Sieczkowski, Martensen and Justin Sieczkowski of Colliers have the leasing assignment and are looking for tenants needing at least 15,000 sq. ft. Construction on the two first phase buildings scheduled to start first quarter 2019, with completion expected fourth quarter 2019. Contractor still to be selected. EastGroup Properties in Ridgeland, Ms. (Marshall Loeb, CEO) is a self-administered real estate investment trust (REIT) that owns 41.3 million sq. ft. of industrial buildings located primarily in Arizona, California, Texas, Florida and North Carolina. Roughly 2.6 million sq. ft. of that space is comprised of six projects in the Phoenix area and the company owns another 1 + million sq. ft. in four Tucson properties. EastGroup has been buying, developing and selling industrial buildings in the Valley for more than two decades. In July, EastGroup completed the $7.941 million ($63.48 per foot) sale of a 125,091-square-foot distribution center at 1601-1605 S. 35th Avenue in Phoenix. BREW reported the company paying $2.785 million ($22.26 per foot) to buy that asset 21 years ago. A fund managed by The Humphreys Co. in Oklahoma City, Okl. acquired the project from EastGroup in a deal brokered by Bo Mills and Mark Detmer of JLL in Phoenix, and Don MacWilliam and Payson MacWilliam of Colliers in Phoenix. Gilbert Crossroads Business Park will be developed by EastGroup Properties on more than half of a 44.72-acre parcel that Rockefeller Group Development paid $13,340,859 to acquire in January 2008. The remainder of that acreage is planned for a 356-unit apartment complex that is being developed by a joint venture formed by LIV Communities in Grand Haven, Mich. and Rockefeller Group Development Corp., which is an affiliate of The Rockefeller Group in New York City, N.Y. Find out more from Sacco at (602) 840-8600, ext. 3. Mark Singerman of Rockefeller Group Development in Phoenix is at (623) 930-5082. Call the Colliers agents at (602) 222-5000.

TA REALTY FUNDS DROPS $41.685 MILLION FOR 240-UNIT MULTI-FAMILY COMMUNITY IN MESA

Mesa – A fund managed by real estate investment advisor TA Realty LLC in Boston, Mass. (Michael Ruane, managing partner) paid $41.685 million ($173,688 per unit) to purchase the 240-unit Indigo Springs   multi-family rental community located just south of the U.S. 60 (Superstition Freeway) at 1464 S. Stapley Drive in Mesa. PM Indigo Springs Mesa LLC, a company formed by PEM Real Estate Group in Scottsdale (Paul Mashni, principal), was the seller. The sale was brokered by Steve Gebingand Cliff David of Marcus & Millichap Real Estate Investment Services in Phoenix. Maricopa County records show The Realty Associates Fund XII Portfolio L.P. (TA Realty limited partnership) acquired the asset in a cash transaction. In a sale that recorded at the end of August 2006 that BREW reported in September 2006, the PEM entity paid $25.5 million ($106,250 per unit) to buy Indigo Springs. Located along the west side of Stapley Drive, the 9.8-acre complex was developed in 2000. As of September 30, 2017, TA Realty was managing $10 billion in assets comprised of 43.1 million sq. ft. of industrial, office and retail buildings and 8,135 multi-family units. The company, which currently has five value-added funds under its management, made its last Valley real estate investment in July of this summer when it paid $28.675 million ($95.84 per foot blended average) to buy 299,208 sq. ft. of industrial space in Tempe and Chandler. The purchase of Indigo Springs is the first multi-family investment in the Phoenix area for TA Realty since July 2014 when BREW reported the company spending $75.45 million ($133,77 per unit blended price) to buy 564 apartment units in projects located in Chandler and Phoenix. The Boston-based investment advisor sold those two assets in two transactions last year totaling a combined $103.5 million ($183,511 per unit blended average). PEM, on the other hand, has been in a selling mode the past decade after the company purchased 15 apartment properties in Phoenix and Tucson from 2005 to 2007. Most of those assets, acquired at peak prices just prior to the collapse in the real estate market, have now been sold. While Mashni and his partners absorbed heavy losses on a portion of those projects, the former Michigan-based investor hung in there on some of the investments and was able to resell the properties at a significant profit. Find out more from Jim Buckingham of TA Realty at (617) 476-2700. Call Mashni at (480) 422-6930. Talk to Gebing and David at (602) 687-6700.

FORMER SUNS GREAT KEVIN JOHNSON PART OF VENTURE BUILDING DOWNTOWN PHOENIX APARTMENTS

Phoenix – An investment partnership including former Phoenix Suns basketball player Kevin Johnson plans to develop a 278-unit multi-family community adjacent to Chase Field in the Warehouse District of Downtown Phoenix. Being called The Battery, the upscale, urban-theme apartment complex will be developed by JMA Ventures LLC in San Francisco, Calif. (Todd Chapman, CEO). Johnson, affectionately known as “KJ” to Phoenix Suns fans, is part of the investment group that will develop the project. A company formed by JMA Ventures paid $8.4 million ($63 per foot) to acquire the 3.062-acre site, which includes a full block and a half of land located just south and east of Talking Stick Resort Arena where Johnson played his home games (then called America West Arena) for most of his 12-year career. Phoenix Ballpark Residences LLC, formed by Phoenix Ballpark North LLC in Truckee, Calif. (Cyrus Johnson, manager), was the seller. Maricopa County records show Phoenix Battery Lofts LLC (JMA Ventures LLC entity) paid cash to purchase the property, which is located along both sides of  Buchanan Street and between 4th and 3rd streets on the east and west. The Battery will be comprised of two, four-story apartment buildings with 278 units, 4,500 sq. ft. of retail space and a structured parking facility with about 400 stalls. UEB Builders is serving as contractor. Otak Inc. is designing the project, which will feature studio, one- and two-bedroom units ranging from roughly 600 sq. ft. to 1,000 sq. ft. Rental rates still to be determined. Construction slated to start in the next 90 days, with completion expected to take two years. Development cost (land and buildings) estimated at $75 million. No word on equity source or construction financing. A case study from JMA Ventures' website says the company plans to develop the parcel through a GPLET (Government Property Lease Excise Tax) agreement with Phoenix that will provide a 20-year tax abatement. Additionally, The Battery is located in a Qualified Opportunity Zone (QOZ) and benefits from special tax treatment of capital gains from when certain assets are sold and proceeds are invested into a QOZ. Portions of The Battery will be constructed with recycled brick and wooden trusses to blend in with historic structures in the area that were built in the early 1900's. Plans include a rooftop pool and other amenities designed to attract residents looking for a more urban and innovative community. JMA Ventures, a privately-held real estate investment and development company, serves as the managing partner of projects valued at more than $2 billion. The company’s portfolio includes landmark properties spanning hospitality, resort, residential, retail, office and commercial uses. While The Battery will be the first project in the Phoenix market for JMA Ventures, the investment group will be able to rely on connections one of its high-profile partners has in the Valley. After retiring from the NBA 19 years ago, Kevin Johnson returned to his hometown of Sacramento where he served as the City's mayor from 2008 to 2016 and was credited in helping to revitalize that downtown area. Much has changed in Downtown Phoenix since nearly two decades ago when KJ ran the fast break on the hardwood on Jefferson Street. In March, The New York Times published a story headlined "A Renewal for Phoenix's Warehouse District" and cited 110 new businesses that in the past five years have located in south Downtown Phoenix where the majority of the district's 36 warehouses have been declared historic landmarks. In May 2012, the acreage owned by the JMA Ventures entity was sold to Phoenix Ballpark Properties LLC in San Francisco (Harold Robinson, IV, principal) in a $4.75 million ($26.63 per foot) transaction that included 4.095 acres. The additional 1.03-acre parcel (45,000 sq. ft.) is located along the north side of Lincoln Street immediately south of The Battery site. In March 2015, public records show Phoenix Ballpark Properties LLC transferred ownership of the Lincoln Street property to a related company called Phoenix Ballpark South LLC. In May 2016, records show Phoenix Ballpark Properties LLC conveyed ownership in the 3.062 acres to Phoenix Ballpark Residences LLC. While Johnson is listed as the manager of the Phoenix Ballpark North LLC entity that is the manager and sole member of Phoenix Ballpark Residences LLC, Robinson is believed to be the primary principal. Find out more from representatives of JMA Ventures at (415) 728-0794. Talk to Cyrus Johnson at (530) 562-4852.

CROSSHARBOR ENTERS VALLEY MARKET WITH A BOOM . . . BUYS AMAZON FACILITY FOR $98 + MILLION

Phoenix – In a sale that establishes a record for the highest purchase price for a single-tenant industrial building in the Valley market, a company formed by CrossHarbor Capital Partners LLC of Boston, Mass. (Samuel Byrne, William Kremer, co-founders) paid $98.325 million ($97.41 per foot) to acquire a 1,009,350-square-foot distribution facility in West Phoenix that is fully occupied by Amazon (NASDAQ:AMZN). Located about two miles south of Interstate 10, the 44.22-acre property at 6835 W. Buckeye Road was sold by a joint venture formed by The Koll Co. in Newport Beach, Calif. (Ray Wirta, CEO) and a Middle Eastern equity partner. Obliterating all barriers to entry in making its first Phoenix real estate acquisition, the privately-held CrossHarbor Capital Partners has purchased more square-footage in one property than many Valley investors own in several buildings. Maricopa County records show CH LH Buckeye Owner LLC (CrossHarbor Capital Partners entity) acquired the asset by assuming a $48,587,500 CMBS loan issued by Benefit Street Partners CR Finance LLC in New York City, N.Y. In July 2016, BREW reported The Koll Co. and partner Seera Investment Bank B.S.C. from the Kingdom of Bahrain paying $74.75 million ($74.06 per foot) to acquire the project, which is located within the Buckeye Logistics Center industrial park. Originally developed in 2007 as a 604,678-square-foot warehouse, the building was expanded in 2011 by another 404,672 sq. ft. to accommodate Amazon’s growth. The facility is one of four projects and roughly 4.5 million sq. ft. of warehouse-distribution space that the retail on-line behemoth Amazon leases in the Valley. Prior to the CrossHarbor Capital Partners deal, the previous record price for a single-tenant industrial facility was established in August 2012 when Industrial Income Trust (IIT) in Denver, Colo. paid $90.286 + million ($71.25 per foot) to buy a 1.267 million-square-foot distribution building at 800 N. 75th Avenue in Phoenix. That property is also leased to Amazon. According to the company’s website, CrossHarbor Capital Partners invests in single property transactions, multiple property portfolios and real estate-related operating companies for its own account, with joint venture partners and third party borrowers. Since its inception 25 years ago, the real estate firm has invested more than $13 billion in completing roughly 175 transactions on behalf of endowments, foundations, public and corporate pension funds, financial institutions and family offices. CrossHarbor Capital Partners, which acquires office, industrial, retail, apartment, hotel and mixed-use properties, currently has an estimated $5.5 billion in assets under management. Get more from Patrick O’Sullivan of CrossHarbor Capital Partners at (617) 624-8323. Scott Meserve of The Koll Co. is at (949) 655-6818.