Category Archives: Hot News


CHANDLER – A company formed by Strategic Office Partners in Phoenix paid $25.21 million ($214.75 per foot) to purchase a 117,394-square-foot office building within the Chandler Corporate Center business park that surrounds the northwest corner of Chandler Boulevard and McClintock Drive in Chandler. PHO Chandler Building 1 LLC, formed by VanTrust Real Estate LLC in Kansas City, Mo. (David Harrison, pres.), was the seller. Barry Gabel, Chris Marchildon and Will Mast of CBRE in Phoenix brokered the sale of the newly-built office structure at 350 N. McClintock Drive. The two-story building, part of a development called One Chandler Corporate Center, is fully leased to Allstate Insurance Co. VanTrust completed development of the Class A office last year and Phil Briedenbach and Ryan Timpani of Colliers International in Phoenix negotiated a 5-year lease agreement for Allstate to occupy the entire building. The office structure occupies 9.73 acres of a 26.7-acre parcel that VanTrust paid $8,456,240 ($7.27 per foot) to purchase in May 2016. Keith Earnest, who heads the Phoenix office for VanTrust, says the balance of the property will include a second phase office building similar to the phase one structure that will be developed either through a build-to-suit deal or as a spec. Construction to start in October with completion expected to follow 12 months later. A site plan for One Chandler Corporate Center shows a third phase office totaling 176,091 sq. ft. and a parking garage, but those plans are still being evaluated and nothing further than the second phase office is certain as of now. Maricopa County records show the first phase office structure was acquired by SOP 350 N MCClintock LLC (Strategic Office Partners entity) in a cash transaction. Strategic Office Partners in Phoenix (Peter Tubesing, pres.), is a wholly-owned subsidiary of TPG Real Estate Partners, which is the real estate platform of the global alternative asset firm TPG. The parent firm, with headquarters in Fort Worth, Tex. and San Francisco, Calif., has $104 + billion in assets under management. Since its inception in 2016, Strategic Office Partners has acquired 25 buildings across the U.S. totaling more than 3.5 million sq. ft. In its last Valley investment reported by BREW in April of 2017, a venture formed by the TPG affiliate and Gramercy Property Trust in New York City, N.Y. (NYSE:GPT) paid $27.65 million ($223.28 per foot) to acquire the ground lease on a 123,864-square-foot office project located within the Arizona State University Research Park that is leased to Amazon Inc. (NASDAQ:AMZN). The purchase of the two-story development at 8375 S. River Parkway included only the improvements and not the 10.89 acres of land under the offices. VanTrust, a privately-held company, formed by Larry Van Tuyl, has developed multi-family, industrial and office projects in the Valley in recent months and last year acquired a prime, 20 + acre site at the southeast corner of Chandler Boulevard and the 101 Loop in Chandler that is targeted for a major mixed-use project. The company has also been active in Southern Nevada, developing more than 5 million sq. ft. of e-commerce and general distribution facilities. Amanda Zakharov, v.p. of acquisitions for Strategic Office Partners in Phoenix, is at (602) 734-5012. Call Earnest at (602) 732-4220. Reach the CBRE agents at (602) 735-5555. Talk to the Colliers agents at (602) 222-5000.


Tempe/Chandler/Peoria/Glendale/Phoenix/Surprise – In a deal that is one of the largest total dollar amounts paid for a multi-family portfolio in the Valley in recent years, Blackstone Real Estate Investment Trust Inc. (BREIT) paid $311 million ($177,613 per unit blended average) to buy 1,751 apartments in six projects in the Phoenix area. The seller, through seven transactions, is a venture formed by DRA Advisors LLC in New York City, N.Y. (David Luski, CEO) and The Milestone Group in New York City, N.Y. (Jeffrey Goldberg, Robert Landin, co-managing partners). John Cunningham and Charles Steele of JLL in Phoenix brokered the portfolio deal. Public records show the buyers acquired the assets with a combined $200.683 million in Fannie Mae loans issued by Jones Lang LaSalle Multifamily LLC in St. Paul, Mn. The financing was arranged by Brandon Harrington and Matt Steffen, formerly of Walker & Dunlop LLC in Phoenix and now with Jones Lang LaSalle Multifamily in Phoenix. Over the past year and a half, BREIT has invested $649 million ($173,021 per unit blended average) to purchase 3,751 apartments in 12 Valley assets. The company also owns 192 multi-family units in Flagstaff.  Blackstone Real Estate Income Trust is a publicly-held, non-traded real estate investment trust that is externally managed by BX REIT Advisors LLC, a subsidiary of Blackstone Group L.P. in New York City (NYSE:BX). That global investment firm manages $450 billion in assets. BREIT is focused on acquiring stabilized commercial real estate across all key property types. In July 2012, BREW reported the DRA Advisors/Milestone venture paying $179.25 million ($102,781 per unit) to buy the six-property portfolio now owned by BREIT. That deal, which included a total of 1,744 apartments, grew by seven units after DRA Advisors/Milestone was able to buy seven residences in a community in Chandler that had been sold as individual condominiums. Here is a summary of the portfolio with the buying entity, purchase price, property name and description, selling entity and previous acquisition price: BREIT MF Finisterra LLC paid $63,230,154 to acquire the 356-unit Finisterra apartments built in 1996 at 1250 W. Grove Parkway in Tempe. The seller was G&I VII Finisterra LLC, which paid $35.25 million ($99,017 per unit) to buy the property; BREIT MF Lumiere Chandler LLC and Coyote Lumiere Chandler LLC paid $45,291,262 to acquire 255 units of the 320-unit Lumiere Chandler fractured condominium complex built in 1995 at 1100 N. Priest Drive in Chandler. The sellers were G&I VII Lumiere LLC, which paid $28 million ($112,903 per unit) to buy 248 units within the property and Blue Wolverine LLC, which later acquired 7 of the units; BREIT MF Peoria LLC paid $35,522,559 to acquire the 200-unit Waterford at Peoria apartments built in 2008 at 14109 N. 83rd Avenue in Peoria. G&I VII Waterford at Peoria LLC was the seller and paid $22 million ($110,000 per unit) to buy the project; BREIT MF Sierra Canyon LLC paid $41,916,619 million to acquire the 236-unit Sierra Canyon apartments built in 2000 at 17500 N. 67th Avenue in Glendale. G&I VII Sierra Canyon LLC was the seller and paid $22 million ($93,220 per unit) to buy the project; BREIT MF Sierra Foothills LLC paid $57,191,319 to acquire the 322-unit Sierra Foothills apartments built in 1999 at 13601 N. 44th Street in Phoenix. The seller was G&I VII Sierra Foothills LLC, which paid $27 million ($83,851 per unit) to buy the project, and BREIT MF Stadium Village LLC paid $67,848,087 to acquire The Residences at Stadium Village, a 382-unit apartment community built in 2009 at 16485 N. Stadium Way in Surprise. The seller was G&I VII Stadium Village LLC, which paid $45 million ($117,801 per unit) to buy the project. As of the first quarter 2018, Blackstone owned 73,000 apartments, 34 million sq. ft. of retail buildings, 136,000 hotel rooms and 66 million sq. ft. of industrial space located across the U.S. In its last Valley multi-family purchase completed in July, BREW reported BREIT paying $64.35 million ($225,000 per unit) to acquire the 286-unit Velaire at Aspera apartments at 7700 W. Aspera Boulevard in Glendale. Find out more from Frank Cohen of BREIT at (212) 583-3000. Adam Breen of DRA Advisors is at (212) 697-4740. Talk to Cunningham and Steele at (602) 282-6300.


Avondale – After completing the $10.119 million ($79,297 per acre blended average) assemblage of 127.61 acres at the northeast corner of Van Buren Street and 111th Avenue in Avondale and obtaining zoning approval for 607 lots, Mattamy Arizona LLC in Scottsdale (Harry Lourimore, division pres.) is ready to start turning dirt within the planned community called Roosevelt Park. When it's all said and done, the company may end up constructing a dozen fewer homes than the total number of units that have been approved for the master-plan, but it will be Mattamy building all of the residences. Kevin Rust, director of land acquisition and development at Mattamy Arizona, says the company intends to have three lot products with home sites averaging 4,365 sq. ft. (45x97), 4,850 sq. ft. (50x97) and 5,820 sq. ft. (60x97).  The homes sizes are expected to range from 1,540 to 2,870 sq. ft. Ballpark pricing to range from around $200,000 to $310,000. Models within the gated community scheduled to open second quarter 2019. Rust adds that Mattamy is working on new housing designs and elevations for the Avondale project, which will be heavy in amenities and feature multiple lot sizes intermixed in the neighborhoods to create a diverse street scene. In addition to a series of parks that will dot the community, a variety of amenities will include a pool, sport courts with hard surfaces as well as grass, barbeque areas, ramadas, fitness stations, shaded play areas and tot lots. In the second part of a two-property assemblage, Mattamy Arizona LLC paid $4,638,060 ($98,829 per acre) to buy a 46.93-acre parcel at the southwest corner of Roosevelt Street and 107th Avenue. The sellers were four tenant-in-common entities formed by several members of the Anderson family of the Morristown area in northwest Maricopa County (Cynthia Anderson, Stephanie Anderson, Cheryl Anderson, John Anderson, members). Nate Nathan and Courtney Buck of Nathan & Associates Inc. in Scottsdale brokered the cash transaction. In November 2017, BREW reported Mattamy Arizona paying $5.481 million ($75,000 per acre) to buy 73.08 (net) acres in the first part of the Roosevelt Park assemblage. That tract is immediately west of the land purchased from the Andersons. Mattamy Arizona, which is owned by Mattamy Homes in Oakville, Ontario, Canada (Peter Gilgan, principal), has been one of the most active home builders in the Valley. Find out more from Rust at (480) 291-8133. Talk to the Nathan and Buck at (480) 367-0700.