GLENDALE, ARIZ. — Los Angeles-based B.H. Properties has purchased the Honeywell Aerospace Glendale DSES Campus, located at 19019 N. 59th Ave. in Glendale, for an undisclosed price. Constructed in 1986 and situated on 45 acres, the property features 252,300 square feet of space, including offices, clean rooms, R&D labs and assembly areas. At the time of sale, the property was 100 percent occupied by Honeywell International, which signed a new lease to extend occupancy until July 2024. Mindy Korth and Kirk Kuller of Colliers International in Arizona negotiated the sale.
Arizona
PEORIA, ARIZ. — JLL Healthcare Capital Markets Group has brokered the sale of Thunderbird Wellness Centre in Peoria. A joint venture between developer/owner MedProperties Group and Virtus Real Estate Capital sold the property to Chicago-based MBRE Healthcare for an undisclosed price. A USPI-affiliated ambulatory surgery center anchors the four-building, 56,190-square-foot, Class A medical office and specialty retail asset. At the time of sale, the property was fully occupied. Daniel Turley of JLL Healthcare Capital Markets Group advised the seller in the deal.
PHOENIX — Thorofare Capital has provided a $11.4 million loan for the acquisition of a multifamily property in Phoenix. The name of the borrower was not released. The Class B property features 158 apartments and was 67 percent occupied at closing. The non-recourse loan features a five-year floating rate with interest-only payments. Additionally, the financing features 75 percent loan-to-cost ratio and funding for future capital expenditures. Kevin Miller, Felix Gutnikov and Daniel Pavlinik of Thorofare Capital handled the financing.
PHOENIX — PCCP has formed a joint venture with Hopewell Development to develop a three-building speculative industrial project in Phoenix’s Southwest Valley submarket. The buildings will be located on two fully entitled sites and completion is slated for late 2019. Two buildings — offering 78,150 square feet and 84,708 square feet — will be situated on a 10.6-acre parcel along 67th Avenue. The third building will be located on a 4.8-acre site along 43rd Avenue. Each building will feature 28-foot to 32-foot clear heights, between 17 and 25 dock-high doors in addition to grade-level doors, and one speculative office build-out space. Additionally, both sites will feature direct frontage to an intersection, multiple access points and easy freeway access to both the Interstate 10 and the future Loop 202 extension, which is scheduled for completion in late 2019. Bo Mills and Mark Detmer of JLL sourced the joint venture equity for the partnership.
Graycor Starts Construction of 135,745 SF Industrial Building at Gilbert Spectrum in Arizona
by Amy Works
GILBERT, ARIZ. — Graycor Construction Co., on behalf of SunCap Property Group, has started construction of a flex industrial building at the Gilbert Spectrum industrial project in Gilbert. The building is the is the first development in the southern portion of the 63-acre project, which is situated at the southwest corner of Elliot and McQueen roads. Known as Building One, the 135,745-square-foot facility will feature 32-foot clear heights, 40 dock-high and four grade-level loading doors, and ESFR sprinklers. Completion is slated for late July. SDHQ Off Road, an off-road vehicle supplier, will occupy 28,000 square feet in the building, with the additional space being developed on a speculative basis and divisible down to 15,000 square feet. Gilbert Spectrum is already home to a 58,289-square-foot, built-to-suit “Satellite Engineering Building” for Northrop Grumman Innovation Systems (formerly Orbital/ATK). Built by Graycor in 2017, the one-story, Class A office building mixes open collaborative areas and task-specific work zones. Building One is one of five new buildings — totaling more than 435,000 square feet — that SunCorp will develop at Gilbert Spectrum as the market demands. At build-out, Gilbert Spectrum will include more than 800,000 square feet in eight to 10 buildings that range in …
Pathfinders Partners, Global Building Divest of 32,741 SF Office Property in Phoenix for $5.2M
by Amy Works
PHOENIX — Pathfinders Partners and Global Building LLC have completed the sale of an office building located at 2730 W. Agua Fria Freeway in Phoenix. Devil Dogs Properties acquired the property for $5.2 million. Located in the Deer Valley/Interstate 17 submarket, the asset features 32,741 square feet of office space. At the time of sale, the multi-tenant property was fully leased. Darren Tappen and Peter Beauchamp of Kidder Mathews represented the seller, while Michelle Gardner, also of Kidder Matthews, represented the buyer in the transaction.
RED Mortgage Capital: Intermountain Region Generates Strong Apartment Performance and Value Creation
by Jaime Lackey
West Coast markets garner more press clippings and public attention. But the Intermountain States — Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming — are posting impressive numbers that belie their station in the American consciousness. Offering Americans the sunshine and outdoor recreational opportunities they crave and the lower operating costs businesses seek, the region is in the nation’s sweet spot and taking full advantage of its position. Population, income and employment growth lead the nation. Indeed, the region claims the four fastest growing states in America — Nevada, Idaho, Utah and Arizona — and its seventh, Colorado. Meanwhile, Nevada, Utah and Arizona recorded the fastest rates of payroll job creation last year, and Colorado and Idaho figured in the top six nationally. Apartment rents increased accordingly. Late-cycle bloomers Las Vegas and Phoenix posted the fastest rent growth last year among larger markets and Salt Lake wasn’t far behind. Emerging markets like Boise, Bozeman and Reno were in the same league, chalking down high single-digit increases. Investors competed fiercely for opportunities in the region. Apartment sales volume in the five Intermountain metros (the “Intermountain 5”) covered by RED Capital Research (“RCR”) — Colorado Springs, Denver, Las Vegas, Phoenix …
TEMPE, ARIZ. — A partnership between Catellus Development Corp. and Mortenson will bring a dual-branded hotel to the Novus Innovation Corridor in Tempe. Groundbreaking occurred this week, with completion slated for summer 2020. Situated at the corner of East Veterans Way and East Sixth Street, the eight-story hotel will feature 259 rooms under the Hyatt Place and Hyatt House flags. The LEED-certified hotel will feature rooftop amenities, including a pool, bar, outdoor gathering area and fitness center. Additional amenities will include an open lobby, shaded patio spaces and banquet, meeting and outdoor event spaces. The property will be within walking distance of Arizona State University’s Sun Devil Stadium, as well as adjacent to Wells Fargo Arena and the planned multi-purpose arena. The project team include PK Architects, ESG Architects and Design Force Corp.
Bridge Investment Group Buys 304-Unit Verona Park Apartment Community in Arizona for $43.7M
by Amy Works
MESA, ARIZ. — Salt Lake City-based Bridge Investment Group has acquired Verona Park, an apartment community located at 1666 S. Extension Road in Mesa. Salt Lake City-based Millburn Co. sold the property for $43.7 million. Cindy Cooke and Brad Cooke of Colliers International of Arizona represented the seller, while Bridge Investment Group was self-represented in the sale. Built in 1981, Verona Park consists of 19 residential buildings totaling 248,224 square feet. The property features 304 apartments in a mix of one- and two-bedroom layouts, averaging 817 square feet. At the time of sale, 25 of the units had undergone renovations, leaving the remaining apartments with classic interiors for upgrading.
Conor Commercial, Globe Corp. Assemble 18.8-Acre Land Parcel for Airport 40 Spec Industrial Project in Phoenix
by Amy Works
PHOENIX — Conor Commercial Real Estate and Globe Corp. have assembled 18.8 acres within the Sky Harbor Airport submarket of Phoenix for the development of Airport 40, a 320,700-square-foot speculative industrial development. Construction is slated to begin in June, the two-building project will include Building 1, a 211,900-square-foot rear-load facility featuring 40 dock-high doors and six drive-in doors; and Building 2, a 108,800-square-foot property with 28 dock doors and four drive-in doors. Both buildings will feature 32-foot clear heights, built-to-suit office space, ample vehicle parking and 75 oversized truck trailer stalls. Mike Haenel, Andy Markham and Phil Haenel of Cushman & Wakefield negotiated the purchase of the parcels in three separate transactions for a combined total of $8.1 million.