PHOENIX — Southwest Network has leased 18,000 square feet of office space at West 101 Business Center in Phoenix. The center is located at 1840 N. 95th Ave. The Arizona nonprofit organization will relocate from the Garden Lakes area in the Southwest Valley, a smaller space than in the new lease. Michael Waxman of Levrose Commercial Real Estate represented Southwest. Tyler Smith of NAI Horizon represented the landlord, ViaWest Group, in this transaction.
PHOENIX — Lincoln Property Co. (LPC) has purchased a 104,618-square-foot office building in Phoenix for $24.6 million. The Class A building is located at 2777 E. Camelback Road in the Camelback Corridor. LPC plans to reposition the asset with lobby and common area renovations, an indoor tenant lounge and conference facility, a new outdoor lounge area, improved signage, and upgraded landscape and hardscape. Notable tenants at the property include UMB Bank, WFG National Title, The Lavidge Company, Hill International and Avison Young. Chris Toci of Cushman & Wakefield executed the sale. JLL’s John Bonnell and Chris Latvaaho serve as the building’s exclusive leasing brokers.
SAN DIEGO — Petco, a San Diego-based pet supplies retailer, has announced plans to open 12 new storesduring March 2017. Each new store will offer dog training areas, adoption centers and grooming salons. New store locations include Denver and Marana, Ariz. Petco has more than 1,500 Petco and Unleashed by Petco locations across the United States, Mexico and Puerto Rico.
PHOENIX — BKM Capital Partners has purchased the Northwest Business Center, a 227,603-square-foot industrial facility in Phoenix, for $17.2 million. The warehouse is located at 2310-2440 W. Mission Lane, 9014-9034 N. 23rd Ave. and 9013-9033 N. 24th Ave. BKM plans to implement a $3.5 million capital improvement program at the property. Planned improvements include a new roof, new parking lot, improved HVAC system and upgrades to the exterior including paint, landscaping and signage. Robert Buckley of Cushman & Wakefield represented the undisclosed seller.
PHOENIX — Riva Ridge Development has purchased CBIZ Plaza, a 266,231-square-foot office property in Phoenix, for $26 million. The 16-story tower is located at 3101 and 3111 N. Central Ave. CBIZ Plaza is 78 percent occupied. The Class B project was constructed in 1980. The seller was LNR Property Corp. Eric Wichterman and Mike Coover of Cushman & Wakefield executed the sale.
SEDONA, ARIZ. — DiamondRock Hospitality Co. (NYSE: DRH) has purchased the 88-room L’Auberge de Sedona and the adjacent 70-room Orchards Inn Sedona for a total of $97 million. The resorts are situated in the Red Rock region of Sedona on the banks of Oak Creek, just south of Flagstaff. DiamondRock plans to reposition the resorts through a $5 million capital investment plan, which will enhance the luxury cottages at L’Auberge, among other improvements. The renovations will be completed during the off seasons over the next two years for minimal disruptions. “This acquisition represents a rare opportunity to own two high-quality resort properties in a coveted, high-barrier-to-entry resort market,” says Mark Brugger, DiamondRock’s president and CEO. “While we believe the initial pricing of the deal is attractive, we have identified significant opportunities to increase profitability.” About $14 million has been invested in the resorts, its guest rooms and restaurants since 2015. Sedona is one of the highest growth markets in the U.S. hospitality industry, DiamondRock notes, with RevPAR (revenue per available room) increasing 11.3 percent in 2016. L’Auberge includes dining options Cress on Oak Creek and Etch Kitchen & Bar, while Orchards Inn features 89Agave Mexican restaurant, among other casual dining …
PAYSON, ARIZ. — MidCap Financial has arranged a $4.5 million bridge-to-HUD loan to refinance Compass Senior Living’s Majestic Rim Retirement Living, located in the Phoenix suburb of Payson. Majestic Rim is a 50-unit independent living facility built in 2006. Compass purchased the property in 2014 as an underperforming asset. MidCap’s bridge loan will refinance existing debt on the property.
TEMPE, ARIZ. — Carter Validus Mission Critical REIT II has purchased the 44,244-square-foot Tempe Data Center for $16.2 million. The facility is situated near Phoenix Sky Harbor International Airport, downtown Phoenix and downtown Tempe. The facility has been fully leased to a national provider of wireless voice, messaging and data services since 1997. It underwent remodeling in 1983, 2008 and 2011. The center features 15,000 square feet of white space, 8,711 square feet of office space and 20,533 square feet of warehouse space, including a 4,355-square-foot mezzanine level. CBRE’S Luke Denmon and Mindy Korth and Kirk Kuller of Colliers International represented the seller, El Dorado Holdings, in this transaction.
SURPRISE AND GLENDALE, ARIZ. — Canada-based Triumph Real Estate Investment Fund has acquired two shopping centers in metro Phoenix for $7 million. Acquisitions include the $4 million purchase of Triumph Bell West Ranch, a 20,225-square foot-shopping center located in Surprise; and the $3 million purchase of Triumph Glendale Crossing, a 10,595-square-foot retail center located in Glendale. Jon Rosenberg and Keri Davies of Levrose Commercial Real Estate/TCN Worldwide represented the buyer in the acquisition of Triumph Bell West Ranch from PWREO Bell & 303 LLC, and Triumph Glendale Crossing from Lawrence and Geyser. Danielle Davis of Levrose Commercial Real Estate/TCN Worldwide will handle leasing, and MODE Commercial Property Management has been selected to manage the properties.
SURPRISE, ARIZ. — Koelsch Communities has started construction of The Park at Surprise, a 155-unit independent living community in the Phoenix suburb of Surprise. The 202,000-square-foot project is being built on an 8.5-acre plot. Development costs are estimated at $46 million. The Park at Surprise will be the fourth Koelsch community in Arizona, and is scheduled to open in summer 2018. Madrona Point Development is partnering with RJ Development, both based in the city of Olympia, Wash., to develop the project. Koelsch Construction will serve as general contractor. Koelsch Communities operates 22 communities in seven states and is planning to open 16 communities in the next two years.
