DENVER – Quiznos has filed for pre-packaged Chapter 11 bankruptcy to restructure its finances, increase the company’s flexibility, enhance its operations and reduce the company’s debt by more than $400 million. The Denver- based sandwich maker voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in order to implement its pre-packaged plan. All but seven of Quiznos' nearly 2,100 restaurants are independently owned and operated by franchisees in the U.S. and 30 other countries. These restaurants are not a part of the Chapter 11 proceedings. They are open and operating as usual. The company plans to work with its franchisees both here and abroad to strengthen the brand, build momentum, and improve growth and profitability. Quiznos has received a commitment for $15 million in debtor-in-possession financing from its senior lenders, which, subject to Court approval, will be available to support its ongoing operations during the Chapter 11 proceedings. The company's distribution centers are still open and fulfilling orders. Akin Gump Strauss Hauer & Felds LLP is serving as Quiznos’ legal advisor; Lazard Freres & Co. LLC is serving as the company’s financial advisor; and Alvarez & Marsal is serving as the restructuring advisor.
Western
SEATTLE — Kilroy Realty Corporation (KRC) has acquired a 140,605-square-foot life sciences facility in Seattle for $106 million. The four-story facility is located at 401 Terry Ave. North in the city’s South Lake Union neighborhood. It sits adjacent to KRC’s Westlake Terry campus. Notable tenants in the surrounding area include Amazon.com, the Bill and Melinda Gates Foundation and the Fred Hutchinson Cancer Research Center. The LEED-Gold property was developed in 2003. It was one of only five life science facilities developed in the Puget Sound region during the past 10 years. The building is fully leased to Institute for Systems Biology (ISB) through 2021. ISB is a foremost strategy developer for the fields of biology and medicine. KRC was represented by Peter Roth of Allen Matkins law firm. Joseph Delaney and Bryan Helfer of the Foster Pepper law firm represented the seller, Vulcan Realty Corp., in this transaction.
STANTON, CALIF. – A & M Properties has acquired the 194-unit Briarwood Square apartment complex in the Orange County submarket of Stanton for $40 million. The community is located at 7545 Katella Ave. along the Katella Commercial Corridor. It is 95 percent occupied. Joe Leon and Javier Rivera of JLL Capital Markets represented the seller, Carmel Partners, in this transaction.
ANAHEIM, CALIF. — Gateway One Lending & Finance, LLC has leased 50,000 square feet of office space in Anaheim. The space is located at 160 N. Riverview Drive. The lease is valued at $5.5 million. Gateway One is an indirect auto finance lender. Chris Migliori of DAUM’s Orange County office represented both Gateway One and the landlord, Anaheim Hills Office Plaza, LLC, in this transaction.
PHOENIX — Greenway Plaza, a 66,678-square-foot retail property in Phoenix, has received $3 million in acquisition financing. The plaza is located at 1849-1855 W. Greenway Plaza. It contains three retail buildings that were constructed in 2000. Financing was based on a three-year term and 20-year amortization schedule. It was arranged by John M. Stewart of NorthMarq Capital’s Denver office through the firm’s relationship with a regional bank. The borrower was not named.
IRVINE, CALIF. – A 225,992-square-foot, Class A office building in Irvine has received $28 million in joint venture equity. Greenlaw Partners will use the equity proceeds to acquire the ownership interests of its previous venture partners. The building is located at 18301 Von Karman. The loan was arranged by HFF’s Todd Sugimoto and Jeff Sause. The equity was secured through Cigna Investments in an off-market recapitalization. HFF also advised the new partnership on the senior loan.
SAN JOSE, CALIF. — Sares Regis Multifamily Fund, L.P., has acquired the 144-unit Alterra San Jose apartment community for an undisclosed sum. The community was built in 1988 at 1640 La Rossa Circle in San Jose. It is situated near the intersection of Almaden Expressway and CA-87. Sares Regis represented itself in this transaction. The sellers, Pacific Urban Residential and Hunt Companies, acquired the property on an off-market basis in early 2011. They were represented by HFF’s Nathan Blair and Charles Halladay.
LAS VEGAS – The 72-unit Oasis Crossings Apartments in Las Vegas has sold to Hamilton Zanze (HZ) for $7.4 million. The Class B-plus community is located at 1111 S. Cimarron Road in Summerlin/The Lakes submarket. HZ plans to implement a value-add program that will include capital improvements, expense reduction and new property management via Mission Rock Residential. This is the firm’s second recent acquisition in Las Vegas and its seventh acquisition in the Western U.S. in the past 12 months.
PHOENIX — Goodwill Industries of Central Arizona has signed a 10-year lease for 31,200 square feet at South Mountain Crossing in Phoenix. The space is located at the northwest corner of Southern Avenue and 35th Avenue. Goodwill was represented by Andy Kroot of Velocity Retail Group. The landlord was represented by Neil Board of Western Retail Advisors.
PHOENIX – The former Castle Hot Springs resort in Yavapai County has sold to CHS3, LLC for $1.9 million. The resort is located on North Castle Hot Springs Road in Castle Hot Springs, just north of Phoenix. The LLC purchased the property through an online auction. The 210-acre Castle Hot Springs resort opened in 1896. Its 118-degree natural hot spring produced 180,000 gallons of pure water daily. The seller, EktornetUS, a susidiary of Swedbank, was represented by Dave Headstream of CBRE’s Land Services Group in Phoenix. He worked in conjunction with CBRE Auction Services.