Phoenix, Arizona – CBRE announced the $8.4 million or $314/PSF sale-leaseback of 1860 West University, a 26,750-square-foot creative office building in Tempe, Arizona. Oregon-based Pinnacle Healthcare acquired the property from iT1 Source, LLC, an IT solutions company, in a 1031 exchange. iT1 Source will continue to occupy the property through a long-term lease.

Geoff Turbow, Matt Pourcho, Anthony DeLorenzo, Gary Stache, Bryan Johnson and Doug Mack of CBRE Investment Properties – SoCal/Phoenix Colton Trauter and Bill Blake of Lee Associates in Phoenix represented the seller in the transaction.

The single-story Class A creative office building was renovated in 2018 and features open/collaborative floor plans, superior quality interior finishes, a rooftop solar system, excellent ingress/egress and a parking ratio of 4.3 spaces per every 1,000-square-feet.

“The property is in an excellent Tempe location and occupied by an established tenant with long-term commitment to the area,” said CBRE’s Turbow. “It was an ideal property to satisfy the buyer’s 1031 exchange requirements and our team worked quickly and seamlessly to close escrow in less than two weeks. We continue to see ample demand from investors located outside of Arizona.”

Office demand continued to flourish in the Tempe submarket in 2019, with 303,023-square-feet of positive net absorption in the first three quarters of the year, according to CBRE Researcg.

The property offers an abundance of nearby amenities and immediate access to AZ-143, Interstate 10 and the Loop 202 freeway and is nearby to the Loop 101. Arizona State University and Phoenix Sky Harbor International Airport are less than 10 miles away.

By: Terri Jo Neff

A court-appointed receiver has been granted temporary control of a large pecan operation in eastern Cochise County after the owners defaulted on two loans worth $20 million.

Robert Marcus, an Illinois-based attorney, has been put in charge of all operations of Victor Produce, Inc. and its subsidiary company Victor Produce of New Mexico which grows pecans on nearly 1,500 acres in Cochise County near the New Mexico border.  He filed a court-ordered Oath last week, promising to discharge the duties of receiver in obeyance with orders put forth by Judge John Kelliher.

Marcus specializes in agribusiness law, including the Perishable Agricultural Commodities Act. His appointment was requested by Brighthouse Life Insurance Company, which loaned $11 million and $9 million in May 2018 to the Victor Produce companies, as well as a trust controlled by Jimmy L. and Christina J. Victor, and the Victors personally.

The loan notes mature in January 2029, with Brighthouse holding collateral in the form of a Deed of Trust which grants the lender a first priority lien on property owned by the Victor Produce companies and the trust. The lien affects several parcels of pecan fields located near San Simon east of Willcox, as well as buildings, storage facilities, wells, water rights, rents, and crop income.

Court records show the July 2019 debt payment was missed, after which Brighthouse declared the loans due in full, which totaled more than $21 million with outstanding interest. The lender then applied for appointment of a receiver in October to protect the collateral and to preserve any revenue streams.

Kelliher, a judge with the Cochise County Superior Court, approved the receivership over the objection of the borrowers. His order authorizes Marcus to “take possession of the Property to manage, conserve, operate, and protect it, pending a trustee’s sale” and gives the receiver “complete and exclusive control, possession and custody” of all property, bank and credit accounts, cash, and accounts receivable.

The order also requires the borrowers to provide Marcus with all ledgers, documents, contracts, security codes, passwords, and other information “necessary to operate the property.”

Marcus is to be compensated at $450 per hour plus costs, including a $10,000 surety bond required by the court. He must file periodic reports with the judge as to his actions. In the meantime, attorneys for Brighthouse and the borrowers are free to pursue a consensual settlement to resolve the delinquent debt.

PHOENIX, Arizona – Cushman & Wakefield completed the sale of two North Phoenix industrial parks located in the I-17 Corridor for a total of $25 million. The two properties, Gateway Corporate Park and Gateway Metro Park, were controlled by San Francisco-based Stockbridge Capital Group and purchased by Phoenix-based Harrison Properties.

Bob Buckley, Tracy Cartledge and Steve Lindley of Cushman & Wakefield’s Phoenix represented the seller, Stockbridge Capital Group, in the transaction.

“Well locate and with broad appeal to service sector tenants in the I-17 Corridor, the two properties have excellent upside potential for Harrison Properties,” said Buckley.

The two multi-tenant, industrial business parks totaling 309,585-square-feet were 74% occupied at the time of sale and are located a half-mile from a full-diamond interchange at the I-17.

Gateway Corporate Park, located at 2432 W. Peoria Avenue, is a four-building industrial park totaling 110,004-square-feet. This project features flexible suite configurations with 13’-18’ clear height, 80’-130’ bay depths and 400 ft. of frontage on Peoria Avenue. Built in 1987, the property has an upscale contemporary architectural design.

Gateway Metro Park, located at 2320 W. Peoria Avenue, totaling 199,581-square-foot spread across 18 buildings features 14’-16’ clear height, 690 ft. of frontage on Peoria Avenue and sits on 15.02 acres. Built in 1983 and 1984, the buildings feature tilt-up concrete construction and attractive glass lines, ensuring a modern, upscale tech setting.