GREEN VALLEY, ARIZONA – The former Chase Bank at 151 West Esperanza Blvd in Green Valley sold for $1.1 million ($172 PSF).

Built in 1968, the 6,389-square-foot building sits on a .84-acre lot and sold with the safe still intact.

The buyer plans to integrate safe and all into the conversion to a veterinary clinic within the next 9 – 12 months.

Dave Hammack, Principal, Retail Specialist with Cushman & Wakefield | PICOR, represented the seller, JP Morgan Chase Bank, NA. Zdravko “Z” Manov with GILES Healthcare Real Estate represented the buyer LJN Properties, LLC. Stacy Nolasco, DVM of Valley Verde Veterinarians.

For more information, Hammack should be reached at 520.546.2712 and Manov can be contacted at 602.635.7776.

To learn more, see RED Comp #9679.

PHOENIX, ARIZONA – CBRE has arranged $35.5 million in financing for a ground-up spec construction project called Converge Logistics Center in Phoenix, Ariz. The property is comprised of three to-be-built, Class-A industrial buildings that will feature approximately 500,000-square-feet of rentable space.

Mike Walker and Brad Zampa with CBRE Capital Markets’ Debt & Structured Finance group arranged the loan on behalf of the sponsors, ViaWest Group and its institutional capital partner. The non-recourse, floating rate loan has a three-year term with two extension options and was secured through a regional bank headquartered in the southern U.S .

Converge Logistics Center will be built on 28.6-acres, which the sponsor controls through a ground lease with the Kyrene Elementary School District. Individual buildings will range from 140,000 sq. ft. to 210,000 sq. ft. and may be leased to a single tenant or are divisible to 23,500 sq. ft for multi-tenant use. The buildings will have 32 ft. clear heights, a combination of dock-high and grade-level doors and office suites at the front. Construction on all three buildings broke ground in January and is estimated to complete in the fourth quarter of 2022.

“We’re thrilled with the outcome on the Converge construction financing. The institutional expertise and local track record of the joint venture had both regional and money center banks competing aggressively for this opportunity. Lenders were excited to get exposure to the incredibly strong fundamentals in the Phoenix industrial market,” said Mike Walker, e xecutive vice president, CBRE.

The industrial park is located at 15175 S. 50th St. in Phoenix’s Southeast Valley submarket, home to the metro area’s second-largest industrial presence with nearly 80 million-square-feet of industrial space. The property borders the I-10 freeway and is within a short walk of the Ahwatukee Foothills Towne Center, home to a variety of restaurants, shop and entertainment.

“With the growing industrial market in Phoenix, Converge Logistics Center helps fill the demand for small to medium tenants,” said Danny Swancey, partner, ViaWest Group.

Converge Logistics Center is the sponsorship’s third investment together in the Phoenix area. Metro Phoenix’s industrial market recorded over 21 million sq. ft. of positive net absorption in 2021, a new record for the region, according to CBRE research.

Phoenix, Arizona — Newmark announces it has completed the $25.2 million sale and $20 million financing of Plaza 550, a 92-unit, value-add multifamily community located at 550 E Earll Drive in Phoenix, Arizona.

The property traded from B&R Capital to Rise48 Equity, a Phoenix-based multifamily investment firm that has been an active buyer in the market. Newmark Senior Managing Directors Chris Canter and Brett Polachek and Executive Managing Director Brad Goff represented the seller in the transaction. Executive Managing Directors Scott Snowball and Darin Stovall of Newmark’s Debt and Structured Finance team helped secure the acquisition financing.

“Located next to Phoenix Country Club, Plaza 550 offers access to all of the fun and excitement that Phoenix has to offer,” said Canter. “And with approximately two-thirds of the units remaining in classic condition, the complex offers the new owner a strong value-add opportunity.”

Originally built in 1973 and renovated in 2020, Plaza 550 is an eight-building, garden style multifamily community featuring 92 one-bedroom units with an average unit size of 600 square feet. Unit interiors feature all-electric kitchens, breakfast bars, modern stainless-steel appliances, spacious walk-in closets and washers and dryers in renovated units. Property amenities include two large pools with sun decks, barbeque and picnic areas, laundry facilities, controlled access entry and Amazon package lockers.

Plaza 550 is situated in the North Central Avenue Business District and nearby several prominent job centers including Arizona State University’s Downtown Phoenix Campus, Camelback Corridor, Chase Field, Banner University Medical Center and Sky Harbor International Airport. The location also provides convenient access to the light rail and city transportation, offering residents access to local entertainment and shopping amenities.

According to Newmark Research, 268,331 multifamily units were absorbed nationally during the third quarter of 2021, marking the highest quarterly absorption figure in history. As more workers return to the office and the cost to own single-family homes continues to rise to historic levels, rental housing is anticipated to see strong demand. The increased demand is projected to support strong levels of rent growth through the end 2022. For the 12 months ending in third quarter 2021, Phoenix experienced the highest rent growth of all major U.S. markets, with annual average effective rent growth of 12.3%.