396-Unit Apartment Community Sold by Cindy Cooke and Brad Cooke of Colliers International

Phoenix, AZ – Colliers International in Greater Phoenix negotiated the sale of Country Brook, a 396-unit Class A apartment community at 4909 W Joshua Blvd., in Chandler, Arizona.

The seller was BAZV Country Brook, LLC, of Scottsdale, Arizona, a company formed by The Bascom Group of Irvine, California. The seller was represented by Cindy Cooke, senior executive vice president; and Brad Cooke, senior vice president, with Colliers’ Phoenix office. Bascom acquired Country Brook in 2013.

The buyer was Standard Portfolios, LLC, a private investment company in Arcadia, California. This is their first acquisition in metro Phoenix in five years.

Country Brook is a 396-unit, low-density asset on 23 acres and consists of 31 garden-style, two-story buildings and a leasing center. With 381,333-net-rentable-square-feet, the condo-style apartments include 134 one-bedroom, 182 two-bedroom and 80 three-bedroom apartments, ranging from 695 square feet to 1,210 square feet. Current occupancy is 95 percent. The complex was built in three separate phases in 1986, 1993 and 1996.

“Country Brook provides Standard Portfolios with a superior Class A asset, with the opportunity to add value through further interior and exterior upgrades and potential rent increases,” said Cindy Cooke. “Standard Portfolios recognized the strength of the area, which offers an exceptionally strong employment base, an average median income of $90,000 within a one-mile radius, and the location of Intel across the street. Intel is one of Arizona’s largest employers, with over 11,000 employees.”

Extensive exterior renovations and repairs were completed by Bascom, including the balconies, landings, roofs, exterior painting, resurfaced parking lots, upgraded leasing center, new gas BBQs, pool enhancements, and fitness center remodel. Amenities include three resort-style pools with televisions and shade sails, gas BBQs, state-of-the-art fitness club, two whirlpool spas, picnic area and ramadas, clubhouse with business center, 804 parking spaces, and four detached garages.

Country Brook is in proximity to the Loop 101, Loop 202 and I-10 freeways, providing easy access to the Phoenix metro area. The complex is also adjacent to Desert Breeze Park, one of the largest regional parks in the Southeast Valley with a carousal, lake, tennis courts and baseball fields spanning four acres.

The wait is finally over…or is it? Sweeping changes to lease accounting have been finalized. To varying degrees, these changes affect all global companies, across all industries. The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), collectively the “Boards,” have now separately issued new standards that will move virtually all leases onto the balance sheet. While the issuance of the new standards seems to symbolize that we have finally crossed the finish line of this epic journey, looking at the situation from an implementation perspective, the starter’s gun has sounded and we are just now leaving the blocks.

CBRE’s Global Task Force on Lease Accounting has developed a new white paper entitled The New Lease Accounting Standards Are Issued: What Real Estate Strategies Should Lessees Consider? (attached) and will continue to provide news and updates on this topic, as well as be a thought leader for the industry.

The new standards require lessees to essentially capitalize all leases, including real estate, equipment, automobiles, etc. Companies that report under International Financial Reporting Standards (IFRS) will treat all leases as Finance Leases with a front-end-loaded expense pattern, while those following U.S. Generally Accepted Accounting Principles (GAAP) will determine if the transaction more closely resembles a rental or a financing and classify the lease as either an Operating Lease or a Finance Lease, respectively. The effective date for the FASB standard (Accounting Standards Codification (ASC) 842) is 2019 for public companies and 2020 for private companies, while the IASB has an effective date of 2019 for all companies that will follow IFRS 16. Both Boards allow for early adoption of the new standards.

At first glance, the thought of capitalizing all leases—whether for a company’s headquarters or for a copy machine on the fifth floor—seems like it will necessitate a change in corporate strategy. However, once the initial shock of capitalization wears off, CBRE does not believe it will have a significant impact on real estate transactions. At the margins, it is possible that deals may be structured differently, especially in the United Kingdom where it is not uncommon to have unusually long lease terms ranging from 25 to 100 years. In this case, a greater number of companies may consider reducing the length of their leases or the types of renewal clauses within. However, in general, the vast majority of real estate leasing should emerge unscathed.

The changes to lease accounting may alter the “lease versus own” strategy for a company. To read more click here: New Lease Accounting Standards Feb 2016

Industry Veteran Richard Collins Jr. joins local industrial team

PHOENIX, AZ – The Phoenix office of JLL has hired industry veteran Richard Collins Jr. as a senior vice president and the newest member JLL’s local industrial brokerage team.

A 20-year industry veteran, Collins joins JLL from CD Commercial Advisors, where he served as President. Prior to this, he served for almost a decade as a Principal at Ross Brown Partners. Collins specializes in industrial real estate, but offers broad expertise in both office and industrial leasing and sales, and a strong understanding of the development, finance, property management and construction processes.

“Rick recognizes all of the elements involved in a successful commercial real estate deal, and he’s worked diligently in his career to gain an understanding of each of these factors,” said JLL Senior Managing Director Dennis Desmond. “His commitment to his trade and his genuine interest in his clients’ wellbeing make him an exceptional addition to our Phoenix industrial team.”

Collins joins an award-winning JLL industrial team ranging from Associates to Managing Directors, who regularly lead many of the Valley’s largest lease and investment deals.

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 230 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $56.4 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

In Phoenix, JLL is a market leader employing more than 540 of the region’s most recognized industry experts offering office, industrial and retail brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services. In 2015, the Phoenix team completed 17.2 million square feet in lease and sale transactions valued at $930 million, directed $125 million in project management and currently manages a 16.4 million-square-foot portfolio. For more news, videos and research resources on Jones Lang LaSalle, please visit www.jll.com or www.jll.com/phoenix.