Lee & Associates Negotiates $26.5M Sale of AvAir Headquarters in Chandler
CHANDLER, Arizona – Rich Uncles NNN REIT Inc. of Costa Mesa, Calif., expanded into the Phoenix market through a $26.5 million ($163 PSF) purchase of AvAir’s headquarters, a 162,714-square-foot creative office/warehouse space. The property is located at 6877 and 6971 West Frye Road in Chandler.
Principal Andy Ogan of Lee & Associates Arizona brokered the sale. The seller, Reasons Aviation LLC, was assisted by John Hink of Tiffany & Bosco P.A.
The high-tech, state-of-the-art, two-building complex is currently occupied as headquarters for AvAir Inc., a commercial aircraft parts business. The sale agreement allows AvAir to occupy the space for 15 years. Developed in 2015, the two buildings sit on 6.17 acres in the Santan Technology Park at the northeast corner of Loop 202 and 56th Street.
“AvAir’s headquarters created an ideal opportunity for Rich Uncles to break into the Valley market by acquiring a new cutting edge, creative/office warehouse development with a global aviation tenant,” said Ogan. “This transaction will provide long-term, durable cash flows in a market poised for sustained growth and capital appreciation.”
Pima County Board of Supervisors selects New Chair and Vice Chair
PIMA COUNTY – The Pima County Board of Supervisors voted unanimously January 16 to name Supervisor Richard Elías as the new board chair. The District 5 supervisor has served on the board for 15 years, since February 2002, and previously served as board chair from 2006 – 2009.
The board selected District 2 Supervisor Ramón Valadez as vice chair. He has served on the board since 2003 and previously served as board chair from 2010 – 2013.
Chair Elías replaces District 3 Supervisor Sharon Bronson, who had served as board chair since 2014. Supervisor Bronson has previously served as board chair from 1999-2000, and from 2002-2005. The board voted her as acting chair, who serves as chair if the chair or vice chair are both unavailable for a meeting.
The board chair is responsible for, among other things, running board meetings and signing legal documents as required by state statute and County Code.
Orion Handles Both Sides in Local Daycare NNN Investment
PHOENIX – ORION Investment Real Estate facilitated the sale of a fully occupied, freestanding building for $385,000, or $196 per square foot. Selling at a 10.3% cap rate, the building was NNN leased to a local daycare operator, who currently has two other locations, and went under extensive renovations in 2017.
The property is located within a residential neighborhood in East Phoenix, off of 30th Street between Osborn and Thomas Road. The SR-51 Freeway is located less than one mile to the east of the property. Phoenix Children’s Hospital is also located less than one mile away.
Nick Miner, CCIM, and Jennifer Eggert of ORION Investment Real Estate represented both sides of the transaction. Miner said, “This was a win-win situation for both Buyer and Seller. This is a great first property for an investor getting into commercial real estate with little downside and a good return going in.”
The Seller was RSK Investors, LLC. The Buyer was locally-based Reddy Partners, LLC.
This was the Buyer’s first venture into a commercial real estate transaction and liked this property because of its location within the neighborhood. The fact that the potential downside could be offset by the rising residential market in the immediate area was enticing and offered great return for the property.
For more information on this and other high return daycare centers for sale, Miner and Eggert should be reached at 480.634.6934.
Pat Williams named head of JLL Phoenix office
Founding Phoenix team member brings long-time expertise, vision to new role
PHOENIX, Arizona – The Phoenix office of JLL has named Pat Williams as Senior Managing Director and new head of the Phoenix JLL office, overseeing a team of 46 local commercial real estate brokers specializing in tenant and investor representation across a broad range of product types.
Williams previously served as the head of the JLL Phoenix tenant representation team and co-leader of the Phoenix office alongside Senior Managing Director Dennis Desmond. With the transition, Desmond will move to an expanded role within the JLL Capital Markets group.
Williams joined the local JLL office in 2000, serving as a tenant representation expert and one of six founding team members within what – at the time – was the Staubach Company, the nation’s leading tenant representation firm. In 2008, the Staubach Company was purchased by JLL. In 2011, Williams was promoted to Managing Director and named head of the JLL Phoenix tenant representation team.
Since that time, Williams and Desmond have grown JLL’s Phoenix office to reflect the company’s comprehensive commercial real estate platform, which in Phoenix now includes tenant and landlord (agency) office, industrial, retail, healthcare and data center representation; commercial real estate investments (capital markets); multifamily investments; property and facility management; development services; and related services within the real estate leasing, investment and management process.
“It has been gratifying to watch the Phoenix office grow into a leading market position, yet still maintain the attention to detail and client-centric philosophy that we’ve had from the start,” said Williams. “I’m honored to work alongside this talented group of experts, and look forward to the opportunities we have ahead of us to put Phoenix’s market strengths to work for our clients.”
Since Williams joined the Phoenix office, it has grown from six to more than 60 brokers and support team members. In 2016, the Phoenix team completed 34 million square feet in lease and sale transactions valued at $1.5 billion, directed $105 million in project management and currently manages a 25.2 million-square-foot portfolio.
Prescott Valley Horseracing Track Sells for $3.22 Million
New Ownership Plans to Renovate Site, Restore Live Racing
PHOENIX, Arizona – CBRE announced the sale of Yavapai Downs, a 124-acre horse racetrack property, located 11 miles from downtown Prescott on Highway 89A.Chris Ackeland John Amory Jr. with CBRE Phoenix represented the buyer, Phoenix-based JACOR Partners. The property was sold for $3.22 million out of U.S. Bankruptcy Court in a deal that closed Jan. 11, 2018.
The sale encompasses the Yavapai Downs racetrack, a 90,000-square-foot clubhouse/grandstand and 800 horse stalls. The new owners include Tom, Dave and Mike Auther as well as Joe Jackson of JACOR Partners along with Kentucky Downs president Corey Johnsen. Together, the group plans to renovate the site and restore live racing to the venue, which ceased operations in 2010. The track, which is located approximately 90 miles northwest of Phoenix, has traditionally been a destination for horseracing fans from across the Valley.
“The Prescott area has a long, rich history of horseracing dating to the 1930s, and we’re excited to bring this tradition back to this part of Arizona,” said JACOR principal Tom Auther. “With Corey’s expertise in managing horseracing facilities, we will once again offer residents, visitors and horserace lovers alike a memorable summertime experience.”
CBRE : U.S. Office Vacancy Ends 2017 at 13 Percent, Tucson declines 60 bps
CBRE is reporting vacant office space in the U.S. increased slightly by 10 basis points (bps) during the fourth quarter of 2017 (Q4 2017) to 13 percent, according to the latest analysis from CBRE. For the year, vacancy inched up 10 bps, marking the first year-over-year increase in vacancy since 2010.
The vacancy rate in suburban markets increased 10 bps, to 14.2 percent and downtown vacancy ticked up 10 bps to 10.7 percent. Vacancy continued to fall in a majority of U.S. office markets, and the national office vacancy rate remains near its post-recession low.
‘The fourth quarter’s slight office vacancy rise can be attributed to an increase of supply and a slight loosening in the tightness of the market as we have closed in on the previous cyclical low,’ said Spencer Levy, Americas’ head of research for CBRE.
The largest metro-area declines were recorded were recorded in Riverside (-80 bps), Salt Lake City (-70 bps) and Richmond (-60 bps). Tucson, Wilmington, Louisville, and Indianapolis, each declined by 60 bps or more. In the past four quarters, the vacancy tightening has been found in mid-sized markets located predominately across the Sun Belt, including Tucson, Las Vegas, Richmond, Albuquerque, Louisville, Orlando, Wilmington, Tampa, Phoenix, Kansas City, Riverside, Detroit and Jacksonville. The nation’s lowest vacancy rates list in Q4 2017 were led by tech markets: Seattle (7.6%), San Francisco (7.8%), Austin (8.2%), Raleigh (8.3%), New York (9.4%), and Boston (9.8%).
‘Despite the slight rise in vacancy, we see the new supply as healthy overall, as many markets were becoming space constrained, in particular for large block space,’ added Mr. Levy.
Carissa Fairbanks, IOM and Laura Nagore, IOM of Tucson Metro Chamber Graduate from Institute for Organization Management
A Leadership Training Program Produced by the U.S. Chamber of Commerce Foundation
Tucson, AZ – The Tucson Metro Chamber is pleased to announce that Carissa Fairbanks, IOM, communications director and Laura Nagore, IOM, chief financial and operations officer have graduated from the Institute for Organization Management, the professional development program of the U.S. Chamber of Commerce Foundation, and has received the recognition of IOM.
Awarded to all graduates of the Institute program, the IOM graduate recognition signifies the individual’s completion of 96 hours of course instruction in non-profit management. In addition, participants can earn credit hours toward the Certified Chamber Executive (CCE) or Certified Association Executive (CAE) certifications. Nearly 1,000 individuals attend Institute annually.
“Institute graduates are recognized across the country as leaders in their industries and organizations,” said Raymond P. Towle, IOM, CAE, the U.S. Chamber Foundation’s vice president of Institute for Organization Management. “These individuals have the knowledge, skills, and dedication necessary to achieve professional and organizational success in the dynamic association and chamber industries.”
Since its commencement in 1921, the Institute program has been educating tens of thousands of association, chamber, and other non-profit leaders on how to build stronger organizations, better serve their investors and become strong business advocates. Institute’s curriculum consists of four week-long sessions at five different university locations throughout the country. Through a combination of required courses and electives in areas such as leadership, advocacy, marketing, finance, and investor development, Institute participants are able to enhance their own organizational management skills and add new fuel to their organizations, making them run more efficiently and effectively.
“The U.S. Chamber of Commerce Institute for Organization Management (IOM) is a professional development program that keeps standards of performance very high,” said Michael Varney, president & CEO of the Tucson Metro Chamber. “When a Tucson Metro Chamber staff person graduates from IOM, we know they have a broadly based platform of core competencies that will help them excel in everything they do and keep the Tucson Metro Chamber on the cutting edge of performance.”
Institute for Organization Management is the professional development program of the U.S. Chamber of Commerce Foundation. It is the premier nonprofit professional development program for association and chamber professionals, fostering individual growth through interactive learning and networking opportunities.
The Tucson Metro Chamber is an investor-based business advocacy and economic expansion organization that represents more than 1,500 businesses, employing more than 160,000 employees in the greater Tucson area.
Maracay Closes on 80-Acre Land Purchase in Peoria
94 oversized homesites feature some of the largest lots Maracay has developed
PEORIA, Ariz. – Maracay Homes, a wholly owned company of the TRI Pointe Group (NYSE: TPH), closed on 94 premium homesites in Peoria, Arizona, for a total purchase price of $7.56 million ($80,425 per lot).
The 80-acre land parcel, located at 77th Avenue and Pinnacle Peak Road, will be developed into a new, single-family home neighborhood featuring all single-story homes, ranging from approximately 2,990 to 4,389 square feet. The gated community is scheduled to begin development in early 2018 with an anticipated open for sales date in early 2019.
Bret Rinehart and Ryan Semro of Land Advisors Organization in Scottsdale brokered the transaction between Maracay and the seller, Melcor Developments Arizona, Inc., an entity owned by Melcor out of Edmonton, Canada. Homes are planned to be built on oversized homesites, ranging from more than a quarter-acre to nearly full-acre lots.
“Homesites at Riverwalk are deep and many back to open space,” said Jason Weber, Maracay Homes’ vice president of land acquisitions and development. “On select homesites, there will be options for detached or attached RV and accessory garages to accommodate boat or RV storage, and larger backyards.”
A quarter of the homesites will back to dedicated open space and this community is in close proximity to Ludden Mountain, Eastwing Mountain and the Hedgpeth Hills in Thunderbird Park, a 1,185-acre conservation park dedicated to preserving the area’s beautiful desert-mountain environment. Nearby, residents will enjoy easy access to north Peoria’s blend of year-round recreation and entertainment opportunities. Active families and weekend warriors alike flock to the area where Lake Pleasant stretches across 10,000 acres, offering an oasis of recreation activities, from wake boarding, water skiing and kayaking, to fishing, sailing and paddle boarding.
Beyond the waterfront, this part of the city boasts multiple desert parks that provide easy access to hiking trails and horseback facilities via multiuse paths that skirt the area’s regional and municipal parks. Peoria’s park system is touted for its effortless blend of natural beauty and burgeoning urban lifestyle. Peoria also lays claim to a rich cultural scene, top-rated golf courses and sports centers, attractive dining and retail hubs, highly rated schools, and an emerging market of high-wage companies and major employment corridors.
52 Acres in Pinal County Sold for Future Residential Subdivision
Growth in Queen Creek attracting builders and developers
PHOENIX, Arizona – Cushman & Wakefield announced that Magic Lake 80, LLC of Columbus, Ohio sold 52-acres at Hunt Highway and Heritage Road in Pinal County, Ariz. Lookout Mountain Partners, LLC of Scottsdale, Ariz. purchased the land for $1.25 million ($24,038 per acre).
Brian Rosella of Cushman & Wakefield represented the seller. The buyer, Lookout Mountain Partners, plans to gain entitlements for a residential subdivision to sell to homebuilders.
Cushman & Wakefield is tracking land transactions in the Hunt Highway/San Tan Corridor and has noticed that the number of transactions rose 39% from 2016 to 2017. “The Hunt Highway corridor is receiving a lot of attention from builders and developers right now because of all the growth in Queen Creek,” said Brian Rosella.
New Broker Joins Cushman & Wakefield | PICOR Retail Team
TUCSON, ARIZONA — Roxanne Harding has joined the Cushman & Wakefield | PICOR retail team. Roxanne is a Tucson native and University of Arizona graduate (#beardown). She specializes in the sale and lease of retail properties in the region.
Roxanne has had the opportunity to watch the city grow while observing the market as it evolves and adapts with time. She began her real estate career with a large Tucson residential brokerage, successfully representing both buyers and sellers before joining C&W | PICOR’s retail team.
Her diverse background allows her to proactively devise unique and strategic solutions for her clients. Roxanne leverages her skillset and company resources to provide cost-effective and timely solutions for her clients’ real estate needs. Through her proactivity and commitment, she has developed a reputation for service grounded in integrity, creativity, and hard work.
Roxanne complements the retail team of Greg Furrier, Rob Tomlinson and Aaron LaPrise. Together, they embrace this changing retail landscape and look forward to devising creative solutions for landlords and retailers in the years ahead.
Cushman & Wakefield Negotiates Sale in Northwest Phoenix
PHOENIX, Arizona – Cushman & Wakefield completed the sale of Deer Valley Crossing, located at 21725 N. 20th Avenue in Phoenix. Phoenix-based Airpark Pak N Ship, Inc. purchased the property from 5000 South Prairie, LLC of Scottsdale, Ariz. for $1 million ($134 PSF).
Cushman & Wakefield Senior Director Chris Hollenbeck represented the seller.
The 7,441-square-foot property was constructed in 2007 and includes five suites currently 66% occupied. Airpark Pak N Ship plans to occupy all remaining vacancy within the property so the building will be at 100% occupancy. Airpark Pak N Ship has been leasing the building for several years and an SBA financing gave them an opportunity to purchase the property.
“This was a great transaction with a well-known business in the area who was able to use SBA financing to purchase a building of their own,” says Chis Hollenbeck.
Located on the hard corner of the Deer Valley Airpark, the busiest private aviation airport in the US according to Federal Aviation Administration (FAA) statistics, Deer Valley Crossing is conveniently located a mile from Honeywell and Cox Communications headquarters and less than 3 miles from the USAA Insurance Campus. With excellent visibility along Deer Valley Road, the property is less than 1 mile east of the I-17.
Valley Partnership Elects New Board of Directors and Officers for 2018
Phoenix, Arizona – Valley Partnership, the Valley’s leading voice for responsible development, recently elected their 2018 Board of Directors and Executive Committee. The organization has continued to cultivate leadership throughout its membership, focused on those strong voices and employers who understand the need for thoughtful development in the Valley.
“Our Valley Partnership directors are leading some of the most exciting developments and redevelopment projects around Metro Phoenix. Their expertise will directly support Valley Partnership and our mission to work collaboratively with regulators and policymakers to continue to thoughtfully grow our region and its economic base,” said Cheryl Lombard, President/CEO of Valley Partnership.
On December 1, 2017, the Valley Partnership Board of Directors unanimously approved its Board Officers for 2018 and its Board of Director Nominees for their terms as voting and ex-officio members.
Board Officers for 2018: Todd Chester, WDP Partners – Chair Jill Hegardt, DMB – Vice Chair Tim Brislin, Harvard Investments – Treasurer Jim Kenny, El Dorado Holdings – Secretary Brett Hopper, The OPUS Group – Past Chair Jay Kramer, Fennemore Craig, P.C. – General Counsel
Board of Directors: Chris Anaradian, Town of Queen Creek Lisa Atkins, Arizona State Land Department Bob Bambauer, Sunbelt Holdings Rob Bassett, Pederson Group Chapin Bell, P.B. Bell Companies Molly Ryan Carson, RYAN Companies John Creer, ASU Brandon Dillingham, HINES Mari Flynn, Ashton Woods Molly Greene, Salt River Project Dena Jones, Fidelity National Title Bryce Lloyd, FirstBank Nicole Maas, Kitchell Michael Martin, APS Rusty Mitchell, Luke Air Force Base Jeff Moloznik, RED Development Carolyn Oberholtzer, Bergin, Frakes, Smalley & Oberholtzer Garrett Newland, Macerich Laura Ortiz, Evergreen DevCo Michele Pino, Land Advisors Paul Rhodes, Vestar Alan Stephenson, City of Phoenix Pat Williams, JLL
Valley Partnership is the Valley of the Sun’s premier advocacy group for responsible development. For more than 30 years, Valley Partnership has represented the commercial, industrial and master-planned community industries and presented a balanced, pro-development perspective. Valley Partnership provides the best education and networking opportunities for commercial real estate professionals.