Hackman Capital Partners of Los Angeles (Michael Hackman, founder and CEO) paid $62.5 million ($20 PSF) on a bulk sale of 140 Hostess Brands, Inc. properties. The properties were spread out in 34 States, two in Arizona, one in Tucson and one in Phoenix. The sale was done by auction for the three-million-square-feet of mainly industrial real estate.

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[mepr-show rules=”58038″]The property at 3045 N Stone Avenue in Tucson and 3426 W Adams Street in Phoenix, both Hostess thrift shop outlets, were included in the bulk sale. Hackman also purchased the Hostess trucks and other assets that were at the properties for a separate amount.

“The Hostess bankruptcy translated into a rare opportunity to acquire significant real estate and equipment at one auction,” says Hackman. The auction took place August 16 in New York City, where Hackman affiliate Hackman Capital Acquisition Co. LLC served as stalking-horse bidder.

In July, Hostess Brands won bankruptcy court approval to unload the remainder of its assets at auction. Hackman Capital began negotiating with the estate to purchase the real estate and equipment. Although Hostess originally intended to sell the assets off individually or in small batches, Hackman—one of nearly 400 bidders that threw their hats into the ring in May and June—offered to buy them in bulk.

“As one of the largest wholesale bakers and distributors in the United States, Hostess Brands’ properties were strategically located with great visibility and recognition within their respective communities,” Hackman says. He notes that many of these assets, including warehouses, factories and retail stores, are located “in strong markets and on major regional distribution routes. This visibility and recognition has manifested itself in heightened interest and demand for the properties.”

The Twinkie brand that Hostess was best known for is currently owned by private equity firms Apollo Global Management and Metropoulos & Co. Twinkie production in the United States resumed after an absence on American store shelves, and became available again nationwide on July 15, 2013.

Hackman Capital was founded in 1986 and is a privately held, asset-based investment firm that focuses on the acquisition of industrial real estate and the purchase and sale of industrial equipment. The firm owned prior to this acquisition, through its affiliated entities, more than 130 facilities throughout the United States, totaling approximately 21 million square feet and over 20,000 acres of developable land.

Hackman plans to liquidate all the properties and other assets.

The Hilco Global Real Estate Team, headquartered in Northbrook, Illinois handled the transaction, marketing property and providing a broker opinion of value for each of the properties. Hilco is a privately-held, and helps companies and their professional advisors assess asset value, maximize value for said assets through asset monetization solutions, and enhance value through advisory and consulting solutions.

Hackman can be contacted at (310) 473-8900. Hilco Global Real Estate can be reached at (855) 755-2300.[/mepr-show]

[ismember]Sale date was 9/3/2013. Property in Tucson at 3045 N Stone Ave sold for $75,000, less than .001% of portfolio,  a sale price that was based on broker opinion of value. We were unable to determine the sale price for the Phoenix property.[/ismember]

The office building at 5102 E Pima Street in Tucson sold for $420,000 ($105 PSF) in a sale leaseback transaction to a private investor, Alexandra Siegal of Steamboat Springs, CO. The seller was Vast Commercial Real Estate of Tucson under an affiliate One Eighty Three Investment Group, LLC (Jon O’Shea and Rob Fischrup, principals).

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[mepr-show rules=”58038″]The 3,986 square foot building was fully occupied by two tenants when it sold, the seller Vast Commercial and Tool Force One. Vast will continue to occupy their portion of the building that includes the second floor in a sale leaseback agreement with the buyer.

The transaction was the buyer’s upleg in a 1031 exchange, who recently also purchased the Southwest Professional Plaza offices at 2122-2224 N Craycroft Road in Tucson for $2.2 million in which Vast represented the seller. For full story on Southwest Professional Plaza sale click here.

The property was built in 1974 and had undergone a complete renovation prior to the purchase. The seller bought the property in March 2012 to owner occupy.

Loui Antonucci of Keller Williams in Steamboat Springs, CO represented the buyer and Jon O’Shea of Vast Commercial Real Estate was self-represented in the transaction.

O’Shea can be contacted at (520) 780-4743. Antonucci can be reached at (970-871-1960.[/mepr-show]

[ismember]Sale date was 8/26/2013. Escrow was 2 weeks.  Property sold at a 9% cap rate.[/ismember]

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San Simeon, a 70-unit condominium project that currently operates as apartment rentals at 6091-6141 East Golf Links in Tucson sold for[mepr-show rules=”58038″]$3.5 million ($49,500 per unit). The investor, San Simeon East Golf Links LLC, is a private investment group based out of Gilbert, AZ (Corey Peterson, principal). The property was originally built in 1963 and rebuilt in 2012. The seller, San Simeon Apartment Partners, LLC of Costa Mesa, CA (John Orlandini, principal) purchased the property in 2011 for $700,000 ($10,000 per unit) from the lender in an REO sale and completely rebuilt the property.

“This was a unique opportunity to acquire a virtually new condominium project, with majority two-bedroom unit types, which later could be sold as individual units. Part of the key to this marketing assignment was to find a buyer that would appreciate the future value of condos and he buyer in this case was an experienced home buyer from the Phoenix market,” stated Alon Shnitzer with the Orion Multifamily Group.

“The seller of this property is an experienced Arizona apartment operator and owner. Throughout the years we have represented them on multiple purchases and sales. The sale of San Simeon Condominiums is their last property in Tucson,” according to John Kobierowski with the Orion Multifamily Group.

San Simeon Condominiums is located adjacent to Davis Monthan Air Force Base. Residents at the property enjoy the sparkling pool, children’s playground, mature landscaping and private gated courtyards. In unit amenities include washer/dryer hook-ups, granite countertops, tile flooring, upgraded lighting, new appliances and private patios or balconies. San Simeon Condominiums offers a diverse unit mix of one- two- and three-bedroom unit types with an average square footage of 838 square-feet.

The property has a walk score of 45 and a bike score of 76.

This acquisition of San Simeon Condominiums is the first multifamily/condominium purchase in Tucson. The property was purchased to keep as apartment units until such time as the market is ready for condominium sales.

Alon Shnitzer, John Kobierowski, Rue Bax, Doug Lazovick and Eddie Chang with ORION Investment Real Estate of Scottsdale negotiated the transaction. The ORION Multifamily Group should be reached at (480) 634-6934.[/mepr-show]

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[ismember]The sale date was 8/30/2013. Exact sale price was $3,445,000 net of a $20,000 credit to buyer. Total Rentable building area was 58,670 SF. San Simeon was about 93% occupied at COE. The unit mix is as follows: (9) 1/1 @ 615 SF; (30) 2/1 @ 810 SF; (20) 2/1+Den @ 900 SF; (8) 2/2 @ 985 SF; and (3) 3/2 @ 985 SF. [/ismember]