Phoenix, Ariz. – ViaWest Group has sold two premier class A office buildings in the Phoenix metro area for a total consideration of $11.1 million. CBRE negotiated the sale to Melcor Development of the ±24,154-square-foot Perimeter Parkview Corporate Center at 8355 E. Hartford Drive Scottsdale, Ariz. and the ±35,066-square-foot Chauncey Professional Center located at 6930 E. Chauncey Lane, in Phoenix, for a combined ±59,220-square-foot investment ($187 PSF). The buildings commanded sale prices of approximately $4.1 million ($170 PSF) and $7 million ($200 PSF), respectively.

Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, ViaWest Group of Phoenix. The buyer, Edmonton, Alberta, Canada-based Melcor Developments Arizona, Inc., was represented by Tom Swan with Amcal Southwest.

ViaWest originally purchased the properties in two separate transactions. The Chauncey property was purchased in December 2006 in shell condition and ViaWest was able to lease up the property from zero percent in late 2007 to 100 percent by mid-2009 during a very difficult leasing period. This was done through building spec suites of varying sizes, creative marketing approaches and unique lease structures. The Perimeter Parkway property was bought at a trustee sale in January 2011 with a portion of the property leased and the balance in shell condition. Within one year of purchase the property was 100 percent leased.

Both Chauncey Professional Center and Perimeter Parkview are presently 90 percent leased, with one suite in each property becoming available within the last month. Those suites total 3,708 square feet and 2,486 square feet, respectively.

“These two assets are excellent properties that are of great quality and extremely well-located. Melcor should have much success with them. As a local value-add operator, we will continue to redeploy capital into our strategies that generate opportunistic-type returns,” stated Steven Schwarz of ViaWest Group

“The North Scottsdale/Airpark area has consistently outperformed the overall Phoenix market in net absorption of office space and is one of the top job-creating economies in the U.S.,” said CBRE’s Gabel. “In addition, these properties are both surrounded by first-class amenities, high-end executive housing and the Loop 101 Freeway making them very attractive to both current and prospective tenants, and solid investments for the buyer.”

The sale marks Melcor Developments Arizona, Inc.’s entrance into the Arizona market and ViaWest has been retained to continue management of both properties keeping its management portfolio in excess of 1.5 million square feet.

Built in 2007, Perimeter Parkview Corporate Center is a two-story, class A, multi-tenant office building situated in the Scottsdale Airpark submarket. The property has a high-quality tenant roll including Arizona State University’s WP Carey Graduate MBA Program, Interior Motives, Titus Brueckner & Levine PLC, BIC Distributors and Pro Sports Management. The property is located at the base of the McDowell Mountains, in the ±260-acre Perimeter Center Business Park. The business park is adjacent to the TPC Stadium as well as numerous residential and golf communities, resort hotels and an abundance of exciting dining and retail options.

Chauncey Professional Center, which was built in 2006, is located in the North Scottsdale Corporate Center master-planned commercial development. Tenants include Aspen Systems, Troche Fertility Clinic, Marcum Media, AZ Tech Finders, Nobis Technology Group, Landmark Management Group, MiCamp Solutions, Bottle & McInerney, Cadron Financial and Pogson Asset Management. Chauncey Professional Center is surrounded by first-class amenities, including the ±580,000-square-foot Scottsdale 101 retail power center, the ±200,000-square-foot Whole Foods anchored Shops at Chauncey Ranch, the ±465,000-square-foot Chauncey Ranch Autoplex, and a ±110,000-square-foot Lifetime Fitness. The property also benefits from proximity to high-end executive housing and the Loop 101 Freeway

Gabel and Marchildon should be reached at (602) 276-2779 for more information.

PHOENIX, AZ– The Real Estate Daily News reported this sale on February 20, 2014 see https://realestatedaily-news.com/w-p-carey-adds-19-million-building-tucson-international-portfolio/ for the story. Colliers has brought additional information to our attention that we wanted to share with our readers.

Colliers International of Phoenix completed the sale of a 143,650-square-foot Class A office building for $18.95 million, or $131.95 a square foot.

W. P. Carey Inc. on behalf of CPA^®:17 – Global, one of its managed REITs, purchased the building, which is leased to a single tenant. The seller was Summit Properties of Seattle.

Neil Glassmoyer, senior vice president; Tivon Moffitt, vice president; and Peter Bauman, senior associate; all of Colliers International in Greater Phoenix, served as brokers for the buyer and seller.

“The transaction is the largest office sale in Tucson based on square footage since January of 2008 and involves one of the highest quality assets in the market,” Moffitt said.

“This sale shows demand for assets in the Tucson market that have investment-grade tenants,” Bauman said.

Constructed in 2002, the building is located at in Tucson and is situated on 16 acres at the Tucson International Business Center.

“The buyer acquired this Class A office building well below replacement cost with a high-quality tenant in place,” Glassmoyer said.

Gino Sabatini, W. P. Carey Managing Director and Co-Head of Global Investments, noted, “The quality of the tenant and the criticality of the asset to their operations made this an attractive investment for W. P. Carey. The building’s size along with significant improvements made by the tenant are key factors in meeting the tenant’s unique requirements and consequently enhanced the investment value of the asset for us.”

Neil Glassmoyer, Tivon Moffitt and Peter Bauman with Colliers International in Phoenix handled the transaction and should be reached at (602) 222-5000.

Starwood Tucson Realty, an affiliate of Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) has completed the sale of Aloft Tucson University at 1900 E Speedway Blvd in Tucson to LVP Tucson, LLC and affiliate of Lightstone Value Plus Real Estate Investment Trust II, Inc., a public, non-traded REIT sponsored by The Lightstone Group (“Lightstone”), a privately held real estate company. The hotel commanded a sale price of $19 million ($123,377 per room) for the 154-room, 7-story hotel.

Originally built in 1972, the hotel underwent a complete redevelopment prior to its re-opening in April 2013 as Aloft Tucson University. Located at the southeast corner of Speedway and Campbell, hotel amenities include an outdoor Splash pool, the brand’s signature W XYZ® bar, a 24-hour fitness center and 1,723-square-feet of flexible meeting space, ideal for both business meetings and social gatherings.

As part of the agreement, the hotel will be managed under a long-term license agreement by Island Hospitality Management and continue to fly the Aloft brand flag.

“The sale of Aloft Tucson University highlights Starwood’s commitment to an asset-light strategy as we continue to seek the right owners and partners for our remaining owned real estate assets to create value for our shareholders,” said Simon Turner, President of Global Development for Starwood. “With favorable capital market conditions and improving hotel industry fundamentals, we’re seeing continued strong investor interest in our remaining assets from investors around the globe.”

Turner continued: “We are proud of the conversion-friendly strategy we’ve created for the Aloft brand. The Aloft Tucson University showcases the success of our conversion approach for older hotels with the appropriate capital investment, and its redevelopment allowed us to fine tune our approach to benefit future projects. We are pleased to broaden our relationship with both Lightstone and Island Hospitality Management, and look forward to collaborating with them on the future success of this property.”

“This is a premium-branded hotel in a strategic location poised for growth,” said David Lichtenstein, Chairman and CEO of The Lightstone Group. “Adjacent to the University of Arizona campus, with a student population of approximately 40,000, and sports complexes, the hotel is also in close proximity to the University of Arizona Medical Center, downtown Tucson, and numerous corporate offices, and has good accessibility to Tucson International Airport and Interstate 10. We believe this acquisition is representative of Lightstone’s ability to identify attractive investment opportunities.”

The Lightstone Group was founded in 1988, and is a privately held real estate company with a most diversified real estate portfolio. Lightstone’s portfolio consists of more than 11,000 multifamily units, 8.1 million square feet of office, hotel, retail and industrial assets, and 12,000 fully-improved residential lots throughout the United States. Lightstone and its affiliates have been one of the largest developers of outlet shopping centers in the United States over the last 10 years. The company has owned, managed and developed 25 outlet centers totaling more than 8 million square feet. Lightstone is one of the most active residential and hospitality developers in New York City with more than $1 billion of projects under development in Manhattan, Brooklyn and Queens.

Lichtenstein of the Lightstone Group can be reached at (732) 369-0129.

[mepr-show rules=”58038″]Sale date: 4/9/2014. $4 million down payment. APNs: 125-01-078B & 087A. Sale price included $1.7 million in personal property such as furniture and equipment. [/mepr-show]