Multi-Family Land Transaction on “Washington Street Corridor” Sells for $5.056 M

Ray Cashen of Cashen Realty Advisors, Phoenix

PHOENIX, ARIZONA — The “Washington Street Corridor” in Phoenix and Tempe continues to experience revitalization and significant new development.  This new infill development corridor uniquely combines the joint resources of the cities of Phoenix and Tempe.

Major developments include The Grand at Papago Park Center, a new 56-acre mixed-use development located at the southwest corner of Washington and Priest which includes 2.5-million-square-feet of retail and office buildings with 550 new luxury apartment units.  Another project is the Iron Mountain Data Center expansion on 48th Street just south of Washington. This expansion will bring the total Iron Mountain Data Center size to approximately 800,000-square-feet with additional investment of $400 million.  Additionally, Phoenix has approved the only new light rail station at 52nd Street and Washington at a cost of $12 million.  The station will open in early 2019.

Cabana Washington LLC, Rob Lyles and Patricia Watts of Deco Communities, has purchased 6.18 acres located at the northeast corner of the 202 and Washington in Phoenix, Arizona, for a price of $5.056 million ($18.78 PSF).  The seller in the transaction was 202 & Washington LLC, (Geoff Jacobs and Richard Felker, Principals) an affiliate of the Empire Group of Companies.

Ray Cashen of Cashen Realty Advisors in Phoenix was the broker on the transaction.

Deco Communities will be developing a 220-unit surface parked multi-family complex on the site with construction to commence by years end.  The 6.18 acre parcel is part of an 8.3 acre parcel purchased by Empire in January, 2017.  Empire paid $4.525 million for the 8.3 acres.

Cashen Realty Advisors was the broker in that transaction as well.  Empire will build a 976-unit mini storage facility on the remaining 2.12 acre parcel to the north of the multi-family project.

The Washington Street Corridor continues to develop as a vibrant infill urban core and more exciting development is in the works.  This is an area to be watched in the future as the Washington Street Corridor is the main connector between Tempe, ASU and Downtown Phoenix.

For more information, Cashen should be reached at 602-393-4447




New High-Rise Residential Tower in Phoenix Downtown Fillmore District

Fillmore Downtown City View

PHOENIX, ARIZONA — The Fillmore District in Downtown Phoenix continues to experience revitalization and significant new development.  Aspirant Development has purchased 1.2 acres fronting on the north side of Fillmore Street between 2nd Avenue and 3rd Avenue.  The property was purchased from The Fillmore Group, LLC, a Los Angeles / Hong Kong based Seller.

The purchase price was $3.5 million ($6.70 PSF) and is planned for 220-units in a 12-14 story apartment tower.

Ray Cashen of Cashen Realty Advisors was the Broker on the transaction.

Aspirant Development is also developing a 312-unit, 19-story apartment tower known as The Stewart located at the northwest corner of Central Avenue & McKinley.  That property under construction is slated to open in 2019.

The Fillmore District has been the recent focus of many developers, including Wood Partners who has built a 230-unit, 4-story apartment complex and Trammell Crow who will break ground this year for a 609-unit, 7-story apartment complex along Fillmore Street.  Additionally, Fore Development is in Escrow to purchase 2.7 acres at the southwest corner of 2nd Avenue & Fillmore Street and 2.0 acres located at the northwest corner of Monroe and 2nd Avenue is also in Escrow, both slated for high-density residential development.

Block 23 is under construction with builder, Red Development.  That project is a residential and retail tower which includes the first Fry’s grocery store in Downtown Phoenix.  The adjacent Block 24 is in Escrow with Hines Development who will be building a 30-story residential / hospitality tower over an existing four-level parking structure at the Collier’s Center Project.

Cashen has been involved in numerous Central Phoenix infill deals and is assembling another 2-acre parcel along Fillmore that he says will be the site of a future 15-story residential tower.

Central and Downtown Phoenix continue on a vibrant pace of residential development.  All of the amenities are now in place.  At long last, diverse employment, transportation, entertainment, education, services and a wide spectrum of residential options have combined to transform Downtown Phoenix into a very desirable urban environment.

For additional information, contact Ray Cashen at 602-393-4447.




Fiesta Mall in Mesa Sold for $30 Million Rehab

Fiesta Mall Interior Rendering (photo courtesy Ware Malcomb)

MESA, Arizona — The beleaguered Fiesta Mall located at 1445 W Southern Ave, Mesa, AZ at U.S. 60 and Alma School Road changed hands to a local Developer with plans to immediately design the Mall into a “Campus”.

According to public records, the property had an $83 million CMBS loan, that has been in the hands of special servicer LNR Partners Inc. for the past four years. The buyer paid $6.72 million ($21 PSF) and plans to invest up to an additional $30 million in the project.

The sale includes only the enclosed mall, surrounding parking areas and three nearby leased retail pads, totaling 318,495-square-feet. The property is currently less than 10 percent occupied.

Originally developed by the Homart Development Company in 1979, Fiesta Mall was previously anchored by four department stores. A Dillard’s clearance center and Sears remain as the mall’s only major tenants but were not part of the current sale.

The new Owners, Dimension Financial & Realty Investments, Inc. (“DFRI”) and its Principals, Jerry Tokoph and Wayne Howard, have developed many substantial projects throughout Metropolitan Phoenix.  These include the redevelopment of the Honeywell/Bull 160-acre mixed-use facility at I-17 and Thunderbird which now houses Fry’s Electronics, Best Buy and Lowe’s Home Improvement along with hundreds of residences and over a million square feet of offices leased to diversified national and local tenants.  Additionally, Mr. Tokoph acquired the former Revlon manufacturing facility with over 75 acres of land and redeveloped 700,000 square feet of flex/office and mixed industrial facilities.  Mesa Mayor, John Giles, said, “Fiesta Mall is the in the heart of the Fiesta District and I am excited to welcome DFRI to the team of developers working to revitalize one of Mesa’s greatest assets”.

Glenn Smigiel, Bob Young, Steve Brabant and Rick Abraham with CBRE’s Phoenix office and George Good with CBRE’s Chicago office represented the seller in the transaction.

Cashen Realty Advisors represented DFRI and Ray Cashen will spearhead marketing of the “Campus”.  He indicated the Property is ideally located in the epicenter of the Phoenix Metropolitan Area.  It is 15 minutes from Sky Harbor Airport, has over one million residents within a 10-mile radius, 10 minutes from Arizona State University, served by all transportation modes including light rail, bus and minutes from the 101 and 202 Freeways which connect to all the neighboring communities.  The Property is in close proximity to the Mesa technology boom area with firms like Apple, Intel, Boeing and Fujifilm minutes away.  The “Campus” contains over 1.2 million square feet including the Mesa Fiesta Corporate Center situated immediately to the east of the Mall, and currently owned by the Principals, which will be bridged into the Mall and become part of the main “Campus”.

Brad Smidt, Senior Vice President of the Greater Phoenix Economic Council said, “This will be an exciting adaptive reuse development and of great interest to corporate users looking to locate in Greater Phoenix.  We look forward to working with the Owners and the City of Mesa on this development”.  The “Campus” will showplace an innovative facility for those who desire a state-of-the-art environment to commingle with their peers.  The “Campus” will be a vibrant community within itself, day and night, with all the amenities one would ever need.  The primary focus will be on health and education with numerous areas designed for medical learning centers and colleges specializing in business, economics, engineering, global communications, law, nursing and liberal arts.

It is anticipated the “Campus” may build specially designed housing and provide eating and entertainment venues located in key areas.  These will also serve the offices, health club and a futuristic sanctuary that will cater to the entire community along with relaxing coffee, yogurt and specialty shops in internet-friendly gathering spaces and a German-style beer garden/sports venue for all to enjoy.

For additional information, contact Ray Cashen at 602-393-4447 or by email at raycashen@gmail.com.