Commercial Real Estate Firm Leases Former Morton’s Steakhouse Space

PHOENIX, ARIZ.– Transwestern Commercial Services (TCS) today announces it has leased 9,000-square-feet at the former Morton’s The Steakhouse space at the Esplanade, 2501 E. Camelback Road, Suite 1 in Phoenix, to accommodate its continued growth with top industry talent.

The space faces the Camby Hotel and is adjacent to Starbucks and WeWork’s first coworking location in Phoenix. The space has 18-foot ceilings and 15-foot retractable glass windows that open to an outdoor patio that TCS plans to use to engage with the local real estate community through broker events, meetings, networking and social opportunities. The location, ground-level access, pedestrian experience and street visibility were key factors in TCS’ decision.

Managing Director Mark Stratz, who took over as Phoenix City Leader in January 2018, has emphasized the engaging and collaborative nature of the new office.

“Transwestern wants to emphasize the human element of commercial real estate and provide an environment that encourages connections and meaningful relationships between our team members, their clients and the larger community,” Stratz said. “Our new office will provide the physical space for our team members to develop creative real estate solutions and drive value for clients.”

Layton Construction is renovating the former restaurant into an open concept office space with multiple collaboration areas. Gensler is designing a clean and simple aesthetic with classic materials. Currently located in an office building at the Esplanade, TCS is expected to move into the new space this summer.

The firm has been expanding its roster of experienced brokers, including renowned Arizona real estate executive Jim Fijan. With more than 35 years of experience, Fijan has completed 120 million square feet of transactions with a total consideration of approximately $14 billion, obtaining record pricing in every Phoenix submarket.

“In the few months I’ve been at Transwestern, it has been clear the culture is different from other Arizona real estate firms,” Fijan said. “Our new space is key to fostering a collaborative environment and encouraging brokers to be entrepreneurial.”

TCS has also hired Justin Himelstein as Senior Vice President to lead the firm’s Occupier Solutions group in Phoenix. With 15 years of industry experience, Himelstein has been involved with more than 700 transactions for a total consideration exceeding $1 billion.

“Transwestern is actively pursuing the best talent in the industry. We are intentional in selecting individuals who will add to our growth and fit with our cultural. The future is bright at Transwestern and our new space reflects that,” Stratz said.

Two recent Tucson apartment communities sold with an aggregate of 421-units for $13.34 million, each located at distant ends of the City of Tucson.

Wilmot Vista Apartments at 3225 S Wilmot Road in Tucson sold for $5.5 million ($28,000 per unit) in an REO value-add asset sale. Located near Davis Monthan Air Force Base at Wilmot and Golf Links Road, the property was built in two phases in 1987 and 1987 in ten buildings on 6.51 acres.

The unit mix comprises 116 one-bedroom units, 80 two-bedroom units and one three-bedroom unit, the 110,790-square-foot property was 92% occupied at time of sale. Community features include two swimming pools and two heated spas, two well–located laundry facilities, a separate leasing office, business center and a sports court. Recent community improvements include exterior painting, upgraded landscaping, remodeled leasing office, laundry room upgrades, and in May 2015 a new slurry coat applied to the entire parking lot.

Jack Hannum and Derek Iannelli with Transwestern in Phoenix represented the seller, Blue Valley Apartments, an affiliate of Ocwen Loan Servicing in West Palm Beach, FL. Hannum said, “The complex had been well maintained while lender owned and was approaching stabilization when it sold.”

7O7 Property Management of Las Vegas and Scottsdale had managed the property for seller and are being retained for management services by the new owner, Colorado-based Oaks at Edgemont, LLP (William Doogan, general partner).

Hannum can be reached at 602.386.1181 and Iannelli should be contacted at 602.386.1183.

For more information see RED Comp #3330.

In a second transaction in central Tucson, Sedona Point Apartments sold to Scottsdale-based Sedona Pointe LLC (Matthew Okmin, manager) for $7.84 million ($35,000 per unit) in what was also a value-add sale.

The 224-unit Sedona Pointe Apartments was built in 1978 as a garden-style community on Oracle northwest of Grant Road. The 123,268-square-feet in five buildings consists of one- and two bedroom units situated on 6.5 acres. Community amenities include a clubhouse, BBQ areas, carports, two laundry facilities, a pool, two spas, and a fitness center.

Cindy Cooke, Senior Executive Vice President, and Brad Cooke, Senior Vice President, with Colliers International in Phoenix handled the transaction for seller, San Diego-based, Paragon Sienna, LLC an affiliate of Paragon Management Company.

Cindy Cooke can be reached at 602.222.5039 and Brad Cooke is at 602.222.5088.

To learn more see RED Comp #3245.

SCOTTSDALE, AZ. –– Equus Capital Partners, Ltd. (Equus), one of the nation’s leading private equity real estate fund managers, announced the sale of Lincoln Towne Centre, a two building property totaling 226,112-square-feet located at 4150-4250 N Drinkwater Boulevard in downtown Scottsdale, Arizona. Acquired by Transwestern Strategic Partners on behalf of its TSP Value and Income Fund for $58,850,000 ($260 PSF). Transwestern Strategic Partners is the discretionary investment management arm of Transwestern Investment Group based in Dallas, TX.

Situated at the intersection of Drinkwater Boulevard and Indian School Road, Lincoln Towne Center provides easy access to the Loop 101 and is directly across from the Scottsdale City Hall. It is also in close proximity to the nearly two million square foot Scottsdale Fashion Square, the Scottsdale Waterfront development and the W Hotel, providing a 24/7 environment within walking distance to numerous retail amenities, restaurants, hotels and condo and apartment homes. The property also features a rare, four-level subterranean parking structure allowing for a parking ratio of 4.1 spaces per 1,000 square feet. Nearly half of the property is occupied by investment grade tenants including CNA (S&P: A), Catlin (S&P: A) and EMC2 (S&P: A).

Chris Toci, Chad Littell, Jerry Noble, Pat Devine and Greg Mayer of Cushman & Wakefield of Arizona represented the seller in the disposition.

The acquisition of Lincoln Towne Centre in February 2012 was the first asset acquired by Equus Capital Partners on behalf of its value-add fund, BPG Investment Partnership IX, L.P. “Lincoln Towne Centre was a classic value-add office investment for our firm”, said Jonathan Praw, Vice President and Head of West Coast Operations for Equus Capital Partners, Ltd. while adding “When we acquired the complex it was just 67% leased while the submarket vacancy rate was in the mid-20% range. We were able to quickly improve occupancy to 99% at the time of sale and benefited from the 30% increase in Downtown Scottsdale rental rates.” Mr. Praw oversaw the acquisition, reposition, and disposition efforts.

To learn more Toci, Littell, Noble, Devine and Mayer can be contacted at the Cushman & Wakefield office at 602.253.7900.