More than 450,000 square feet of Arizona office buildings are now under new ownership.
A consortium led by Thomas Rizk and Roger Thomas, the founders of Workspace Property Trust, have scooped up more than 50 office buildings across several markets in a more than $1 billion deal.
The Boca Raton, Florida-based commercial real estate company announced earlier this week that it closed on three office buildings in Arizona. El Segundo, California-based Griffin Realty Trust sold 53 office buildings across 41 locations in 14 metro regions to Workspace Property Trust, which totals about 8 million square feet, for $1.13 billion.
The three Arizona properties that traded hands include:
In an unrelated deal, the Gilbert DoubleTree has been acquired by a San Diego firm.
Pacific Orchid Holdings purchased the 121-room hotel for $27.25 million. At more than $212,000 per room, that is a record sale in southeast Phoenix, according to commercial real estate brokerage Colliers International.
“The sellers built the DoubleTree in 2009 and it was always a very successful asset for them,” said Mike Montoya, associate vice president with Colliers in Arizona, in a statement. “They received a great offer that allowed them to shift focus to their upcoming developments.”
Montoya, Jon Grantham and James Meng with Colliers in Arizona handled the sale transaction. Power Hotel Group of Mesa was the seller of the hotel, which is located at 1800 S. San Tan Village Parkway.
This is Pacific Orchid Holdings’ first acquisition in the Grand Canyon State, according to Colliers.
Scottsdale-based HARRI5 Manufactured Housing & Commercial Brokerage negotiated the sale of a mobile home park and RV resort for a combined total of $115 million.
The William Corrigan family paid $80 million for the 1,230-space Sun Vista Resort in Yuma and turned around and sold the 180-space Pueblo Manor in Apache Junction for $35 million.
Derek Harris, founder of HARRI5, represented both seller and buyer in both transactions.
Institutional investors remain bullish on manufactured housing and RV resort communities, Harris said.
Both products maintained strong rent collections during the coronavirus pandemic, which amplified strong and stable income from these assets, he said.
“Investors recognized these stable assets and allocated additional capital to the space,” Harris said. “With the limited inventory, additional capital and competition, the value of these communities remains strong.”
Manufactured housing will continue to supply affordable housing to lower-income seniors and families, he said.
“The institutional investors are sensitive to the seniors and families living within their communities, and don’t typically raise rents aggressively,” he said.
Keith Vanderhout, founder of Scottsdale-based Silver King Cos. who bought Pueblo Manor from the Corrigan family, started out as a broker of these types of properties and ended up as an owner/operator.
Meanwhile, Sun Vista GP sold Sun Vista to the Corrigan family.
Sean Thayer, one of the general partners of the Sun Vista general partnership, said his father, Ron Thayer, also a general partner of Sun Vista GP, built Val Vista Village in Mesa in 1970.
“He and my mom were both instrumental in writing much of the manufactured housing regulations in Arizona and were the first to build upscale RV resorts in the East Valley,” he said. “To my family, it’s the end to an era of our involvement in the resort business in Arizona.”
In an unrelated deal, Berkadia has arranged $55.5 million of equity for two multifamily projects for Phoenix-based Moderne, which will build bring 358 units in Phoenix and Glendale.
Cody Kirkpatrick, Noam Franklin, and Chinmay Bhatt of Berkadia JV Equity & Structured Capital secured the joint venture equity partner, Atlanta-based BCDC, as well as the preferred equity provider, a Texas-based investment manager, who together contributed a total of $55.5 million to the two projects.
The preferred equity provider contributed $18.93 million in equity behind a $40.6 million senior loan by Pacific Western Bank for The Governor and another $18.1 million behind a $38.3 million loan from Pacific Western Bank.
Moderne started construction on the 176-unit The Governor at 1717 E. McDowell Road on Aug. 1, and will begin construction on the 182-unit Moderne Arrowhead, 15431 N. 67th Ave., Glendale, on Sept. 19.
Over in Chandler, San Diego-based MG Properties paid $107 million for the 2150 Arizona Ave South Apartments.
The seller was represented by Mark Forrester and Dan Cheyne with Berkadia. The acquisition of the community was financed with a loan from Fannie Mae, originated by Chuck Christensen and Lowell Takahashi with Berkadia.
Vizzda LLC records show Acacia Capital Corp. paid $32.9 million to an entity tracing to PEM Real Estate Group for the complex on Oct. 31, 2013. The apartments at 2150 S. Arizona Ave. were built in 2001 on 18.89 acres, according to Vizzda.
Over in the West Valley, about three acres of land recently sold for $700,000 in Glendale, according to Marcus & Millichap, which brokered the sale.
The property is located at the northwest corner of West Glendale Avenue and 77th Lane to the east of Loop 101 and the sports and entertainment district.
The owner of the site initially started a townhouse project on the property in the 1980s and has been looking for a buyer to complete the complex, Marcus & Millichap said.
“With all of the development activity in the immediate area of the property, we received significant buyer interest and an offer above list price,” said Art Rullo, an investment specialist for Marcus & Millichap.
Rullo, Michael Farrar and Ross Smith of Marcus & Millichap served as the brokers for the property owner. Real estate database Vizzda shows that Glencort Crossing LLC purchased the property from Glencourt Two Townhouse Association Inc. in August.
Sweet Creek Boutique plans to hold a grand opening for its family-owned business on Sept. 3 at 1542 W. Ocotillo Road in San Tan Valley from 9 a.m. to 2 p.m. San Tan Valley is a census-designated area south of Queen Creek in Pinal County.
The new location is San Tan Valley’s newest boutique, which supports more than 30 local small businesses with items such as home decor, baby items, jewelry, clothing, bath bombs, food and drink options.
“We’re thrilled to be able to offer a store of this caliber in an area where not much other shopping is available,” said Nicole Onwuasor, co-owner of Sweet Creek, in a statement. “Most importantly, we know the importance of supporting small business and shopping local, and to be able to offer that here is very rewarding. The response from the community since opening has been incredible.”
The grand opening event will feature vendors, a bounce house, snow cones and more with participation from businesses including Maritza’s Papusas and Americano Ammunition Coffee.
Editor’s note: The real estate deal wrap is published regularly by the Phoenix Business Journal. Send new real estate transactions and retail/restaurant leases to managing editor Erin Edgemon,
ee******@bi*********.com
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