SCOTTSDALE, AZ-Sunbelt Holdings has acquired most of SunCor Development Co.’s commercial real estate properties for an undisclosed amount. The company, which is a subsidiary of Pinnacle West Capital Corp., is liquidating and will eventually dissolve.
The properties include: commercial land at Hayden Ferry Lakeside in Tempe; commercial and industrial land at Palm Valley in Goodyear, Avondale and Litchfield Park, AZ; and two 18-hole golf courses in Arizona. In total,
Scottsdale-based Sunbelt Holdings is a real estate management, investment and development company. It focuses primarily on residential land development, although it has been involved in commercial projects, according to President John Graham. He tells GlobeSt. the SunCor made the acquisition on an all-cash basis by partnering with Rockpoint Finance, a Dallas-based private equity firm.
Graham approached SunCor directly about acquiring the portfolio after he heard the company was liquidating. SunCor, whose liquidation was advised by Barclay’s, decided to sell the assets as a portfolio instead of one-off transactions.
“They might have made more money selling asset by asset, but it would take more time, and during that time, the company would have to pay debt service and ongoing operations,” Graham says. “A portfolio sale was easier and more efficient for SunCor.”
Graham says the SunCor assets expand his firm’s portfolio by as much as 30%. Hayden Ferry Lakeside is a 43-acre mixed-use project on the south shore of Tempe Town Lake in downtown Tempe, AZ. At completion, the mixed-use project will include: more than five million square feet of class A office and retail space, a full-service hotel and luxury residential condominiums.
Palm Valley 303 is a 1,600-acre master-planned business park strategically located just north of the interchange of Interstate 10 and Loop 303. Situated within the 9,000-acre Palm Valley master plan, the project will eventually comprise more than 60 buildings totaling 19.6 million square feet of office, retail, warehouse and industrial space. Currently, it includes a 440,000-square-foot industrial building, a 2,500-space parking garage, an office/retail building and office condominiums.
The two golf courses are Sanctuary Golf Course in Scottsdale and SunRidge Canyon Golf Course in Fountain Hills, AZ. Located on the western slope of Scottsdale's McDowell Mountains and adjacent to the nationally recognized Westworld equestrian center, Sanctuary Golf Course was designed by acclaimed golf course architect Randy Heckenkemper. It is the first golf course in Arizona and the 17th course in the world to attain the coveted Audubon Signature Status.
SunRidge Canyon is a 6,823-yard, par-71 course designed by Keith Foster. It is hidden among the ridges and canyons of the foothills of the McDowell Mountains.
Graham says the Sunbelt Holdings will likely hold the SunCor assets for now. The long-term plan is to sell off pieces of land to commercial developers.
“Since the residential market started to crater four years ago, we have been in a hold period,” Graham says. “This acquisition signals that we are buying again and can buy both residential and commercial.”
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