PHOENIX—In this edition of Deal-Tracker, a 94,885-square-foot South Phoenix distribution building at 2021 E. Jones Ave. sold for $5.1 million or $54.01 per square foot. The seller also negotiated a sale/leaseback term to occupy the facility for 16 months. Matt McDougall, principal with Lee & Associates represented the buyer, Cohen Asset Management of Los Angeles and Andy Cloud with DTZ represented the seller, Michael Lewis Company of McCook, IL.
“This transaction helped the buyer satisfy a trade requirement as well as acquire a highly-specialized distribution building located in the in-demand Sky Harbor Airport submarket,” says McDougall. The facility started as a 40,000-square-foot building but has added nearly 55,000 square feet in the late 1990s. It includes 30,000 square feet of freezer/cooler space, 3,000 square feet of office, 2 grade level doors, 20 truckwells and clear height ranges of 28-32 feet. It is located just south and west of Phoenix Sky Harbor International Airport and close to the Maricopa Freeway (Interstate 10).
PHOENIX—Capital One has provided a $6.8 million adjustable-rate Freddie Mac loan to refinance Deer Valley Regency, a 96-unit apartment community in Phoenix. Kristen Croxton and Greg Reed, senior vice presidents in Capital One Multifamily's office in Newport Beach, California, originated the transaction.
The borrower, Windsor Louie, acquired Deer Valley Regency in 2008. “After discussing his investment goals, we proposed a Freddie Mac third-party capped ARM,” Reed says. “This allowed us to provide a cash-neutral transaction, while maximizing cash flow from the property.” The seven-year loan is structured with two years of interest-only payments. The start rate was in the mid-2 percent range and is capped in the mid-5 percent.
“This transaction was my introduction to Capital One,” Louie says. “I was impressed by their creativity in crafting a transaction that reflected my priorities.”
Built in 2004, Deer Valley Regency is maintained in top physical condition, and is located near major employers like American Express, Honeywell, and Discover Card. It offers residents amenities that include covered parking, a pool and hot tub, a clubhouse, and a fitness center. The units feature patios or balconies, washer/dryers, and walk-in closets.
“We were pleased to provide this loan,” Croxton says. “It combines a great asset in a growing market with strong ownership and operations.”
PHOENIX—DTZ announces the sale of the Longust Distribution Center, 2432 W. Birchwood Ave. in Mesa. Industrial Property Trust Inc. of Denver purchased the 81,436-square-foot property from 2432 Birchwood Associates, LLC, an affiliate of EverWest Real Estate Partners, for $6.5 million.
The institutional-quality warehouse/distribution building is fully occupied by Longust Distributing, which has been in the space since it was built in 2000. Located on 4.62 acres, the property includes approximately 67,188 square feet of warehouse area and approximately 14,248 square feet of office space. Since 1974, Longust Distributing, Inc. has been a major wholesale flooring distributor servicing the Southwestern United States.
DTZ's Will Strong, Andy Markham and Mike Haenel represented both the buyer and seller.
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