An 88,696-square-foot, class A office building in north Phoenix recently sold for $22.1 million, CBRE Group Inc. announced.
The building, dubbed North Loop 101 Building D, at 19820 N 7th Ave. sold to Idaho-based Stafford Holdings on Sept 10. Blake Hupfer of Premiere Property Group, LLC represented the buyer.
The seller, Los Angeles-based Regent Properties, was represented by CBRE’s Barry Gabel, Chris Marchildon and Will Mast.
The 2-story building in the North Loop 101 business park in Phoenix’s Deer Valley submarket is 100% leased to two tenants, with 95% of the property serving as the corporate headquarters for energy construction company Centuri Construction Group Inc., a subsidiary of Southwest Gas. The remainder is occupied by Pacific Western Bank.
“We continue to see very strong demand from investors looking for properties that have long-term, creditworthy tenancy in well-located, infill locations,” Mast said in a statement. “North Loop 101 checked all of the boxes for the buyer and will continue to provide reliable cashflow for years to come.”
“We continue to see new investors earmark Phoenix as their top destination for office investment, and we expect this trend to continue for the foreseeable future,” he added.
Riverside apartment sale
In Tempe, Institutional Property Advisors, a division of Marcus & Millichap (NYSE: MMI) negotiated the $46 million sale of Riverside, a 164-unit apartment community in Tempe.
Steve Gebing and Cliff David, who both serve as executive managing directors for IPA, represented the seller, Knightvest Capital, and procured the buyer, SAM Residential Group.
Built in 1985 on five acres near Tempe Town Lake, Riverside offers a mix of studio, one- and two-bedroom apartments that average 716 square feet.
Surgery center sells
In Chandler, Sonoran Desert Surgery Center, at 895 S. Dobson Road, has been sold to a Palo Alto, California-based private investor, according to an announcement from Colliers International.
The buyer, an entity tracing to Nadine Matityahu, paid $5.4 million for the property on Aug. 19, according to real estate database Vizzda.
The seller was 895 S Dobson Holdings, LLC, an investment group led by Keith Ricker of Scottsdale. Mindy Korth, of Colliers handled the sale transaction.
The property, which is 100% leased, serves as the only off-campus outpatient surgery center for general surgery in the vicinity of Chandler Regional Medical Center.
The ambulatory surgery center and medical clinic are 10,762 square feet, including two operating rooms and clinical space. The building was originally developed in 2008 by a plastic surgeon; it has since been configured as a surgery center and medical clinic facility.
“This property, which has been a successful surgical center since its construction in 2008, offers a great investment opportunity,” Korth said in a statement. “The building is fully leased at below-market rates, which provides the buyer a noteworthy opportunity for growth potential in operating income. The property’s location and configuration position this as an outstanding investment for years to come.”
Sonoran Desert Surgery Center was purchased in a 1031 exchange. This marks the second medical facility in the Valley purchased by this investor in 2021.
South Mountain Community College expansion
In south Phoenix, construction has started on a $13.6 million Science Complex project at South Mountain Community College, which includes the addition of a new 19,000-square-foot Physical and Life Science building, according to an announcement from the general contractor, McCarthy Building Companies.
The project, at 7050 S. 24th St. in Phoenix, involves a 32,000-square-foot expansion and renovation to the campus’ existing Life Science and Physical Science buildings. That includes the renovation of approximately 13,400 square feet of existing space.
According to McCarthy Building Companies, the project will feature a variety of new and updated science laboratories, lab support space, a cadaver lab, faculty offices and informal learning spaces. The campus also currently houses a botanical garden that will be relocated to the entrance of the new Science Complex. As part of the renovation, the current walkway between the existing Physical Science and Life Science buildings will be enclosed..
“This project represents the culmination of years of planning by the leadership team at South Mountain Community College with a goal of making the college a destination for those who are passionate about science,” Bryan Kuster, senior vice president of McCarthy Building Companies’ Southwest Region Education Building Group said in a statement. “Our laboratory construction team is working with our project partners to build a modern teaching facility that will deliver an on-time and on-budget project with minimal disruption to campus operations throughout the course of the project.”
The project is scheduled for completion in June 2022 in time for the fall 2022 semester. Gensler is the design architect on the project. Major subcontractors include Urban Energy Solutions Inc., S&H Steel, Wholesale Floors, SKF Tile & Stone, Gothic Landscape, Marks Valley Grading and Kinkaid Civil Construction.
Below are notable real estate transactions or deals brought to the attention of the Phoenix Business Journal over the last two weeks.
• Arizona Land Ventures, a land investment and development firm that’s owned by co-founders Jennifer Verma and Seema Patel, closed on the company’s first land sale in Surprise in August for $1.65 million.
The site is located on Litchfield Road and Peoria Avenue in Surprise and has already garnered interest from various commercial end-users, the company said.
Phoenix-based Arizona Land Ventures partnered with Verma’s sister, Anita Verma-Lallian, on its first syndication through Arizona Land Consulting.
According to real estate database Vizzda, Surprise AZ Holdings LLC acquired the 15 acres for $3.3 million from Arizona Land Consulting.
Arizona Land Ventures said they may hold the land and then sell it or partner with developer end users to sell individual pads. Off market, Verma said they’ve had interest from a gas station, car wash and a restaurant to buy individual pads.
The site is near the Skyway Business Park and industrial area in Surprise nearby Amazon’s recently completed delivery station.
“Much of the surrounding area is established residential area and there’s high demand for commercial uses,” Verma said.
Patel said land is rapidly selling in the area.
“Within the next six to 12 months, we foresee it becoming increasingly difficult to find land that consists of pre-existing infrastructure. The immediate and most logical step is to secure land that offers development opportunities,” said Patel in a statement.
• Mangat Investment LLC, which is affiliated with the Mangat Group, on Sept. 2 purchased about 18 acres from LAVM Holdings LLC on the southwest corner of Loop 101 and Glendale Avenue.
Mangat Investment LLC purchased the industrial site in Glendale for $4.5 million, according to real estate database Vizzda.
Tony Mangat, who is the founder of Mangat Group and had invested about $35 million in land purchases in the first part of the year, said they can flip the land or build on it.
“We are open to anything we can develop, whether we have an end user like for a commercial, industrial building, or we’re ready to sell,” he said.
• Buck Mason, a Los Angeles-based clothing brand, has opened its first Arizona location at the Scottsdale Fashion Square shopping complex. The store sells men’s and women’s apparel, including “their million-selling Los Angeles-made T-shirts,” sweats, leather jackets and Japanese denim jeans.
“A lot of our online customers are based in the Phoenix and Scottsdale areas, so when an opportunity to open an AZ shop arised, we knew we had to seize it,” Buck Mason co-founder Erik Allen Ford said in a statement.
Fashion Square customers can also shop from a selection of vinyl records, books and local tequila.
• Christian Brothers Automotive plans to open a new location in Goodyear. Owner Mike Hassenger expects to open the new store, his second, in November at 16800 W. Yuma Road in the Canyon Trails Towne Center, the company said.
“We are incredibly excited to open our second Christian Brothers Automotive shop in Goodyear,” Hassenger said in a statement. “Through our Litchfield Park location, we have been able to do a great amount of work supporting special needs families in the community, and we are eager to extend our support to even more families in West Valley. We are proud to continue serving our neighbors as a locally owned business where guests can find honest, trustworthy and reputable services for all types of automotive care, and that also gives back to the community.”
Prior to opening his Christian Brothers Automotive locations, Hassenger served as a United States Naval Officer and a business professional with more than 15 years of supply chain experience.
• Growers House, a supplier of hydroponic supplies, has opened a new warehouse and retail store in Phoenix. The location at 3403 N. 35th Ave. includes a warehouse and retail store offers grow tents, hydroponic kits, irrigation systems, LED lights, nutrients, soil and an extensive selection of equipment and supplies.
Headquartered in Tucson, Growers House was established in 2011 by father-and-son team, Paul and Nate Lipton, who have since grown the company into what they say is one of the largest e-commerce hydroponics and indoor gardening suppliers focused on cannabis cultivation in the U.S.
“Now that Arizonans over 21 can legally cultivate six plants in their home, there is a lack of stores in the Phoenix area to educate and provide products to new cannabis gardeners. There’s nothing more satisfying than enjoying the fruits of your labor, so-to-speak, plus it’s a really fun and relaxing hobby,” Nate Lipton said in a statement.
The Phoenix location of Grower’s House is open Monday-Friday from 9 a.m. to 5 p.m. and on Saturday from 9 a.m. to 2 p.m.
• Athletico Physical Therapy has opened a new location in the Bell and 3rd Plaza at 320 W. Bell Road, Suite 130, in Phoenix.
The Oak Brook, Illinois-based provider of orthopedic rehabilitation services employs more than 5,000 employees at 550 locations in 13 states.
This location doesn’t require a referral or prescription to begin treatment, and accepts all major insurance plans.
In addition to providing free assessments, treatment for work injuries and home therapy, Athletico also offers treatments for patients recovering from Covid-19.
• Paradise Valley Multi-Specialty Surgery Center has opened its doors at 7125 E. Lincoln Drive, across from The Ritz-Carlton in Paradise Valley.
The private, physician-owned surgery center is the first of its kind in the Paradise Valley and Scottsdale areas, offering a high-end resort-like environment for physicians to operate in.
Drs. Anthony A. Admire, Michael D. Dersam, William Nordlie, and Esteban Magaña teamed up to build the surgical center with the goal of providing physicians and patients a luxurious atmosphere. Patients have the option to stay overnight, with luxurious amenities, including gourmet food and patient-focused staff.
The facility also features oversized operating rooms, the latest in high-tech equipment and a nearly paperless electronic medical records and registration system, said Admire, co-founder of the new surgery center.
The center has the capability to handle 40 to 60 cases each day in multiple specialties, including plastic surgery, general surgery, orthopedic surgery, spine, gynecology, ear/nose/throat, urology, gastrointestinal and pain treatments.