Bellago Homes Purchases 2 Acre Site
in Phoenix's Newest and Hottest Real Estate Niche: Infill Multi-Family Development
Phoenix, Arizona (November 3, 2014) – Bellago Homes, a Mesa–based developer with three, one-of-a-kind single family home neighborhoods in Phoenix, has entered the hotly contested infill, multi-family development arena with its newest acquisition.
Bellago Homes dba Funk Family Enterprises, LLC purchased a two acre site on 48th Street about a quarter mile south of McDowell Road. The site, which is surrounded by over 20 multi-family projects up and down 48th Street including the 368 unit Class A Courtney Village Apartments and the 44 unit Papago Point Townhomes, is the last undeveloped parcel on 48th Street in this neighborhood making it a true infill site.
The land was acquired in 2006 by Sandstone Residential, LLC and was subsequently rezoned in 2007 to the R-3A (Multiple Family Residence District) designation. It was planned as a 34 unit town home development called Sandstone.
The site had been on the market for quite some time before PRAEDIUM Advisors, Inc. (Victor Allison | Designated Broker) was given the marketing assignment by Sandstone. PRAEDIUM Advisors has been working the infill, multi-family development niche for over a year and has accumulated a stable of hundreds of small developers to whom a site like Sandstone would appeal. Allison had only been marketing the property for a few days before he received his first offer. Although that deal did not come together, it was only a few weeks before Allison brought Bellago to the table.
Sandstone was motivated to get this property off their books and Bellago recognized a great opportunity. According to Allison this was one of the quickest deals he’s put together as both parties were easy to work with and performed according to the contract.
Bellago closed on the site for $280,000 one month after its 30 day due diligence period. Bellago was not represented by a real estate broker.
Private Canadian Equity Investment Firm
Forms Joint Venture with Arcadia del Sol Owner
PHOENIX, AZ - When the owner of Arcadia del Sol apartments was noticed for foreclosure, he elected to try to get his CMBS loan modified. As is typical with loan modifications, the lender required a substantial cash infusion to modify the loan. Unable to fund the cash requirement himself, the owner met with PRAEDIUM Advisors.
Knowing the value and quality of the buildings and location of Arcadia del Sol, Victor knew exactly who to call. He made just one phone call. Upon hearing of this opportunity, the principal of the equity investment firm told Victor "I'd be very interested in seeing more properties with the same metrics." In addition to meeting the funding requirement for the loan modification, the equity investor also funded capital expenditures to upgrade the property.
Both parties are very happy with their joint venture relationship: the owner's equity and property were saved from foreclosure and the investor is getting a great return and has an equity position on an appreciating asset that is worth substantially more than the debt on the property.
SMAC Holdings Acquires Belaflora Condos in Phoenix
PHOENIX, AZ - Surrey, British Columbia based apartment owner, manager, and real estate developer Lakewood, through an affiliate, SMAC Holdings, Inc. has purchased 42 units in the Belaflora Condominium property at 5302 E. Van Buren Ave in Phoenix, AZ for $1,750,000. The sale was an all cash transaction.
Lakewood purchased Belaflora from MKA Real Estate Opportunity Fund of Newport Beach, CA which had recently foreclosed on the property. The Buyer was represented by PRAEDIUM Advisors. The seller represented itself.
Lakewood has an existing footprint in the market, it also owns and operates the Sage Condominiums in Mesa, AZ.
Wayne Gervan of SMAC said "PRAEDIUM Advisors quickly sourced several prospective Multi-family opportunities in the Phoenix metro area for us and we look forward to working with them on additional acquisitions".
Dominium Acquires 213 Units in Phoenix AZ
Dominium Development & Acquisition, LLC Acquires Terrace Park Apartments in Phoenix, AZ through PRAEDIUM Advisors
PHOENIX, AZ - Minneapolis based apartment owner, manager, and developer has purchased the 213 unit Terrace Park Apartments at 8130 W. Indian School Road in Phoenix, AZ for $5,775,000.
Dominium purchased Terrace Park Apartments from Blue Valley Apartments of West Palm Beach, Florida which had recently foreclosed on the property. Dominium's all cash offer was selected from amongst a field of prospective buyers by Blue Valley. Dominium had recently closed on another Blue Valley multi-family complex in Georgia so buyer and seller were already comfortable working with each other.
In addition to the $27,113 per unit purchase price, Dominium intends to invest significant additional capital to renovate and upgrade the property and hold the property in its portfolio.
Dominium was represented by Victor Allison and Joe Holeva of PRAEDIUM Advisors. The seller was represented by Mark Forrester, Ric Holway, and Chuck LaBenz of Hendricks & Partners.
"Although Dominium has been in the multi-family business for over 40 years, we're new to Arizona", said Mark Sween, vice president and acquisition manager for Dominium. "PRAEDIUM Advisors had a laser-focus on our acquisition criteria and quickly found us several prospective properties. We ultimately settled on Terrace Park because it was exactly in the bulls-eye of the type of property we like to buy. We'll continue to work with PRAEDIUM Advisors on additional acquisitions".
Dominium's current portfolio boasts in excess of 6,000 units developed, 9,000 units acquired, and 4,000 fee managed units for a total of over 19,000 apartments owned and managed nationwide. Privately held Dominium is actively seeking additional opportunities in Arizona
Great Hearts Veritas Preparatory Academy
buys former Motorola site
by Jan Buchholz
Motorola Inc.’s former regional headquarters in the Arcadia neighborhood soon will become a charter school. The nonprofit Great Hearts Academy paid nearly $6 million for the 142,000-square-foot building and surrounding land
at 3102 N. 56th St.
Colliers International in Phoenix represented the buyer. PRAEDIUM Advisors in Phoenix represented the seller, 2102 N56 LLC, in Scottsdale. Motorola vacated the property more than a decade ago.
Local developer Richard Zacher, principal for Zacher Development Co., had acquired the property in 2005. He planned to demolish the building and construct single-family homes in a gated community on the site. Zacher was unable to obtain financing for the project before the housing crisis hit. According to trade publication Business Real Estate Weekly, the property was acquired by Inca Capital in Scottsdale through a note purchase and subsequent deed in lieu of foreclosure action. That process occurred in late 2007 and early 2008.
Improvements on the site have started, according to Todd Noel, senior vice president with Colliers.
Great Hearts Academy plans to have its Archway Classical Academy open for the 2011-12 school year. Archway serves students in kindergarten through 5th grade. The Veritas Preparatory Academy, grades 6 through 12, will move in the following year.
Great Hearts headquarters, which also will move to the old Motorola site, currently is located at 2131 E. Lincoln Drive in Phoenix. It will have a network of 12 schools located across the Valley as the 2011-12 school year begins
International Automotive Components
PRAEDIUM Advisors represented a Montreal based private investment group in their acquisition of a 125,000 s.f. manufacturing facility in Troy, NC. Situated on over 18 acres this absolute NNN leased brick building had over 12 years left on its initial lease term at the time of acquisition. With annual CPI rental increases PRAEDIUM's client was able to buy this building for less that $10 psf and achieve over an 8 CAP rate of return! Victor Allison says: "When I saw this opportunity cross my desk I knew exactly who to call. They wrote a LOI right away and the deal was closed in about 60 days."
Wilmot Professional Plaza
PRAEDIUM Advisors represented 1031 exchange buyer Western America Equities, LLC in its $10,140,000 acquisition of Wilmot Professional Plaza from Wilmot Professional Plaza Partners, LLC. Initially developed as a retail center, Wilmot Professional Plaza was redeveloped into a medical plaza between 2000 and 2002. The two 21,000 square foot buildings are conveniently located to Tucson’s three primary eastside hospitals: Tuscon Medical Center, El Dorado Hospital, and St. Joseph’s Hospital which helped to make it attractive to the buyer.