What Next After Corridors for Adler?
The sale of the massive 1.4M SF Corridors office park is a tale of two owners—the buyer and seller—that offers a glimpse into the strategy of two big Phoneix players: Adler Realty Investments and Alter Group.
The seller, Alter Group, sold four of the buildings in more than 160k SF in the Corridors at the intersection of I-17 and Loop 101 in Deer Valley—for nearly $16M. The deal now allows Alter to redeploy its capital to the 187-acre Riverwalk project. “We saw an opportunity given the increasing absorption of the submarket,” says EnTrust Realty Advisors' Jim Clark, an affiliate of Alter. Jim sees more capital coming in from outside the Phoenix market, particularly from California and Canada. Specific to the Riverwalk project, Jim tells us Alter is marketing land for office build-to-suit projects.
 The buyer, Adler Realty Investments, picked up the complex after a months-long search for the right value-add play in Phoenix, says Adler's Chris Engel. It's especially attractive because it's an office market “where all the fish are not feeding,” even as it sees fundamentals improve. Even as Adler closed the purchase, the State of Arizona Child Protective Services leased the entirety of the 1925 W Pinnacle Peak Rd building. |
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GPS Goes the Way of Medicine
Colliers International's Sean Westfall, Fletcher Perry and Michael Dupuy are transforming a tech-centric HQ space into the HQ for a healthcare company. And also diminishing some of Phoenix's shadow space in the process. We learned that Arizona Priority Care just inked a big deal for 25k SF at Chandler Corporate Center. The healthcare group subleased the space with popular GPS maker Garmin International, pushing the 67,500 SF office building to 90% leased.
We spoke to Michael about the deal, who says APC plans to house its executive and admin office at Chandler Corporate Center (here). But he also adds that actual medical space is not far in coming here. As for MOBs, Michael says the leasing activity has been “somewhat stagnant” during the year. “I expect more of the same in 2015,” he says.
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Click Here To
Figure Out Crowdfunding
It's not Halloween, but we're ready to give something away for free. (Costume optional.) We're no Spielberg or Weinstein, but Bisnow has produced a 30-minute video that helps explain the appeal of crowdfunding to investors for real estate development. (Think many small investments rather than hunting for that big fish.) We think it's a fascinating topic and suspect you'll agree by the end of this interview with Fundrise head Ben Miller. Enjoy! |
Del Frisco's Challenges
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Del Frisco's Restaurant Group reports that its Phoenix location was still experiencing “ongoing sales challenges” as of Q3, CEO Mark Mednansky (here with DC's Double Eagle Steak House GM Ann Thibert), told investors this past week. Del Frisco's Grille opened at Camelback Esplanade in 2012. Since then, Camelback has seen a surge in high-end restaurant growth. |
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Despite these challenges, Mark says the firm is poised to open “six to eight restaurants” across the country, including in Cherry Creek, Colo; Plano, Texas; and Little Rock. “The affluent customer is confident, healthy and clearly seeking out our next generation dining experience. The majority of Grille restaurants open to exceptionally strong sales, above what we have initially modeled,” Mark states. |
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8 Days Until the Top Under 40 Developers / Investors
Meet in Miami
The top developers and investors under the age of 40 descend on the Ritz Carlton in South Beach for Bisnow's first annual "Ascent" multi-day summit. See who's attending and apply to be considered for one of the few remaining spots here. |
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