Wood Partners, PREI Close on M-F Project Site; NewQuest Epic’s Big Buy Includes Phoenix Asset
- Aug 29, 2014
A joint venture of Wood Partners and Prudential Real Estate Investors has closed on a downtown Chandler site in the South Arizona Avenue Corridor where the partners plan to build a 301-unit apartment project, Business Real Estate Weekly of Arizona reported.
The joint venture, PR III/Wood Chandler Apartments L.L.C., will develop the asset on the former site of the CMC Steel plant, which closed in 2009.
Dubbed Alta Steelyard Lofts, the property will be located on about six acres at the southeast corner of Washington Street and Frye Road. The South Arizona Avenue Corridor Study deemed the location deemed suitable for high-density residential development.
Biltform Architecture is the project’s designer, and the contractor is WP West Builders Arizona L.L.C., an affiliate of Wood Partners. Tony Lydon and Marc Hertzberg of JLL’s Phoenix office arranged the transaction.
A linchpin of the deal was the 25-year Government Property Lease Excise Tax rate obtained by Wood Partners. Under the terms of the GPLET rate, the property is valued at $0.76 per square foot, the standard rate for high-density residential projects and considerably lower than the property’s market value.
In retail investment news, NewQuest Epic Investments L.L.C. acquired Village Center, a 171,129-square-foot community center located at 4304-4326 E. Cactus Road, BREW reported. According to NewQuest Epic’s website, the property is one of nine acquired from Phillips Edison as part of a six-state, 1.35 million-square-foot portfolio.
Village Center is anchored by Target and Dollar Store and, according to BREW, was 98 percent leased at the time of the sale. Among its neighbors is Paradise Valley Mall, a 1 million-square-foot regional mall owned by Macerich.