Apartments to rise at old Hard Rock, Donald Trump site by Jan Buchholz December 29, 2010 The site where Donald Trump once hoped to build a luxury hotel and pricey condominiums instead will become an apartment community. Alliance Residential Co., through a legal entity dubbed VIF II/Broadstone on Camelback LLC, purchased the high-profile infill site at 26th Street and Camelback Road for $10.5 million. The sale closed last week. Phoenix-based Alliance would not discuss specific plans, but the company is in the apartment development and leasing business. Their properties around the country often are branded with the Broadstone moniker. Alliance Residential’s bid was the best of about 20 tendered by interests from across the country, according to Don Arones, executive vice president of Cassidy Turley/BRE Commercial in Phoenix. The wide-ranging interests included pure investors, who simply wanted to purchase and hold the property until local values improved; and developers, who sought to build hotel, retail or office projects. Arones and his team spearheaded the marketing of the 4.8-acre site, which once was home to the Hard Rock Cafe, Just for Feet and Blockbuster Video. They represented the lender, Hypo Real Estate Capital Group. The New York subsidiary of Germany’s Hypo Real Estate Bank AG took back the property after Trump’s partner, Bayrock Group, defaulted on a $36 million loan. Previously, Arones’ team selected another potential buyer, one of five that were considered finalists. “We were never technically under contract with them. They ended up having

entitlement issues that couldn’t be answered,” Arones said. Entitlement issues also were at the heart of the problems that sank Trump’s plans in 2004 and 2005. The Phoenix City Council would not approve the height and density Trump and Bayrock Group wanted. After Trump backed out, Bayrock tried to move forward with alternate plans, but the company eventually defaulted on the Hypo loan. In the meantime, the City Council approved entitlements for a maximum 75-foot height and 550,000 square feet of developable space, among other stipulations. Arones said Alliance can make an apartment community work within the strict regulations approved by the city. “Everything went fairly smoothly with Alliance because they are trying to stay within the existing envelope and deed restrictions,” he said. Alliance recently finished Level at Sixteenth, a contemporary apartment community at 1550 E. Campbell Ave. in Phoenix. “It is very cool, with all the bells and whistles,” said Brad Cooke, vice president of the Multi-Family Advisory Group at Colliers International Greater Phoenix. “It has good-quality work-manship — very impressive.” Cooke said he is not surprised an apartment developer won the bid for the former Hard Rock site. The demand for apartments around 24th and Camelback is strong and growing, he said, and credible apartment developers have access to capital. “There’s financing available for multifamily on A-plus sites,” he said. Read more: Apartments to rise at old Hard Rock, Donald Trump site | Phoenix Business Journal

Macy’s purchases Goodyear land to expand warehouse by Jan Buchholz December 29, 2010, 10:44am MST Macy’s is expanding its Internet sales fulfillment center by purchasing a 12-acre parcel next to its current warehouse in Goodyear. The land deal closed earlier this month with Macy’s (NYSE:M) paying $2.2 million for the parcel at Goodyear Crossing, a 250-acre industrial park at the northeast corner of Cotton Lane and State Route 85 in Goodyear. It was developed by Indianapolis-based Duke Realty. The Phoenix Business Journal was unable to reach representatives of Macy’s for comment. But Pat Feeney, senior vice president of CB Richard Ellis, who handled the deal, said he expects Macy’s to break ground quickly so the expansion can be up and running for the 2011 holiday season. Macy’s currently occupies about 603,000 square feet in one of the industrial park’s three buildings. Amazon.com recently expanded its distribution facility there, and now has about 900,000 square feet. Feeney said that by his calculations, Macy’s should be able to build at least 200,000 square feet of additional space. Feeney said activity has been brisk at the industrial park and other locations nearby. Companies are again seeing the benefits of quick access to Interstate 10 leading to Los Angeles and Interstate 8 leading to San Diego for distribution purposes. Trucks also can head south on SR 85 to Gila Bend and then go east to Tucson and El Paso, Texas, without having to navigate Phoenix traffic. Feeney closed a second deal Christmas Eve at the industrial park. National Oilwell Varco, a Houston-based supplier of mechanical components for

oil drilling rigs, paid just under $1 million for a 6.5-acre site northeast of Macy’sexisting structure. National Oilwell is ready to begin construction on a data center backup facility at the site, Feeney said. “They wanted a clean, upscale and safe industrial park,” he said. “Goodyear Crossing is new and has companies that operate multiple shifts.” Another large occupant is Suntech Power Holdings Co., which opened its solar panel assembly facility at Goodyear Crossing in October. Feeney credits the city of Goodyear for attracting strong users to the area. “Their economic development process is user-friendly,” Feeney said. “They go after (companies) hard and fast.” Goodyear Economic Development Manager Harry Paxton said one thing that helps solidify relationships with companies is the city’s willingness to expedite building permits for expansions and tenant improvements. “We can do it within fast time frames,” Paxton said. Feeley also said the increased maturity of the community has helped attract companies. Goodyear now boasts several power centers and builders selling homes with a wide range of prices, Feeney said. He also points to the renaissance of the nearby Wigwam Golf Resort & Spa for adding to the area’s appeal. Companies in Goodyear also are pleased with employee recruitment. “At their job fairs, they are amazed at the quality and quantity of applicants,” Feeney said. There’s still plenty of space available at Goodyear Crossing, which also offers easy access to the railroad. “There’s not too many of those in Phoenix now,” he said, referring to the rail access.

Paxton said overall transportation access, with improvements along I-10 and the development of the Loop 303 corridor, will continue to draw interest from across the country. “I was just out on a tour today with a company from the Midwest,” he said. Read more: Macy’s purchases Goodyear land to expand warehouse | Phoenix Business Journal

LaCurvata sells for $16.3M to Harvest LLC December 30, 2010 LaCurvata, a five-building office-showroom development in North Scottsdale, sold for $16.3 million to Harvest Development LLC of Oregon. The 177,200-square-foot complex was sold by Pima Holding Company I LLC, a collection of five banks led by National Bank of Kansas. The sales price per square foot was $92.50. Located at 18760 through 19120 N. Pima Road, LaCurvata was built in 2009 and was 27 percent leased at the time of sale. It is located across the street from DC Ranch. Cassidy Turley/BRE Commercial represented the seller in the transaction. Read more: LaCurvata sells for $16.3M to Harvest LLC | Phoenix Business Journal

Dysart Crossing sells for $1.3M December 28, 2010 Dysart Crossing, a Glendale retail center, sold for $1.3 million to S3 Enterprises LLC of Scottsdale. The 32,042-square-foot property at 6808 N. Dysart Road had been acquired through foreclosure in 2009 by Jefferson Pilot Investments in Greensboro, N.C. Jefferson Pilot sold it to S3 Enterprises. The center was built in 2004 and was 15 percent leased at the time of sale. CB Richard Ellis in Phoenix represented the seller. De Rito Partners Inc. in Phoenix represented the buyer. “Dysart Crossings drew interest from a number of buyers,” said Cam Stanton, CBRE broker in a news release. “Its price per square foot and profit potential from future leasing presented tremendous upside for value-oriented buyers looking for deals that would create good returns and increased cash flow and value over time.” Read more: Dysart Crossing sells for $1.3M | Phoenix Business Journal

Diamonte on Bell apartments sold for $19.6M A company formed by a Canadian firm Omni Group of Cos., paid $19.6 million for the Diamonte on Bell apartment community in northwest Phoenix. Omni, which is based in Vancouver purchased the property from the Royal Bank of Canada. The price per unit was $43,172. The 454-unit complex is located at 3202 W. Bell Road. This is the third multi-family purchase for the company this year, according to Cassidy Turley/BRE Commercial in Phoenix, which handled and announced the sale. Read more: Diamonte on Bell apartments sold for $19.6M | Phoenix Business Journal

DuPont Air Products expands with $13M lease by Jan Buchholz December 22, 2010 DuPont Air Products NanoMaterials LLC is based in Tempe with international operations including this lab in Taiwan. DuPont Air Products NanoMaterials LLC has leased the entire building at 8555 S. River Parkway at the Arizona State University Research Park in Tempe. The nine-year deal for 95,100 square feet of office/tech space has an estimated value of $13 million. DuPont Air Products NanoMaterials provides products to the high tech industry. “This is one of the most significant Phoenix area leases of the year, not only in terms of size but also what it represents for the region’s economy,” said Jim Achen, senior vice president at Transwestern in Phoenix. DuPont Air Products NanoMaterials has been based in Tempe, but the new lease represents an expansion. DuPont Air Products NanoMaterials is a 50/50 joint venture of DuPont and Air Products. It is unknown whether the company is hiring additional employees. The landlord is Lexington Realty Trust. Transwestern represented them. CB Richard Ellis in Phoenix represented the tenant. Read more: DuPont Air Products expands with $13M lease | Phoenix Business Journal

FIVE-BUILDING CLASS A OFFICE/SHOWROOM TRADES FOR $16.25 MILLION SCOTTSDALE, ARIZ. — Cassidy Turley BRE Commercial has negotiated the $16.25 million investment sale of the five-building, 177,173-square-foot La Curvata, a Class A office/showroom development located directly across the street from DC Ranch at 18760, 18850, 18940, 19030 and 19120 North Pima Rd. in Scottsdale. Built in 2009, though 73 percent in shell condition, and 27 percent leased at the time of sale, the property was acquired by OPM4 LLC, an Oregon-based company formed by Harvest Development LLC. Cassidy Turley’s Rick Danis, Eric Wichterman, Paul Boyle and Mike Coover negotiated the sales transaction on behalf of Pima Holding Co., which is owned by a collection of five participating banks led by National Bank of Kansas.

162,000-SF Industrial Building Sells in Phoenix Distribution Center Trades for $3.5 Mil. By Brett Wyatt December 21, 2010 GXI Outdoor Power, a distributor of heavy power equipment, purchased the 162,960-square-foot building at 2915 E. Washington St. in Phoenix. It will take occupancy of 112,200 square feet next March. The rest of the property is currently leased to two tenants. The property is on 5.74 acres, and lies in the North Airport Industrial submarket. Leroy Breinholt & Darin Edwards of Commercial Properties Inc. represented GXI, as well as the seller, RRS & Company. See CoStar COMPS # 2018245 for further details.

Former Fleetwood Homes Property Sells for $4M American Park N Swap Buys Glendale Industrial Building for $33/SF By David Whitmore December 29, 2010 American Park N Swap, Inc. purchased the industrial building located at 6112 N. 56th Ave. in Glendale for $4 million, or approximately $33 per square foot. Fleetwood Liquidating Trust disposed of the building, which was formerly occupied by Fleetwood Homes, a builder of manufactured housing. Cavco Industries, Inc. (NASDAQ: CVCO) purchased Fleetwood Homes in August 2009 after its parent, Fleetwood Enterprises, Inc., filed for bankruptcy in March 2009. The 120,000-square-foot manufacturing building sits on 19.5 acres and includes 7,359 square feet of office space, 15 overhead cranes, 12 grade level doors, one dock door, and 2,000 amps of power. American Park N Swap will occupy the property. John Werstler of CB Richard Ellis represented American Park N Swap Inc. Matt Hobaica of Lee & Associates represented Fleetwood. Please see CoStar COMPS #2018130 for more information on this transaction.

Hot location spurs Biltmore Center apartment sale by Jan Buchholz December 22, 2010 Biltmore Center, a dated apartment complex in a highly desirable neighborhood, has sold for $5.1 million. Scottsdale-based Starpointe Communities bought the 149-unit property at 4341 and 4333 N. 24th St. near Biltmore Fashion Square. It is unknown what the developer intends to do with the acquisition. Colliers International Greater Phoenix handled both sides of the deal, which closed quickly. “It was on the market 30 days and they closed within 25 days,” said Colliers’ broker Trevor Koskovich. The oldest of the two buildings was constructed in 1971. The newer one in 1982. Koskovich did not disclose what the occupancy rate was at the time of closing. He said there is a lot of deferred maintenance and that Starpointe likely would address those issues first. Koskovich said apartments or an extended stay hotel might make the most sense at the coveted location, though Starpointe gained a name in town for developing high end condos in Scottsdale. The building had been owned for some time by Silver Developments, a company based in Los Angeles, Koskovich said. It defaulted on a loan and Chase Bank NA took it back the first week of September, he added. Colliers received offers from around the country and Canada.

“There was intense competition from the buying community due to the property’s highly desirable location,” Kosovich said. “A critical element of the marketing and acquisition of Biltmore Center was the seller’s requirement that it be sold as an all cash transaction without a financing contingency. Read more: Hot location spurs Biltmore Center apartment sale | Phoenix Business Journal

Desert Sunrise apartments sell for $4.7M December 21, 2010 Desert Sunrise, a 165-unit north Phoenix property, sold recently for almost $4.7 million. Mike Thayer, principal of Private Asset Management Inc. in Bellevue, Wash., is the buyer. He is a new investor to the market, according to Transwestern, which brokered the deal along with Sperry Van Ness. The seller was Fannie Mae, which had taken back the project as a result of a loan default. At the time of the sale, the occupancy rate was 80 percent, up from 48 percent earlier in the year. “The buyer, who is entering the Phoenix area with this building, is in a good position to take advantage of growing demand for well-positioned, well-located apartment communities,” said Bret Zinn, vice president of Transwestern, in a news release. Read more: Desert Sunrise apartments sell for $4.7M | Phoenix Business Journal

Budget woes for apartments

J. Craig Anderson Dec. 19, 2010 Anyone who has followed the Phoenix area's commercial real-estate market this year has seen a disturbingly large number of apartment-building owners slam into a budgetary brick wall.

Scores of apartment-property owners have been forced to short-sell their properties. Many others have been foreclosed upon by lenders.

In one highly publicized case involving a group of apartment communities formerly run by California-based Bethany Group, a judge gave court-appointed receiver Trigild the green light to market and sell the buildings despite objections from Bethany, which still owned them at the time.

The problem, according to attorney Margaret Steiner of Phoenix law firm Lorona Steiner Ducar Ltd., is that many apartment-community owners have seen the value of their properties plunge more than 50 percent and their tenant occupancy decline to the point where the owners no longer can afford to make their loan payments.

"Many times, the owner has invested his or her life savings in the apartment complex," Steiner wrote in a recent article directed at apartment owners. "Now, this same investor has lost all equity in the property and is facing a foreclosure because the property rents cannot support the required loan payment."

Steiner's informational article, written for Phoenix-based Kasten Long Commercial Group's most recent "Greater Phoenix Apartment Owner's Newsletter," explains what has been happening to apartment owners who have been forced to sell short, which means they sell for less than the outstanding real-estate loan balance, or have the property sold at a foreclosure auction.

In either scenario, she said, the lender has been holding the apartment owners responsible for the unpaid balance of their debt.

Still, Steiner said the amount owed by former owners often can be disputed or negotiated successfully.

For instance, she noted a case in which a loan deficiency of $315,000 was bargained down to $63,000, to be paid in installments.

Finally, she warned struggling property owners about the tax liabilities associated with loan forgiveness and advised them to consult with a tax expert.

Read more: http://www.azcentral.com/arizonarepublic/business/articles/2010/12/19/20101219biz-insider1219anderson.html#ixzz1BXK7AzED

First National Bank HQ sells for $10 million by Jan Buchholz December 6, 2010 WDP Properties in Phoenix has paid $10 million cash in the sale of the vacant headquarters of First National Bank of Arizona in Scottsdale. The sale price was not disclosed in a news release about the deal, but local trade publication Business Real Estate Weekly of Arizona cited the amount. That $10 million number is roughly half of what the bank, via an entity named FNBHQ LLC, paid for it in 2003, according to the Maricopa County Recorder’s Office. The 137,000 square foot property is located at 17600 Perimeter Drive. The bank was closed by the FDIC in 2008 and the property has remained vacant since then. At the time of sale, the property was in the hands of a court appointed receiver. Both sides of the transaction were brokered by CB Richard Ellis in Phoenix. According to CBRE, the property sits on 11 acres and includes a 5,800-square-foot cafeteria, a raised floor data center and a back-up generator. No word on how WDP intends to use the property. Read more: First National Bank HQ sells for $10 million | Phoenix Business Journal

AEW CAPITAL MANAGEMENT FUND SPENDS $42.3 MILLION FOR SCOTTSDALE APARTMENTS December 17, 2010 Scottsdale - A company managed by AEW Capital Management L.P. in Los Angeles, Calif. paid $42.3 million ($169,200 per unit) to purchase The Palladium, a 250-unit apartment community located at 4111 N. Drinkwater Boulevard in Scottsdale. The seller was ACPRE TSP II Realty LLC, a company managed by The Archon Group in Irving, Tex. The cash transaction was negotiated through Tyler Anderson, Sean Cunningham and Chris Brozina of CB Richard Ellis in Phoenix. Records show the buying entity was CPT Palladium Apartments LLC. In January 2007, BREW reported The Archon Group entity paying $50.8 million ($203,200 per unit) to buy The Palladium. The rental community was built by Trammell Crow Residential in 2000. Over the years, BREW has reported companies managed by AEW Capital Management buying and selling numerous investment properties in the Phoenix area. AEW Capital Management provides real estate investment management services to investors worldwide. AEW and its affiliates currently manage more than $43 billion of real estate assets and securities. The company is looking for additional investment opportunities in the Phoenix area . . . that includes office and multi-family properties. The Archon Group, a wholly-owned subsidiary of Goldman Sachs in New York City, N.Y., has also been involved in many multi-family and commercial real estate investment deals in the Valley. Sources say the fund advisor sold The Palladium because the loan that was secured by the apartment community was maturing. The contacts at AEW Capital Management are George McNee and Tom Mullahey . . . (213) 312-2600. Jason McLean is the contact at The Archon Group . . . (972) 368-2500. Talk to the CBRE agents at (602) 735-5555.

BUCHANAN STREET PARTNERS MAKES $20.75 MILLION DESERT DISPOSITION PHOENIX — Buchanan Street Partners has sold the 176,800-square-foot Catalina Terraces, a Class A office building located in Phoenix, to Santa Fe, N.M.-based Rosemont Realty for $20.75 million. Jim Fijan’s CB Richard Ellis brokerage team executed the sale of the three-story, multi-tenant property to the national commercial property acquisition and asset management company.

CASSIDY TURLEY BRE COMMERCIAL HANDLES $4.4 MILLION OFFICE/WAREHOUSE SALE MESA, ARIZONA — Cassidy Turley BRE Commercial has completed the $4.4 million sale of the 222,457-square-foot Pecos Commerce Center, a multi-tenant office/warehouse property located at 7931 E. Pecos Rd. in Mesa. The commercial real estate services provider’s Bob Buckley, Steve Lindley and Tracy Cartledge represented both the buyer and the seller — Scottsdale, Ariz.-based Wilson Property Services and Keybank (aka OREO Corp.), respectively — in the transaction.

UnitedHealth confirms CityScape move December 16, 2010 UnitedHealthcare of Arizona has confirmed it will be moving into CityScape in downtown Phoenix. The company will bring together its 1,700 local employees into CityScape, 1 E. Washington St., and the Liberty Cotton Center, 4425 E. Cotton Center Blvd. The move will consolidate the health insurance company’s six existing locations in the Phoenix area to increase collaboration and efficiency. Plans call for taking 106,900 square feet at CityScape on the sixth, seventh, eighth, ninth and 17th floors. At Liberty Cotton Center, UnitedHealthcare will occupy about 165,000 square feet. Benton Davis, CEO of UnitedHealthcare’s western states operations, said this relocation reinforces the company’s commitment to this region as both an employer and community partner. “Moving our office to downtown Phoenix has long been our preference, and we are proud to further contribute to the city’s development efforts,” he said. Read more: UnitedHealth confirms CityScape move | Phoenix Business Journal

Catalina Terraces Sells for $20.75M Phoenix Office Building Trades for $117 PSF By David Whitmore December 14, 2010 Rosemont Realty, a Santa Fe, NM-based commercial property acquisition and asset management firm, purchased Catalina Terraces, a 176,718-square-foot office building in Phoenix, for $20.75 million, or approximately $117 per square foot. Also included in the transaction was an adjoining parking structure. The three-story office property is located at 7878 N. 16th St. and was built in 1990 on 9.7 acres. The building was awarded an Energy Star label in 2006 for its operating efficiency. It was 78 percent occupied at the time of sale. Buchanan Street Partners, a national real estate investment management firm based in Newport Beach, CA, disposed of the property after taking over the management of three funds formerly operated by a subsidiary of Bank of America in 2008, which included the Catalina Terraces Jim Fijan and Jerry Roberts of CB Richard Ellis represented the seller, Buchanan Street Partners. Rosemont Realty was not represented. Please see CoStar COMPS #2007872 for more information on this transaction.

Goodwill Leases 20,000 SF In Phoenix Cactus Village Shopping Center to Welcome New Tenant By Tomalina Pacheco December 14, 2010 Goodwill has leased 20,000 square feet of retail space at Cactus Village Shopping Center, located at 12046 N. 32nd St. in Phoenix. The retail building is located on the southeast corner of Cactus Rd. and N. 31st St. in Maricopa County. The 92,630-square-foot center was built in 1978. Goodwill is scheduled to open its doors for business in January 2011. Michael Pollack with Michael A. Pollack Real Estate Investments represented the landlord in-house.

120-Unit Glendale Multi-Family Changes Hands Maryland Gardens sells for $4.3M By Brett Wyatt December 10, 2010 A private investor has purchased Maryland Gardens, a 120-unit apartment complex located at 4529 W. Ocotillo Rd. in Glendale, AZ for $4.3 million, or $35,800 per unit. The price represents an actual capitalization rate of 5.8 percent. The seven-building, 88,896-square-foot complex was built in 1983 on four acres in the Northwest Phoenix submarket of Maricopa County, and was renovated in 2004. The property last sold in 2006 for $7.39 million. Todd Braun, Jim Crews, and Blair Polachek with Cushman & Wakefield, Inc. represented the seller. Jim Jones of The Jones Group represented the buyer. Please see CoStar COMPS #2011465 for more information on the sale.

Phoenix apartment complex will house low-income residents

by Matt Haldane Dec. 8, 2010 Arizona Housing Inc. has purchased the 80-unit Royal Suites apartment complex to house low-income residents.

The organization used money borrowed from Phoenix to buy the property at 10421 N. 33rd Ave., which should be renovated and remodeled by this time next year, according to Arizona Housing CEO Mark Holleran. Staff was on site the day before Thanksgiving cleaning the main office of the newly acquired property.

Phoenix lent $3.892 million to the organization, which used $1.03 million of that to buy the property. The rest of the money will be spent on renovations, said Kate Atwood, housing development specialist at the city's Housing Department.

As foreclosed property, Royal Suites qualified for the money provided by the Neighborhood Stabilization Program. These funds came from the federal government as "part of the economic recovery program," Atwood said.

"We're taking lemons and making lemonade," Holleran said, commenting on the purchasing of foreclosed property.

The apartments will be renamed Collins Court, joining Horace Steele Commons and North 17 Apartments as low-income housing offered by the organization. The new property will be named after Kevin Collins, who was killed by a client at Central Arizona Shelter Services, Holleran said.

Holleran is CEO of both non-profit organizations. CASS manages homeless shelters, a temporary living situation for those who need assistance, while Arizona Housing manages low-cost apartments for individuals and families living on below half the area median income. In Maricopa County, this amounts to $23,050 per year for each individual.

Holleran said shelters do not cure homelessness, but housing programs offer a more permanent solution.

"We actually could come very close to ending homelessness in the Valley of the Sun," Holleran said, referring to low-income housing.

Arizona Housing owns three properties used as low-income housing. Steele Commons and Collins Court are meant for individuals, while North 17 is used as family housing. The organization owns a fourth property in Sunnyslope but leases it to CASS to operate as a family shelter, Holleran said.

Collins Court is expected to start at $450 per month, which includes utilities, but Holleran said Arizona Housing will not charge more than 30 percent of a person's income.

"We've become a very good neighbor," he said, noting efforts to take get people off the streets. Holleran said he sees AHI housing as less costly for the community, even when helped by taxpayer money, because getting people into affordable housing helps keep them out of emergency rooms and jails, which can be costly.

"If we sort of pretend that (homelessness is) not here, then when we are forced to deal with it - and we will be - we've spent this incredible amount of money and it's not a solution," Holleran said.

Read more: http://www.azcentral.com/business/realestate/articles/2010/12/08/20101208phoenix-apartment-low-income-housing.html#ixzz1BdYwZ0gF

Direct Alliance leases call center space December 9, 2010 Direct Alliance Corp. has leased 26,000-square-feet in north Phoenix off of Interstate 17. The Tempe call center company inked a seven-year lease at Black Canyon Corporate Center south of Loop 101. Direct Alliance is an arm of TeleTech Inc. (Nasdaq:TTEC). The company operates call centers and provides business outsourcing services. The Black Canyon office complex is owned by Pacific Office Properties Trust Inc. (NYSE, AMEX:PCE). Real estate brokers from Jones Lang LaSalle represented Pacific while brokers from CB Richard Ellis represented Direct Alliance in the lease. Read more: Direct Alliance leases call center space | Phoenix Business Journal

SUNRIDGE CANYON GOLF COURSE IN FOUNTAIN HILLS PURCHASED FOR $2.565 MILLION Fountain Hills - Buckeye West LLC in Silver Lake, Ohio (Don Misheff, Cindy Misheff, principals) paid just under $2.565 million to purchase the SunRidge Canyon Golf Club located on the eastern edge of the McDowell Mountains in Fountain Hills. The seller was RP Sunridge LLC, a joint venture formed by Rockpoint Group LLC in Dallas, Tex. and Sunbelt Holdings LLC in Scottsdale (John Graham, pres.). The cash transaction was negotiated by Roger Garrett and Jon Knudson of Insight Land & Investments in Phoenix. The 18-hole championship golf layout and clubhouse is located north of Shea Boulevard at 13100 N. Sunridge Drive. The investment is the first in the Valley for the Misheffs, who are part-time residents in Fountain Hills. Don Misheff is a managing partner with Ernst & Young in Cleveland, Ohio. The Misheffs have already put a management team in place to operate SunRidge Canyon. The par-71, daily-fee course opened in 1995. The golf club was developed by SunCor Development Co. in Tempe. Keith Foster designed the course. In July, BREW reported SunCor selling SunRidge Canyon to the Rockpoint/Sunbelt venture as part of a large portfolio of real estate assets located in the Valley. The Rockpoint/Sunbelt entity paid $56.294+ million for the properties. The acquisition from SunCor included more than 1,900 acres of commercial and industrial land, a 440,000-square-foot industrial building, a 2,500-space parking garage, an office/retail project, office condominiums, and two 18-hole golf courses. The venture has now resold one of the golf properties and the industrial building. The other golf course is the Sanctuary Golf Course in Scottsdale. The Insight Land brokers are also marketing Sanctuary Golf Course. Sources say a sale is in the works on that property and could be final by first quarter 2011. No further details on that deal. Get more from Don Misheff at (216) 861-5000. Graham is at (480) 905-0770. Talk to principals of Rockpoint Group at (972) 934-0100. Garrett and Knudson are at (602) 385-1515.

CASSIDY TURLEY BRE COMMERCIAL HANDLES $1.95 MILLION INDUSTRIAL SALE December 8, 2010 PHOENIX — Cassidy Turley BRE Commercial has completed the $1.95 million sale of a 32,350-square-foot Class B industrial building, located at 4825 E. Ingram Street in Phoenix. Cassidy Turley’s Kent Hanson represented the seller, Ingram LDB LLC, in the transaction, and MarCor’s Fran Marotta represented the buyer, Falcon Ingram LLC.

MARCUS & MILLICHAP NEGOTIATES TWO-BUILDING INDUSTRIAL SALE IN PHOENIX METRO December 8, 2010 CHANDLER, ARIZ. — Marcus & Millichap has handled the more than $3 million sale of two industrial buildings, located at 208 South McKemy Ave. and 205 South Beck Avenue in Chandler. The brokerage firm’s Danny Kahn represented the undisclosed seller in the transaction. The properties total 97,809 square feet.

Gap Leases 412,405 SF in Phoenix Retailer Adds Distribution Space at Durango Commerce Center By Shane Beyer December 2, 2010 Gap, Inc., one of the world’s largest specialty retailers, signed a deal for 412,405 square feet in the industrial building at 2225 S. 75th Ave. in Phoenix, AZ. Gap plans on moving into the space in Spring 2011. The distribution building totals 568,199 square feet in the Durango Commerce Center. The property was built in 2007 and is situated on 27.26 acres. The remaining 155,794 square feet is available for lease with Cushman & Wakefield Phoenix. Bo Mills, Mark Detmer, and Will Strong of Cushman & Wakefield represented both sides on the transaction.

Nexus Revamps $80M Target-Anchored Center By Jennifer Duell Popovec PHOENIX-Nexus Companies has transformed Bell Towne Centre and Bell Towne Plaza from an outdated center with increasing vacancy to a thriving retail destination. The final pieces of the five-year metamorphosis are new leases with LA Fitness and Toys “R” Us and a complex refinancing.

“Bell Towne is proof that you can succeed in troubled times if you work together with your tenants, the cities and the local brokerage communities,” says Cory Alder, president of Nexus Companies, which has owned Bell Towne Centre and Bell Towne Plaza for nearly 20 years. The project has maintained occupancy of more than 91% during the downturn.

Like many companies, Nexus had to make the decision whether it would reinvest in Target-anchored property or continue to let it decline and lose value. Constructed in phases from the late 1980s, it was well-located in central Phoenix, but in 2003, the firm noticed it was becoming a class B center.

The property had lost several tenants to bankruptcy including Food 4 Less and Clothestime, and in 2004, Harkins Theater moved out. “At this point the center, with its outdated look, vacant movie theater and increasing vacancy, was in danger of becoming a class C center without some serious investment,” says Brandon Ghiossi, a development associate with Nexus Companies.

Alder tells GlobeSt.com that Nexus decided go “full-bore” with a redevelopment plan. The firm first approached Target about expanding its garden center or expanding to include some of the area where the movie theater had been. After reviewing the site, Target said it could open a Super Target store at the site. However, the retailer was only willing to do so if the new store could face Bell Road instead of the 7th Street orientation.

For Nexus to construct a new Super Target, the firm had to get approval from the loan servicer – it had a CMBS loan on the property – and work with the city of Phoenix to obtain new entitlements. The negotiation with Target also involved the restructuring of a ground lease and approval to build 20,000 square feet on three retail pads near Bell Road, which was restricted under the old Target deal, Alder explains.

Alder says the existing conduit loan prevented Nexus from placing additional debt on the property to construct the new Target. The firm worked with Bank of America to obtain a loan of nearly $7 million, using the partnership as collateral.

After more than a year of planning, Nexus began construction of the new 177,000-square-foot Super Target. Additionally, it also commenced a $5 million exterior facelift for the property including new façades, lighting and hardscaping.

The new Super Target opened in 2007, and over the next three years, the tenant mix of the center significantly improved and rent essentially doubled across the board, and in some case, nearly tripled, according to Ghiossi.

The next step was construction of the retail pads, which began in 2009. When they were completed in 2010, they were already 100% leased to Paradise Bakery, Five Guys, Chipotle, Aspen Dental, GameStop and Vitamin Shoppe at rates that were a significant premium to the surrounding market.

The redevelopment continued into this year. Recently, Nexus signed a new 15-year lease with LA Fitness. As part of this new lease, the fitness chain will expand its 35,000-sqaure-foot store to approximately 53,000 square feet by taking 10,000 square feet, which was previously occupied by Tutor Time, and building an additional 8,000 square feet in the rear of that space.

Additionally, Nexus signed a lease with Toys “R” Us to build a 47,000-square-foot Toys “R” Us/Babies “R” Us superstore on the vacant land between Tuesday Morning and Peter Piper Pizza. Construction of both the LA Fitness expansion and Toy “R” Us will begin no later than mid-January and will be completed by Fall 2011.

In order to finance the LA Fitness and Toys “R” Us construction, pay off the $31

million CMBS loan, which was scheduled to mature in April 2011, and the Bank of America loan, the firm refinanced the project in pieces.

New York City-based Ladder Capital Finance LLC provided a $25 million loan for Bell Towne Centre, and Bank of America provided $31 million for Bell Towne Plaza, which included more than $8 million in construction financing. Nexus obtained a total of $56 million with an LTV of about 70%, Alder says. Nexus worked with James Fowler of US Realty Capital in Newport Beach, CA, to obtain the loans.

“If we hadn’t done the work, we could not have refinanced,” Alder says. “We would have had a CMBS loan maturing with no way to refinance it.”

Angelo, Gordon & Co Pays $52M for Anchor Centre Transwestern Investment Company Sells Camelback Corridor Offices By Dale Zavodsky November 23, 2010 Angelo, Gordon & Co, a privately-held registered investment advisor dedicated to alternative investing, acquired the two-building office park at Anchor Centre, located at 2201 and 2231 E. Camelback Rd. in Phoenix, AZ, for $52 million, or about $154 per square foot. Anchor Centre features monument signage, deli, and a sundry shop. The Centre Club, an on-site exercise facility, is free for tenants. The complex is located on a controlled intersection at 22nd St. and Camelback Rd. There is an abundance of shops and restaurants in the immediate area and the building is the home to Ruth's Chris Steakhouse, Starwood Hotels & Resorts, and the CoStar Group. Anchor Centre East is a four-story, 136,847-square-foot office building constructed in 1986. Anchor Centre West is six stories totaling 200,576 square feet and was completed in 1984. Both properties are located in the Camelback Corridor submarket of Maricopa County. Christopher Toci and Jerry Jacobs of Cushman Wakefield, Inc.'s Phoenix office represented the buyer and the seller, Transwestern Investment Company, in the sale. Please see CoStar COMPS #2002956 for more information on this transaction.

El Dorado Holdings Buys 79 Acres for $4M Land Trades Hands at $51,600 Per Acre in Southwest Phoenix By Kenneth Arnold November 22, 2010 El Dorado Holding Company purchased 78.67 acres on the northwest corner of Van Buren St. and N. 59th Ave. in Phoenix, AZ for $4.06 million, or about $51,608 per acre, from Charles M. & Marilyn C. Heers. The all-cash transaction represents one of the largest recent land deals in the Phoenix market. The buyer plans to hold the property as an investment for the foreseeable future. Tod Thorpe with Pacific Realty Advisors represented the buyer, while Chaz Smith and John Finnegan with Colliers International represented the seller. Please refer to CoStar COMPS #2004860 for additional information on this transaction.

ARIZONA BOARD OF REGENTS BUYS MILL AVENUE OFFICE BUILDING AT CENTERPOINT IN TEMPE Tempe - The Arizona Board of Regents paid $11.4 million ($143.78 per foot) to purchase a 79,288-square-foot office building within the Centerpoint mixed-use project located along the west side of Mill Avenue and north of University Dive in Tempe. The seller was Centerpoint Holdings LLC, a company formed by DMB Associates Inc. in Scottsdale (Drew Brown, Mark Sklar, Bennett Dorrance, principals). The buyer paid cash to acquire the four-story building, which is located immediately west of the Arizona State University campus. The office structure, located at 660 S. Mill Avenue, is 82 percent leased. More than half of the building is occupied by ASU for administrative offices and research related uses. The City of Tempe and a daycare business lease 23,500 sq. ft. of the property. The entire building is expected to be occupied by Arizona State University after the leases expire. ASU plans to consolidate some space it leases in off campus buildings and locate those offices at Centerpoint. Steve Nielsen, assistant v.p. for Arizona State University Real Estate, says buying the Mill Avenue project and consolidating the offices will save the school about $500,000 each year. "This is a good, strategic move for the University and a cost-saving one," says Nielsen. The Arizona Board of Regents is the governing board for the state’s public universities. The DMB entity developed the office-retail-residential Centerpoint project in the late 1980's. The 22-acre development has 380,000 sq. ft. of office space, 113,000 sq. ft. of retail shops and a theater, the 160-room Tempe Downtown Courtyard by Marriott hotel and 375 partially-completed condominium units. DMB still owns the retail space and theater and about 12,600 sq. ft. of office space. Sources say the 40,000-square-foot theater, formerly leased to Harkins, is under contact to be sold and will be razed and redeveloped as a hotel. No further details on that project. Find out more from Nielsen at (480) 965-7616. Charley Freericks, general manager of DMB Commercial, is at (480) 367-7000.

NEW MEXICO FIRM ENTERS VALLEY MARKET . . . PAYS $20.75 MILLION FOR PHOENIX OFFICE PROJECT November 26, 2010 Phoenix - A company formed by Rosemont Realty in Santa Fe, N.M. (Daniel Burrell, CEO) paid $20.75 million ($117.42 per foot) to purchase a 176,718-square-foot office building at 7878 N. 16th Street in Phoenix. The seller was a fund originally managed by Maier Siebel & Baber in San Francisco, Calif. Buchanan Street Partners in Newport Beach, Calif. (Robert Brunswick, pres.) served as investment advisor for the selling entity, MSB Catalina Terraces LLC. The transaction was brokered by Jim Fijan and Jerry Roberts of CB Richard Ellis in Phoenix. The acquisition included the office building and an adjoining parking facility. The three-story office structure, called Catalina Terraces, is 80 percent occupied. CBRE has the leasing and management assignments. The project was built in 1990 and renovated in 2002. The investment is the first in the Phoenix area for Rosemont Realty, which is a subsidiary of Rosemont Capital LLC in New York City, N.Y. The privately-held Rosemont Realty is looking for more investment opportunities in the Phoenix area, as well as other markets located across the U.S. Rosemont Realty's current portfolio includes more than 13.5 million sq. ft. of office buildings, 500,000 sq. ft. of retail space and more than 2,000 multi-family units. The company's assets are located in 28 states. Since 1991, Rosemont Realty has sponsored 15 funds and deployed $800 million in equity from its investors. Over that 19-year period, the company has acquired and managed more than $3 billion in real estate. The Rosemont Realty entity that acquired Catalina Terraces was a company called Catalina Terraces Operating Associates LLLP. Records show the company purchased the 16th Street office with a $15.562 million loan from American National Insurance Co. At year end 2004, the Maier Siebel &

Baber fund paid $23.56 million ($133.32 per foot) to buy Catalina Terraces (at that time called Pointe Corridor Center IV). No word on the disposition of those assets. Get more from Tim Farrell of Rosemont Realty at (505) 992-5100. The contact at Buchanan Street Partners is Brian Zulpo . . . reach him at (949) 219-2324. The CBRE agents are at (602) 735-5555.

CANADIAN REIT SPENDS $14.8 MILLION FOR GLENDALE OFFICE DEVELOPMENT . . . WANTS MORE November 26. 2010 Glendale - A limited partnership formed by Artis REIT in Winnipeg, Manitoba, Canada (TSX:AX.UN, Armin Martens, CEO) paid $14.8 million ($139.07 per foot) to purchase a 106,418-square-foot office property at 8990 W. Glendale Avenue in Glendale. The seller was 91 Glendale Holdings LLC, a company formed by Shea Properties in Scottsdale. The cash sale was brokered through Chris Toci of Cushman & Wakefield of Arizona Inc. in Phoenix, and Tim Richey of C&W in Denver, Colo. The building, which was developed by Shea Properties in 2007, is fully occupied. Humana leases the entire project for a pharmacy benefits management center. The investment is the first in the Valley for Artis REIT, a real estate investment trust that is traded on the Toronto Stock Exchange. The publicly-traded trust owns office, industrial and retail properties located primarily in Western Canada. The $2.3 billion REIT is looking to buy additional investment properties in the Phoenix area, as well as other U.S. markets . . . the company has $200 million to $500 million to spend in the next six months. Artis REIT is managed by Marwest Management Canada Ltd., a real estate development and management firm headed by Martens. Artis REIT is being advised by Marwest Enterprises LLC in Scottsdale (Peter Martens, Philip Martens, principals), an affiliate company that is serving as asset manager on the Glendale office and other properties the REIT is buying in the U.S. Learn more from Armin Martens at (204) 947-1250. Talk to Peter Martens and Philip Martens at (480) 556-9984. Reach Toci at (602) 253-7900. Richey is at (303) 813-6400.

Lincoln Property Company Signs 39,408 Square Foot Lease at 4720 West Van Buren with Core Materials Distribution Phoenix, AZ, November 24, 2010 --(PR.com)-- The Phoenix office of Lincoln Property Company, a full-service real estate firm providing property management, receivership services, leasing, development and project management, announced it has signed a new lease for 39,408 square feet with Core Materials Distribution, LLC. Lincoln Property Company owns and manages the industrial property located at 4720 West Van Buren in Phoenix. Phoenix-based Core Materials Distribution, LLC, is a distributor of sheetrock and wood products. In addition, Lincoln Property Company announced it has renewed a 24,500 square foot lease with Timber Mountain Hardwoods in the same building. “Given the large number of industrial buildings in the Southwest Phoenix market, this transaction speaks highly of our location, access and product,” said Cooper Sutherland, Designated Broker for Lincoln Property Company. Core Materials was represented by Payson MacWilliam of Colliers International. Cooper Sutherland, Designated Broker for Lincoln Property Company, represented the landlord in both transactions. Lincoln Property Company ("Lincoln") is an international full service real estate firm offering real estate development, design/construction management and property/asset management services. Founded in 1965, Lincoln currently has approximately 4,400 employees and maintains a presence in more than 200 cities in the United States and 10 countries throughout Europe. Lincoln has developed over 112 million square feet of office, industrial, and retail projects, and 182,000 multi-family units. Property management assignments currently include over 116 million square feet of commercial space and 112,000 multi-family units.

Acquisition activities exceed $4.0 billion in commercial properties and $3.5 billion in residential properties. Lincoln commercial and residential developments have been widely recognized as landmarks in their communities for sophisticated design, high quality and superior locations. National Real Estate Investor has ranked LPC the #1 Real Estate Services Firm in the Country. LPC is ranked 3rd Top Developer and 7th Top Property Management firm in the country by Commercial Property News. Lincoln's West Regional office, based in Phoenix, Arizona, has developed in excess of 2.9 million square feet, acquired 2.1 million square feet and manages 4.7 million square feet of commercial space. We are consistently highly ranked in the Phoenix Business Journal Book of Lists. For more information, visit www.lpc.com

Apartment Complex Sells for $1.7M in Phoenix Navaho Holdings Purchases 76-Unit Sundancer Apartments By Shane Beyer November 17, 2010 Hannay Investments, a court appointed receiver, sold the 76-unit Sundancer Apartment complex located at 400 N. 96th Ave. in Tolleson, AZ to Navaho Holding, Inc. for $1.75 million, or approximately $23,000 per unit. The 66,160-square-foot apartment community consists of 24 one-bedroom and 52 two-bedroom units. It was built in 1985 in Maricopa County and was 85 percent occupied at the time of sale. Brian Smuckler and Jeff Seaman with Marcus & Millichap represented both sides in the transaction. Please see CoStar COMPS #1999383 for more information on this transaction.

Sorrento Apartments sold for $9.7M November 22, 2010 Sorrento Apartments, a 226-unit multifamily property located at 901 S. Dobson Road in Mesa, was sold to Hamilton Zanze & Co. in San Francisco for $9.7 million or $42,920 per unit. The seller, San Ai Dobson LLC in Newport Beach, Calif., recently renovated the apartments, improving the occupancy rate to 93 percent. The acquisition was an off-market transaction, according to a news release distributed by Colliers International’s Phoenix office, which represented the buyer. The seller was self-represented. “The seller selected Hamiton Zanze as the buyer due to their ability to provide the seller with a certainty of closing,” said Brad Cooke, vice president of multi-family investments at Colliers. Hamilton Zanze recently acquired seven Class B multifamily properties in Tucson. Sorrento, which is also a Class B property, was built in 1983 and is a 163,300-square-foot property located within walking distance to Fiesta Mall. Read more: Sorrento Apartments sold for $9.7M | Phoenix Business Journal

PEM REAL ESTATE GROUP BACK IN MULTI-FAMILY BUYING BUSINESS . . . PICKS UP 392 UNITS IN MESA November 12. 2010 Mesa - A company formed by PEM Real Estate Group in Scottsdale (Paul Mashni, principal) paid $11.825 million ($29,86 per unit) to buy the 396-unit Orange Grove apartments at 111 N. Gilbert Road in Mesa. The seller was Alliance Southwest LLC as receiver for LaSalle Bank, as trustee for the registered holders of J.P. Morgan Chase Commercial Mortgage Securities Corp. Commercial Mortgage Pass-Through Certificates Series 2006-LD98. The sale was brokered by Mark Forrester and Ric Holway of Hendricks & Partners in Phoenix. The apartment complex had been in receivership. PEM Orange Grove Mesa LLC acquired the rental community by assuming a $9.6 million loan from the seller. That mortgage was written down and modified by several million dollars. In July 2006, BREW reported a company formed by investor Mike Yuval of Tidan USA in Montreal, Quebec, Canada paying $25.26 million ($63,788 per unit) to purchase Orange Grove. The Mesa apartment complex, which was 78 percent occupied at closing, was built in 1984. Mashni says PEM intends to spend about $1 million to refurbish Orange Grove. Companies formed by Tidan USA have lost several Valley apartment properties after defaulting on loans secured by the multi-family communities. The purchase of Orange Grove is the first apartment investment for PEM in more than three years. From 2005 to 2007, the privately-held PEM spent more than $356 million in buying 15 apartment properties in the Phoenix and Tucson markets. Mashni says the company is looking to purchase additional multi-family projects in the Valley . . . PEM wants to acquire another 2,000 units in the Phoenix area in the next 12 to 18 months. Get more from Mashni at (480) 422-6930. Yuval is at (514) 845-6393. Forrester and Holway are at (602) 955-1122.

Barcelona Center sold, tenant on tap for nightclub by Jan Buchholz November 12, 2010 The Barcelona Center at 15444 N. Greenway-Hayden Loop in Scottsdale was sold for $2.4 million by Scottsdale Place LLC to Capital Creek Gold LLC. Both are Scottsdale-based entities. Brokerage Orion Investment Real Estate Solutions in Scottsdale handled both sides of the deal. The 20,500-square-foot Barcelona Center had been built in 2006 by an entity owned by Danny Hendon, owner of Danny’s Family Cos., which is in Chapter 11 bankruptcy reorganization. Hendon did not own the land, however. He had a ground lease executed by Scottsdale Place LLC. As a result of court actions in the Danny’s Family Cos. bankruptcy, the improvements Hendon made became the property of Scottsdale Place LLC, according to Ari Spiro, Orion president. Scottsdale Place then put the center on the market. The situation is the same for the adjacent Barcelona Nightclub, which Hendon also built on leased land. Though Scottsdale Place took possession of the club as a result of court action, it was not part of the recent sale. Spiro said Scottsdale Place may have a new tenant for the 15,000-square-foot nightclub. That transaction is pending. Read more: Barcelona Center sold, tenant on tap for nightclub | Phoenix Business Journal

L.A. INVESTORS SPEND $21 MILLION FOR 480 APARTMENTS IN MESA November 12, 2010 Mesa - Texzona Tradewinds Partners LLC in Los Angeles, Calif. (Helen Zeff, Rachel Glickman, Jessica Glickman Mauk, principals) paid $21 million ($43,750 per unit) to acquire the 480-unit Tradewinds apartments at 2145 W. Broadway Road in Mesa. The seller was 2145 Broadway LLC, a company formed by a group of investors headed by Ed Klugman of Pro Properties in Phoenix. The sale was brokered by Bert Kempfert of CB Richard Ellis in Phoenix. The buyer acquired the property by assuming a $18 million loan issued by Legg Mason Real Estate in L.A. The escrow was handled by Patty Marino of Empire West Title Agency in Phoenix. The investment is the first in the Valley for the So. Calif.-based investors, but sources say it won’t be the last. In June 2006, BREW reported Klugman’s group paying $22.3 million ($46,458 per unit) to purchase Tradewinds. The project was built in 1975. Over the years, BREW has reported companies formed by Klugman buying and selling numerous apartment properties in the Valley. Leonard Glickman is the contact for Texzona Tradewinds Partners . . . reach him at (323) 782-4300. Call Klugman at (602) 995-7037. Talk to Kempfert at (602) 735-5555.

Mountain Vista Commerce Cntr Sells For $7.9M in REO Sale Buchanan Street Ptnrs Buys Multi-Tenant Flex Industrial Park in Phoenix By Shane Beyer November 10, 2010 Berkadia Commercial Mortgage, a special servicer for the CMBS pool, has sold Mountain Vista Commerce Center for $7.9 million, or approximately $58 per square foot, in an REO sale. The properties were originally foreclosed upon in 2009. The deal totals 133,600 square feet and includes three buildings located at 14647 S. 50th Street in the Chandler Industrial submarket. The buildings were built in 1999 and are situated on 10 acres. Bob Buckley, Steve Lindley, and Tracy Cartledge of Cassidy Turley BRE Commercial represented both sides in the sale. Please see CoStar COMPS #1992893 for more information on this transaction.

INVESTMENT FIRM FROM SO. CALIF. BUYS SECOND OFFICE PROJECT IN VALLEY . . . WANTS MORE November 5, 2010 Scottsdale - CJK SFC III LLC, a company formed by CJK Investments in Newport Beach, Calif. (Steven Craig, Steve Jarecki, David Kray, Jan Tatala, principals), paid $15.54 million ($103.16 per foot) to buy a 150,638-square-foot office building located at 7272 E. Indian School Road in Scottsdale. The seller was TR SFC III Corp., a company formed by KBS Realty Advisors in Newport Beach. The five-story building, called Scottsdale Financial Center III, is reported to be 77 percent occupied. Tim Waters and Brian Raczynski of Colliers International in Phoenix have the leasing assignment. The property, which was built in 1988, is being managed by CB Richard Ellis in Phoenix. The buyer acquired the asset with a $9.3 million loan from Massachusetts Mutual. Life Insurance Co. The price CJK Investments paid for the Indian School Road office is about half of the amount the KBS Realty company paid for the asset. In June 2005, BREW reported the KBS Realty entity paying $30 million ($199.15 per foot) to buy Scottsdale Financial Center III. Representatives of the buyer declined to comment on the deal, and the seller did not return calls. The investment is the second in the Valley for the newly-formed CJK Investments. The privately-held real estate investment firm is looking for additional office properties in the Phoenix area as well as industrial, retail and multi-family assets in the Valley and other markets in the western U.S. In September, BREW reported CJK Investments paying $13.25 million ($75.63 per foot) to acquire a 175,186-square-foot office building located at 5090 N. 40th Street in Phoenix. Jarecki, Kray and Tatala previously worked together at KBS Realty Advisors, a non-traded REIT (real estate investment trust) and also the seller of Scottsdale Financial Center III. Craig’s company, Craig Realty Group in Newport Beach, owns, operates and manages nearly 4.3 million sq. ft. of retail space in six states. One of those properties is the Outlets at Anthem in north Phoenix. Call Jarecki at (949) 224-4175.

NI FAMILY PURCHASES FESTIVAL RANCH IN BUCKEYE FOR $30+ MILLION November 5, 2010 Buckeye - Companies formed by the Ni family in Scottsdale (Tsann Li Ni, member) paid $30.09 million in cash to purchase 7,042 acres in a planned community in Buckeye called Festival Ranch. The seller in three transactions was 10,000 West LLC, company controlled by the Bank of Scotland. The buyer was represented by Mike Schwab and Greg Vogel of Land Advisors Organization in Scottsdale, and Ross Cooper of New Horizons Realty Advisors in Scottsdale. The seller was represented by Blake McKee of CB Richard Ellis in Phoenix, Steve Lehr of CBRE in Minneapolis, Minn. and Jeff Woolson of CBRE in Carlsbad, Calif. In a separate transaction, the Ni family paid the seller an undisclosed amount for a back-end participation generated by the sale of 5,000 homes that Pulte Home Corp. and Del Webb Corp. plan to build at Festival Ranch. The "income-stream" will be paid to the Ni family company over the next 10 to 15 years as Pulte/Del Webb sells residences at Sun City Festival. That deal, with a potential value of about $30 million, was agreed to by Pulte/Del Webb and the previous owner of Festival Ranch, an investment group formed by Lyle Anderson of The Lyle Anderson Cos. in Scottsdale. According to marketing material from CBRE, the income stream from each home sold by Pulte/Del Webb is 2.5 percent. Based on a average sale price of $250,000 on 5,000 residences, that amount could be as much as $30 million. The Bank of Scotland in Manchester, England financed many of The Lyle Anderson Co.'s real estate ventures and took control of the assets in 2008 after Anderson's entities defaulted on loans secured by the properties. The acreage acquired by the Ni family at Festival Ranch is entitled for 15,000 lots. There is also roughly 700 acres of land targeted for more than 5 million sq. ft. of commercial buildings. The property is also entitled for up to 1,000 resort rooms and multiple golf courses. The Ni family entity intends to hold the Festival Ranch land for

future resale to builders and developers. Those sales may not occur for another 5 to 10 years. Land Advisors Organization will assist in marketing. "It was a great buy with a low basis," says Vogel, who represents the Ni family. "The family that bought (Festival Ranch) is very patient. They will do very well with it in years to come." Festival Ranch is located along the north side of Sun Valley Parkway and between the alignments of 263rd and 287th avenues. In January 1995, BREW reported Anderson's company paying roughly $12 million to acquire the 10,093-acre Festival Ranch tract. In May 2004, BREW reported Anderson's company selling a 3,300-acre parcel with Festival Ranch to Pulte Home Corp. in Scottsdale. The property acquired by Pulte is targeted for 7,000 residences in a age-restricted community Del Webb is developing called Sun City Festival. Plans also include roughly 2,000 conventional homes that Pulte is developing on about 800 acres. Pulte Home Corp. and Del Webb are both subsidiaries of Pulte Corp. in Bloomfield Hills, Mich. (NYSE:PHM). Call Schwab and Vogel at (480) 483-8100. Cooper is at (480) 928-0068. Talk to McKee at (602) 735-5555. Lehr is at (952) 924-4656. Reach Woolson at (760) 438-8530.

Whitestone REIT Pays $6.4M for Phoenix Retail Center MidFirst Bank Sells 97,000-SF Retail Property in REO Sale By Dale Zavodsky November 5, 2010 Whitestone REIT, a fully integrated real estate company that owns, operates and re-develops community-centered properties, acquired the retail center located at 115 E Dunlap Ave in Phoenix, AZ, for $6.4 million, or about $66 per square foot. Known as Sunny Slope Village Center, the single-story shopping center is 97, 295 square feet and was delivered in 2000 in the East Phoenix Retail submarket. It is located across the street from John C Lincoln Hospital. The buyer was able to purchase the property at a significant discount because of high vacancy at the property, reported at 52 percent. Steven Underwood and Chad Tiedeman of Phoenix Commercial Advisors represented the seller, MidFirst Bank, in this REO sale. The buyer was self-represented. Please see CoStar COMPS #1997807 for more information on this transaction.

MULTI-FAMILY TRANSACTIONS Phoenix - Harbor Ridge Enterprises LLC in Alamo, Calif. (Angela Chiang, manager) paid $2.4 million ($22,641 per unit) to buy the 106-unit Harbor Ridge apartments located at 16815 N. 29th Street in Phoenix. The seller was Khalsa Properties LLC in Monterey, Calif. (Sat Kirtan Khalsa, Maria Vargas, principals). The short sale was brokered by Neil Sherman of Sperry Van Ness in Phoenix. The buyer acquired the rental community with a $300,000 down payment and by assuming a $2.1 million mortgage from IMPAC Commercial Capital Corp. in Irvine, Calif. That loan was reduced from $3.8 million that was owed by the previous owner. In March 2005, BREW reported Khalsa Properties paying $5.3 million ($50,000 per unit) to purchase Harbor Ridge, which was built in 1985. Chiang has been an active buyer of multi-family projects in the Valley, and is looking for additional apartment projects. Phoenix - Encanto Oasis Partners LLC, a company formed by Ed Cerna of Marcus & Millichap Real Estate Investment Services in Palo Alto, Calif., paid $685,000 ($26,346 per unit) to buy the 26-unit Encanto Oasis apartments at 1840 W. Thomas Road in Phoenix. The seller was Tim Huff of Case, Huff & Associates Inc. in Phoenix, as court-appointed receiver. The buyer acquired the apartment project with a $68,500 down payment and by assuming a $616,500 loan from IMPAC Commercial Capital Corp. in Irvine, Calif. That mortgage was modified from a $1.47 million loan issued to the previous owner of Encanto Oasis. In July 2006, investor James Collins of Pasadena, Md. paid $2.1 million ($80,769 per unit) to acquire Encanto Oasis, which was built in 1962. Phoenix - JSM Capital LLC in Scottsdale (Steve Spiesberger, Michael Sheptin, principals) paid $540,000 ($16,363 per unit) to purchase the 33-unit Ocotillo Oasis apartments at 6220-6224 W. Ocotillo Road in Phoenix. The seller was S.A. Challenger Inc., a company formed by U.S. Bank. The cash transaction was

brokered through Terry Kass of Kasten Long Commercial Group in Phoenix. U.S. Bank foreclosed on the previous owner of Ocotillo Oasis, which was built in 1984. Phoenix - Payingcashforhouses.com LLC, a company formed by investors Alan Robinson and Che Lynum in Phoenix, paid $400,000 ($12,500 per unit) to acquire 32 units of the 44-unit Atrium multi-family project at 1702 E. Monte Vista Road in Phoenix. The seller was Jalika Enterprises LLC in Scottsdale (Ching Jung Wu, Julie Chiou-Yee Wu, members). The cash transaction was brokered by Rue Bax and Eddie Chang of ORION Investment Real Estate Solutions in Scottsdale. The condominium units were sold through a short sale. Berkadia Commercial Mortgage LLC was the beneficiary of the proceeds from the sale. In December 2005, Jalika Enterprises paid $2.816 million ($88,000 per unit) to buy the 32 condominium units.

NEW VALLEY GROCER WINCO FOODS MOVING FAST . . . SNAPS UP THREE PROPERTIES FOR STORES Mesa/Glendale/Phoenix - WinCo Foods, a Boise, Idaho-based grocery chain, is on a fast track to gain entry into the Phoenix market. The employee-owned company has purchased former Costco locations in Mesa and Glendale and a former Wal-Mart in Phoenix. In three separate cash sales, WinCo Foods and its affiliates paid just under $16.9 million to buy the three Valley retail properties. Sources say the discount grocery chain has several other locations under contract to acquire in the Phoenix area, and will have at least eight stores in the Valley within the next couple of years. Ed Beeh of SRS Real Estate Partners in Phoenix has been involved with WinCo Foods in the Phoenix area real estate acquisitions. Sources say WinCo is working with Kornwasser Shopping Center Properties in Phoenix to develop ground up stores on vacant sites. The first Valley locations for WinCo Foods are expected to open next year. While the company�s prototypical store is about 94,000 sq. ft., WinCo Foods will have some stores larger than that in the Phoenix area with the purchase of the former Costco and Wal-Mart properties, which have structures well over 100,000 sq. ft. Although WinCo Foods representatives will not comment on the expansion into the Phoenix area and locations the company has already secured, here is what we do know: WinCo Foods paid $7.5 million to purchase a former Costco at 1235 S. Power Road in Mesa. The seller was Costco Wholesale in Issaquah, Wash. Bella Vista Partners LLC in Chicago, Ill., an affiliate of WinCo Foods, paid $5 million to buy a former Costco store at 5850 W. Bell Road in Glendale. The seller was KIR Glendale LP, a company formed by Kimco Realty Corp. in New Hyde Park, N.Y. Bell Road Partners LLC in Chicago, an affiliate of WinCo Foods, paid just over $4.378 million to acquire a former Wal-Mart store located at northwest corner of Third Avenue and Bell Road in Phoenix. The seller was Bell & Third Plaza LLC (Capmark Bank was the beneficiary). Last month, Peoria Avenue Partners LLC in

Chicago, an affiliate of WinCo Foods, paid $5.182 million to purchase a 14 acre parcel at 51st and Peoria avenues in Glendale. The seller was Sarival Farms Peoria 51 LLC in Phoenix (Cameron Cooke, member). Kornwasser will develop a store for WinCo Foods on that site. WinCo Foods has 75 locations in Washington, Idaho, California, Nevada, Oregon and Utah. Learn more from Morgan Randis of WinCo Foods by calling (208) 672-2072. Reach Beeh at (602) 682-6040. Call Gordon Keig of Kornwasser at (602) 889-2072.

MARK-TAYLOR AND KITCHELL TO DEVELOP APARTMENT COMPLEX IN TEMPE Tempe - A venture formed by Mark-Taylor Residential in Scottsdale (Jeff Mark, Scott Taylor, Joe Lewandowski, principals) and Kitchell Development Co. in Phoenix (Jeff Allen, pres.) plans to develop a 229-unit apartment complex located west of the southwest corner of Rural and Baseline roads in Tempe. Rural Baseline Apartments LLC, the venture formed by Mark-Taylor and Kitchell, paid $4.55 million to acquire the site for the development. The seller was Rural Baseline Two LLC, a company formed by Kitchell. The 10.1-acre parcel is located at 477 and 577 E. Baseline Road. In November 2008, BREW reported Kitchell paying $5 million for the property, which had previously been occupied by Earnhardt Dodge/Suzuki automobile dealerships. Sources say the Mark-Taylor/Kitchell venture plans to start construction on the multi-family community by this time next year. No further details on the planned project. BREW has reported Mark-Taylor developing and selling numerous apartment properties in the Phoenix area. The apartment development will be the first new project for Mark-Taylor in more than three years. The Tempe apartment site is immediately west of a 16-acre parcel that Kitchell developed as a retail center called Lakes Towne Center. Kitchell purchased that property from pard plain Earnhardt Ford in 2007 and has developed 23,000 sq. ft. of retail shops and leased or sold pads to Lowe's Home Improvement, Circle K and MidFirst Bank. BREW has reported Kitchell developing and selling retail and office properties in the Valley. Get more from principals of Mark-Taylor at (480) 991-9111. Ryan Cochran is the contact at Kitchell . . . (602) 631-6177.

Festival Ranch sold for $30M by Jan Buchholz November 4, 2010 BM3 Holdings LLC paid $30 million for the 7,042-acre Festival Ranch in the far West Valley, marking the Phoenix area’s largest land deal since 2008. Scottsdale brokerage Land Advisors Organization announced the sale of the master-planned community by 10,000 West LLC, an entity previously been controlled by the Lyle Anderson Co., Tuesday. According to records at the Arizona Corporation Commission, BM3 was registered Oct. 12 by member Tsann Li Ni, a Scottsdale resident. Those records indicate he is the only member who "owns a 20 percent or greater interest in the capital or profits of the company." A press release by Land Advisors indicates the buyer "has a longstanding history with both land acquisition and disposition in the metropolitan Phoenix market." In addition to the land, the buyer acquired "the income stream associated with a percentage of each home closing price for the (approximately) 5,000 remaining homes to be sold within Pulte-Del Webb’s Sun City Festival community." No price was disclosed for that portion of the deal. The Festival Ranch property is located on Sun Valley Parkway between 263rd and 287th avenues in north Buckeye, adjacent to Pulte-Del Webb’s Sun City Festival and the Festival Foothills community. Read more: Festival Ranch sold for $30M | Phoenix Business Journal

Ahwatukee Office Plaza Sold for $52/SF Phoenix Office Bldg Trades For $1M in REO Sale By David Whitmore November 2, 2010 Cedar Hearts Clinic PLLC purchased the office building located at 11011 S 48th St. in Phoenix for $1.05 million, or approximately $52 per square foot, in an REO sale. The property was reported to have a vacancy rate of 42 percent at the time of closing. Known as Ahwatukee Office Plaza, the two-story, 20,112-square-foot property completed construction in 1988. Chris Keenan of Marcus & Millichap represented both the buyer and the seller, Wells Fargo Bank, NA. Please see CoStar COMPS #1991389 for more information on this transaction.

Festival Ranch sold November 3, 2010 BM3 Holdings LLC paid $30 million for the 7,042-acre Festival Ranch in the far West Valley, marking the Phoenix area’s largest land deal since 2008. Scottsdale brokerage Land Advisors Organization announced the sale of the master-planned community by 10,000 West LLC, an entity previously been controlled by the Lyle Anderson Co., Tuesday. According to records at the Arizona Corporation Commission, BM3 was registered Oct. 12 by member Tsann Li Ni, a Scottsdale resident. Those records indicate he is the only member who "owns a 20 percent or greater interest in the capital or profits of the company." A press release by Land Advisors indicates the buyer "has a longstanding history with both land acquisition and disposition in the metropolitan Phoenix market." In addition to the land, the buyer acquired "the income stream associated with a percentage of each home closing price for the (approximately) 5,000 remaining homes to be sold within Pulte-Del Webb’s Sun City Festival community." No price was disclosed for that portion of the deal. The Festival Ranch property is located on Sun Valley Parkway between 263rd and 287th avenues in north Buckeye, adjacent to Pulte-Del Webb’s Sun City Festival and the Festival Foothills community Read more: Festival Ranch sold | Phoenix Business Journal

HZ Purchases Sorrento Apartments For $9.7M San Ai Dobson LLC Sells 226-Unit Complex in Mesa By Shane Beyer October 28, 2010 San Ai Dobson, LLC sold the 226-unit Sorrento Apartments complex in Mesa, AZ to Hamilton Zanze & Company for $9.7 million, or approximately $43,000 per unit. The 168,324-square-foot apartment community consists of 18 studios, 98 one-bedroom one-bathroom, and 110 two-bedroom two-bathroom units. It was built in 1982 and was 91 percent occupied at the time of sale. Cindy Cooke, Brad Cooke, Carrie Burton and Nicholas Eggert with Colliers International’s Phoenix office represented the buyer, Hamilton Zanze. Please see CoStar COMPS #1985770 for more information on this transaction.

Standard Acquires Apartments For $133M Trigild Inc. Sells Apartments By Dinh Nguyen October 22, 2010 Standard Portfolios Asset Management Co. purchased a portfolio of seven apartment properties totally 2,759 units, known as the Bethany Kingdom in Arizona from Trigild Inc for $133.1 million, or about $70 per square foot, on Oct. 1. The distress sale includes the following properties: 102 W Palomino Dr., 460 units, Chandler, AZ; 5020 W. Thunderbird Road, 196 units, Glendale, AZ; 2222 N. McQueen Road, 320 units, Chandler; 868 S Arizona Ave., 374 units, Chandler; 1050 S. Longmore, 432 units, Mesa, AZ; 5120 N 16th St., 395 units, Phoenix; 901 S. Country Club Drive, 582 units, Mesa. Mark Forrester and Ric Holway of Hendricks & Partners represented the seller. No brokers represented the buyers. Please see CoStar COMPS#1987620 for more information on this transaction.

Phoenix's Top Retail Sales for Third-Quarter 2010 By Matthew Kirchwehm October 25, 2010 The following is an account of the Phoenix market's top five retail sale transactions for third quarter 2010. The Van Tuyl Group purchased 9130 W. Bell Road, a 29,612-square-foot auto dealership in Peoria, for $10 million, or roughly $338 per square foot. The buyer and seller, DCC Investments LLC, were represented in-house. Paul M. & Patricia N. Taylor purchased 15450 N Tatum Blvd., a 14,832-square-foot building in Phoenix, for $7.73 million, or about $521 per square foot. Jamie Medress, Steve Gonzalez, and Mark Ruble of Marcus & Millichap represented the seller, Camelback RE Development LLC. Cole Real Estate Investments purchased 18411 N Cave Creek Road, a 56,742- square-foot property in Phoenix, for $7 million, or approximately $123 per square foot. The transaction was part of a larger portfolio consisting of 33 properties nationwide that sold for $276 million. Eastdil Secured LLC represented the seller, Albertsons. The buyer was represented in-house. Cole Real Estate Investments purchased 1951 W Baseline Road, a 51,393-square-foot building in Phoenix, for $6.1 million, or about $118 per square foot. The transaction was part of a larger portfolio consisting of 33 properties nationwide that sold for $276 million. Eastdil Secured LLC represented the seller, Albertsons. The buyer was represented in-house. West Valley Properties, Inc. purchased Cobblestone Village at 1721-1761 E Warner Road, a 100,448-square-foot property in Tempe, for $4.8 million, or roughly $48 per square foot. John Sevo & Andrew Miller were the sellers. There were no brokers involved in the transaction.

Hines announces two new tenants October 21, 2010 Until recently, the largest “zombie” office building in the Phoenix metro area was 24th at Camelback II, the new 11-story, 307,000-square-foot tower near the southwest corner of 24th Street and Camelback Road. It had been vacant since it was completed in 2009. But that dubious distinction doesn’t apply anymore. Developer Hines announced this week that two leases have been signed, each for about 40,000 square feet. Aecom Technology Corp. is moving from 2777 E. Camelback Road, and human resources consulting firm Mercer is moving from 3131 E. Camelback. Both will take occupancy sometime in 2011. Hines, based in Houston, built 24th at Camelback II jointly with a large U.S. pension fund. Read more: Hines announces two new tenants | Phoenix Business Journal

Phoenix’s Top Industrial Sales for Third-Quarter 2010 By Lindsey Hicks October 18, 2010 The following is an account of the Phoenix market’s top five industrial sale transactions for third-quarter 2010. Cole Real Estate Investments purchased Home Depot Distribution located at 9081 W Washington St. in Tolleson for $30,445,247, or roughly $65 per square foot at a 7.3% cap rate. The 466,694-square-foot building delivered this year. Jack Fraker with CB Richard Ellis represented the seller, HD Phoenix LLC. The buyer was represented in-house. Niagara Bottling LLC purchased 275 S 67th Ave. in Phoenix for $10.03 million, or about $40 per square foot. The buyer will occupy the entire 251,669-square-foot building doing business as Niagara Bottling. Anthony Lydon and Marc Hertzberg with Jones Lang LaSalle represented the seller, Five Star Development. Tom Louer and Paul Earnhart with Lee & Associates represented the buyer. M&M Industries, Inc. purchased 4739 W Jefferson St. in Phoenix for $6.09 million, or approximately $38 per square foot. The buyer will occupy the entire 160,146-square-foot property. Anthony Lydon and Marc Hertzberg with Jones Lang LaSalle represented the seller, DCT Jefferson LLC. Rick Collins with Ross Brown Partners, Inc. and Tommy Austin with Austin Real Estate LLC represented the buyer. Soncell North America LLC purchased 3433 E Wood St. in Phoenix for $4.6 million, or about $102 per square foot. The buyer will occupy the 45,199-square-foot building doing business as Arizona Emergency Products. Matthew McDougall and Jeff Adams with NAI Horizon represented the seller, DKS Properties. Adam Hansen and Fred Buck with Commercial Properties, Inc. represented the buyer.

David Turner International LLC purchased the 124,394-square-foot property at 4502 W Monterosa St. in Phoenix for $4.5 million, or roughly $36 per square foot. The buyer will occupy the building doing business as Suntree LLC. David Johnson with Lee & Associates represented the seller, NutraPhoenix LLC. Randy Shell with Shell Commercial represented the buyer.

FBI to Occupy New Building in Phoenix Market GSA Signs 20-Year Lease By Randyl Drummer October 19, 2010 The U.S. Government Services Administration (GSA) has signed a 20-year lease for the Federal Bureau of Investigation (FBI) to occupy Ryan Companies' 210,202-square-foot building under construction in the Deer Valley submarket of Phoenix. In The Pipeline reported the acquisition of the land by Ryan Companies in August. The FBI's Phoenix regional headquarters will occupy the whole building at the southeast corner of 7th Street and Deer Valley Road, scheduled for delivery in March 2012. Ryan will own the building. GSA Leasing Contracting Officer Debbie Orkowski managed the procurement and awarded the lease. Jones Lang LaSalle professionals representing the government included Vice President Jessica Kokish, Senior Vice President Suzanne Drake, Managing Director Chris Roth and Vice President Dan Reidy. GSA’s lease portfolio contains over 8,000 properties totaling more than 184 million square feet. JLL has assisted the GSA in the award of more than 750 leases since 2005 and is currently assisting on over 600 lease procurements for federal civilian departments and agencies.

Charles Schwab buys 9 acres in Phoenix, could create 400 new jobs by Jan Buchholz October 12, 2010 Charles Schwab Corp. is buying a nine-acre parcel of land from the city of Phoenix that could help create 400 new jobs. The new land will be used to facilitate job growth at Schwab’s main location near 24th Street and Lincoln Drive, dubbed the Peak Campus. The financial services company is paying $2.06 million for the land, according to Phoenix economic development program manager Bruce MacTurk. The deal is expected to close in the spring and Schwab will use the land for surface parking. The new parking should be ready by third quarter 2011. “We are at our capacity for parking. We’re running shuttles from temporary locations,” said Schwab Chief Financial Office Joe Martinetto. Schwab has about 3,200 employees locally, making it one of the largest private employees in the Valley. The company intends to hire 200 employees by the end of the year and 400 more jobs in the next several years. About one-third of Schwab’s employees are located at a South Mountain campus near 48th Street and Baseline Road. The rest are at the 24th Street location. Schwab’s operations in Phoenix are its largest in the country. “We’ve found that Phoenix is a great place to fill jobs. It’s an educated, diverse work force. We’ve had great success there,” Martinetto said. Currently a Phoenix police precinct is located on the land Schwab will acquire. The city is building a new precinct nearby, which should be ready in February.

After the police move, the old precinct building will be razed and the sale will be consummated. The price of the land was based upon an independent appraisal, MacTurk said. He said it’s a good deal for everyone, and should create new jobs in Phoenix. “We’ve had a longstanding relationship with Schwab for some 18, 19 years,” MacTurk said. The company opened a service center in Phoenix in 1992. It purchased the Peak Campus in 1995. Read more: Charles Schwab buys 9 acres in Phoenix, could create 400 new jobs | Phoenix Business Journal

Universal Technical Institute moving HQ to Phoenix October 14, 2010 Phoenix-based Universal Technical Institute Inc. is moving its corporate headquarters to the MAX at Kierland, an office building at 16220 N. Scottsdale Road. The trade school had been based at 20410 N. 19th Ave. in North Phoenix. UTI has signed for 85,000 square feet to house its 425 employees. The length and value of the lease were not disclosed. UTI was represented by Jones Lang LaSalle in Phoenix. The landlord was represented by Trammel Crow Development and CB Richard Ellis in Phoenix. UTI (NYSE:UTI) has 11 campuses across the U.S. Read more: Universal Technical Institute moving HQ to Phoenix | Phoenix Business Journal

Weingarten pays $19M for Desert Village November 8, 2010 Weingarten Realty Investors paid $19 million for Desert Village, a 100,000-square-foot shopping center located at Pinnacle Peak and Pima roads in Scottsdale. The center is anchored by AJ’s Fine Foods. Houston-based Weingarten (NYSE:WRI), a real estate investment trust, owns 21 centers in Arizona and is looking for more properties. The Desert Village center was attractive because it serves an affluent neighborhood of 70,000 people with an average annual income of $157,000. The seller of the property was Peter Paulsen, a Phoenix developer. Read more: Weingarten pays $19M for Desert Village | Phoenix Business Journal

Oct. 22, 2010 Phoenix - A company formed by Buchanan Street Partners in Newport Beach, Calif. (Robert Brunswick, pres.) paid $7.8 million ($58.38 per foot) to purchase a 133,600-square-foot flex, office-industrial property at 14647 S. 50th Street in Phoenix. The seller was Bank of America, as successor by merger to LaSalle Bank as trustee for Bear Stearns Commercial Mortgage Securities Inc. Commercial Mortgage Pass-Through Certificates, Series 2001-TOP2. The deal was brokered by Bob Buckley, Tracy Cartledge and Steve Lindley of Cassidy Turley BRE Commercial in Phoenix. Records show BSP Mountain Vista LLC paid cash for the property, but Buchanan Street Partners borrowed $4.1 million from California Bank & Trust to make the purchase. The three-building project, called Mountain Vista Commerce Center, is 72 percent occupied. The leasing assignment has been awarded to Joe Porter, Pat Feeney, Dan Calihan, and Rusty Kennedy of CB Richard Ellis in Phoenix. At year-end 2000, a company formed by investors George Gagos and Diane Gagos in Modesto, Calif. paid $14.5 million ($108.53 per foot) to acquire Mountain Vista Commerce Center. The seller foreclosed on the property after the Gagos' company defaulted on a loan that was secured by the real estate. The loan was sold as a Commercial Mortgage Backed Security (CMBS). The privately-held Buchanan Street Partners, a subsidiary of The TCW Group Inc. (TCW) in Los Angeles, Calif., has $2 billion in assets located across the country under its management. Buchanan Street Partners manages commingled and separate account real estate funds on behalf of institutional and private investors. The company has an interest in several office and industrial properties in the Phoenix area. Bob Peterson, managing director at BSP, says the company is interested in buying additional office and industrial buildings in the Valley. While BSP is focused on buying office and industrial properties, Peterson says the company will also invest in multi-family and retail assets in the Phoenix area . . . likes deals priced between $7 million and $50 million. "We are definitely looking to grow our portfolio in the Phoenix market," says Peterson. In February 2008, a venture formed by Buchanan Street Partners paid $55.5 million ($107.50 per foot) to acquire a portfolio of 515,822 sq. ft. of flex industrial space in five projects

located in Tempe and Chandler. In January 2008, a fund managed by BSP paid $16.175 million ($241.46 per foot) to buy a 66,989-square-foot office building leased to Cold Stone Creamery at 9311 E. Via de Ventura in Scottsdale. A fund managed by BSP also owns a 110,768-square-foot office project in Tempe called Corporate Fountains. And the company is part of a venture that developed and owns a 161,000-square-foot medical office building in west Phoenix. Get more from Peterson at (949) 219-1587. Reach the Cassidy Turley agents at (602) 954-9000.

HOLUALOA PAYS $17 MILLION FOR 332 APARTMENTS IN SCOTTSDALE October 22, 2010 Scottsdale - A company formed by Holualoa Arizona Inc. in Tucson (Mike Kasser, principal) paid $17 million ($51,205 per unit) to acquire the 332-unit Cortesian apartments at 7749 E. Camelback Road in Scottsdale. The seller was Camelback Silo LLC, a company originally formed by the Hansen Family Trust in Oro Valley (Paul Clifton, trustee), and investor Jeffrey Jones in Scottsdale. The seller was represented by Mike Carlier of Carlier Co. in Tucson. Roger Karber of Karber Realty Advisors in Tucson worked on behalf of the buyer. The Holualoa entity acquired Cortesian with a $13.6 million Freddie Mac loan issued by Centerline Mortgage Partners. Cortesian was built in 1972. In May 2005, BREW reported the company formed by the Hansen Family Trust and Jones paying $28.1 million ($84,638 per unit) to buy Cortesian. At one time, the Hansen trust and Jones’s company planned to raze the apartment units and redevelop the 15-acre Cortesian site as a 288-unit condominium project. Those plans were shelved when the housing market collapsed, and the Hansen trust later took Jones out of the deal. Over the years, Holualoa has bought and sold many investment properties in the Tucson and Phoenix areas. Kasser says Holualoa is looking for additional apartment properties in the Tucson and Phoenix markets. The company wants value-added deals and will purchase older assets that may need some refurbishment. While Holualoa is focused on buying apartments, the company also has an interest in purchasing retail, office, industrial and hotel properties in Arizona and other markets in the southwestern U.S. In June, BREW reported another company formed by Holualoa paying $17.15 million to purchase 238 units within the Sonterra at Williams Center condominium project at 5400 E. Williams Boulevard in Tucson. In April, BREW reported Holualoa paying $11.4 million ($26,635 per unit) to buy the 428-unit Tanque Verde apartments at 7671 and 7685 E. Tanque Verde Road in Tucson.

Mountain Vista center sold for $7.8M October 25, 2010 Buchanan Street Partners, a Newport Beach, Calif., real estate investment firm, paid $7.8 million for Mountain Vista Commerce Center in Phoenix. The 133,600-square-foot multi-tenant flex space is located at 14647 S. 50th St. The seller was Berkadia Commercial Mortgage, servicer for a commercial mortgage backed securities pool. Berkadia, located in Horsham, Pa., was created late last year as joint entity owned by Berkshire Hathaway Inc. and Leucadia National Corp. Read more: Mountain Vista center sold for $7.8M | Phoenix Business Journal

Phoenix area sales rise for office, industrial buildings by J. Craig Anderson Oct. 20, 3020 The financial gridlock that has frozen Phoenix-area commercial-real-estate sales over the past three years has begun to break up, according to brokerage-firm executives. The boost in sales since Jan. 1 has been particularly noticeable among smaller industrial properties and apartment buildings, they said, but even office buildings and some retail properties have begun to change hands.

As of Sept. 30, about 110 Phoenix-area industrial properties had been sold in 2010, said Craig Henig, senior managing director at CB Richard Ellis in Phoenix. The total price of those assets was more than $241 million.

Twenty-seven multitenant office properties were sold during the first three quarters, for a total price of about $107 million, and 17 retail properties were sold, totaling almost $42 million.

That's a major change from a year earlier, when virtually no sales were occurring, Henig said.

The uptick is being driven primarily by an increase in commercial foreclosures, as more lenders seek to clear non-performing loans off their books, he added.

"They (foreclosures) are slowly coming to the marketplace - they are not flooding the marketplace," Henig said.

Real-estate firm TransWestern, in Phoenix, hired veteran office-tower broker Phil Marino recently in anticipation of a future high-rise sell-off that most area brokers said is inevitable.

"You're going to see a lot more (commercial) foreclosures in Phoenix," said Marino, senior vice president of investments.

Marino is former president of Intercon West Realty Advisors, which specialized in office towers. The firm folded when high-rise properties stopped selling in 2007.

He said financial pressure on high-rise owners has been mounting that likely will lead to debt restructuring, short sales and possibly foreclosures.

A number of large office properties built during the real-estate boom have short-term loans coming due in 2011 and 2012, he said.

Bob Mulhern, managing director of Colliers International in Phoenix, said that the majority of individual property sales still are below the $5 million mark and that the primary buyers have been business owners who want to own their own buildings.

Asking prices are still higher than what most investors are willing to pay, he said, but they have fallen within a reasonable range for owner-occupants.

"Users of those buildings can come in there and buy for cash," Mulhern said, adding that more expensive buildings generally require financing, which many lenders still are reluctant to provide.

Both optimism and impatience have prompted a number of market watchers to make purchases in recent months, said Don Mudd, managing director of commercial-realty firm Jones Lang LaSalle in Phoenix.

"We're 3 1/2 years into this cycle, and people think we're starting to come out of it," Mudd said.

7 Valley apartment properties are sold

Chinese investment firm pays $133.1 million

by J. Craig Anderson Oct. 19, 2010 Seven apartment communities abandoned in late 2008 by the California-based Bethany Group have been sold to a Chinese investment firm.

The $133.1 million sale is the largest commercial-real-estate deal in Arizona so far this year, according to the deal's brokers, of commercial-real-estate firm Hendricks & Partners in Phoenix.

The buyer was commercial-real-estate investment firm Standard Portfolios II LLC, a Delaware-based subsidiary of a Chinese investment firm.

Hendricks broker Ric Holway, who worked on the deal with colleague Mark Forrester for 14 months, said it was a complicated transaction that involved restructuring the original debt on the seven properties.

Recent changes in the rules for commercial-loan servicers have granted them the ability to roll over existing commercial-real-estate loans to new buyers, rather than requiring buyers to seek new financing in an environment where few loans are available.

The communities affected by the deal were part of a group of 13 properties that Bethany Group had owned and managed in the Phoenix area.

In August, a Maricopa County Superior Court judge ruled that Bethany Group could not thwart efforts to sell the properties initiated by Trigild of San Diego, the receiver appointed by the court to oversee the properties after Bethany Group's departure.

Such sales usually do not occur until after a property has been foreclosed on, but in this case waiting until after foreclosure would have cost Bethany Group's lender more than $50 million, Trigild President Bill Hoffman had argued in

August. Hoffman said that without the rollover option, only available before foreclosure, the highest bid for the properties would have been just $70 million.

In March 2009, the court placed Trigild in charge of managing seven of the 13 Bethany Group properties in Phoenix, Mesa, Chandler and Glendale when it became known that the company had cut off employee salaries and operational funding at all 60 of its apartment communities nationwide. As a result, many cut off services at the communities including trash pickup and landscaping.

The remaining six Valley properties were not involved in the dispute because they were purchased with financing from another source.

LaSalle Bank National Association, owned by Bank of America, is the trustee for a securitized commercial-mortgage loan that Bethany Group subsidiary Phoenix Kingdom I LLC used to purchase the seven apartment properties in question.

Read more: http://www.azcentral.com/business/realestate/articles/2010/10/18/20101018biz-bethanygroup1019.html#ixzz12vCajhLG

MORGAN STANLEY/McCARTHY COOK VENTURE PAYS $44.9 MILLION FOR PHOENIX OFFICE PROJECTS October 15, 2010 Phoenix � Joint venture companies formed by Morgan Stanley in New York City, N.Y. (NYSE:MS) and McCarthy Cook & Co. in Costa Mesa, Calif. (Thomas McCarthy, Edward Cook, co-presidents) paid $44.879 million to buy two office projects in Phoenix that total 526,880 sq. ft. The seller in two cash transactions was Teachers Insurance And Annuity Association of America (TIAA) in New York City, N.Y. The sales were negotiated through Barry Gabel and Mindy Korth of CB Richard Ellis in Phoenix, and Kevin Shannon, Ken White and Rob Hannan of CBRE in Torrance, Calif. MS MCC Highland LLC paid $27.25 million ($84 per foot) to buy the 324,375-square-foot 24th and Highland project at 4722 and 4742 N. 24th Street. The two-structure complex is 68 percent leased. The buildings, built in 1985, have three levels below grade and four stories above grade. MS MCC Park One LLC paid $17.379 million ($85.82 per foot) to purchase the 202,505-square-foot Park One office-retail project located at 2111, 2121 and 2141 E. Highland Avenue. That three-building complex is 74 percent leased. The development is comprised of four-story and two-story office structures and a single level restaurant building leased to Half Moon Sports Bar & Grill. The leasing assignment for both projects has been awarded to John Bonnell, Don Mudd, Jason Moore and Brett Abramson of Jones Lang LaSalle in Phoenix. The venture between Morgan Stanley and McCarthy Cook is the first for those two companies. In June 2006, BREW reported a venture formed by McCarthy Cook paying $105.55 million ($220.60 per foot) to acquire a 480,000-square-foot office building in Phoenix. The 24-structure, known as Viad Corporate Center, is at 1850 N. Central Avenue. That property is targeted in a foreclosure action. Dave Lapidus is the contact at McCarthy Cook . . . call him at (714) 913-6900. Talk to Gabel and Korth at (602) 735-5555. The CBRE agents in Torrance are at (310) 516-2300.

SENIOR RESOURCE GROUP ACQUIRES LAS SIENA HOUSING DEVELOPMENT FOR $25.9 MILLION October 8, 2010 Phoenix - SP II La Siena LLC, a company formed by Senior Resource Group in Solana Beach, Calif. (Michael Grust, pres.), paid just under $25.927 million ($136,456 per unit) to acquire the 190-unit La Siena senior housing community at 909 E. Northern Avenue in Phoenix. The seller was Northern-NVSL LLC, a company formed by M&I Marshall & Illsley Bank in Milwaukee, Wis. Records show the company formed by Senior Resource Group acquired the independent and assisted living facility with a $37.7 million loan from M&I. With the purchase of La Siena, Senior Resource Group now owns six senior living projects in Arizona. The company has another 10 senior communities in California, Florida and Oregon. La Siena, built in 2008, is comprised of one- and two-bedroom units. The 5.722-acre site of the project was formerly home to Bud Brown’s Barn, a longtime venue for Western theme events and parties. In April 2006, BREW reported a company formed by and Opus West Corp. in Phoenix paying $9.425 million to acquire the former Bud Brown’s Barn property and planning to develop La Siena. Opus West Corp. closed its doors this year after filing for bankruptcy protection and M&I foreclosed on the property. Find out more from representatives of Senior Resource Group at (858) 792-9300.

COLE REAL ESTATE PAYS $13 MILLION FOR TWO ALBERTSON’S STORES IN SALE/LEASEBACK DEAL October 8, 2010 Phoenix/Mesa - Companies formed by Cole Real Estate Investments in Phoenix (Chris Cole, principal) paid $13.067+ million to buy freestanding retail buildings in Phoenix and Mesa that are occupied by Albertson’s grocery. The seller in two cash sales was Albertson’s LLC in Boise, Idaho. The Valley stores are part of a $276 million deal that will result in Cole Real Estate Investments buying 33 retail buildings in five states. As part of a sale/leaseback agreement, Albertson’s will lease back the properties for 20 years. The supermarkets are located in Arizona, New Mexico, Colorado, Texas and Louisiana. In Phoenix, Cole paid just under $7 million ($123.54 per foot) to buy a 56,661-square-foot building at 18411 N. Cave Creek Road. That structure sits on a 4.6-acre parcel. And in Mesa, Cole paid just under $6.068 million ($117.68 per foot) to purchase a 51,562-square-foot grocery building occupied by Albertson’s at 1951 W. Baseline Road. That property encompasses 4.8 acres. Cole Real Estate Investments also acquired a 60,080-square-foot retail building from Albertson’s at 1350 N. Silverbell Road in Tucson. No word on the price Cole paid for that asset. The entire portfolio of Albertson’s stores is scheduled to close in October. Over the years, BREW has reported Cole buying and selling numerous commercial properties in the Phoenix area. Cole is a $6 billion, non-traded public REIT which focuses on long term, single tenant and multi-tenant retail investments. The company also buys single tenant office and industrial properties. Cole is looking for additional investment opportunities in the Valley and other markets across the U.S. The contact at Cole on the Albertson’s deal is Mark Manheimer . . . call him at (602) 778-8700.

BETHANY GROUP APARTMENT PORTFOLIO OF 2,759 UNITS SOLD IN $133 MILLION DEAL October 8, 2010 Phoenix area - A portfolio of seven valley apartment communities totaling 2,759 units that were owned by The Bethany Group in Irvine, Calif. have been sold in a $133.1 million transaction ($48,242 per unit). The buyer is Standard Phoenix Fund LLC in Arcadia, Calif. (David Liu, principal). Mark Forrester and Ric Holway of Hendricks & Partners in Phoenix brokered the sale. The assets were sold through the Maricopa County Superior Court and set a precedent for the first time in which a receiver was able to sell an asset prior to foreclosure without agreement from the borrower. Trigild of San Diego, Calif. served as receiver and assisted in disposing of the properties. Midland Loan Services in Overland Park, Kan. was the special servicer for the lender on the apartment communities, which were in a pool of commercial mortgage backed securities (CMBS). The beneficiary on the sale of the properties was Bank of America, as successor by merger to LaSalle Bank, as trustee for the registered holders of LB Commercial Mortgage Trust 2007-C3, Commercial Mortgage Pass-Through Certificates, Series 2007-C3. Records show the buyer acquired the Valley apartment properties with a downpayment of $10.1 million and by assuming a $123 million loan that was modified from an original principal amount of $164.5 million. The modification included the lender reducing the interest rate and extending the maturity date. Standard Phoenix Fund I, a private company with equity provided by Chinese investors, also contributed capital for operating and replacement reserves. Mark Osgood, who represents the Chinese investors in the U.S., did not return calls from BREW. Michael Genovese, an attorney with Grant, Genovese & Baratta in Irvine, Calif., worked on behalf of the buyer in the portfolio acquisition. Genovese could not be reached for comment. Sources say Standard Phoenix Fund will hold the properties for investment for five to seven years. MEB Management in Phoenix has been managing the multi-family communities and is expected to continue with that assignment. Companies formed

by The Bethany Group paid $215.4 million to acquire the Phoenix area projects in June 2007 as part of a portfolio of 12 Valley apartment projects totaling 5,178 units. Here are the apartment projects Standard Phoenix purchased in the Valley that were previously owned by The Bethany Group: Laguna Village, 460 units at 102 W. Palomino Drive in Chandler; Alante at the Islands, 320 units at 2222 N. McQueen Road in Chandler; Tela Verde, 196 units at 5020 W. Thunderbird Road in Phoenix; Whispering Meadows, 432 units at 1050 S. Longmore Street in Mesa; Sienna Springs, 395 units at 5120 N. 16th Street in Phoenix; Tuscany Palms, 582 units at 901 S. Country Club Drive in Mesa, and Crosswinds, 374 units at 868 S. Arizona Avenue in Chandler. Find out more from Osgood at (949) 310-1178. Reach Genovese at (949) 660-1600. Talk to Forrester and Holway at (602) 955-1122. Bill Hoffman is the contact at Trigild . . . call him at (858) 720-6700.

CENTRAL AVENUE OFFICE OCCUPIED BY VETERANS ADMINISTRATION SOLD FOR $20.3 MILLION October 15, 2010 Phoenix - Western States Office I LLC, a company formed by Willem Willemstein of Velocity US Properties Inc. in Sisters, Ore., paid $20.3 million ($212.44 per foot) to buy a 95,558-square-foot office building located at the southeast corner of Central Avenue and Osborn Road in Phoenix. The seller was Hamstra-Phoenix LLC in Wheatfield, Ind. (Greg Hamstra, pres.). The three-story office is leased to the Department of Veteran Affairs, also known as the Veterans Administration. The Hamstra Group was selected by the VA to develop the building through a request for proposal process. Construction began in June 2002, and completion followed a year later. The VA has a 20-year lease to occupy the Phoenix office structure, which is located at 3333 N. Central Avenue. The lease expires in 2023. Records show Western States Office I LLC acquired the VA building with a $15.1 million loan from Federal Funding Group LLC in New York City, N.Y. Willemstein, a Netherlands-based investor, has other holdings in the U.S. Willemstein and Chris van der Velde of Sisters, Ore. jointly own the Tetherow Golf Club in Bend, Ore. The Hamstra Group is a privately-held company which has built dozens of retail stores, restaurants and commercial buildings for national and regional corporations. Get more from van der Velde by calling (541) 388-2582. Eric Carlson of The Hamstra Group is at (219) 956-3111.

Scottsdale Office Trades for $2.8M Raintree Crossing Office Condo Sold in REO Transaction By David Whitmore October 6, 2010 MacLeod Investments 1, LLC purchased Building B of Raintree Crossing, a 37,462-square-foot office condo building in Scottsdale, AZ, for $2.825 million, or about $75 per square foot. The property was 21% occupied at the time of the REO sale and the buyer will reportedly try to sell the condo units individually or lease up the space. The two-story building at 8360 E. Raintree Drive, delivered in 2006. Ross Guttler of ROI Properties, LLC represented both the buyer and the seller, Sterling Savings Bank. Please see CoStar COMPs #1983283 for more information.

Sub-Zero pays $12.5M for Goodyear site BY Jan Buchholz October 7, 2010, 5:16pm MST Sub-Zero Wolf Inc., a Wisconsin manufacturer of high-end refrigerators, paid $12.5 million for a warehouse in Goodyear it is using to expand its Arizona operations. Also included in the deal is an option on an adjacent 30-acre parcel. The Madison, Wisc., company announced last month that it will make substantial improvements to the 440,000-square-foot Palm Valley 303 building, which will house 288 employees from an existing Phoenix plant as well as new hires. The city of Goodyear is providing incentives to Sub-Zero Wolf for hiring local residents, as well as other economic support. The Phoenix plant will remain open as Sub-Zero previously announced it will move jobs from Wisconsin that facility. The new Goodyear operation will manufacture two product lines previously built in Wisconsin, a wine cooler and its PRO48 model. In a recent press release, Sub-Zero Wolf Vice President of Human Resources Chuck Verri said, “The move of these production jobs and the service parts area is meant to make us more efficient and cost effective at producing the finest appliances without compromising quality.” Cassidy Turley represented Sub-Zero Wolf in the negotiations. CB Richard Ellis represented the seller Sunbelt Holdings in Scottsdale. Read more: Sub-Zero pays $12.5M for Goodyear site - Phoenix Business Journal

Shade Apartments at Desert Ridge sell for $43M October 5, 2010 The Shade Apartments at Desert Ridge have been sold for $43 million. The 342-unit complex is located at 21150 N. Tatum Blvd. in Phoenix. The purchaser was I&G Desert Ridge LLC in Chicago. The sellers were GGDR Land LLC and Geneva Green Dr. LLC, also in Chicago. The complex was built in 2006 on land leased by the State of Arizona Land Department and received several awards, including Multifamily Executive’s Property of the Month, the National Association of Home Builders Best Rental Community and the Pacific Coast Builders Conference Golden Nugget Award for Best Low-Rise Apartment Project. The property was 95 percent occupied at the time of sale.

SO. CALIF-BASED FIRM DROPS $30+ MILLION FOR TUCSON APARTMENT PORTFOLIO OF 1,347 UNITS October 1, 2010 Tucson – Companies formed by the Gaines Investment Trust in La Jolla, Calif. (Jeff Gaines, managing dir.) paid $30.4 million ($22,569 per unit) to purchase a portfolio of five apartment projects in Tucson totaling a combined 1,347 units. The sellers in five separate transactions were General Electric Credit Equities Inc. in Irvine, Calif. and an affiliated entity. Gaines Investment Trust was self represented in the acquisition. The purchases were financed by Wells Fargo Bank. With the portfolio deal with General Electric Credit Equities, the Gaines Investment Trust now owns 6,667 multi-family units in 24 properties located in Arizona, California, Nevada, Texas and Oklahoma. While the deal with General Electric Credit Equities marks the first investment in the Tucson market, the Gaines trust owns the 350-unit Ventana apartments at 14015 N. 94th Street in Scottsdale. The Gaines trust paid $26.5 million ($75,714 per unit) to buy Ventana at year-end, 2002. That was last purchase in the Valley for the Gaines trust, which has bought and sold one other multi-family project in the Phoenix area. Gaines says the privately-held trust is looking to acquire additional apartment properties in the Valley as well as Texas and the northwestern United States. “Phoenix is a very dynamic market,” says Gaines. “It obviously has higher highs and lower lows than a market like Tucson.” Here is a description, location and purchase price the Gaines trust paid for the Tucson assets: Pavilions at Pantano, 314 units built in 1984 at 8110 E. Speedway Boulevard, $9.006 million ($28,683 per unit); Sienna Ridge, 305 units built in 1978 at 5353 E. 22nd Street, $7.123 million ($23,356 per unit); Summit Ridge, 360 units built in 1974 at 1252 S. Craycroft Road, $6.657 million ($18,491 per unit); La Hacienda, 275 units built in 1984 located at 6161 E. Pima Street, $6.524 million ($23,725 per unit), and Verrano Park, 93 units built in 1984 located at 6850 E. Golf

Links Road, $1.089 million ($11.712 per unit). Morrison, Ekre & Bart Management Services Inc. in Tucson is managing the properties. In November 2006, BREW reported a venture formed by The Bascom Group in Irvine, Calif. (Derek Chen, Jerome Fink, David Kim, principals) paying a combined $49.852 million to purchase the Tucson apartment portfolio now owned by the Gaines trust. General Electric Credit Equities financed the purchases and foreclosed on the assets after The Bascom Group defaulted on loans secured by the multi-family properties. Learn more from Jeff Gaines at (858) 454-0322.

L.A. INVESTOR BOLSTERS VALLEY APARTMENT PORTFOLIO . . . PAYS $27 MILLION FOR 672 UNITS October 1, 2010 Phoenix – A company formed by Summit Equity Investments in Los Angeles, Calif. (Michael Thom, Ryan Lynch, Joseph Rosen, partners) paid $27 million ($40,178 per unit) to buy the 672-unit Autumn Ridge apartments at 1944 W. Thunderbird Road in Phoenix. The seller was General Electric Credit Equities Inc. in San Francisco, Calif. Trevor Koskovich, Bill Hahn and Jeff Sherman of Colliers International in Phoenix and Scott Eschelman of Preferred Capital Advisors in Los Angeles, Calif. represented the buyer. Summit Autumn Ridge LLC acquired the Phoenix rental community with a $17.55 million loan from Keycorp Real Estate Capital Markets Inc., an affiliate of Key Bank in Cleveland, Ohio. The loan, which is guaranteed by Freddie Mac, was arranged by Brandon Harrington of Cohen Financial in Phoenix. The seven-year loan has a 4.17 percent interest rate with the first two years at interest only. Greystar Management Services in Phoenix was serving as receiver on the property and has been hired to manage the project. Autumn Ridge was built in 1979 and was 91 percent leased at closing. In March 2009, BREW reported General Electric Credit filing for a trustee’s sale after the previous owner of Autumn Ridge defaulted on a $47.8 million loan that was secured by the apartments. The borrower on the loan was a company was formed by Atherton-Newport Investments LLC in Irvine, Calif. In November 2006, BREW reported Atherton-Newport paying $52.316 million ($77,851 per unit) to acquire Autumn Ridge. Lynch says Summit Equity Investments is looking for additional multi-family properties in the Phoenix area. In the past nine months, companies formed by Summit Equities have invested $32.95 million in buying three Valley apartment projects totaling a combined 1,036 units. In May, BREW reported Summit Equity paying $4.6 million ($16,912 per unit) to acquire the 272-unit Casa Caranza apartments at 1903 N. Country Club Drive in Mesa. At year-

end, Summit Equity paid $1.35 million ($14,674 per unit) to purchase the 92-unit Brittany Place apartments at 708 N. Country Club Drive in Mesa. Find out more from the principals of Summit Equity Investments at (310) 598-7070. Reach the Colliers agents at (602) 222-5000. Call Eschelman at (916) 669-4690.

CANADA-BASED ONNI GROUP PICKS UP SECOND MULTI-FAMILY PROJECT IN PHOENIX October 1, 2010 Phoenix – A company formed by the Onni Group of Cos. in Vancouver, B.C., Canada. (Rossano De Cotiis, Giulio De Cotiis, Morris De Cotiis, principals), paid $9.2 million ($35,937 per unit) to buy the 256-unit Bell Cove apartments at 17239 N. 19th Avenue in Phoenix. The seller was WE Uterque Holding Corp., a company formed by J.P. Morgan Chase Bank. The cash transaction was negotiated through Chuck LaBenz, Mark Forrester and Ric Holway of Hendricks & Partners in Phoenix. Bell Cove, formerly known as Spring Valley, was built in 1984. The property was 70 percent occupied at closing, with 52 of the units out of service. Onni Group plans to spend $5,000 to $10,000 per unit to renovate the shuttered apartments and make them available for lease. Riverstone Residential will manage the property. The purchase is the second in the Valley for the privately-held Onni Group of Cos. In August, BREW reported Onni Group entering the Valley market with the $20.5 million purchase ($47,454 per unit) of the 432-unit Montelano apartments at 8330 N. 19th Avenue in Phoenix. Onni Group of Cos. is looking for more investment opportunities in the Valley. Dan Bell of Onni Group says the company will buy A, B, or C quality product and wants to have at least 2,000 multi-family units in the Phoenix area. Onni Group of Cos. has been a home builder and investor in commercial, retail and industrial properties located primarily in western Canada, including British Columbia, Ontario, and Alberta. The company is in the process of expanding its investment markets to other areas in North America and Asia. In August 2006, BREW reported investors John Packard and Michael Stewart of Pacific Property Assets in Long Beach, Calif. paying $12 million ($46,875 per unit) to acquire Bell Cove (at that time called Spring Valley apartments). Chase Bank foreclosed on the property after Packard and Stewart defaulted on a loan secured by the apartment project. Get more from Bell at (604) 602-7711. The Hendricks & Partners agents are at (602) 955-1122.

Sun Crest Apartments Sells for $3.15M Multi Family Property in Phoenix Sells for $33,511 PerUnit By Matthew Kirchwehm October 1, 2010 The 94-unit property at 111 N. Mesa Drive in Mesa, AZ. sold for $3.15 million or about $35,511 per unit. The unit mix contained 41 2-bed/2 bath, 37 2-bed/1-bath, 15 1-bed/1 -bath, and one 3-bed/2-bath. The transaction was a short sale and the property at the time of sale was 65% occupied. Thomas McPherson of Sperry Van Ness represented the buyer, David Srdic of United Home Equities, LLP. Jim Kasten of Kasten Long Commercial Group represented the seller, Robert Beatty. For more information, please refer to Costar COMPs #1971207.

West Valley business park purchased October 1, 2010 A Phoenix company named 99th Ave./Van Buren Partners LLC has purchased a business park in the West Valley for $1.7 million. The 99th Avenue Business Park at 9950 W. Van Buren St. in Avondale was built in 2007. At the time of sale, the two-building, 79,150-square-foot business park was 5 percent leased. The seller was Meridian Land Holdings LLC in Scottsdale. CB Richard Ellis in Phoenix announced the sale, having represented the seller. There is no mention of a buyer representative. Read more: West Valley business park purchased - Phoenix Business Journal

Connell Real Estate buying Ten Wine Lofts for $19.5M Jan Buchholz October 1, 2010 Ten Wine Lofts, an unfinished luxury condo development in Scottsdale, will have a new owner. Connell Real Estate & Development of Berkeley Heights, N.J., has agreed to pay $19.5 million — about 50 percent of the amount of the original construction loan. The deal is scheduled to close on or around Oct. 15, according to Mark Winkleman, chief operating officer of ML Manager LLC, which is handling the deal. The project has been sitting empty for more than two years on Osborn Road just west of Scottsdale Road. It was developed by the now-defunct Grace Communities with a $40 million loan obtained from local commercial lender Mortgages Ltd. Mortgages Ltd. was renamed ML Manager upon emerging from Chapter 11 bankruptcy reorganization last year. Winkleman said despite the discount, he is satisfied with the deal, which was approved by U.S. Bankruptcy Court on Sept. 18. “We were very pleased with the price. This will be one of our best deals,” Winkleman said. There were 35 legitimate offers for the four-story property, which Winkleman attributed to aggressive marketing by Mark Forrester, a partner in Hendricks & Partners. The project is about 95 percent complete. On its website, Connell says it is looking to diversify its portfolio outside New Jersey.

In another deal, ML Manager closed on a property once called Belleview/City Lofts, near Loop 202 and 44th Street in Phoenix. Endres LLC of Hastings, Minn., paid $1.9 million — a deeply discounted price. The sale was finalized Sept. 28. Originally, local real estate developer Michael Peloquin obtained an $11 million loan to purchase a 42-unit apartment complex with an adjacent 2.6 acres of vacant land. When Peloquin defaulted on the note, ML Manager took back the property. Forrester also marketed that property for ML Manager. The company has been moving quickly with several major sales recently. Cleveland-based developer Zaremba Group purchased the two-tower Centerpoint project in downtown Tempe in early September for $30 million — far less than the $135 million in loans taken out by the original developer, Avenue Communities. Zaremba has built a few Valley multihousing projects, but most of its work has been in Ohio and east of the Mississippi River. Winkleman said it is interesting that most of the completed deals for broken Mortgages Ltd.-financed projects have involved out-of-state investors. La Crosse, Wis.-based MSI West Investments LLC purchased the partially finished Chateaux on Central luxury brownstone in March with a winning bid of $7 million. That project had $37 million in Mortgage Ltd. loans but was not close to being finished when the developer, Central PHX Partners LLC, turned over the keys. It had been sitting empty for more than three years. MSI West is actively completing construction on the opulent project at the corner of Central Avenue and Palm Lane. All of the Mortgages Ltd. deals have been deeply discounted, a reflection of the overvalued purchase prices and construction costs that led to the real estate and economic crash in 2008. Winkleman has said he’s grateful to get as much as he can for Mortgages Ltd. investors, many of them local individuals who had invested with the company for years.

Phoenix Commercial Real

Estate Deals & More

September 2010 Edition

Victor Allison

Your Phoenix Commercial Real Estate Brokerage

Specialist

602.320.6200

Selected, recent newswire articles for the metro Phoenix area dedicated to ensuring you are always on top of all the latest news and trends that may

affect your property values and that will assist you in your real estate decision–making processes.

www.praedium-advisors.com

Victor’s Insider Scoop on the antithesis of: “Money is the root of all evil” … I’m reading a book that I have been planning to read for a long time. In fact, I bought the book well over a year ago and let it languish on my bookshelf since it’s a tome of almost 1200 pages. Originally published in the late 1950s, its premise is as relevant in today’s political climate as it was when written.

I’ll finish with a quote from a monologue taken from this book. Anyone who responds to me at victora@praedium-advisors.com and correctly identifies the book and speaker will receive a free copy of PRAEDIUM Advisors soon-to-be-published Phoenix Area Apartment Book (valued at $249.97) that contains multi-family market data you won’t find in one convenient reference source anywhere else.

Here’s the beginning of the Money Speech:

“So you think that money is the root of all evil?” said [name redacted]. “Have you ever asked what is the root of money? Money is a tool of exchange, which can’t exist unless there are goods produced and men are able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers,

who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce. Is this what you consider evil?

“When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others. It is not the moochers or the looters who give value to money. Not an ocean of tears nor all the guns in the world can transform those pieces of paper in your wallet into the bread you will need to survive tomorrow. Those pieces of paper, which should have been gold, are a token of honor—your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money. Is this what you consider evil?

“Have you ever looked for the root of production? Take a look at an electric generator and dare tell yourself that it was created by the muscular effort of unthinking brutes. Try to grow a seed of wheat without the knowledge left to you by men who had to discover it for the first time. Try to obtain your food by means of nothing but physical motions—and you’ll learn that man’s mind is the root of all the goods produced and of all the wealth that has ever existed on earth.

“But you say that money is made by the strong at the expense of the weak? What strength do you mean? It is not the strength of guns or muscles. Wealth is the product of man’s capacity to think. Then is money made by the man who invents a motor at the expense of those who did not invent it? Is money made by the intelligent at the expense of the fools? By the able at the expense of the incompetent? By the ambitious at the expense of the lazy? Money is made—before it can be looted or mooched—made by the effort of every honest man, each to the extent of his ability. An honest man is one who knows that he can’t consume more than he has produced.

Dedicated To Multiplying Your Income

PS – If you are not getting the results you deserve from your antiquated brokers give me a call at 602-320-6200. I have many innovative ideas I can implement to increase your bottom line!

Summit Equity pays $27M for 672-unit Autumn Ridge BY Jan Buchholz September 29, 2010 Summit Equity Investments Inc., a Los Angeles real estate firm, paid $27 million for the 672-unit Autumn Ridge apartment complex at 1944 Thunderbird Road in Phoenix. The seller was ANF Autumn Ridge LLC, an Irvine, Calif., firm, according to records at the Maricopa County Recorders Office. That company paid $52.3 million for the property in November 2006. The sale is the largest transaction this year based on the number of units, according to brokers at Colliers International-Greater Phoenix, which handled both sides of the transaction with assistance on the buyer's side from Preferred Capital Advisors in Los Angeles. The apartments were built in 1979. There are 75 buildings on 31 acres. The property was 91 percent occupied at the time of closing. “Autumn Ridge is a well-leased multi-family community in an improving market,” said Ryan Lynch, co-CEO of Summit, in a news release. “SEI is currently reviewing other similar properties for acquisition throughout the western United States and expect to make similar acquisitions in the coming months.” Read more: Summit Equity pays $27M for 672-unit Autumn Ridge - Phoenix Business Journal

LASALLE INVESTMENT MANAGEMENT DROPS $42.525 MILLION FOR 342 APARTMENTS IN PHOENIX September 24, 2010 Phoenix – I&G Desert Ridge LLC, a company formed by LaSalle Investment Management in Chicago, Ill. (Lynn Thurber, chairman), paid $42.525 million ($124,342 per unit) to purchase the 342-unit Shade at Desert Ridge apartments at 21150 N. Tatum Boulevard in Phoenix. The seller was GGDR Land LLC and Geneva Green Dr LLC. Both of those companies are controlled by Greenfield Partners LLC in South Norwalk, Conn. (Eugene Gorab, pres). The cash transaction was brokered by Tyler Anderson and Sean Cunningham of CB Richard Ellis in Phoenix. Mark-Taylor Residential in Scottsdale is managing Shade at Desert Ridge, which was built in 2006. Shade at Desert Ridge was developed by a joint venture formed by Greenfield Partners and Randy Paul of Geneva Holdings in Phoenix. Over the years, BREW has reported companies formed by LaSalle Investment Management buying and selling office properties in the Phoenix area. Sources say the company is interested in acquiring more multi-family and office properties in the Valley. With $40.2 billion in assets under its management, LaSalle Investment Management is one of the world’s largest real estate investment managers. The company’s clients include public and private pension funds, insurance companies, governments, endowments and private investors. Christine Akins is the contact at LaSalle Investment Management . . . reach her at (312) 782-5800. Talk to Jeff Usas of Greenfield Partners at (312) 932-0882. The CBRE agents are at (602) 735-5555

Suntree Purchases Phoenix Industrial for $4.5M Food Manufacturer Acquires Asset from NutraCea By David Whitmore September 24, 2010 Suntree LLC, purchased the industrial building at 4052 W. Monterosa St. in Phoenix for $4.5 million, or $36 per square foot. Suntree, a food manufacturer, will occupy the property. NutraPhoenix LLC, a wholly owned subsidiary of NutraCea, a manufacturer of stabilized rice bran products, disposed of the property as part of its efforts to exit bankruptcy. The 124,394-square-foot manufacturing building delivered in 2000 and features 3,000 amps, six loading docks and two drive-in bays. It is on 8.5 acres. David Johnson of Lee & Associates represented NutraCea. Randy Shell of Shell Commercial represented Suntree. Please reference CoStar COMPS #1977013 for more information.

Aspen Valley Bread Co. Bakery buys Mesa building for $3M Mesa-based Aspen Valley Bread Co. Bakery has purchased a 61,200-square-foot industrial building at 300 W. Southern Ave. in Mesa for $3 million. Aspen bakes specialty bread products without added fats, processed sugars, artificial flavors, dairy products or preservatives. The company has a 17,000-square-foot building down the street and is expected to occupy its new facility in early 2011, according to sources at CB Richard Ellis, who announced the deal. No word if the bakery is moving its operations to the new building, or adding to its current space. CBRE in Phoenix represented Aspen Valley. The seller, Ol-Lonely Enterprises Inc. of Paradise Valley, was represented by Diamond Pacific Investments in Phoenix. Read more: Aspen Valley Bread Co. Bakery buys Mesa building for $3M - Phoenix Business Journal

NEWLY-FORMED INVESTMENT FIRM FROM SO. CALIF. BUYS PHOENIX OFFICE PROJECT . . . WANTS MORE September 24, 2010 Phoenix – CJK 5090 LLC, formed by CJK Investments in Newport Beach, Calif. (Steven Craig, Steve Jarecki, David Kray and Jan Tatala, principals), paid $13.25 million ($75.63 per foot) to acquire a 175,186-square-foot office building at 5090 N. 40th Street in Phoenix. The seller was Transwestern 5090 North 40th Street LLC, a company formed by Transwestern Investment Co. in Chicago, Ill. (Robert Duncan, Chairman). The cash sale was brokered by Bill Palmer of The Palmer Team in Sacramento, Calif. The four-story building, which is 21 percent occupied, was sold through a short sale. Bank of America is the beneficiary of the funds from the sale. BofA issued a loan to the previous owner of the office project. Jim Fijan and Jerry Roberts of CB Richard Ellis in Phoenix have the leasing assignment. CBRE is also managing the property. The investment is the first in the Valley and the first overall for the newly-formed CJK Investments. The privately-held real estate investment firm is looking for additional office properties in the Phoenix area as well as industrial, retail and multi-family assets in the Valley and other markets in the western United States. Jarecki, Kray and Tatala previously worked together at KBS Realty Advisors, a real estate investment company located in Newport Beach. Craig’s company, Craig Realty Group in Newport Beach, owns, operates and manages nearly 4.3 million sq. ft. of retail space in six states. One of those properties is the Outlets at Anthem in north Phoenix. The price CJK Investments paid for the 40th Street office in Phoenix is $20+ million less than the amount Transwestern Investment Co. paid for the asset. In October 2005, BREW reported Transwestern Investment paying $34 million ($194 per foot) to buy the 40th Street building in a portfolio sale. That $64.25 million deal included three office properties in Phoenix

and Tucson totaling 440,403 sq. ft. Transwestern still owns the other properties. Last week, BREW reported Transwestern facing foreclosure on a 337,450-square-foot office project on Camelback Road called Anchor Centre. That property is comprised of a 6-story, 200,576-square-foot structure at 2201 E. Camelback Road and a 4-story, 136,874-square-foot building at 2231 E. Camelback Road. The two-building complex is collateral on an original loan amount of $73.83 million that is in default. Bank of America, as successor by merger to LaSalle Bank, is the beneficiary on the loan. The lender has filed a notice of trustee’s sale to sell the property at public auction on Dec. 8. In the meantime, Transwestern has hired Chris Toci and Jerry Jacobs of Cushman & Wakefield of Arizona Inc. in Phoenix to try and sell Anchor Centre. In February 2008, BREW reported Transwestern Investment paying $96 million ($284.49 per foot) to acquire Anchor Centre. Transwestern also owns 432,592 sq. ft. of office space in the One Gateway, Two Gateway and Three Gateway buildings at 44th and Van Buren streets in Phoenix. No word on the disposition of those assets. Jarecki is the contact at CJK Investments . . . (949) 224-4175. Tim McChesney is the contact at Transwestern . . . talk to him at (312) 499-1900. Reach Palmer at (916) 446-8274.

Goodwill Leases 35,000 SF in Mesa Nonprofit Inks 6-Year Deal By Brett Wyatt September 23, 2010 Goodwill signed a six-year lease for 34,960 square feet at 2070 S Power Road in Mesa, AZ. The nonprofit organization will take occupancy on January 1. The space, formerly occupied by Albertsons, is in a 133,931-square-foot shopping center located at the Southwest corner of Baseline and Power Road. Michael Clark of Red Development represented the landlord, while Andy Kroot of Velocity Retail Group LLC represented the tenant.

FOOD PACKAGING/PROCESSING COMPANY MOVING OPERATIONS FROM CALIFORNIA TO PHOENIX September 24, 2010 Phoenix – SunTree LLC in Scottsdale (David Turner, principal) plans to relocate a food packaging and processing operation from Orosi, Calif. to a newly-acquired property in Phoenix. David Turner International LLC paid $4.5 million ($36.18 per foot) to buy a 124,394-square-foot manufacturing facility located at 4502 W. Monterosa Street in Phoenix. The seller was NutraPhoenix LLC in Scottsdale. Dave Johnson of Lee & Associates Arizona Inc. in Phoenix represented the seller. Randy Shell of Shell Commercial in Scottsdale worked on behalf of the buyer. Turners’ company acquired the Monterosa property with $4.05 million SBA loan issued by Bank of America. SunTree will relocate from central Calif. to the project in Phoenix, which is located north of Indian School Road within the Sante Fe Business Center. The fully air-conditioned building, with 8,000 sq. ft. of office space, sits on a 8.54-acre site. The project previously was occupied by NutraCea, which was sold after the company filed for bankruptcy protection. SunTree is expected to have 80 employees at the Monterosa plant. SunTree intends to occupy the Monterosa building early next year. The company is involved in the manufacturing, processing and packaging of raw and natural foods, roasted and salted nuts, trail mixes, dried fruits and confections. SunTree also owns the licensing for Welch’s dried fruit products. The company markets its own brand and assists other companies with private label processing and distribution. Turner is also the owner of Southwest Commodities, a vertically-integrated firm that imports and exports nuts and dried fruits. That business is located in leased office space within the Perimeter Center business park in Scottsdale. That operation will remain at that location. Get more from Turner at (480) 824-1056. Johnson is at (602) 956-7777. Call Shell at (480) 443-3992.

Geyser 43P picks up retail centers for $1.8M September 22, 2010 Geyser 43P LLC has purchased two retail centers in Phoenix from the Bank of Oklahoma for $1.88 million. One of the centers, located at 10240 N. 43rd Ave. in Glendale, is anchored by a Target and had just two tenants at closing with 39 percent occupancy. The second smaller property, at 10738 N. 75th Ave., had 31 percent of its 20,832 square feet of space occupied with three tenants. On the same day, Geyser turned that property in a $1.01 million sale to the David McHenry Family Trust. Geyser is based in Phoenix and owned by Jeff and Russell Geyser. Andrew Harrison of Harrison Commercial LLC represented Geyser 43P LLC and Mike Buekers of MPB Realty Services represented the trust. Read more: Geyser 43P picks up retail centers for $1.8M - Phoenix Business Journal

Fan Grabber Sportswear Acquires Facility for $1.1M Tempe Decorator Center Sells Industrial Bldg. By Dinh Nguyen September 22, 2010 Fan Grabber Sportswear purchased the industrial building at 125 W Julie Drive in Tempe, AZ, from Tempe Decorator Center for $1.1 million, or about $60 per square foot. The 18,427-square-foot facility was constructed in 2004 in the Tempe Southwest Industrial submarket. It was 100% vacant at the time of the sale. Stein Koss of Lee & Associates represented the seller, while Evan Koplan and Mike Parker of Colliers International represented the buyer. Please see CoStar COMPS #1973638 for more information on this transaction.

Shoppes at Indigo Trails Sells at $2.1M Phoenix Triple-Net Retail Center Changes Hands By Shane Beyer September 22, 2010 The Tohono Oldham Tribe has purchased the Shoppes at Indigo Trails at 21258 E Rittenhouse Road in Queen Creek, AZ, from Armstrong Development Properties for $2.15 million, or about $170 per square foot. The multitenant, 12,500-square-foot retail center was constructed in 2007. It was 90% leased to four tenants on a triple-net basis at the time of sale. Jamie Medress and Mark Ruble of Marcus & Millichap represented the seller, while Sandra Alter of Grubb & Ellis represented the buyer. Please see CoStar COMPS #1975492 for more information on this transaction.

AUSTRIA-BASED INVESTOR BUYS 147 ACRES IN BUCKEYE ONCE PLANNED FOR 500 HOMES September 17, 2010 Buckeye – Grandilla (Arizona) Inc. and Foot Creek Corp. of Arizona, both companies formed by the Lippert family of Austria (Stephanie Lippert, et al., members) paid just over $1.336 million to acquire 147 acres located just west of the northwest corner of Perryville and Broadway roads in Buckeye. The seller was Arizona Illinois REO Trust, a company formed by Midwest Bank & Trust Co. in Des Plaines, Ill., and M&I Marshall & Ilsley Bank in Milwaukee, Wis. The cash transaction was brokered through Ryan Semro, Bret Rinehart and Ben Heglie of Lee & Associates Arizona Inc. in Phoenix. The parcel is part of a 282-acre tract once planned for a 1,017-lot residential community called Homestead. The Midwest Bank/M&I company foreclosed on the property from the previous owner, a company formed by Montalbano Homes of Arizona Inc. in Oakbrook Terrace, Ill. The builder planned to construct 500+ residences on the land before losing the property to foreclosure. The Lee & Associates agents will market the parcel for the Lippert family once the housing market rebounds. Get more from the Lee & Associates agents at (602) 956-7777.

Matson Leases 22,808 SF at Phoenix Gateway September 16, 2010 ET PHOENIX-An international shipping firm, Matson Navigation Co. Inc. is relocating to Phoenix Gateway Center. Matson has inked a lease deal for 22,808 square feet of space located in the 44th Street/Gateway corridor. The firm paid more than $3 million for the place.

Phoenix Gateway Center, owned by Transwestern, has three buildings of Class A. Jim Achen Jr. and Bill Zurek of Transwestern represented Gateway and Jones Lang LaSalle Americas Inc.'s Pat Williams represented Matson in the transaction.

Three Phoenix Multifamily Properties Trade for $3.3M Colliers Internation Handles Multiple Deals By Yvonne Pacheco September 9, 2010 The Colliers International team of Bill Hahn, Jeff Sherman, and Trevor Koskovich recently handled three Phoenix multifamily transactions with a total value of $3.3 million. DMG Property Holdings LLC purchased Desert Crest, a 66-unit multifamily from JP Morgan Chase Bank for $1.55 million, or about $23,500 per unit. The 54,720-square-foot building at 6141 North 59th Ave was constructed in 1985 in Glendale. Hahn, Sherman, and Koskovich represented the buyer. Tempe Holdings LLC purchased Sago Gardens, a 33-unit multifamily building from United Western Bank of Denver, Co. for $1.25 million, or about $37,900 per unit. The 26,400-square-foot building at 1015 South Stanley Place was constructed in 1963 in Tempe. Hahn, Sherman, and Koskovich represented the seller and buyer. La Colonia Apartments LLC purchased Celebrity Apartments, a 33-unit multifamily building through a short sale from private investors for $500,000 or about $12,200 per unit. The 28,700-square-foot building at 3044 East Filmore St. was constructed in 1986 in Phoenix. Hahn, Sherman, and Koskovich represented the seller and buyer. Please see CoStar COMPS #1970944 and #1962299 for more information on this transaction.

VAN TUYL ADDS TO AUTOMOTIVE HOLDINGS WITH PURCHASE OF SUNSET FORD IN PEORIA September 10, 2010 Phoenix – A company formed by Valley businessman Larry Van Tuyl paid $10 million in cash to purchase 7.6 acres and roughly 43,000 sq. ft. of automotive buildings that comprise the former Sunset Ford dealership at 9130 W. Bell Road in Peoria. The seller was DCC Investments LLC in Glendale (Lee Dans Callans, Jr., Charlotte Aiken Callans, principals). The purchase of the real estate was in conjunction with a deal in which Van Tuyl acquired the Sunset Ford business. No word on the terms of that acquisition. Van Tuyl, owner of 19 automobile dealerships in the Valley and 69 across the country, will operate the newly-acquired dealership as Peoria Ford. Over the years, BREW has reported Van Tuyl investing hundreds of millions of dollars in buying real estate in the Phoenix area. The Phoenix-based businessman is looking for more investment opportunities in the Valley . . . that includes car dealerships, as well as land and income-producing properties. In December 2008, BREW reported Van Tuyl paying $10. 5 million in cash to buy 7.25 acres and roughly 48,000 sq. ft. of automotive buildings within the former Ed Moses Dodge dealership located at 7801 E. Frank Lloyd Wright Boulevard in Scottsdale. Van Tuyl later merged his nearby Airpark Chrysler Jeep dealership to the Ed Moses Dodge location. The new operation is called Airpark Dodge Chrysler Jeep. In October 2008, BREW reported Van Tuyl paying $6.25 million to buy 11 acres and 25,000 sq. ft. of automotive buildings within the Bell Honda dealership at 7th Avene and Bell Road in Phoenix. Mike Pacheco is the contact for Van Tuyl . . . reach him at (602) 230-1051.

SO. CALIF. INVESTOR RETURNS TO VALLEY MARKET AFTER REPRIEVE . . . BUYS 320 APARTMENT UNITS September 10, 2010 Mesa – A company formed by BH Management Inc. in Los Angeles, Calif. (Steve Gozini, principal) paid $5.5 million ($17,187 per unit) to buy the 320-unit Fiesta Park apartments at 1033 S. Longmore Street in Mesa. The seller was Fiesta Park LLC in Downey, Calif. (Angel Ramos, principal). The cash deal, which was a short sale, was brokered by Tom Papoulias of NAI Capital in Commerce, Calif. The proceeds of the sale went to CitiBank. In November 2005, BREW reported Ramos paying $15.56 million ($48,625 per unit) to purchase Fiesta Park, which was built in 1979. BH Management intends to spend about $1.5 million to refurbish the property. The rental community, which is comprised of one- and two-bedroom units, was about 50 percent occupied at closing. MEB Management Services has been hired to manage Fiesta Park. Although the buyer paid cash for the Mesa complex, Steve Jaffe of BH Management says the company likely will put a loan against the asset down the road. The privately-held BH Management owns more than 80 properties in 17 states. According to the company website, its portfolio includes multi-family, retail, office and industrial properties totaling more than 8 million sq. ft. Jaffe says the company is looking to purchase additional apartment properties in the Phoenix area, as well as retail. The company likes value-added deals and can close quickly on the acquisitions. BH Management plans to hold Fiesta Park for the long term. “We are hopeful that we will find other properties (in the Valley) that will compliment this,” says Jaffe of the Fiesta Park investment. The real estate purchase is the first for BH Management in the U.S. in more than two years, and the first multi-family investment for the company in the Phoenix area in almost 20 years. BH Management acquired a former Wal-Mart

store in Mesa in 2002. That 88,878-square-foot retail property is located at 10603 E. Main Street, and is being marketed for sale. Find out more from Jaffe and Bob Drury of BH Management by calling (310) 820-8888. Talk to Papoulias at (323) 201-3604.

RICHMOND AMERICAN PAYS $2.375 MILLION FOR 65 LOTS AT SAVANNAH SUBDIVISION ON WEST SIDE September 10, 2010 Maricopa County – Richmond American Homes of Arizona Inc. in Phoenix (Todd Demarets, div. pres.) paid $2.375 million to acquire 65 finished lots within the Savannah subdivision located north of the northeast corner of Perryville and Camelback roads in Maricopa County. The seller was EHJP Property Holdings LLC, a company formed by JP Morgan Chase Bank in Phoenix. The cash deal was brokered through Greg Vogel, Jill Lewis, and Harry Lourimore of Land Advisors Organization in Scottsdale. The home sites average 13,775 sq. ft. (95x145). Jack Gallagher, dir. of land acquisitions at Richmond American, says the company intends to build homes ranging from 1,800 sq. ft. to 2,700 sq. ft. The three-, four- and five-bedroom units are expected to be priced from the mid-$100,000's to the high $100,000's. Models scheduled to open by early 2011. Build out projected to take two years. Richmond American Homes of Arizona is a subsidiary of Denver-based MDC Corp. (NYSE:MDC). The parent firm provides financing. Element Homes in Phoenix started the subdivision at Savannah and JP Morgan Chase foreclosed on the land. The Savannah property is one of seven projects in the Valley that Element Homes had financed through JP Morgan Chase Bank, and were later foreclosed. The 695 finished and partially developed lots have now all been sold through the Land Advisors Organization agents. Over the past 18 months, Richmond American has acquired land in the Valley for 14 new subdivisions. Gallagher says the company is looking for additional parcels in the Phoenix area to develop residential projects. In April, BREW reported Richmond American paying $8.96 million to acquire 112 finished lots within the Morrison Ranch community in Gilbert. That project is located at the southwest corner of Recker Road and Morrison Ranch Parkway. In March, BREW reported Richmond American planning to build 95 residences within the Verrado community in Buckeye. Those finished lots are located along both sides of Verrado Way and

about one mile north of Interstate 10. Learn more from Gallagher and Demarets at (602) 956-4100. Talk to Vogel, Lewis and Lourimore of Land Advisors Organization at (480) 483-8100.

Global Sports Holdings Pays $2.8M for Phoenix Warehouse RREEF Sells 43,100-SF Industrial Building By Shane Beyer September 8, 2010 Global Sports Holdings LLC purchased the facility at 9100 S. McKemy St. in Tempe, AZ, from RREEF for $2.8 million, or $65 per square foot. The 43,100-square-foot warehouse was constructed in 1996 near the Tempe Sports Complex. The buyer plans to build out the industrial facility for youth volleyball and basketball training. Mark Detmer, Bo Mills and Will Strong of Cushman & Wakefield represented the seller, while Marc Pierce of Lee & Associates represented the buyer. Please see CoStar COMPS #1966059 for more information on this transaction.

Algae fuel company leases 15,000SF Heliae Development LLC has signed a 60-month lease at the 202 Business Park in Gilbert. Heliae is a spinoff company that started as part of the algae-based technology program at Arizona State University’s Polytechnic campus in Mesa. The company is developing a technically viable process to produce aviation fuel from algae. The lease transaction for 15,070 square feet was announced by Cushman & Wakefield of Arizona, which represented the landlord, Mountain West Industrial Properties in Greenwood Village, Colo. Heliae was represented by CB Richard Ellis in Phoenix. The 202 Business Park at 614 E. Germann Road is a 269,000-square-feet, 11-building complex, which sits on 27 acres. The property is now 60 percent leased. The Heliae deal is the 13th transaction at the business park in the past 18 months, according to Cushman & Wakefield officials. Read more: Algae fuel company leases 15,000SF - Phoenix Business Journal

NEW YORK CITY-BASED INVESTOR ADDS TO VALLEY HOLDINGS . . . BUYS 51 LOTS IN PHOENIX September 3, 2010 Phoenix – A company formed by Lexin Capital in New York City, N.Y. (Metin Negrin, principal) paid $1.402 million to acquire 51 finished lots within the Veneto subdivision near 19th Avenue and Baseline Road in Phoenix. The seller was Iota Vine LLC, a company formed by AmTrust Bank in Scottsdale, which is now controlled by the FDIC (Federal Deposit Insurance Corp.). The cash transaction was brokered by Grant Helgeson, Don McCaul and Ryan Arp of Westland Properties Group in Scottsdale. The home sites average 7,500 sq. ft. (65x125). With the purchase of the lots within the gated Veneto project, companies formed by Lexin Capital have now acquired 281 home sites in six subdivisions located in Phoenix and Prescott Valley. The privately-held company is interested in buying more finished and partially finished lots in the Valley. Lexin Capital owns apartment, office and mixed-use properties in Florida and Maryland. The company also has an interest in a Florida housing development and real estate investments in France and Mexico. In June, BREW reported companies formed by Lexin Capital acquiring 230 lots in five subdivisions located in Prescott Valley and Phoenix. Learn more from Negrin at (212) 750-3500. Reach the Westland Property agents at (480) 443-8570.

Matson Leases 22,808 SF at Phoenix Gateway September 16, 2010 PHOENIX-An international shipping firm, Matson Navigation Co. Inc. is relocating to Phoenix Gateway Center. Matson has inked a lease deal for 22,808 square feet of space located in the 44th Street/Gateway corridor. The firm paid more than $3 million for the place.

Phoenix Gateway Center, owned by Transwestern, has three buildings of Class A. Jim Achen Jr. and Bill Zurek of Transwestern represented Gateway and Jones Lang LaSalle Americas Inc.'s Pat Williams represented Matson in the transaction.

Ohio developer buys Centerpoint for $30M, plans to finish by summer 2011 BY Jan Buchholz September 3, 2010 The unfinished Centerpoint high-rise project in downtown Tempe has been sold to Cleveland-based Zaremba Group. The company will finish the two residential towers and retail space by summer 2011. Zaremba paid $30 million, according to ML Manager Chief Operating Officer Mark Winkleman, adding Zaremba was willing to pay the most and had the best chance of success. "We will immediately start construction (after closing) and a lot of mobilization will take place between now and then," said Kent Chantung, Zaremba's director of development in the Scottsdale office. Zaremba is a large privately held real estate company based in Cleveland with offices around the U.S., including Arizona. Chantung said the luxury urban units would be rented out rather than sold as the original developers had envisioned. "We will market predominantly to students and upper classmen and anybody else who wants to live in a great environment like Tempe," Chantung said. Winkleman made the announcement Thursday afternoon. "We had a huge amount of interest — about 300 companies across the U.S.,

Canada and England," he said. "Certainly price (was a consideration), but we looked at the company's ability to close without any contingency and who was qualified to finish the project." Zaremba has had a Scottsdale office for about four years and has been active in the market for six, Chantung said. The company has built luxury rentals in Mesa and Peoria. Zaremba also built the Barolo Place luxury condos in Scottsdale near Shea Boulevard and Scottsdale Road. The timing was just right for getting involved in the Centerpoint project, Chantung said. Summit Builders in Phoenix has been named the local contractor who will work in tandem with Zaremba's in-house staff. Chantung said the retail and one of the towers will be finished by March with the second tower completed in time for ASU's fall semester. The unfinished development has been vacant for more than two years after a dispute broke out between the original developer, Avenue Communities, and the main construction lender, Mortgages Ltd. The problems were magnified when the founder and sole shareholder of Mortgages Ltd., Scott Coles, committed suicide in June 2008. Mortgages Ltd. was forced into Chapter 11 bankruptcy reorganization shortly thereafter by a number of its borrowers. When the company emerged from bankruptcy last year, the entity created to administer the loans or liquidate assets was named ML Manager. Former state land commissioner Winkleman was named to oversee the operation. Since the first of the year, ML Manager foreclosed on the Centerpoint loans, which totaled $135 million. ML Manager took back the project after a trustee sale and has been marketing the project with assistance from CB Richard Ellis in Phoenix. The Centerpoint project represented the largest amount of loans in the Mortgages Ltd. portfolio. Winkleman said he was thrilled to get the deal done.

"But that said, the losses are substantial." He said his objective was to get the best deal for investors in the loans. He estimated there were more than 1,000, many of them local individuals who had invested with Coles for years. Read more: Ohio developer buys Centerpoint for $30M, plans to finish by summer 2011 - Phoenix Business Journal

TESTIMONIALS “Victor has been great about showing us opportunities that are right in line with our requirements. He is very creative in solving problems and overcoming objections. His diligence and persistence has helped us complete several terrific acquisitions. A real asset for our team.” Bret Jordan, Vice President Western America Equities LLC

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“We met Victor Allison in 2004. Within one week, he had located a property for us that we acquired. It has performed exceptionally well. Shortly thereafter, he also located an off-market medical office building and successfully negotiated with the seller to gain acceptance of our offer, even though other brokers were telling the seller that they could get a higher price. We have been very pleased with the properties located by Victor and his service to us. We have found him to be knowledgeable, trustworthy and very good to work with.” Jim Clark, President Western America Equities, LLC

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“I wanted to drop you a short note to let you know how much I appreciate your electronic newsletters. Having an ongoing summary of major real estate happenings in the Phoenix market is highly useful and saves me a great deal of time knowing that I can get the information I need all in one place. Keep up the great work!” Richard Zigler, President Kaplan Acquisitions, LLC

“As a NAREmeritus with 50 years of experience, I am most selective of professional relationships. Victor Allison has tried over time to deliver information in a very professional manner. Although we do not represent the public as a broker, Victor's service is a great efficiency device. Receiving only properties information that we are interested in saves much valuable time.” Charlie Wilson, RIM, CIC, NARE Metro Investing “I have come to rely on the Praedium newsletter as a valuable resource of information and trends in Arizona markets.” Tim Brown, Partner Demko Investment Group, LLC

“... despite representing a difficult buyer Victor Allison's negotiating skills kept both parties focused on the transaction instead of personalities. We ultimately closed escrow with a win/win situation for both buyer and seller.” Stephen C. Park, Managing Member Park / Gibbs Development Company, LLC

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“Our experience working with Victor Allison couldn't have been better. He had all of the bases covered when it came to helping us lease one of our more challenging retail properties. Victor was particularly adept at screening and prepping tenant prospects, and that made our lease transactions flow quickly and smoothly.” Kurt Lefteroff Pacific Ridge, Inc.

“I would like to thank you for the assistance and sound advice you gave to me in the leasing of my office space here on Gainey Ranch. Your professionalism assisted me greatly in getting the very best deal I could here, which not only included getting an excellent dollar per square foot rate, but in also procuring free rent for signing the contract. Through your expertise I feel I had an edge in my dealings with the management company, and did not allow them to take advantage of my relative inexperience in the commercial real estate market. Thank you again.” Steven Bernstein Allstate Insurance Co.

“I read the Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More newsletters from “cover to cover” each month. The newsletters help me to focus on client projects that are or will be changing to meet the current real estate market. Knowing what is successfully being completed helps to plan future projects. I have recommended your newsletter to my associates and my clients. My associates need to be up to date on developments that may affect current or future projects. My clients benefit from knowing information on real estate transactions, so they can then plan their acquisitions accordingly. I will continue to watch the newsletter, to be better informed, when a real estate deal that I want to invest in presents itself. Current and, factual information in the newsletter will affect my future acquisitions. Thank you Victor.” Allan R. Converse Principal TeamConverse LLC

“Victor Allison is the personification of what a good broker ought to be. Knowledgeable in the market area, flexible, creative and tenacious. Whether it was finding tenants or marketing a shopping center Praedium was responsive and honest…” Jack Walker, President English & Continental Properties

“Victor Allison & Praedium Advisors' monthly newsletter is an invaluable source of news and intelligence on the Phoenix commercial real estate market. I highly value my subscription to Praedium Advisors' publications (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More) because they save me so much time and trouble: Praedium researches and publishes all the important news and the most important transactions in Phoenix commercial real estate. Many thanks to Victor Allison and Praedium Advisors for their extremely valuable and informative monthly newsletters (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More). These are the two most important sources of news and information that I read. These newsletters contain important details about the people and companies doing all the different deals in Phoenix. I can quickly know what is going on, where it is going on and who is doing it. This is the most up to date information on commercial deals deals going on all across the Phoenix market. It is useful for investors, developers, brokers and all the businesses related to same. Many thanks, Victor.” Ken Yamaguchi, Southwest Regional Director SCI Real Estate Investments, LLC

“We wholeheartedly endorse Victor as one of the most accomplished brokers we have worked with in our 30 years of collective experience. Victor is by far the most responsive broker we work with. He is always a step ahead in terms of gathering information to get a transaction done. Victor is thorough, prompt and reliable.” Francesca Godi and Marino Godi, Principals The Godi Group

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“Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More help us to keep up to date with Phoenix's marketplace. With all the negative press today, it's helpful to see what's really going on from a real estate professional's prospective.” Jerry Turboff, President Prime Capital Corp.

“I have known, and worked with Victor Allison, for many years. In all of our real estate dealings he has handled them very professionally, and promptly, which makes him a pleasure to work with. A man of the highest of integrity. If Victor tells me something, I can "bank it". What more could a person ask for?” Charles E. “Chuck” Winslow Winslow Enterprises

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HOW TO ALWAYS GET THE HIGHEST PRICE FOR YOUR PROPERTY

Every property owner wants to get the highest price whenever they're selling or leasing their property. That's one of the main reasons why people own property in the first place...to maximize their returns and the money they make while owning the property. With this in mind it's interesting to observe some owners doing things that are in direct conflict with what will have them receive the most amount of money for their property. When selling or leasing your property, the way to maximize the amount of money you receive for it is to get the word out to the greatest number of people who would be interested in it. Yet there are property owners who prefer not tell many people about their property, and they end up just putting their own sign on it. Or even worse they won't even put a sign on it, and they won't advertise it anywhere either. This approach almost guarantees you receiving considerably less money for your property, as compared with if you instead did what would maximize its exposure to the kind of people who would be interested in it. The most–savvy investors want to buy properties that are not on the open market, because they know that's when they make their best investment purchases. They love being the only people negotiating with owners without any competitors even knowing that the property is available, because that's when they can buy property for the lowest prices. An owner simply can't receive the highest price for their property when there are many potentially interested parties who don't even know that their property is available. Think about it for a moment...If you had a used car that you wanted to sell which of the following two approaches do you think would bring you the highest price for it? 1) Placing flyers advertising the car in the mailboxes of the 10 closest houses to your own 2) Advertising the car in the used car section of the newspaper with the greatest circulation in your area Clearly the second choice is the one more likely to bring you the highest price for your car, because it has a much greater chance of reaching the people who are looking to buy a car like yours. The 10 neighbors living the closest to you may not be in the market for a car like yours, but one of them may be willing to "take it off your hands" for a price considerably less than your asking price. And in the process you might think this was the best price you could have obtained for the car. So similarly, if you don't list your property and put it on the open market when you're ready to sell or lease it, you're more likely to receive a lower price for it. There's a reason why the most successful companies and investors list their properties when making them available to the public. Because they know that the exposure their properties will receive will result in the highest price imaginable for them, and they won't be leaving any of their own money on the table at the same time.

VICTOR ALLISON’S NINE POINT, PROPERTY SPECIFIC MARKETING ACTION PLAN

It's important in marketing your property for you that we do everything that will ensure that you receive the highest price for it. That's why I've put together my Nine Point Marketing Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Not all properties can or should be marketed using the same marketing plan. Being a boutique marketing brokerage without layers of management, PRAEDIUM Advisors is able to adapt quickly and adopt effective, new marketing methods before they hit the mainstream brokerage houses. I do not take on more marketing assignments than I can effectively handle at one time ensuring my time is devoted to selling your property until the job is done. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining the highest possible sales price in the shortest possible time. 1 – PREPARE YOUR PROPERTY FOR SALE I work with you to understand your short–term and long–term real estate goals and how they will impact both the direct and network marketing tools available to us. My goal is to advise, educate, and guide you through the sales process.

• I discuss marketing and any sales confidentiality issues important to you so they can be integrated into the marketing plan.

• I identify property value enhancement opportunities that can be profitably implemented before the sale to maximize your sales price.

EXPERT VALUATION • I review current market, submarket, and financing conditions to establish a

competitive price for your property so it will sell quickly. 2 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, sales motivating, marketing materials are created to make your property stand out from competing properties and capture the attention of buyers.

• Marketing materials include high–quality digital photographs and/or video of your property.

• Two versions of marketing materials are created: a full–color Teaser Flyer for the initial contact with buyers that provides just enough information to motivate buyers to contact me for the full marketing package. The full–color Offering Memorandum contains sufficient information for a buyer to prepare a Letter of Intent. The Offering Memorandum is never push marketed ensuring I capture the contact information of interested buyers for personalized and direct follow–up conversations. A Confidentiality Agreement is used if appropriate.

• The flyer and full OM are produced in both print and .pdf formats to market your property by both direct mail and email and to adapt to buyer preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website and/or we can contract with a firm like Real Capital Markets.

3 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors and developers. The FileMaker software platform can sort the database into the sometimes exclusive investor/developer sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your property is targeted to the proper prospective investor and/or developer group. New investors/developers are added to the database each week and it is continuously updated for accuracy and relevancy. 4 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active marketing is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters and brochures used in this program dramatically enhances the effectiveness of my marketing plan. I do not sit back and wait for phone calls or emails to come in.

OutsideBrokerParticipation

I recognize the importance of working with other investment brokers on a nationwide basis. The number of prospects grows immeasurably with proper promotion to the brokerage community. I actively push your property from the outset of my marketing campaign to the investment brokerage community with full acknowledgement that they have access to buyers not in our database. Again, and unlike some of our largest competitors, I return my fellow broker's calls promptly and treat outside brokers with the utmost care and respect. I prefer split my commission if it means selling your property sooner! 5 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively market and sell your property is the Internet. Unless you have confidentiality issues I place your property on Loopnet (Premium Access Member), CoStar, and possibly Real Capital Markets and other web–based marketing venues. I also create a new web page on PRAEDIUM Advisors’ website devoted to marketing your property. This ensures your property is exposed to thousands of investors, real estate professionals and agents around the world. Additionally, I am a subscriber to several proprietary email Listservers distributing push email marketing messages to thousands of targeted subscribers. PRINT MEDIA Depending on the specific characteristics of your property I may market it in selected local and/or national print media.

SIGNAGE If appropriate I will place the largest viable clean, bright, professional For Sale sign on your property positioning it for maximum visibility and impact. 6 – INQUIRIES & SHOWINGS

• I respond to all leads and inquiries within minutes, not days. • I personally represent you at all showings and employ our seasoned salesmanship to

facilitate the optimum opportunity for a sale. • I assist buyers with financing options if needed. • I review terms of all LOIs with you and, as an experienced negotiator, I draft an

appropriate counter–offer. • I avoid dual agency representation issues in the event that a buyer does not have

their own broker representation ensuring I always negotiate in your best interest. 7 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 8 – CONTRACT & ESCROW I coordinate with the buyer and seller, their respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next marketing assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

VICTOR ALLISON’S NINE POINT, CLIENT SPECIFIC PROPERTY ACQUISITION PLAN

It's important when searching for a property for you that I do everything that will ensure that you see several properties that match your acquisition criteria. That's why I've put together my Nine Point Acquisition Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Being a boutique acquisition brokerage without layers of management, PRAEDIUM Advisors is able to adapt and react quickly assuring you are seeing multiple opportunities that match your acquisition criteria. I do not take on more acquisition assignments than I can effectively handle at one time ensuring my time is devoted to finding a property meeting your investment objectives. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining a property meeting your investment objectives. 1 – DEVELOPING AND UNDERSTANDING YOUR ACQUISITION CRITERIA I listen to you to understand your short–term and long–term real estate investment objectives and develop a specific, written Acquisition Plan with you that delineates your acquisition criteria and objectives. My goals are to find properties matching your acquisition criteria, and to advise, educate, and guide you through the acquisition process.

• I discuss any confidentiality issues important to you so they can be integrated into your acquisition plan.

• I review current market and (if appropriate) submarket conditions to assure your

expectations are realistic. 2 – BUYER REPRESENTATION AGREEMENT There are several advantages of entering into an exclusive buyer representation agreement with an experienced acquisition broker:

We enter into a written agreement wherein I am obligated to use my best efforts to locate properties that best meet your objectives with the goal of purchasing a property that closely matches your acquisition criteria. My responsibilities include:

• Notifying owners/developers/agents with properties that may match your acquisition

criteria of your acquisition criteria.

• Winnowing through they myriad of properties submitted by owners/developers/ agents and presenting only those properties that match your acquisition criteria.

• Analyzing and submitting the prospective properties in a standardized format thereby eliminating the disparity in the presentation methods of the owners/developers/agents.

• I (or your attorney) craft a Letter of Intent to acquire the target property.

• I negotiate aggressively in your best interest based on my knowledge of current

market conditions.

• I assist in locating and securing the best available financing (if necessary).

• I keep you informed of feedback from the marketplace and solicit feedback from you concerning my performance.

• You deal only with one broker thereby eliminating unsolicited inquiries from other

agents and the necessity to re–educate each new agent with your acquisition criteria.

• I endeavor compensated by the property owner or listing agent.

• Response from owners and listing agents is more positive and timely when they realize that you are a serious buyer since you have engaged a broker to identify and qualify properties for you.

• If either of us is unhappy with the other’s performance, our relationship can be

terminated upon 30 day’s notice. 3 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, motivating, marketing materials are created to make you stand out from competing buyers and capture the attention of owners/developers/agents.

• The marketing materials are produced in both print and .pdf formats to solicit properties by both direct mail and email and to adapt to seller preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website promoting your acquisition criteria.

4 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors, developers, and real estate agents. The FileMaker software platform can sort the database into the sometimes exclusive owner/developer/agent sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your acquisition criteria is targeted to those owners/developers/agents who will have properties matching your acquisition criteria. New owners/developers/agents are added to my database each week and it is continuously updated for accuracy and relevancy.

5 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active solicitation is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters, emails and brochures used in this program dramatically enhances the chances of finding a property matching your acquisition criteria. 6 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively solicit for properties is the Internet. In addition to my proprietary database I subscribe to several online, targeted email Listservers that push market to their membership (sometimes numbered in the thousands). This ensures your acquisition criteria is exposed to thousands of owners, developers, real estate professionals and agents around the world. 7 – CONTRACT NEGOTIATIONS & ESCROW

• I review terms of all LOIs with you and, as an experienced negotiator, I draft an appropriate counter–offer.

• I avoid dual agency representation issues in the event that a seller does not have their own broker representation ensuring I always negotiate in your best interest.

• I coordinate with you and seller, their agent, your respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale.

8 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next acquisition assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

“Do You Own Commercial Real Estate with a Value of $5 Million or More?”

Would You Like to Increase Your Cash Flow Without Raising Rents and

Without Lowering Expenses?

Of course you would so continue reading to find out about A Lucrative Tax Strategy that should be used on Almost Every Major Purchase of Commercial Real Estate according to the U.S. Treasury Dept. CHANCES ARE YOU ARE PAYING TOO MUCH IN TAXES … AND YOU ARE NOT ALONE! Thousands of commercial property owners overpay their federal income taxes every year. But, don’t blame your CPA! In order to realize the maximum benefits available under current law, the IRS requires a specialized engineering based cost analysis study. Your CPA is unlikely to be one of the 75± engineers in the US specialized in the area known as COST SEGREGATION ANALYSIS. See the IRS website http://www.irs.gov/businesses/article/0,,id=134180,00.html. The CPA and Legal Network has performed COST SEGREGATION ANALYSES over the past 22 years. Our team of CPAs, Lawyers, Cost Engineers and Valuation Experts can help you evaluate if this strategy makes sense for your company or property. The CPA and Legal Network’s detailed, No Cost, No Obligation evaluation is available for properties in all 50 states!

A few of the many types of properties benefiting from COST SEGREGATION ANALYSIS are:

• Manufacturing • Retail • Wholesale & Distribution • Restaurants • Hotels

• Resorts • Office Buildings • Medical Complexes • Food Processing • And more

The many immediate, tangible benefits of COST SEGREGATION ANALYSIS include:

• REDUCED UPFRONT INCOME TAXES • ABILITY TO ACQUIRE LOANS MORE EASILY • LOWER PROPERTY TAXES IN SOME STATES

• INCREASED CASH FLOW • LOWER INSURANCE PREMIUMS • EASIER TO FACILITATE 1031 EXCHANGES • MAXIMIZED ANNUAL TAX DEPRECIATION

• RELEASES YOUR TRAPPED DEPRECIATION AND TURNS IT INTO CASH NOW! Call Victor Allison today at 602.320.6200 to tap into the Hidden Reservoir of Cash in your Commercial Property! If you own any type of depreciable Commercial Property with a value of $5 million or more, you may be entitled to these types of benefits. Examples: (i) A Medical Office with a $5,000,000 Basis could realize $1,168,401 in accelerated depreciation saving $467,360 in taxes over six years, and (ii) The CPA and Legal Network recently helped a client realize $1,340,000 of tax benefits on their properties.

3 Point 100% Guarantee:

1. You pay nothing until you see what tax saving benefits you are likely to realize using cost segregation.

2. Your cost segregation study will be done in accordance with the IRS ATG, Audit Techniques Guide.

3. The CPA and Legal Network will back you and your CPA in the event of an audit and fully explain the cost segregation procedure used on your property to the IRS.

Clients Served Include: Cinergy Corp Starbucks Coffee Co. Dayton Power & Light Wells Fargo Chevron

Pacific Gas & Electric Hyatt Hotels Duquesne Energy Bank One Kroger

Harris Ranch General Growth Propeties First Energy Northern Trust Bank Texas-New Mexico Power

Call Victor Allison now at 602.320.6200 for a NO COST, NO OBLIGATION evaluation of your property. This limited time offer is available for properties in all 50 states. It’s your money. What would you rather do: send it to the US Treasury, or use it to grow your business?

Phoenix Commercial Real

Estate Deals & More

August 2010 Edition

Victor Allison

Your Phoenix Commercial Real Estate Brokerage

Specialist

602.320.6200

Selected, recent newswire articles for the metro Phoenix area dedicated to ensuring you are always on top of all the latest news and trends that may

affect your property values and that will assist you in your real estate decision–making processes.

www.praedium-advisors.com

Victor’s Insider Scoop on The Economy … No long blog this month. Just a few predictions and some insightful charts to show where we’ve been and where we’re headed.

According to Elliott Pollack 2010 will be better than 2009 and 2011 will be better than 2010. Elliott predicts that recovery in Phoenix will be painfully slow taking until 2012 or 2013 until AZ is growing rapidly again. In summary, for greater Phoenix:

The good news is the national economy is recovering but the bad news is the recovery is very slow.

The good news is that housing is at or past the bottom but the bad news is that there are still many negatives with no quick fix in sight.

The good news for commercial real estate is that it is at or past the bottom but the bad news is that recovery will be slow and take a long time

The good news for State government is that sales tax revenues are no longer falling but the bad news is the revenue growth is too slow to fix the problem soon.

Dedicated To Multiplying Your Income

Elliott D. Pollack & Company

United States Real Gross Domestic Product* Annual Growth 1970 - 2011**

Source: U.S. Bureau of Economic Analysis & Blue Chip Economic Indicators

* Based on chained 2005 dollars.

** 2010 - 2011 are forecasts from the Blue Chip Economic Indicators, September 2010 Recession Periods

Elliott D. Pollack & Company

Arizona Employment Rank Among 50 States 1980 – 2010 Growth Over Previous Year

Source: Arizona State University

1980 2008 1994 1982 1984 1986 1988 1990 1992 1996 1998 2000 2002 2004 2006

YTD July 2010 = 42

Recession Periods

2010

Elliott D. Pollack & Company

Greater Phoenix Employment* Annual Percent Change 1975–2011**

Source: Department of Commerce, Research Administration

*Non-agricultural wage & salary employment. Changed from SIC to NAICS reporting in 1990.

** 2010 & 2011 forecasts are from Elliott D. Pollack & Co. Recession Periods

Elliott D. Pollack & Company

Problem Commercial Real Estate Loans Rise Delinquency Rates at Commercial Banks

1991 – 2010* Source: Federal Reserve

* Data through second quarter 2010

Recession Periods

Elliott D. Pollack & Company

Commercial1 Mortgage Maturities 1980–2020*

Source: Foresight Analytics

1/ Includes mainly office, retail, industrial and hotels Note: Forecast is from Foresight Analytics

PRUDENTIAL BUYS NOTE SECURED BY GRAY DEVELOPMENT APARTMENTS . . . FILES TRUSTEE’S SALE September 3, 2010 Phoenix – A company formed by Prudential Real Estate Investors has filed foreclosure proceedings on a $82.52+ million loan that is secured by Valley apartment projects and multi-family land owned by Gray Development Group in Phoenix. In June, Prudential Real Estate Investors purchased notes that are secured by 450 apartment units in two projects in the Paradise Ridge community in north Phoenix and a site planned for more apartments. The seller was Key Bank. No word on how much Prudential Real Estate Investors paid for the notes. In August 2009, BREW reported Key Bank filing for trustee’s sale on loans with original principal balances of $160.9 million. Those loans were secured by Barossa at Paradise Ridge, 204 units at 17950 N. 68th Street in Phoenix; Ninety Degrees at Paradise Ridge, 348 units at 18440 N. 68th Street; Barossa at Trianna, 246 units located at 13720 N. 88th Avenue in Peoria, and Indigo at Trianna, 486 units at 1330 N. 88th Avenue in Peoria. Those properties totaled a combined 1,284 units. In addition, Key Bank’s loans to Gray Development were secured by a parcel planned for more apartments at Paradise Ridge and a vacant parcel located adjacent to Indigo at Trianna. Gray Development sold Barossa at Trianna and Indigo at Trianna in July and are not collateral on the note purchased by Prudential Real Estate. The loans originally made by Key Bank were issued to six different companies formed by Gray Development. Representatives of Gray Development declined to comment on the pending foreclosure filed by Prudential Real Estate. Calls to representatives of Prudential Real Estate were not returned. According to Ion Data, a Mesa-based provider of real estate information, Sam Chang of the Phoenix lawfirm Lewis & Roca is the trustee on the planned sale. Ion Data’s

Foreclosure Update shows the trustee sale is scheduled for November 18 (see Commercial Foreclosures on P. 4). Over the years, BREW has reported Gray Development Group developing numerous multi-family projects in the Valley. In July, BREW reported Gray Development selling Indigo at Trianna and Barossa at Trianna. Companies formed by Weidner Apartment Homes in Kirkland, Wash. (Dean Weidner, principal) were the buyers. Weidner paid $31.525 million ($65,000 per unit) to purchase Indigo at Trianna, and the company paid $19.68 million ($80,000 per unit) to acquire Barossa at Trianna. The deals with Weidner were short sales, and Key Bank provided financing to the Weidner entities. Prudential Real Estate Investors is a subsidiary of The Prudential Insurance Co. of America in Parsippany, N.J. Prudential Real Estate has been an active investor in the Valley. The company is looking for additional investment opportunities in the Phoenix area. Call Brian Kearney of Gray Development at (602) 954-0109. Reach Chang at (602) 262-5794. Marti Burrows is the contact at Prudential Real Estate in Atlanta, Ga. Talk to her at (770) 395-5712. Call Zach Bowers of Ion Data at (480) 831-6677, ext. 15.

Court One buys $2.8M site for elite sports training facility September 2, 2010 A company called Court One of Phoenix paid $2.8 million for a distribution and warehouse building in Tempe off Interstate 10. The 43,100-square-foot property at 9100 S. McKemy St. will be used as a sports facility for elite volleyball and basketball players ranging from 5- to 18-years old. Senior and adult leagues also will have access to programs that are expected to begin Oct. 20, according to Cushman & Wakefield of Arizona officials who disclosed the deal. Cushman & Wakefield represented the seller, Tempe Industrial LLC, an entity of RREEF of San Francisco, a real estate investment management company in Duetsche Bank’s Asset Management Division. Court One was represented by Marc Pierce of Lee & Associates in Phoenix. Read more: Court One buys $2.8M site for elite sports training facility - Phoenix Business Journal

Pinchot Towers Sells for $2.6M 104-Unit Complex in Phoenix Changes Hands By Marc'enna Wilson August 26, 2010 The Pinchot Towers multifamily complex in Phoenix sold for $2.65 million, or approximately $19,900 per unit, in a sale between private investors. The 58,767-square foot apartment complex consists of 104 one-bedroom units in four buildings. The property was built in 1972 in the Midtown/Central Phoenix submarket. It was 30% occupied at the time of the sale. Pete TeKampe of Marcus & Millichap represented both parties. Please see CoStar COMPS #1948440 for more information on this transaction

THREE SENIOR LIVING & MEMORY CARE FACILITIES IN PHOENIX SOLD IN $1.2 BILLION PORTFOLIO DEAL August 27, 2010 Phoenix – A joint venture formed by Emeritus Corp. in Seattle, Wash. (NYSE:ESC), Blackstone Real Estate Advisors in New York City, N.Y. and Columbia Pacific Advisors in Seattle paid a combined $39.049 million to purchase three senior living and memory care facilities in Phoenix. The acquisitions of the Valley properties are part of a $1.2 billion portfolio deal. The venture has acquired or intends to acquire 144 communities formerly operated by affiliates of Sunwest Management Inc. in Salem, Ore. The portfolio of retirement and memory care communities include roughly 11,769 units. The venture was the winning bidder in a bankruptcy auction held in May. Emeritus, which will operate the facilities, contributed $19 million in equity to the purchase and owns about 5.8 percent of the venture. With the acquisition, Emeritus now operates 460 senior communities in 44 states. Blackstone Real Estate Advisors is an affiliate of The Blackstone Group, one of the world’s largest investment and advisory firms. Blackstone Real Estate Advisors has the majority of equity invested in the Sunwest portfolio deal. Columbia Pacific Advisors is an affiliate of Emeritus Corp. Records show the Emeritus/Blackstone venture paid just under $21.142 million to purchase the Chris Ridge senior living community located at 6250 N. 19th Avenue. That project is comprised of 299 apartment and assisted living units. The venture paid just over $9.277 million to buy the Paradise Valley retirement community at 11645 N. 25th Place in Phoenix. That independent living facility has 100 units. And the Emeritus/Blackstone company paid just under $8.63 million to acquire the Sunshine Village assisted living community at 2606 E. Greenway Parkway in Phoenix. That memory care project has 84 residences. All of the Phoenix properties were acquired with the venture assuming existing loans. Call representatives of Emeritus at (206) 298-2909. Reach Blackstone at (212) 583-5000.

Central Arizona College buys 217 acres in Maricopa BY Angela Gonzales August 27, 2010 Central Arizona College, a community college system that serves Pinal County, is buying 217 acres in the city of Maricopa and scouting for about 200 acres in the San Tan Valley for new campuses. Plans call for paying $13 million to private developers for the property in Maricopa, near Bowlin Road and White and Parker Road. The money comes from a $99 million bond initiative approved by Pinal County voters in 2008 to build two new campuses and expand and renovate CAC’s 10 facilities throughout Pinal County. With three campuses and seven satellite centers, CAC is bursting at the seams, said Tom Di Camillo, the system’s director of media and community events. The Maricopa campus will be able to serve 15,000 students. College executives also are searching for potential sites for a new campus in the San Tan Valley, an unincorporated area close to Queen Creek, near the Maricopa and Pinal county border. With more than 80,000 residents, that area is in need of a college, said Di Camillo, who also lives in the San Tan area. Many residents of Maricopa work in the East Valley. The city is about a 35-minute drive from Phoenix Sky Harbor Inter-national Airport. “Ten years ago, nobody was there,” Di Camillo said. CAC operates small satellite centers in Maricopa and San Tan Valley, but both are in need of more space, he said. It’s too early to determine when construction will begin, how much it will cost to

build the campus in Maricopa and how many jobs it will create. CAC’s 15,000-student capacity will be “critical in a community that’s trying to build a sustainable economy which only had 1,500 people here in 2000,” said Danielle Casey, director of economic development for the city of Maricopa. In 2003, when Maricopa was incor-por-ated, it had 5,000 residents. Today, the area has more than 40,000. Maricopa Vice Mayor Edward Farrell said this is a huge step for the city. “By bringing higher education into our city, it not only builds a better quality of life for our citizens, but it is a huge part of economic development,” he said. “It’s going to create jobs for us.” Pinal County Supervisor David Snider said, “If we can expand our ability to meet the educational needs of contemporary businesses as well as emerging businesses and technologies, we are that much ahead of the curve.” With the population growth in Pinal County has come a spike in CAC enrollment, Di Camillo said. Total enrollment jumped 14.5 percent, to 6,000 students, from fall 2009 to fall 2010. In 2006, the college system had 3,800 students; in 2009, it was up 32.6 percent, to more than 5,000 students, he said. “There was a real need for us to grow,” Di Camillo said. The college system also is expanding its campus in Apache Junction. Read more: Central Arizona College buys 217 acres in Maricopa - Phoenix Business Journal

WILLIAM LYONS SPENDS $20+ MILLION FOR 222 ACRES AT LEHI CROSSING COMMUNITY IN SURPRISE August 27, 2010 Mesa – William Lyon Homes Inc. of Scottsdale (Tom Hickcox, pres.) paid $20+ million to buy 222 acres within the Lehi Crossing planned community in at the southwest corner of Val Vista Drive and Thomas Road in Mesa. The seller in four separate cash transactions were companies formed by investors Rodney Engel, Jr. and Janelle Engel in Mesa. The deals were brokered by Michael Martindale, Todd Vesledahl and Hank Daugs of CRA LLC in Scottsdale, and Clay Layton of West USA Realty in Mesa. William Lyon had previously owned a portion of the tract, but sold the land to the Engels in February 2009. Hickcox says the Lehi Crossing property is targeted for 914 residences. Of the lots, 235 will average 4,750 sq. ft. (50x95), 244 will average 5,775 sq. ft. (55x105), 248 will average 6,600 sq. ft. (60x110) and 187 will average 9,000 sq. ft. (75x120). William Lyon Homes will build on a portion of the lots and the company is likely to sell some of the home sites. William Lyon intends to construct residences ranging from 1,200 sq. ft. to 4,000 sq. ft. Three-, four-, five- and six-bedroom units to be priced from roughly $170,000 to $400,000. Models scheduled to open early 2012. William Lyon in Scottsdale is a subsidiary of William Lyon Homes in Newport Beach, Calif. (NYSE:WLS). The parent company provides financing. Find out more from Hickcox at (480) 893-1000. Call the CRA agents are at (480) 889-9900. Layton is at (480) 820-3333.

Brentwood West pays $2M for North Scottsdale office building August 23, 2010 Brentwood West LLC, a Chandler investment company, paid $2 million for a Class B office property in North Scottsdale. The Citadel, 8700 E. Pinnacle Peak Road, was built in 1996 and sits on a 2.8-acre lot. With 28,500 square feet, the building was 16 percent leased at the time of sale. The seller was San Francisco-based Helios AMC. Cassidy Turley BRE Commercial in Phoenix handled both sides of the transaction. Read more: Brentwood West pays $2M for North Scottsdale office building - Phoenix Business Journal

Health, education companies take 1.3M square feet in Glendale in fiscal 2009-10 BY Angela Gonzales August 23, 2010 Glendale has filled 1.3 million square feet of office space with health and education companies within the past fiscal year, bringing 1,042 new jobs to the city. Brian Friedman, the city’s economic development director, said those jobs represent 60 percent of the 1,776 total jobs created in Glendale during the 2009-10 fiscal year ended June 30. The 1.3 million square feet of space is roughly equal to 22 football fields. The businesses were a mixture of companies new to Glendale as well as expansions: • Midwestern University: 712,464 square feet and 163 jobs. • Banner Thunderbird Medical Center: 328,000 square feet and 225 jobs. • Humana Inc.: 112,000 square feet and 450 jobs. • Western Maricopa Education Center: 80,000 square feet and 60 jobs. • Arizona School of Allied Health: 50,500 square feet and 10 jobs. • DeVry University: 18,000 square feet and 80 jobs. • Harbor Pointe Internal Medicine: 4,000 square feet and 32 jobs. • Arizona Pain Specialists: 4,300 square feet and 12 jobs. • Total Medical Care: 4,000 square feet and 10 jobs. In addition, Southwest Ambulance announced this month it is moving into 18,000 square feet in Glendale, bringing 60 jobs. Space is filling quickly in Glendale, Friedman said, with the Glendale Airpark at 94 percent occupancy.

Friedman said he has about 350,000 square feet of Class A office space left to fill within the Glendale sports entertainment district along the city’s portion of Loop 101. Read more: Health, education companies take 1.3M square feet in Glendale in fiscal 2009-10 - Phoenix Business Journal

WEIDNER KEEPS ROLLING . . . BUYS 272 APARTMENT UNITS IN CHANDLER FOR $24.7 MILLION August 20, 2010 Chandler – A company formed by Weidner Apartment Homes in Kirkland, Wash. (Dean Weidner, principal) paid $24.7 million ($90,809 per unit) to acquire the 272-unit Ocotillo Springs apartments at 825 W. Queen Creek Road in Chandler. The seller was a company formed by TA Associates Realty in Boston, Mass. The sale was brokered by Tyler Anderson and Sean Cunningham of CB Richard Ellis in Phoenix. Weidner purchased the property with a $17.3 million, Fannie Mae loan issued by Wells Fargo Bank. With the acquisitions, companies formed by Weidner now own eight multi-family communities in the Phoenix and Tucson areas totaling 2,326 units. Kevin Colard, senior acquisitions manager at Weidner, says the company is looking for additional apartment projects in Phoenix and Tucson. Weidner wants to own 5,000 multi-family units in the Valley and 1,500 units in Tucson. “If we could round up a couple thousand more units, we would be very happy,” says Colard. Weidner manages all of its apartment projects. The company owns 26,000+ units in Washington, Alaska, Colorado, Texas, Arizona and western Canada. In April 2003, BREW reported TA Associates paying $17.2 million ($63,207 per unit) to buy Ocotillo Springs, which was built in 1998. TA Associates is a privately-held real estate advisor. Three weeks ago, BREW reported companies formed by Weidner paying $71.205 million to buy three Valley apartment communities totaling 952 units. In March, BREW reported the privately-held Weidner making its entry into the Arizona market with the acquisition of the 340-unit Trillium Villas apartments at 10847 W. Olive Avenue in Peoria. Find out more from Collard at (425) 821-3844. The phone number at TA Associates is (617) 476-2700. Reach the CBRE agents at (602) 735-5555.

SUNBELT HOLDINGS SNAGS WEST VALLEY TRACT PLANNED FOR 587 HOMES August 20, 2010 Maricopa County – A limited partnership formed by Sunbelt Holdings LLC in Scottsdale (John Graham, pres.) paid just under $4.772 million to buy a 197-acre parcel located northeast of the northeast corner of Yuma and Perryville roads in Maricopa County. The seller was a company formed by Johnson Bank in Phoenix. The sale was brokered by Kent Baker of The Benjamin Group in Tempe. The property, which now serves as farmland, was once planned for a 587-lot community called La Privada. The tract, located west of Goodyear and east of Buckeye, was previously owned by a company formed by Larry Miller of Miller Holdings in Scottsdale. Johnson Bank foreclosed on the property. The acreage was pre-platted for lots averaging 8,450 sq. ft. (65x130), but that plat expired. The Sunbelt Holdings entity acquired the land with a $1.193 million downpayment and the seller carried back the financing on the balance of the purchase price. Sean Walter of Sunbelt Holdings says the company will hold the land for three to five years. BREW has reported the privately-held Sunbelt Holdings developing many communities in the Phoenix area. Talk to Graham and Walter at (480) 905-0770. The contact at Johnson Bank is Steve Humphrey . . . (602) 381-2177. Baker is at (480) 968-3033.

Cole Drops $30M for Home Depot Distribution Facility By Jennifer Duell Popovec August 19, 2010 TOLLESON, AZ-Cole Real Estate Investments has acquired The Home Depot’s distribution center here for $30.4 million. The non-traded REIT purchased the 466,694 square-foot warehouse/distribution facility in an all-cash transaction from USAA Real Estate Co.

The distribution facility is the third property Cole has purchased from USAA so far this year. Earlier this summer, the Phoenix-based investor acquired the AT&T Regional Headquarters building in Dallas and the Igloo Products’ corporate headquarters, warehouse and distribution facility in Katy, TX. The two properties traded for a total of $67.5 million.

“The acquisition of excellent industrial properties such as this provides for diversification and risk management in our retail focused portfolio,” says Kim Kundrak, chief acquisitions officer for Cole.

Constructed in 2010, the Home Depot property is strategically located in an established warehouse distribution area. Situated on 46.1 acres in Tolleson Commerce Park, it offers a prominent street front location and easy access to I-10.

The tri-docked distribution warehouse building features 30’ clear height ceiling and 50’ x 54’ interior column spacing. It also provides 195’ fenced truck courts with an automated gate.

“This is exactly the type of property that we are targeting for acquisition,” Kundrak says, adding that the property is triple-net leased to The Home Depot, which has 20 years remaining in the initial lease term. The property offers a stable cash flow and an attractive yield, he notes.

Jack Fraker, vice chairman of CB Richard Ellis, represented the seller in this transaction. Cole was represented internally by Boyd Messmann, vice president of acquisitions.

Year-to-date, Cole has acquired more than $1 billion of retail, office and industrial properties across the United States.

LA Fitness opens fourth Mesa Center August 19, 2010 L.A. Fitness has opened a 57,500-square-foot sports center in Mesa University and Stapley drives. The location, the chain’s fourth in Mesa, features a full basketball court, three-lane lap pool, racquetball courts, a whirlpool spa and locker rooms, as well as a separate group exercise studio and multi-tiered indoor cycling room. That’s in addition to 60 pieces circuit training, free weight and cardio equipment. There also will be more than 60 classes per week. Founded in 1984, L.A. Fitness has some 340 locations in 22 states including 26 clubs in Arizona. Read more: LA Fitness opens fourth Mesa Center - Phoenix Business Journal

Mesa Walgreens Sells for $2.9M Double-Net Asset Changes Hands By Shane Beyer August 19, 2010 Investors Associated, a Wisconsin investor, purchased the Walgreens at 4420 E Brown Road in Mesa, AZ, for $2.94 million, or $212 per square foot. The 13,905-square-foot retail building was constructed in 1998 in the Mountain View Plaza. The building was leased to Walgreens at the time of sale on a 60-year lease. Jaime Medress and Mark Ruble of Marcus & Millichap represented the seller. Bill Minett of The Real Estate Co., and local RE/MAX Professionals agent Nathan Martinez represented the buyer. The buyer purchased this location along with the Walgreens located at 15490 W. Bell Road in Surprise, AZ. Please see CoStar COMPS #1957538 & 1957526 for more information on the transactions.

Surprise Walgreens Sells for $3.2M Investors Associated Acquires Double-Net Investment By Shane Beyer August 18, 2010 Investors Associated LLP, a Wisconsin investor, purchased the Walgreens at 15490 W. Bell Rd in Surprise, AZ, for $3.16 million, or $227 per square foot. The 13,905-square-foot retail building was constructed in 1999 and is located on the northeast corner of West Bell Road & North Reemes Road. The building was leased to Walgreens at the time of sale on a 60-year lease. Jaime Medress and Mark Ruble of Marcus & Millichap represented the seller, Imperial Manor West LLC. Bill Minett of The Real Estate Co. and local RE/MAX Professionals agent Nathan Martinez represented the buyer. The buyer also purchased the Walgreens at 4420 E. Brown Road in Mesa for $2.94 million. Please see CoStar COMPS# 1957526 & 1957538 for more information on these transactions.

HEDGE FUND POISED TO PURCHASE ENGLE HOMES ASSETS IN WESTERN REGION August 20, 2010 Pinal County/Maricopa County – Paulson & Co. Inc. in New York City, N.Y. (John Paulson, principal) figures to be the winning bidder at a auction that will decide the disposition of residential land owned by Engle Homes in Arizona, Colorado and Nevada. The hedge fund sponsor has made a “stalking horse” bid of $42.426 million to acquire the assets, which includes land and lots in Arizona that are targeted for 8,000+ homes, and nine completed residences. Engle Homes is a subsidiary of Technical Olympic USA in Hollywood, Fla. (NASDAQ:TOUS). The parent company filed for protection in the United States Bankruptcy Court in Florida and its assets are being liquidated. The auction is scheduled for August 20, and the bankruptcy court is expected to approve the sale five days later. The final sale should be complete in September. Silver Fern Management in Tempe is serving as a consultant and is advising Paulson & Co. in the acquisition. In addition to the land and lots planned for 8,000+ homes in Maricopa and Pinal counties, the deal includes properties in Colorado and Nevada that are targeted for another 800 home sites. RainTree Investment Corp. in San Diego, Calif. (Thomas Noon, principal) is working with Paulson & Co. to complete the purchase and will serve as operator and manage the assets. Although Paulson & Co. is expected to be the winning bidder at the auction, it is possible that another entity may come forward and outbid the New York City-based hedge fund. As the “stalking horse” bidder, Paulson & Co. is in the driver’s seat to acquire the properties. Any other bidder must pay Paulson & Co. a 3 percent “break up” fee and up to another $250,000 in expenses. That means another bidder would have to spend $1.3 million more than the $42.426 million bid already tendered by Paulson & Co. Stalking horse bids take place during a bankruptcy. The process is designed to allow the bankrupt company

the opportunity to maximize the amount of money it can receive for its assets. The initial stalking horse bid establishes a minimum price for which assets can be acquired. The largest property Engle has in the Western region is a 1,800-acre parcel in the Red River community in Maricopa in Pinal County. That tract is targeted for 6,900 residences. The Engle assets in Arizona include 28 subdivisions in 20 communities, with 414 finished lots, 314 partially developed lots, 9 completed homes and a 20-acre parcel in the Layton Lakes project in Gilbert. Get more from Paulson at (212) 956-2221. Reach Noon at (858) 350-9261. John Fortini of Silver Fern is at (480) 820-8590.

Apartment Complex Sells for $7.9M in Phoenix H.M.G. Properties Purchases 176-Unit Sagewood Apartments By Shane Beyer August 19, 2010 Sendera Investment Group sold the 176-unit Sagewood apartment complex in Phoenix to H.M.G. Properties LLC for $7.9 million, or approximately $45,000 per unit. The 115,008-square-foot apartment community consists of 24 studios, 80 one-bedroom/one-bathroom units and 72 two-bedroom/two-bathroom units. It was built in 1984 in Glendale and was 86% occupied at the time of sale. Sean Cunningham and Tyler Anderson of CB Richard Ellis represented the seller. Alon Shnitzer of Marcus & Millichap Phoenix represented the buyer. Please see CoStar COMPS #1960963 for more information on this transaction.

Groendyke Pays $2.5M for Phoenix Industrial Location Transportation Company Buyers New Facility By Brett Wyatt August 16, 2010 Groendyke Transport Inc., a national provider of transportation services, has purchased the industrial building at 4907 S 35th Ave. in Phoenix for $2.5 million, or $145 per square foot, in an all cash transaction. The 17,200-square-foot service facility was built in 2005. The sale also included approximately 4.75 acres of A-1 zoned land. Greg Dodge and Tom Atkinson of Cassidy Turley BRE Commercial represented the seller. Jeff Hays, Chad Neppl and Peter Batschelet of NAI Horizon represented the buyer. Please refer to CoStar COMPS #1959535 for further details.

Sagewood Apartments sold for nearly $8M August 13, 2010 The rapid pace of apartment investment sales throughout metro Phoenix continues this week with the announcement that Sagewood Apartments, 15082 N. 59th Ave., have been sold for $7.9 million. The buyer is HMG Properties LLC, with an address in Hacienda Heights, Calif., according to Arizona Corporation Commission records. The seller was AZ Sagewood Apartments LLC, an Austin entity. The 176-unit complex was built in 1984. The sale price equates to $44,886 per unit. Marcus & Millichap in Phoenix represented the buyer. CB Richard Ellis in Phoenix represented the seller. Read more: Sagewood Apartments sold for nearly $8M - Phoenix Business Journal

Tempe Flex Building Sells for $1.4M Wireless Service to Occupy R&D Space By Brett Wyatt August 13, 2010 A private seller sold the R&D building at 2175 W 14th St. in Tempe, AZ, to Engineering Wireless Services LLC for $1.43 million, or about $105 per square foot. The buyer intends to occupy the property. The 13,410-square-foot flex building was constructed in 1992, and lies in the Tempe Northwest Industrial submarket. Wolters Kluwer Financial Services previously occupied the building. Tyson Breinholt and Shane McCormick of Commercial Properties Inc. represented the seller. Randy Maitland of Ahwatukee Realty represented the buyer. Please refer to CoStar COMPS #1960636 for further details.

INVESTOR BUYS 31 ACRES IN QUEEN CREEK . . . LENNAR TO BUILD 110 HOMES ON THE PARCEL August 13, 2010 Queen Creek – Emperor Funding LLC in Phoenix (Michael Koslow, principal) paid $1.717 million to acquire a 31-acre parcel at the northeast corner of Sossaman and Queen Creek roads in Queen Creek. The seller was Emperor Estates Development in Gilbert (Johan de Keizer, principal). The buyer in the cash sale was represented by Harry Lourimore, Ryan Duncan and Jill Lewis of Land Advisors Organization in Scottsdale. James Pickett of The Benjamin Group in Tempe worked on behalf of the seller. Koslow says he has a deal to sell the land to Lennar Communities Development Inc. in Tempe (Alan Jones, pres.). Lennar is expected to build homes on lots averaging 6,600 sq. ft. (60x110). No further details. Koslow owns other land parcels in the Phoenix area and is developing a retail center in Maricopa. Koslow is looking for additional investment opportunities in the Valley. Call Koslow at (602) 799-3462. Talk to the Land Advisors Organization agents at (480) 483-8100. Pickett is at (480) 968-9894.

176-Unit Complex Trades to CA Investor for $8M By Jennifer Duell Popovec August 13, 2010 GLENDALE, AZ-An investor from Hacienda Heights, CA, has made his second investment in the market, buying Sagewood Apartments for $7.9 million.

The buyer, doing business as H.M.G. Properties LLC, acquired the 176-unit, class B community from a joint venture comprised of Sendera Investment Group of Austin, TX, and AEW Capital Management of Boston, MA. The JV acquired Sagewood Apartments in 2005 for $9.4 million.

H.M.G. Properties beat out 15 other investors to take possession of Sagewood Apartments, which is located in the northwest submarket at 15082 N. 59th Ave. “This was a fairly sought after property because of location,” notes Alon Shnitzer, a vice president of investments with Marcus & Millichap’s Phoenix office. “At the time it went into escrow, there weren’t many B properties available in the Phoenix markets. If you were looking in that niche, Sagewood was pretty much the only complex on the market.”

Shnitzer represented H.M.G. Properties in the transaction. Sean Cunningham of CB Richard Ellis’ Phoenix Office represented the seller.

Shnitzer says the buyer was attracted to the complex because it is close to his other property, the 180-unit Rosewood Apartments. He bought that property in 2005 for roughly $43,000 per unit.

“We’ve been looking for about three years for another property, and we finally found the right deal,” Shnitzer tells GlobeSt. “The buyer has a huge comfort level with Sagewood Apartments because he owns its sister property, Rosewood. The two properties will create economies of scale for him, plus he bought Sagewood at

a similar price point as what he paid for Rosewood in 2005.”

Built in 1984, Sagewood offers a mix of one and two-bedroom units. Its occupancy rate is in the mid-80% range. “The buyer expects to realize some upside from both increased occupancy and rental rates when the market returns,” Shnitzer explains, adding that Phoenix-based Consolidated Asset Management will handle the leasing and management of the property.

H.M.G. Properties obtained a fixed-rate, 70% LTV loan from the Mutual of Omaha Bank to acquire the property. Luke Donahue in Northmarq Capital’s Phoenix office arranged the financing .

SHEA HOMES GETS IN ON SOUTHEAST VALLEY RUSH . . . BUYS LOTS AT LAYTON LAKES August 13, 2010 Gilbert – In its first new lot acquisition in four years, Shea Homes Limited Partnership in Scottsdale (Buddy Satterfield, pres.) has acquired 42 finished home sites within the Layton Lakes community in Gilbert. That project is at the northeast corner of Lindsay and Queen Creek roads. Shea Homes paid just under $3.208 million in cash for the lots. The seller was Lennar Layton LLC, a company formed by Lennar Communities Development Inc. in Tempe (Alan Jones, pres.). The buyer was represented by Grant Helgeson, Don McCaul and Ryan Arp of Westland Properties Group in Scottsdale. The seller was represented by Michael Martindale, Todd Vesledahl and Hank Daugs of CRA LLC in Scottsdale. Shea paid cash for the lots. The home sites average 7,800 sq. ft. (65x120). Shea plans to build homes ranging from 1,700 sq. ft. to 2,800 sq. ft. Three- and four-bedroom units to be priced from the low $200,000's to the mid-$200,000's. Models scheduled to open by year-end. Build out expected to take two years. Shea Homes, a subsidiary J.F. Shea Inc. in Los Angeles, Calif., gets its financing from the parent firm. Over the years, BREW has reported Shea building thousands of homes in the Phoenix area. Like just about every other Valley builder, Shea Homes has had to put a hold on land buys in the Phoenix area. David Garcia of Shea Homes says the company is looking for additional residential development opportunities . . . focus is on southeast and northwest portions of the Valley. With the Layton Lakes deal, Shea has joined several other builders who have made recent land purchases in the southeast Valley. “We have had a little bit of luck in the southeast Valley,” says Garcia. “It is a little more stable. It has been good to us over the years.” Get more from Garcia and Satterfield at (480) 348-6000. Reach Jones at (480) 345-0077. Talk to the Westland Properties agents at (480) 443-8570. The CRA agents are at (480) 889-9900.

Amazon Leases 1.2 Million SF in Phoenix Online Retail Giant Taking Riverside Industrial Center Building By David Whitmore August 17, 2010 Amazon.com Inc. has signed a 127-month lease for a 1.2 million-square-foot facility in the Riverside Industrial Center in Phoenix. The online retailer is expected to take occupancy in December. Financial terms of the transaction were not disclosed. This will be Amazon's third distribution center in the Phoenix metro area. Company Spokesperson Mary Osako said that Amazon is planning to hire several hundred employees at the new facility. Located at 4750 - 5050 W. Mohave St., the massive distribution building was built in 2008 and features 255 loading docks, eight drive-in bays, 36-foot clear height, and 3,600 amps of power. The property was developed as a joint venture between Tratt Properties and KTR Capital Partners. Tony Lydon and Marc Hertzberg with Jones Lang LaSalle in Phoenix represented the landlord, while John Hanson with Commercial Real Estate Solutions in Seattle, a Cushman & Wakefield alliance member, represented Amazon.

SHEA HOMES GETS IN ON SOUTHEAST VALLEY RUSH . . . BUYS LOTS AT LAYTON LAKES August 13, 2010 Gilbert – In its first new lot acquisition in four years, Shea Homes Limited Partnership in Scottsdale (Buddy Satterfield, pres.) has acquired 42 finished home sites within the Layton Lakes community in Gilbert. That project is at the northeast corner of Lindsay and Queen Creek roads. Shea Homes paid just under $3.208 million in cash for the lots. The seller was Lennar Layton LLC, a company formed by Lennar Communities Development Inc. in Tempe (Alan Jones, pres.). The buyer was represented by Grant Helgeson, Don McCaul and Ryan Arp of Westland Properties Group in Scottsdale. The seller was represented by Michael Martindale, Todd Vesledahl and Hank Daugs of CRA LLC in Scottsdale. Shea paid cash for the lots. The home sites average 7,800 sq. ft. (65x120). Shea plans to build homes ranging from 1,700 sq. ft. to 2,800 sq. ft. Three- and four-bedroom units to be priced from the low $200,000's to the mid-$200,000's. Models scheduled to open by year-end. Build out expected to take two years. Shea Homes, a subsidiary J.F. Shea Inc. in Los Angeles, Calif., gets its financing from the parent firm. Over the years, BREW has reported Shea building thousands of homes in the Phoenix area. Like just about every other Valley builder, Shea Homes has had to put a hold on land buys in the Phoenix area. David Garcia of Shea Homes says the company is looking for additional residential development opportunities . . . focus is on southeast and northwest portions of the Valley. With the Layton Lakes deal, Shea has joined several other builders who have made recent land purchases in the southeast Valley. “We have had a little bit of luck in the southeast Valley,” says Garcia. “It is a little more stable. It has been good to us over the years.” Get more from Garcia and Satterfield at (480) 348-6000. Reach Jones at (480) 345-0077. Talk to the Westland Properties agents at (480) 443-8570. The CRA agents are at (480) 889-9900.

Ryan Acquires Phoenix Land for Future Development Vazza Co. Sells 12.3 Acres for $9M By Dinh Nguyen August 18, 2010 Ryan Cos. purchased 12.3 acres of land at Deer Valley Drive & Seventh Street in Phoenix for $8.97 million, or $17 per square foot, from Vazza Co. Ryan will be building a 225,000-square-foot office building for the General Services Administration (GSA). The construction is planned to start in October 2010 and is expected to be completed by year-end 2011. AECOM in Phoenix is the architect. Darren Tappen, Patrick Harlan, Steve Sayre and Kyle Westfall of Cushman & Wakefield represented the seller, while Jessica Kokish of Jones Lang LaSalle Americas represented the buyer. Please see CoStar COMPS #1957576 for more information on this transaction.

Colony apartments fetch $11.6M The Colony, one of the largest apartment communities in Casa Grande, sold for $11.6 million to Friedman and Freidman Management Co. LLC of Newport Coast, Calif. The seller was Casa Grande Apartments LLC, a Las Vegas company. The sale announcement was made by Hendrick & Partners in Phoenix, which represented the seller, along with the firm’s Tucson office. No mention was made of a buyer-broker. The 240-unit complex was built in 2003 and is bisected by a municipal park. Read more: Colony apartments fetch $11.6M - Phoenix Business Journal

NIAGARA BOTTLING TO OPEN PLANT IN WEST PHOENIX . . . BUYS FACILITY FOR $10+ MILLION August 6, 2010 Phoenix – Niagara Bottling LLC in Ontario, Calif. (Andy Peykoff, II, pres.) plans to expand into Arizona by opening a water bottling and distribution facility in Phoenix. Eventually, the bottling operation is expected to employ about 100 workers. Records show 67th Avenue Properties LLC, a company formed by Niagara Bottling, paid $10.025 million to buy a 251,668-square-foot industrial property at 275 S. 67th Avenue in Phoenix. The seller was F-Star 67th Ave., LLC, a company formed by Five Star Development in Scottsdale (Jerry Ayoub, managing member). Tom Louer of Lee & Associates Arizona Inc. in Phoenix and Paul Earnhardt of Lee & Associates in Ontario, Calif. represented the buyer. Attorney John Hink of Lewis & Roca LLP in Phoenix also worked on behalf of Niagara Bottling in completing the cash transaction. The seller was represented by Tony Lydon and Marc Hertzberg, formerly of Cassidy Turley/BRE Commercial, and now with Jones Lang LaSalle in Phoenix. Niagara Bottling, the nation’s largest, privately-owned water bottling company, plans to occupy the project by year-end. The structure is within the two-building, 500,000+ square-foot Five Star at 67th Avenue industrial park, which was developed by Five Star in 2008. Roughly 130,000 sq. ft. of the other structure is leased. Lyon and Hertzberg have the leasing assignment. Sources say Niagara Bottling looked at more than five Valley properties before settling on the Phoenix building. The Phoenix location will be the ninth bottling facility for Niagara in the country. Brian Hess is the contact at Niagara Bottling . . . (909) 980-9493. Reach Ayoub at (480) 657-7827. Call Louer at (602) 956-7777. Earnhardt is at (909) 989-7771. Hink is at (602) 262-5740. Lydon and Hertzberg are at (602) 840-9333.

OK Investor Drops $4M for Foreclosed Class A Office August 11, 2010 ANTHEM, AZ-A Norman, OK-based investor has purchased Anthem Corporate Center for $3.5 million in an all-cash transaction. The buyer, WAW Property LLC, acquire the 63,449-square foot, class A office building out of foreclosure from the lender, Wells Fargo Bank. Developed by Newport Beach, CA-based Voit Real Estate Services in 2008, Anthem Corporate Center is located within the Anthem master planned community about 20 miles north of downtown Phoenix. The two-story office building, which is situated on nearly 5.3 acres at 3719 West Anthem Dr., is vacant and in shell condition with the exception of the lobby, restrooms and hallways, which were completed.

CANADIAN INVESTOR PAYS $20.5 MILLION FOR 432 APARTMENTS IN PHOENIX August 6, 2010 Phoenix – Onni Real Estate LLC, a company formed by the Onni Group of Cos. in Vancouver, B.C., Canada. (Rossano De Cotiis, Giulio De Cotiis, Morris De Cotiis, principals), paid $20.5 million ($47,454 per unit) to buy the 432-unit Montelano apartments at 8330 N. 19th Avenue in Phoenix. The seller was a company formed by Fairfield Residential Inc. in San Diego (Chris Hashioka, pres.). The cash sale was brokered by Todd Braun, Jim Crews, Brett Polachek of Cushman & Wakefield of Arizona Inc. in Phoenix. The property was built in 1985. In April 2006, BREW reported Fairfield Residential paying $25.7 million ($59,491 per unit) to acquire Montelano (at that time called Sands Point). Fairfield Residential and its affiliates filed for bankruptcy protection last year. The purchase is the first in the Valley for the privately-held Onni Group of Cos. The company is looking for additional investment opportunities in the Phoenix area. Dan Bell of Onni says the company wants to have at least 2,000 multi-family units in the Valley. Until now, Onni Group of Cos. has been a home builder and investor in commercial, retail and industrial properties located primarily in western Canada, including British Columbia, Ontario, and Alberta. The company is in the process of expanding its investment markets to other areas in North America and Asia. Over the years, BREW has reported Fairfield Residential developing, buying and selling numerous multi-family communities in the Valley. Learn more from Bell at (604) 602-7711. The contact at Fairfield Residential is Gino Barra . . . (858) 457-2123. Call the C&W agents at (602) 253-7900.

WAW Property buys unfinished Anthem center WAW Property LLC of Salt Lake City purchased Anthem Corporate Center in Anthem for $3.5 million. The Class A, 63,400-square-foot building was sold by Wells Fargo Bank. The center was built in 2008, but never completed except for common areas. The rest of the building is just a shell condition, according to Cassidy Turley BRE Commercial in Phoenix, which announced the sale. A team from Cassidy Turley represented Wells Fargo. Commercial Properties Inc. in Tempe represented the buyer. Read more: WAW Property buys unfinished Anthem center - Phoenix Business Journal

Phoenix Flex Sells for $2.6M Layne Christensen Co. Acquires New Facility By Matt Nohelty August 5, 2010 Layne Christensen Co. purchased 3804 E. Watkins St. in Phoenix for $2.6 million, or $68 per square foot. The buyer will occupy the entire property. Built in 1996, the flex building totals 38,160 square feet on 5.5 acres. The property includes six loading docks, one drive-in door and 19,600 square feet of office space. Doug Heller of Binswanger represented the seller, Rohm and Haas Electronic Materials CMP Inc. Aric Adams of Cushman & Wakefield represented the buyer.

First Choice Medical opens Phoenix site BY Jan Buchholz August 5, 2010 First Choice Medical Supply of Mississippi is opening a distribution center in Phoenix, the company’s first facility in the Valley. The company provides products and services to the elder care industry. First Choice leased 33,000 square feet at the Buckeye 75 Distribution Center. The five-year lease was announced by Cushman & Wakefield of Arizona, which represented the landlord, Lincoln Property Co. The Business Journal was unable to reach a spokesperson with First Choice to find out when the company will open its new operation and if jobs will be available. Read more: First Choice Medical opens Phoenix site - Phoenix Business Journal

RYAN COS. TO DEVELOP FBI REGIONAL HEADQUARTERS IN DEER VALLEY AREA August 6, 2010 Phoenix – A company formed by Ryan Cos. US Inc. in Minneapolis, Mn. plans to develop a 225,000-square-foot office building in the Deer Valley area of Phoenix that will be leased by the Federal Government through the General Services Administration (GSA). The Federal Bureau of Investigations (FBI) will occupy the structure, which will serve as a regional operations headquarters. Ryan Cos. paid $8.972+ million to acquire the site for the FBI operation. The 12.2-acre parcel is at the southeast corner of 7th Street and Deer Valley Road. The seller was NV Corporate Center LLC, a venture formed by The Vazza Co. (Stephen Vazza, Rick Vazza, principals) and Fidelity Investments, both of Boston, Mass. The seller was represented by Darren Tappen, Pat Harlan, Steve Sayre and Kyle Westfall of Cushman & Wakefield of Arizona Inc. in Phoenix. Jessica Kokish of Jones Lang LaSalle in Denver, Colo. worked on behalf of the GSA. In January 2009, BREW reported the GSA issuing a request for proposals (RFP) for a development team to design, construct and maintain the north Phoenix facility. Ryan Cos. plans to start construction in October and the project is expected to be completed by year-end 2011. AECOM in Phoenix is the architect. No word on development cost, but records show Ryan Cos. has a $54 million loan from Wells Fargo Bank to acquire the land and develop the project. The FBI presently operates from about 90,000 sq. ft. in a facility in downtown Phoenix that will be closed when the agency occupies the new facility. In April 2007, BREW reported the Vazza/Fidelity venture paying $46.2 million to buy the 80 acres and planning to develop 1 million sq. ft. of office, flex, retail and hotel buildings within the Deer Valley project. John Strittmatter of Ryan Cos. is at (602) 322-6100. Talk to Derek Holt of The Vazza Co. at (617) 510-2540. The C&W agents are at (602) 253-790

iQor Leases 54,495 SF for Customer Service Center By Jennifer Duell Popovec August 3, 2010 TEMPE, AZ-iQor, a business outsourcing provider, will relocate its customer service center from Chandler to Tempe. The New York City-based company inked a 10-year lease for 50,495 square feet at 1330 W. Southern Ave.

iQor currently occupies 49,700 square feet at 55 N. Arizona Place in Chandler Office Center, according to Mike Ragland, a first vice president in CBRE’s Phoenix office. He represented iQor in its search for new space and in lease negotiations. Jerry Jacobs and Larry Downey of Cushman & Wakefield’s Phoenix office represented the landlord, Wisterok LLC of El Segundo, CA.

Ragland tells GlobeSt. that iQor’s current operations are spread across three floors in its existing location. “The relocation was initially prompted by iQor’s preference to house its entire staff on one floor,” he says, adding that the company has been a tenant at Chandler Office Center for more than 10 years.

However, iQor recently renewed a client contract that required it to have redundant power, specifically in the form of an on-site backup generator. The company’s existing building did not have a generator, although Ragland says iQor submitted a proposal to the landlord to request the installation of a backup generator.

Despite iQor’s specific requirements, the weak leasing environment afforded the company more than 50 options throughout the Valley, Ragland says. After searching for several months, iQor honed in on the three-story office building at northeast corner of Southern Avenue and Priest Drive in Tempe.

“This building allowed iQor to lease more than 50,000 square feet on one floor, plus it offered a central location, favorable economics and an on-site generator,”

Ragland says, adding that the new location also features a newly-constructed parking garage that allows for 6.5 stalls per 1,000 square feet leased. As part of the lease, iQor also received top-of-the-building signage.

iQor’s new space was previously occupied by Countrywide, which used it for a call center, Ragland says. As a result, the space was close to move-in ready. It will house 500-plus seats for 1,000 employees in two shifts.

Globally, iQor employs nearly 9,000 employees and operates 21 call centers in five countries and four continents.

Limelight Networks Relocates HQ to Tempe Gateway By Jennifer Duell Popovec August 2, 2010 TEMPE, AZ-Limelight Networks Inc. has signed on to be the first office tenant in Tempe Gateway, an eight-story, 260,000-square-foot building recently purchased by Vulcan Real Estate. The company will occupy two full floors totaling 65,000 square feet of Class A office space that will serve as its global headquarters and house more than 200 employees.

Limelight Networks, which provides on-demand software, platform, and infrastructure services for businesses to reach and engage audiences online or on any mobile device, will move into its new space starting in first quarter 2011. The company has experienced significant growth in recent years with more than 600 worldwide employees today compared to about 250 total employees two years ago.

The new Tempe Gateway headquarters allows Limelight Networks to improve efficiency and by consolidating its existing Tempe office spaces into one primary location. It also offers the opportunity for the firm to grow and expand, along with a state-of-the art customer briefing center where it can showcase its products and services.

Vulcan Real Estate purchased Tempe Gateway in June 2010 for $35 million. The acquisition marked the Seattle-based company’s first investment outside of its home market. The company, which is the real estate investment arm of Microsoft co-founder Paul Allen’s Vulcan Inc., acquired the property from the lender.

Developed by Opus West and completed in 2009, Tempe Gateway was completely vacant when Vulcan acquired it. The building is located in the heart of downtown

Tempe, a transit-oriented community characterized by a variety of housing, office and retail services. It offers an amenity-rich location with a light rail stop outside the project, situated next door to the Tempe Town Lake, surrounded by restaurants and shopping as well as in close proximity to Arizona State University.

Tempe Gateway features 30,000-square-foot floor plates and includes ground floor retail space surrounding the main lobby and a newly constructed parking structure with 1,035 spaces. It was designed and constructed as an environmentally-friendly development and is certified under the Green Globes rating program, an assessment and rating tool operated by the Green Building Initiative to evaluate and rate the energy and environmental design of buildings.

Jerry Roberts with CB Richard Ellis represented Vulcan Real Estate in the lease transaction, and Curtis Brown with Ross Brown Partners Inc. represented the tenant.

Phoenix's Top Retail Leases for Q2 2010 By Matthew Kirchwehm July 29, 2010 The following is an account of the Phoenix market’s top five retail lease transactions for second quarter 2010. Nordstrom leased 36,102 square feet at Arrowhead Crossings in Peoria. Tom Peck represented the landlord, Developers Diversified Realty, in-house. There was no reported tenant representative on the transaction. Mountain Park Health Center leased 26,077 square feet for 15 years at Maryvale Village in Phoenix. Carol Harder of Red Mountain Retail Group represented the landlord, in-house. Tom Weinhold of NAI Horizon represented the tenant. Denim & Diamonds Nightclub leased 20,000 square feet at Sun Valley Plaza in Mesa. Michael Pollack and Daniel Pollack of Michael A. Pollack Real Estate Investments represented the landlord, in-house. The tenant did not use a broker in the transaction. Party City leased 14,000 square feet at Arrowhead Marketplace in Glendale. Joe Hoye of Cowen Commercial LLC represented the tenant. There was no reported landlord representative on the transaction. The Capital Grille leased 11,800 square feet at Biltmore Fashion Park in Phoenix. Mary Boyd of Westcor Partners represented the landlord in-house. There was no reported tenant representative on the transaction.

Phoenix's Top Industrial Leases for Q2 2010 By Lindsey Hicks July 29, 2010 The following is an account of the Phoenix market’s top ten industrial lease transactions for second quarter 2010. Tower Automotive leased 460,000 square feet at 17300 W Broadway Road in Goodyear. Doug Heller and Eric Dienstbach of Binswanger represented the landlord, BET Investments Inc., and the tenant in the transaction. Closed Loop Refining & Recover Inc. leased 120,984 square feet at 435 S 59th Ave. in Phoenix. James Harrison, Natalie Dalton and Jeff Dalton of Harrison Properties represented the landlord, Berendo Property. Robert Kling of Lee & Associates represented the tenant. Linamar Solar Systems Inc. leased the entire 76,356-square-foot property at 7676 N Glen Harbor Blvd. in Glendale. Lou Finocchiaro and John Pompay of Cassidy Turley BRE Commercial represented the landlord, California Development. Paul Sieczkowski, Rob Martensen and Steve Larsen of Colliers International represented the tenant. Mobileation Inc. signed a 30-month lease for 74,718 square feet at 8313 W Pierce St. in Tolleson. Bo Mills, Mark Detmer and Will Strong of Cushman & Wakefield. represented the landlord, Liberty Property Trust. Orin Anderson of BGA Realty Partners represented the tenant. Walmart leased the entire 59,511-square-foot property at 235 S Hibbert St. The company will only occupy the temporary space for three months. John Hart, Shane McCormick and Tyson Breinholt of Commercial Properties, Inc. represented the landlord, Erenberg Brothers Partnership. David Lane and Michael McQuaid of Lee & Associates represented the tenant.

Nivel Parts & Manufacturing Co. LLC leased 56,686 square feet at 2300 S 51st Ave. in Phoenix. Bo Mills, Mark Detmer, Mike Kasulaitis and Will Strong of Cushman & Wakefield. represented the landlord, BP Riverside LLC, and the tenant. Neltec Inc. signed a one-year renewal for 53,142 square feet at 1555 W 10th Place - Bldg C in Tempe. Mark Detmer and Mike Kasulaitis of Cushman & Wakefield, Inc. represented the landlord, Cabot Properties. The tenant was represented in-house. Blue Media leased the entire 50,623-square-foot property for 10 years at 8920 S McKemy St. in Tempe. Lee & Associates represented both sides of the transaction. Rick Robertson and Jerry Marrell represented the landlord, Ontario Associates, while Andy Ogan represented the tenant. Watts Water Technologies leased 49,578 square feet at 8716 W Ludlow Drive in Peoria. Jeff Conrad, Matt Hobaica and Chris McClurg of Lee & Associates represented the landlord, First Industrial Realty Trust. John McDaniel of Mohr Partners International represented the tenant. B/E Aerospace Inc. signed a 15-year deal for 47,433 square feet at 480 N 54th St. in Chandler. Cushman & Wakefield, Inc. represented both sides of the transaction. Mark Detmer, Bo Mills, Mike Kasulaitis and Will Strong represented the landlord, Lincoln Property Co., while James Wilson represented the tenant.

Phoenix's Top Retail Sales for Q2 2010 By Matthew Kirchwehm July 29, 2010 The following is an account of the Phoenix market’s top five retail sale transactions for second quarter 2010. Earnhardt Properties Limited Partnership purchased 13680 W Test Drive in Goodyear for $7 million, or $193 per square foot. The auto dealership totals 36,236 square feet on 6.62 acres. George Haugen of Haugen Commercial Real Estate represented the seller, Capital Automotive REIT. The buyer was represented in-house. Thierry & Robin Zerbib purchased 25073 W Southern Road in Buckeye for $4.45 million, or about $300 per square foot with a 7.76% cap rate. Walgreens occupies the 14,820-square-foot property on a triple-net lease. Jamie Medress and Mark Ruble of Marcus & Millichap represented the seller, Dreamwork Management Inc. Steven Davis of Retail Investment Group LLC represented the buyers. Calvary Chapel of Phoenix, Inc. purchased 2300-2344 E Southern Ave. in Tempe for $3.8 million, or approximately $93 per square foot. The buyer occupied a portion of the 41,062-square-foot property. The seller, Joseph Enterprises Inc., and the buyer were represented in-house. Earnhardt Properties Limited Partnership purchased 6315 E Auto Park Drive in Mesa for $3.7 million, or roughly $135 per square foot. The auto dealership totals 37,264 square feet on three acres. Ted Marek and John Marek of Ted Marek Real Estate Co. represented the buyer. There was no reported seller representative in the transaction. J Hartley Kantor purchased 13832 W McDowell Road in Goodyear for $3.03

million, or roughly $595 per square foot with an 8.25% cap rate. Applebee’s occupies the 5,085-square-foot property on a 15-year triple-net lease. Jason Pongsrikul and John Wert of Marcus & Millichap represented the seller, Thomas & King Inc. There was no reported buyer representative on the transaction.

Furniture Row comes to Tempe BY Jan Buchholz August 4, 2010 The first Furniture Row retail development in the Phoenix metro area will be built in Tempe at the northeast corner of Interstate 10 and Warner Road. The announcement was made by Phoenix-based De Rito Partners Inc., which represented the Denver-based retailer in its acquisition of the land. Furniture Row paid $1.6 million for the 5-acre parcel. The seller was Emerald Phase III LLC in Phoenix. Furniture Row already has retail centers in Show Low and Yuma. Ground breaking for the Tempe center has not been determined. Furniture Row is a family-owned business formed in 1974. The company operates 330 stores in 31 states. The retail model gives consumers several choices of stores in one location. Stores that will be included in the new 70,000-square-foot development are Oak Express, Bedroom Expressions, Sofa Mart and the Denver Mattress Co. The new stores will be part of the Emerald Design Center, which is located adjacent to IKEA, part of the low-priced furniture superstore based in Sweden. Read more: Furniture Row comes to Tempe - Phoenix Business Journal

Syntellect, Viking lease HQ space August 4, 2010 Two companies have signed leases at Corridors Phoenix, a business park located at the southeast corner of Interstate 17 and Pinnacle Peak Road near Deer Valley. Syntellect Inc., a call center solutions company, is relocating its headquarters to the 2095 W. Pinnacle Peak Road building in the business park. It signed a lease for 15,400 square feet. The company is relocating from 16610 N. Black Canyon Highway. Viking Collection Services signed on for its regional headquarters. The Minneapolis-based collection and credit processing firm, leased 5,044 square feet in the same building. Corridors Phoenix was developed by the Alter Group and includes six office buildings and a Drury Inn & Suites hotel. The project is now 94 percent occupied. Brokers from CB Richard Ellis and Colliers International in Phoenix participated in the transactions. Read more: Syntellect, Viking lease HQ space - Phoenix Business Journal

Kary Environmental buys warehouse August 4, 2010 Kary Environmental Services paid $696,800 for a 13,440-square-foot warehouse and industrial building in Mesa. KES handles a range of services including asbestos consulting and abatement, chemical and soil remediation, decontamination, demolition and waste management. The company currently operates down the street. The new property is located at 641 S. Drew St. in Mesa and will allow for expansion. Colliers International-Greater Phoenix represented Kary. The seller, Kboy Investments in Mesa, was represented by Cassidy Turley in Phoenix. Read more: Kary Environmental buys warehouse - Phoenix Business Journal

MERCURY INVESTMENTS ADDS TO VALLEY APARTMENT PORTFOLIO . . . PICKS UP 306 UNITS IN TEMPE August 6, 2010 Tempe – A company formed by Mercury Investments Co. in Duluth, Mn. (Abbot Apter, principal) paid $15.4 million ($50,327 per unit) to buy the 306-unit Mission Springs apartments at 1311 W. Baseline Road in Tempe. The seller was a company formed by Nationwide Mutual Insurance Co. in Columbus, Ohio. The sale was brokered through Tyler Anderson and Sean Cunningham of CB Richard Ellis in Phoenix. The gated complex was built in 1987. The buyer acquired the property with a $11.5 million loan from Aetna Life Insurance Co. in Hartford, Conn. The loan was arranged by Rocco Mandala of CBRE Capital Markets in Phoenix. The investment is the second in the Valley for Mercury Investments in the past year. The company is interested in buying additional multi-family communities in the Valley . . . wants projects of 250+ units with good visibility that were built in the early to mid-1980's and newer. In July 2009, BREW reported Mercury Investments paying $30 million ($69,444 per unit) to buy the 432-unit Indigo Palms apartments at 3777 E. McDowell Road in Phoenix. Nationwide foreclosed on the previous owner of Mission Springs. In March 2006, BREW reported Fairfield Residential paying $28.75 million ($93,954 per unit) to purchase Mission Springs. Over the years, BREW has reported Fairfield Residential developing, buying and selling numerous multi-family communities in the Valley. Fairfield Residential and its affiliates filed for bankruptcy protection last year in the U.S. Bankruptcy Court. The privately-held Mercury Investments also owns 347 apartment units in two Valley communities it acquired in 2000 and 2003. Those projects have been converted and are being sold as condominiums. In 2005, Mercury Investments sold 1,060 apartment units in two projects it previously owned in Phoenix and Mesa. Mercury Investments also converted a 206-unit apartment complex in Mesa and

resold the units as condominiums. Get more from Apter at (218) 720-3807. Matthew Mahaffey is the contact at Nationwide . . . call him at (614) 249-4059. Anderson and Cunningham are at (602) 735-5555. Read more: Mission Springs sold for $15.4M in Tempe - Phoenix Business Journal

San Riva condo conversion sold for $15.8M August 3, 2010 Everest Holdings in Scottsdale and joint venture partner Thackeray Partners in Dallas purchased a stalled condominium conversion project in Ahwatukee. The buyers paid $15.8 million for San Riva at The Foothills, located at 2155 E. Liberty Lane. The apartment complex had been purchased in 2005 by Madison Development Group in Denver for $32.3 million. That company had intended to convert all the apartments into condominiums, but was only able to sell 50 units to buyers before the housing market tanked. The sale to Everest and Thackeray included 230 of the 280 units. The sellers were represented by Cassidy Turley in Phoenix. The buyers represented themselves. Read more: San Riva condo conversion sold for $15.8M - Phoenix Business Journal

Tempe Gateway gets first tenant

by Luci Scott Aug. 2, 2010 Fast-growing technology company Limelight Networks, which is moving its headquarters to downtown Tempe, is the first tenant to sign a lease in the new Tempe Gateway.

Tempe Gateway, an eight-story, 260,000-square-foot building at Mill and Third avenues, was bought in June by Seattle-based Vulcan Real Estate, a division of Paul Allen's Vulcan Inc. Allen co-founded Microsoft with Bill Gates.

Microsoft officials also are thinking of leasing space in the building.

Limelight, which plans to move in early next year, is taking the top two floors of the building, or 64,411 square feet, for $1.5 million a year.

The Class A office space will be home to more than 200 employees.

"Hopefully we'll move in earlier in the first quarter than later," said Doug Lindroth, Limelight's chief financial officer.

"It's a brand-new building, just a shell, so there has to be a complete build-out," Lindroth said.

Limelight is based in west Tempe near Interstate 10 and Arizona 143. Lindroth said the company analyzed the commutes of its employees and thought staying in Tempe was good for them.

"And we like the urban feel of being in downtown Tempe," he said.

The site will help attract prospective employees from Arizona State University and is on a light-rail stop, providing easy access to Phoenix Sky Harbor International Airport and other areas, he added.

Limelight has signed an eight-year lease. Many standard commercial leases are for five, seven or 10 years. The eight-year deal was part of negotiations with the

owner and the city, which provided tax incentives.

Limelight's data centers will remain where they are in Tempe and Phoenix, but the move of the headquarters represents an expansion. Lindroth said the company's total space is increasing 60 percent.

The company, which has 600 employees worldwide, is growing and hiring. About 250 employees were added in April, when Limelight acquired Atlanta-based Eyewonder.

Limelight helps companies improve the delivery of content from websites to consumers.

Limelight's customers include Netflix, Microsoft, Amazon and ESPN.

"Let's say you wanted to watch a video from Amazon or Netflix, and you wanted to download a video to your computer," Lindroth said. "If you didn't utilize us, oftentimes as you're viewing it - because the broadband connection may not be that good - you would not get a good experience."

Limelight can optimize the video and cut out the buffering or jerkiness.

Limelight also improves delivery to mobile devices such as iPhones and BlackBerry phones.

Robert Arron, Vulcan's senior director of real-estate marketing and leasing, said interest among potential tenants at Tempe Gateway has been strong.

"We've been in discussions with several companies," he said. "We've had great activity, and I think in part because it's just a great building. It's so well located. It's brand new. It's got great freeway visibility, and it's close to so many amenities."

Tempe Gateway was Vulcan Real Estate's first acquisition outside Seattle, and the company is looking at other properties in metro Phoenix and Southern California.

Arron is pleased that Limelight signed.

"We think it's wonderful that our first tenant is a homegrown tenant that originated in that area," he said. "It's a real testament to the area where they started. . . . We feel honored to be part of that."

Limelight was founded in 2001.

The property manager of Tempe Gateway will be CB Richard Ellis. In the lease deal, Jerry Roberts with CB Richard Ellis represented Vulcan Real Estate. Curtis Brown with Ross Brown represented Limelight Networks.

Read more: http://www.azcentral.com/arizonarepublic/business/articles/2010/08/01/20100801biz-tempe-gateway-gets-first-tenant-0802.html#ixzz0vTq4WEwz

TESTIMONIALS “Victor has been great about showing us opportunities that are right in line with our requirements. He is very creative in solving problems and overcoming objections. His diligence and persistence has helped us complete several terrific acquisitions. A real asset for our team.” Bret Jordan, Vice President Western America Equities LLC

“I use your publications, Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More, on a monthly basis. Both publications are helpful in keeping me updated on what’s happening in the market. I would recommend both of them to friends and colleagues.” David A. Damore, Esq., Partner Berry & Damore, LLC

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“As you know, Ethan Christopher Arizona LLC does most of its business in Phoenix, Arizona with corporate headquarters in Encino, CA. Praedium Advisors’ newsletters helps me keep abreast of the most important developments that are going on in the marketplace. This information has proved to be very insightful for our organization and we look forward to enjoying the edge this resource allows us. Thank You” Aric Browne, Partner Ethan Christopher Arizona LLC

“We met Victor Allison in 2004. Within one week, he had located a property for us that we acquired. It has performed exceptionally well. Shortly thereafter, he also located an off-market medical office building and successfully negotiated with the seller to gain acceptance of our offer, even though other brokers were telling the seller that they could get a higher price. We have been very pleased with the properties located by Victor and his service to us. We have found him to be knowledgeable, trustworthy and very good to work with.” Jim Clark, President Western America Equities, LLC

“Your monthly newsletter is fantastic because it’s timely & comprehensive and in turn offers me an accurate snapshot of what’s happening in the market. I look forward to it every month!” Joe Holeva, Member MH Devco/Mohawk Ranch Ph 2/Avondale Business Park

“I love the insight that your newsletter provides our company. I look forward to the next edition.” Spike Lawrence, Partner Lawrence & Geyser Development

“I wanted to drop you a short note to let you know how much I appreciate your electronic newsletters. Having an ongoing summary of major real estate happenings in the Phoenix market is highly useful and saves me a great deal of time knowing that I can get the information I need all in one place. Keep up the great work!” Richard Zigler, President Kaplan Acquisitions, LLC

“As a NAREmeritus with 50 years of experience, I am most selective of professional relationships. Victor Allison has tried over time to deliver information in a very professional manner. Although we do not represent the public as a broker, Victor's service is a great efficiency device. Receiving only properties information that we are interested in saves much valuable time.” Charlie Wilson, RIM, CIC, NARE Metro Investing “I have come to rely on the Praedium newsletter as a valuable resource of information and trends in Arizona markets.” Tim Brown, Partner Demko Investment Group, LLC

“... despite representing a difficult buyer Victor Allison's negotiating skills kept both parties focused on the transaction instead of personalities. We ultimately closed escrow with a win/win situation for both buyer and seller.” Stephen C. Park, Managing Member Park / Gibbs Development Company, LLC

“I find your Phoenix Commercial Real Estate News & More to be a time saver for me. It has articles from several publications so if I can’t get time to read one or more of them, I catch them in your news letter. Keep up the good work. Thanks.” Mark Singerman, Regional Director Arizona Rockefeller Group Development Corporation

“Our experience working with Victor Allison couldn't have been better. He had all of the bases covered when it came to helping us lease one of our more challenging retail properties. Victor was particularly adept at screening and prepping tenant prospects, and that made our lease transactions flow quickly and smoothly.” Kurt Lefteroff Pacific Ridge, Inc.

“I would like to thank you for the assistance and sound advice you gave to me in the leasing of my office space here on Gainey Ranch. Your professionalism assisted me greatly in getting the very best deal I could here, which not only included getting an excellent dollar per square foot rate, but in also procuring free rent for signing the contract. Through your expertise I feel I had an edge in my dealings with the management company, and did not allow them to take advantage of my relative inexperience in the commercial real estate market. Thank you again.” Steven Bernstein Allstate Insurance Co.

“I read the Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More newsletters from “cover to cover” each month. The newsletters help me to focus on client projects that are or will be changing to meet the current real estate market. Knowing what is successfully being completed helps to plan future projects. I have recommended your newsletter to my associates and my clients. My associates need to be up to date on developments that may affect current or future projects. My clients benefit from knowing information on real estate transactions, so they can then plan their acquisitions accordingly. I will continue to watch the newsletter, to be better informed, when a real estate deal that I want to invest in presents itself. Current and, factual information in the newsletter will affect my future acquisitions. Thank you Victor.” Allan R. Converse Principal TeamConverse LLC

“Victor Allison is the personification of what a good broker ought to be. Knowledgeable in the market area, flexible, creative and tenacious. Whether it was finding tenants or marketing a shopping center Praedium was responsive and honest…” Jack Walker, President English & Continental Properties

“Victor Allison & Praedium Advisors' monthly newsletter is an invaluable source of news and intelligence on the Phoenix commercial real estate market. I highly value my subscription to Praedium Advisors' publications (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More) because they save me so much time and trouble: Praedium researches and publishes all the important news and the most important transactions in Phoenix commercial real estate. Many thanks to Victor Allison and Praedium Advisors for their extremely valuable and informative monthly newsletters (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More). These are the two most important sources of news and information that I read. These newsletters contain important details about the people and companies doing all the different deals in Phoenix. I can quickly know what is going on, where it is going on and who is doing it. This is the most up to date information on commercial deals deals going on all across the Phoenix market. It is useful for investors, developers, brokers and all the businesses related to same. Many thanks, Victor.” Ken Yamaguchi, Southwest Regional Director SCI Real Estate Investments, LLC

“We wholeheartedly endorse Victor as one of the most accomplished brokers we have worked with in our 30 years of collective experience. Victor is by far the most responsive broker we work with. He is always a step ahead in terms of gathering information to get a transaction done. Victor is thorough, prompt and reliable.” Francesca Godi and Marino Godi, Principals The Godi Group

“As usual it was a pleasure to get your market news—you know I'm not as active as I once was, and simply don't get out and keep my finger on the pulse of things. Getting your e-mails helps give me a "feel" of the market. Keep up the good work.” Charles “Chuck” Winslow, President Winslow Enterprises, Ltd.

“Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More help us to keep up to date with Phoenix's marketplace. With all the negative press today, it's helpful to see what's really going on from a real estate professional's prospective.” Jerry Turboff, President Prime Capital Corp.

“I have known, and worked with Victor Allison, for many years. In all of our real estate dealings he has handled them very professionally, and promptly, which makes him a pleasure to work with. A man of the highest of integrity. If Victor tells me something, I can "bank it". What more could a person ask for?” Charles E. “Chuck” Winslow Winslow Enterprises

“I look forward to reading Victor's monthly newsletters. The comprehensive summary of transactions and market news helps our group stay on top of current market conditions. They have been a valuable resource.” Mike Demko, Partner Demko Investment Group, LLC

“Your monthly newsletter is fantastic because it’s timely & comprehensive and in turn offers me an accurate snapshot of what’s happening in the market. I look forward to it every month!” Joe Holeva, Member MH Devco/Mohawk Ranch Ph 2/Avondale Business Park

“I love the insight that your newsletter provides our company. I look forward to the next edition.” Spike Lawrence, Partner Lawrence & Geyser Development

“I really look forward to receiving your newsletters every month. They're an invaluable service that keeps me on top of Phoenix's commercial real estate news and deals. Keep up the good work!” Randy McGrane, Managing Director Ensemble Investments, LLC

HOW TO ALWAYS GET THE HIGHEST PRICE FOR YOUR PROPERTY

Every property owner wants to get the highest price whenever they're selling or leasing their property. That's one of the main reasons why people own property in the first place...to maximize their returns and the money they make while owning the property. With this in mind it's interesting to observe some owners doing things that are in direct conflict with what will have them receive the most amount of money for their property. When selling or leasing your property, the way to maximize the amount of money you receive for it is to get the word out to the greatest number of people who would be interested in it. Yet there are property owners who prefer not tell many people about their property, and they end up just putting their own sign on it. Or even worse they won't even put a sign on it, and they won't advertise it anywhere either. This approach almost guarantees you receiving considerably less money for your property, as compared with if you instead did what would maximize its exposure to the kind of people who would be interested in it. The most–savvy investors want to buy properties that are not on the open market, because they know that's when they make their best investment purchases. They love being the only people negotiating with owners without any competitors even knowing that the property is available, because that's when they can buy property for the lowest prices. An owner simply can't receive the highest price for their property when there are many potentially interested parties who don't even know that their property is available. Think about it for a moment...If you had a used car that you wanted to sell which of the following two approaches do you think would bring you the highest price for it? 1) Placing flyers advertising the car in the mailboxes of the 10 closest houses to your own 2) Advertising the car in the used car section of the newspaper with the greatest circulation in your area Clearly the second choice is the one more likely to bring you the highest price for your car, because it has a much greater chance of reaching the people who are looking to buy a car like yours. The 10 neighbors living the closest to you may not be in the market for a car like yours, but one of them may be willing to "take it off your hands" for a price considerably less than your asking price. And in the process you might think this was the best price you could have obtained for the car. So similarly, if you don't list your property and put it on the open market when you're ready to sell or lease it, you're more likely to receive a lower price for it. There's a reason why the most successful companies and investors list their properties when making them available to the public. Because they know that the exposure their properties will receive will result in the highest price imaginable for them, and they won't be leaving any of their own money on the table at the same time.

VICTOR ALLISON’S NINE POINT, PROPERTY SPECIFIC MARKETING ACTION PLAN

It's important in marketing your property for you that we do everything that will ensure that you receive the highest price for it. That's why I've put together my Nine Point Marketing Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Not all properties can or should be marketed using the same marketing plan. Being a boutique marketing brokerage without layers of management, PRAEDIUM Advisors is able to adapt quickly and adopt effective, new marketing methods before they hit the mainstream brokerage houses. I do not take on more marketing assignments than I can effectively handle at one time ensuring my time is devoted to selling your property until the job is done. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining the highest possible sales price in the shortest possible time. 1 – PREPARE YOUR PROPERTY FOR SALE I work with you to understand your short–term and long–term real estate goals and how they will impact both the direct and network marketing tools available to us. My goal is to advise, educate, and guide you through the sales process.

• I discuss marketing and any sales confidentiality issues important to you so they can be integrated into the marketing plan.

• I identify property value enhancement opportunities that can be profitably implemented before the sale to maximize your sales price.

EXPERT VALUATION • I review current market, submarket, and financing conditions to establish a

competitive price for your property so it will sell quickly. 2 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, sales motivating, marketing materials are created to make your property stand out from competing properties and capture the attention of buyers.

• Marketing materials include high–quality digital photographs and/or video of your property.

• Two versions of marketing materials are created: a full–color Teaser Flyer for the initial contact with buyers that provides just enough information to motivate buyers to contact me for the full marketing package. The full–color Offering Memorandum contains sufficient information for a buyer to prepare a Letter of Intent. The Offering Memorandum is never push marketed ensuring I capture the contact information of interested buyers for personalized and direct follow–up conversations. A Confidentiality Agreement is used if appropriate.

• The flyer and full OM are produced in both print and .pdf formats to market your property by both direct mail and email and to adapt to buyer preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website and/or we can contract with a firm like Real Capital Markets.

3 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors and developers. The FileMaker software platform can sort the database into the sometimes exclusive investor/developer sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your property is targeted to the proper prospective investor and/or developer group. New investors/developers are added to the database each week and it is continuously updated for accuracy and relevancy. 4 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active marketing is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters and brochures used in this program dramatically enhances the effectiveness of my marketing plan. I do not sit back and wait for phone calls or emails to come in.

OutsideBrokerParticipation

I recognize the importance of working with other investment brokers on a nationwide basis. The number of prospects grows immeasurably with proper promotion to the brokerage community. I actively push your property from the outset of my marketing campaign to the investment brokerage community with full acknowledgement that they have access to buyers not in our database. Again, and unlike some of our largest competitors, I return my fellow broker's calls promptly and treat outside brokers with the utmost care and respect. I prefer split my commission if it means selling your property sooner! 5 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively market and sell your property is the Internet. Unless you have confidentiality issues I place your property on Loopnet (Premium Access Member), CoStar, and possibly Real Capital Markets and other web–based marketing venues. I also create a new web page on PRAEDIUM Advisors’ website devoted to marketing your property. This ensures your property is exposed to thousands of investors, real estate professionals and agents around the world. Additionally, I am a subscriber to several proprietary email Listservers distributing push email marketing messages to thousands of targeted subscribers. PRINT MEDIA Depending on the specific characteristics of your property I may market it in selected local and/or national print media.

SIGNAGE If appropriate I will place the largest viable clean, bright, professional For Sale sign on your property positioning it for maximum visibility and impact. 6 – INQUIRIES & SHOWINGS

• I respond to all leads and inquiries within minutes, not days. • I personally represent you at all showings and employ our seasoned salesmanship to

facilitate the optimum opportunity for a sale. • I assist buyers with financing options if needed. • I review terms of all LOIs with you and, as an experienced negotiator, I draft an

appropriate counter–offer. • I avoid dual agency representation issues in the event that a buyer does not have

their own broker representation ensuring I always negotiate in your best interest. 7 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 8 – CONTRACT & ESCROW I coordinate with the buyer and seller, their respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next marketing assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

VICTOR ALLISON’S NINE POINT, CLIENT SPECIFIC PROPERTY ACQUISITION PLAN

It's important when searching for a property for you that I do everything that will ensure that you see several properties that match your acquisition criteria. That's why I've put together my Nine Point Acquisition Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Being a boutique acquisition brokerage without layers of management, PRAEDIUM Advisors is able to adapt and react quickly assuring you are seeing multiple opportunities that match your acquisition criteria. I do not take on more acquisition assignments than I can effectively handle at one time ensuring my time is devoted to finding a property meeting your investment objectives. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining a property meeting your investment objectives. 1 – DEVELOPING AND UNDERSTANDING YOUR ACQUISITION CRITERIA I listen to you to understand your short–term and long–term real estate investment objectives and develop a specific, written Acquisition Plan with you that delineates your acquisition criteria and objectives. My goals are to find properties matching your acquisition criteria, and to advise, educate, and guide you through the acquisition process.

• I discuss any confidentiality issues important to you so they can be integrated into your acquisition plan.

• I review current market and (if appropriate) submarket conditions to assure your

expectations are realistic. 2 – BUYER REPRESENTATION AGREEMENT There are several advantages of entering into an exclusive buyer representation agreement with an experienced acquisition broker:

We enter into a written agreement wherein I am obligated to use my best efforts to locate properties that best meet your objectives with the goal of purchasing a property that closely matches your acquisition criteria. My responsibilities include:

• Notifying owners/developers/agents with properties that may match your acquisition

criteria of your acquisition criteria.

• Winnowing through they myriad of properties submitted by owners/developers/ agents and presenting only those properties that match your acquisition criteria.

• Analyzing and submitting the prospective properties in a standardized format thereby eliminating the disparity in the presentation methods of the owners/developers/agents.

• I (or your attorney) craft a Letter of Intent to acquire the target property.

• I negotiate aggressively in your best interest based on my knowledge of current

market conditions.

• I assist in locating and securing the best available financing (if necessary).

• I keep you informed of feedback from the marketplace and solicit feedback from you concerning my performance.

• You deal only with one broker thereby eliminating unsolicited inquiries from other

agents and the necessity to re–educate each new agent with your acquisition criteria.

• I endeavor compensated by the property owner or listing agent.

• Response from owners and listing agents is more positive and timely when they realize that you are a serious buyer since you have engaged a broker to identify and qualify properties for you.

• If either of us is unhappy with the other’s performance, our relationship can be

terminated upon 30 day’s notice. 3 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, motivating, marketing materials are created to make you stand out from competing buyers and capture the attention of owners/developers/agents.

• The marketing materials are produced in both print and .pdf formats to solicit properties by both direct mail and email and to adapt to seller preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website promoting your acquisition criteria.

4 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors, developers, and real estate agents. The FileMaker software platform can sort the database into the sometimes exclusive owner/developer/agent sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your acquisition criteria is targeted to those owners/developers/agents who will have properties matching your acquisition criteria. New owners/developers/agents are added to my database each week and it is continuously updated for accuracy and relevancy.

5 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active solicitation is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters, emails and brochures used in this program dramatically enhances the chances of finding a property matching your acquisition criteria. 6 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively solicit for properties is the Internet. In addition to my proprietary database I subscribe to several online, targeted email Listservers that push market to their membership (sometimes numbered in the thousands). This ensures your acquisition criteria is exposed to thousands of owners, developers, real estate professionals and agents around the world. 7 – CONTRACT NEGOTIATIONS & ESCROW

• I review terms of all LOIs with you and, as an experienced negotiator, I draft an appropriate counter–offer.

• I avoid dual agency representation issues in the event that a seller does not have their own broker representation ensuring I always negotiate in your best interest.

• I coordinate with you and seller, their agent, your respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale.

8 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next acquisition assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

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Phoenix Commercial Real

Estate Deals & More

July 2010 Edition

Victor Allison

Your Phoenix Commercial Real Estate Brokerage

Specialist

602.320.6200

Selected, recent newswire articles for the metro Phoenix area dedicated to ensuring you are always on top of all the latest news and trends that may

affect your property values and that will assist you in your real estate decision–making processes.

www.praedium-advisors.com

Victor’s Insider Scoop on Product/Idea Adoption … Here’s the bell curve that we are all familiar with. The x-axis denotes time and the y-axis indicates the number of people that respond to a new idea or product. The original source is the Diffusion of Innovations, by Rogers.

The little green tail on the left represents the few, the brave, the innovators. These are the geeks and the nerds that love new gadgets or a new idea. These are the guys (mostly) that camp out at the Apple Store for the privilege of buying the new iPhone 4 or the iPad on the day they are released.

The black segment next to it are the early adopters. They embrace new ideas that help them run their lives more productively. This group wants the iPhone 4 but they’re not willing to stand in line to get it. They’ll show up at the Apple Store two weeks after the launch so they can walk out with their new phone in less than 15 minutes.

The orange group picks up new ideas a little more slowly. These are the folks who bought an iPhone 3gs last year and, although they think the iPhone 4 has some neat

new features, they’re just not compelled to buy now since their 3gs currently meets all their needs.

The yellow group completes the mass market. This group will buy the iPhone 4 next year but not until they can get it at a discount after the iPhone 4s is out.

The blue group are the laggards. The only thing they can do with their phones is make calls and they figure that’s all they need because that’s what phones are for.

So the theory says that if you want to introduce your radical new idea you should market to the green group because they’ll motivate the black group which passes the word on to the mass (orange-yellow) market.

The problem is that for most ideas, products, or markets (the iPhone being an obvious exception) nothing happens.

Very few people will become early adopters because people don’t care about marketers and because they have inertia. It’s always easier to do nothing new.

Consider today’s AOL subscribers. There was a time, back in the day when the internet was new, I was an AOL user – an early adopter. But then I realized that AOL was not the internet and I got out. But inertia has kept a satisfied core group within the confines of the limited AOL experience.

The challenge for marketers today is to invent a product or service or idea or meme that’s so innovative, so compelling that the tiny green portion of the curve, the geeks in whatever market you’re targeting, can’t ignore your offer. And, that once they adopt what you’re selling, they can’t help but spread it for you and you have a naturally occurring viral market.

This is the challenge anyone with a business to grow or an idea to spread has to overcome.

Dedicated To Multiplying Your Income

PS – If you are not getting the results you deserve from your antiquated brokers give me a call at 602-320-6200. I have many innovative ideas I can implement to increase your bottom line!

VALLEY LAW FIRM LEAVING CENTRAL CORRIDOR FOR CAMELBACK ESPLANADE July 30, 2010 Phoenix – The Phoenix law firm Warner Angle Hallam Jackson & Formanek PLC is relocating from Central Avenue in Phoenix to the Camelback Esplanade mixed-use project at the southeast corner of 24th Street and Camelback Road. The 50-year-old full-service law firm has signed a 13-year lease to occupy just under 18,000 sq. ft. in a 10-story, 230,000-square-foot office structure at 2555 E. Camelback Road. The building, called Esplanade V, is owned by Metropolitan Life Insurance Co. in New York City, N.Y. Sources say the lease has a value of $6+ million. The law firm was represented by Bob Crum of Ross Brown Partners in Scottsdale. Larry Downey and Jerry Jacobs of Cushman & Wakefield of Arizona Inc. in Phoenix represented Metropolitan Life. Warner Angle Hallam Jackson & Formanek, formed in 1959, will take most of the 8th floor of the Esplanade office building. The space previously was occupied by Opus West Corp., a Phoenix-based developer that filed bankruptcy and shut down its operations. The partners in the 20+ lawyer firm are Ted Warner, Jerry Angle, Charlie Hallam, Stephen Jackson and Dean Formanek. The law firm expects to occupy the Esplanade office by February. The firm is relocating from leased space at 3550 N. Central Avenue. In September 2005, BREW reported Met Life paying $155 million ($355.50 per foot) to acquire Esplanade V and Esplanade IV, an 11-story, 206,000-square-foot office structure located at 2575 E. Camelback Road. Call Warner Angle Hallam Jackson & Formanek at (602) 264-7101. Reach Crum at (480) 362-9581. Downey and Jacobs are at (602) 253-7900.

WEIDNER ADDS TO VALLEY APARTMENT PORTFOLIO . . . PICKS UP 952 UNITS FOR $71.2 MILLION July 30, 2010 Gilbert – Companies formed by Weidner Apartment Homes in Kirkland, Wash. (Dean Weidner, principal) paid $71.205 million to purchase three Valley apartment communities totaling 952 units. Companies formed by Gray Development Group in Phoenix (Bruce Gray, Paul Fannin, Mike Clow, partners) were the sellers of two projects totaling 732 units. Weidner paid $31.525 million ($65,000 per unit) to buy Indigo at Trianna, 485 units at 13300 N. 88th Avenue in Peoria. Key Bank N.A. provided financing for $22.067 million of that purchase. Weidner paid $19.68 million ($80,000 per unit) to acquire Barossa at Trianna, 246 units located at 13720 N. 88th Avenue in Peoria. Key Bank provided $13.776 million in financing for that acquisition. Both projects were built by Gray Development and were targeted for foreclosure after Gray Development defaulted on loans owed to Key Bank. The sales to Weidner were short sales. Tyler Anderson and Sean Cunningham of CB Richard Ellis in Phoenix brokered the transactions. In a third deal, Weidner paid $20 million ($90,909 per unit) to buy the 220-unit Sonoma Landing apartments at 4776 E. Guadalupe Road in Gilbert. The seller was CTA Venture No. 9 LLC in Aspen, Colo. (Colin Trueman, principal). The transaction was brokered by Mark Forrester and Rich Holway of Hendricks & Partners in Phoenix. The buyer financed the deal with a $11.95 million loan from Amerisphere Multifamily Finance LLC of Omaha, Neb., a direct underwriter servicer lender for Fannie Mae. Financing was arranged by James DuMars, Kurt Boettcher and Greg Benjamin of NorthMarq Capital LLC in Phoenix. Trueman acquired Sonoma Landing in 2001 through a pre-sale deal with the developer. With the acquisitions, companies formed by Weidner now own seven apartment complexes in the Phoenix and Tucson areas totaling 2,054 units. Kevin Colard, senior acquisitions manager at

Weidner, says the company is looking for more multi-family projects in Phoenix and Tucson. In the next two years, Weidner expects to own 3,000 multi-family units in the Valley and 1,500 units in the Tucson area. Weidner manages its apartment projects. The company owns 26,000+ units in Washington, Alaska, Colorado, Texas, Arizona and western Canada. In March, BREW reported the privately-held Weidner making its entry into the Arizona market with the acquisition of the 340-unit Trillium Villas apartments at 10847 W. Olive Avenue in Peoria. Get more from Collard at (425) 821-3844. Contact Brian Kearney of Gray Development at (602) 954-0109. Trueman is at (970) 544-6969. The CB agents are at (602) 735-5555. The Hendricks agents are at (602) 955-1122

Phoenix's Top Industrial Leases for Q2 2010 By Lindsey Hicks July 29, 2010 The following is an account of the Phoenix market’s top ten industrial lease transactions for second quarter 2010. Tower Automotive leased 460,000 square feet at 17300 W Broadway Road in Goodyear. Doug Heller and Eric Dienstbach of Binswanger represented the landlord, BET Investments Inc., and the tenant in the transaction. Closed Loop Refining & Recover Inc. leased 120,984 square feet at 435 S 59th Ave. in Phoenix. James Harrison, Natalie Dalton and Jeff Dalton of Harrison Properties represented the landlord, Berendo Property. Robert Kling of Lee & Associates represented the tenant. Linamar Solar Systems Inc. leased the entire 76,356-square-foot property at 7676 N Glen Harbor Blvd. in Glendale. Lou Finocchiaro and John Pompay of Cassidy Turley BRE Commercial represented the landlord, California Development. Paul Sieczkowski, Rob Martensen and Steve Larsen of Colliers International represented the tenant. Mobileation Inc. signed a 30-month lease for 74,718 square feet at 8313 W Pierce St. in Tolleson. Bo Mills, Mark Detmer and Will Strong of Cushman & Wakefield. represented the landlord, Liberty Property Trust. Orin Anderson of BGA Realty Partners represented the tenant. Walmart leased the entire 59,511-square-foot property at 235 S Hibbert St. The company will only occupy the temporary space for three months. John Hart, Shane McCormick and Tyson Breinholt of Commercial Properties, Inc. represented the landlord, Erenberg Brothers Partnership. David Lane and Michael McQuaid of Lee & Associates represented the tenant.

Nivel Parts & Manufacturing Co. LLC leased 56,686 square feet at 2300 S 51st Ave. in Phoenix. Bo Mills, Mark Detmer, Mike Kasulaitis and Will Strong of Cushman & Wakefield. represented the landlord, BP Riverside LLC, and the tenant. Neltec Inc. signed a one-year renewal for 53,142 square feet at 1555 W 10th Place - Bldg C in Tempe. Mark Detmer and Mike Kasulaitis of Cushman & Wakefield, Inc. represented the landlord, Cabot Properties. The tenant was represented in-house. Blue Media leased the entire 50,623-square-foot property for 10 years at 8920 S McKemy St. in Tempe. Lee & Associates represented both sides of the transaction. Rick Robertson and Jerry Marrell represented the landlord, Ontario Associates, while Andy Ogan represented the tenant. Watts Water Technologies leased 49,578 square feet at 8716 W Ludlow Drive in Peoria. Jeff Conrad, Matt Hobaica and Chris McClurg of Lee & Associates represented the landlord, First Industrial Realty Trust. John McDaniel of Mohr Partners International represented the tenant. B/E Aerospace Inc. signed a 15-year deal for 47,433 square feet at 480 N 54th St. in Chandler. Cushman & Wakefield, Inc. represented both sides of the transaction. Mark Detmer, Bo Mills, Mike Kasulaitis and Will Strong represented the landlord, Lincoln Property Co., while James Wilson represented the tenant.

Phoenix's Top Office Leases for Q2 2010 By Joyce McLaughlin July 28, 2010 The following is an account of the Phoenix market's top 10 office lease transactions for second quarter 2010. eBay signed a 10-year lease for the entire 188,730-square-foot Chandler Echelon I in Chandler. Jeffrey Wentworth, Blake Hastings, Michael Haenel and Andy Markham of Cassidy Turley BRE Commercial represented the tenant. The landlord, The Delta Corp., was represented in-house. IQor, Inc. signed a 10-year deal for 50,000 square feet at 1330 W. Southern Ave. in Tempe. Jerry Jacobs and Larry Downey of CB Richard Ellis represented the landlord, Wisterok LLC. Mike Ragland of CB Richard Ellis represented the tenant. Gammage & Burnham PLC leased 31,200 square feet at the Renaissance Square in Phoenix. The landlord, Hines, and the tenant were represented in-house. Brookline College leased 26,485 square feet at 2141 E. Highland Ave. in Phoenix. John Cerchiai and Fred Darche of Lee & Associates represented the landlord, TIAA-CREF. Lindsey Carlson of Colliers International represented the tenant. Parsons Brinckerhoff Freeway Program Management leased 25,135 square feet at the Papago Gateway Center in Tempe. Mark Stratz and Tyler Wilson of Cassidy Turley represented the landlord, Chestnut Properties LLC. Chris Jantz of Cassidy Turley BRE Commercial represented the tenant. Clark Hill PLC leased 23,00 square feet at The Pinnacle in Kierland IV in Scottsdale. Craig Coppola, Jim Watkins and Andrew Cheney represented the landlord, Furst Properties LLC. Robert Palffy of Advocate Commercial Real Estate Advisors represented the tenant.

Nationwide Credit leased 22,551 square feet at 1130 E University Drive in Tempe. Mark Gustin, Karsten Peterson and Dave Seeger of Trammell Crow Co. represented the landlord, St. Paul Fire and Marine Insurance. Bryce Terveen of CB Richard Ellis represented the tenant. JP Morgan Chase leased 21,706 square feet at 100 Centerpoint in Tempe. Mark Seale and Chris Krewson of Lee & Associates represented the landlord, Brookfield Properties Management. The tenant was represented in-house. Equiant Financial Services leased 17,350 square feet at 5401 N. Pima Road in the Chaparral Business Park in Scottsdale. Jim Fijan, Jerry Roberts and Corey Hawley of CB Richard Ellis represented the landlord, Lincoln Property Co. Kevin Calihan of CB Richard Ellis represented the tenant. Phoenix Union High School District leased the entire 16,120-square-foot building at 2920 N. 7th St. in Phoenix. Chris Ackel, Pat Horan, and Tyler Hannay represented the landlord, Fourth Burroughs LLC. Michelle Zerbib of Cassidy Turley BRE Commercial represented the tenant.

Phoenix's Top Office Sales for Q2 2010 By Joyce McLaughlin July 28, 2010 The following is an account of the Phoenix market’s top five office sale transactions for second quarter 2010. Vulcan Inc. purchased 222 S. Mill Ave., a 259,171-square-foot building in Tempe, for $35 million, or roughly $135 per square foot. Jim Fijan, Jerry Roberts and Corey Hawley of CB Richard Ellis represented the seller, US Bancorp. The buyer was represented in-house. GoDaddy.com purchased the three-building Scottsdale Tech Center in Scottsdale, for $12.5 million, or about $81 per square foot. Bob Buckley, Tracy Cartledge, Blake Hastings, Mike Kitlica, Steve Lindley and Jeffrey Wentworth represented the seller, Crown Realty & Development. The buyer did not use outside representation. Reqent Properties purchased West 101 Corporate Center, an 81,635-square-foot property at 1860 N. 95th Lane in Phoenix, for $7.05 million, or about $86 per square foot. The buyer and seller did not use outside representation. Affinitas Corp. purchased the three-building office complex at Gilbert Business Center in Gilbert for $4.23 million, or approximately $53 per square foot. The transaction was subject to the terms of a short sale. Cassidy Turley BRE Commercial represented both sides of the transaction. Eric Wichterman represented the seller, Heritage Bank, while Gregg Sherman and Matt Nebeker represented the buyer. Arizona Agribusiness and Equine Center acquired six condo units at the Coronado Professional Plaza in Avondale for $4.04 million, or $175 per square foot. The buyer will occupy the 23,095-square-foot property as a Charter School. Drew Price

and Tyler Smith of Colliers International represented the seller, Dysart Osborn LLC. Joel Moyes of Kinetic Companies represented the buyer.

PayPal center coming to Chandler

by Luci Scott Jul. 23, 2010 The online auction company eBay is expanding its PayPal division in Chandler.

The company has signed a 10-year lease on a four-story office building, Chandler Echelon I, on Price Road near Loop 202.

The San Jose-based company is expected to hire an unspecified number of customer-service employees and move into the building this fall. The structure includes more than 188,000 square feet, but PayPal won't occupy the entire building immediately. Workers will be added as the company expands.

"It's going to be a much stronger investment than just a call center," said Barry Broome, CEO of the Greater Phoenix Economic Council.

Broome has seen the projected salaries and says they indicate some higher-level jobs in addition to call center positions. He declined to specify the salaries.

The company has 300 eBay and PayPal employees on 90th Street south of Scottsdale Healthcare Shea. It moved into that spot in July 2006.

"We have found a wealth of quality candidates in the area, allowing us to recruit and retain talented employees," eBay spokeswoman Sara Parker said.

Christine Mackay, Chandler's director of economic development, said the company considered expanding at its existing sites around the country, including Omaha.

Among the advantages that sold eBay on Chandler, said Chandler Mayor Boyd Dunn were location, quality employees, educational institutions and Chandler's interest in environmental issues.

The company will boost Chandler's efforts to promote the Price Corridor, Dunn said. Other businesses in the area include Intel, Orbital Sciences, Wells Fargo and the Continuum business park to be built on the former Motorola site.

Four new businesses opening up in Tempe

by Dianna M. Náñez Jul. 23, 2010 The old saying, "When one door closes, another opens," could become a mantra for downtown Tempe.

At least four independently-owned businesses are scheduled to open next month in the Mill Avenue District, taking over spaces where other businesses couldn't survive.

Downtown Tempe stakeholders have long pushed for more independent businesses after watching a slew of chain stores close in the past decade.

Nancy Hormann, president of Downtown Tempe Community Inc., which manages downtown for area landowners, hopes Valley residents will support the new business ventures of people living in their community.

Kanpai Sushi restaurant is opening at Seventh Street and Mill Avenue where Uno Chicago Grill closed late last year after a long run serving deep-dish pizza. Canteen Modern Tequila Bar will try to make a go of it at Sixth Street and Mill,another high-profile downtown corner where Region's Bistro & Bar opened and closed twice in just over a year.

The tequila bar is backed by Julian Wright, who has had success on Mill with La Bocca, a restaurant and wine bar that draws regulars for cocktails, brick-oven pizzas and bruschetta.

Stan's Metro Deli is making a comeback downtown after closing about a decade ago. The popular traditional Jewish deli first closed in 1990 after a kitchen grease fire destroyed its building. The deli reopened in downtown Tempe, only to close in the late 1990s shortly after the business was sold.

Stan's is expected to open in August with the original owners at the southwestern corner of Fourth Street and Mill, in a space where two Vietnamese restaurants closed in the past couple of years.

Qiana Shaw and Roy Wilson are finally debuting Poppa Maize, a gourmet popcorn shop, next to MADCAP Theater just west of Mill and Seventh Street.

Shaw, a Youngtown resident, and Wilson, a Phoenix resident, had such success with their popcorn shop in north Phoenix that many customers lobbied for a Southeast Valley location.

But opening on Mill was only a dream for the two friends until the Downtown Tempe Community sponsored a free-rent-on-Mill-Avenue contest last year. The contest accepted proposals from a host of independent entrepreneurs hoping to win one year of free rent. Poppa Maize was selected to open at DMB Associate's Centerpoint on Mill complex, which stretches from University Drive to Sixth Street along Mill, in a space formerly occupied by a Sportsfan sports apparel store.

Winning the contest gave Shaw and Wilson the financial boost they needed to afford the expansion.

"We're really excited . . . we're going to bring 26 of the most unusual flavors of popcorn to downtown Tempe. Like our Phoenix store, we plan to make it a fun place to be," she said.

Poppa Maize sells flavors as exotic as cake batter, white chocolate cherry and blueberries and wings and ranch, in addition to more traditional fare like candy bar caramel and cheesy chipotle. Sodas in unusual flavors will be added to the Tempe menu.

Shaw invites Southeast Valley residents to visit the shop and propose their own crazy popcorn concoctions.

"Cookies and cream was actually a customer request for our Phoenix store. It was so popular we kept it on our menu," Shaw said.

Hormann says Mill Avenue District restaurants seeing success have focused on service, quality food and making customers feel like they are among friends.

"You have to create that familiarity downtown . . . become a place where people know you when you walk in the door and maintain that community friendliness," she said.

Also helping businesses is a campaign to market the availability of free or affordable parking downtown, which was promoted after many customers complained about paying for parking to shop or eat on Mill.

Hormann highlighted a paved lot at Fifth Street and Farmer Avenue that offers free parking except during major events. A lot with 267 spaces at Maple Avenue and Fifth Street is free for the first hour and the City Hall parking garage at Fifth Street and Forest Avenue offers free covered parking for the first hour and charges nothing after 6 p.m. and on the weekends.

Read more: http://www.azcentral.com/business/news/articles/2010/07/23/20100723tempe-downtown-businesses0723.html#ixzz0vU2c3W1k

BEAZER HOMES PAYS $6.5 MILLION FOR 232 LOTS AT SURPRISE FARMS July 23, 2010 Surprise – Beazer Homes Holding Corp. in Tempe (Kent Lay, pres.) paid just under $6.5 million to purchase 232 developed lots within the Surprise Farms community in Surprise. The seller was a company formed by DBSI Development in Boise, Idaho (Douglas Swenson, et al., principals). The property was sold through the United States Bankruptcy Court. The cash transaction was brokered by Grant Helgeson, Don McCaul and Ryan Arp of Westland Properties Group in Scottsdale. The homes sites are located at the northwest corner of Citrus and Greenway roads. Of the lots, 49 average 6,000 sq. ft. (50x120), 25 average 6,600 sq. ft. (55x120), 102 average 7,200 sq. ft. (60x120) and 56 average 9,375 sq. ft. (75x125). Beazer plans to build on all of the lots but will consider trading a portion for developed home sites located elsewhere. Beazer intends to construct homes ranging from 1,300 sq. ft. to 3,800 sq. ft. The three-, four-, five- and six-bedroom units are expected to be priced from $128,000 to $235,000. Models slated to open in January 2011. Build out expected to take three years. Beazer Homes in Tempe is a subsidiary of Beazer Homes USA in Atlanta, Ga. (NYSE:BZH). The parent company provides financing. Myron Spencer, v.p. of land acquisitions at Beazer Homes, says the company is looking to purchase more residential land in the Valley. Beazer Homes was the top bidder among three entities that pursued acquiring the Surprise Farms lots through the bankruptcy court. In August 2008, BREW reported DBSI Development paying $9.29 million to buy the finished lots. The company filed for bankruptcy protection and its assets are being liquidated. Find out more from Spencer at (480) 921-4665. Talk to Joe Austin of DBSI by calling (208) 489-2523. Reach the Westland Properties agents at (480) 443-8570.

Continental Realty Drops $46M on MF Property By Jennifer Duell Popovec July 23, 201 PHOENIX-Continental Realty Advisors has acquired The Canyons, a 629-unit luxury apartment community, for $45.5 million in an all-cash transaction. The buy marks the Denver-based firm’s re-entry into Phoenix after it exited the market in early 2007.

“One of the things that told us to get out of the market was that we were being out-bid by $8 million to $10 million, and we thought we were being aggressive,” says David Snyder, chairman of Continental Realty Advisors. “But, we believe in Phoenix in the long-run, and we think it’s time for us to come back into the market. Valuations have corrected to a point where they're attractive.”

The Denver-based buyer acquired The Canyons via its CRA-B1 Investment Fund from special servicer LNR Property. The Canyons is the largest multifamily asset to be offered by a lender, according to the marketing brochure created by CBRE’s local investment sales team of Tyler Anderson, Sean Cunningham and Chris Brozina. It was listed at $52.66 million.

LNR Property foreclosed on The Canyons in November 2009. The previous owner was local investor S-J Management, which purchased the property in May 2006 for $80.8 million or $128.34 per unit.

“There were quite a number of owners that purchased properties at a pricing level, that if the market didn't continue to improve dramatically, they weren’t going to hit projected cash flows,” Snyder explains. “Not only did the market stall out, it went down.”

Located at 19940 North 23rd Ave., The Canyons is situated at the intersection of

Interstate 17 and the Loop 101 Freeway. The nearby employment center is the largest in north Phoenix and includes: USAA, Discover Financial Services, Cox Communication, PetSmart headquarters, Best Western headquarters, John C Lincoln Deer Valley Hospital and the new WL Gore & Associates campus.

Nearby retail and dining includes the Deer Valley Town Center with a 30-screen AMC theater, Target, and totaling over 500,000 square feet of shops and restaurants just across I-17 from the Property. In addition, the Desert Ridge Marketplace is just minutes across the Loop 101, with over 1.2 million square feet of varied retail and dining and entertainment facilities.

“The location is the biggest attraction,” Snyder tells GlobeSt.com, noting the proximity to the employment base and retail amenities. “Being at the intersection of two freeways is very convenient for commuters.”

The Canyons offers studio, one-, two- and three-bedroom units in two distinct communities, Bacara at The Canyons and Montelena at The Canyons. Units range from 475 square feet to 1,166 square feet and rent for $679 to $1,249 per month. Amenities include: gourmet kitchens, a 24-hour fitness center, theater and DVD library and Wi-Fi accessibility around the four pools and in the clubhouse.

At the time of acquisition, The Canyons was 65% occupied, according to Snyder. “The submarket where the property is located is 94% occupied, so we’re looking to stabilize the property,” he says, adding that his firm has hired Greystar to handle the property’s leasing and management.

Continental Realty Advisors is planning almost $2 million dollars in renovations. “There’s a fair amount of deferred maintenance,” Snyder says. The renovations will include updates to the security systems, parking, exterior paint and clubhouse improvements featuring an expansion of the fitness center. Some of the interiors will be updated as well.

“The acquisition will ultimately be characterized as value-added, but we just don't try to force the market,” Snyder says. “We don’t think Phoenix is going to have a lot of recovery on rent rates until 2012. We have a very patient attitude with the properties we're buying.”

Snyder says Continental Realty Advisors is looking to bulk up its portfolio in the southwest including Phoenix, Las Vegas, Dallas and Houston. The firm also is looking in the Midwest markets of Indianapolis and Louisville, KY.

Panattoni Conducts Double-Escrow Sale in Tempe Industrial Buildings Change Hands By Shane Beyer July 22, 2010 Panattoni Development purchased two manufacturing buildings totaling 46,492 square feet, located at 2055 and 2075 E Fifth St in Tempe, AZ, from a California investment group for $1.48 million, or $32 per square foot. The purchase was the first leg of a double escrow. Panattoni then sold 2075 E Fifth to LAFA Properties LLC, an owner/user that plans to occupy the building, for $915,000. Both building are on the corner of Fifth Street and Rockford Drive in the Rockford Corporation Center. Kurt Saulnier and Mike Wallis of DAUM Commercial represented the seller in the first leg, while Patrick Harlan of Cushman & Wakefield represented Panattoni in both transactions. Steve Larsen of Colliers International represented the buyer on the second leg. Please see CoStar COMPS # 1943877 and 1943882 for more information on this transaction.

Gardner-Gibson Buys Phoenix Warehouse for $2.3M E&J Gallo Winery Sells 75,000-SF Facility in Reywest Commerce Center By David Whitmore July 21, 2010 Gardner-Gibson Inc. purchased an industrial building in the Reywest Commerce Center in Phoenix for $2.25 million, or approximately $30 per square foot. The Tampa-based manufacturer of coatings and sealers plans to take occupancy in six to eight months. Located at 4035 W Adams St., the 74,529-square-foot warehouse building includes 8,228 square feet of office space, twenty dock-high overhead doors, one drive-in door and heavy power. Patrick Feeney, Daniel Calihan and Rusty Kennedy of CB Richard Ellis represented the seller, E & J Gallo Winery. Chris McClurg of Lee & Associates represented Gardner-Gibson. Please reference CoStar COMPS #1942384 for more information.

Vacant Motor Mile dealerships in Scottsdale start to sell

by Jane Larson Jul. 19, 2010 Buyers have started snapping up some of the vacant auto dealerships on Scottsdale's once-prosperous Motor Mile at bargain prices.

The former Chrysler Jeep, Hyundai and Isuzu buildings in the Scottsdale Auto Park, at 64th Street and McDowell Road, sold in late March to a company owned by Scottsdale-based SunChase Holdings Inc.

The former Scott Toyota dealership at 6850 E. McDowell sold two months ago to Scottsdale developer Elliott Glasser.

The former Scott Nissan building at 7000 E. McDowell is in escrow to a landscaping company.

And though the building is not part of the proposed deal, Mesa auto dealer Brent Berge has put in a bid for the Powell Volvo dealership at 6500 E. McDowell.

In the biggest transaction so far, McDowell 64 LLC acquired the Chrysler location and other buildings on 10.5 acres in the Scottsdale Auto Park. Pitre Properties Ltd. sold the property for $3.5 million, broker Ted Marek of Ted Marek Real Estate said.

The buildings once housed Power Chrysler Jeep, Power Hyundai and Power Isuzu. AutoNation Inc. closed the Isuzu dealership and sold the others last year to Chapman Automotive Group, which moved the brands to its complex on the south side of McDowell.

Power Subaru and Powell Volvo are the only dealerships still open in the Auto Park, hailed as a one-stop mall for car buyers when it opened in 1988.

McDowell 64 is led by Philip Handley and William Pope, longtime Valley developers and members of SunChase Holdings. SunChase's website calls the company "an opportunistic investor" interested in "acquiring distressed real estate."

The Auto Park buildings remained vacant and fenced-off late this week, and SunChase executives did not return calls for comment on their plans.

Broker Marek speculated that the group would lease out the space for auto storage in the short term and hold it "for future value." The Auto Park corner was identified as a possible site for a hotel or resort that would capitalize on its proximity to Papago Park during discussions of the McDowell Corridor/Southern Scottsdale Economic Development Task Force.

Glasser bought the Toyota property, with three buildings totaling 100,000 square feet on 5.1 acres, from auto dealer Larry Miller's Miller Family Real Estate Inc. of Sandy, Utah. Marek put the price at $2.6 million, but Glasser said closing and other costs brought his outlay to nearly $5 million. The deal closed two months ago, Glasser said.

Glasser said he is negotiating with a company to add a fast-food restaurant/gas station to the property. A bank is interested in taking the corner of 68th Street, and a mini-storage company is interested in using the garage, he said.

The Nissan property is being sold for nearly $2 million, Marek said. The buyer plans to use the space for its landscaping trucks and operations, he said.

The seller is Scottsdale Nissan Realty Inc., led by Las Vegas auto dealer John Staluppi. Marek's website said the price for the 32,401-square-foot building and 3.8 acres had been $7 million, then $6.3 million, adding the owner "wants the property gone . . . will listen to all offers."

Also in play is Powell Volvo, which along with parent company Powell's International Inc. filed for Chapter 11 reorganization in U.S. Bankruptcy Court in February.

Berge, CEO of Fiesta Lincoln Mercury Inc. in Mesa, bid $1 million in June for the Volvo dealership's inventory of new and used vehicles, parts, supplies and fixtures. The bid did not include the building and land in the Auto Park.

A Bankruptcy Court hearing on the sale is set for Aug. 3. Berge said the deal depends on whether Volvo approves his purchase. If so, he said he would move the dealership to Mesa and combine it with his Lincoln dealership at Mesa Drive and U.S. 60.

ROCKBRIDGE CAPITAL ASSEMBLES SITE IN TEMPE . . . COULD BE FUTURE ASU STUDENT HOUSING July 16, 2010 Tempe – In two separate transactions, companies formed by RockBridge Capital LLC in Columbus, Ohio (Ron Callentine, chairman) have acquired 3.9 acres located east of the southeast corner of Apache Boulevard and Rural Road in Tempe. The property, which includes the former Americas Best Value Inn, is located at the southeastern edge of the Arizona State University campus. Representatives of RockBridge Capital say the company is exploring its options for the land and declined to discuss possible uses. Sources say the property has C2 zoning in place, which could allow for various types of development. The most likely scenario will include the site being used for a student housing development. The privately-held RockBridge Capital is an investment firm focused on the hospitality industry. Since 1992, RockBridge Capital has invested nearly $5 billion in more than 325 assets located across the country. The investments include first mortgages, mezzanine debt and equity. RB Tempe LLC (formed by RockBridge) paid a combined $4 million to assemble the Tempe property. The company paid $1.75 million to purchase the 88-room Americas Best Value Inn at 1005 E. Apache Boulevard. The seller was ABVI Tempe Holdings LLC in San Luis Obispo, Calif. (David Hennessy, pres.). The cash transaction was brokered by Bill Murney of HREC Investment Advisors in Phoenix. The 40-year-old hotel, which has since been closed, sits on a 1.78-acre site. The hotel will be razed for future development. Immediately to the west and to the south, RB Tempe LLC paid $2.25 million to acquire a 2.12-acre parcel located at 919 E. Apache Boulevard and 934 and 940 E. Spence Avenue. The seller was 915 Apache LLC in Newport Beach, Calif. (David Wani, managing member). Records show the buyer financed that acquisition through a “reduction

in existing mortgage loan.” Representative of RockBridge declined to discuss details of that transaction and Wani did not return calls from BREW. The phone number at RockBridge Capital is (614) 246-2400. Talk to Wani at (949) 734-6400. Reach Murney at (602) 499-5535.

Arizona Hardwood Floor Buys Industrial for $1M Buyer Plans to Move Warehouse/Showroom to New Facility By Yvonne Pacheco July 7, 2010 Arizona Hardwood Floor Supply purchased the industrial building at 910 S 67th Ave. in Phoenix, AZ, for $1.09 million, or $68 per square foot, from Wrightwood Capital. Built in 2008, the property totals 16,087 square feet and is in the Phoenix Industry Center at 67th. Arizona Hardwood Floor purchased the facility as an owner/user and plans to move its warehouse/showroom at 1515 E Hadley St. to the new location. Patrick Harlan, Steve Sayre, and Kyle Westfall with Cushman & Wakefield represented the seller. Ted Liles and Lance Ross with Ross Property Advisors represented the buyer. Please refer to CoStar COMPS # 1927347 for more information on the transactio

ACACIA CAPITAL BOLSTERS APARTMENT PORTFOLIO BY ACQUIRING 699 UNITS July 9, 2010 Mesa – A company formed by investor Wes Clelland of Acacia Capital Corp. in Phoenix paid $33.35 million to acquire 699 apartment units in two projects in Mesa. The seller in two transactions was General Electric Credit Equities Inc. in Addison, Tex. PHX Broadway 12-B LLC (formed by Acacia Capital) paid $18.15 million ($45,949 per unit) to purchase the 395-unit Argenta apartments at 4104 E. Broadway Road. The company formed by Acacia Capital acquired the apartment complex with a $6.9 million downpayment and a $11.25 million loan from Fannie Mae. PHX Extension 12-B LLC paid $15.2 million ($50,000 per unit) to buy the 304-unit Verona Park apartments at 1666 S. Extension Road. The buyer purchased the rental community with a $4.494 million downpayment and a $10.706 million loan from Fannie Mae. Both Argenta and Verona Park were foreclosed from the previous owner. In January 2007, BREW reported investor Thomas Fair of Bronco RE Corp. in San Rafael, Calif. paying $27.65 million ($69,823 per unit) to buy Argenta (at that time called Chelsea Park). In November 2006, BREW reported Fair’s company paying $22.65 million ($74,506 per unit) to purchase Verona Park (at that time called Sunridge). With the acquisitions, Acacia Capital now owns 11 rental communities in the Phoenix area with a total of 2,901 apartment units. The privately-held firm owns roughly 10,000 multi-family units in 30 projects located in Arizona, California, Oregon, Utah and Nevada. Acacia Capital is looking for additional apartment properties in the Valley, as well as other markets. The Mesa acquisitions represent the first apartment investments for Acacia Capital in the Phoenix area in almost three years. In September 2007, BREW reported Acacia Capital paying $25.4 million ($99,219 per unit) to acquire The Village at Lindsay Park, a 256-unit apartment project at 1441 S. Lindsay Road in Mesa. Also in September 2007, BREW reported Acacia Capital paying $22.85 million ($92,137

per unit) to purchase the 248-unit Pheasant Run apartments at 2101 N. Evergreen Street in Chandler. The contact for Acacia Capital is Todd Darling . . . reach him at (650) 372-6472.

SO. CAL.-BASED INVESTOR SPENDS $7.85 MILLION FOR 220 APARTMENTS IN TWO PHOENIX PROJECTS July 9, 2010 Phoenix – PHX Capital L.P. in Calabasas, Calif. (Mark Kanter, Chris Renard, managers) paid $7.85 million to purchase two apartment complexes in Phoenix totaling 220 units. The seller in two separate transactions was Paul Carlson, a court appointed receiver from Rancho Santa Margarita, Calif. for investors Russell W. Bill and Marcia A. Bill of Fountain Valley, Calif. PHX Capital paid $4.325 million ($32,037 per unit) to buy the 135-unit Papago Vista apartments at 5312 E. Taylor Street. The company acquired the asset with a $432,500 downpayment and by assuming a $3.892 million loan issued by IMPAC Commercial Capital Corp. That mortgage was reduced from a $6.6 million loan originally issued to the previous owner. The beneficiary is Deutsche Bank National Trust Co., as trustee for the registered holders of Impac Secured Assets Corp. Mortgage Pass-Through Certificates Series 2006-5. In August 2006, BREW reported the Bills paying $9.4 million ($69,630 per unit) to acquire Papago Vista. In the other acquisition, PHX Capital paid $3.525 million ($41,471 per unit) to acquire the 85-unit Colonia apartments at 4115 E. Indian School Road. The buyer acquired the project with a $353,000 downpayment and by assuming a $3.172 million loan issued by IMPAC Commercial Capital Corp. That mortgage was reduced from $4.275 million originally issued to the Bills. The beneficiary is the same as the other loan. In September 2006, BREW reported paying $6.65 million ($78,235 per unit) to buy Colonia. Kanter and Renard are principals in Commercial Realty Consultants Inc., a privately-held real estate investment firm in Calabasas. In June, BREW reported Kanter and Renard entering the Valley multi-family market with the purchase of the 98-unit Silver Tree apartments at 4336 N. 35th Avenue in Phoenix. The company paid $1.825 million ($18,622 per unit) to buy that property. Kanter and

Renard could not be reached for comment, but sources say the So. Calif.-based investors are looking to purchase additional multi-family assets in the Valley. Get more from Kanter and Renard at (818) 222-2800.

Investor Purchases Phoenix Industrial for $1.3M EastGroup Properties Acquires Fully Leased Building By David Whitmore July 7, 2010 EastGroup Properties Inc. purchased the industrial building at 2250 S Seventh St. in Phoenix for $1.3 million, or approximately $40 per square foot, at a cap rate of 10.21%. The property is fully leased to Injected Plastics Co. on a triple-net lease, which runs thru February 2013. The manufacturing building completed construction in 1980 and measures 31,518 square feet. Features include heavy power, five loading docks, and nine drive-in bays. Leroy Breinholt and Darin Edwards of Commercial Properties Inc. represented the seller, RRS & Co. Ken McQueen of Lee & Associates represented EastGroup. Please refer to CoStar COMPS #1929253.

TESTIMONIALS “Victor has been great about showing us opportunities that are right in line with our requirements. He is very creative in solving problems and overcoming objections. His diligence and persistence has helped us complete several terrific acquisitions. A real asset for our team.” Bret Jordan, Vice President Western America Equities LLC

“I use your publications, Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More, on a monthly basis. Both publications are helpful in keeping me updated on what’s happening in the market. I would recommend both of them to friends and colleagues.” David A. Damore, Esq., Partner Berry & Damore, LLC

“Honest, responsive and knowledgeable.” Russ Watson North American Development Group

“As you know, Ethan Christopher Arizona LLC does most of its business in Phoenix, Arizona with corporate headquarters in Encino, CA. Praedium Advisors’ newsletters helps me keep abreast of the most important developments that are going on in the marketplace. This information has proved to be very insightful for our organization and we look forward to enjoying the edge this resource allows us. Thank You” Aric Browne, Partner Ethan Christopher Arizona LLC

“We met Victor Allison in 2004. Within one week, he had located a property for us that we acquired. It has performed exceptionally well. Shortly thereafter, he also located an off-market medical office building and successfully negotiated with the seller to gain acceptance of our offer, even though other brokers were telling the seller that they could get a higher price. We have been very pleased with the properties located by Victor and his service to us. We have found him to be knowledgeable, trustworthy and very good to work with.” Jim Clark, President Western America Equities, LLC

“Your monthly newsletter is fantastic because it’s timely & comprehensive and in turn offers me an accurate snapshot of what’s happening in the market. I look forward to it every month!” Joe Holeva, Member MH Devco/Mohawk Ranch Ph 2/Avondale Business Park

“I love the insight that your newsletter provides our company. I look forward to the next edition.” Spike Lawrence, Partner Lawrence & Geyser Development

“I wanted to drop you a short note to let you know how much I appreciate your electronic newsletters. Having an ongoing summary of major real estate happenings in the Phoenix market is highly useful and saves me a great deal of time knowing that I can get the information I need all in one place. Keep up the great work!” Richard Zigler, President Kaplan Acquisitions, LLC

“As a NAREmeritus with 50 years of experience, I am most selective of professional relationships. Victor Allison has tried over time to deliver information in a very professional manner. Although we do not represent the public as a broker, Victor's service is a great efficiency device. Receiving only properties information that we are interested in saves much valuable time.” Charlie Wilson, RIM, CIC, NARE Metro Investing “I have come to rely on the Praedium newsletter as a valuable resource of information and trends in Arizona markets.” Tim Brown, Partner Demko Investment Group, LLC

“... despite representing a difficult buyer Victor Allison's negotiating skills kept both parties focused on the transaction instead of personalities. We ultimately closed escrow with a win/win situation for both buyer and seller.” Stephen C. Park, Managing Member Park / Gibbs Development Company, LLC

“I find your Phoenix Commercial Real Estate News & More to be a time saver for me. It has articles from several publications so if I can’t get time to read one or more of them, I catch them in your news letter. Keep up the good work. Thanks.” Mark Singerman, Regional Director Arizona Rockefeller Group Development Corporation

“Our experience working with Victor Allison couldn't have been better. He had all of the bases covered when it came to helping us lease one of our more challenging retail properties. Victor was particularly adept at screening and prepping tenant prospects, and that made our lease transactions flow quickly and smoothly.” Kurt Lefteroff Pacific Ridge, Inc.

“I would like to thank you for the assistance and sound advice you gave to me in the leasing of my office space here on Gainey Ranch. Your professionalism assisted me greatly in getting the very best deal I could here, which not only included getting an excellent dollar per square foot rate, but in also procuring free rent for signing the contract. Through your expertise I feel I had an edge in my dealings with the management company, and did not allow them to take advantage of my relative inexperience in the commercial real estate market. Thank you again.” Steven Bernstein Allstate Insurance Co.

“I read the Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More newsletters from “cover to cover” each month. The newsletters help me to focus on client projects that are or will be changing to meet the current real estate market. Knowing what is successfully being completed helps to plan future projects. I have recommended your newsletter to my associates and my clients. My associates need to be up to date on developments that may affect current or future projects. My clients benefit from knowing information on real estate transactions, so they can then plan their acquisitions accordingly. I will continue to watch the newsletter, to be better informed, when a real estate deal that I want to invest in presents itself. Current and, factual information in the newsletter will affect my future acquisitions. Thank you Victor.” Allan R. Converse Principal TeamConverse LLC

“Victor Allison is the personification of what a good broker ought to be. Knowledgeable in the market area, flexible, creative and tenacious. Whether it was finding tenants or marketing a shopping center Praedium was responsive and honest…” Jack Walker, President English & Continental Properties

“Victor Allison & Praedium Advisors' monthly newsletter is an invaluable source of news and intelligence on the Phoenix commercial real estate market. I highly value my subscription to Praedium Advisors' publications (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More) because they save me so much time and trouble: Praedium researches and publishes all the important news and the most important transactions in Phoenix commercial real estate. Many thanks to Victor Allison and Praedium Advisors for their extremely valuable and informative monthly newsletters (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More). These are the two most important sources of news and information that I read. These newsletters contain important details about the people and companies doing all the different deals in Phoenix. I can quickly know what is going on, where it is going on and who is doing it. This is the most up to date information on commercial deals deals going on all across the Phoenix market. It is useful for investors, developers, brokers and all the businesses related to same. Many thanks, Victor.” Ken Yamaguchi, Southwest Regional Director SCI Real Estate Investments, LLC

“We wholeheartedly endorse Victor as one of the most accomplished brokers we have worked with in our 30 years of collective experience. Victor is by far the most responsive broker we work with. He is always a step ahead in terms of gathering information to get a transaction done. Victor is thorough, prompt and reliable.” Francesca Godi and Marino Godi, Principals The Godi Group

“As usual it was a pleasure to get your market news—you know I'm not as active as I once was, and simply don't get out and keep my finger on the pulse of things. Getting your e-mails helps give me a "feel" of the market. Keep up the good work.” Charles “Chuck” Winslow, President Winslow Enterprises, Ltd.

“Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More help us to keep up to date with Phoenix's marketplace. With all the negative press today, it's helpful to see what's really going on from a real estate professional's prospective.” Jerry Turboff, President Prime Capital Corp.

“I have known, and worked with Victor Allison, for many years. In all of our real estate dealings he has handled them very professionally, and promptly, which makes him a pleasure to work with. A man of the highest of integrity. If Victor tells me something, I can "bank it". What more could a person ask for?” Charles E. “Chuck” Winslow Winslow Enterprises

“I look forward to reading Victor's monthly newsletters. The comprehensive summary of transactions and market news helps our group stay on top of current market conditions. They have been a valuable resource.” Mike Demko, Partner Demko Investment Group, LLC

“Your monthly newsletter is fantastic because it’s timely & comprehensive and in turn offers me an accurate snapshot of what’s happening in the market. I look forward to it every month!” Joe Holeva, Member MH Devco/Mohawk Ranch Ph 2/Avondale Business Park

“I love the insight that your newsletter provides our company. I look forward to the next edition.” Spike Lawrence, Partner Lawrence & Geyser Development

“I really look forward to receiving your newsletters every month. They're an invaluable service that keeps me on top of Phoenix's commercial real estate news and deals. Keep up the good work!” Randy McGrane, Managing Director Ensemble Investments, LLC

HOW TO ALWAYS GET THE HIGHEST PRICE FOR YOUR PROPERTY

Every property owner wants to get the highest price whenever they're selling or leasing their property. That's one of the main reasons why people own property in the first place...to maximize their returns and the money they make while owning the property. With this in mind it's interesting to observe some owners doing things that are in direct conflict with what will have them receive the most amount of money for their property. When selling or leasing your property, the way to maximize the amount of money you receive for it is to get the word out to the greatest number of people who would be interested in it. Yet there are property owners who prefer not tell many people about their property, and they end up just putting their own sign on it. Or even worse they won't even put a sign on it, and they won't advertise it anywhere either. This approach almost guarantees you receiving considerably less money for your property, as compared with if you instead did what would maximize its exposure to the kind of people who would be interested in it. The most–savvy investors want to buy properties that are not on the open market, because they know that's when they make their best investment purchases. They love being the only people negotiating with owners without any competitors even knowing that the property is available, because that's when they can buy property for the lowest prices. An owner simply can't receive the highest price for their property when there are many potentially interested parties who don't even know that their property is available. Think about it for a moment...If you had a used car that you wanted to sell which of the following two approaches do you think would bring you the highest price for it? 1) Placing flyers advertising the car in the mailboxes of the 10 closest houses to your own 2) Advertising the car in the used car section of the newspaper with the greatest circulation in your area Clearly the second choice is the one more likely to bring you the highest price for your car, because it has a much greater chance of reaching the people who are looking to buy a car like yours. The 10 neighbors living the closest to you may not be in the market for a car like yours, but one of them may be willing to "take it off your hands" for a price considerably less than your asking price. And in the process you might think this was the best price you could have obtained for the car. So similarly, if you don't list your property and put it on the open market when you're ready to sell or lease it, you're more likely to receive a lower price for it. There's a reason why the most successful companies and investors list their properties when making them available to the public. Because they know that the exposure their properties will receive will result in the highest price imaginable for them, and they won't be leaving any of their own money on the table at the same time.

VICTOR ALLISON’S NINE POINT, PROPERTY SPECIFIC MARKETING ACTION PLAN

It's important in marketing your property for you that we do everything that will ensure that you receive the highest price for it. That's why I've put together my Nine Point Marketing Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Not all properties can or should be marketed using the same marketing plan. Being a boutique marketing brokerage without layers of management, PRAEDIUM Advisors is able to adapt quickly and adopt effective, new marketing methods before they hit the mainstream brokerage houses. I do not take on more marketing assignments than I can effectively handle at one time ensuring my time is devoted to selling your property until the job is done. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining the highest possible sales price in the shortest possible time. 1 – PREPARE YOUR PROPERTY FOR SALE I work with you to understand your short–term and long–term real estate goals and how they will impact both the direct and network marketing tools available to us. My goal is to advise, educate, and guide you through the sales process.

• I discuss marketing and any sales confidentiality issues important to you so they can be integrated into the marketing plan.

• I identify property value enhancement opportunities that can be profitably implemented before the sale to maximize your sales price.

EXPERT VALUATION • I review current market, submarket, and financing conditions to establish a

competitive price for your property so it will sell quickly. 2 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, sales motivating, marketing materials are created to make your property stand out from competing properties and capture the attention of buyers.

• Marketing materials include high–quality digital photographs and/or video of your property.

• Two versions of marketing materials are created: a full–color Teaser Flyer for the initial contact with buyers that provides just enough information to motivate buyers to contact me for the full marketing package. The full–color Offering Memorandum contains sufficient information for a buyer to prepare a Letter of Intent. The Offering Memorandum is never push marketed ensuring I capture the contact information of interested buyers for personalized and direct follow–up conversations. A Confidentiality Agreement is used if appropriate.

• The flyer and full OM are produced in both print and .pdf formats to market your property by both direct mail and email and to adapt to buyer preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website and/or we can contract with a firm like Real Capital Markets.

3 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors and developers. The FileMaker software platform can sort the database into the sometimes exclusive investor/developer sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your property is targeted to the proper prospective investor and/or developer group. New investors/developers are added to the database each week and it is continuously updated for accuracy and relevancy. 4 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active marketing is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters and brochures used in this program dramatically enhances the effectiveness of my marketing plan. I do not sit back and wait for phone calls or emails to come in.

OutsideBrokerParticipation

I recognize the importance of working with other investment brokers on a nationwide basis. The number of prospects grows immeasurably with proper promotion to the brokerage community. I actively push your property from the outset of my marketing campaign to the investment brokerage community with full acknowledgement that they have access to buyers not in our database. Again, and unlike some of our largest competitors, I return my fellow broker's calls promptly and treat outside brokers with the utmost care and respect. I prefer split my commission if it means selling your property sooner! 5 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively market and sell your property is the Internet. Unless you have confidentiality issues I place your property on Loopnet (Premium Access Member), CoStar, and possibly Real Capital Markets and other web–based marketing venues. I also create a new web page on PRAEDIUM Advisors’ website devoted to marketing your property. This ensures your property is exposed to thousands of investors, real estate professionals and agents around the world. Additionally, I am a subscriber to several proprietary email Listservers distributing push email marketing messages to thousands of targeted subscribers. PRINT MEDIA Depending on the specific characteristics of your property I may market it in selected local and/or national print media.

SIGNAGE If appropriate I will place the largest viable clean, bright, professional For Sale sign on your property positioning it for maximum visibility and impact. 6 – INQUIRIES & SHOWINGS

• I respond to all leads and inquiries within minutes, not days. • I personally represent you at all showings and employ our seasoned salesmanship to

facilitate the optimum opportunity for a sale. • I assist buyers with financing options if needed. • I review terms of all LOIs with you and, as an experienced negotiator, I draft an

appropriate counter–offer. • I avoid dual agency representation issues in the event that a buyer does not have

their own broker representation ensuring I always negotiate in your best interest. 7 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 8 – CONTRACT & ESCROW I coordinate with the buyer and seller, their respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next marketing assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

VICTOR ALLISON’S NINE POINT, CLIENT SPECIFIC PROPERTY ACQUISITION PLAN

It's important when searching for a property for you that I do everything that will ensure that you see several properties that match your acquisition criteria. That's why I've put together my Nine Point Acquisition Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Being a boutique acquisition brokerage without layers of management, PRAEDIUM Advisors is able to adapt and react quickly assuring you are seeing multiple opportunities that match your acquisition criteria. I do not take on more acquisition assignments than I can effectively handle at one time ensuring my time is devoted to finding a property meeting your investment objectives. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining a property meeting your investment objectives. 1 – DEVELOPING AND UNDERSTANDING YOUR ACQUISITION CRITERIA I listen to you to understand your short–term and long–term real estate investment objectives and develop a specific, written Acquisition Plan with you that delineates your acquisition criteria and objectives. My goals are to find properties matching your acquisition criteria, and to advise, educate, and guide you through the acquisition process.

• I discuss any confidentiality issues important to you so they can be integrated into your acquisition plan.

• I review current market and (if appropriate) submarket conditions to assure your

expectations are realistic. 2 – BUYER REPRESENTATION AGREEMENT There are several advantages of entering into an exclusive buyer representation agreement with an experienced acquisition broker:

We enter into a written agreement wherein I am obligated to use my best efforts to locate properties that best meet your objectives with the goal of purchasing a property that closely matches your acquisition criteria. My responsibilities include:

• Notifying owners/developers/agents with properties that may match your acquisition

criteria of your acquisition criteria.

• Winnowing through they myriad of properties submitted by owners/developers/ agents and presenting only those properties that match your acquisition criteria.

• Analyzing and submitting the prospective properties in a standardized format thereby eliminating the disparity in the presentation methods of the owners/developers/agents.

• I (or your attorney) craft a Letter of Intent to acquire the target property.

• I negotiate aggressively in your best interest based on my knowledge of current

market conditions.

• I assist in locating and securing the best available financing (if necessary).

• I keep you informed of feedback from the marketplace and solicit feedback from you concerning my performance.

• You deal only with one broker thereby eliminating unsolicited inquiries from other

agents and the necessity to re–educate each new agent with your acquisition criteria.

• I endeavor compensated by the property owner or listing agent.

• Response from owners and listing agents is more positive and timely when they realize that you are a serious buyer since you have engaged a broker to identify and qualify properties for you.

• If either of us is unhappy with the other’s performance, our relationship can be

terminated upon 30 day’s notice. 3 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, motivating, marketing materials are created to make you stand out from competing buyers and capture the attention of owners/developers/agents.

• The marketing materials are produced in both print and .pdf formats to solicit properties by both direct mail and email and to adapt to seller preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website promoting your acquisition criteria.

4 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors, developers, and real estate agents. The FileMaker software platform can sort the database into the sometimes exclusive owner/developer/agent sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your acquisition criteria is targeted to those owners/developers/agents who will have properties matching your acquisition criteria. New owners/developers/agents are added to my database each week and it is continuously updated for accuracy and relevancy.

5 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active solicitation is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters, emails and brochures used in this program dramatically enhances the chances of finding a property matching your acquisition criteria. 6 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively solicit for properties is the Internet. In addition to my proprietary database I subscribe to several online, targeted email Listservers that push market to their membership (sometimes numbered in the thousands). This ensures your acquisition criteria is exposed to thousands of owners, developers, real estate professionals and agents around the world. 7 – CONTRACT NEGOTIATIONS & ESCROW

• I review terms of all LOIs with you and, as an experienced negotiator, I draft an appropriate counter–offer.

• I avoid dual agency representation issues in the event that a seller does not have their own broker representation ensuring I always negotiate in your best interest.

• I coordinate with you and seller, their agent, your respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale.

8 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next acquisition assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

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Phoenix Commercial Real

Estate Deals & More

June 2010 Edition

Victor Allison

Your Phoenix Commercial Real Estate Brokerage

Specialist

602.320.6200

Selected, recent newswire articles for the metro Phoenix area dedicated to ensuring you are always on top of all the latest news and trends that may

affect your property values and that will assist you in your real estate decision–making processes.

www.praedium-advisors.com

Victor’s Insider Scoop on How to Get a “First Look” at Distressed Apartments in Phoenix … Are you frustrated just sitting on the sidelines waiting for the “right” deal before you buy distressed or REO apartment projects? If you answered “YES!” you will want to respond immediately! Our team specializes in tracking distressed multi-family properties with 100+ units in the metro-Phoenix area. We are in regular contact with their lenders because the best opportunity to buy these properties is before they are brought to market and your competitors drive up the prices. If you qualify, we are offering you the opportunity to be one of the select few investors we work with who will be offered a FIRST LOOK at these properties BEFORE they are listed and shopped. If you are serious about buying distressed apartments AND have the cash to pull the trigger quickly, WE CAN HELP YOU IDENTIFY, QUALIFY, AND BUY APARTMENTS AT BARGAIN-BASEMENT PRICES THAT HAVE NOT BEEN SEEN SINCE THE 1990s.

Call me at 602 320 6200 now or email me now at victora@praedium-advisors.com for your opportunity at a FIRST LOOK at great deals on apartments! Dedicated To Multiplying Your Income

PS - More info including informative Multi-Family NewsWire Articles and a 2010 Phoenix Multi-Family Sales Report at www.praedium-advisors.com/apts.htm PPS – Ask me how we can take any Class C or Class B project from 50% vacant to 93% OCCUPIED in just 90 to 180 days! PPPS – Don’t wait and read about a great apt buy your competitor made—have them read about yours! Start by contacting me today! PPPPS – If you are not getting the results you deserve from your antiquated brokers give me a call at 602-320-6200. I have many innovative ideas I can implement to increase your bottom line!

Baseline Crossings Sells for $1.5M Investor Purchases 31,770-SF Retail Center in REO Sale By Joyce McLaughlin June 30, 2010 A private investor acquired the Baseline Crossings Retail Center in Phoenix from Compass Bank for $1.5 million, or $48 per square foot. The 31,770-square-foot strip center was built in 2008 in the Laveen Retail submarket. The property was 100% vacant at the time of sale. Patrick Dempsey, Jan Fincham and Chris McClurg of Lee and Associates represented the seller, while Andrew Harrison of Harrison Commercial represented the buyer. Please refer to CoStar COMPS #1936882 for more information on this transaction.

Phoenix Industrial Sells for $1.6M VM Healthcare Solutions Purchases 27,350-SF Facility By Joyce McLaughlin June 30, 2010 VM Healthcare Solutions Inc., a subsidiary of Waste Management Inc., acquired the industrial building at 3154 N 34th Dr. in Phoenix, from Milum Textile Services for $1.6 million, or about $60 per square foot. The 27,350-square-foot warehouse was constructed in 1978 in the West Phoenix North Thomas Road industrial submarket. The buyer and seller did not use outside representation. Please refer to CoStar COMPS #1929198 for more information on this transaction.

Mesa apartment deals generate $34M BY Jan Buchholz June 28, 2010 Acacia-Capital Corp., a real estate investment and development company in San Mateo, Calif., has purchased two B class apartment units in Mesa for a combined $33.5 million. Argenta, located at 4104 E. Broadway Road, sold for $18.15 million. Built in 1985, it contains 395 units. Verona Park, located at 1666 S. Extension Road, sold for $15.2 million. Built in 1981, it contains 304 units. Colliers International in Phoenix represented the seller, which was not disclosed. Documents at the Maricopa County Recorder’s office show the previous owner of the Argenta as Parkside General Partnership of San Rafael, Calif. The records indicate that Parkside purchased Argenta in January 2007 for $27.65 million. At the time of the current closing, it was 91 percent occupied. The previous legal owner, according to recorder’s records, of Verona Park is listed as VPApts LLC and SWApts LLC, also of San Raphael. Those entities paid $22.7 million for Verona Park, according to those records. At the time of the current closing, it was 95 percent occupied. Acacia was self-represented. “We had a very strong response with multiple offers at, or over, list price. It came down to who had the funds to close all cash on both properties, could move fast, and had an in depth knowledge of the two submarkets,” said Brad Cooke, vice president with Colliers, in a news release.

Sundt buys prime Tempe parcel for $10 million BY Jan Buchholz June 25, 2010 A prominent parcel of land in downtown Tempe has been purchased by Sundt Cos. for $10.1 million. The 3.2-acre site at the northwest corner of University Drive and Forest Avenue had been slated for a hotel and convention center, but it was taken back by Stearns Bank when local developers were unable to make loan payments during the depths of the recession. Although Sundt’s primary business is heavy construction, company officials decided the time was right to invest in real estate. “Yes, this is the first time Sundt has made a real estate investment of this nature,” said Senior Vice President Kevin Burnett. “This is really for investment purposes. We’re going to hold it. It’s a unique opportunity.” Burnett indicated that Sundt, an employee-owned company with corp-orate headquarters in Tucson and a major presence in Tempe, will wait for an opportune time to sell the land at a profit. He would not elaborate about how the deal came about, but he said the company’s executive committee and board of directors approved the purchase. The price is less than half of the $22.1 million that University Square Investors LLC borrowed from Stearns Bank in April 2006. University Square Investors in Scottsdale was headed by veteran Valley developer Jim Riggs, president of Saxa Inc., which specialized in office condo developments. The project as approved by the Tempe City Council was ambitious. It included a 1 million-square-foot convention center and hotel with a projected cost of about

$200 million to build. Even when the economy began to tank in fall 2008, University Square officials said Hilton Hotels Corp. had signed a letter of intent and that several national financiers were interested in partnering on the project. Land Advisors Organization in Scottsdale represented Stearns in the deal. “We approached several developers around the country. Student housing groups, we thought, was a good place to start,” said Ryan Duncan, a broker with Land Advisors. Sundt unexpectedly expressed interest through its broker, Brent Moser of Cassidy Turley in Phoenix. “The deal happened relatively quickly,” Duncan said. Read more: Sundt buys prime Tempe parcel for $10 million - Phoenix Business Journal

Scottsdale luxury apartments trade hands BY Jan Buchholz June 24, 2010 PASSCO Cos. LLC of Irvine, Calif., has purchased a 202-unit luxury apartment complex in North Scottsdale. The announcement was made by CB Richard Ellis in Phoenix, which represented seller PB Bell Cos. in Scottsdale. CB Richard Ellis said the purchase price would not be disclosed, but an industry source said the development, completed in 2005, sold for $32 million or $161,000 per unit. PASSCO represented itself in the sale. The complex, which received the 2006 Developer’s Award from the Arizona Multihousing Association for the best community design in in 2004 to 2005. It was 95 percent occupied at the time of closing. North Scottsdale enjoys the best occupancy rate in the Valley with an average vacancy of 5.4 percent, according to RealData Inc. Only the Ahwatukee Foothills and Chandler submarkets come close with a little less than 6 percent vacancy rates. The highest vacancy rates are 28 percent in west central Phoenix and 23 percent in the central Black Canyon Freeway submarket. Read more: Scottsdale luxury apartments trade hands - Phoenix Business Journal

ANGELO, GORDON & CO. ENTITY DROPS $8 MILLION HARD FOR MIXED-USE SITE IN AVONDALE June 25, 2010 Avondale – AG/RW - Entorno LLC, a joint venture formed by Angelo, Gordon & Co. in New York City, N.Y. (John Angelo, Michael Gordon, partners) and Ridgewood Real Estate Partners in Florham Park , N.J. (Jonathan Grebow, pres.) paid $8 million to buy a 163-acre parcel of undeveloped land at the southwest corner of 99th Avenue and Indian School Road in Avondale. The seller was Pebble One LLC, a company formed by Nevada State Bank in Reno, Nev. The cash sale was negotiated through Randy Titzck, Greg Vogel, Ryan Duncan, Mike Schwab and Michele Vino of Land Advisors Organization in Scottsdale. The planned mixed-use project, called Entorno, is targeted for 100 acres of commercial and 63 acres of residential use. The AG/RW venture intends to entitle the land, subdivide and sell parcels. Grebow expects to hold the property for a year or two before reselling. The previous owner of Entorno lost the land to foreclosure . In April 2006 and March 2007, BREW reported companies formed by investors Eddie Gutzman and Jeff Chain of Millennium Properties & Development Inc. in Las Vegas, Nev. paying almost $34 million to buy the Entorno tract in two separate acquisitions. The privately-held Angelo, Gordon & Co., which has acquired $5+ billion in commercial real estate, is looking for additional investment opportunities in the Phoenix area. The company specializes in value-added investment deals. In August 2009, BREW reported Angelo, Gordon paying $21.3 million to acquire 339 partially finished lots and 318 acres of residential land within a community called The Bridges at Gilbert. Ridgewood Real Estate Partners, an affiliate of The Atlantic Cos. in Florham, N.J. (owned by Grebow), is also a partner with Angelo, Gordon on that property. Will Abbate is the contact at Angelo, Gordon . . . (310) 777-5445. Talk to Grebow at (973) 593-0003. Reach the Land Advisors Organization agents at (480) 483-8100.

GARRETT DEVELOPMENT ADDS TO RESIDENTIAL HOLDINGS . . . BUYS 300 ACRES IN PINAL COUNTY June 25, 2010 Casa Grande – A company formed by Jeff Garrett of Garrett Development in Phoenix paid just over $4.452 million to acquire a roughly 300-acre parcel of land in a planned community in Casa Grande called McCartney Ranch II. The seller in the cash deal was Meridian Land Holdings LLC, a company formed by Meridian Bank in Scottsdale. The sale was brokered through Nate Nathan, Courtney Buck and Dave Mullard of Nathan & Associates Inc. in Scottsdale. At one time, the land had zoning for 1,200 residential units and 35 acres of commercial use. Garrett will sell the residential lots and commercial acreage after the real estate market rebounds. Garrett and his partners are looking for additional finished lots, residential parcels and retail sites in the Phoenix area. In April, BREW reported companies formed by Garrett paying a combined $3.798 million to purchase 386 finished lots in Casa Grande and Buckeye. Get more from Garrett at (480) 236-5059. Steve Loonam of Meridian Bank is at (602) 636-5028. The Nathan & Associates agents are at (480) 367-0700.

Solar supplier Linamar to land in Glendale BY Patrick O'Grady June 23, 2010 Linamar Corp. is preparing to set up a manufacturing facility in Glendale to supply parts for Stirling Energy Systems, the city will announce today. Guelph, Ontario-based Linamar is the second largest Canadian auto parts manufacturer, and will lease about 76,000 square feet of space at 7676 Glen Harbor Drive near the city’s airport, said Brian Friedman, the city’s economic development director. The five-year lease will bring 52 jobs to the city as Linamar looks to build power conversion units for Stirling’s SunCatcher, a concentrated solar power system designed by the Scottsdale-based firm. The deal is the culmination of three years of work Glendale has put in on the economic development front to land renewable energy companies, Friedman said. “Glendale welcomes this kind of company that has a diverse portfolio of business,” he said. Linamar (TSX: LNR) has more than 12,000 employees globally with operations in Canada, the U.S., Hungary, South Korea, Germany and the U.K. In addition to auto parts, the company has divisions working on renewable energy and has a consumer products division as well as Skyjack, a subsidiary that builds industrial lifts. The publicly traded company had about $1.6 billion in revenue in 2009 and turned in strong first-quarter numbers for 2010, reporting $21 million in net income. Linamar is the second auto parts supplier with plans for a facility in the Valley. The first, Tower Automotive, is opening a manufacturing facility in Goodyear that

will bring in about 200 jobs. Both projects support Stirling’s SunCatcher. Stirling has several power purchase agreements with utilities to build solar facilities in the Southwest, including two large power plants in the California desert and another on a closing city of Phoenix landfill in Buckeye. The company also has a project it is developing in Texas. Those projects are being developed by Tessera Solar North America, the solar development arm of NTR plc, the Dublin, Ireland-based parent company of Stirling Read more: Solar supplier Linamar to land in Glendale - Phoenix Business Journal

PASSCO BOLSTERS VALLEY HOLDINGS . . . SPENDS $32.63 MILLION FOR SCOTTSDALE APARTMENTS June 18, 2010 Scottsdale – A company formed by PASSCO Cos. LLC in Irvine, Calif. (William Passo, pres.) paid $32.63 million ($161,535 per unit) to buy the 202-unit Desert Parks Vista apartments located at 9393 E. Palo Brea Drive in Scottsdale. The seller was a venture formed by P.B. Bell Cos. in Scottsdale (Phil Bell, Chapin Bell, principals). The cash sale was brokered through Tyler Anderson and Sean Cunningham of CB Richard Ellis in Phoenix. The awarding winning Desert Parks Vista rental community was developed by P.B. Bell in 2005. The Class A asset is considered to be among the most prestigious of all multi-family properties in the Valley. With the acquisition of Desert Parks Vista, companies formed by PASSCO now own 930 apartment units in three properties in the Phoenix area. PASSCO also owns two Valley retail centers totaling 181,551 sq. ft. The privately-held company is interested in additional investment opportunities in the Phoenix area. PASSCO specializes in providing real estate investment and 1031 Tax Exchange opportunities for those interested in investing in income-producing properties. Its portfolio includes more than 8 million sq. ft. of retail, office and industrial space and 12,000 multi-family units located across the U.S. In April 2005, PASSCO paid just under $35.9 million ($99,671 per unit) to buy The Alexan Belleview, a 360-unit apartment property located at 1121 N. 44th Street in Phoenix. In March 2005, PASSCO paid $31.95 million ($86,821 per unit) to buy the 368-unit Courtney Village at Papago Park apartments at 4848 E. Roosevelt Street in Phoenix. Gary Goodman is the contact at PASSCO . . . call him at (949) 442-1000. Reach the Bells at (480) 951-2222. Talk to Anderson and Cunningham at (602) 735-5555.

Nivel Parts Leases 57,000 SF at Riverside @ 51st Cushman & Wakefield Captures Both Sides of Phoenix Deal By Shane Beyer June 17, 2010 Nivel Parts & Manufacturing Co., a manufacturer of golf carts and parts signed a lease for 56,686 square feet at Riverside @ 51st in Phoenix. The distribution building at 2300 S. 51st Ave. totals 335,459 square feet and situated on 19.2 acres. The property delivered in 2007 and houses tenants such as Frito-Lay and Discount Tire. Bo Mills, Mark Detmer, Mike Kasulaitis and Will Strong of Cushman & Wakefield represented both parties on the transaction

Phoenix Walgreens Sells for $4.4M Buyer Picks Up Triple-Net Investment By Shane Beyer June 14, 2010 An Arizona investment trust purchased the Walgreens at 25073 W. Southern Road in Buckeye, AZ, from Dreamwork Management Inc. for $4.45 million, or about $300 per square foot. The 14,820-square-foot retail building was constructed in 2009 in the Miller Marketplace, off of Miller Road & Southern Avenue. The building is fully leased to Walgreens on a 75-year lease. Jaime Medress and Mark Ruble of Marcus & Millichap represented the seller, while Steven Davis of Retail Investment Group LLC represented the buyer. Please see CoStar COMPS # 1929968 for more information on this transaction.

Paul Allen's Vulcan Inc. pays $35M for Tempe building BY Mike Sunnucks June 17, 2010 The real estate arm of Microsoft cofounder and Seattle Seahawks owner Paul Allen’s Vulcan Inc. has bought an office building in Tempe for $35 million. Allen’s Vulcan Real Estate acquired the eight-story Tempe Gateway building via a trustee sale. Tempe Gateway was developed by Opus West Corp., which filed for Chapter 11 bankruptcy protection last summer. The 260,000-square-foot building is located off of Mill Avenue just south of Tempe Town Lake and US Airways Group Inc.’s headquarters. The building is vacant and was completed by Opus last year. It was foreclosed on in 2009. Allen cofounded Microsoft Inc. with Bill Gates. He has various business and investment interests including Vulcan, the Seahawks and Portland Trail Blazers basketball team. Read more: Paul Allen's Vulcan Inc. pays $35M for Tempe building - Phoenix Business Journal

MONTAGE HOLDINGS ENTITY PICKS UP 68 ACRES IN GOODYEAR . . . PAYS $13+ MILLION June 11, 2010 Goodyear – A company formed by investor Garth Wieger of Montage Holdings in Scottsdale paid just over $13.3 million to acquire a 68-acre parcel just west of the southwest corner of Interstate 10 and Litchfield Road in Goodyear. The sellers were three companies formed by investors Eugene Monkarsh and Jerry Monkarsh of EJM Development Co. in Los Angeles, Calif. The sale was brokered through Tom Mulhern of Mulhern Investments LLC in Phoenix. Of the land purchased by Wieger’s company, 24 acres is contiguous north of the Cancer Treatment Center of America and 44 acres is directly west of the 25-acre medical facility. Fillmore 143 LLC (Wieger’s company) paid cash for the real estate. Wieger says the property will be held as an investment. The parcel has some improvements in place, including roads and utilities. This is the second time Wieger has been part of an entity that owns the Goodyear land. In April 2003, BREW reported another company formed by Wieger selling the 68 acres to Monkarsh’s company in a $7.66 million deal that included another 85 acres. The 153-acre tract is at the northeast corner of Van Buren Street and Bullard Avenue. EJM Development still owns the other acreage and the company has additional properties in Goodyear. Over the years, BREW has reported Wieger and his companies buying and selling numerous properties in the Valley. Wieger, who also owns Cadence Homes in Scottsdale, is looking for additional real estate investment opportunities in the Phoenix area. Find out more from Wieger at (480) 922-6200. Fred Stiles is the contact for EJM Development . . . call him at (480) 948-7880. Reach Mulhern at (602) 757-9244.

Montessori Academy buys former Camelback Desert School site BY Jan Buchholz June 11, 2010 The Montessori Academy, a Scottsdale charter school, paid $3.8 million for a choice parcel in Paradise Valley to expand its school and upgrade its offerings. The public charter school was able to secure educational facility revenue bonds through the Industrial Development Authority of Pima County to finance the transaction, which closed May 25. Juliette Lewis, the school’s principal and executive director, said the 4-acre property at 6050 N. Invergordon Road was a perfect fit, given that the facility on the site operated as the private Camelback Desert School for almost 50 years. “This is a big deal for the marketplace,” said Jordan Rose, principal of Scottsdale-based Rose Law Group PC, who handled the special-use permit application that recently was approved by the town of Paradise Valley. The facility was vacant for at least a year, but now it’s brimming with youngsters attending a Montessori summer program. When the new school year begins in August, Lewis expects 225 students to be enrolled in pre-kindergarten through eighth grade. The school, which now includes sports fields, two swimming pools, 12 classrooms and office space, could handle up to 350 students. About $200,000 in upgrades will be made in the weeks ahead. The special-use permit was expedited through the Paradise Valley Town Council. “The council and the staff were so enthused about revitalizing the property that they agreed to expedite our request so that Juli could open up the summer camp,” Rose said.

She said Paradise Valley’s zoning code presents a unique situation: Unless a parcel goes through rezoning, the default designation is “residence on 1 acre.” The property was not listed for sale, but when Lewis and team became aware of the land and its unique characteristics, they approached the owners, the William Barton Sr. family — the original owners and operators of Camelback Desert School. Barton Trust LLC was the legal entity that sold the property to Montessori Academy. Mar Chadoin of Hague Partners in Paradise Valley represented the seller. The Montessori Academy had been located at 68th Street and Thomas Road in a strip mall. It was rated an excelling school last year by the Arizona Department of Education. Students travel from all over the Valley to attend. The attraction, Lewis said, is the unique philosophy of Maria Montessori, an Italian physician who viewed education holistically after successfully working with special-needs children. “The philosophy looks at the whole child,” Lewis said. “There’s gardening, there’s character development, there’s conflict resolution.” Montessori teachers are paid less than most public school teachers, she said, but they are passionate about the method. Read more: Montessori Academy buys former Camelback Desert School site - Phoenix Business Journal

Aqua Fria School District Pays $2.6M for Avondale Office Plex Bank-Owned Asset Sells in Phoenix By Shane Beyer June 10, 2010 Aqua Fria Union High School District acquired the bank-owned Avondale Office Plex in Phoenix for $2.6 million, or $83 per square foot. The buyer plans to ultimately occupy the entire building. The plans for the existing tenants were not disclosed. The two-story office building at 1481 N. Eliseo C. Felix Jr. Way totals 31,428 square feet and is situated on 2.34 acres, according to CoStar information. Kevin Helland of GPE Commercial Advisors LLC represented the buyer, while Bob Buckley of Cassidy Turley BRE Commercial represented the seller, Investors Warranty of America. Please see CoStar COMPS #1918172 for more information on this transaction.

Two industrial leases signed in Phoenix area June 7, 2010 B/E Aerospace is moving to 10 Chandler, an industrial complex near Interstate 10 between Ray Road and Chandler Boulevard in Chandler. B/E, which manufactures and distributes aircraft cabin interior products internationally, signed a lease for 48,000 square feet. The term and dollar value of the lease were not disclosed. B/E is moving from the Honeywell facility in south Tempe. Lincoln Property Co. owns 10 Chandler and was represented by Cushman & Wakefield of Arizona. B/E was represented by a different broker at Cushman & Wakefield. Other tenants at 10 Chandler include Armorworks and Cloudblue. In another lease deal, Paradigm Direct, a retail sales processing provider, signed for almost 10,400 square feet at Mesa Executive Park, 1255 W. Baseline Road. The term of the lease is five years, but the financial value was not disclosed. Paradigm is planning to expand its call center operations at the new site. Cassidy Turley BRE Commercial represented Paradigm. Landlord Wilson Property Services Inc. was represented by Middlefork Commercial. Read more: Two industrial leases signed in Phoenix area - Phoenix Business Journal

HOLUALOA ADDS TO MULTI-FAMILY ASSETS . . . PAYS $17.15 MILLION FOR BROKEN CONDO PROJECT June 4, 2010 Tucson – A company formed by Holualoa Arizona Inc. in Tucson (Mike Kasser, principal) paid $17.15 million to buy 238 units within the Sonterra at Williams Center broken condominium project at 5400 E. Williams Boulevard in Tucson. The seller was Sonterra Property LLC, a company formed by UBS in New York City, N.Y. The transaction was brokered through Mike Sandahl of CB Richard Ellis in Tucson, and Sean Cunningham and Tyler Anderson of CBRE in Phoenix. The buyer acquired the Tucson project with a loan arranged by NorthMarq Capital LLC in Phoenix. The UBS entity acquired the 238 units at Sonterra at Williams Center at a trustee’s sale held in December. The project, which was built in 1995 as a apartment rental community, was converted to condominiums in 2005. The previous owner sold 106 of the condos before being foreclosed. Sources say Holualoa will operate the 238 units as rentals. Over the years, BREW has reported Holualoa buying and selling numerous investment properties in the Tucson and Phoenix areas. Kasser says Holualoa is looking for additional apartment properties in the Tucson and Phoenix markets. The company wants value-added deals and will purchase older assets that may need some refurbishment. While Holualoa is focused on acquiring apartment communities, the company also has an interest in purchasing retail, office, industrial and hotel properties in Arizona and other markets in the southwestern U.S. In April, BREW reported Holualoa paying $11.4 million ($26,635 per unit) to buy the 428-unit Tanque Verde apartments at 7671 and 7685 E. Tanque Verde Road in Tucson. Get more from Kasser at (520) 615-1094. Marc Waldman is the contact at UBS . . . (212) 713-9282. Reach Sandahl at (520) 323-5100. Talk to the CBRE agents in Phoenix at (602) 735-5555.

GoDaddy.com goes for it with major real estate purchase BY Jan Buchholz June 8, 2010 GoDaddy.com has purchased the building it now leases in Scottsdale, along with two other buildings that were developed as the Scottsdale Technology Center at 14455-14505-14555 N. Hayden Road in the Scottsdale Airpark. The price was not disclosed. The three-building complex encompasses about 152,000 square feet and sits on 15 acres. It is located south of Raintree Drive, near Costco. The seller was Crown Realty & Development Inc. of Irvine, Calif. That firm paid $20.5 million for the property in December 2005 through two legal entities, Crown Roscoe LLC and Pensacola Associates LLC, according to records on file at the Maricopa County Recorder’s Office. GoDaddy.com, a domain name and web hosting giant, most recently signed a lease at the office park in 2008. Crown Realty owns several properties in the Valley, including the now-shuttered Mountain Shadows resort in Paradise Valley. The company also built the InterContinental Montelucia Resort & Spa in Paradise Valley, which was noticed for foreclosure in 2009 by the construction lender, EuroHypo AG, a German bank. The bank took possession of the resort through an auction earlier this year and now owns it, with InterContinental Hotels Group of the U.K. continuing to operate it. Real estate attorney Scott Stein, principal of Stein Law PLC in Scottsdale, announced the sale, which closed June 4. He represented the seller.

WEIDNER ON TORRID PACE BUILDING APARTMENT PORTFOLIO . . . BUYS 458 UNITS IN TWO PROJECTS May 28, 2010 Phoenix/Tucson – Companies formed by Weidner Apartment Homes in Kirkland, Wash. (Dean Weidner, principal) paid a combined $31.85 million to purchase 458 apartment units in two rental communities in Phoenix and Tucson. Phoenix Monterra Apartments LLC, formed by Weidner, paid $16.65 million ($64,535 per unit) to acquire the 258-unit Monterra apartments located at 1333 N. 24th Street in Phoenix. The seller was Aslan Monterra I LLC and Aslan Monterra II LLC in Irvine, Calif. (Tom Rakow, John Schafer, principals). The cash sale was brokered through Jack Hannum and Bret Zinn of Transwestern in Phoenix. Monterra was built in 2001. In April 2006, BREW reported Rakow and Schafer paying $22.075 million ($85,562 per unit) to buy Monterra. Tierra Vida Apartments LLC, formed by Weidner, paid $15.2 million ($76,000 per unit) to acquire the 200-unit Tierra Vida apartments at 1970 W. Magee Road in Tucson. The seller was Tierra Vida Property LLC, a company formed by UBS, which foreclosed on the asset from the previous owner. The transaction was negotiated through Art Wadlund of Hendricks & Partners in Tucson. Tierra Vida was built in 2000. A company formed by investor Terry Brown of San Francisco, Calif. paid $15.2 million ($76,000 per unit) to purchase Tierra Vida in 2006. UBS provided financing and repossessed the rental community after Brown defaulted on the loan. The acquisition of Tierra Vida was financed with a $10.8 million loan from Fannie Mae. Although Weidner paid cash for Monterra, the company is putting a loan on that asset. Fannie Mae financing has already been arranged. With the acquisitions, Weidner now owns 598 units in two Valley properties and 504 units in two complexes in Tucson. Kevin Colard, senior acquisitions manager at Weidner Apartment Homes, says the company is looking for more multi-family projects in the Phoenix and Tucson markets. In the next two years, Weidner Apartment Homes expects to own 3,000 multi-family units in the Valley and 1,500 units in the Tucson area. Weidner

manages its apartment projects. The company owns 24,000+ units in Washington, Alaska, Colorado, Texas, Arizona and western Canada. Last week, BREW reported Weidner paying $22.5 million ($74,013 per unit) to acquire the 304-unit Retreat at Speedway apartments located at 7401 E. Speedway Boulevard in Tucson. In March, BREW reported the privately-held company making its entry into the Arizona market with the acquisition of the 340-unit Trillium Villas apartments at 10847 W. Olive Avenue in Peoria. Weidner paid $27.5 million ($80,882 per unit) to buy Trillium Villas. Companies formed by Schafer and Rakow previously acquired the 204-unit 20th & Campbell apartments at 2025 E. Campbell Avenue in Phoenix, and the 220-unit Paradise Falls apartments at 15434 N. 32nd Street in Phoenix. No word on the disposition of those properties. Learn more from Collard at (425) 821-3844. Talk to Rakow at (949) 788-5201. Marc Waldman is the contact at UBS . . . (212) 713-9282. Call Hannum and Zinn at (602) 956-5000. Wadlund is at (520) 299-7200.

WESTERN DIGITAL EXPANDING INTO VALLEY . . . TO OPEN CIRCUIT MANUFACTURING FACILITY May 28, 2010 Phoenix – Western Digital Technologies Inc. in Lake Forest, Calif. (NYSE:WDC, John Coyne, pres.) plans to open an integrated circuit manufacturing facility in Phoenix. The company paid $20 million ($36.70 per foot) in cash to purchase a 545,00-square-foot manufacturing operation at 1000 and 1100 E. Bell Road in Phoenix. The seller was STMicroelectronics Inc. in Carrollton, Tex. (NYSE:STM). The manufacturing and office project is now occupied by STMicroelectronics, but the company is shutting down its manufacturing business in Phoenix. Sources say Western Digital Technologies is expected to hire several hundred employees at the new Phoenix facility. The 33-acre project is comprised of manufacturing, office and clean room space. Western Digital will move into the Bell Road project after STMicroelectronics meets its production requirement at the site. Representatives of Western Digital declined to comment on the expansion into Phoenix. Western Electronics is the world’s second largest maker of data storage products. The company provides storage solutions for people and organizations that collect, manage and use digital information. Western Digital develops and manufactures hard drives and solid-state drives for internal, external, portable and shared storage applications. The hard drives are used in desktop and notebook computers, mobile devices, corporate networks and home entertainment equipment. The solid-state drives are used in embedded applications, including network communications, industrial, medical, military and aerospace markets. STMicroelectronics is a Geneva, Switzerland-based semi-conductor supplier. The company has operations throughout the world. Representatives of STMicroelectronics say the company will keep a work force of 100 engineers, sales people and executives in the Valley. Those workers are now housed at the Bell Road facility, but those employees will be moving into new office space that STMicroelectronics is likely to lease in the Phoenix area. Once STMicroelectronics shuts down the Bell Road facility, the

company no longer will have any manufacturing operations in the United States. Dick Salvi is the contact at Western Digital . . . reach him at (949) 672-7000. Michael Moskowitz is the contact for STMicroelectronics . . . (781) 591-0354.

K. HOVNANIAN CONTINUES BUYING RAMPAGE . . . PAYS $5.3 MILLION FOR 180 LOTS IN GLENDALE May 21, 2010 Glendale – K. Hovnanian Great Western Homes LLC in Phoenix (Lou Smith, group pres., John Michell, division pres.) plans to build 180 residences in the Provence community in Glendale. The builder paid $5.3 million ($29,444 per lot) to buy 180 finished home sites in the gated community. The seller was the FDIC (Federal Deposit Insurance Corp.) as receiver for Community Bank of Nevada. The cash transaction was brokered through Brian Rosella and Will French of Cassidy Turley BRE Commercial in Phoenix. Provence is located north of the northeast corner of 91st and Glendale avenues. The lots range in size from 3,154 sq. ft. to 4,950 sq. ft. Michael Fulmer, land acquisitions manager at K. Hovnanian, says the builder will have two subdivisions, Avalon and Enclave. The homes will range up to 2,400 sq. ft. Pricing to start in the mid-$100,000's. Models set to open fourth quarter 2010. Provence marks the 10th land acquisition for K. Hovnanian in the last nine months. The builder is looking for more residential dirt in the Phoenix area . . . that includes finished lots and raw land. Last month, BREW reported K. Hovnanian planning to build 45 residences within the Annecy community located south of the southeast corner of Power and McKellips roads in Mesa. K. Hovnanian is owned by Hovnanian Enterprises Inc. in Red Bank, N.J. (NYSE:HOV). Learn more from Fulmer, Smith and Michell by calling (480) 824-4200. Reach the Cassidy Turley agents at (602) 954-9000.

Southwest Solar Pays $3.9M for Glendale Land Energy Development Company Purchases R&D Location By Shane Beyer May 20, 2010 Southwest Solar Technologies Inc., a Phoenix-based energy development company, acquired 58 acres of land on West Glendale Avenue in Glendale, AZ, for $3.92 million, or $67,500 per acre. The parcel is located between North Dysart Road and East El Mirage Road. Southwest Solar estimates that it will take about 24 months to construct its new headquarters location, energy development and R&D facility at the site. Per the buyer, a zoning change is required for intended uses. Brent Moser and Tony Lydon of Cassidy Turley BRE Commercial represented the seller, while Southwest Solar represented itself in the transaction. Please see CoStar COMPS # 1917074 for more infoarmation on this transaction.

Bank Sells Phoenix Hotel for $3M South Dakota Investor Purchases Sierra Suites By Dale Zavodsky May 26, 2010 Saehan Bank sold the 88-room Sierra Suites in Phoenix, AZ, to South Dakota-based HM Hotel Properties LLC for $3 million, or about $34,000 per room. The three-story, 39,969-square-foot hotel at 9455 N. Black Canyon Highway was built in 1997. Jared Chandler of Chandler Hotel Group represented the buyer. The seller was self-represented. Please see CoStar COMPS #1914115 for more information on this transaction.

Gaedeke Inks Four Leases at 2800 Tower By Jennifer Duell Popovec May 24, 2010 PHOENIX-After a year of negotiations, Gaedeke Group has closed four deals totaling 16,671 square feet at 2800 Tower, bringing the 365,000-square-foot high-rise to 70% occupancy Two of the leases are new tenants that have relocated from other buildings in Midtown Phoenix. The new tenants are: law firm Palumbo Wolfe & Palumbo P.C., which committed to 7,061 square feet, and social-services firm Arizona Coalition Against Domestic Violence, which took 3,737 square feet. Two of the leases are renewals: law firm Katz & Bloom P.L.C. re-leased 2,233 square feet and computer consulting firm of Sunturn IT Consulting Group re-upped for 3,640 square feet. Their leases were coming up for renewal, according to Jim Achen, Jr., a senior vice president with Transwestern’s local office. Achen and William Zurek, also a senior vice president with Transwestern, represented Gaedeke Group, along with vice president Vince Femiano and senior associate Travis Ives. The tenants were represented by Darius Green of Cresa Partners, Chris Brien of LevRose, and Chris Jantz of Cassidy Turley/BRE Commercial. “More than anything these leases show people are willing to make decisions,” Achen tells GlobeSt. “People who have survived this downturn feel reasonably good that they will continue to survive so they’re moving forward with their leasing decisions. Other folks think that lease rates have come down so

dramatically, they want to take advantage of what they perceive as the bottoming of the market.” Achen says all four tenants shopped the market before committing to 2800 Tower. “They came back to 2800 Tower because of the building’s long-term ownership and the quality of the building,” he explains. “We’ve got a lot of office buildings in Phoenix with financial challenges, and that’s not a problem for this owner or this building.” Located at 2800 N. Central Ave., the 20-story, class A building was built in 1988. It lost its largest tenant, Mercy Care, when the company needed to expand beyond its 100,000-square-foot footprint and 2800 Tower could not accommodate it. “We’re continuing to chip away at the vacant space,” Achen says. “We got some positive momentum with these four leases, and we’re into several rounds of negotiating on several large deals.”

Stein Mart Relocates to Tempe Marketplace By Jennifer Duell Popovec May 23, 2010 TEMPE, AZ-Stein Mart Inc. has signed a 10-year lease for 28,000 square feet in Tempe Marketplace to relocate its existing store. The national retailer will backfill a vacant Linens ‘N Things in the 130-acre, 1.3-million-square-foot project. Stein Mart’s existing lease at 6426 South McClintock Dr. was up for renewal, and the chain, which is best described as a hybrid between an upscale department/specialty store and a traditional off-price retailer, decided against renewing. Instead, it chose to move just a few blocks away to the state’s third-busiest intersection, says David Malin, senior project manager for Vestar Development Co., the Phoenix-based developer and owner of Tempe Marketplace. Located at the Southwest corner of Loops 101 and 202 on McClintock Drive and Rio Salado Parkway, Tempe Marketplace opened in 2007 and receives drive-by traffic of 650,000 cars daily. The project boasts more than 120 retailers, restaurants and entertainment destinations including Target, Best Buy, J.C. Penney and Harkins Theater, the state's number-one performing movie theater. “Because Tempe Marketplace is such a large project, we had nearly every retail category already represented, and the challenge was to find a tenant that didn’t duplicate uses,” Malin tells GlobeSt. “It wasn’t really an issue of exclusivity, but the idea of putting together the most dynamic tenant mix possible. We are long-term holders, and we want to create projects that stand the test of time. With the Stein Mart lease, Tempe Marketplace is 99% occupied with only a couple

of inline spaces available. Tenant improvements are expected to begin in early summer, and the new store will open this fall. “In our mind, there’s only one Stein Mart – no other retailer does what Stein Mart does or does it nearly as well,” Malin says. “It has a kind of a cult-like following throughout the country and certainly here in the Phoenix area. We’re excited to have them.”

Gilbert Office Building Sells for $1.2M Private Investor Purchases 5,000-SF MOB By Joyce McLaughlin May 19, 2010 The office building at 3336 E Chandler Heights Rd. in Gilbert, AZ sold for $1.2 million, or $256 per square foot, in a sale between two private parties. The 4,683-square foot medical office building was completed in 2005 in the Gateway Airport/Loop 202 submarket. The property was fully occupied at the time of sale. Tom Weinhold of NAI Horizon represented the seller, while Gregory White of CB Richard Ellis represented the buyer. Please refer to CoStar COMPS #1905247 for more information on this transaction.

WA Investor Wins MF Asset for $44M By Jennifer Duell Popovec May 17, 2010 CHANDLER, AZ-A highly-sought after luxury apartment community has traded for $43.5 million – $400,000 more than its asking price. A Seattle, WA-based investor beat out 44 other prospective buyers to nab Biscayne Bay, a 512-unit property located at 300 E. Warner Rd. Private Portfolio Group LLC acquired the 10-year old property at a 5.75% cap rate, according to Tyler Anderson, vice chairman of CB Richard Ellis. He and Sean Cunningham, also a vice chairman with CBRE, negotiated the deal on behalf of the seller, Chicago-based Waterton Residential doing business as Fund IX BB Chandler LLC. Biscayne Bay represents one of the largest multifamily sales in the Phoenix metro area this year, if not the largest. “This deal let the rest of the market know how much activity and interest investors have in the Phoenix area,” Anderson tells GlobeSt. “This demonstrates that there is strong buyer demand for quality assets.” The pricing, in particular, indicates that the acquisitions market is improving and proves that investors think Phoenix is positioned to recover. “They consider the market’s current revenue slump a temporary situation and believe that higher-end assets, like Biscayne Bay, will offer the greatest potential for strong occupancy and rental growth in the near future,” Anderson says. Located in one of the Southeast Valley’s main employment corridors, Biscayne Bay offers a mix of one, two and three-bedroom units with nine-foot ceilings,

oversized dual-pane windows, ceramic tile entryways, decorative lighted ceiling fans and private patios and balconies. Units range from 740 square feet to 1,320 square feet and rent for $887 to $1,279 per month. The property was 98% occupied at the time of sale. Biscayne Bay offers numerous resident amenities including: two resort-style swimming pools with spas and expansive sundecks; volleyball and basketball courts; a putting green; barbecue and picnic areas; and a children’s play area. Residents also have access to a fully-equipped fitness center, indoor racquetball court, dry sauna and business center, as well as billiards and theater rooms. With the acquisition of Biscayne Bay, Private Portfolio Group now owns 13 multifamily properties in the Phoenix metro area, Anderson says. The company obtained acquisition financing from a life insurance company.

Michael Pollack is back in the game with Mesa strip center Jan Buchholz May 14, 2010 Veteran Valley commercial developer Michael Pollack, who moved out of the investment scene during the run-up in real estate prices from 2005 until early 2008, is re-entering the market. He’s moving into a niche he knows well: purchasing run-down strip centers and remodeling them. His Mesa-based company, Michael A. Pollack Real Estate Investments, paid $2 million May 12 for a vacant grocery store and adjacent strip center at the northeast corner of University Drive and Greenfield Road in Mesa. That equates to about $20 per square foot for the 61,000-square-foot former Fry’s store and the 39,000-square-foot strip center. Most of the property is vacant. “This is our first acquisition back in the market since 2005. We’re truly at the bottom of the market,” Pollack said. The East Valley businessman, known for his full head of hair, flashy cars and eccentric collection of advertising memorabilia, said he’s just beginning to make moves with his unidentified investment partners. “We have to invest a little over $100 million in distressed real estate” before the market swings back to some semblance of normalcy, he said. Pollack said he expects to spend at least $2 million rehabbing what he described as a derelict property. “It needs a lot of work. We’re going to reposition and revitalize this center,” he said.

In this case, he said, the plan calls for an extreme makeover rather than an application of Botox. He hopes the neighbors will feel a sense of pride after enduring the gradual deterioration. The Fry’s store has been closed for about nine years, he said. While the price had dropped to a point where it made sense financially, the deal was so complicated that his brokers, David Wetta and Joe Compagno of Marcus & Millichap in Phoenix, came up with a pet name for it: “putting Humpty Dumpty back together again,” Wetta said. The transaction was a challenge. The Fry’s store had seven individual owners and was encumbered by a covenant that required it to remain a grocery store, no matter what the market would bear. That clause was removed. The strip center was a foreclosed property with several tenants. Because the basis on the total purchase was so low, Pollack and his brokers got the deal done within 45 days. “He’s very passionate,” Wetta said. “He’s not just driven by money, but he has a sincere interest in making a neighborhood better for businesses and residents.” Steve Julius and partner Jesse Goldsmith, who specialize in small retail centers and just moved over to the new Grubb & Ellis brokerage, said a number of investors are seeking out similar opportunities. “Eighty percent of those investors are looking for a value-added strip mall,” Julius said. Others are looking for new retail properties on the fringes of the Valley that never have been occupied or had their interiors fully completed. Retail remains a tough market, however. Julius said the economy still is dragging enough that retailers are not in expansion mode. He doesn’t expect consumer spending to dictate expansion for at least 12 to 18 months. That doesn’t worry Pollack. Since he purchased the property at such a bargain, he can offer attractive leases. “This is not going to be a high-rent center,” he said. “We envision discount-

oriented tenants. We’ll find a market based on cheap rents.” That doesn’t mean the place won’t look nice. Pollack said construction and remodeling crews will begin upgrades quickly. “Speed is important. We’ll have stage one done in two weeks,” he said. The rest of the project is set to be completed by midsummer. Pollack believes he’s way ahead of other investors because he employs his own construction crews. He points to other successful upgrades, including the El Monte Shopping Center at 19th and Dunlap avenues in Phoenix. Pollack said he took it from 22 percent occupancy to 95 percent. Also, the North Park Plaza at the northwest corner of Arizona Avenue and Ray Road in Chandler went from 35 percent occupancy to 97 percent, he said. “And that’s in a market that is averaging 80 percent occupancy in retail,” Pollack said.

Chandler apartments sell for $43.5M Jan Buchholz May 13, 2010 The largest apartment sale this year in the metro area was announced today by Phoenix brokerage firm CB Richard Ellis. The 512-unit Biscayne Bay community at 300 E. Warner Road in Chandler sold for $43.5 million. It’s the largest deal in terms of total dollars and in number of units. The buyer was Private Portfolio Group LLC of Seattle, Wash. According to its website, PPG already owns and manages about 5,800 Class A apartment units in 18 communities in the Valley, and is now adding to its market share. The seller was Fund IX BB Chandler LLC, a company created by Chicago-based Waterton Residential. That company owns apartments in several states, including Illinois, Texas, Florida, Colorado, California, Virginia and North Carolina. With this sale, Waterton is no longer owns apartments in Arizona. Waterton was represented by CB Richard Ellis. PPG handled its own end of the transaction. Read more: Chandler apartments sell for $43.5M - Phoenix Business Journal:

Denim & Diamonds Leases 20,000 SF in Mesa Nightclub Signs for 20,000 SF at Sun Valley Plaza By Tomalina Pacheco May 12, 2010 Denim & Diamonds Nightclub leased 20,000 square feet of retail space in Sun Valley Plaza in Mesa, AZ. The nightclub plans to have its grand opening in September, following a build-out. Michael Pollack of Michael A. Pollack Real Estate Investments represented the landlord, in-house. According to Pollack, the Sun Valley Plaza was about 20 percent occupied when his company purchased the property. Now with Denim & Diamonds opening in the fall, the plaza will now be 95 percent occupied.

Equiant Relocating to Chaparral Business Center VI Financial Outsourcing Company Takes 17,350 SF in Scottsdale By David Whitmore May 12, 2010 Equiant Financial Services Inc. signed a 17,350-square-foot lease at Chaparral Business Center VI in Scottsdale, AZ. The financial outsourcing company is relocating from the Galleria Corporate Center in the third quarter. Located at 5401 N. Pima Road in Scottsdale, Chaparral Business Center VI is a single-story office building measuring 70,735 square feet. It completed construction in 2007. Kevin Calihan of CB Richard Ellis represented Equiant. Jim Fijan, Jerry Roberts and Corey Hawley, also of CB Richard Ellis, represented the landlord, Lincoln Property Co

Sun Radiology headed to Phoenix May 12, 2010 Sun Radiology is opening its fifth Valley location in the 101 Medical Office Center, 9250 W. Thomas Road in Phoenix. The Class A medical office building is adjacent to the Banner Estrella Medical Center in the 138-acre Algodon Medical Office Park. Sun Radiology leased 9,900 square feet. The term of the lease and value were not disclosed. The 80,000-square-foot 101 Medical Office Center was awarded Medical Office Development of the Year in March 2010 by the Arizona Chapter of the National Association of Industrial and Office Properties. Sun Radiology provides imaging services and has been in business for five years. Read more: Sun Radiology headed to Phoenix - Phoenix Business Journal:

Strategic Storage Trust Invests $4M By Jennifer Duell Popovec May 11, 2010 PHOENIX-Strategic Storage Trust Inc. has acquired two self-storage facilities totaling 880 units for $3.5 million. The non-traded REIT bought the 1980s-era properties in an all-cash transaction. The two facilities – one located in Phoenix and one located in Tempe, AZ – were acquired from a local owner-operator. Bill Alter with R&G Commercial brokered the transaction. With the addition of these two properties, Strategic Storage Trust now owns four self-storage assets in the Phoenix metro area. Last month, the REIT acquired a 570-unit self storage property in nearby Mesa AZ. The company also owns a 520-unit property at 2727 West Missouri Ave. in Phoenix. The recent Phoenix acquisition is situated on 3.3 acres at 3636 East Washington St. It contains approximately 73,000 rentable square feet in about 440 units. The Tempe property is situated on 2.8 acres at 1135 West Broadway Rd. It contains roughly 55,500 rentable square feet in about 440 units. The properties have a combined economic occupancy of 71 percent, according to Wayne Johnson, senior vice president of acquisitions for Strategic Storage Trust. Both properties will be rebranded under the SmartStop Self Storage trade name. Johnson describes the properties as “bread and butter” self-storage, pointing to the single-story design, wide drive lanes and lack of corridors or elevators. He tells GlobeSt. that Strategic Storage Trust plans to invest $500,000 to upgrade and improve the properties.

“This is truly a value-added deal,” Johnson says. “We plan to make significant capital expenditures including new roofs, door replacement, drive lanes, painting and new signage. These are well-located, seasoned properties, and with capex and aggressive management, we are confident we can increase performance.” Johnson says Strategic Storage Trust is actively looking for more acquisition opportunities in the Phoenix area. “From a management standpoint, we’ve aggregated enough properties where management is more efficient,” he explains. “We’re very interested in additional properties.”

Three tenants sign for 130,000 feet at Ryan West Business Park in Tolleson Jan Buchholz May 10, 2010 An online retailer that specializes in “ride on” toys has leased 74,700 square feet at Ryan West Business Park, 8313 W. Pierce St., in Tolleson. Mobileation, which sells items like child-size cars, scooters, bikes and rocking horses, has been doing business in Anthem but will move this summer to the West Valley location. The announcement was made by landlord Liberty Property Trust (NYSE:LRY). Liberty also leased space to Blood Systems and Freeport McMoRan at Cotton Center IV near 44th Street and East Broadway Road. Both tenants are renewals with significant expansions. Blood Systems, a transfusion and research company, more than doubled its space to nearly 23,500 square feet. Freeport McMoRan, which is headquartered in downtown Phoenix and will move into the new Central Park East building this summer, has leased 31,100 square feet of auxiliary space, also more than double what it currently leases at the southeast Phoenix location. Liberty said Cotton Center IV now is 100 percent leased. The real estate investment trust is based in Malvern, Penn. It owns and manages about 1.5 million square feet in Arizona and has a regional office in Phoenix. Read more: Three tenants sign for 130,000 feet at Ryan West Business Park in Tolleson - Phoenix Business Journal:

ICM Signs For 16,000 SF at Cotton Center Four By Robert Carr May 7, 2010 PHOENIX-ICM Document Solutions has leased 16,000 square feet at Carlson Cotton Center Four, at 4320 E. Cotton Center Blvd. The signing brings the 57,055-square-foot building to 100% leased. The Phoenix-based document management firm is relocating to the 280-acre Cotton business park, located one-half mile south of Interstate 10 at 40th Street, from a previous location at 36th Street and University. The company specializes in document imaging, technical documentation, CAD drafting services and software consulting. The Cotton Center Four building features four one-story office-flex buildings, for a total 264,000 square feet. Marc Tuite and Chris Carney with Cassidy Turley BRE Commercial’s industrial group represented ICM in the lease. Cushman and Wakefield represented the owner, Carlson Real Estate Co.

NEVINS ADAMS SPENDS $12.96 MILLION TO PURCHASE 216 APARTMENT UNITS IN DEER VALLEY AREA May 7, 2010 Phoenix – A company formed by Nevins, Adams, Lewbel and Schell in Santa Barbara, Calif. (Henry Nevins, Mike Schell, principals) paid $12.76 million ($60,000 per unit) to buy the 216-unit Ridge Gate apartments located at 2811 W. Deer Valley Road in Phoenix. The seller was Ridge Gate Apartments LLC, a company formed by Verde Property Investments LLC in Phoenix (Ernest “Ernie” Garcia, member). The sale was brokered by Brad Goff and Dave Lord of Apartment Realty Advisors in Phoenix. The buyer acquired the property with a $5.549 million downpayment and a $7.411 million Fannie Mae loan issued by CBRE Multifamily Capital Inc. Ridge Gate, which was built in 1998, is located in the Deer Valley area of north Phoenix. Nevins, Adams, Lewbel and Schell (NALS) own 13,000+ apartment units in 12 markets across the country. Of those projects, more than 2,000 of the units are located in Arizona. The company is looking to expand its holdings in Arizona as well as other markets. In August 2009, BREW reported NALS paying $29 million ($91,772 per unit) to buy the 316-unit San Tropez apartments at 2600 N. Hayden Road in Scottsdale. The sale of Ridge Gate marks the third time the property has traded in the past three months. In February, BREW reported the company formed by Verde Property Investments paying $11.88 million ($55,000 per unit) to purchase Ridge Gate. The seller was Deer Valley Apartments LLC in Phoenix (Kenn Francis, Todd Thorpe, Mike Ingram, principals). On the same day of the sale to Verde Property Investments, Deer Valley Apartments LLC paid $11.556 million ($53,500 per unit) to buy Ridge Gate. Find out more from Schell at (480) 423-7050. Amr Ceran and Brian Garcia are the contacts at Verde Investments . . . call them at (602) 778-5000. Talk to Goff and Lord at (602) 252-4232.

NNN-Leased Industrial Goes for $3.4M California Investor Takes Phoenix Facility for $80 PSF By David Whitmore May 4, 2010 A California-based trust purchased the industrial building at 3701 W. Cambridge Ave. in Phoenix for $3.4 million, or approximately $80 per square foot. The facility measures 42,127 square feet and completed construction in 1981. Features include 12,784 square feet of office space, 13 loading docks, five drive-in bays, and 800 amps of power. The property is 100 percent leased to Arizona Correctional Industries on a triple-net basis and sold at a cap rate of 9.45 percent, based on a reported net operating income of $321,300. Erik Marsh and Sam Hanna with Marcus & Millichap in Phoenix represented the seller, Stellar Corp. Jorge Jimenez and Aaron Bove of Marcus & Millichap in San Diego represented the buyer. Please refer to CoStar COMPS #1901091

B/E Aerospace Leases 47,400 SF in Phoenix World’s Leading Interior Aircraft Manufacturer Signs Deal By Shane Beyer May 4, 2010 B/E Aerospace, a commercial parts and interior aircraft manufacturer, leased 47,433 square feet at 480 N. 54th St. in Chandler, AZ. The warehouse building totals 90,196 square feet and is in the 10 Chandler Industrial Park. Lincoln Property Co. developed the property in 2008. The remaining 42,763 square feet is available for lease with Cushman & Wakefield. James Wilson of Cushman & Wakefield represented the tenant. Mark Detmer, Bo Mills and Mike Kasulaitis represented the Landlord.

Mobileation Takes 75,000 SF in Phoenix Toy Manufacturer Leases Industrial Space at Ryan West Business Park By Shane Beyer May 4, 2010 Mobileation Inc., a leading online toy manufacturer and distributor, signed for 74,718 square feet in the Ryan West Business Park at 8313 W. Pierce St. in Tolleson, AZ. The warehouse building totals 227,258 square feet and is near I-10. The other tenants include Owens & Minor and Quiteflex Manufacturing. Ryan Cos. US developed the property in 2007, according to CoStar information. Orin Anderson of BGA Realty Partners represented the tenant. Bo Mills, Mark Detmer and Will Strong of Cushman & Wakefield represented the landlord, Liberty Property Trust.

Equiant Financial Expands into 17,350 SF By Jennifer Duell Popovec May 5, 2010 SCOTTSDALE, AZ-Equiant Financial Services Inc. has leased 17,350 square feet in Chaparral Business Center VI, located at the northwest corner of Loop 101 and Chaparral Road. The firm is expanding and relocating from its current 16,000-square-foot offices in downtown this summer, according to Cooper Sutherland, finance/development manager for Lincoln Property Co., which developed and manages Chaparral Business Center VI. Located at 5401 North Pima Rd., the complex consists of 70,735 square feet and has an asking rent of $23.50 per square foot. Cooper tells GlobeSt. that Chaparral Business Center VI offers better space efficiency than the firm’s previous location. Additionally, the firm’s new lease includes prominent signage that is visible from Loop 101 where 160,000 vehicles pass daily. “This location is a great fit for us,” says Don Schade, vice president of Equiant. “We were looking for a building that would allow us to start fresh and design efficient workspace for our company. With the Equiant lease, Chaparral Business Center VI is 92% occupied. Other tenants in the complex include: Fender Musical Instruments Corp., OneNeck IT Services and Keller Williams Realty. Kevin Calihan of CB Richard Ellis represented Equiant, while Jerry Roberts and Corey Hawley, also of CBRE, represented the landlord.

SO. CAL.-BASED COMPANY ACQUIRES TEMPE APARTMENT PROJECT . . . WANTS MORE April 30, 2010 Tempe – IW/Tempe Properties LLC in La Jolla, Calif. (Alex Roudi, principal) paid $2.515 million ($57,159 per unit) to purchase the 44-unit Regency apartments located at 1100 E. Lemon Street in Tempe. The seller was Compass Bank in Phoenix. The buyer was represented by Barbara Lloyd of NAI Horizon in Phoenix. Public records show Roudi’s company acquired the project with a $1.886 million loan from Heritage Bank in Phoenix. Regency was built in 1963 and renovated in 2009. Regency last traded in December 2005 when BREW reported a company formed by investor Brad Wilde of Tempe paying $2.725 million to buy the project. Compass Bank foreclosed on a loan that was collateralized by the apartment complex. Roudi is chairman of the privately-held Interwest Capital Corp. in La Jolla. That company focuses on real estate investment and finance. According to its website, Interwest Capital Corp. buys multi-family, office, hospitality, retail, industrial and land in specific markets located in the United States. The company also purchases performing and non-performing loans secured by real estate. Interwest Capital Corp. is interested in acquiring additional multi-family projects in the Valley as well as hospitality properties. Roudi’s company also has an interest in a 901-acre planed community west of Phoenix called Desert Whisper. That property, located in Maricopa County, is targeted for 2,760 residential lots. Get more from Scott Whitman of Interwest Capital by calling (858) 622-4900. Lloyd is at (602) 955-4000.

Fountain Hills offices sell for $3.1M Apr 30, 2010 BRM Arizona LLC is the new owner of a Fountain Hills office complex following a $3.1 million deal that Cassidy Turley BRE Commercial, which brokered both ends of the sale, announced Thursday. The Red Rock Business Center at 17100 E. Shea Blvd. and 9624 N. Monterey Road comprises 42,126 square feet of Class B office space in four buildings. The purchase includes a 1.6-acre land pad zoned for an additional office building. The property currently is 50 percent leased. The seller was CTF5-Firerock LLC, a Newport Beach, Calif., firm. BRM Arizona LLC is based in Lincoln, Neb.

Red Rock Business Center Trades for $3M By Jennifer Duell Popovec April 30, 2010 FOUNTAIN HILLS, AZ-A private investor from Lincoln, NE, has acquired Red Rock Business Center for $3.1 million in a short-sale with Newport Beach, CA-based CT Realty. Red Rock Business Center consists of four class B office buildings totaling 42,126 square feet, along with a 1.63 acre parcel for a fifth and final office building. Located at 17100 E. Shea Blvd. and 9624 N. Monterey Rd., the property was built in phases from 1998 to 2008. Currently, the property is 50 percent occupied with local tenant and regional offices including Prudential Properties and Edward Jones. The asking lease rate for the buildings is $19 to $20 per square foot, full-service. “The condition of the buildings is very good, but the property does offer a value-added opportunity in that the buildings need to be leased and stabilized,” says Mike Coover, vice president with Cassidy Turley BRE Commercial’s Investment group. He and Eric Wichterman, executive vice president in the same group, represented the buyer, BRM Arizona LLC, and the seller. Coover tells GlobeSt. that BRM Arizona bought Red Rock Business Center at an in-place cap rate of nearly 9.4%. “It’s a very good deal for the buyer,” he adds, noting that the property would trade likely trade for $8 million to $8.5 million once it’s stabilized. “The buyer bought the property for significantly less than the note.” Originally, Red Rock Business Center was listed for $6 million. It was on the market for roughly 12 months before BRM Arizona acquired it. “It’s very difficult

to find office buildings that make sense to purchase in our market today because they are not priced appropriately,” Coover says. “This seller because more motivated as time went on.”

Local Investor Drops $5M on MF Short-Sale By Jennifer Duell Popovec April 27, 2010 PHOENIX-A Scottsdale-based partnership has purchased the 144-unit Rancho Encanto Apartments for $5.3 million, all cash, in a lender short-sale. Rancho Encanto Apartment Partners LLC acquired the class B, garden-style property from local owner, Rancho Encanto 35th Ave LLC. The seller was distressed, which forced the lender short-sale, says Steve Nicoluzakis, executive vice president with Cassidy Turley BRE Commercial. He and Dave Fogler brokered the sale. Located at 15615 N. 35th Ave., Rancho Encanto Apartments is the first multifamily property the partnership has acquired in the area. The 1980s-era community has a unit mix of one- and two-bedroom units with an average size of 643 square feet and average rents of $625 per month. Amenities include a pool, fitness center, clubhouse and laundry facility. Rancho Encanto was 75% occupied at the time of sale. Nicoluzakis tells GlobeSt.com that the property was on the market for less than 30 days and received 20 offers. "Rancho Encanto is a quality asset and location for a good price," he adds. The new owner has hired Parawest Management to renovate and operate the complex. Plans call for more than $3,000 per unit to be spent on upgrades.

Mercado Del Rancho Sells for $4M High Vacancy Scottsdale Office Changes Hands By Tomalina Pacheco April 28, 2010 ESI Ventures purchased Mercado Del Rancho in Scottsdale, AZ, from CWCapital for $4 million, or $56 per square foot. The three-story office building at 10301 N. 92nd St. totals 70,948 square feet and delivered in 1985. The buyer is going to keep the building as office and lease out the remaining available space. Barry Gabel and Mindy Korth represented the seller. The buyer was self-represented. For more information, please refer to CoStar COMPS #1905320.

Desert Sands of Tucson buys Casa Grande complex

John McLean Apr. 29, 2010 Desert Sands Apartments LLC of Las Vegas sold Desert Sands Apartments at 720 W. O'Neil Drive in Casa Grande to HSL Desert Sands Properties LLC of Tucson for $16.75 million. Chuck LaBenz of Hendricks and Partners in Phoenix represented the seller and Art Wadlund of the Hendricks and Partners Tucson office represented the buyer of this 323-unit apartment community.

Largest medical, education leases signed in Valley in ’09 James Poulin April 30, 2010 The University of Phoenix took out four of the Valley’s largest education-related lease in 2009, including 1225 W. Washington St. in Tempe. Medical leases Humana Address: 8990 W. Glendale Ave., Glendale. Space: 106,508 square feet. Term: 10 years. Healthways Address: 1445 S. Spectrum Blvd., Chandler. Space: 75,000 square feet. Term: About 7 years. VHS Phoenix Health Plan Address: 7878 N. 16th St., Phoenix. Space: 44,700 square feet. Term: 5 years. MicroSpine Address: 8600 E. Anderson Drive, Scottsdale. Space: 34,000 square feet. Term: 10 years. Dr. Philip Bowman Address: 3201 W. Peoria Ave., Phoenix. Space: 17,800 square feet. Term: 3 years.

Biltmore Surgical Partners Address: 2222 E. Highland Ave., Phoenix. Space: 16,500 square feet. Term: About 10 years. Paradise Valley Wound Care Unit Address: 3805 E. Bell Road, Phoenix. Space: 12,200 square feet. Term: About 7 years. Phoenician Medical Center Address: 606 N. Country Club Drive, Mesa. Space: 12,200 square feet. Term: Indefinite. Goodman & Partridge OB/Gyn Address: 2545 W. Frye Road, Chandler. Space: 9,900 square feet. Term: Indefinite. Arizona Perinatal Providers Address: 18699 N. 67th Ave., Glendale. Space: 9,900 square feet. Term: 5 years. Education leases University of Phoenix Address: 1717 W. 16th St., Tempe. Space: 113,300 square feet. Term: About 5 years. University of Phoenix Address: 1225 W. Washington St., Tempe. Space: 83,300 square feet. Term: About 3 years.

University of Phoenix Address: 1401 S. 52nd St., Tempe. Space: 70,000 square feet. Term: About 7 years. Grand Canyon Education Inc. Address: 2411 W. Peoria Ave., Phoenix. Space: 52,300 square feet. Term: 2.5 years. Brookline College Address: 2445 W. Dunlap Ave., Phoenix. Space: 48,400 square feet. Term: 3 years. Education Management Address: 2150 E. Germann Road, Chandler. Space: 47,000 square feet. Term: Not disclosed. University of Phoenix Address: 875 W. Elliot Road, Tempe. Space: 38,200 square feet. Term: 6 years. Grand Canyon University Address: 2401 W. Peoria Ave., Phoenix. Space: 37,700 square feet. Term: 3 years. Brookline College Address: 1140-1150 S. Priest Drive, Tempe. Space: 31,800 square feet. Term: About 10 years.

Brown Mackie College Address: 13430 N. Black Canyon Hwy., Phoenix. Space: 29,600 square feet. Term: About 10 years. Source: Mark Dancer, senior research analyst, Jones Lang LaSalle

WOLFSWINKELS SELL LAND IN HARQUAHALA VALLEY AND PINAL COUNTY FOR $135 MILLION April 23, 2010 Maricopa County/Pinal County – In deals valued at $135 million, companies formed by Gary Tharaldson of Tharaldson Cos. in Fargo, N.D. has taken control of 15,470 acres in the Harquahala Valley area of Maricopa County, and 4,424 acres in six parcels in Pinal County. The seller in multiple transactions were companies formed by members of the Conley Wolfswinkel family in Tempe. Tharaldson, on the Forbes list of richest Americans, had previously loaned money to the Wolfswinkel companies that owned the properties in Maricopa and Pinal counties. Tharaldson is now the managing member of the entities that own the parcels and the Wolfswinkel companies remain as a minority partner. Tharaldson is one of the biggest hotel developers in the world. In 2006, Tharaldson sold 130 hotels for $1.2 billion to an affiliated company of Goldman Sachs in New York City, N.Y. Tharaldson still owns and manages more than 220 hotels located in 30 states across the country. All of the land in both Maricopa and Pinal counties is now leased to multiple farming entities. Representatives of Tharaldson Cos. say the parcels will continue to be used for farming purposes and the acreage will eventually be developed primarily for residential use. In July 2005, BREW reported companies formed by the Wolfswinkels paying $94.35 million in cash to buy the 15,470 acres located about 35 miles west of Phoenix in the Harquahala Valley area. The property was once targeted for development as a master-planned community of more than 50,000 residences. The tract generally is bounded on the north by Centennial Road, on the south by Dobbins Road, on the east by 491st Avenue and on the west by 539th Avenue. Sources say Tharaldson loaned the Wolfswinkels $30 million which was collateralized by the Harquahala acreage. Here is a description, location and price Tharaldson’s company paid for the land in Pinal County: 612 acres at Bella Vista Road and Sierra Vista Drive,$12.9 million; 540 acres at Amarillo Valley Road and the Kortsen Road alignment, $4.3 million; 655

acres at Miller and Maricopa roads (Stare Route 347), $5.4 million; 1,097 acres at Stanfield Road and Highway 84, $8.075 million, and 961 acres in Casa Grande at Trekell and Houser roads and 559 acres in the city of Eloy at Hermanas and Houser roads, $13.8 million. Sources say Tharaldson loaned the Wolfswinkels $105 million to refinance and/or acquire those parcels. Principals in the Wolfswinkel companies include Ashton Wolfswinkel, Brandon Wolfswinkel, Candice Wolfswinkel and Damian Robinson. The contact at Tharaldson Cos. is Warren DeHaan . . . call him at (415) 519-7200. Lee Johnson is the contact for the Wolfswinkels on the deal with Tharaldson . . . reach him at (480) 831-2000.

Tucson Investor Buys Phoenix Apartment Complex Desert Sands Apartments Sells for $16.8M By Karen Schutte April 21, 2010 Inland Empire Builders sold the Desert Sands Apartments at 720 W. O'Neil Drive in Casa Grande, AZ, to Tucson-based investor HSL Properties, for $16.75 million, or about $52,000 per unit. The 323-unit apartment complex was built in 2008. It reached 78 percent occupancy before the economic downturn and has remained at a low vacancy. The complex is comprised of two-story, garden-style buildings housing a mix of one-bedroom, two-bedroom and three-bedroom units. Chuck LaBenz and Art Wadlund of Hendricks & Partners represented the seller. HSL Properties was self-represented in the transaction. For additional information, see CoStar COMPS #1900486.

Medical buildings sell for $6.6M A consortium of doctors and affiliated firms has purchased two medical office buildings, one in Mesa and one in Sun City. BDPEC Medical Properties LLC, which is affiliated with the Barnet Dulaney Perkins Eye Center, paid $6.6 million for both properties. The Phoenix office of Cohen Financial arranged the financing, which included a combination of a 25-year fixed-rate bank loan and a 20-year Small Business Administration loan. The seller of the 14,400-square-foot medical office property at 5250 E. Southern Ave. in Mesa was KBAD 22 Enterprises LLC. The seller of the 14,230-square-foot medical office building at 9425 W. Bell Road in Sun City was Dulaney Family Trust. Read more: Medical buildings sell for $6.6M - Phoenix Business Journal:

ALLRED VENTURE BUYS 13 ACRES SOUTH OF SKY HARBOR AIRPORT . . . TO BUILD PARKING FACILITY April 16, 2010 Phoenix – University Parking Venture LLC, a company formed by Douglas Allred Co. in San Diego, Calif. (Douglas Allred, David Allred principals), paid $5.16 million to purchase a 13.2-acre parcel of vacant land located at the southwest corner of the Hohokam Expressway (State Route 143) and University Drive in Phoenix. The seller was AG/Mainstreet Compass Center LLC, a venture formed by Angelo, Gordon & Co. of New York City, N.Y. and Mainstreet Capital Partners in Phoenix (David Warren, principal). Warren has remained in the deal and is part of the new venture formed by Allred. The seller was represented by Mike Beall and Jim Wilson of Cushman & Wakefield of Arizona Inc. in Phoenix. The buyer paid cash for the property. The new owner intends to use the land for a 1,550 space parking facility that will serve Phoenix Sky Harbor International Airport. The new parking lot will be the only parking facility located south of the airport. Construction slated to begin in May, with completion expected by October. Hardison Downey Construction in Phoenix to serve as contractor. No word on construction cost. Financing to come from within. In June 2006, BREW reported AG/Mainstreet Compass Center buying the land it sold to Allred’s venture as part of a larger purchase. That acquisition included a 132,000-square-foot office building located at 3150 S. 48th Street in Phoenix and 18 acres of undeveloped land. In March 2007, BREW reported AG/Mainstreet Compass selling the office project. The buyer in that $27.185 million deal ($205.80 per foot) was Arden Realty Inc. in Los Angeles. AG/Mainstreet Compass sold a 5-acre hotel site in July 2007 to Kuber Development for $4.4 million. Over the years, BREW has reported The Douglas Allred Co. developing office and industrial projects and buying multi-family properties in the Phoenix area. The company is looking for additional investment opportunities in the Valley. Warren also has been an active player in

the Valley real estate market. Get more from the Allreds at (858) 793-0202. Talk to Warren at (602) 810-8494. Call Beall and Wilson at (602) 253-7900.

Retail short sale in Gilbert turns $1.1M Jan Buchholz April 21, 2010 What may be one of the few commercial short sales in Phoenix closed recently and involved a vacant retail property in Gilbert. The Shops at Fiesta Ranch, a 16,718 shopping center at the northeast corner of Guadalupe and McQueen roads, sold for $1.1 million in a short sale negotiated with the seller’s lender, Wells Fargo Bank. The broker, who represented the seller, was Greg Abbott of DeRito Partners Inc. Abbott negotiated the deal on behalf of client, Fiesta Ranch LLC, the San Diego company which built the shopping center in 2007. The buyer in the short sale was Chandler-based Guadalupe Retail LLC. Abbott said the developers had negotiated three to four leases when the property was built, but those retailers “ended up not expanding due to the conditions in the economy.” Interiors at the center are not complete, so the buyers will finish construction, he said. “The buyer will be able to now offer very attractive rental rates which will be very attractive to area tenants looking to add a location or relocated,” Abbott said. Read more: Retail short sale in Gilbert turns $1.1M - Phoenix Business Journal:

Ninyo & Moore buys $2M flex building April 14, 2010 Ninyo & Moore, a geotechnical and environmental consulting firm, purchased a 32,204-square-foot flex office building at Southbank Business Park in Phoenix for $2 million. A former tenant in a nearby building, Ninyo & Moore is taking advantage of lower pricing that is the result of the economic factors, according to Pat Harlan, senior director at Cushman & Wakefield of Arizona. “We’re seeing an increase in the velocity of owner-user sales due to increased optimism in the local economy,” Harlan said. The sale closed April 13. The address is 3202 E. Harvard Drive. The seller was Frontier Investments LLC, which is associated with Westward Corp. Both are Nevada-based entities. Harlan represented the buyer. Commercial Properties Inc. in Tempe represented the seller. Read more: Ninyo & Moore buys $2M flex building - Phoenix Business Journal:

ALLRED VENTURE BUYS 13 ACRES SOUTH OF SKY HARBOR AIRPORT . . . TO BUILD PARKING FACILITY April 16, 2010 Phoenix – University Parking Venture LLC, a company formed by Douglas Allred Co. in San Diego, Calif. (Douglas Allred, David Allred principals), paid $5.16 million to purchase a 13.2-acre parcel of vacant land located at the southwest corner of the Hohokam Expressway (State Route 143) and University Drive in Phoenix. The seller was AG/Mainstreet Compass Center LLC, a venture formed by Angelo, Gordon & Co. of New York City, N.Y. and Mainstreet Capital Partners in Phoenix (David Warren, principal). Warren has remained in the deal and is part of the new venture formed by Allred. The seller was represented by Mike Beall and Jim Wilson of Cushman & Wakefield of Arizona Inc. in Phoenix. The buyer paid cash for the property. The new owner intends to use the land for a 1,550 space parking facility that will serve Phoenix Sky Harbor International Airport. The new parking lot will be the only parking facility located south of the airport. Construction slated to begin in May, with completion expected by October. Hardison Downey Construction in Phoenix to serve as contractor. No word on construction cost. Financing to come from within. In June 2006, BREW reported AG/Mainstreet Compass Center buying the land it sold to Allred’s venture as part of a larger purchase. That acquisition included a 132,000-square-foot office building located at 3150 S. 48th Street in Phoenix and 18 acres of undeveloped land. In March 2007, BREW reported AG/Mainstreet Compass selling the office project. The buyer in that $27.185 million deal ($205.80 per foot) was Arden Realty Inc. in Los Angeles. AG/Mainstreet Compass sold a 5-acre hotel site in July 2007 to Kuber Development for $4.4 million. Over the years, BREW has reported The Douglas Allred Co. developing office and industrial projects and buying multi-family properties in the Phoenix area. The company is looking for additional

investment opportunities in the Valley. Warren also has been an active player in the Valley real estate market. Get more from the Allreds at (858) 793-0202. Talk to Warren at (602) 810-8494. Call Beall and Wilson at (602) 253-7900.

Duke Expands Footprint with $9M Industrial Buy By Jennifer Duell Popovec April 12, 2010 PHOENIX-A subsidiary of Indianapolis, Ind.-based Duke Realty Corp. has acquired a 250,157-square-foot distribution building in Estrella Business Park for $8.75 million. The seller was a private individual from Honolulu, doing business under the name of 1600 Broadway LLC. Located at 1002 S. 63rd Ave. on the northwest corner of 63rd Avenue and Buckeye Road in southwest Phoenix, the building is 100 percent leased to three tenants: General Nutrition Center (GNC), Lagasse Sweet and the Arizona Department of Economic Security. It features dock-high loading capability with easy truck maneuverability, along with proximity to Interstate 10 for convenient freeway access. Barry Gabel and Mindy Korth of CBRE’s Phoenix office handled the transaction for both parties. Gabel tells GlobeSt. that 1990s-era building was on the market for 45 days and received eight offers. “This is a stabilized asset in good condition that is fully leased to credit tenants,” Gabel notes, adding that the building’s lease roll from two to six years. “There aren’t a lot of buildings like this one on the market. For that reason, we had a lot of interest.” Gabel notes that Duke Realty purchased the building for about $35 per square foot – below replacement cost. “With no new development on the horizon, investors are now looking at strategic acquisition opportunities for existing buildings in the Phoenix area, and Duke saw an opportunity to add to its portfolio.”

As part of the deal, Duke Realty assumed a $4.6 million mortgage loan with a life insurance company. “Duke had a good relationship with the lender, which worked out great for the loan assumption,” Gabel notes. In addition to this recent acquisition, Duke Realty owns properties in Buckeye Logistics Center and Goodyear Crossing Industrial Park in suburban Phoenix.

Strategic Storage Trust buys Mesa facility April 12, 2010 Strategic Storage Trust Inc., a California real estate investment trust, has acquired a 570-unit self-storage facility in Mesa. Augusta Ranch Self Storage, 9252 E. Guadalupe Road, was developed in 2002 and contains 75,600 rentable square feet in six single-story buildings. The business will be renamed under Strategic Storage’s SmartStop brand. Financial details of the transaction were not released. “We plan to continue acquiring self storage opportunities in Phoenix and other major markets throughout the country,” said Wayne Johnson, senior vice president of acquisitions for Strategic Storage. Since SSTI’s launch two years ago, its portfolio has expanded to include 30 properties in 14 states. The publicly registered, non-traded REIT owns about 20,000 self storage units. Read more: Strategic Storage Trust buys Mesa facility - Phoenix Business Journal:

Strategic Self Storage Makes Second AZ Buy By Jennifer Duell Popovec April 12, 2010 MESA, AZ-Strategic Storage Trust Inc. has acquired Augusta Ranch Self Storage just days before the property’s special servicer planned to foreclose on the 570-unit self storage facility. As part of the deal, the publicly registered, non-traded REIT assumed a $3.1 million CMBS loan with a 5.38% interest rate, according to Chairman and CEO H. Michael Schwartz. The loan, which has a 30-year amortization schedule, is due in five years. The seller was Phoenix-based AR Self Storage LLC. Michelle Watson of Marcus & Millichap’s Phoenix office brokered the deal in an off-market transaction. Schwartz tells GlobeSt. that the seller was distressed, which caused the property to move into special servicing prior to Strategic Storage Trust’s acquisition. Located at 9252 E. Guadalupe Rd., the self-storage facility contains roughly 75,600 net rentable square feet in six single-story buildings on 4.6 acres. It boasts drive-up units, interior climate control units, RV/Boat parking, a large retail office and U-Haul truck rental dealership. “I wish I had a 100 of these opportunities,” Schwartz tells GlobeSt. Developed in 2002, the facility currently has an occupancy rate of about 81%, Schwartz says, slightly higher than the REIT’s portfolio average of 79.3 percent. It is the second self-storage property the REIT has acquired in the Phoenix metro area since its inception two years ago.

“We’re excited to grow in the Phoenix area,” Schwartz says, adding that the new facility will be renamed under Strategic Storage’s SmartStop brand. “We continue to look for acquisition opportunities here. We consider this a grow market, despite its current economic difficulties.” During the first quarter of this year, Strategic Storage Trust acquired $24 million worth of self-storage facilities. The REIT expects to deploy $200 million to $300 million in acquisition capital this year, Schwartz says. Today, the firm owns 30 properties in 14 states.

Pulte buys 88 Gilbert lots for $5.7M BY Jan Buchholz April 13, 2010 PulteGroup Inc. announced Monday that it purchased 88 finished lots in Gilbert at the Lyon’s Gate master-planned community located near Higley and Ray roads. Pulte spokesperson Jacque Petroulakis said PulteGroup purchased the land from an undisclosed group of investors who had bought the land from Orleans Homes in December 2007. Pulte also did not want to disclose the price, but Phoenix Business Journal records show that Pulte paid almost $5.7 million for the lots. Pulte will build homes ranging in size from 2,400 to 3,500 square feet. No word on when those homes will be up for sale or what the pricing will be. This is the second major acquisition for Pulte in the Gilbert area. In October Pulte, along with Meritage Homes and Toll Brothers, collectively purchased 232 finished lots at Stratland Estates in Gilbert for $13.3 million. Pulte received 106 lots, according to trade publication Business Real Estate Weekly. In Pulte’s announcement about Lyon’s Gate, the company said its Stratland Estates homes will be open for sales in early May. Read more: Pulte buys 88 Gilbert lots for $5.7M - Phoenix Business Journal:

Tucson Investor Makes $17M Apt. Buy By Jennifer Duell Popovec CASA GRANDE, AZ-HSL Properties of Tucson has acquired the 323-unit Desert Sands Apartments for $16.8 million from Desert Sands Apartments LLC. Located at 720 W. O’Neil Dr., the class A, garden-style community is the first acquisition the firm has made in Casa Grande, although it has been actively seeking opportunities in Tucson and Phoenix markets, according to Omar Mireles, executive vice president of HSL Properties. Mireles tells GlobeSt. that while Casa Grande is a tertiary market, HSL Properties believes it is an area that will experience very significant growth in the long term. Moreover, Desert Sands Apartments currently is underperforming the market’s average occupancy by more than 10 percent, reporting an occupancy rate of 74 percent at purchase time despite its positioning as one of the top two apartment communities in the market. “We have a great opportunity to vastly improve the property’s performance in a relatively quick timeframe,” Mireles says. “The property is a newly constructed, high-quality apartment community that we were able to acquire well below replacement value.” Constructed in 2008, Desert Sands Apartments has a mix of one, two, and three-bedroom units ranging from 664 square feet to 1,042 square feet. Rents range from $638 to $835 per month. HSL Properties obtained a $12.88 million loan from JP Morgan Chase, Mireles

notes, adding that the loan was in essence an assumption of the financing that the seller had in place. “Lastly, we were able to place a very attractive bridge loan on the property that enabled us to leverage almost 77% of the acquisition,” he says. As with HSL Properties’ other recent acquisitions, the firm plans to hold Desert Sands Apartments for the long-term (five to 10 plus years), Mireles says. “Of course, if the right offer comes along, we will take a serious look at it, but we are going into this investment with long-term operating cash flow expectations,” he explains. Art Wadlund of Hendricks & Partners’ Tucson office represented the seller in the transaction.

Tesco to open three Fresh and Easy stores BY Lynn Ducey April 7, 2010 The British grocery invasion into metro Phoenix continues with openings of three Fresh and Easy stores across the Valley this month. United Kingdom-based Tesco will open Fresh and Easy stores in Scottsdale, central Phoenix and the West Valley in April. On April 14, stores at Hayden and Thomas Road in Scottsdale and at 40th Street and Camelback Road will open. Those stores will be followed by the April 21 opening of a Fresh and Easy store at 83rd Avenue and Camelback Road. With the April openings, Fresh and Easy will operate 34 stores in the metro Phoenix market. In addition to the three new Arizona stores, the firm has plans for eight new stores in California, including four that opened on Wednesday in Burbank, Ontario, Baldwin Park and Downey. Four other California stores are set to open this month in Bakersfield, La Quinta and Wasco. Fresh and Easy is the American expression of British-based Tesco. While Tesco is a large-scale grocery store, Fresh and Easy groceries are located in neighborhood areas, have a smaller footprint and offer a variety of foods, including a large selection of items prepared on-site as well as ready-to-eat or ready-to-heat meals. The new Fresh and Easy stores to open this month include:

Scottsdale: 7901 E. Thomas Road. Phoenix: 3933 E. Camelback Road. Phoenix: 8365 W. Camelback Road. Read more: Tesco to open three Fresh and Easy stores - Phoenix Business Journal:

Healthcare Trust Closes $146M in Acquisitions By Jennifer Duell Popovec April 6, 201 SCOTTSDALE, AZ-Healthcare Trust of America Inc. had a busy first quarter, acquiring 13 medical office buildings totaling 673,000 square feet for $146.3 million. The properties are located across the nation. With the acquisition, the non-traded REIT now owns a portfolio totaling 8.1 million square feet of gross leasable area that is valued at approximately $1.61 billion. Roughly 70% of Healthcare Trust’s properties are located on or adjacent to a hospital campus. The portfolio is currently more than 90% leased. The acquisitions were made as part of nine deals, according to a statement from the REIT. On average, the buildings have remaining lease terms of 10 years or more and occupancy rates of 98.5%. The newly acquired assets are occupied by credit tenants; 64% of the occupied space is leased by five major tenants with credit ratings ranging from A+ to AAA (Fitch). The REIT acquired the properties using cash, according to Mark Engstrom, executive vice president-acquisitions for Healthcare Trust. The recent acquisitions include: Deaconess Clinic Portfolio in Evansville, Ind.; Triad Technology Center in Baltimore, Md.; Camp Creek Medical Center I and II in Atlanta; and The Medical Center at East Cooper in Mount Pleasant, S.C. In 2009, the REIT was an active acquirer of medical office buildings, investing more than $494 million in 54 properties totaling roughly 2.3 million square feet. Since its formation in 2006, Healthcare Trust has invested $1.61 billion.

Duke Realty unit buys Estrella Park building April 7, 2010 A subsidiary of real estate conglomerate Duke Realty Corp. in Indianapolis has puchased a distribution building at Estrella Business Park at the northwest corner of 63rd Avenue and Buckeye Road for $8.75 million. Duke Realty LP of Phoenix purchased the 250,200-square-foot building as an investment. It is 100 percent leased to three tenants: General Nutrition Center, Lagasse Sweet and the Arizona Department of Economic Security. The seller was 1600 Broadway LLC of Honolulu. “With no new development on the horizon, investors are now looking at strategic acquisition opportunities for existing buildings in the Phoenix area,” said Barry Gabel of CB Richard Ellis. Gabel partnered with Mindy Korth to represent the seller in the transaction. “This property drew a lot of interest. It is fully leased and well-maintained and located in a highly sought after infill distribution market. It could also be purchased below replacement cost.” Duke Realty Corp. has developed several large industrial projects in Phoenix and sold them. It appears the company is now in purchase mode. The building at Estrella Business Park was developed by Hiffman Shaffer Associates in 1996, according to CoStar data. Read more: Duke Realty unit buys Estrella Park building - Phoenix Business Journal:

Skincare Company Inks Deal for 216,845 SF By Jennifer Duell Popovec April 2, 2010 PHOENIX-philosophy, Inc., a local skincare and beauty company, has leased 216,845 square feet at 6913 West Buckeye Rd. in the Buckeye Logistics Center to expand its distribution capabilities.

Mesa Walgreens Sells for $1.9 Million Retail Property Trades for $122 PSF By Tomalina Pacheco April 2, 2010 The Walgreens at 755 E. Main St. in Mesa, AZ sold for $1.9 million, or $122 per square foot, in a sale between private investors. The 15,525-square-foot retail building was built in 1995. Walgreens occupies the single tenant property and has five years remaining on a 20-year lease. At the time of sale, the Cap rate was 12.61 percent. Ned Zivkovic , Tina Taylor and David Guido with Marcus & Millichap represented the buyer. Martin Cohan with Marcus & Millichap represented the seller. For more information please refer to CoStar COMPS #1872355.

Cedar Court Apts. Sells for $4.6 Million Multifamily Complex Trades in Glendale for $40K Per Room By Tomalina Pacheco April 2, 2010 Private investors acquired the Cedar Court Apartments at 5215 W. Peoria Ave. in Glendale, AZ, from WH Pingree Co. for $4.6 million, or about $39,655 per unit. The multifamily complex has a square footage of 77,408 and a total of 116 units. There are 80 one-bedroom units and 36 two-bedroom units. At the time of sale, the occupancy was at 83 percent and sold at a capitalization rate of 9.06 percent. Robert Chester and Marc Huisken with Cassidy Turley BRE Commercial represented the buyer and the seller. For more information on this transaction, please refer to CoStar COMPS #1857840

Monsanto Buys Casa Grande Warehouse for $4M Agricultural Company Purchases Industrial Building for $99 PSF By David Whitmore April 7, 2010 St. Louis-based agricultural giant Monsanto Co. purchased the industrial building at 749 W. Ash Ave. in Casa Grande, AZ, for $4 million, or $99 per square foot. Monsanto will own and occupy the property. The 40,550-square-foot warehouse completed construction in 2008 and features 2,050 square feet of office space. Additional features include a covered loading area, a concrete truck apron, 400 amps of power, four grade level doors and a four-position truck well with levelers. Kris Martin and Marc Tuite of Cassidy Turley BRE Commercial represented the seller, Windsong LLC. Craig Dayton of Dayton Co. Industrial Real Estate represented Monsanto. Please reference CoStar COMPS #1895119 for more information

Merrill Ranch parcel sold in Pinal County BY Jan Buchholz April 8, 2010 San Diego-based Southwest Value Partners and Golden Tree Insite Partners of New York and Sao Paulo, Brazil, are buying a 4,508-acre parcel at Merrill Ranch in Pinal County. The property had been taken back in 2009 by a group of 62 lenders after the owner, Merrill Ranch Investments LLC of Scottsdale and Atlanta, defaulted on a $100 million loan. The buyers did not disclose the purchase price, but local trade publication, Business Real Estate Weekly, wrote that the purchase price was nearly $27.7 million. SVP is jointly owned by Phoenix Suns majority owner Robert Sarver and Mark Schlossberg. Sarver is also chairman and CEO of Western Alliance Bancorp. SVP provided 30 percent of the funding and will manage day-to-day operations of the partnership with GTIS Partners, which invested 70 percent of the equity capital. The purchase is the second associated with the foreclosure. The Phoenix Business Journal wrote about marketing of the property in June 2009, when Bull Realty of Atlanta was retained by People’s Bank of Winder, Ga., the lead lender, to seek offers on the land. Bull Realty announced in January that it had obtained a buyer for 1,182 acres of the total 5,690-acre parcel. The undisclosed buyer of the first parcel paid a little over $8 million. On its Web site, Bull Realty says both purchases added up to $36 million, or $7 million more than the bank consortium paid at the foreclosure auction to take back the property. The SVP/GTIS news release states that the parcel is “partially entitled for up to

18,000 residential lots and an additional 900 acres are fully entitled for commercial use.” The land is located on both sides of the Hunt Highway west of Florence. The partnership will hold onto the land until new home building gains traction again. “As the Phoenix population and employment growth continues to stabilize, the residential lot market should return to equilibrium in the next several years,” Schlossberg said in the news release. Read more: Merrill Ranch parcel sold in Pinal County - Phoenix Business Journal:

TESTIMONIALS “Victor has been great about showing us opportunities that are right in line with our requirements. He is very creative in solving problems and overcoming objections. His diligence and persistence has helped us complete several terrific acquisitions. A real asset for our team.” Bret Jordan, Vice President Western America Equities LLC

“I use your publications, Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More, on a monthly basis. Both publications are helpful in keeping me updated on what’s happening in the market. I would recommend both of them to friends and colleagues.” David A. Damore, Esq., Partner Berry & Damore, LLC

“Honest, responsive and knowledgeable.” Russ Watson North American Development Group

“As you know, Ethan Christopher Arizona LLC does most of its business in Phoenix, Arizona with corporate headquarters in Encino, CA. Praedium Advisors’ newsletters helps me keep abreast of the most important developments that are going on in the marketplace. This information has proved to be very insightful for our organization and we look forward to enjoying the edge this resource allows us. Thank You” Aric Browne, Partner Ethan Christopher Arizona LLC

“We met Victor Allison in 2004. Within one week, he had located a property for us that we acquired. It has performed exceptionally well. Shortly thereafter, he also located an off-market medical office building and successfully negotiated with the seller to gain acceptance of our offer, even though other brokers were telling the seller that they could get a higher price. We have been very pleased with the properties located by Victor and his service to us. We have found him to be knowledgeable, trustworthy and very good to work with.” Jim Clark, President Western America Equities, LLC

“Your monthly newsletter is fantastic because it’s timely & comprehensive and in turn offers me an accurate snapshot of what’s happening in the market. I look forward to it every month!” Joe Holeva, Member MH Devco/Mohawk Ranch Ph 2/Avondale Business Park

“I love the insight that your newsletter provides our company. I look forward to the next edition.” Spike Lawrence, Partner Lawrence & Geyser Development

“I wanted to drop you a short note to let you know how much I appreciate your electronic newsletters. Having an ongoing summary of major real estate happenings in the Phoenix market is highly useful and saves me a great deal of time knowing that I can get the information I need all in one place. Keep up the great work!” Richard Zigler, President Kaplan Acquisitions, LLC

“As a NAREmeritus with 50 years of experience, I am most selective of professional relationships. Victor Allison has tried over time to deliver information in a very professional manner. Although we do not represent the public as a broker, Victor's service is a great efficiency device. Receiving only properties information that we are interested in saves much valuable time.” Charlie Wilson, RIM, CIC, NARE Metro Investing “I have come to rely on the Praedium newsletter as a valuable resource of information and trends in Arizona markets.” Tim Brown, Partner Demko Investment Group, LLC

“... despite representing a difficult buyer Victor Allison's negotiating skills kept both parties focused on the transaction instead of personalities. We ultimately closed escrow with a win/win situation for both buyer and seller.” Stephen C. Park, Managing Member Park / Gibbs Development Company, LLC

“I find your Phoenix Commercial Real Estate News & More to be a time saver for me. It has articles from several publications so if I can’t get time to read one or more of them, I catch them in your news letter. Keep up the good work. Thanks.” Mark Singerman, Regional Director Arizona Rockefeller Group Development Corporation

“Our experience working with Victor Allison couldn't have been better. He had all of the bases covered when it came to helping us lease one of our more challenging retail properties. Victor was particularly adept at screening and prepping tenant prospects, and that made our lease transactions flow quickly and smoothly.” Kurt Lefteroff Pacific Ridge, Inc.

“I would like to thank you for the assistance and sound advice you gave to me in the leasing of my office space here on Gainey Ranch. Your professionalism assisted me greatly in getting the very best deal I could here, which not only included getting an excellent dollar per square foot rate, but in also procuring free rent for signing the contract. Through your expertise I feel I had an edge in my dealings with the management company, and did not allow them to take advantage of my relative inexperience in the commercial real estate market. Thank you again.” Steven Bernstein Allstate Insurance Co.

“I read the Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More newsletters from “cover to cover” each month. The newsletters help me to focus on client projects that are or will be changing to meet the current real estate market. Knowing what is successfully being completed helps to plan future projects. I have recommended your newsletter to my associates and my clients. My associates need to be up to date on developments that may affect current or future projects. My clients benefit from knowing information on real estate transactions, so they can then plan their acquisitions accordingly. I will continue to watch the newsletter, to be better informed, when a real estate deal that I want to invest in presents itself. Current and, factual information in the newsletter will affect my future acquisitions. Thank you Victor.” Allan R. Converse Principal TeamConverse LLC

“Victor Allison is the personification of what a good broker ought to be. Knowledgeable in the market area, flexible, creative and tenacious. Whether it was finding tenants or marketing a shopping center Praedium was responsive and honest…” Jack Walker, President English & Continental Properties

“Victor Allison & Praedium Advisors' monthly newsletter is an invaluable source of news and intelligence on the Phoenix commercial real estate market. I highly value my subscription to Praedium Advisors' publications (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More) because they save me so much time and trouble: Praedium researches and publishes all the important news and the most important transactions in Phoenix commercial real estate. Many thanks to Victor Allison and Praedium Advisors for their extremely valuable and informative monthly newsletters (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More). These are the two most important sources of news and information that I read. These newsletters contain important details about the people and companies doing all the different deals in Phoenix. I can quickly know what is going on, where it is going on and who is doing it. This is the most up to date information on commercial deals deals going on all across the Phoenix market. It is useful for investors, developers, brokers and all the businesses related to same. Many thanks, Victor.” Ken Yamaguchi, Southwest Regional Director SCI Real Estate Investments, LLC

“We wholeheartedly endorse Victor as one of the most accomplished brokers we have worked with in our 30 years of collective experience. Victor is by far the most responsive broker we work with. He is always a step ahead in terms of gathering information to get a transaction done. Victor is thorough, prompt and reliable.” Francesca Godi and Marino Godi, Principals The Godi Group

“As usual it was a pleasure to get your market news—you know I'm not as active as I once was, and simply don't get out and keep my finger on the pulse of things. Getting your e-mails helps give me a "feel" of the market. Keep up the good work.” Charles “Chuck” Winslow, President Winslow Enterprises, Ltd.

“Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More help us to keep up to date with Phoenix's marketplace. With all the negative press today, it's helpful to see what's really going on from a real estate professional's prospective.” Jerry Turboff, President Prime Capital Corp.

“I have known, and worked with Victor Allison, for many years. In all of our real estate dealings he has handled them very professionally, and promptly, which makes him a pleasure to work with. A man of the highest of integrity. If Victor tells me something, I can "bank it". What more could a person ask for?” Charles E. “Chuck” Winslow Winslow Enterprises

“I look forward to reading Victor's monthly newsletters. The comprehensive summary of transactions and market news helps our group stay on top of current market conditions. They have been a valuable resource.” Mike Demko, Partner Demko Investment Group, LLC

“Your monthly newsletter is fantastic because it’s timely & comprehensive and in turn offers me an accurate snapshot of what’s happening in the market. I look forward to it every month!” Joe Holeva, Member MH Devco/Mohawk Ranch Ph 2/Avondale Business Park

“I love the insight that your newsletter provides our company. I look forward to the next edition.” Spike Lawrence, Partner Lawrence & Geyser Development

“I really look forward to receiving your newsletters every month. They're an invaluable service that keeps me on top of Phoenix's commercial real estate news and deals. Keep up the good work!” Randy McGrane, Managing Director Ensemble Investments, LLC

HOW TO ALWAYS GET THE HIGHEST PRICE FOR YOUR PROPERTY

Every property owner wants to get the highest price whenever they're selling or leasing their property. That's one of the main reasons why people own property in the first place...to maximize their returns and the money they make while owning the property. With this in mind it's interesting to observe some owners doing things that are in direct conflict with what will have them receive the most amount of money for their property. When selling or leasing your property, the way to maximize the amount of money you receive for it is to get the word out to the greatest number of people who would be interested in it. Yet there are property owners who prefer not tell many people about their property, and they end up just putting their own sign on it. Or even worse they won't even put a sign on it, and they won't advertise it anywhere either. This approach almost guarantees you receiving considerably less money for your property, as compared with if you instead did what would maximize its exposure to the kind of people who would be interested in it. The most–savvy investors want to buy properties that are not on the open market, because they know that's when they make their best investment purchases. They love being the only people negotiating with owners without any competitors even knowing that the property is available, because that's when they can buy property for the lowest prices. An owner simply can't receive the highest price for their property when there are many potentially interested parties who don't even know that their property is available. Think about it for a moment...If you had a used car that you wanted to sell which of the following two approaches do you think would bring you the highest price for it? 1) Placing flyers advertising the car in the mailboxes of the 10 closest houses to your own 2) Advertising the car in the used car section of the newspaper with the greatest circulation in your area Clearly the second choice is the one more likely to bring you the highest price for your car, because it has a much greater chance of reaching the people who are looking to buy a car like yours. The 10 neighbors living the closest to you may not be in the market for a car like yours, but one of them may be willing to "take it off your hands" for a price considerably less than your asking price. And in the process you might think this was the best price you could have obtained for the car. So similarly, if you don't list your property and put it on the open market when you're ready to sell or lease it, you're more likely to receive a lower price for it. There's a reason why the most successful companies and investors list their properties when making them available to the public. Because they know that the exposure their properties will receive will result in the highest price imaginable for them, and they won't be leaving any of their own money on the table at the same time.

VICTOR ALLISON’S NINE POINT, PROPERTY SPECIFIC MARKETING ACTION PLAN

It's important in marketing your property for you that we do everything that will ensure that you receive the highest price for it. That's why I've put together my Nine Point Marketing Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Not all properties can or should be marketed using the same marketing plan. Being a boutique marketing brokerage without layers of management, PRAEDIUM Advisors is able to adapt quickly and adopt effective, new marketing methods before they hit the mainstream brokerage houses. I do not take on more marketing assignments than I can effectively handle at one time ensuring my time is devoted to selling your property until the job is done. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining the highest possible sales price in the shortest possible time. 1 – PREPARE YOUR PROPERTY FOR SALE I work with you to understand your short–term and long–term real estate goals and how they will impact both the direct and network marketing tools available to us. My goal is to advise, educate, and guide you through the sales process.

• I discuss marketing and any sales confidentiality issues important to you so they can be integrated into the marketing plan.

• I identify property value enhancement opportunities that can be profitably implemented before the sale to maximize your sales price.

EXPERT VALUATION • I review current market, submarket, and financing conditions to establish a

competitive price for your property so it will sell quickly. 2 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, sales motivating, marketing materials are created to make your property stand out from competing properties and capture the attention of buyers.

• Marketing materials include high–quality digital photographs and/or video of your property.

• Two versions of marketing materials are created: a full–color Teaser Flyer for the initial contact with buyers that provides just enough information to motivate buyers to contact me for the full marketing package. The full–color Offering Memorandum contains sufficient information for a buyer to prepare a Letter of Intent. The Offering Memorandum is never push marketed ensuring I capture the contact information of interested buyers for personalized and direct follow–up conversations. A Confidentiality Agreement is used if appropriate.

• The flyer and full OM are produced in both print and .pdf formats to market your property by both direct mail and email and to adapt to buyer preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website and/or we can contract with a firm like Real Capital Markets.

3 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors and developers. The FileMaker software platform can sort the database into the sometimes exclusive investor/developer sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your property is targeted to the proper prospective investor and/or developer group. New investors/developers are added to the database each week and it is continuously updated for accuracy and relevancy. 4 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active marketing is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters and brochures used in this program dramatically enhances the effectiveness of my marketing plan. I do not sit back and wait for phone calls or emails to come in.

OutsideBrokerParticipation

I recognize the importance of working with other investment brokers on a nationwide basis. The number of prospects grows immeasurably with proper promotion to the brokerage community. I actively push your property from the outset of my marketing campaign to the investment brokerage community with full acknowledgement that they have access to buyers not in our database. Again, and unlike some of our largest competitors, I return my fellow broker's calls promptly and treat outside brokers with the utmost care and respect. I prefer split my commission if it means selling your property sooner! 5 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively market and sell your property is the Internet. Unless you have confidentiality issues I place your property on Loopnet (Premium Access Member), CoStar, and possibly Real Capital Markets and other web–based marketing venues. I also create a new web page on PRAEDIUM Advisors’ website devoted to marketing your property. This ensures your property is exposed to thousands of investors, real estate professionals and agents around the world. Additionally, I am a subscriber to several proprietary email Listservers distributing push email marketing messages to thousands of targeted subscribers. PRINT MEDIA Depending on the specific characteristics of your property I may market it in selected local and/or national print media.

SIGNAGE If appropriate I will place the largest viable clean, bright, professional For Sale sign on your property positioning it for maximum visibility and impact. 6 – INQUIRIES & SHOWINGS

• I respond to all leads and inquiries within minutes, not days. • I personally represent you at all showings and employ our seasoned salesmanship to

facilitate the optimum opportunity for a sale. • I assist buyers with financing options if needed. • I review terms of all LOIs with you and, as an experienced negotiator, I draft an

appropriate counter–offer. • I avoid dual agency representation issues in the event that a buyer does not have

their own broker representation ensuring I always negotiate in your best interest. 7 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 8 – CONTRACT & ESCROW I coordinate with the buyer and seller, their respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next marketing assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

VICTOR ALLISON’S NINE POINT, CLIENT SPECIFIC PROPERTY ACQUISITION PLAN

It's important when searching for a property for you that I do everything that will ensure that you see several properties that match your acquisition criteria. That's why I've put together my Nine Point Acquisition Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Being a boutique acquisition brokerage without layers of management, PRAEDIUM Advisors is able to adapt and react quickly assuring you are seeing multiple opportunities that match your acquisition criteria. I do not take on more acquisition assignments than I can effectively handle at one time ensuring my time is devoted to finding a property meeting your investment objectives. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining a property meeting your investment objectives. 1 – DEVELOPING AND UNDERSTANDING YOUR ACQUISITION CRITERIA I listen to you to understand your short–term and long–term real estate investment objectives and develop a specific, written Acquisition Plan with you that delineates your acquisition criteria and objectives. My goals are to find properties matching your acquisition criteria, and to advise, educate, and guide you through the acquisition process.

• I discuss any confidentiality issues important to you so they can be integrated into your acquisition plan.

• I review current market and (if appropriate) submarket conditions to assure your

expectations are realistic. 2 – BUYER REPRESENTATION AGREEMENT There are several advantages of entering into an exclusive buyer representation agreement with an experienced acquisition broker:

We enter into a written agreement wherein I am obligated to use my best efforts to locate properties that best meet your objectives with the goal of purchasing a property that closely matches your acquisition criteria. My responsibilities include:

• Notifying owners/developers/agents with properties that may match your acquisition

criteria of your acquisition criteria.

• Winnowing through they myriad of properties submitted by owners/developers/ agents and presenting only those properties that match your acquisition criteria.

• Analyzing and submitting the prospective properties in a standardized format thereby eliminating the disparity in the presentation methods of the owners/developers/agents.

• I (or your attorney) craft a Letter of Intent to acquire the target property.

• I negotiate aggressively in your best interest based on my knowledge of current

market conditions.

• I assist in locating and securing the best available financing (if necessary).

• I keep you informed of feedback from the marketplace and solicit feedback from you concerning my performance.

• You deal only with one broker thereby eliminating unsolicited inquiries from other

agents and the necessity to re–educate each new agent with your acquisition criteria.

• I endeavor compensated by the property owner or listing agent.

• Response from owners and listing agents is more positive and timely when they realize that you are a serious buyer since you have engaged a broker to identify and qualify properties for you.

• If either of us is unhappy with the other’s performance, our relationship can be

terminated upon 30 day’s notice. 3 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, motivating, marketing materials are created to make you stand out from competing buyers and capture the attention of owners/developers/agents.

• The marketing materials are produced in both print and .pdf formats to solicit properties by both direct mail and email and to adapt to seller preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website promoting your acquisition criteria.

4 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors, developers, and real estate agents. The FileMaker software platform can sort the database into the sometimes exclusive owner/developer/agent sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your acquisition criteria is targeted to those owners/developers/agents who will have properties matching your acquisition criteria. New owners/developers/agents are added to my database each week and it is continuously updated for accuracy and relevancy.

5 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active solicitation is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters, emails and brochures used in this program dramatically enhances the chances of finding a property matching your acquisition criteria. 6 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively solicit for properties is the Internet. In addition to my proprietary database I subscribe to several online, targeted email Listservers that push market to their membership (sometimes numbered in the thousands). This ensures your acquisition criteria is exposed to thousands of owners, developers, real estate professionals and agents around the world. 7 – CONTRACT NEGOTIATIONS & ESCROW

• I review terms of all LOIs with you and, as an experienced negotiator, I draft an appropriate counter–offer.

• I avoid dual agency representation issues in the event that a seller does not have their own broker representation ensuring I always negotiate in your best interest.

• I coordinate with you and seller, their agent, your respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale.

8 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next acquisition assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

“Do You Own Commercial Real Estate with a Value of $5 Million or More?”

Would You Like to Increase Your Cash Flow Without Raising Rents and

Without Lowering Expenses?

Of course you would so continue reading to find out about A Lucrative Tax Strategy that should be used on Almost Every Major Purchase of Commercial Real Estate according to the U.S. Treasury Dept. CHANCES ARE YOU ARE PAYING TOO MUCH IN TAXES … AND YOU ARE NOT ALONE! Thousands of commercial property owners overpay their federal income taxes every year. But, don’t blame your CPA! In order to realize the maximum benefits available under current law, the IRS requires a specialized engineering based cost analysis study. Your CPA is unlikely to be one of the 75± engineers in the US specialized in the area known as COST SEGREGATION ANALYSIS. See the IRS website http://www.irs.gov/businesses/article/0,,id=134180,00.html. The CPA and Legal Network has performed COST SEGREGATION ANALYSES over the past 22 years. Our team of CPAs, Lawyers, Cost Engineers and Valuation Experts can help you evaluate if this strategy makes sense for your company or property. The CPA and Legal Network’s detailed, No Cost, No Obligation evaluation is available for properties in all 50 states!

A few of the many types of properties benefiting from COST SEGREGATION ANALYSIS are:

• Manufacturing • Retail • Wholesale & Distribution • Restaurants • Hotels

• Resorts • Office Buildings • Medical Complexes • Food Processing • And more

The many immediate, tangible benefits of COST SEGREGATION ANALYSIS include:

• REDUCED UPFRONT INCOME TAXES • ABILITY TO ACQUIRE LOANS MORE EASILY • LOWER PROPERTY TAXES IN SOME STATES

• INCREASED CASH FLOW • LOWER INSURANCE PREMIUMS • EASIER TO FACILITATE 1031 EXCHANGES • MAXIMIZED ANNUAL TAX DEPRECIATION

• RELEASES YOUR TRAPPED DEPRECIATION AND TURNS IT INTO CASH NOW! Call Victor Allison today at 602.320.6200 to tap into the Hidden Reservoir of Cash in your Commercial Property! If you own any type of depreciable Commercial Property with a value of $5 million or more, you may be entitled to these types of benefits. Examples: (i) A Medical Office with a $5,000,000 Basis could realize $1,168,401 in accelerated depreciation saving $467,360 in taxes over six years, and (ii) The CPA and Legal Network recently helped a client realize $1,340,000 of tax benefits on their properties.

3 Point 100% Guarantee:

1. You pay nothing until you see what tax saving benefits you are likely to realize using cost segregation.

2. Your cost segregation study will be done in accordance with the IRS ATG, Audit Techniques Guide.

3. The CPA and Legal Network will back you and your CPA in the event of an audit and fully explain the cost segregation procedure used on your property to the IRS.

Clients Served Include: Cinergy Corp Starbucks Coffee Co. Dayton Power & Light Wells Fargo Chevron

Pacific Gas & Electric Hyatt Hotels Duquesne Energy Bank One Kroger

Harris Ranch General Growth Propeties First Energy Northern Trust Bank Texas-New Mexico Power

Call Victor Allison now at 602.320.6200 for a NO COST, NO OBLIGATION evaluation of your property. This limited time offer is available for properties in all 50 states. It’s your money. What would you rather do: send it to the US Treasury, or use it to grow your business?

Phoenix Commercial Real

Estate Deals & More

March 2010 Edition

Victor Allison

Your Phoenix Commercial Real Estate Brokerage

Specialist

602.320.6200

Selected, recent newswire articles for the metro Phoenix area dedicated to ensuring you are always on top of all the latest news and trends that may

affect your property values and that will assist you in your real estate decision–making processes.

www.praedium-advisors.com

Victor’s Insider Scoop on Part of My Previous Life Working in the High Arctic (Part 2) … This is the second installment of an article and photos that were first published in the Summer 1981 Issue of North/Nord magazine under the title Another Day on the Arctic Seismic Line. As Jan and I constantly work the length of the chain apart there is little opportunity for casual conversation. It is not unusual for several taciturn miles to pass by with only our thoughts or the passing scenery to entertain us. Walking slowly across the arctic sea forces you to become familiar with the many nuances of the passing terrain. Although my initial impression of the frozen seascape was that it is merely an endless white plain, the ice varies considerably from patch to patch in form, color, and texture. It goes from abstractly shaped sections of green glare ice, through rolling mogul–like blue tinted mounds and wind–sculptured ice blocks, to the jumbled white masses of pressure ice. Subtleties of sunlight play on the sastrugi patterns as we pass by. These wavelike erosion forms created in the hard snow by unimpeded prevailing winds are blends of sparkling white crystals and the blue shadows cast into their depressions by the low arctic sun. Occasionally, in the distance, it was possible to discern the hazy outline of one of the islands of the archipelago with its barren promontories rising sharply above the seemingly flat

sea. The sky consistently occupies an unnaturally large part of my field of vision. On a sunny day, the subtle gradations of blue vary from the pale hues of the horizon to a rich azure zenith. If the wind is not blowing too fiercely, the pure, cold air is a delight to inhale and savor. Perhaps the most amazing characteristic of this frozen maritime desert is found on a calm day when, if one stands still for a moment, there is a total absence of sound—something I had never before experienced even on trips into remote mountain areas.

We chained 11 km, taking the better part of the morning to do it, when the frozen sea in front of us was broken by a white spine of ice that stretches away in random arcs to either side of horizon—a pressure ridge. Bill is waiting in the survey vehicle for us just before the pressure ridge. An aquamarine streak running along the base of the 6 m high mass of broken pressure ice indicates the presence of open sea water. We will have to find a way around this water gap before we can attempt to cross the pressure ridge. Our search for a path through the ridge proves to be a short one this time as we find a break in the ice wall less than a kilometer off the seismic line. We disembark from the vehicle to make a walkthrough inspection of the proposed path. Drifted snow has filled the pockets around the ice blocks making a relatively flat crossing. While Bill and I remain on the north side of the ridge, Jan walks back to the vehicle on the other side of the ridge and after a quick, uneventful crossing with the vehicle the three of us are on our way back to the line.

While Bill struggles to set up his transit atop the pressure ridge in order to restart the line, Jan and I scramble back across the ridge to retrieve the chain and measure it. The jagged pressure ice with its pell–mell ice blocks and small crevasses reminds both of us of some of our previous adventures on glaciers when we were separated by a kernmantle rope rather than the surveyor's chain. Half an hour later the heading of the seismic line has been re–established and the remaining ten

kilometers are chained without incident. This was the final line of the Kristoffer Bay prospect. In the last part of the afternoon Jan and I set off to drive some 40 km across the ice to Malloch Dome where the trig–stations necessary to kick off the next prospect are located. Before Bill radios for the helicopter to fly him back to camp he establishes the direction to one of the trig stations by setting two large snow–filled garbage bags in a line several hundred meters apart. We borrow from Bill's line–producing technique to keep our heading straight using binoculars and garbage bags in lieu of transit and lath. Although we started our journey under a brilliantly shining sun and cyan sky the ensuing few hours found the high pressure weather system of the past week being encroached upon by a warm front. In the high arctic warm is a relative term. The low angle arctic sun is slowly being hidden by ever–descending layers of clouds as we drive on. The bizarre, yet eerily translucent lighting of the partial whiteout that now surrounds us is a continuous source of fascination. Features fade, strengthen and then fade again on the horizon. By this time our thoughts had turned away from the pleasant drive to contemplating the decreasing odds of a helicopter pick–up that day. The absence of contrast and the lack of definition between sky and ground during a whiteout makes flying a dangerous proposition. With the loss of visual cues the pilot's ability to judge his position relative to the ground becomes dangerously hampered. Although we were equipped with sufficient survival gear and food to last us several days we do not look forward to the prospect of spending the night in a tent on the ice.

Whiteout or not, we were there to do a job so we continued towards Malloch Dome with the hope that the weather would not deteriorate any further. The whiteout conditions now greatly reduced our rate of progress as the severely limited visibility meant we had to place the garbage bag directional markers at ever–closer intervals. Soon it became next to impossible to keep the vehicle on a straight course. As we could not make out any distinguishing features ahead we were forced to steer a straight path

by constantly checking the alignment of the garbage bags through the rear window. The monotone grey blending of the ice and sky strained our minds as much as our eyes. Once, while we stopped so I could set up a new marker, I noticed two large, nebulous shapes on what seemed to be the horizon. I brought this to Jan's attention and as we gazed at the objects they both appeared to move in a definite left–to–right direction. I reached for the binoculars to take a closer look at what I guessed to be a mother polar bear and cub. After looking I quickly passed the binoculars to Jan. He peered through them for a moment and then turned to me and shook his head bemusedly. In the sensory confusion of the near–whiteout what we had believed to be objects moving across the horizon were in reality two blocks of ice! Our trepidation was reinforced several times as we continue across the ice to Malloch Dome: the mirage of a landmass kept appearing ahead although Malloch Dome was still miles away and completely obscured by the whiteout. When we finally reached the shores of Malloch Dome, our sense of relief was overshadowed by a feeling of emptiness brought on by the barren, brown shale slopes rising into the mist in front of us. Although the island is named for its characteristic shape that rises 120 m above the sea, its impressive stature was hidden by the whiteout. A few lichens and spindly, dwarfed pieces of vegetation dolled the shale slopes. Here and there remnants of snow had drifted into depressions. Not really knowing where we were on the island we chose to remain close to the shoreline rather than search for the trig–station and, to increase our chances of being located by the helicopter, we stayed on a path which extended forward from our garbage bag line. Neither of us had resigned ourselves to setting up the tent and crawling into the double weight sleeping bags when the familiar and ever–so–welcome sound of an approaching helicopter broke the stillness. Sprinting from the cab of the survey vehicle Jan and I quickly moved to set up a triangle with the vehicle as one apex and he and I as the other two so that the pilot would have some reference points from which he could establish a landing surface. Within moments Jan and I are buckled into our seats inside the helicopter. Thoughts of a long overdue hot meal engulfed my tired brain as we bee–line our way back to the camp. To a first–time arctic visitor six rust–colored, pre–fab huts parked on the frozen sea probably look extremely bleak and primitive, but to the eyes of a member of an arctic seismic crew who had just put in 14 long, cold hours

on the line the camp is indeed a welcome sight. They meant food, warmth and relative comfort and at that moment there was nothing in the world that I desired more. I don't think a dinner was ever as appreciated by so weary a crew as ours that evening. The few hours following the meal were spent reading or in quiet conversation. Finally, the need for sleep overwhelmed the sheer good feeling of being back in camp that evening. I clambered up onto my bunk and promptly fell into a sound sleep. It seemed only a few minutes passed before I was cursing the rude suddenness of the next morning's wake–up call. Another day on an arctic seismic line had begun. Dedicated To Multiplying Your Income

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Fry's Center Shops Trades for $2.9M Phoenix Retail Center Changes Ownership By Kenneth Arnold March 31, 2010 Fry's Center Shops at 4212 W. Cactus Road in Phoenix sold for $2.9 million, or $170 per square foot, in a sale between private investors. The 17,055-square-foot retail center was constructed in 1990. It was 81 percent occupied at the time of sale and sold with a capitalization rate of 7.02 percent. Steve Julius and Jesse Goldsmith of Marcus and Millichap represented the seller. David Tran of Transmercial represented the buyer. Please see CoStar COMPS #1885436 for more information.

Metro Surgery Center Sells for $2.8M in Phoenix Private Investors Purchase 12,300-SF Office Building By Kenneth Arnold March 31, 2010 The Metro Surgery Center at 3131 W. Peoria Ave. in Phoenix sold for $2.8 million, or about $207 per square-foot, in a sale between private investors. The 12,280-square-foot building was constructed in 1979 in the Northwest Phoenix submarket. It was fully occupied at the time of sale and was purchased as a triple-net investment property. The tenant, Metro Surgery Center, originally took occupancy July 2007 and signed a ten-year lease agreement, set to expire July 2016. Greg Guglielmino of Marcus & Millichap handled the deal for the sellers, while Ben Prater, Heath Charamuga and Erik Neese of Colliers International represented the buyers. Please see CoStar COMPS #1852948 for more information on this transaction.

Slosburg Co. Purchases Elliot’s Crossing for $11.8M Sentinel Realty Advisors Corp. Sells Tempe Apartment Complex By Dale Zavodsky March 31, 2010 Sentinel Realty Advisors Corp. sold the 247-unit Elliot’s Crossing Apartments at 7250 S. Kyrene Road in Tempe, AZ, to Slosburg Co. for $11.52 million, or approximately $48,000 per unit. The 182,166-square-foot apartment community consists of one, two and three bedroom units. It was built in 1987 in the South Tempe submarket and was 88 percent occupied at the time of sale. Brad Goff and Dave Lord of Apartment Realty Advisors represented the seller. The buyer was self-represented. Please see CoStar COMPS # 1891207 for more information on this transaction.

Highland Park Sells for $1.6M Private Investors Acquire Phoenix Apt. Complex for $23K Per Unit By Kenneth Arnold March 31, 2010 The 70-unit Highland Park apartment complex at 7232 N. 27th Ave. in Phoenix sold for $1.6 million, or $23,214 per unit, in a sale between private investors. The pro forma cap rate was reported to be 8.65 percent. Constructed in 1974, the 52,350-square-foot complex rests on 4.4 acres, featuring a picnic area as well as a pool. It consists of 36 one-bed/one-bath units and 34 two-bed/one-bath units. The property last sold in December 2007 for $3.5 million (see CoStar COMPS # 1453011 for more information on this transaction). Ryan Ash, Brian Smuckler and Jeff Seaman of Marcus & Millichap represented the seller, while David Cravath of the Phoenix Group Apartment Advisors represented the buyer. Please reference CoStar COMPS #1865780 for more information.

Regent Properties Purchases Glendale Corporate Center Two Banks Sell Office Park for $9.2M By Kenneth Arnold March 31, 2010 Regent Properties, a Los Angeles-based property management firm, acquired the three-building Glendale Corporate Center in Glendale, AZ, from a partnership of Bank of the West and California Bank & Trust, for $9.2 million, or $63 per square-foot. This was an REO sale. The three office buildings, located at 5323 N. 99th Ave., 5281 N. 99th Ave. and 5365 N. 99th Ave., delivered in 2008. The center totals 146,063 square feet and was 97 percent vacant at time of sale. Also included in the purchase was a 7-acre parcel of excess land at 5445 N. 99th Ave. Jim Bayless, Ashley Brooks, Barry Gabel, Mindy Korth and Kelley Morrison represented the seller. Please see CoStar COMPS #1887552 for more information on this transaction.

Big lease signed at Chandler Airport Center TRIBUNE STAFF REPORTS March 31, 2010 CB Richard Ellis, a commercial real estate services firm, announced it negotiated the lease of a building in the Panattoni Chandler Airport Center to Education Management LLC, a provider of post-secondary education whose portfolio includes the Art Institutes and Argosy University.

The company will lease nearly 47,000 square feet of space in the building at the northeast corner of Cooper and Germann roads in the Chandler Airport Center. CB Richard Ellis said the transaction is the largest lease signed in the south East Valley this year. The company represented the landlord, California-based Panattoni Development Co.

Pacific Realty Advisors Purchases Bayside Apts. 176-Unit Apartment Complex Changes Hands for $9.4M By Kenneth Arnold March 31, 2010 River Oaks Apartments Limited Partnership sold the Bayside Apartments in Phoenix, AZ, to Pacific Realty Advisors Inc. for $9.4 million, or $53,500 per unit. The 146,014-square-foot multifamily complex consists of 176 one, two and three bedroom units in twenty-four buildings. It was built in 1999 near I-17 in Phoenix. Todd Thorpe provided in-house representation for the buyer. Please see CoStar COMPS #1882703 for more information on this transaction.

Staples leases bigger distribution site in Tolleson by Jan Buchholz March 26, 2010 Office supply giant Staples Inc. has signed a 10-year lease for 300,000 square feet in Tolleson to expand its distribution and sales operations.

Industry observers estimate the deal is valued at about $10 million, but Staples officials would not comment.

Tolleson Economic Development Director Paul Magallanez said Staples informed his office that the June relocation from the company’s smaller Phoenix facility will mean 60 additional distribution jobs, including seven management positions at an average annual salary of $60,000.

Magallanez said Staples plans between $6.5 million and $7.5 million in capital investment at the site. He was unsure whether that includes new equipment, renovations or both.

Staples has 20 retail stores in the Valley, according to the company’s Web site, and a large national mail-order business. The company would not comment on whether the facility will be used for local, regional or national distribution.

Tolleson Mayor Adolfo Gamez said he’s delighted with Staples’ decision to expand in his city.

“We feel very fortunate to have been the community selected by Staples for the location of their new fulfullment center,” he said. “Staples is a quality employer and will be a valued addition to our business community.”

Industrial broker Tony Lydon, senior vice president of Cassidy Turley, said the expansion will allow Staples to integrate its operations with Corporate Express, the Dutch office product supplier Staples purchased in 2008.

On March 17, a deal was struck for Staples to pay $350 million for the remaining shares of Corporate Express Australia.

Staples and Corporate Express have a combined distribution presence in the Valley of 120,000 square feet. After the move, that footprint will more than double.

Tolleson is growing as a distribution hub for the Valley and the region.

In September 2009, Home Depot announced it had agreed to move into a distribution center under construction at the northeast corner of Harrison Street and 91st Avenue in Tolleson. The 20-year lease was announced by the project developers, Atlanta-based Seefried Properties and San Antonio-based USAA Real Estate Co. Home Depot officials said the new Rapid Deployment Center will create up to 350 jobs when it opens this summer.

Magallanez said the project is on track and Home Depot is working with the Maricopa County Workforce Connection to hire for those positions.

Staples’ new facility will be in the Westside Business Park, 8602 W. Buckeye Road. Among the other tenants, according to Lydon, are Hager Locks, Structural Glazing, PJ Food Service and ElectroWire.

The industrial office park was built by McShane Corp., which sold it to LBA Realty of Irvine, Calif., in January 2008. The Phoenix Business Journal reported in November 2008 that it was the largest industrial transaction of that year. LBA paid McShane $73 million for the four-building office park. Staples will occupy the

majority of space in the largest structure, which totals 535,000 square feet.

Lee & Associates brokers Allen Lowe and Matt Hobaica represented LBA in the Staples deal. Dan Calihan and Rusty Kennedy of CB Richard Ellis represented Staples.

“We’re really excited about this deal,” said Calihan, adding that the industrial market is improving in small increments. “We are starting to see more inquiries.”

Get Connected

Staples: www.staples.com

City of Tolleson: www.tollesonaz.org

LBA Realty: www.lbarealty.com

Portion of Glendale Corporate Center sold for $9.2M by Jan Buchholz March 22, 2010, 10:23pm

A large portion of the Glendale Corporate Center has been sold to a Los Angeles real estate investment firm. Regent Properties paid $9.2 million for three vacant buildings, totalling 146,100 square feet, and seven acres of land near the intersection of Loop 101 and Camelback Road.

Brokers from CB Richard Ellis of Phoenix represented the seller, Glendale Corporate Center Acquisition LLC, an entity formed by the lenders on the project. Those lenders, California Bank & Trust and Bank of the West, had provided land acquisition and construction lending to the developer, Opus West Corp.

Opus West is in Chapter 11 bankruptcy reorganization and no longer is operating in the southwest. Its properties are being disposed of through the court process.

The office park also includes two other buildings which were purchased by Western Maricopa Education Center in November for $5.1 million.

The Regent transaction, one of the few involving office properties in the current foul economic climate, was a welcome event after more than a year of marketing, according to CBRE Executive Vice President Barry Gabel.

“We cold-called Regent,” Gabel said. “This company has been involved in numerous transactions across the country.”

In recent years, Regent has bought $150 million in various properties across the

Southwest. This is Regent’s first office purchase in the Valley, having previously purchased 620 partially developed lots in Surprise, Gabel said.

“They closed early and paid cash,” he added.

Opus West at one time had been a leading commercial developer in Phoenix, but the company fell on hard times during the past couple of years with the economy tanking and the credit market drying up.

Gabel said the Regent acquisition is a prime site for a corporate user because of its proximity to the freeway, two power centers near Loop 101 and Interstate 10, and Westgate, which includes the University of Phoenix stadium and Jobing.com arena.

CB Richard Ellis also has the leasing assignment.

Chateau on Central sale closes by Jan Buchholz March 23, 2010

The sale of Chateaux on Central to a Wisconsin food company is a done deal. The sale of the troubled, unfinished luxury brownstone project closed March 12.

The purchase price was $7 million, according to seller ML Partners LLC, the legal entity administering loans for construction lender Mortgages Ltd.

The buyer, MSI West Investments LLC, distributed a news release Tuesday saying plans for new pricing will be disclosed in the next few weeks. It would appear that the new owners plan to keep the ostentatious five-story Victorian brownstone largely in its original configuration of 21 housing units. The investors also disclosed that they will integrate green elements into the finished project.

Bill Schmitz, president of MSI, said completion of the project is “an opportunity to be a leader in the city of Phoenix’s emerging position in green and sustainable building and construction.”

Marketing and sales will be handled by AZ Great Estates, a division of Arizona Realty One Group.

Chateaux on Central has had its share of doubters. Though construction began on the project at the northwest corner of Central Avenue and Palm Lane in 2005, problems occurred quickly with the original lender pulling out. Eventually Mortgages Ltd. took over the financing, but it, too, had to take back the project

when the developer could not finish it. By then the real estate market was crashing. Shortly after Mortgages Ltd. repossessed the Chateaux that company filed for Chapter 11 bankruptcy in the aftermath of Scott Coles’ suicide. Coles was the sole shareholder of Mortgages Ltd.

After a year in bankruptcy court, a judge approved a reorganization plan to allow ML Partners LLC to administer and collect on some 60-plus outstanding loans with face valuations exceeding $900 million. The Chateaux project is one of the first to be sold. As proceeds are collected, investors will receive some returns but they likely will be pennies on the dollar.

MSI West Investments is a subsidiary of Mainstreet Ingredients, based in La Crosse, Wisc. The company provides food products and technical expertise to the food industry.

Hotel Highland sells for $14.8M by Jan Buchholz March 23, 2010

Hotel Highland, a popular business hotel near 24th Street and Camelback Road, sold for nearly $14.8 million Stoneridge Capital Partners of Newport Beach, Calif. Previous owner of the 119-room hotel, Highland Hotel Associates LLC of Los Angeles, defaulted on a $15 million loan and a trustee sale was scheduled for March 16. The lender on that promissory note was N-Star REL CDO VIII Grantor Trust Series A. Wells Fargo Bank NA was the trustee on behalf of the beneficiary.

A spokesperson for Stoneridge said the closing was March 17. Neither she nor brokers involved in the sale would disclose the purchase price.

That information as detailed in a Trustee’s Deed Upon Sale was provided to the Phoenix Business Journal by Ion Data, a real estate research firm based in Mesa.

According to a wire service news release distributed March 19 by HREC Investment Advisors Phoenix office, the hotel received a complete renovation in 2009 and is one of the few hotels that is not a resort property in the Biltmore area.

HREC Senior Vice President Bill Murney in Phoenix and CB Richard Ellis Senior Vice President Stan Koslowski in the Salt Lake City office handled the transaction.

apartment market - hit hard by intense competition from single-family rental homes - will bounce back this year.

"I think it becomes a guessing game as to when the market will improve," he said.

Trillium sells Peoria complex for $27.5 million by J. Craig Anderson Mar. 23, 2010 A Washington-state investment firm said it has closed on one of the biggest residential real-estate deals so far this year, buying a 340-unit, Trillium-branded apartment complex in Peoria for $27.5 million.

Mark Forrester of Phoenix commercial real-estate firm Hendricks & Partners, the sole broker involved, said buyer Weidner Investment Services Inc. of Kirkland, Wash., purchased Trillium Villas Apartments, 10847 W. Olive Ave., for an average price of about $80,000 per unit.

"I think they see a good future in the property and in this market," he said.

Forrester said Tempe-based Trillium Residential sold the 2-year-old Trillium Villas via a short sale, a type of sale used only when the property owner is in danger of foreclosure. A short sale requires the property owner's lender to agree to take a loss on the loan principal.

That's not to say the project was sold for a song, said Phoenix-area housing analyst Bob Kammrath, who specializes in apartment communities.

The purchase price is high by current market standards, said Kammrath, owner of Phoenix-based Kammrath & Associates.

Whereas Valley apartment properties in 2007 were selling for an average resale price of $84,000 per unit, he said, by 2009, the average price had dropped to about $52,000.

Kammrath said despite the high sale price, there are no signs that the Valley

apartment market - hit hard by intense competition from single-family rental homes - will bounce back this year.

"I think it becomes a guessing game as to when the market will improve," he said.

Ensemble, Universal joint venture buys North Valley Medical Plaza March 18, 2010 Ensemble Healthcare Properties and Universal Health Realty Income Trust have purchased the 81,000-square-foot North Valley Medical Plaza located on the campus of Paradise Valley Hospital, where the joint venture partners plan to invest $500,000 for improvements.

The partners paid $5.5 million for the three-story building, which was built in 1992 as the first medical office building on the hospital campus. The buyers are also considering making the property a showcase for a solar conversion.

“The building has suffered from some neglect, so we will begin immediately on a series of improvements,” said Judy Klein, associate partner and asset manager for Ensemble’s Arizona portfolio. “North Valley’s bones are excellent.”

Ensemble DevMan of Arizona will manage and lease the property, which currently has some space available.

“We are very confident that the building’s occupancy will grow and stabilize under our watch and as the overall market conditions improve,” said Randy McGrane, Ensemble managing director.

Ensemble owns and operates a portfolio of medical office buildings totaling nearly 3 million square feet in five states, including Desert Valley Medical Plaza, which is across the street from Paradise Valley Hospital.

Apartments sell in quick cash deals March 18, 2010 The $260,000 sale of the 24-unit Landing Pointe Apartments may sound like a screaming deal, but brokers on the transaction say there are good reasons for its place on the lower end of the scale.

The lender-owned complex at 2417 W. Campbell Ave. in Phoenix was completely vacant and in need of renovations to the tune of about $3,400 to $4,000 per unit, according to Trevor Koskovich, Jeff Sherman and Bill Hahn of Colliers International.

Creative Commercial Investments LLC of Solana Beach, Calif., purchased the property from D. Brown, L. Brown and R. Randazzo of Pomona, Calif. Built in 1983 the property comprises 15,600 square feet and includes a little over a half acre.

At $10,833 per unit, however, the sale still was a bit more pricey than another recent sale brokered by the team. Due South Apartments was acquired by a private investor group in Phoenix from Land Holding LLC, a company owned by Capstone Realty Inc. of Pittsburgh, for $1.1 million, or $8,594 per unit. Both were described as “quick-close cash deals.”

There’s really no average price per unit for apartment sales, but $8,594 is about the bottom rung, the brokers said. The price can run up to $1 million per unit.

Pushing down Due South’s price was its location in a rough neighborhood in Phoenix and the fact that it was only at about 50 percent occupancy, they said. Due

South, built in 1986, consists of 128 units, studios, one- and two-bedroom apartments. The 58,944-square-foot complex sits on 3.91 acres.

SLOSBURG CO. BUYS FIRST APARTMENT PROPERTY IN PHOENIX AREA . . . WANTS MORE March 19, 2010 Tempe – A company formed by Slosburg Co. of Omaha, Neb. (Jacob Slosburg, et al., principals) paid $11.85 million ($47,976 per unit) to purchase the 247-unit Elliot's Crossing apartments at 7250 S. Kyrene Road in Tempe. The seller was limited partnership managed by Sentinel Real Estate Corp. in New York City, N.Y. The deal was negotiated through Brad Goff and Dave Lord of Apartment Realty Advisors in Phoenix. The privately-held Slosburg Co. acquired the property with internal financing from an affiliated company. Elliot’s Crossing was built in 1987. The investment is the first in the Valley for Slosburg Co. Sources say the company is interested in buying additional multi-family projects in the Phoenix area. Slosburg Co. also is interested in office, retail and industrial properties. “We see the market there as soft,” says Betty Price of Slosburg Co. “We will look at each deal individually. We want projects that are priced right.” Slosburg Co. owns apartment, retail, office, industrial and land parcels in eight states. In February 2004, BREW reported a partnership formed by America First Cos. in New York City, N.Y. paying $12.85 million ($52,024 per unit) to buy Elliot's Crossing. America First sold Elliot’s Crossing and another Valley apartment project to Sentinel in 2007 as part of a larger portfolio deal. Sentinel continues to own other apartment communities in the Phoenix area. The company is not believed to be shopping any other assets in the Valley. Jacob Slosburg is in the company’s Houston, Tex. office . . . talk to him at (713) 783-9884. Bob Kass is the contact at Sentinel . . . (212) 408-2900. Reach Goff and Lord at (602) 252-4232.

WASHINGTON-BASED INVESTOR ENTERS VALLEY APARTMENT MARKET . . . SPENDS $27.5 MILLION March 19, 2010 Peoria – A company formed by Weidner Apartment Homes in Kirkland, Wash. (Dean Weidner, principal) paid $27.5 million ($80,882 per unit) to acquire the 340-unit Trillium Villas apartments located at 10847 W. Olive Avenue in Peoria. The seller was a company formed by Trillium Residential in Tempe (Ken Losch, David Dewar, Jamie Dawson, principals). The cash transaction was brokered through Mark Forrester and Ric Holway of Hendricks & Partners in Phoenix. The property was sold through a short sale. Key Bank was the beneficiary after loaning Trillium Residential the money to build the project. The complex opened in 2008. The investment is the first in the Valley for the privately-held Weidner Apartment Homes. Weidner paid cash for Trillium Villas, but the company is expected to finance the acquisition through FANNIE MAE or FREDDIE MAC. Weidner will manage the property. Kevin Colard, senior acquisitions manager at Weidner Apartment Homes, says the company is looking for more multi-family projects in the Phoenix and Tucson markets. Colard says the company is under contract to buy 504 units in Tucson in separate sales set to close in the next 30 days. No further details on those transactions. In the next two years, Weidner Apartment Homes expects to own 3,000 multi-family units in the Valley and 1,500 units in the Tucson area. Initially, Colard says the company is looking to purchase A quality product, but the portfolio will eventually include B and C grade communities. Weidner manages all of its apartment projects. The company owns 23,000+ units in Washington, Alaska, Colorado, Texas, Arizona and western Canada. Get more from Colard at (425) 821-3844. Talk to the Trillium Residential principals at (480) 294-6300. Forrester and Holway are at (602) 955-1122.

STAPLES EXPANDING ON WEST SIDE. . . TO OCCUPY 300,000 SQ. FT. IN TOLLESON WAREHOUSE March 12, 2010 Tolleson – Staples Inc. in Framingham, Mass. (NASDAQ:SPLS) has signed a lease agreement to occupy roughly 300,000 sq. ft. of a vacant warehouse-distribution building located at 8602 W. Buckeye Road in Tolleson. The 535,213-square-foot structure is owned by a fund managed by LBA Realty in Irvine, Calif. (Steven Layton, et al., principals). The 10-year lease deal is believed to be valued at roughly $10 million. Allen Lowe and Matt Hobaica of Lee & Associates Arizona Inc. in Phoenix represented LBA Realty in the negotiations. Staples was represented by David Ginther of Fischer & Co. in Dallas, Tex., along with Pat Feeney, Joe Porter, Dan Calihan and Rusty Kennedy of CB Richard Ellis in Phoenix. Staples, the world’s largest office products company, is expected to occupy the Tolleson building this summer. The company is expanding and relocating from a small distribution facility it now operates from on 27th and Georgia avenues in Phoenix. Sources say that property is under contract to be sold. Staples has grown significantly since 2008 when it acquired Corporate Express, a Netherlands-based office supply company with a large presence in Europe. A leased warehouse Corporate Express has at 75th Avenue and just south of Interstate 10 will also be consolidated into the new facility. In February 2008, BREW reported the LBA Realty fund buying the building Staples will occupy as part of a $73 million deal that included 1.1+ million sq. ft. of industrial space in Tolleson. The four-building project, called Westside Business Park, is 62 percent leased. The warehouse-distribution development is comprised of a 164,210-square-foot structure at 8590 W. Buckeye Road, a 203,372-square-foot building at 901 S. 86th Avenue, a 203,372-square-foot structure at 859

S. 86th Avenue and the building Staples is occupying. The rest of that structure is available, as well as portions of two other buildings at Westside Business Park. Lowe and Hobaica have the leasing assignment. In May 2006, LBA Realty acquired Bedford Property Investors Inc. of Lafayette, Calif. (NYSE:BED). That $432 million deal included about 6.5 million sq. ft. of office and industrial buildings in 72 properties located in California, Arizona, Colorado, Oregon and Washington State. The contact at Staples is Tom Colarusso . . . (508) 253-5000. Reach Bob Hubbard of LBA Realty at (480) 921-3202. Talk to Ginther at (972) 980-7100. The CBRE agents are at (602) 735-5555. The Lee & Associates agents are at (602) 956-7777.

Pima Commerce Center condo sells for $2.5M Mar 10, 2010 A 12,200-square-foot office condo in Scottsdale sold for $2.5 million. Adancho Properties LLC of Phoenix purchased the condo at the Pima Commerce Center, 14287 N. 87th St., Building C. The property is leased to Driggs Title Agency, Pinnacle Bank of Arizona and Saxa Inc. The seller was Shea Com 101 LLC, which was formed by office condo pioneer, Jim Riggs, also the founder and CEO of Saxa. Saxa developed Pima Commerce Center in 2004. It is located southwest of the intersecton of Loop 101 and Raintree Drive. Colliers International represented the buyer. Prudential CRES represented the seller.

' Condo Units Acquired By Amy Wolff Sorter PHOENIX-A Chicago buyer has taken possession of 185 "fractured" condos in two separate deals totaling close to $15 million. RN Properties bought remaining units at La Terraza at Biltmore Condominiums and Portofino Condominiums in what experts suggest represents a growing trend in bulk condo sales. At this time last year, even two years ago, the story was vastly different. Brad Goff, principal with Apartment Realty Advisors' Phoenix office tells Globest.com that, beginning in late 2007, the so-called "fractured" condos were coming to markets in droves as the demand for the units dried up following a period of frenzied overbuilding and conversion. "They were coming on the market and no one knew what to do with them or how to get out of them," acknowledges Goff, who partnered with ARA senior vice president David Lord on both transactions. As a result, he says, the units sat on the market for months. But during the past six months, buyers and sellers of bulk condos have figured it out. "Every offering we turn out is getting 20 to 30 offers," Goff explains. "The perception is that Phoenix is bottoming out, and people want to be in the marketplace." What the investors do, Goff continues, is condo banking; in other words, holding on to the units for awhile, understanding that the investment will pay off in the future. "There's a perceived opportunity there," Goff adds. The recent sales of La Terraza at Biltmore Condominiums at 4464 N. 22nd St. and Portofino Condominiums at 3830 Lakewood Pkwy. to Chicago buyer RN

Properties represents an example of what's on the market and the price it's commanding. Both assets were sold during the mid-2000s as conversion opportunities during the height of the area's condo craze. And both ran into the drop in demand when the craze ended. Lord tells GlobeSt.com that when Portofino seller Monaco Development LLC acquired the 440-unit asset in 2005, it paid $115,000 a unit, with the average offering price to potential condo buyers topping out at $215,000 a door. Lord says sales were okay, but "the owners felt they'd owned them long enough, saw an opportunity to sell in bulk, and decided to do that." Lord says the buyers paid a shade under $70,000 per door for the remaining 78 units. Goff, in the meantime, explains that the 224-unit La Terraza has a similar story. Seller Orion Residential LLC of Chicago acquired the project for $42 million some years ago, and offered the units to the market for more than $300,000 per unit. RN Properties ended up paying north of $88,505 per unit for 107 units. Goff and Lord say that RN Properties' strategy for its new acquisitions will be the same as other investors coming into the market wanting to buy fractured condos. "They'll take them off the market, hold them as rentals, and when the market comes back in three to five years, they'll sell them," Lord comments.

Two companies sign leases for space in SkySong by Jane Larson Mar. 9, 2010 A growing education-software company and an Internet marketing firm have signed leases that will make them among the top five tenants at SkySong, the ASU Scottsdale Innovation Center.

The two deals also mean that SkySong's first two buildings, with a total of 289,626 square feet, are 76 percent leased.

Adaptive Curriculum will move this spring into more than 13,000 square feet in the second building of the high-tech development in south Scottsdale. It will begin building out the space in the next few weeks, Chief Executive Officer Jim Bowler said.

The company develops software programs that help middle- and high school students learn math and science. A subsidiary of Sebit LLC, an e-learning company based in Turkey, Adaptive Curriculum started at SkySong in 2007 with two employees.

It now has 20 employees in sales, marketing, research and development, Bowler said. Scottsdale Unified School District is among its clients.

Bowler said he hopes to establish the SkySong office as Sebit's U.S. headquarters and grow it to more than 60 employees over the next two years, including engineers and executives.

The company collaborates on its products with Arizona State University's Technology Based Learning and Research unit. The opportunity to work with ASU researchers and students is one of the selling points that SkySong developers make to potential tenants.

The other company moving its Arizona operations into SkySong is Channel Intelligence Inc. of Orlando. It is taking more than 10,000 square feet, also in the

development's second building, later this month.

The firm entered the Arizona market last year when it acquired the assets of Vcommerce Corp., an e-commerce software company that was based near 92nd Street and Shea Boulevard in Scottsdale. Channel Intelligence said at the time of the deal that it planned to hire 25 employees.

Channel Intelligence plans to open its SkySong office with 25 employees and double that over the next two years, Chief Executive Officer Rob Wight said. He said SkySong's central location will help the company recruit software developers, account managers and sales executives.

Channel Intelligence combines a product database with online marketing services to help consumers buy products online and in local retail stores. It counts Best Buy Co. Inc., Sears Holdings Corp. and Target Corp. among its retailer clients.

Adaptive Curriculum signed a six-year lease, and Channel Intelligence's lease runs for just over five years.

ASU remains SkySong's largest tenant, with nearly 80,000 square feet. Other tenants are Ticketmaster, with 33,335 square feet, and American Solar Electric, with 12,654 square feet.

ASU is still waiting to hear from the National Institutes of Health about its application for a $10 million grant that would help it turn the fourth floor of SkySong's second building into lab space for the ASU Biodesign Institute's Impact Accelerator, a business incubator for high-tech and biotechnology startups.

Kiser Harriss moves California warehouse to AZ March 8, 2010

Kiser Harriss, a pool chemical company has relocated its Southern California warehouse to a building on Phoenix’s west side.

The company signed a three-year lease for 70,200 square feet at 4441 W. Polk St. in the Papago Industrial Park.

Cassidy Turley of Phoenix represented Kiser Harriss and the landlord, Lincoln Property Co. The 92,000-square-foot building is now 100 percent leased.

Orbital buys Gilbert General Dynamics plant ED TAYLOR March 5, 2010 Orbital Sciences said it has agreed to buy General Dynamics' satellite manufacturing and testing plant at Elliot and McQueen roads in Gilbert for $55 million in cash. Orbital, a space technology company based in Dulles, Va., already operates its launch systems division in Chandler, where the company employs about 1,300 people.

The addition of the Gilbert business will add about 325 employees to the company's roster, most of them engineers, technicians and program managers, Orbital said.

About 300 of the newly acquired employees are located in Gilbert and the rest are at GD facilities in Virginia, where they will be integrated into the merged company's operations, said Orbital spokesman Barry Beneski.

No layoffs are planned, he said.

The Gilbert satellite plant, which is part of GD's Advanced Information Systems unit, is "one of the most modern and capable in the world, providing additional satellite manufacturing capacity to accommodate Orbital's anticipated growth for many years to come," Orbital said.

The 135,000-square-foot factory will expand Orbital's capacity to design and build larger satellites for Earth science, climate monitoring and astronomy missions, Beneski said.

The plant was built by Spectrum Astro in 2004 and was sold to General Dynamics later that year when Spectrum Astro merged with GD. It officially became part of GD on Jan. 1, 2005.

General Dynamics decided to sell the plant because it didn't fit with the direction of the Advanced Information Systems division, which is moving toward cyber-security, intelligence and reconnaissance-related work, said GD spokesman Rob Doolittle.

"The Gilbert piece was a little outside those realms, but it fits very closely with what Orbital is doing," he said.

Orbital Chairman David Thompson said "there is a compelling strategic fit between Orbital's current satellite business and the General Dynamics spacecraft unit" in markets served and types of satellites built.

The deal is expected to close in four weeks.

Orbital's Launch Systems Group at Price and Dobson roads in Chandler, about 10 miles from the General Dynamics plant, makes the Taurus, Minotaur and Pegasus rockets used to launch military and civilian satellites. The company's satellite business is based in Virginia.

The Gilbert plant will be managed from Virginia, but the distance between the two locations won't hinder the operations because the Gilbert plant is capable of designing, assembling and testing satellites all in one location, Beneski said.

Among the satellites assembled in Gilbert have been the Fermi gamma-ray space telescope, launched for NASA in June 2008, and the C/NOFS weather satellite, launched for the Air Force by an Orbital Pegasus-XL rocket in April 2008. The plant currently is working on a Landsat spacecraft for Earth monitoring and smaller satellites for defense and civilian customers, Beneski said.

The acquisition does not involve GD's operations in Scottsdale, where the company maintains headquarters of its communications equipment division.

The Gilbert plant is expected to add about $50 million to Orbital's 2010 revenue. The company anticipates total sales of about $1.2 billion this year.

Orbital's employment in the East Valley will reach close to 1,700 after the acquisition, up from 390 at the beginning of 2000, Beneski said.

"Over 11 years, that is a 13 percent annual growth rate," he said.

PACIFIC REALTY ADVISORS SPENDS $9.4 MILLION TO BUY NORTH PHOENIX APARTMENT PROJECT March 5, 2010 Phoenix – A company formed by Kenn Francis and Tod Thorpe of Pacific Realty Advisors in Scottsdale paid $9.416 million ($53,500 per unit) to buy the 176-unit Bayside apartments located at 20245 N. 32nd Drive in the Deer Valley area of north Phoenix. The seller was River Oaks Apartments Limited Partnership, a company formed by Charles Heers of Inland Empire Builders in Las Vegas, Nev. Records show Deer Valley Apartments LLC in Phoenix (Francis, Thorpe and Mike Ingram, principals) paid cash for the multi-family project, which was built in 1999. Three weeks ago, another company formed by Francis, Thorpe and Ingram paid $13.696 million ($53,500 per unit) to acquire the 256-unit Palm Court apartments at 20401 N. 19th Avenue. Another company formed by Heers was the seller in that deal. P.B. Bell & Associates of Scottsdale has been hired to manage the properties acquired from Heers. Thorpe says Pacific Realty Advisors is interested in buying additional apartment projects in the Phoenix area as well as office and industrial properties. In the past three weeks, BREW has reported companies formed by Heers selling 648 apartment units in three properties in the Deer Valley area. Those sales generated a combined $34.668 million for Heers, who still owns 3,467 units in eight rental communities in Arizona. No word on the disposition of those assets. Heers has been building apartment projects in Arizona since the early 1980's. The other property Heers recently sold is the 216-unit Ridge Gate apartments located at 2811 W. Deer Valley Road in Phoenix. Two weeks ago, BREW reported Verde Property Investments LLC in Phoenix (Ernest “Ernie” Garcia, member) paying $11.88 million ($55,000 per unit) to buy Ridge Gate. Find out more from Francis and Thorpe at (480) 421-1500. Contact Heers at (702) 792-9315.

Wisconsin company to buy Chateaux for $7M by Jan Buchholz March 5, 2010

A Wisconsin company that manufactures and distributes food-processing ingredients has been selected to purchase the opulent Chateaux on Central brownstone project. The winning bid: $7 million.

The unfinished residential development at the northwest corner of Central Avenue and Palm Lane has been financially troubled since construction started in 2005. All forward movement stopped when the lender, Mortgages Ltd., took it back in 2008 shortly before that company was forced into Chapter 11 bankruptcy protection.

Mark Winkleman, chief operating officer of ML Manager LLC, said MSI West Investments LLC submitted the winning bid for the Chateaux. Closing on the property is scheduled for March 12.

ML Manager is the court-approved entity administering the Mortgages Ltd. loan portfolio in the wake of the lender’s bankruptcy. The Chateaux is one of the first Mortgages Ltd. properties to be sold off.

Dave Clark, CEO of Mainstreet Ingredients of La Crosse, Wis., confirmed that his company is behind the winning bid. Mainstreet recently created MSI West, a limited-liability company registered with the Arizona Corporation Commission.

“We are looking to diversify,” Clark said. “We’re very excited about this.”

The company has purchased real estate in other states and started looking around the Phoenix area last year.

“We like what we see in downtown Phoenix,” Clark said. “We feel this will be a good investment, but we’re not here to turn a dollar.”

Clark said he didn’t want to talk about plans or other participants in the deal until the transaction closes, but said he expects the community and city officials to be pleased when that information is revealed.

He did not disclose whether the property would remain a luxury brownstone community of multimillion-dollar homes — the original vision of Phil and Mollie Anderson, owners of Pro Star Realty Inc. and founders of Central PHX Partners LLC, the Chateaux’s development entity.

The project was designed as 21 five-story residences with private elevators and rooftop terraces. The announced prices ranged from $2.8 million to $4.5 million per unit, but none were sold.

Desert Hills Bank provided the first construction loan, but the relationship soured when the bank filed a lien on the property. The late Scott Coles, then CEO of Mortgages Ltd., stepped in to salvage the project, saying he believed in what the Andersons were trying to accomplish.

According to Winkleman, Mortgages Ltd. loaned Central PHX Partners $37 million. When that was not enough to complete the development, Coles took back the property in spring 2008.

In an April 2008 story by the Phoenix Business Journal, Coles said the loan was in default. “I always try to work with these guys, but I have to protect my investors,” he said in that story.

Coles committed suicide on June 2, 2008, thrusting the entire Mortgages Ltd. loan and property portfolio into limbo.

Within a month of Coles’ death, several borrowers forced Mortgages Ltd. into Chapter 11 bankruptcy. After more than a year, a reorganization plan was put into place with Winkleman, former commissioner of the Arizona State Land Department, named to administer the loans.

Winkleman said his sole responsibility is collecting on those loans, either from the borrowers or through foreclosure actions, and paying investors whatever can be collected from the proceeds. Winkleman said several bids were submitted prior to the Chateaux on Central auction.

“We received several offers, but this buyer took the time to carefully inspect the project and proved to us that they had the funds to close the transaction,” Winkleman said.

According to Mainstreet Ingredients’ Web site, Clark founded the company in 1989 “with an in-depth understanding of the dairy and food markets and a commitment to the highest possible standards for the food industry.”

The company employs food scientists who have created trademarked food stabilizers, protein products, and dairy-based and bakery ingredients. The company shipped 125 million pounds of product last year, according to the site.

Get Connected

Mainstreet Ingredients: www.mainstreetingredients.com

Chateaux on Central: www.chateauxoncentral.com

West Valley industrial property sold for $6.4M Mar 1, 2010 Presson Corp., a private investment firm based in Phoenix, paid $6.4 million for a 237,000-square-foot distribution facility in the West Valley. The Martin Van Buren Commerce Park comprises 201-502 N. 37th Drive and 3740 W. Van Buren St. in Phoenix. The property was built in 1987. The seller was Prologis (NYSE:PLD), one of the world’s largest developers and owners of warehouse space. Prologis represented itself in the transaction, while Cassidy Turley/BRE Commercial in Phoenix represented Presson.

PACIFIC REALTY ADVISORS SPENDS $9.4 MILLION TO BUY NORTH PHOENIX APARTMENT PROJECT March 5, 2010 Phoenix – A company formed by Kenn Francis and Tod Thorpe of Pacific Realty Advisors in Scottsdale paid $9.416 million ($53,500 per unit) to buy the 176-unit Bayside apartments located at 20245 N. 32nd Drive in the Deer Valley area of north Phoenix. The seller was River Oaks Apartments Limited Partnership, a company formed by Charles Heers of Inland Empire Builders in Las Vegas, Nev. Records show Deer Valley Apartments LLC in Phoenix (Francis, Thorpe and Mike Ingram, principals) paid cash for the multi-family project, which was built in 1999. Three weeks ago, another company formed by Francis, Thorpe and Ingram paid $13.696 million ($53,500 per unit) to acquire the 256-unit Palm Court apartments at 20401 N. 19th Avenue. Another company formed by Heers was the seller in that deal. P.B. Bell & Associates of Scottsdale has been hired to manage the properties acquired from Heers. Thorpe says Pacific Realty Advisors is interested in buying additional apartment projects in the Phoenix area as well as office and industrial properties. In the past three weeks, BREW has reported companies formed by Heers selling 648 apartment units in three properties in the Deer Valley area. Those sales generated a combined $34.668 million for Heers, who still owns 3,467 units in eight rental communities in Arizona. No word on the disposition of those assets. Heers has been building apartment projects in Arizona since the early 1980's. The other property Heers recently sold is the 216-unit Ridge Gate apartments located at 2811 W. Deer Valley Road in Phoenix. Two weeks ago, BREW reported Verde Property Investments LLC in Phoenix (Ernest “Ernie” Garcia, member) paying $11.88 million ($55,000 per unit) to buy Ridge Gate. Find out more from Francis and Thorpe at (480) 421-1500. Contact Heers at (702) 792-9315.

DAIRY FARM IN BUCKEYE SOLD FOR $13.3 MILLION . . . 621-ACRE TRACT HAD BEEN FORECLOSED March 5, 2010 Buckeye – Stotz Farms Inc. in Avondale (Thomas Rosztoczy, pres.) paid $13.3 million to buy 621 acres at the southwest corner of Southern Avenue and Palo Verde Road in Buckeye. The seller was a company formed by MidFirst Bank in Oklahoma City, Okl. The sale was negotiated through Adrian Evarkiou of Sierra Real Estate Solutions in Phoenix. The buyer acquired the agricultural property with a $8.3 million loan from Farm Credit Services Southwest in Tempe. The farmland was previously owned and operated by Pylman Dairy. MidFirst Bank foreclosed on the real estate and equipment after Pylman Dairy defaulted on a loan secured by the property. The cattle were sold in a separate transaction. Sierra Consulting Group in Phoenix (Ed Burr, principal) acted as receiver for the seller. Rosztoczy will use the land to expand his dairy business. Stotz Farms now operates a dairy about a mile north of the newly acquired land. That dairy farm is located at 30005 W. Yuma Road in Buckeye. Rosztoczy also owns Arizona Machinery, a John Deere dealer with three Valley locations. Get more from Rostoczy at (623) 386-5989. Talk to Evarkiou at (602) 424-7012.

West Phoenix industrial property sold for $6.4M March 1, 2010 Presson Corp., a private investment firm based in Phoenix, paid $6.4 million for a 237,000-square-foot distribution facility in the West Valley.

The Martin Van Buren Commerce Park comprises 201-502 N. 37th Drive and 3740 W. Van Buren St. in Phoenix. The property was built in 1987.

The seller was Prologis (NYSE:PLD), one of the world’s largest developers and owners of warehouse space. Prologis represented itself in the transaction, while Cassidy Turley/BRE Commercial in Phoenix represented Presson.

TESTIMONIALS “Victor has been great about showing us opportunities that are right in line with our requirements. He is very creative in solving problems and overcoming objections. His diligence and persistence has helped us complete several terrific acquisitions. A real asset for our team.” Bret Jordan, Vice President Western America Equities LLC

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“We met Victor Allison in 2004. Within one week, he had located a property for us that we acquired. It has performed exceptionally well. Shortly thereafter, he also located an off-market medical office building and successfully negotiated with the seller to gain acceptance of our offer, even though other brokers were telling the seller that they could get a higher price. We have been very pleased with the properties located by Victor and his service to us. We have found him to be knowledgeable, trustworthy and very good to work with.” Jim Clark, President Western America Equities, LLC

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“I would like to thank you for the assistance and sound advice you gave to me in the leasing of my office space here on Gainey Ranch. Your professionalism assisted me greatly in getting the very best deal I could here, which not only included getting an excellent dollar per square foot rate, but in also procuring free rent for signing the contract. Through your expertise I feel I had an edge in my dealings with the management company, and did not allow them to take advantage of my relative inexperience in the commercial real estate market. Thank you again.” Steven Bernstein Allstate Insurance Co.

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“Victor Allison is the personification of what a good broker ought to be. Knowledgeable in the market area, flexible, creative and tenacious. Whether it was finding tenants or marketing a shopping center Praedium was responsive and honest…” Jack Walker, President English & Continental Properties

“Victor Allison & Praedium Advisors' monthly newsletter is an invaluable source of news and intelligence on the Phoenix commercial real estate market. I highly value my subscription to Praedium Advisors' publications (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More) because they save me so much time and trouble: Praedium researches and publishes all the important news and the most important transactions in Phoenix commercial real estate. Many thanks to Victor Allison and Praedium Advisors for their extremely valuable and informative monthly newsletters (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More). These are the two most important sources of news and information that I read. These newsletters contain important details about the people and companies doing all the different deals in Phoenix. I can quickly know what is going on, where it is going on and who is doing it. This is the most up to date information on commercial deals deals going on all across the Phoenix market. It is useful for investors, developers, brokers and all the businesses related to same. Many thanks, Victor.” Ken Yamaguchi, Southwest Regional Director SCI Real Estate Investments, LLC

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“I have known, and worked with Victor Allison, for many years. In all of our real estate dealings he has handled them very professionally, and promptly, which makes him a pleasure to work with. A man of the highest of integrity. If Victor tells me something, I can "bank it". What more could a person ask for?” Charles E. “Chuck” Winslow Winslow Enterprises

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HOW TO ALWAYS GET THE HIGHEST PRICE FOR YOUR PROPERTY

Every property owner wants to get the highest price whenever they're selling or leasing their property. That's one of the main reasons why people own property in the first place...to maximize their returns and the money they make while owning the property. With this in mind it's interesting to observe some owners doing things that are in direct conflict with what will have them receive the most amount of money for their property. When selling or leasing your property, the way to maximize the amount of money you receive for it is to get the word out to the greatest number of people who would be interested in it. Yet there are property owners who prefer not tell many people about their property, and they end up just putting their own sign on it. Or even worse they won't even put a sign on it, and they won't advertise it anywhere either. This approach almost guarantees you receiving considerably less money for your property, as compared with if you instead did what would maximize its exposure to the kind of people who would be interested in it. The most–savvy investors want to buy properties that are not on the open market, because they know that's when they make their best investment purchases. They love being the only people negotiating with owners without any competitors even knowing that the property is available, because that's when they can buy property for the lowest prices. An owner simply can't receive the highest price for their property when there are many potentially interested parties who don't even know that their property is available. Think about it for a moment...If you had a used car that you wanted to sell which of the following two approaches do you think would bring you the highest price for it? 1) Placing flyers advertising the car in the mailboxes of the 10 closest houses to your own 2) Advertising the car in the used car section of the newspaper with the greatest circulation in your area Clearly the second choice is the one more likely to bring you the highest price for your car, because it has a much greater chance of reaching the people who are looking to buy a car like yours. The 10 neighbors living the closest to you may not be in the market for a car like yours, but one of them may be willing to "take it off your hands" for a price considerably less than your asking price. And in the process you might think this was the best price you could have obtained for the car. So similarly, if you don't list your property and put it on the open market when you're ready to sell or lease it, you're more likely to receive a lower price for it. There's a reason why the most successful companies and investors list their properties when making them available to the public. Because they know that the exposure their properties will receive will result in the highest price imaginable for them, and they won't be leaving any of their own money on the table at the same time.

VICTOR ALLISON’S NINE POINT, PROPERTY SPECIFIC MARKETING ACTION PLAN

It's important in marketing your property for you that we do everything that will ensure that you receive the highest price for it. That's why I've put together my Nine Point Marketing Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Not all properties can or should be marketed using the same marketing plan. Being a boutique marketing brokerage without layers of management, PRAEDIUM Advisors is able to adapt quickly and adopt effective, new marketing methods before they hit the mainstream brokerage houses. I do not take on more marketing assignments than I can effectively handle at one time ensuring my time is devoted to selling your property until the job is done. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining the highest possible sales price in the shortest possible time. 1 – PREPARE YOUR PROPERTY FOR SALE I work with you to understand your short–term and long–term real estate goals and how they will impact both the direct and network marketing tools available to us. My goal is to advise, educate, and guide you through the sales process.

• I discuss marketing and any sales confidentiality issues important to you so they can be integrated into the marketing plan.

• I identify property value enhancement opportunities that can be profitably implemented before the sale to maximize your sales price.

EXPERT VALUATION • I review current market, submarket, and financing conditions to establish a

competitive price for your property so it will sell quickly. 2 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, sales motivating, marketing materials are created to make your property stand out from competing properties and capture the attention of buyers.

• Marketing materials include high–quality digital photographs and/or video of your property.

• Two versions of marketing materials are created: a full–color Teaser Flyer for the initial contact with buyers that provides just enough information to motivate buyers to contact me for the full marketing package. The full–color Offering Memorandum contains sufficient information for a buyer to prepare a Letter of Intent. The Offering Memorandum is never push marketed ensuring I capture the contact information of interested buyers for personalized and direct follow–up conversations. A Confidentiality Agreement is used if appropriate.

• The flyer and full OM are produced in both print and .pdf formats to market your property by both direct mail and email and to adapt to buyer preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website and/or we can contract with a firm like Real Capital Markets.

3 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors and developers. The FileMaker software platform can sort the database into the sometimes exclusive investor/developer sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your property is targeted to the proper prospective investor and/or developer group. New investors/developers are added to the database each week and it is continuously updated for accuracy and relevancy. 4 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active marketing is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters and brochures used in this program dramatically enhances the effectiveness of my marketing plan. I do not sit back and wait for phone calls or emails to come in.

OutsideBrokerParticipation

I recognize the importance of working with other investment brokers on a nationwide basis. The number of prospects grows immeasurably with proper promotion to the brokerage community. I actively push your property from the outset of my marketing campaign to the investment brokerage community with full acknowledgement that they have access to buyers not in our database. Again, and unlike some of our largest competitors, I return my fellow broker's calls promptly and treat outside brokers with the utmost care and respect. I prefer split my commission if it means selling your property sooner! 5 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively market and sell your property is the Internet. Unless you have confidentiality issues I place your property on Loopnet (Premium Access Member), CoStar, and possibly Real Capital Markets and other web–based marketing venues. I also create a new web page on PRAEDIUM Advisors’ website devoted to marketing your property. This ensures your property is exposed to thousands of investors, real estate professionals and agents around the world. Additionally, I am a subscriber to several proprietary email Listservers distributing push email marketing messages to thousands of targeted subscribers. PRINT MEDIA Depending on the specific characteristics of your property I may market it in selected local and/or national print media.

SIGNAGE If appropriate I will place the largest viable clean, bright, professional For Sale sign on your property positioning it for maximum visibility and impact. 6 – INQUIRIES & SHOWINGS

• I respond to all leads and inquiries within minutes, not days. • I personally represent you at all showings and employ our seasoned salesmanship to

facilitate the optimum opportunity for a sale. • I assist buyers with financing options if needed. • I review terms of all LOIs with you and, as an experienced negotiator, I draft an

appropriate counter–offer. • I avoid dual agency representation issues in the event that a buyer does not have

their own broker representation ensuring I always negotiate in your best interest. 7 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 8 – CONTRACT & ESCROW I coordinate with the buyer and seller, their respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next marketing assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

VICTOR ALLISON’S NINE POINT, CLIENT SPECIFIC PROPERTY ACQUISITION PLAN

It's important when searching for a property for you that I do everything that will ensure that you see several properties that match your acquisition criteria. That's why I've put together my Nine Point Acquisition Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Being a boutique acquisition brokerage without layers of management, PRAEDIUM Advisors is able to adapt and react quickly assuring you are seeing multiple opportunities that match your acquisition criteria. I do not take on more acquisition assignments than I can effectively handle at one time ensuring my time is devoted to finding a property meeting your investment objectives. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining a property meeting your investment objectives. 1 – DEVELOPING AND UNDERSTANDING YOUR ACQUISITION CRITERIA I listen to you to understand your short–term and long–term real estate investment objectives and develop a specific, written Acquisition Plan with you that delineates your acquisition criteria and objectives. My goals are to find properties matching your acquisition criteria, and to advise, educate, and guide you through the acquisition process.

• I discuss any confidentiality issues important to you so they can be integrated into your acquisition plan.

• I review current market and (if appropriate) submarket conditions to assure your

expectations are realistic. 2 – BUYER REPRESENTATION AGREEMENT There are several advantages of entering into an exclusive buyer representation agreement with an experienced acquisition broker:

We enter into a written agreement wherein I am obligated to use my best efforts to locate properties that best meet your objectives with the goal of purchasing a property that closely matches your acquisition criteria. My responsibilities include:

• Notifying owners/developers/agents with properties that may match your acquisition

criteria of your acquisition criteria.

• Winnowing through they myriad of properties submitted by owners/developers/ agents and presenting only those properties that match your acquisition criteria.

• Analyzing and submitting the prospective properties in a standardized format thereby eliminating the disparity in the presentation methods of the owners/developers/agents.

• I (or your attorney) craft a Letter of Intent to acquire the target property.

• I negotiate aggressively in your best interest based on my knowledge of current

market conditions.

• I assist in locating and securing the best available financing (if necessary).

• I keep you informed of feedback from the marketplace and solicit feedback from you concerning my performance.

• You deal only with one broker thereby eliminating unsolicited inquiries from other

agents and the necessity to re–educate each new agent with your acquisition criteria.

• I endeavor compensated by the property owner or listing agent.

• Response from owners and listing agents is more positive and timely when they realize that you are a serious buyer since you have engaged a broker to identify and qualify properties for you.

• If either of us is unhappy with the other’s performance, our relationship can be

terminated upon 30 day’s notice. 3 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, motivating, marketing materials are created to make you stand out from competing buyers and capture the attention of owners/developers/agents.

• The marketing materials are produced in both print and .pdf formats to solicit properties by both direct mail and email and to adapt to seller preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website promoting your acquisition criteria.

4 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors, developers, and real estate agents. The FileMaker software platform can sort the database into the sometimes exclusive owner/developer/agent sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your acquisition criteria is targeted to those owners/developers/agents who will have properties matching your acquisition criteria. New owners/developers/agents are added to my database each week and it is continuously updated for accuracy and relevancy.

5 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active solicitation is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters, emails and brochures used in this program dramatically enhances the chances of finding a property matching your acquisition criteria. 6 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively solicit for properties is the Internet. In addition to my proprietary database I subscribe to several online, targeted email Listservers that push market to their membership (sometimes numbered in the thousands). This ensures your acquisition criteria is exposed to thousands of owners, developers, real estate professionals and agents around the world. 7 – CONTRACT NEGOTIATIONS & ESCROW

• I review terms of all LOIs with you and, as an experienced negotiator, I draft an appropriate counter–offer.

• I avoid dual agency representation issues in the event that a seller does not have their own broker representation ensuring I always negotiate in your best interest.

• I coordinate with you and seller, their agent, your respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale.

8 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next acquisition assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

“Do You Own Commercial Real Estate with a Value of $5 Million or More?”

Would You Like to Increase Your Cash Flow Without Raising Rents and

Without Lowering Expenses?

Of course you would so continue reading to find out about A Lucrative Tax Strategy that should be used on Almost Every Major Purchase of Commercial Real Estate according to the U.S. Treasury Dept. CHANCES ARE YOU ARE PAYING TOO MUCH IN TAXES … AND YOU ARE NOT ALONE! Thousands of commercial property owners overpay their federal income taxes every year. But, don’t blame your CPA! In order to realize the maximum benefits available under current law, the IRS requires a specialized engineering based cost analysis study. Your CPA is unlikely to be one of the 75± engineers in the US specialized in the area known as COST SEGREGATION ANALYSIS. See the IRS website http://www.irs.gov/businesses/article/0,,id=134180,00.html. The CPA and Legal Network has performed COST SEGREGATION ANALYSES over the past 22 years. Our team of CPAs, Lawyers, Cost Engineers and Valuation Experts can help you evaluate if this strategy makes sense for your company or property. The CPA and Legal Network’s detailed, No Cost, No Obligation evaluation is available for properties in all 50 states!

A few of the many types of properties benefiting from COST SEGREGATION ANALYSIS are:

• Manufacturing • Retail • Wholesale & Distribution • Restaurants • Hotels

• Resorts • Office Buildings • Medical Complexes • Food Processing • And more

The many immediate, tangible benefits of COST SEGREGATION ANALYSIS include:

• REDUCED UPFRONT INCOME TAXES • ABILITY TO ACQUIRE LOANS MORE EASILY • LOWER PROPERTY TAXES IN SOME STATES

• INCREASED CASH FLOW • LOWER INSURANCE PREMIUMS • EASIER TO FACILITATE 1031 EXCHANGES • MAXIMIZED ANNUAL TAX DEPRECIATION

• RELEASES YOUR TRAPPED DEPRECIATION AND TURNS IT INTO CASH NOW! Call Victor Allison today at 602.320.6200 to tap into the Hidden Reservoir of Cash in your Commercial Property! If you own any type of depreciable Commercial Property with a value of $5 million or more, you may be entitled to these types of benefits. Examples: (i) A Medical Office with a $5,000,000 Basis could realize $1,168,401 in accelerated depreciation saving $467,360 in taxes over six years, and (ii) The CPA and Legal Network recently helped a client realize $1,340,000 of tax benefits on their properties.

3 Point 100% Guarantee:

1. You pay nothing until you see what tax saving benefits you are likely to realize using cost segregation.

2. Your cost segregation study will be done in accordance with the IRS ATG, Audit Techniques Guide.

3. The CPA and Legal Network will back you and your CPA in the event of an audit and fully explain the cost segregation procedure used on your property to the IRS.

Clients Served Include: Cinergy Corp Starbucks Coffee Co. Dayton Power & Light Wells Fargo Chevron

Pacific Gas & Electric Hyatt Hotels Duquesne Energy Bank One Kroger

Harris Ranch General Growth Propeties First Energy Northern Trust Bank Texas-New Mexico Power

Call Victor Allison now at 602.320.6200 for a NO COST, NO OBLIGATION evaluation of your property. This limited time offer is available for properties in all 50 states. It’s your money. What would you rather do: send it to the US Treasury, or use it to grow your business?

Phoenix Commercial Real

Estate Deals & More

February 2010 Edition

Victor Allison

Your Phoenix Commercial Real Estate Brokerage

Specialist

602.320.6200

Selected, recent newswire articles for the metro Phoenix area dedicated to ensuring you are always on top of all the latest news and trends that may

affect your property values and that will assist you in your real estate decision–making processes.

www.praedium-advisors.com

Victor’s Insider Scoop on What Are QR Codes and Why Should You Care …? What, you don’t know! Don’t be embarrassed. I didn’t know either until last week when someone in my MasterMind Group brought them up. QR Codes, or Quick Response Codes, are two dimensional Barcodes developed by Denso http://www.globaldenso.com/TECHNOLOGY/tec-report/2001/html_version/31.html and released in 1994 with the primary aim of being easily interpreted by scanner equipment in manufacturing, logistics and sales applications. Compared with other barcodes, QR Codes have several advantages: (i) they can hold a very large capacity of numbers or letters in any language (ii) their printout size can be very small (iii) they offer high speed reading (iv) they can be read from any side (omnidirectional or 360° scan) So what?! Who cares?!! My real estate business can’t use them. WRONG! Read on … According to Sean Bartlett, Director of Mobile Strategy for Sitewire http://www.sitewire.net, there are three times more mobile phones today than there

are PCs making mobile marketing as important to businesses now as web marketing was in 2000. By 2013 more websites will be viewed on mobile devices than on PCs. Mobile commerce was $396 million in 2008; in one year that number had tripled to $1.2 billion! Hilton hotels are now booking over $1 million a month in reservations over mobile devices. How do you think these figures will be affected when the current 3G mobile network (operating at 2 MBPS) is replaced by a 100 MBPS 4G system? Do you have a .mobi website optimized for viewing on a mobile device? Do you now think you should? Japan, the first country with a highly developed 3G network and high usage of the mobile internet, was also the country where telecoms like NTTDoCoMo and KDDI achieved a breakthrough by bringing QR code readers to mobile phones. By installing QR code readers on smartphones, it was suddenly possible for everyone to read QR codes and to connect easily to mobile sites. Today, QR Codes are pervasive in Japan. You can find them in advertisements, mobile campaigns, on maps, in magazines, on billboards etc. and nobody wants to miss them anymore. The current QR Code revolution is comparable to SMS (text messages). It's simple to use, the cost of the connection to a mobile site is below the price of an SMS, and it's up to you to decide whether or not you want to scan it. Immediately after hearing about QR codes I Googled them, found this website http://qrcode.kaywa.com/ and in about 5 seconds I had a QR Code for my website on my computer screen. I then went to the iPhone App Store and found a free QR reader appropriately called QR app and installed it on my IPhone. Figure about another 20 seconds. I then took a picture of my QR Code with QR app and presto my website appeared on my iPhone! What’s my immediate use for this? Well for starters I am going to add a QR code to all my advertising signage. Then, when a broker is on a property I am marketing and they want more info, all they have to do is take a picture of the QR Code with their smartphone and they will be transported to a webpage that gives them all the info they need right there on site on their phone. The QR Code for my website is on the next page. Find a reader app for your mobile phone and give it a try. I’m sure you will be as impressed as I was.

Dedicated To Multiplying Your Income

PS – If you are not getting the results you deserve from your antiquated brokers who haven’t thought enough about you to tell you about QR Codes give me a call at 602-320-6200. I have many more innovative ideas I can implement to increase your bottom line! PPS – I’d love to hear about your ideas for how you can use QR Codes in your business. Drop me a line.

MIXED-USE SITE IN GLENDALE PURCHASED BY SCOTTSDALE INVESTOR February 26, 2010 Glendale – Dovi Enterprises LLC in Scottsdale (Hilton Efune, Melanie Efune, principals) paid $1.5 million to buy a 25.75-acre mixed-use parcel at the southeast corner of 71st and Olive avenues in Glendale. The seller was Arizona Illinois REO Trust and Falcon Greens/71st & Olive Trust in Des Plaines, Ill. That entity was formed by Midwest Bank & Trust Co., which foreclosed on the property from the previous owner. The buyer was represented by Matt Rinzler of Insight Land & Investments in Phoenix. Bret Rinehart and Ryan Semro of Lee & Associates Arizona Inc. in Phoenix worked on behalf of the seller. Dovi Enterprises paid cash for the land. In June 2007, BREW reported Montalbano Homes of Arizona Inc. in Oakbrook Terrace, Ill. assembling the site and planning a mixed-use project. The planned development, which is called Kalamata, includes 12.56 acres targeted for 254 multi-family units, 10.64 acres for 79 single-family homes and a 2.23-acre commercial site. Efune says he will immediately start the process of installing off-sites and will look to develop the property as the market dictates. Efune may develop all or a portion of the property and will consider taking on joint venture partners. Efune, who has developed more than 600 apartment units in three Valley projects, will likely develop the multi-family parcel at Kalamata. Financing still to be arranged. Efune says he is looking for additional distressed properties in the Phoenix area that are suitable for future development. “I’m always in the hunt for good deals,” says Efune. Find out more from Efune at (602) 677-5667. Reach Rinzler at (602) 385-1534. Talk to Rinehart and Semro at (602) 956-7777.

Nine-Month Marketing Sign of Times By Amy Wolff Sorter February 24, 2010 MESA, AZ-Pollack Real Estate Investments has ended its 15-year hold on the 82,373-square-foot Village Grove Shopping Center, accepting $5 million for the 1970s retail center. Buyer Hanhil Properties Inc. ended up with the asset following a nine-month marketing period. “This was well-marketed and had a fairly short escrow,” comments listing broker Ari Spiro with Orion Investment Real Estate Solutions in Scottsdale, AZ. Spiro, who shared marketing duties with Orion colleague Sean Stutzman explains the lengthy marketing period for the asset at 1927 N. Gilbert Rd. represented the sign of the times more than anything else. Though the asset was well-marketed and it did attract potential buyers, “it’s been really difficult for sellers to know what price to take, and buyers to know what price to pay in the absence of any comps,” Spiro tells GlobeSt.com. “Price discovery has been very difficult.” As a result, he goes on to say, the property attracted what he called “semi-committed offers.” “The activity was there,” he adds, “but there wasn’t really a strong commitment from any buyer.” Southern California-based Hanhil Properties ended up with a 96%-leased asset and an assumed loan carrying an interest rate of around 6%. Spiro points out that the in-place financing, which had been regarded as a hindrance earlier in 2009 because it required 50% down, became more appealing by the end of the year. “In the current lending environment,” he says, “that loan became very attractive.” Hanhil, which was represented by Fred Fardoost of Realty Investments, plans to hold the asset long-term. “This was a solid deal and below replacement cost,”

Spiro remarks. “This is one that they could feel confident that, if they were to lose a tenant, they’d be able to replace the rent because Pollack has kept rents historically low in the center.”

130 Units Bought from Foreclosure By Amy Wolff Sorter February 22, 2010 PHOENIX-Canadian and Washington State investors have acquired 130 units of the 145-unit Century Plaza condominiums from foreclosure. The partnership paid $16 million in an all-cash deal to Wisconsin-based M&I Marshall and Ilsley Bank for the assets. Cushman & Wakefield of Arizona director Brett Polachek, who worked on behalf of the buyers, tells GlobeSt.com that Century Plaza was an old office building converted to condominiums during the area's condo conversion activity phase. Equus Development Corp. paid just under $10 million for the 218,532-square-foot office building at 1 E. Lexington Ave. in 2004 after it twice fell out of escrow. However, Equus Development ran afoul of a collapsing market after spending more than $1 million in conversion costs. The lenders foreclosed on the project in March 2009. "Fifteen of the units sold, and the remainder were eventually foreclosed on by the bank," Polachek explains. "The buyer bought the 130 units, along with some retail on the ground floor." There is approximately 11,000 square feet of retail space available, which is currently being marketed by SRS Real Estate Partners' Phoenix office. Polachek comments that the project was in escrow for awhile, and "while it was under contract, people were coming to the doors, wanting to buy individual the units," he says. "There seems to be a lot of built-up interest in the property." Polachek goes on to say that the new owners plan to sell the units. Units range in size from 734 square feet to 2,846 square feet. Prices are expected to start at around $165,000.

Nike store set to open this fall at Scottsdale Quarter 2-level, 18,000-square-foot location remains on track for fall launch by Peter Corbett Feb. 22, 2010 Scottsdale Quarter will take a few steps forward with Nike opening this fall.

Nike is planning a two-level store of 18,000 square feet east of the Apple and H&M stores, said T.J. Drought, Glimcher Realty Trust director of leasing.

It is one of only three or four stores Nike plans to open this year, he said.

"They really want to make a big splash," Drought said. "It will have all their different brands of apparel and footwear, a full assortment of their golf line and a running section."

Nike and other retailers and office tenants plan to move into the Scottsdale Quarter over the next few months. The Prime Bar should be ready by April, Glimcher executives said.

Scottsdale Quarter, which opened 11 months ago, is a $270 million project on 28 acres southwest of Scottsdale Road and Greenway-Hayden Loop. It is east of Kierland Commons.

Glimcher Realty Trust of Columbus, Ohio, is developing the project along with the Wolff Co. and Vanguard City Home.

The recession has slowed the pace of store openings, but Scottsdale Quarter is picking up momentum.

"We've always said great location, great project, but tough timing," said Marshall Loeb, Glimcher president.

Phase II opens in October

A second phase of buildings, a plaza and a fountain are expected to open by October.

Other tenants coming to Scottsdale Quarter include:

• True Food Kitchen, a Sam Fox restaurant developed with Dr. Andrew Weil, an author of health books. The first location is in Biltmore Fashion Park.

• Parc Central, another location for Parc in Hollywood, described by Arizona Republic restaurant critic Howard Seftel as a "small-plate boutique with global culinary touches."

• Stingray Sushi, a branch of the downtown Scottsdale sushi restaurant.

• Gold Class Cinemas, a luxury eight-screen theater with limited seating in each venue.

Glimcher has also secured leases for about 50,000 square feet of office space. That includes iCrossing, a digital marketing company, and Cities West Publishing, which produces Phoenix magazine, Phoenix Home and Garden and Eddie V's Restaurant Management.

Plans for Scottsdale Quarter call for 1.2 million square feet of space for stores, restaurants, offices, hotel rooms and condominiums.

VERDE PROPERTY INVESTMENTS PURCHASES 216-UNIT RIDGE GATE APARTMENT COMPLEX February 19, 2010 Phoenix – Verde Property Investments LLC in Phoenix (Ernest “Ernie” Garcia, member) paid $11.88 million ($55,000 per unit) to buy the 216-unit Ridge Gate apartments at 2811 W. Deer Valley Road in Phoenix. The seller was Deer Valley Apartments LLC in Phoenix (Kenn Francis, Todd Thorpe, Mike Ingram, principals). On the same day of the sale to Verde Property Investments, records show Deer Valley Apartments LLC paid $11.556 million ($53,500 per unit) to buy Ridge Gate. The seller was a company formed by Charles Heers of Inland Empire Builders in Las Vegas, Nev. Last week, BREW reported the company formed by Francis, Thorpe and Ingram paying $25.252 million to acquire 472 apartments in two projects located in the Deer Valley area of north Phoenix. In the other transaction, Deer Valley Apartments LLC paid $13.696 million ($53,500 per unit) to acquire the 256-unit Palm Court apartments at 20401 N. 19th Avenue. The seller of both Ridge Gate and Palm Court was Ridgepalm Limited Partnership (formed by Heers). Deer Valley Apartments LLC continues to own Palm Court and has no immediate plans to sell that asset. Sources say Garcia’s company originally was to provide financing for the purchase of Ridge Gate, but ended up buying the property outright. The acquisition of Ridge Gate marks the return to the Valley investment market for Garcia, who has bought and sold many properties in Arizona. Over the years, BREW has reported Verde Investments Inc. (Garcia’s company) and affiliated entities buying and selling apartment, office and land properties in the Phoenix and Tucson markets. Verde Investments is interested in buying additional multi-family, office, industrial and land parcels in the Valley. Heers’ company developed Palm Court and Ridgegate in 1999. The projects, which are less than two miles apart, are about 87 percent occupied. P.B. Bell & Associates of Scottsdale has been hired to manage the properties. Thorpe says Pacific Realty Advisors is interested in buying additional apartment projects in the

Phoenix area as well as office and industrial properties. The company is under contract to purchase another multi-family complex in a deal set to close in few weeks. No further details on that transaction. Heers has been building apartment projects in the Phoenix area since the early 1980's. The Las Vegas-based developer still owns nine rental communities in the Valley totaling 3,643 units. No word on the disposition of those assets. Amr Ceran and Brian Garcia are the acquisition contacts at Verde Investments . . . reach them at (602) 778-5000. Francis and Thorpe are at (480) 421-1500. Contact Heers at (702) 792-9315.

INVESTOR BUYS 222-UNIT MULTI-FAMILY PROPERTY NEAR PHOENIX COUNTRY CLUB February 19, 2010 Phoenix – CC Arizona Investors LLC, a company formed by Matthew Gum of Tamal Vista Holdings in Kentfield, Calif., paid $3.8 million ($17,117 per unit) to acquire the 222-unit Country Club apartments located at 3030 N. 7th Street in Phoenix. The seller was Bank of America. The sale was brokered through Todd Braun, Jim Crews and Brett Polachek of Cushman & Wakefield of Arizona Inc. in Phoenix. Janspec Holdings Ltd. in Surrey, B.C., Canada (Nyal Wilcox, principal) provided the capital and is Gum’s partner in the deal. The buyer purchased the project with an $800,000 downpayment and financing from Janspec Holdings. The acquisition of Country Club is the first for Gum in the Valley. The Bay Area investor says he and his partners are interested in buying additional multi-family properties in the Phoenix area. In June 2006, BREW reported a company formed by investor James Hill of Englewood, Colo. paying $11.295 million ($50,878 per unit) to buy Country Club apartments. Hill’s company lost the property to foreclosure after defaulting on a loan to BofA. Get more from Gum at (415) 994-5191. Talk to Wilcox at (604) 592-6386. Colin Bagwell is the contact at BofA . . . (714) 327-4556. Reach the Cushman & Wakefield agents at (602) 253-7900.

Paradise Valley Hospital’s rehabilitation-wound care unit moves to new location by Angela Gonzales February 19, 2010 Paradise Valley Hospital has moved its Rehabilitation and Wound Care Center into bigger space on its campus at 40th Street and Bell Road.

The new location is only a 30-second walk from its old spot on the same hospital campus, but it is much larger and more accommodating, said Annie Fortnam, director of the hospital’s wound care and rehabilitation department.

The lease on the old medical office building expired in September, giving the center a chance to move next door into a new structure built and owned by the Plaza Cos.

The center will occupy 12,240 square feet in the 109,425-square-foot Paradise Valley Medical Plaza, which opened in 2008 and now is 87 percent leased.

Fortnam said it’s unusual to have rehabilitation and wound care services in the same program, and the old location didn’t accommodate those services together well. For example, wound care patients had to travel through the physical therapy gym to receive treatment.

The new site has better patient flow, larger treatment and waiting rooms, new furniture and other amenities. Also, there’s enough room in the new gym to offer community classes in the future, Fortnam said.

Sharon Harper, president and CEO of the Plaza Cos., said NAIOP, a commercial

real estate development association, named Paradise Valley Medical Plaza the Office Building of the Year in 2008. The facility also received 2010 Energy Star certification from the U.S. Environmental Protection Agency, she said.

The building is jointly owned by Plaza Cos. and USAA Real Estate Co., with Plaza Cos. serving as the managing member.

An open house is set from 5:30 to 7 p.m. March 25 for the new rehabilitation and wound center.

Fresh and Easy grocery store opens in Ahwatukee February 17, 2010

Fresh and Easy is the American expression of British-based Tesco. While Tesco is a large-scale grocery store, Fresh and Easy groceries are located in neighborhood areas, have a smaller footprint and offer a variety of foods, including a large selection of items prepared on-site and ready to eat or heat for meals.

The new store at 48th Street and Ray Road is in addition to three stores in Southern California that also opened on Wednesday. They are located in Ventura, Rialto and Northridge.

Next week, Fresh and Easy plans to open an additional four stores in the Southern California cities Lakeside, Whittier, LA., and Reedley.

Kinetico Buys Chandler Industrial Bldg. for $1M Water Treatment Company Acquires 16,200-SF Facility By Jennifer Lloyd February 17, 2010 Kinetico purchased 3304 N. Delaware St. in Chandler, AZ, from Mechanical Cos. for $1 million, or $62 per square foot for the property. The buyer is a water treatment company that plans to occupy the entire 16,191-square-foot building. Kinetico was founded in 1970 and distributes its water systems through independent dealers. Mark Wilcke and Joe Cryan of NAI Horizon represented the buyer. Mike Parker, John Soldo and Evan Koplan of Colliers International represented the seller. Please refer to CoStar COMPS # 1866127 for more information on this transaction.

Yelp Leases 28,600 SF at Galleria Corporate Centre Review Site Expanding to Scottsdale By Tomalina Pacheco February 12, 2010 Yelp has leased 28,574 square feet in the Galleria Corporate Centre North Building in Scottsdale, AZ. The three-story, 442,132-square-foot office building at 4343 N. Scottsdale Road was built in 1991 and received renovations in 2001. Yelp is a San Francisco-based online service that offers consumers the opportunity to review various restaurants, bars and other businesses. Move-in is slated for June 2010. Yelp plans to hire more than 200 people this year. Jim Fijan, Jerry Roberts and Corey Hawley with CB Richard Ellis represented the landlord, JEMB Realty Corp. Chris Hook with CB Richard Ellis represented Yelp.

PACIFIC REALTY ADVISORS GETS OFF SIDELINES . . . JUMPS INTO GAME WITH $25+ MILLION BUY February 12, 2010 Phoenix – After sitting on the sidelines for several years while the real estate market peaked in the Valley, Pacific Realty Advisors in Scottsdale (Kenn Francis, Todd Thorpe, principals) is looking to buy investment properties in the Phoenix area. In its first purchase in the Valley since 2005, a company formed by Pacific Realty Advisors paid $25.252 million ($53,500 per unit) to acquire 472 apartments in two projects located in the Deer Valley area of north Phoenix. Deer Valley Apartments LLC (formed by Francis and Thorpe) purchased the 256-unit Palm Court apartments at 20401 N. 19th Avenue and the 216-unit Ridgegate apartments located at 2811 W. Deer Valley Road. The seller was a company formed by Charles Heers of Inland Empire Builders in Las Vegas, Nev. Heers’ company developed Palm Court and Ridgegate in 1999. Deer Valley Apartments LLC paid cash for the communities. The projects, which are less than two miles apart, are about 87 percent occupied. P.B. Bell & Associates of Scottsdale has been hired to manage the properties. Thorpe says Pacific Realty Advisors is interested in buying additional apartment projects in the Phoenix area as well as office and industrial properties. The company is under contract to purchase another multi-family complex in a deal set to close in few weeks. No further details on that transaction. Heers has been building apartment projects in the Phoenix area since the early 1980's. The Las Vegas-based developer still owns nine rental communities in the Valley totaling 3,643 units. No word on the disposition of those assets. Learn more from Francis and Thorpe at (480) 421-1500. Talk to Heers at (702) 792-9315.

Cafe Valley bakery to rise from new $40M facility by Jan Buchholz February 12, 2010

Phoenix-based Cafe Valley Inc., a commercial bakery, has broken ground on a $40 million, 300,000-square-foot facility at the northeast corner of 71st Avenue and Buckeye Road.

When the building is completed at the end of this year, Cafe Valley will add about 125 employees to its current work force of 375.

Cafe Valley provides baked goods including muffins, cakes and croissants to club stores, restaurants, and grocery and convenience stores across the country.

The company has outgrown its facility at 5320 W. Buckeye Road in Phoenix, according to venture capitalist Larry Polhill, a Cafe Valley director.

Polhill also serves as chairman of American Pacific Financial Corp. in San Bernardino, Calif., and Phoenix-based Inventure Group Inc., which manufactures Poore Brothers potato chips and other snacks.

He said Cafe Valley has been in business since the mid-1980s. It was locally owned when it started up, but was purchased later by a group from the Northwest.

“They folded up. We came in and picked up the pieces,” Polhill said. “We hired a wonderful manager and CEO, and we’re gaining market share.”

That was late 2004. The new facility will be finished later this year, with

production expected to hit full capacity within a year.

Tempe-based Sun State Builders is the general contractor. Phoenix-based Winton Architects Inc. handled the design.

The facility’s 15-acre site had been owned by Chamberlain Development LLC, also of Tempe. Chamberlain is the development arm of Sun State Builders.

Cafe Valley purchased the land from Chamberlain for $4.74 million, according to Payson MacWilliam, who brokered the deal with Don MacWilliam. Both are with Colliers International Inc. in Phoenix.

Steve Brown, sales and development manager for Sun State, said the company recently built a food manufacturing facility for Barrel O’Fun Snack Foods.

“We finished it at the end of the year, and now it’s operational,” he said.

Phoenix Apartment Complex Changes Hands in REO Sale Watermarke Properties Purchases Casa Real for $5.6M By Dale Zavodsky February 9, 2010 First Regional Bank sold the Casa Real apartment complex in Phoenix to Watermarke Properties for $5.6 million, or $21,875 per unit, in an REO sale. The 237,111-square-foot apartment community at 3816 N. 83rd Ave. consists of 256 units in twenty-nine buildings. It was built in 1986 in the Glendale submarket and was 50 percent occupied at the time of sale. Both parties were self-represented. Please see CoStar COMPS #1868309 for more information on this transaction.

SO. CALIF.-BASED INVESTOR ENTERS VALLEY MARKET . . . BUYS 257 APARTMENT UNITS February 5, 2010 Phoenix – Phoenix 83rd Avenue Apartments LP, a company formed by Watermarke Properties Inc. in Corona, Calif. (Jeff Troesh, CEO), paid $5.6 million ($21,790 per unit) to buy the 257-unit Casa Real apartments located at 3816 N. 83rd Avenue in Phoenix. The seller was First Regional Bank in Los Angeles, Calif. The seller foreclosed on the asset from the previous owner. Casa Real was built in 1986. The investment is the first in the Valley for the privately-held Watermarke Properties. The company owns multi-family, office, industrial, and retail properties in Southern and Northern California. Watermarke Properties is looking for additional investment opportunities . . . likes value-added deals of 100+ units. The company wants to purchase another 2,000 multi-family units in the Phoenix area. “We think there are a lot of opportunities in the Phoenix market,” says Peter DiLello, acquisitions manager at Watermarke Properties. “We are looking to aggressively expand that platform.” In the past 36 months, Watermarke Properties has completed more than $500 million in transactions. The company typically pays cash for its properties and closes in short time frames. In July 2005, BREW reported a company formed by investor Shashikant Jogani of Los Angeles paying $12.2 million ($47,471 per unit) to buy Casa Real. Jogani has bought and sold several apartment communities in the Valley. Talk to DiLello at (951) 372-2400.

CONVERTED OFFICE PROJECT ON CENTRAL AVENUE SOLD BY LENDER FOR $16 MILLION February 5, 2010 Phoenix – A venture formed by investors Robert Macdonald of Macdonald Development Corp. in Vancouver, B.C., Canada and Robert Hubbard of Comcore Properties Inc. in Issaquah, Wash. paid $16 million ($115,942 per unit) to acquire 138 units within the Century Plaza condominiums in downtown Phoenix. The seller was M&I Marshall and Ilsley Bank in Milwaukee, Wis. The 17-story project, which is south of the southeast corner of Osborn Road and Central Avenue, has an address of One E. Lexington Avenue. The venture formed by Macdonald and Hubbard paid cash for the real estate. Century Plaza features loft and condominium units ranging from 734 sq. ft. to 2,846 sq. ft. The residences originally were priced from $290,000 to $1 million. Macdonald says the new owner will spend about $3.5 million to complete the unfinished units. The name of the project will also be changed. The upscale development includes concierge service, pool and spa, exercise facility, lounge, ground floor retail with a yoga studio and other amenities. The Macdonald/Hubbard venture will sell the condominiums at a “dramatically lower pricing model.” Prices tentatively expected to start at $165,000. David Newcombe of Russ Lyon Sotheby’s International Realty will assist with marketing. Sales are scheduled to begin in April. In March 2009, BREW reported M&I Bank filing to foreclosure. The previous owner defaulted on a $39.852 million loan that was secured by Century Plaza. Windsor Century Plaza LLC, a company formed by Douglas Edgelow of Equus Development Corp. in Phoenix, converted the former office building and sold 15 of the 153 units before M&I Bank foreclosed. In December 2004, BREW reported Edgelow’s company paying $9.8 million to buy the office project. Macdonald says he is looking for additional multi-family investment opportunities in the Valley . . . the company likes broken condo projects as well as apartment rental communities. Macdonald Development Corp. is a privately-held company that focuses primarily on developing

condominium projects and single-family communities. Comcore Properties also focuses on condominium and single-family developments, and has partnered with Macdonald on multiple deals. Get more from Macdonald at (604) 331-6018. Talk to Hubbard at (425) 557-2815. Newcombe is at (602) 510-0111.

TESTIMONIALS “Victor has been great about showing us opportunities that are right in line with our requirements. He is very creative in solving problems and overcoming objections. His diligence and persistence has helped us complete several terrific acquisitions. A real asset for our team.” Bret Jordan, Vice President Western America Equities LLC

“I use your publications, Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More, on a monthly basis. Both publications are helpful in keeping me updated on what’s happening in the market. I would recommend both of them to friends and colleagues.” David A. Damore, Esq., Partner Berry & Damore, LLC

“Honest, responsive and knowledgeable.” Russ Watson North American Development Group

“As you know, Ethan Christopher Arizona LLC does most of its business in Phoenix, Arizona with corporate headquarters in Encino, CA. Praedium Advisors’ newsletters helps me keep abreast of the most important developments that are going on in the marketplace. This information has proved to be very insightful for our organization and we look forward to enjoying the edge this resource allows us. Thank You” Aric Browne, Partner Ethan Christopher Arizona LLC

“We met Victor Allison in 2004. Within one week, he had located a property for us that we acquired. It has performed exceptionally well. Shortly thereafter, he also located an off-market medical office building and successfully negotiated with the seller to gain acceptance of our offer, even though other brokers were telling the seller that they could get a higher price. We have been very pleased with the properties located by Victor and his service to us. We have found him to be knowledgeable, trustworthy and very good to work with.” Jim Clark, President Western America Equities, LLC

“Your monthly newsletter is fantastic because it’s timely & comprehensive and in turn offers me an accurate snapshot of what’s happening in the market. I look forward to it every month!” Joe Holeva, Member MH Devco/Mohawk Ranch Ph 2/Avondale Business Park

“I love the insight that your newsletter provides our company. I look forward to the next edition.” Spike Lawrence, Partner Lawrence & Geyser Development

“I wanted to drop you a short note to let you know how much I appreciate your electronic newsletters. Having an ongoing summary of major real estate happenings in the Phoenix market is highly useful and saves me a great deal of time knowing that I can get the information I need all in one place. Keep up the great work!” Richard Zigler, President Kaplan Acquisitions, LLC

“As a NAREmeritus with 50 years of experience, I am most selective of professional relationships. Victor Allison has tried over time to deliver information in a very professional manner. Although we do not represent the public as a broker, Victor's service is a great efficiency device. Receiving only properties information that we are interested in saves much valuable time.” Charlie Wilson, RIM, CIC, NARE Metro Investing “I have come to rely on the Praedium newsletter as a valuable resource of information and trends in Arizona markets.” Tim Brown, Partner Demko Investment Group, LLC

“... despite representing a difficult buyer Victor Allison's negotiating skills kept both parties focused on the transaction instead of personalities. We ultimately closed escrow with a win/win situation for both buyer and seller.” Stephen C. Park, Managing Member Park / Gibbs Development Company, LLC

“I find your Phoenix Commercial Real Estate News & More to be a time saver for me. It has articles from several publications so if I can’t get time to read one or more of them, I catch them in your news letter. Keep up the good work. Thanks.” Mark Singerman, Regional Director Arizona Rockefeller Group Development Corporation

“Our experience working with Victor Allison couldn't have been better. He had all of the bases covered when it came to helping us lease one of our more challenging retail properties. Victor was particularly adept at screening and prepping tenant prospects, and that made our lease transactions flow quickly and smoothly.” Kurt Lefteroff Pacific Ridge, Inc.

“I would like to thank you for the assistance and sound advice you gave to me in the leasing of my office space here on Gainey Ranch. Your professionalism assisted me greatly in getting the very best deal I could here, which not only included getting an excellent dollar per square foot rate, but in also procuring free rent for signing the contract. Through your expertise I feel I had an edge in my dealings with the management company, and did not allow them to take advantage of my relative inexperience in the commercial real estate market. Thank you again.” Steven Bernstein Allstate Insurance Co.

“I read the Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More newsletters from “cover to cover” each month. The newsletters help me to focus on client projects that are or will be changing to meet the current real estate market. Knowing what is successfully being completed helps to plan future projects. I have recommended your newsletter to my associates and my clients. My associates need to be up to date on developments that may affect current or future projects. My clients benefit from knowing information on real estate transactions, so they can then plan their acquisitions accordingly. I will continue to watch the newsletter, to be better informed, when a real estate deal that I want to invest in presents itself. Current and, factual information in the newsletter will affect my future acquisitions. Thank you Victor.” Allan R. Converse Principal TeamConverse LLC

“Victor Allison is the personification of what a good broker ought to be. Knowledgeable in the market area, flexible, creative and tenacious. Whether it was finding tenants or marketing a shopping center Praedium was responsive and honest…” Jack Walker, President English & Continental Properties

“Victor Allison & Praedium Advisors' monthly newsletter is an invaluable source of news and intelligence on the Phoenix commercial real estate market. I highly value my subscription to Praedium Advisors' publications (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More) because they save me so much time and trouble: Praedium researches and publishes all the important news and the most important transactions in Phoenix commercial real estate. Many thanks to Victor Allison and Praedium Advisors for their extremely valuable and informative monthly newsletters (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More). These are the two most important sources of news and information that I read. These newsletters contain important details about the people and companies doing all the different deals in Phoenix. I can quickly know what is going on, where it is going on and who is doing it. This is the most up to date information on commercial deals deals going on all across the Phoenix market. It is useful for investors, developers, brokers and all the businesses related to same. Many thanks, Victor.” Ken Yamaguchi, Southwest Regional Director SCI Real Estate Investments, LLC

“We wholeheartedly endorse Victor as one of the most accomplished brokers we have worked with in our 30 years of collective experience. Victor is by far the most responsive broker we work with. He is always a step ahead in terms of gathering information to get a transaction done. Victor is thorough, prompt and reliable.” Francesca Godi and Marino Godi, Principals The Godi Group

“As usual it was a pleasure to get your market news—you know I'm not as active as I once was, and simply don't get out and keep my finger on the pulse of things. Getting your e-mails helps give me a "feel" of the market. Keep up the good work.” Charles “Chuck” Winslow, President Winslow Enterprises, Ltd.

“Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More help us to keep up to date with Phoenix's marketplace. With all the negative press today, it's helpful to see what's really going on from a real estate professional's prospective.” Jerry Turboff, President Prime Capital Corp.

“I have known, and worked with Victor Allison, for many years. In all of our real estate dealings he has handled them very professionally, and promptly, which makes him a pleasure to work with. A man of the highest of integrity. If Victor tells me something, I can "bank it". What more could a person ask for?” Charles E. “Chuck” Winslow Winslow Enterprises

“I look forward to reading Victor's monthly newsletters. The comprehensive summary of transactions and market news helps our group stay on top of current market conditions. They have been a valuable resource.” Mike Demko, Partner Demko Investment Group, LLC

“Your monthly newsletter is fantastic because it’s timely & comprehensive and in turn offers me an accurate snapshot of what’s happening in the market. I look forward to it every month!” Joe Holeva, Member MH Devco/Mohawk Ranch Ph 2/Avondale Business Park

“I love the insight that your newsletter provides our company. I look forward to the next edition.” Spike Lawrence, Partner Lawrence & Geyser Development

“I really look forward to receiving your newsletters every month. They're an invaluable service that keeps me on top of Phoenix's commercial real estate news and deals. Keep up the good work!” Randy McGrane, Managing Director Ensemble Investments, LLC

HOW TO ALWAYS GET THE HIGHEST PRICE FOR YOUR PROPERTY

Every property owner wants to get the highest price whenever they're selling or leasing their property. That's one of the main reasons why people own property in the first place...to maximize their returns and the money they make while owning the property. With this in mind it's interesting to observe some owners doing things that are in direct conflict with what will have them receive the most amount of money for their property. When selling or leasing your property, the way to maximize the amount of money you receive for it is to get the word out to the greatest number of people who would be interested in it. Yet there are property owners who prefer not tell many people about their property, and they end up just putting their own sign on it. Or even worse they won't even put a sign on it, and they won't advertise it anywhere either. This approach almost guarantees you receiving considerably less money for your property, as compared with if you instead did what would maximize its exposure to the kind of people who would be interested in it. The most–savvy investors want to buy properties that are not on the open market, because they know that's when they make their best investment purchases. They love being the only people negotiating with owners without any competitors even knowing that the property is available, because that's when they can buy property for the lowest prices. An owner simply can't receive the highest price for their property when there are many potentially interested parties who don't even know that their property is available. Think about it for a moment...If you had a used car that you wanted to sell which of the following two approaches do you think would bring you the highest price for it? 1) Placing flyers advertising the car in the mailboxes of the 10 closest houses to your own 2) Advertising the car in the used car section of the newspaper with the greatest circulation in your area Clearly the second choice is the one more likely to bring you the highest price for your car, because it has a much greater chance of reaching the people who are looking to buy a car like yours. The 10 neighbors living the closest to you may not be in the market for a car like yours, but one of them may be willing to "take it off your hands" for a price considerably less than your asking price. And in the process you might think this was the best price you could have obtained for the car. So similarly, if you don't list your property and put it on the open market when you're ready to sell or lease it, you're more likely to receive a lower price for it. There's a reason why the most successful companies and investors list their properties when making them available to the public. Because they know that the exposure their properties will receive will result in the highest price imaginable for them, and they won't be leaving any of their own money on the table at the same time.

VICTOR ALLISON’S NINE POINT, PROPERTY SPECIFIC MARKETING ACTION PLAN

It's important in marketing your property for you that we do everything that will ensure that you receive the highest price for it. That's why I've put together my Nine Point Marketing Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Not all properties can or should be marketed using the same marketing plan. Being a boutique marketing brokerage without layers of management, PRAEDIUM Advisors is able to adapt quickly and adopt effective, new marketing methods before they hit the mainstream brokerage houses. I do not take on more marketing assignments than I can effectively handle at one time ensuring my time is devoted to selling your property until the job is done. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining the highest possible sales price in the shortest possible time. 1 – PREPARE YOUR PROPERTY FOR SALE I work with you to understand your short–term and long–term real estate goals and how they will impact both the direct and network marketing tools available to us. My goal is to advise, educate, and guide you through the sales process.

• I discuss marketing and any sales confidentiality issues important to you so they can be integrated into the marketing plan.

• I identify property value enhancement opportunities that can be profitably implemented before the sale to maximize your sales price.

EXPERT VALUATION • I review current market, submarket, and financing conditions to establish a

competitive price for your property so it will sell quickly. 2 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, sales motivating, marketing materials are created to make your property stand out from competing properties and capture the attention of buyers.

• Marketing materials include high–quality digital photographs and/or video of your property.

• Two versions of marketing materials are created: a full–color Teaser Flyer for the initial contact with buyers that provides just enough information to motivate buyers to contact me for the full marketing package. The full–color Offering Memorandum contains sufficient information for a buyer to prepare a Letter of Intent. The Offering Memorandum is never push marketed ensuring I capture the contact information of interested buyers for personalized and direct follow–up conversations. A Confidentiality Agreement is used if appropriate.

• The flyer and full OM are produced in both print and .pdf formats to market your property by both direct mail and email and to adapt to buyer preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website and/or we can contract with a firm like Real Capital Markets.

3 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors and developers. The FileMaker software platform can sort the database into the sometimes exclusive investor/developer sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your property is targeted to the proper prospective investor and/or developer group. New investors/developers are added to the database each week and it is continuously updated for accuracy and relevancy. 4 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active marketing is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters and brochures used in this program dramatically enhances the effectiveness of my marketing plan. I do not sit back and wait for phone calls or emails to come in.

OutsideBrokerParticipation

I recognize the importance of working with other investment brokers on a nationwide basis. The number of prospects grows immeasurably with proper promotion to the brokerage community. I actively push your property from the outset of my marketing campaign to the investment brokerage community with full acknowledgement that they have access to buyers not in our database. Again, and unlike some of our largest competitors, I return my fellow broker's calls promptly and treat outside brokers with the utmost care and respect. I prefer split my commission if it means selling your property sooner! 5 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively market and sell your property is the Internet. Unless you have confidentiality issues I place your property on Loopnet (Premium Access Member), CoStar, and possibly Real Capital Markets and other web–based marketing venues. I also create a new web page on PRAEDIUM Advisors’ website devoted to marketing your property. This ensures your property is exposed to thousands of investors, real estate professionals and agents around the world. Additionally, I am a subscriber to several proprietary email Listservers distributing push email marketing messages to thousands of targeted subscribers. PRINT MEDIA Depending on the specific characteristics of your property I may market it in selected local and/or national print media.

SIGNAGE If appropriate I will place the largest viable clean, bright, professional For Sale sign on your property positioning it for maximum visibility and impact. 6 – INQUIRIES & SHOWINGS

• I respond to all leads and inquiries within minutes, not days. • I personally represent you at all showings and employ our seasoned salesmanship to

facilitate the optimum opportunity for a sale. • I assist buyers with financing options if needed. • I review terms of all LOIs with you and, as an experienced negotiator, I draft an

appropriate counter–offer. • I avoid dual agency representation issues in the event that a buyer does not have

their own broker representation ensuring I always negotiate in your best interest. 7 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 8 – CONTRACT & ESCROW I coordinate with the buyer and seller, their respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next marketing assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

VICTOR ALLISON’S NINE POINT, CLIENT SPECIFIC PROPERTY ACQUISITION PLAN

It's important when searching for a property for you that I do everything that will ensure that you see several properties that match your acquisition criteria. That's why I've put together my Nine Point Acquisition Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Being a boutique acquisition brokerage without layers of management, PRAEDIUM Advisors is able to adapt and react quickly assuring you are seeing multiple opportunities that match your acquisition criteria. I do not take on more acquisition assignments than I can effectively handle at one time ensuring my time is devoted to finding a property meeting your investment objectives. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining a property meeting your investment objectives. 1 – DEVELOPING AND UNDERSTANDING YOUR ACQUISITION CRITERIA I listen to you to understand your short–term and long–term real estate investment objectives and develop a specific, written Acquisition Plan with you that delineates your acquisition criteria and objectives. My goals are to find properties matching your acquisition criteria, and to advise, educate, and guide you through the acquisition process.

• I discuss any confidentiality issues important to you so they can be integrated into your acquisition plan.

• I review current market and (if appropriate) submarket conditions to assure your

expectations are realistic. 2 – BUYER REPRESENTATION AGREEMENT There are several advantages of entering into an exclusive buyer representation agreement with an experienced acquisition broker:

We enter into a written agreement wherein I am obligated to use my best efforts to locate properties that best meet your objectives with the goal of purchasing a property that closely matches your acquisition criteria. My responsibilities include:

• Notifying owners/developers/agents with properties that may match your acquisition

criteria of your acquisition criteria.

• Winnowing through they myriad of properties submitted by owners/developers/ agents and presenting only those properties that match your acquisition criteria.

• Analyzing and submitting the prospective properties in a standardized format thereby eliminating the disparity in the presentation methods of the owners/developers/agents.

• I (or your attorney) craft a Letter of Intent to acquire the target property.

• I negotiate aggressively in your best interest based on my knowledge of current

market conditions.

• I assist in locating and securing the best available financing (if necessary).

• I keep you informed of feedback from the marketplace and solicit feedback from you concerning my performance.

• You deal only with one broker thereby eliminating unsolicited inquiries from other

agents and the necessity to re–educate each new agent with your acquisition criteria.

• I endeavor compensated by the property owner or listing agent.

• Response from owners and listing agents is more positive and timely when they realize that you are a serious buyer since you have engaged a broker to identify and qualify properties for you.

• If either of us is unhappy with the other’s performance, our relationship can be

terminated upon 30 day’s notice. 3 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, motivating, marketing materials are created to make you stand out from competing buyers and capture the attention of owners/developers/agents.

• The marketing materials are produced in both print and .pdf formats to solicit properties by both direct mail and email and to adapt to seller preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website promoting your acquisition criteria.

4 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors, developers, and real estate agents. The FileMaker software platform can sort the database into the sometimes exclusive owner/developer/agent sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your acquisition criteria is targeted to those owners/developers/agents who will have properties matching your acquisition criteria. New owners/developers/agents are added to my database each week and it is continuously updated for accuracy and relevancy.

5 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active solicitation is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters, emails and brochures used in this program dramatically enhances the chances of finding a property matching your acquisition criteria. 6 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively solicit for properties is the Internet. In addition to my proprietary database I subscribe to several online, targeted email Listservers that push market to their membership (sometimes numbered in the thousands). This ensures your acquisition criteria is exposed to thousands of owners, developers, real estate professionals and agents around the world. 7 – CONTRACT NEGOTIATIONS & ESCROW

• I review terms of all LOIs with you and, as an experienced negotiator, I draft an appropriate counter–offer.

• I avoid dual agency representation issues in the event that a seller does not have their own broker representation ensuring I always negotiate in your best interest.

• I coordinate with you and seller, their agent, your respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale.

8 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next acquisition assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

“Do You Own Commercial Real Estate with a Value of $5 Million or More?”

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Without Lowering Expenses?

Of course you would so continue reading to find out about A Lucrative Tax Strategy that should be used on Almost Every Major Purchase of Commercial Real Estate according to the U.S. Treasury Dept. CHANCES ARE YOU ARE PAYING TOO MUCH IN TAXES … AND YOU ARE NOT ALONE! Thousands of commercial property owners overpay their federal income taxes every year. But, don’t blame your CPA! In order to realize the maximum benefits available under current law, the IRS requires a specialized engineering based cost analysis study. Your CPA is unlikely to be one of the 75± engineers in the US specialized in the area known as COST SEGREGATION ANALYSIS. See the IRS website http://www.irs.gov/businesses/article/0,,id=134180,00.html. The CPA and Legal Network has performed COST SEGREGATION ANALYSES over the past 22 years. Our team of CPAs, Lawyers, Cost Engineers and Valuation Experts can help you evaluate if this strategy makes sense for your company or property. The CPA and Legal Network’s detailed, No Cost, No Obligation evaluation is available for properties in all 50 states!

A few of the many types of properties benefiting from COST SEGREGATION ANALYSIS are:

• Manufacturing • Retail • Wholesale & Distribution • Restaurants • Hotels

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The many immediate, tangible benefits of COST SEGREGATION ANALYSIS include:

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Phoenix Commercial Real

Estate Deals & More

January 2010 Edition

Victor Allison

Your Phoenix Commercial Real Estate Brokerage

Specialist

602.320.6200

Selected, recent newswire articles for the metro Phoenix area dedicated to ensuring you are always on top of all the latest news and trends that may

affect your property values and that will assist you in your real estate decision–making processes.

www.praedium-advisors.com

Victor’s Insider Scoop on Fear and Learning in Entrepreneurship What’s one key difference between an employee intent upon ascending the corporate ladder of success to a corner office and any entrepreneur or employee in a company led by an innovator? One patent disparity will be their impression of what the word failure might mean to their future success. The ladder climber will view any failure they are implicated in as an impediment to their ascent. Failure is an event to be avoided at all costs by the employee. The fear resulting from this attitude is visible in their unwillingness to color outside the lines or to rock the boat lest it tip over with them visible at the helm. Talk to any group of up-the-corporate-ladder types and mention the word failure and you will detect an almost-audible gasp. A mistake or setback is often a career-stopper or, at least, a roadblock to their ascent. For these cube-dwellers, aversion to risk and don’t take a chance and play it safe attitudes are seen as an antidote to a mistake that can derail the corner office train. Yet, talk to an entrepreneur or an enlightened CEO of a company who sees innovation and creativity as part of the path to profitability and

long-term sustainability, and this person will talk positively about failure. Mistakes and setbacks are seen as an unavoidable part of the journey on the road to success. Organizations, not just individuals, learn from mistakes and failure. Boeing became a success in the passenger jet market with its workhorse, the 707, by learning from the mistakes it made with the Comet. The Comet was the first passenger jet to be extensively used in commercial air travel. By studying metal fatigue design mistakes made in the Comet that literally caused its wings to fall off in mid-flight, Boeing engineered “flex” into the wingspan of its 707. Thomas Edison, who is acknowledged as one of the last century’s most prolific inventors, is not only well known for his inventive genius but also for his many failures. Even after he had a long track record of commercial success, Edison failed miserably later in his career trying to revolutionize iron ore processing. Undaunted, he kept trying for a dozen years until he finally found success in developing this industrial process. What we can take from success stories like Edison’s and Boeing’s is that the road to success is a journey with many parts. Some are positive and productive, and some are setbacks, mistakes and failures. It is not what we lose from the setbacks that count. It is what we learn and apply from mistakes to make future endeavors successful. Dedicated To Multiplying Your Income

PS – If you are not getting the results you deserve from your antiquated brokers and are ready to thrive again give me a call at 602-320-6200. I have many innovative ideas I can implement to increase your bottom line!

BAKERY ACQUIRES PARCEL ON WEST SIDE FOR NEW FACILITY . . . SUNSTATE BUILDERS WILL B-T-S January 29, 2010 Phoenix – A company formed by principals of Café Valley Bakery in Phoenix (Larry Pohill, Ronald Ogan, partners) plans to develop a 285,000-square-foot manufacturing and distribution facility in west Phoenix. The company paid just under $4.744 million to buy a 15-acre site at the northeast corner of 71st Avenue and Buckeye Road. The seller was Chamberlain Development LLC in Tempe (Jim Chamberlain, principal). Don MacWilliam and Payson MacWilliam of Colliers International in Phoenix represented the seller. Maricopa County records show the buyer acquired the land with a $2 million downpayment. The seller carried back the remainder of the purchase price. Representatives of Café Valley declined to comment on the new manufacturing operation. Sources say Café Valley is relocating and expanding from its current manufacturing facility at 5320 W. Buckeye Road. Construction on the new plant to start in February, with opening expected around year-end. The project is being designed by Winton Architects Inc. in Phoenix. The contractor is Sun State Builders in Tempe (Chamberlain’s company). No word on construction cost or source of financing. Café Valley specializes in producing custom and frozen bakery products for club stores food service and in-store bakeries. The privately-owned company serves supermarkets, convenience stores and restaurants across the United States. Over the years, BREW has reported Chamberlain and Sun State Builders developing numerous industrial and office projects in the Phoenix area. Many of the projects were developed through build-to-suit agreements. Chamberlain still owns another 5.5 acres adjacent to the site acquired by the Café Valley principals. That land is targeted for a build-to-suit project. Get more from Pohill at (602) 278-2909. Chamberlain and Mike Forst of Sun State Builders are at (480) 894-1286. Talk to the MacWilliam brothers at (602) 222-5000.

Humana Pharmacy Solutions leasing 91 Glendale space by Carrie Watters Jan. 29, 2010 A high-end Glendale office building that opened at the tail end of the construction boom near the city's sports and entertainment district will be home to Humana Pharmacy Solutions.

The company has leased 106,418 square feet at 91 Glendale, according to Shea Properties, which opened the office complex in 2007.

Humana Pharmacy Solutions is part of Louisville-based Humana, a Fortune 100 company that is one of the nation's largest publicly traded health benefits companies.

Humana Pharmacy manages prescription plans for employers and Medicare members. In 2008, the division processed more than 201 million prescriptions, making it one of the highest-volume pharmacy benefits managers in the country, according to the company's Website.

The number of jobs created at the Glendale site is unknown. Company and city officials had no immediate comment Friday.

91 Glendale is one of several Class A office buildings that went up near Loop 101 as Glendale's sports and entertainment district developed.

Many of those offices have yet to find tenants, having opened as the economy slid into recession.

The Shea-owned project will be completely filled by Humana. It sits on 21 acres at the northeast corner of 91st and Glendale avenues, across from Westgate City Center.

A Wells Fargo-owned office building and bank branch opened on the site in 2007.

The primary building on the site got its first tenant in 2008 when VESystems, a California technology company, moved into a small portion of the building. A real-estate company followed.

With the lease to Humana, which takes up the entire building, the two smaller tenants are expected to move into garden offices on the site.

90,000-SF Office Asset is Fund's First By Amy Wolff Sorter January 21, 2010 PHOENIX-Real Estate Value Advisors LLC's $30 million REVA Catalyst Fund LLC has closed on its first acquisition, buying the 90,000-square-foot Phoenix Peak office building. The Virginia-based fund paid B units to the previous TIC owners in a transaction valued at just shy of $10 million. Steven Sadler, managing director of Real Estate Advisors Inc., tells GlobeSt.com that the building at 7310 N. 16th St. once belonged to DBSI, an Idaho TIC investment company that ran afoul of the economic downturn and its own poor management. A loan modification on the asset was closed at the same time as the acquisition, he adds, with the former TIC owners still having a piece of the asset. In this way, he goes on to say, the B unit owners will get their payout when the market rebounds. "In theory, and hopefully in practice, we can pull the building together and spend the money they don't have," Sadler explains, adding that the plan is to spend approximately $1.7 million in capital investment on the 1980s building during the next five years. "This provided a good, significant alternative for them." The building is 60% leased Lee & Associates' local office has the leasing assignment, while Hannay Investment Properties, also of Phoenix, is managing the property. Sadler says the building was a great buy because it's an attractive building with good fundamentals. The bones are good, he comments, and it has fairly easy access to Sky Harbor International Airport and major highways. "If you're looking in Squaw Peak submarket for office space," Sadler adds, "you'd include this building on the list."

While REVA Catalyst Fund is working to turn around its first acquisition, it's looking for more to buy. Sadler says the fund is looking for class B office product, measuring from 150,000 square feet to 200,000 square feet, in good locations in secondary markets, and some kind of value-add component. "What we've seen are the big players, pension funds and REITs retrenching to the tier one markets," Sadler explains. "There are a lot of superb real estate opportunities in secondary markets. We see opportunities there that we think are compelling."

CLEVELAND FIRM TAKES CONTROL OF MAIN STREET COMMONS MIXED-USE SITE IN GILBERT January 15, 2010 Gilbert – In two cash transactions totaling $7.915 million, companies formed by the Park Corp. in Cleveland, Ohio have acquired 52.4 acres at the southeast corner of Pecos Road and Val Vista Drive in Gilbert. The property previously was planned for a mixed-use project called Main Street Commons. Gilbert Growth Properties LLC, a company formed by Park Corp., paid $3.25 million to purchase 18.4 acres within Main Street Commons. The seller was Interra Main Street Commons LLC, a company formed by Interra Development in Chicago (Tom Gamsjaeger, principal). That site is approved for 170,000 sq. ft. of retail buildings. In a $4.665 million deal, Park Corp. purchased the deed to 34 acres at Main Street Commons. Marshall & Ilsley Bank was the beneficiary on that sale. That land was previously targeted for development as 600 apartment units and 200,000 sq. ft. of office space. The parcel was formerly owned by Opus West Corp., a Phoenix-based real estate developer that filed for bankruptcy protection. Opus West defaulted on a $18 million that was secured by the 34 acres. In October 2007, BREW reported Opus West paying $22.287+ million to buy the property and planning to develop the apartments and office space on the site. Also in October 2007, BREW reported Interra Development paying $14.541 million to buy the 18-acre parcel and planning to develop the retail component. Main Street Commons was expected to be modeled after the hugely successful Kierland Commons mixed-use project in northeast Phoenix. Morgan Neville of the Park Corp. says the company plans to hold the property for a few years and will pursue a mixed-use development of the highest and best use. “We think we have a great acquisition,” says Neville. “It is a fantastic location.” In the past 18

months, BREW has reported companies formed by Park Corp. investing $23.595 million to purchase 83 acres of commercial land in three parcels in the East Valley. All three properties are planned for mixed uses. Neville says Park Corp. continues to look for additional land parcels in the Valley. Park Corp. is a privately-held company formed by the Park family in Ohio (Daniel Park, Patrick Park, Kelly Park, Piper Park, members). Learn more from Neville at (480) 586-4300.

Social Security Administration to occupy Phoenix offices January 14, 2010 The U.S. General Services Administration has leased 16,623 square feet of office space at 18444 N. 25th Ave. in Phoenix.

The 15-year-lease was negotiated on behalf of the Social Security Administration, which will use the space for hearing offices. Financial terms of the deal were not disclosed.

The four-story office building is owned by WRC Phoenix One LLC of Newport Beach, Calif. The landlord was represented by CB Richard Ellis in Phoenix.

Western Maricopa Education Center pays $5.1M for new buildings January 12, 2010 Western Maricopa Education Center, known as West-MEC, has purchased two buildings at Glendale Corporate Center located on the northeast corner of 99th Avenue and Camelback Road.

West-MEC paid $5.1 million for the 42,500 square feet of space. West-MEC is a public school district that provides alternative career and technical education to 12 other districts in the state. Its current headquarters is at 49th Avenue and Indian School Road, but the district plans to move in mid-2010.

West-MEC was represented by Justin Miller of Grubb & Ellis/BRE Commercial LLC in the transaction. CB Richard Ellis represented the seller Glendale Corporate Center Acquisition LLC of Newport Beach, Calif.

Glendale Corporate Center is located near Westgate City Center and the University of Phoenix stadium.

Morgan Park sells for $18.5M January 13, 2010 An apartment complex adjacent to the Metro light rail line has sold for $18.5 million.

The 428-unit Morgan Park apartment community was purchased by Northwind Properties Ltd. of San Jose, utilizing seller financing. The transaction was announced by Colliers International of Phoenix which represented the seller, an unidentified southern California-based fund manager.

The seller provided a $10 million loan, or 54 percent of the purchase price.

“This was a very smooth transaction, which closed within 13 days of the signed purchase agreement,” said Cindy Cooke, senior vice president of Colliers who co-listed the property with Colliers Vice President Brad Cooke.

Morgan Park, which is located at 19th Avenue and Dunlap Road, was 90 percent occupied at the time of closing.

Apollo Animal Hospital Sells for $1.4M Sale/Leaseback in Glendale By Brett Wyatt January 8, 2010 The Apollo Animal Hospital sold its facility at 10707 N. 51st Ave. in Glendale, AZ, to private investors for $1.47 million, or about $230 per square foot. The 6,441-square-foot building was constructed in 1985 in the Northwest Phoenix submarket. The Apollo Animal Hospital will continue to occupy the subject property on a lease term of 10 years. Ann Sondrol of Grubb & Ellis/BRE Commercial LLC represented both sides of the transaction. See CoStar COMPS # 1842298 for further details.

Pacifica Acquires Goodyear Office Bldg. Property in Palm Valley Office Park Trades for $6.4M By Brett Wyatt January 8, 2010 SunCor Development Co. sold the office building at 1626 N. Litchfield Road in Goodyear, AZ, to Pacifica Real Estate Group for $6.4 million, or about $105 per square foot. The three-story, 60,438-square-foot office building delivered in 2007, and is part of the Palm Valley Office Park. It was 65 percent occupied at the time of sale. Stanton Shafer and Jeffrey Hartland of Grubb & Ellis/BRE Commercial, as well as Mark Seale and Chris Krewson of Lee & Associates, represented the buyer and the seller. Please see CoStar COMPS #1842119 for further details.

Morgan Park Sells for $18.5M Phoenix Multifamily Property Finds an Investor By Emily Baker January 13, 2010 Northwind Properties purchased the Morgan Park apartment community in Phoenix for $18.5 million, or approximately $43,200 per unit. The 428-unit multifamily complex at 8902 N. 19th Ave. is 90 percent occupied and is in a highly desirable location at 19th & Dunlap Road. Built in 1987, Morgan Park had a $3.2 million renovation done in 2007. It sits on 12 acres. Cindy Cooke, Brad Cooke, Carrie Burton and Nick Eggert of Colliers International Phoenix represented the seller, Mesa West Capital. The buyer had no representation. For more information on this transaction, please see CoStar COMPS #1847660.

Western Maricopa Education Center pays $5.1M for new

buildings January 12, 2010 Western Maricopa Education Center, known as West-MEC, has purchased two buildings at Glendale Corporate Center located on the northeast corner of 99th Avenue and Camelback Road.

West-MEC paid $5.1 million for the 42,500 square feet of space. West-MEC is a public school district that provides alternative career and technical education to 12 other districts in the state. Its current headquarters is at 49th Avenue and Indian School Road, but the district plans to move in mid-2010.

West-MEC was represented by Justin Miller of Grubb & Ellis/BRE Commercial LLC in the transaction. CB Richard Ellis represented the seller Glendale Corporate Center Acquisition LLC of Newport Beach, Calif.

Glendale Corporate Center is located near Westgate City Center and the University of Phoenix stadium.

WALTON INTERNATIONAL PAYS $10.5 MILLION FOR INDUSTRIAL PARK IN ELOY January 8, 2010 Eloy – A company formed by Walton International Group (USA) Inc. in Scottsdale (William Doherty, pres.) paid $10.494 million to acquire a 277-acre industrial park in Eloy. The seller was an investment group, including Bill Lund of Paradise Valley. Bob Crum of Ross Brown Partners in Scottsdale represented the seller. Jeremy Lovejoy of Insight Land & Investments in Phoenix worked on behalf of the buyer. The fully improved property, called Sunshine Industrial Park, is at the northeast corner of Interstate 10 and Sunshine Road. Tim Terrill of Walton International says the company expects to hold the land for three to five years before selling parcels to users and developers. Lund’s group previously sold a 103-acre tract at Sunshine Industrial Park to National Gypsum Co., a manufacturer of building and construction materials. National Gypsum intends to install a spur to access Union Pacific Railroad. Walton Inetrnational will have rights to the spur and may make its portion of the industrial park rail-served. With the acquisition from Lund’s company, Walton International now controls more than 9,500 acres in Pinal County. Most of that land is located along the I-10 corridor in Eloy and Coolidge. The company also has an interest in 750 acres in Buckeye. Last September, BREW reported Walton Inetrnational paying $9.395+ million to buy 596 (net) acres in a planned community in Buckeye called Monte Verde. The land is targeted for 2,100 single-family and multi-family residences. The other 150 acres the company owns in Buckeye is also planned for residential use. Both parcels will eventually be sold to multiple home builders. Walton International is interested in buying additional parcels in Maricopa and Pinal counties . . . prefers tracts in the west valley, southeast valley and Pinal County. Walton International, which specializes in land banking, has headquarters in Calgary, Alberta, Canada. The privately-owned company also has offices in Asia,

Europe and a U.S. headquarters in Scottsdale. Walton International currently has 50,000+ acres under its management. Mike Koch is the contact at Walton International . . . reach him and Terrill by calling (602) 264-1298. Talk to Crum at (480) 362-9521. Lovejoy is at (602) 385-1515.

NO. CALIF.- BASED INVESTOR BUYS MORGAN PARK APARTMENTS FOR 18.5 MILLION January 8, 2010 Phoenix – Morgan Park L.P., a limited partnership formed by Northwind Properties in San Jose, Calif. (John Bovone, principal), paid $18.5 million ($43, 224 per unit) to acquire the 428-unit Morgan Park apartments at 8902 N. 19th Avenue in Phoenix. The seller was SAV III, LLC in Los Angeles, Calif. That company was formed by Mesa West Capital, a San Jose-based lender that foreclosed on the property last year. Morgan Park is the first apartment community that Northwind Properties has acquired in the Valley. The privately-held company owns mobile home parks in Peoria and Yuma. Bovone says Northwind Properties is interested in buying apartment and mobile home/manufactured housing communities in Arizona. Companies formed by Bovone own mobile home projects in five states, and multiple apartment complexes in San Jose. In September 2008, BREW reported Mesa West Capital scheduling a trustee’s sale on a $26.3 million loan that was secured Morgan Park. In June 2006, BREW reported Atherton-Newport Investments LLC in Irvine, Calif. paying $28.8 million ($67,290 per unit) to purchase Morgan Park. Atherton-Newport filed for bankruptcy protection in 2008, and eventually lost several multi-family properties to foreclosure. Find out more from Bovone by calling (408) 977-0707, ext. 103. The phone number at Mesa West Capital is (310) 806-6300.

HSL Begins New Year With $16M Buy By Amy Wolff Sorter January 6, 2010 SCOTTSDALE, AZ-HSL Properties Inc. closed on the 264-unit Casa Santa Fe, paying $16 million to seller Fairfield Residential LLC, which recently declared Chapter 11. The Tucson-based buyer plans to close on the asset's neighbor, Cabrillo Apartments. also owned by Fairfield, later this month. HSL Properties' executive vice president Omar Mireles explains that the transaction was a short sale. Principal Life had a loan on it, he adds, and was operating it on a deed in lieu of foreclosure. He tells GlobeSt.com that cash was used to buy the complex at 11105 N. 11th St., though HSL Properties will seek financing after closing on Cabrillo Apartments. "This is a 1987 build," he comments. "It's a little older than what we typically like, but had been renovated." The majority of the complex, in fact, had been renovated during the early to mid 2000s in anticipation of conversion to condominiums. However, when San Diego-based Fairfield Residential acquired the asset from Jackson Properties for $30 million in 2006, the condo craze had passed. During its ownership stint, Fairfield did its own upgrades to the complex, with the result ending up a "B-plus asset, from the standpoint of the age," Mireles points out. "This was very well-maintained, which is typical of a Fairfield product." Casa Santa Fe is 91% occupied, and has one-, two- and three-bedroom units, measuring from 652 square feet to 1,158 square feet. Eastdill Secured brokered the transaction on behalf of Fairfield, while HSL was self-represented. Mireles says the Casa Santa Fe buy is the first transaction of what is likely to be an

active acquisition year for HSL Properties. Though there are no specific unit acquisition goals for 2010, Mireles says he'd be happy to see a few thousand more units tucked away into the company's portfolio. "We're absolutely looking to widen our footprint in Phoenix and Tucson," he adds. "There is quite a bit of opportunity brewing out there, and we're very interested in moving forward."

Village Square II Sells for $14.5M Macerich Co. Sells 134,000-SF Shopping Center in Phoenix By Dale Zavodsky January 6, 2010 Lynn Morrison LLC, a Tucson-based commercial real estate leasing and property management company, acquired the Village Square II retail center in Phoenix from The Macerich Co. for $14.5 million, or $108 per square foot. The 134,142-square-foot shopping center was constructed in 1978 at 4573-4669 E. Cactus Road. Tenants include Big 5 Sporting Goods and Honeybaked Ham Co. Ryan Schubert and Michael Hackett of Grubb & Ellis|BRE Phoenix represented the buyer, while Christopher Hoffmann and Rikki Keating of Eastdil Secured represented the seller. Please see CoStar COMPS #1830888 for more information on this transaction.

Healthcare Trust Closes on 641,000 SF By Amy Wolff Sorter January 5, 2010 SUN CITY, AZ-Healthcare Trust of America Inc. started out the new year with a bang, paying $107 million to Roskamp Management Co. LLC for its 17-asset medical office building portfolio. The properties were developed during the early 2000s in connection with Banner Boswell Medical Center and Banner Del E. Webb Medical Center, and 95% of the portfolio is located on these campuses. The portfolio is 92% leased, with approximately 28% of the collection being leased by Banner Health and affiliates. ""These assets provide stability and growth potential," commented Scott D. Peters, Healthcare Trust's CEO and president in a statement describing the transaction."This transaction represents another key step in our acquisition of large, high-quality medical office portfolios associated with high-quality healthcare providers." Calls to Scottsdale, AZ-based Healthcare Trust and Roskamp Management in Sarasota, FL were not returned by deadline. Royal Oak Plaza The medical office properties serving Banner Boswell Medical Center are Boswell Medical Plaza at 10615 W. Thunderbird Blvd.; Boswell West Medical Office Building at 10503 W. Thunderbird Blvd.; CIGNA Healthcare of Arizona at 13041 N. Del Webb Blvd.; Coggins Building at 10448 W. Coggins Ave.; Sun City Eye Institute at 10541 W. Thunderbird Blvd.; the Lakes Club at 10484 W Thunderbird Blvd.; Lakes Medical Plaza at 10474 W. Thunderbird Blvd.; Lakes Medical Plaza II at 10494 W. Thunderbird Blvd.; Lakeview Medical Arts Center at 13000 N. 103rd Ave.; Lakeview Plaza Centre at 13050 N. 103rd Ave.; Royal Oak Plaza at 13203 N. 103rd Ave.; Royal Oak Professional Building at 10211 W. Thunderbird Blvd. and the Sun City Cardiac Center at 10415 W. Thunderbird Blvd.

Meanwhile, in Sun City West, medical office buildings affiliated with Banner Del E. Webb Medical Center are Granite Valley Medical Office Building I at 14506 W. Granite Valley Dr.; Mountain View Medical Plaza I at 14510 W. Shumway Dr.; Sun City West Medical Arts Center at 14300 W. Granite Valley Dr.; and Webb Medical Plaza, at 14418-144420 W. Meeker Blvd.

Phoenix La Quinta Inn Trades for $4.5M Hotel Changes Hands in REO Transaction By David Whitmore January 4, 2010 In an REO sale, Pride Hospitality Inc. purchased the La Quinta Inn & Suites in Phoenix from UPS Capital - Business Credit for $4.48 million, or approximately $68,000 per room. The 36,500-square-foot hotel at 4929 W. McDowell Road was built in 2006 and consists of 66 rooms, including 37 doubles, 17 singles, and 12 suites. Features include a business center, fitness center and pool. No brokers were involved in the transaction. Please reference CoStar COMPS #1837126 for more information.

ALR Enters PHX Metro with 204-Unit Buy By Amy Wolff Sorter December 31, 2009 AVONDALE, AZ-After tracking the Phoenix metro market for years, Adams LaSalle Realty has struck with its buy of the 204-unit Newport Apartments. The Chicago company acquired the class B complex from American Investment and Management Co. for north of $8 million, with plans to make interior and common upgrades. "We liked that this was the leading (class) B asset in its submarket, and it has a nice niche on which we think we can improve," comments Adams LaSalle principal Tim Burns. Burns tells GlobeSt.com that Adams LaSalle will have a hands-on approach toward managing the complex at 1333 N. Dysart Rd. Adams LaSalle acquired the seven-acre, 17-building complex with cash, and will seek financing during the early part of 2010. Apartment Realty Advisors' Phoenix office represented Denver-based AIMCO in the transaction, while the buyer was self-represented. The asset has one- and two-bedroom units ranging in size from 408 square feet to 844 square feet. Rents are between $439 and $634 a month. Burns explains that Adams LaSalle had been interested in the metro market for several years, but it didn't make sense because of wildly inflated pricing. Now, with prices coming into more reasonable ranges, it's time to focus on more product. "This is one of our target markets," Burns acknowledges. "We're looking at Newport Apartments as the first of many buys." The sweet spot for this company is similar properties with a light value-add component, though Burns says Adams LaSalle will look at any prospect that makes good financial sense.

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“I read the Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More newsletters from “cover to cover” each month. The newsletters help me to focus on client projects that are or will be changing to meet the current real estate market. Knowing what is successfully being completed helps to plan future projects. I have recommended your newsletter to my associates and my clients. My associates need to be up to date on developments that may affect current or future projects. My clients benefit from knowing information on real estate transactions, so they can then plan their acquisitions accordingly. I will continue to watch the newsletter, to be better informed, when a real estate deal that I want to invest in presents itself. Current and, factual information in the newsletter will affect my future acquisitions. Thank you Victor.” Allan R. Converse Principal TeamConverse LLC

“Victor Allison is the personification of what a good broker ought to be. Knowledgeable in the market area, flexible, creative and tenacious. Whether it was finding tenants or marketing a shopping center Praedium was responsive and honest…” Jack Walker, President English & Continental Properties

“Victor Allison & Praedium Advisors' monthly newsletter is an invaluable source of news and intelligence on the Phoenix commercial real estate market. I highly value my subscription to Praedium Advisors' publications (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More) because they save me so much time and trouble: Praedium researches and publishes all the important news and the most important transactions in Phoenix commercial real estate. Many thanks to Victor Allison and Praedium Advisors for their extremely valuable and informative monthly newsletters (Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More). These are the two most important sources of news and information that I read. These newsletters contain important details about the people and companies doing all the different deals in Phoenix. I can quickly know what is going on, where it is going on and who is doing it. This is the most up to date information on commercial deals deals going on all across the Phoenix market. It is useful for investors, developers, brokers and all the businesses related to same. Many thanks, Victor.” Ken Yamaguchi, Southwest Regional Director SCI Real Estate Investments, LLC

“We wholeheartedly endorse Victor as one of the most accomplished brokers we have worked with in our 30 years of collective experience. Victor is by far the most responsive broker we work with. He is always a step ahead in terms of gathering information to get a transaction done. Victor is thorough, prompt and reliable.” Francesca Godi and Marino Godi, Principals The Godi Group

“As usual it was a pleasure to get your market news—you know I'm not as active as I once was, and simply don't get out and keep my finger on the pulse of things. Getting your e-mails helps give me a "feel" of the market. Keep up the good work.” Charles “Chuck” Winslow, President Winslow Enterprises, Ltd.

“Phoenix Commercial Real Estate News & More and Phoenix Commercial Real Estate Deals & More help us to keep up to date with Phoenix's marketplace. With all the negative press today, it's helpful to see what's really going on from a real estate professional's prospective.” Jerry Turboff, President Prime Capital Corp.

“I have known, and worked with Victor Allison, for many years. In all of our real estate dealings he has handled them very professionally, and promptly, which makes him a pleasure to work with. A man of the highest of integrity. If Victor tells me something, I can "bank it". What more could a person ask for?” Charles E. “Chuck” Winslow Winslow Enterprises

“I look forward to reading Victor's monthly newsletters. The comprehensive summary of transactions and market news helps our group stay on top of current market conditions. They have been a valuable resource.” Mike Demko, Partner Demko Investment Group, LLC

“Your monthly newsletter is fantastic because it’s timely & comprehensive and in turn offers me an accurate snapshot of what’s happening in the market. I look forward to it every month!” Joe Holeva, Member MH Devco/Mohawk Ranch Ph 2/Avondale Business Park

“I love the insight that your newsletter provides our company. I look forward to the next edition.” Spike Lawrence, Partner Lawrence & Geyser Development

“I really look forward to receiving your newsletters every month. They're an invaluable service that keeps me on top of Phoenix's commercial real estate news and deals. Keep up the good work!” Randy McGrane, Managing Director Ensemble Investments, LLC

HOW TO ALWAYS GET THE HIGHEST PRICE FOR YOUR PROPERTY

Every property owner wants to get the highest price whenever they're selling or leasing their property. That's one of the main reasons why people own property in the first place...to maximize their returns and the money they make while owning the property. With this in mind it's interesting to observe some owners doing things that are in direct conflict with what will have them receive the most amount of money for their property. When selling or leasing your property, the way to maximize the amount of money you receive for it is to get the word out to the greatest number of people who would be interested in it. Yet there are property owners who prefer not tell many people about their property, and they end up just putting their own sign on it. Or even worse they won't even put a sign on it, and they won't advertise it anywhere either. This approach almost guarantees you receiving considerably less money for your property, as compared with if you instead did what would maximize its exposure to the kind of people who would be interested in it. The most–savvy investors want to buy properties that are not on the open market, because they know that's when they make their best investment purchases. They love being the only people negotiating with owners without any competitors even knowing that the property is available, because that's when they can buy property for the lowest prices. An owner simply can't receive the highest price for their property when there are many potentially interested parties who don't even know that their property is available. Think about it for a moment...If you had a used car that you wanted to sell which of the following two approaches do you think would bring you the highest price for it? 1) Placing flyers advertising the car in the mailboxes of the 10 closest houses to your own 2) Advertising the car in the used car section of the newspaper with the greatest circulation in your area Clearly the second choice is the one more likely to bring you the highest price for your car, because it has a much greater chance of reaching the people who are looking to buy a car like yours. The 10 neighbors living the closest to you may not be in the market for a car like yours, but one of them may be willing to "take it off your hands" for a price considerably less than your asking price. And in the process you might think this was the best price you could have obtained for the car. So similarly, if you don't list your property and put it on the open market when you're ready to sell or lease it, you're more likely to receive a lower price for it. There's a reason why the most successful companies and investors list their properties when making them available to the public. Because they know that the exposure their properties will receive will result in the highest price imaginable for them, and they won't be leaving any of their own money on the table at the same time.

VICTOR ALLISON’S NINE POINT, PROPERTY SPECIFIC MARKETING ACTION PLAN

It's important in marketing your property for you that we do everything that will ensure that you receive the highest price for it. That's why I've put together my Nine Point Marketing Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Not all properties can or should be marketed using the same marketing plan. Being a boutique marketing brokerage without layers of management, PRAEDIUM Advisors is able to adapt quickly and adopt effective, new marketing methods before they hit the mainstream brokerage houses. I do not take on more marketing assignments than I can effectively handle at one time ensuring my time is devoted to selling your property until the job is done. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining the highest possible sales price in the shortest possible time. 1 – PREPARE YOUR PROPERTY FOR SALE I work with you to understand your short–term and long–term real estate goals and how they will impact both the direct and network marketing tools available to us. My goal is to advise, educate, and guide you through the sales process.

• I discuss marketing and any sales confidentiality issues important to you so they can be integrated into the marketing plan.

• I identify property value enhancement opportunities that can be profitably implemented before the sale to maximize your sales price.

EXPERT VALUATION • I review current market, submarket, and financing conditions to establish a

competitive price for your property so it will sell quickly. 2 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, sales motivating, marketing materials are created to make your property stand out from competing properties and capture the attention of buyers.

• Marketing materials include high–quality digital photographs and/or video of your property.

• Two versions of marketing materials are created: a full–color Teaser Flyer for the initial contact with buyers that provides just enough information to motivate buyers to contact me for the full marketing package. The full–color Offering Memorandum contains sufficient information for a buyer to prepare a Letter of Intent. The Offering Memorandum is never push marketed ensuring I capture the contact information of interested buyers for personalized and direct follow–up conversations. A Confidentiality Agreement is used if appropriate.

• The flyer and full OM are produced in both print and .pdf formats to market your property by both direct mail and email and to adapt to buyer preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website and/or we can contract with a firm like Real Capital Markets.

3 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors and developers. The FileMaker software platform can sort the database into the sometimes exclusive investor/developer sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your property is targeted to the proper prospective investor and/or developer group. New investors/developers are added to the database each week and it is continuously updated for accuracy and relevancy. 4 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active marketing is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters and brochures used in this program dramatically enhances the effectiveness of my marketing plan. I do not sit back and wait for phone calls or emails to come in.

OutsideBrokerParticipation

I recognize the importance of working with other investment brokers on a nationwide basis. The number of prospects grows immeasurably with proper promotion to the brokerage community. I actively push your property from the outset of my marketing campaign to the investment brokerage community with full acknowledgement that they have access to buyers not in our database. Again, and unlike some of our largest competitors, I return my fellow broker's calls promptly and treat outside brokers with the utmost care and respect. I prefer split my commission if it means selling your property sooner! 5 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively market and sell your property is the Internet. Unless you have confidentiality issues I place your property on Loopnet (Premium Access Member), CoStar, and possibly Real Capital Markets and other web–based marketing venues. I also create a new web page on PRAEDIUM Advisors’ website devoted to marketing your property. This ensures your property is exposed to thousands of investors, real estate professionals and agents around the world. Additionally, I am a subscriber to several proprietary email Listservers distributing push email marketing messages to thousands of targeted subscribers. PRINT MEDIA Depending on the specific characteristics of your property I may market it in selected local and/or national print media.

SIGNAGE If appropriate I will place the largest viable clean, bright, professional For Sale sign on your property positioning it for maximum visibility and impact. 6 – INQUIRIES & SHOWINGS

• I respond to all leads and inquiries within minutes, not days. • I personally represent you at all showings and employ our seasoned salesmanship to

facilitate the optimum opportunity for a sale. • I assist buyers with financing options if needed. • I review terms of all LOIs with you and, as an experienced negotiator, I draft an

appropriate counter–offer. • I avoid dual agency representation issues in the event that a buyer does not have

their own broker representation ensuring I always negotiate in your best interest. 7 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 8 – CONTRACT & ESCROW I coordinate with the buyer and seller, their respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next marketing assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

VICTOR ALLISON’S NINE POINT, CLIENT SPECIFIC PROPERTY ACQUISITION PLAN

It's important when searching for a property for you that I do everything that will ensure that you see several properties that match your acquisition criteria. That's why I've put together my Nine Point Acquisition Plan. The real estate marketplace is in continuous flux requiring creativity, diligence, and nimbleness to make deals happen. Being a boutique acquisition brokerage without layers of management, PRAEDIUM Advisors is able to adapt and react quickly assuring you are seeing multiple opportunities that match your acquisition criteria. I do not take on more acquisition assignments than I can effectively handle at one time ensuring my time is devoted to finding a property meeting your investment objectives. With over 22 years of experience I have the talent and dedication necessary to achieve your goal of obtaining a property meeting your investment objectives. 1 – DEVELOPING AND UNDERSTANDING YOUR ACQUISITION CRITERIA I listen to you to understand your short–term and long–term real estate investment objectives and develop a specific, written Acquisition Plan with you that delineates your acquisition criteria and objectives. My goals are to find properties matching your acquisition criteria, and to advise, educate, and guide you through the acquisition process.

• I discuss any confidentiality issues important to you so they can be integrated into your acquisition plan.

• I review current market and (if appropriate) submarket conditions to assure your

expectations are realistic. 2 – BUYER REPRESENTATION AGREEMENT There are several advantages of entering into an exclusive buyer representation agreement with an experienced acquisition broker:

We enter into a written agreement wherein I am obligated to use my best efforts to locate properties that best meet your objectives with the goal of purchasing a property that closely matches your acquisition criteria. My responsibilities include:

• Notifying owners/developers/agents with properties that may match your acquisition

criteria of your acquisition criteria.

• Winnowing through they myriad of properties submitted by owners/developers/ agents and presenting only those properties that match your acquisition criteria.

• Analyzing and submitting the prospective properties in a standardized format thereby eliminating the disparity in the presentation methods of the owners/developers/agents.

• I (or your attorney) craft a Letter of Intent to acquire the target property.

• I negotiate aggressively in your best interest based on my knowledge of current

market conditions.

• I assist in locating and securing the best available financing (if necessary).

• I keep you informed of feedback from the marketplace and solicit feedback from you concerning my performance.

• You deal only with one broker thereby eliminating unsolicited inquiries from other

agents and the necessity to re–educate each new agent with your acquisition criteria.

• I endeavor compensated by the property owner or listing agent.

• Response from owners and listing agents is more positive and timely when they realize that you are a serious buyer since you have engaged a broker to identify and qualify properties for you.

• If either of us is unhappy with the other’s performance, our relationship can be

terminated upon 30 day’s notice. 3 – MARKETING MATERIALS PRINT & ON–LINE

• High-Impact, motivating, marketing materials are created to make you stand out from competing buyers and capture the attention of owners/developers/agents.

• The marketing materials are produced in both print and .pdf formats to solicit properties by both direct mail and email and to adapt to seller preferences.

• If appropriate, a dedicated web page can be added to the PRAEDIUM Advisors’ website promoting your acquisition criteria.

4 – ENORMOUS MARKETING DATABASE I have created and maintain a proprietary database of active investors, developers, and real estate agents. The FileMaker software platform can sort the database into the sometimes exclusive owner/developer/agent sub–categories of Industrial, Office, Retail, Land, and Multi–Family to ensure your acquisition criteria is targeted to those owners/developers/agents who will have properties matching your acquisition criteria. New owners/developers/agents are added to my database each week and it is continuously updated for accuracy and relevancy.

5 – ACTIVE PUSH MARKETING DIRECT MAIL & ON–LINE Active solicitation is the most effective. A database–generated, targeted marketing campaign is conducted via email and direct mail and coupled with follow–up phone calls or face–to–face meetings when possible. The campaign is repeated and/or modified at appropriate intervals. The combination of personal calls, letters, emails and brochures used in this program dramatically enhances the chances of finding a property matching your acquisition criteria. 6 – PASSIVE MARKETING ON–LINE Perhaps the most important tool that I am very adept at using to effectively solicit for properties is the Internet. In addition to my proprietary database I subscribe to several online, targeted email Listservers that push market to their membership (sometimes numbered in the thousands). This ensures your acquisition criteria is exposed to thousands of owners, developers, real estate professionals and agents around the world. 7 – CONTRACT NEGOTIATIONS & ESCROW

• I review terms of all LOIs with you and, as an experienced negotiator, I draft an appropriate counter–offer.

• I avoid dual agency representation issues in the event that a seller does not have their own broker representation ensuring I always negotiate in your best interest.

• I coordinate with you and seller, their agent, your respective attorneys, the escrow company, the lender, and consultants during contract negotiations and the closing process to ensure a successful, stress–free sale.

8 – STATUS REPORTS I communicate with you weekly regarding my marketing activities and results and discuss recommendations for any changes in the marketing program. I am always open to new ideas and suggestions from my clients. RETURN PHONE CALL GUARANTEE I return your phone calls within 8 business hours or I pay you $100 no questions asked. 9 – POST–CLOSING I have a detailed conversation with you to determine what I did right and, more importantly, what could I do better with your next acquisition assignment.

Victor H. Allison President & Designated Broker To schedule your initial consultation you can contact me

• By phone at 602.320.6200 • By email at victora@praedium-advisors.com • By fax at 602.445.9301

“Do You Own Commercial Real Estate with a Value of $5 Million or More?”

Would You Like to Increase Your Cash Flow Without Raising Rents and

Without Lowering Expenses?

Of course you would so continue reading to find out about A Lucrative Tax Strategy that should be used on Almost Every Major Purchase of Commercial Real Estate according to the U.S. Treasury Dept. CHANCES ARE YOU ARE PAYING TOO MUCH IN TAXES … AND YOU ARE NOT ALONE! Thousands of commercial property owners overpay their federal income taxes every year. But, don’t blame your CPA! In order to realize the maximum benefits available under current law, the IRS requires a specialized engineering based cost analysis study. Your CPA is unlikely to be one of the 75± engineers in the US specialized in the area known as COST SEGREGATION ANALYSIS. See the IRS website http://www.irs.gov/businesses/article/0,,id=134180,00.html. The CPA and Legal Network has performed COST SEGREGATION ANALYSES over the past 22 years. Our team of CPAs, Lawyers, Cost Engineers and Valuation Experts can help you evaluate if this strategy makes sense for your company or property. The CPA and Legal Network’s detailed, No Cost, No Obligation evaluation is available for properties in all 50 states!

A few of the many types of properties benefiting from COST SEGREGATION ANALYSIS are:

• Manufacturing • Retail • Wholesale & Distribution • Restaurants • Hotels

• Resorts • Office Buildings • Medical Complexes • Food Processing • And more

The many immediate, tangible benefits of COST SEGREGATION ANALYSIS include:

• REDUCED UPFRONT INCOME TAXES • ABILITY TO ACQUIRE LOANS MORE EASILY • LOWER PROPERTY TAXES IN SOME STATES

• INCREASED CASH FLOW • LOWER INSURANCE PREMIUMS • EASIER TO FACILITATE 1031 EXCHANGES • MAXIMIZED ANNUAL TAX DEPRECIATION

• RELEASES YOUR TRAPPED DEPRECIATION AND TURNS IT INTO CASH NOW! Call Victor Allison today at 602.320.6200 to tap into the Hidden Reservoir of Cash in your Commercial Property! If you own any type of depreciable Commercial Property with a value of $5 million or more, you may be entitled to these types of benefits. Examples: (i) A Medical Office with a $5,000,000 Basis could realize $1,168,401 in accelerated depreciation saving $467,360 in taxes over six years, and (ii) The CPA and Legal Network recently helped a client realize $1,340,000 of tax benefits on their properties.

3 Point 100% Guarantee:

1. You pay nothing until you see what tax saving benefits you are likely to realize using cost segregation.

2. Your cost segregation study will be done in accordance with the IRS ATG, Audit Techniques Guide.

3. The CPA and Legal Network will back you and your CPA in the event of an audit and fully explain the cost segregation procedure used on your property to the IRS.

Clients Served Include: Cinergy Corp Starbucks Coffee Co. Dayton Power & Light Wells Fargo Chevron

Pacific Gas & Electric Hyatt Hotels Duquesne Energy Bank One Kroger

Harris Ranch General Growth Propeties First Energy Northern Trust Bank Texas-New Mexico Power

Call Victor Allison now at 602.320.6200 for a NO COST, NO OBLIGATION evaluation of your property. This limited time offer is available for properties in all 50 states. It’s your money. What would you rather do: send it to the US Treasury, or use it to grow your business?