East Valley project featuring 2-story Starbucks breaks ground; 8 more real estate deals to know
The Phoenix Business Journal highlights The Joint's expansion into Puerto Rico in an article on recent commercial real estate ventures in the area.
Original article published by Phoenix Business Journal on April 13, 2023 on BizJournals.com/Phoenix
By Staff - Phoenix Business Journal
Scottsdale-based developer Diversified Partners broke ground on Mercy Center — a $125 million mixed-use development on the southeast corner of Val Vista Drive and Mercy Road in Gilbert.
A regional headquarters for Bell Bank, a five-story Residence Inn by Marriott, a Homewood Suites Hotel by Hilton, a two-story multi-tenant office-retail building, a 7-Eleven fueling station and free-standing Chipotle Mexican Grill are all planned for Mercy Center, which will have the address of 3635 S. Val Vista Drive.
The two-story building will have Starbucks operating on both floors. Gallery Nails, Nautical Bowls, Live Hydration Spa, Prizm Dental, Singh Dhillon Pediatric Dentistry and Willow Midwife are among the other tenants that have hopped on board.
DIVERSIFIED PARTNERS
Walt Brown, CEO and designated broker for Diversified Partners, told the Phoenix Business Journal last month that Mercy Center will about take 12 months to complete.
Valley firms Sigma Contracting and Upward Architects are the respective general contractor and architect for the project. Rick Engineering Co. is the civil engineer.
East Valley, multi-phased industrial project moves forward
Chicago-based Clarius Partners completed construction on phase one of Chandler Airpark Technology Center, which is a 26.29-acre industrial development located on the southwest corner of Gilbert and Ryan roads in Chandler.
Phase one includes two buildings that are 130,570 square feet and 97,130 square feet in size. Construction on the second phase is underway, which will bring another 200,000 square feet across two buildings. Clarius expects to deliver the second phase in November.
Valley firms LGE Design Build and LGE Design Group, respectively, are the project's general contractor and architect. JLL's Steve Larsen, Bill Honsaker and Hagen Hyatt are the listing brokers, according to a marketing brochure for the property.
“Activity in the Chandler submarket is incredibly strong, with numerous proposals received, and several leases at the one yard line," said Scott Duncan, Clarius' senior vice president, in a statement.
Mesa building trades hands
The Southern Sunset Plaza in Mesa has been acquired by a California joint venture. The 200,000-square-foot mixed-use building at 1250 S. Country Club Dr. commanded a price of $30 million from the seller, Manitoba,Canada-based IntouchCX — and previously known as 24-7 Intouch — is also a tenant in the building along with Banner Health and Carrington College. IntouchCX occupies more than half of the office space and Banner Health operates a 21,000-square-foot medical clinic.
ITEC Financial Inc., South Coast Properties Investments LLC. and InfoTech Analytics make up the joint venture that purchased the building.
Colliers International Arizona's Mindy Korth and JK Jackson brokered the sale. The office was built in 1973 and was 86% occupied at the time of the sale.
Financing secured for Glendale industrial park
Echo Real Estate Capital Inc. and Grandview Partners have secured $53 million in financing for a new industrial facility totaling 676,169 square feet in the Glendale area.
The new project, called Northern Parkway Logistics Center, will include a rear-load building that's 220,240 square feet and a 455,935-square-foot cross dock building across nearly 40 acres at the northeast corner of Reems Road and Olive Avenue near the Loop 303.
The facility, previously called Echo Park 303, procured $53.55 million in construction financing for the facility from lender PCCP LLC, according to Cushman & Wakefield.
Rob Rubano, Brian Share, Max Schafer and Michael Gianesella of Cushman's equity, debt and structured finance team represented the borrower in the transaction. Will Strong, Kirk Kuller, Micki Strain and Molly Hunt of Cushman also provided market advisory.
“Capital markets are choppy, but debt capital remains available for the right projects,” said Share, executive managing director, EDSF with Cushman, in a statement. “Northern Parkway represents the best of what lenders want today: a quality project and location in a market with strong fundamentals, solid underwriting metrics, and experienced sponsorship.”
The new facility will include 32-foot to 40-foot clear heights, loading and trailer parking, fully gated and secured concrete truck courts, power and ample parking. The general contractor is LGE Design Build.
Industrial building sells in off-market transaction
A distribution center has sold for $20 million in cash in an off-market sale in the Tolleson area.
The warehouse is located at 705 S. 94th Ave. and was acquired by Silver Rafter D5 LLC, a private investor based in California.
It was sold as a sale-leaseback to CorLiving Inc., a home furnishing company, which has occupied the building for nearly a decade. Mike Ciosek and Eric Bell of Kidder Mathews represented CorLiving in the sale.
Industrial sales have continued at a slower pace this year compared to the start of the year in 2022 with several acquisitions of distribution centers across the Valley.
Recently, Chicago-based CRG sold one of its new industrial buildings at The Cubes at Glendale for $82.6 million, the highest single building industrial sale for 2023 so far.
Apartment completes construction, another to get new name
Coconut Grove, Florida-based Housing Trust Group and Scottsdale-based Treger Partners completed construction of Aviva - Goodyear.
The $71 million project broke ground in September 2020 and began leasing earlier this year. The luxury apartment community is now 95% leased.
MARK BOISCLAIR
Treger owned the 16-acre Goodyear site and approached HTG about joint venturing after seeing the record lease-up of HTG's first community in metro Phoenix, the 325-unit Aviva - Mesa, a $63 million project built in 2018, said Matthew Rieger, president and CEO of HTG.
Aviva Mesa leased up faster than any apartment community in Mesa's history, he said, and was named a finalist in the National Association of Home Builders Pillar Awards.
Monthly rental rates at Aviva - Goodyear range between $1,699 and $2,549 for units ranging from 809 to 1,320 square feet.
The community has two swimming pools and spas, a 10,000-square-foot clubhouse featuring a fitness center and co-working spaces. It also has a basketball and pickleball court, dog spa and Bark Park, a 140-foot-long dog park with covered seating areas and an agility course.
"We view Arizona as a second home and look forward to exploring new opportunities in the near future," Rieger said. "HTG is bullish on the long-term apartment prospects for the Phoenix metro and believe there remains strong demand for Class A apartments because of continued population and job growth."
Arizona State University's residence hall at its downtown campus is being renamed to honor former Phoenix Mayor Phil Gordon.
• Arizona State University is planning an event on April 14 to rename its downtown Phoenix residence hall.
The 360,000-square-foot apartment community with 1,284 beds originally was called Taylor Place when it was built in 2008. It is being renamed Gordon Commons to honor former Phoenix Mayor Phil Gordon, who was instrumental in the development and revitalization of ASU's downtown Phoenix campus.
“If it weren’t for Mayor Phil Gordon, the ASU downtown Phoenix campus wouldn’t be here. Period," Chris Callahan, founding dean of students for the downtown Phoenix campus, said in a statement announcing the April 14 event. "This was an extraordinary idea and without Mayor Gordon’s leadership and support, there would be no downtown campus."
Gordon attended ASU's law school before it was renamed after Sandra Day O'Connor.
His contributions to Phoenix include the $1 billion investment into the city's core, including the revitalization of the Phoenix Convention Center and the creation and implementation of ASU's Downtown Phoenix campus.
Health and wellness brands to expand
Personalized facials are coming to Gilbert and Scottsdale later this spring.
New York City-based Heyday Skincare will open for the first time in the Grand Canyon State on April 27 in Gilbert’s SanTan Village. Those visiting Heyday can shop for skincare products and receive professional facials.
Heyday Skincare is opening its first two locations in Arizona later this spring.
“We are thrilled to open Arizona’s first Heyday location,” said Eric Miller and Kristie Valdez, Heyday franchisees for the Gilbert location. “As proud Arizona residents, we are excited to serve our vibrant community and provide a unique and personalized experience that exceeds our customers' skincare and wellness expectations."
On May 18, Heyday will open at Lincoln Plaza Shopping Center in Scottsdale. Both the Scottsdale and Gilbert locations are now offering customers a deal for pre-purchased facial performed by skin-therapist for $70.
Scottsdale-based The Joint Corp. has more than 800 The Joint Chiropractic clinics nationwide.
• Scottsdale-based The Joint Corp. (Nasdaq: JYNT) is expanding into Puerto Rico with two clinics.
With more than 800 The Joint Chiropractic clinics across the nation, this will be the franchisor's first franchise agreement outside the continental United States.
The first of those two clinics in the U.S. territory of Puerto Rico is slated to open this fall.
Peter Holt, president and CEO of The Joint Corp., has an eye for future global expansions.
"In those international markets where there is already a strong tradition of chiropractic care, there is a real opportunity for The Joint's business model as we revolutionize access to chiropractic care by moving into convenient retail settings at affordable prices," Holt said. "In that context, international growth is considered an important opportunity for our continued expansion in the coming years."
About The Joint Chiropractic
The Joint Corp. revolutionized access to chiropractic care when it introduced its retail health care business model in 2010. Today, it is the nation’s largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. The company is making quality care convenient and affordable, while eliminating the need for insurance, for millions of patients seeking pain relief and ongoing wellness. With 800+ locations nationwide and nearly 11 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. Ranked number one on Forbes’ 2022 America’s Best Small Companies list, number three on Fortune’s 100 Fastest-Growing Companies list and consistently named to Franchise Times “Top 400+ Franchises” and Entrepreneur’s “Franchise 500®” lists, The Joint Chiropractic is an innovative force, where healthcare meets retail. For more information, visit www.thejoint.com.
Business Structure
The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Washington, West Virginia and Wyoming, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices.
Media Contacts
The Joint Corp.
Margie Wojciechowski
[email protected]
Office: (480) 245-5960 x 210
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