Friday, February 25, 2011

Marcus & Millichap Sells $30 Million High-Rise in Tempe, AZ

Centrepoint Towers in Tempe, AZ will be renamed West Sixth in one of the highest-profile transactions to close in recent years.

 PHOENIX, AZ – Marcus & Millichap, the nation’s largest real estate investment services firm, has arranged the sale of Centerpoint Condominiums (top left photo), a luxury high-rise residential project in downtown Tempe, Ariz., for $30 million.

The buyer, Cleveland, Ohio-based Zaremba Group, plans to complete construction of the two towers and convert its 375 condos into rental units. Upon completion, the property will be renamed West Sixth.

Located at 111 W. Sixth St., the project was originally developed by Tempe Land Co. LLC,  a subsidiary of Avenue Communities.

Construction began in 2005 and stalled in 2008.  Construction will resume immediately with Phase I of the complex, a 22-story residential tower, which is slated for occupancy by August 2011.

The asset will incorporate mixed-use retail and restaurant space on the ground floor. Phase II, a 30-story residential tower, will be completed by December of this year, giving the community a total of 375 residences.

Multifamily investment specialists Steve Gebing and Cliff David in the Phoenix office of  Marcus & Millichap represented the buyer,

 Zaremba Group, a national real estate organization based in Cleveland, Ohio with a regional office located in Scottsdale, Arizona. CB Richard Ellis’ Phoenix office represented the seller, ML Manager LLC of Phoenix, Arizona, successor to Mortgages Ltd., which acquired the property at a trustee sale in April 2010. 

“Centerpoint is arguably the most desirable, sought-after multifamily project in the state, representing an unparalleled opportunity for Zaremba to lead the effort in completing the area’s most recognizable residential project,” says Gebing.

 “Near-term fluctuations aside, an irreplaceable location adjacent to the nation’s largest public university campus coupled with scarcity of developable land in the immediate area will enable Zaremba to realize significant success with this project.”

West Sixth will inevitably augment the live/work/play lifestyle of the predominate student atmosphere in downtown Tempe. The innovative, urban apartment community will include several amenities consistent with luxurious living, including a 9,000-square foot fitness facility, with a yoga studio, tanning beds and a lounge. The resort-style pool will boast cabanas, fire pits and a barbeque area. 

“West Sixth offers unmatched amenities and will be the pinnacle for urban lifestyle. We are pleased to now move forward mindful that sales of this magnitude and complexity take time to complete,” says Kent Chantung, director of residential development for Zaremba Group on the interval from the previous expected closing date in October, 2010.

 “The added time in the process allowed us to solve lingering issues. With the obstacles resolved, we are now able to deliver a remarkable living environment to Tempe.”

 Contact: Stacey Corso, Public Relations Manager, (925) 953-1716

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