Phoenix – A venture formed by The Muller Co. in Laguna Hills, Calif. (Jon Muller, Steve Muller, principals) is facing foreclosure on a 272,728-square-foot office project located east of Phoenix Sky Harbor International Airport and just north of Interstate 10 and west of the Hohokam Expressway (State Route 143) in Phoenix. The property is collateral on a loan with an original balance of $40 million. The loan was issued to Muller-Hohokam LLC (the Muller Co. entity). The development, called Sky Harbor Towers, is comprised of three buildings at 4605, 4615 and 4635 E. Elwood Street.
According to Ion Data, a Mesa-based provider of real estate data, Jacob Maskovich of the Phoenix lawfirm Bryan Cave is the trustee on the pending sale (see Commercial Foreclosures P. 9). Ion Data’s Foreclosure Update lists WBCMT 2006-C23 Elwood Office LLC as the beneficiary on the delinquent loan. The trustee’s sale is scheduled for Jan. 15, 2013. LNR Partners LLC in Miami Beach, Fla. is acting as special servicer and is assisting with the disposition of the asset. The loan was sold as a commercial mortgage backed security (CMBS).
Proceeds from the sale will go to the registered holders of Wachovia Bank Commercial Mortgage Trust Commercial Mortgage Pass-Through Certificates Series 2006-C23. In January 2006, BREW reported a venture formed by Muller Co. and G.E. Capital paying $50.2 million ($184 per foot) to purchase Sky Harbor Towers (at that time called Hohokam Towers).
The project was fully leased when the venture acquired the project almost six years ago. The University of Phoenix had been occupying all of two buildings and half of the third, but vacated at year-end 2011. The complex is comprised of a seven-story building of roughly 116,195 sq. ft., a four-story structure totaling 85,488 sq. ft. and another four-story office of 71,045 sq. ft.
Charles Miscio of Colliers International in Phoenix has the leasing assignment. Miscio says there has been significant interest from potential tenants considering occupying large blocks of space in the vacant complex. Wilson Property Services in Phoenix is the receiver on the property.
Over the years, BREW has reported The Muller Co. buying and selling office and industrial properties in the Valley. At one point, The Muller Co. had an ownership interest in 2+ million sq. ft. of office, industrial and retail space in Phoenix. No word on the status the rest of its current holdings.
Find out more from Maskovich at (602) 364-7305. Contact the Mullers at (949) 460-5380. William Creeger of Ion Data is at (480) 831-6677, ext. 15.
