By Peter Madrid | MadridMedia
The 6th Annual Shark Tank presented by ULI Arizona attracted three distinct and unique projects all with the same goal of landing an investor.
The “sharks” considered a retail development in the brisk Deer Valley submarket, a residential subdivision in the South Mountain, and a remodeled, 12-unit multifamily community in central Phoenix.
Joseph Blackbourn, president and CEO of Everest Holdings, moderated the event held at the Scottsdale Resort at McCormick Ranch. This year’s sharks were Janet LePage, Co-Founder and CEO, Western Wealth Capital; Gary Linhart, Founding Partner, ViaWest Group; and Tom Roberts, Executive Vice President/Chief Investment Officer, VEREIT.
Those presenting included a veteran commercial real estate developer, the founder of an equity firm, and a former Shark Tank presenter. The projects:
>> The Shops at 1730 W. Happy Valley Rd. (Red Hawk Development): Red Hawk was looking to raise $650,000 in new equity to invest in a retail building in “the smoking hot market of Desert Valley,” Eckert said. The project calls for 8,500 SF divided among six suites in a multi-tenant building.
The Shops would be adjacent to Happy Valley Crossroads, which features 1.3 MSF of prime retail. It’s in a high-income demographic area with solid home values. Numerous new subdivisions would provide plenty of shoppers, Eckert said, including Union Park at Norterra. Eckert called it a “mom-centric” model.
Total cost of the project is $2.75 million, $1.63 million which will be borrowed. The plan is to sell the building in 7 years and repay the investors.
>> Villas at South Mountain (Matrix Equities, Inc.): The project calls for a comfortable, modern community at the base of South Mountain. A huge amenity is 16,000 acres or rugged trials for the outdoor adventurer. Matrix was seeking $600,000 in capital for the Villas, which will feature five modern floor plans.
The single-family infill project will feature larger lots and larger homes. It will be next to the largest municipal park in the nation and the Metro light rail has been approved down Central Avenue to Baseline.
Development fees on the ground will be $12,000 for each residence. A return of 24 percent starts the conversation, Miller said.
>> Venture on Marlette (Neighborhood Ventures): With one successful project completed in Tempe (Venture on Wilson), Neighborhood Ventures was looking to raise $600,000 for Venture on Marlette, a 12-unit apartment community along the bustling 7th Street corridor in Phoenix.
Crowdfunding was discussed as a possible way to raise capital with a minimum investment of $1,000. Plans call for a two-story, block construction building. The sale price would be $2.4 million (the land cost would be $1.6 million). The 12-unit Tempe project attracted 104 investors who helped raise $500,000.
Shark Tank is another great example of the information-sharing and best practices for which ULI Arizona is known.