Commercial Real Estate & Business News – October 16, 2014

Hines Assembles Land For Mixed-use Project In Chandler…Flips Apartment Site

Hines Interests Limited Partnership in Houston, Tex. (Gerald Hines, principal) has completed the $20.42 million assemblage of a 25.5-acre parcel in Chandler that is planned for a mixed-use project called Chandler Viridian. As reported by BREW in April, the $150 million residential, office, retail and hotel complex is being developed next to the Chandler Fashion Center regional mall. Upon completing one of two property acquisitions that make up the assemblage, Hines resold the multi-family site… Read more »

Economists Predict Steady CRE Growth Ahead Despite Undercurrents of Global Turmoil

A consensus survey of economists and analysts convened by the Urban Land Institute and EY Real Estate predicts solid but not spectacutar returns for U.S. real estate investors as moderate economic growth supports a steady strengthening in commercial real estate capital markets and fundamentals over the next three years. The latest Urban Land Institute/EY Real Estate Consensus Forecast is slightly more optimistic… Read more »

Helix Grabs Commercial Property for $13M

Helix, an Arizona-based commercial real estate investment company, recently acquired a truck distribution industrial complex in Tolleson for $12.75 million. Located at 94th Avenue and Buckeye Road in Tolleson, the 40-acre commercial property consists of 179,000 square feet of buildings including a warehouse, office administration facility, maintenance garage, covered wall truss work area and a 60,000-square-foot covered structure on the rail spur… Read more »

CMBS Loan Delinquencies Continue Steady Decline Across Most Property Types

The level of commercial mortgage-backed securities borrowers who are behind in their payments continued to fall among all major commercial property types in September, with the exception of hotels. The decline in deliquent loans was due to a combination of rising loan volume resolved through sales and restructurings and a brisk flow of new securities issuance, according to Fitch Ratings. Delinquent loans fell eight basis points in September to 4.77% from the previous month as $571 million in loan resolutions… Read more »

Foreign Investors Chase Yield, Safety in U.S. Office Sector

Foreign buyers increased their investment in the U.S. commercial real estate markets in the first half of 2014, pouring in $85.4 billion in property purchases here compared to $76.7 billion in the first half of 2013. Almost half of foreign investment this year, about $37.8 billion, went into the office market, as buyers from countries including China, Russia and Canada fought over trophy properties in major markets… Read more »

Commercial Real Estate & Business News – October 15, 2014

Two school campuses for grades K-12 – in south Chandler and Goodyear – will be built by Great Hearts Academies in time for the 2015 school year. Great Hearts CFO Ward Huseth said ground-breaking is expected in late October with completion due by July. The project manager is Nations|Wright and the architect is Gensler. The GC for the south Chandler project is Tempe-based Okland Construction… Read more »
Not a lot of new data this week on the national front, but the data that was released all point to a continued expansion. Locally, most of the data was housing related and told a familiar story: housing is not doing well. Yet, despite that disappointment, the overall Arizona economy continues to recover. Were it not for the problems in single-family housing, the local economy would probably be… Read more »
The housing market crash produced a flurry of buying activity as investors snapped up single-family homes at bargain basement prices. The recovery in the residential market is prompting investors to retool strategies as this emerging investment niche continues to mature. Big institutional capital flowing into single-family rental homes in recent years has changed the landscape… Read more »
Few things excite residents in the West Valley as much as new restaurants, especially if they’re not national chains that start with the word “Red.” A few new places have opened recently. One restaurant yet to open is being treated as a secret – or as secret as something can be after public-relations people have sent out a press release about it. There’s also a new shopping opportunity in Sun City… Read more »
As the number of retirees climbs nationwide, people beginning a new stage of life might want to consider living in the West Valley. Long known for communities like Sun City and Sun City West, other parts of the West Valley are attracting attention as options for retirees. Peoria and Glendale recently were ranked in the top-50 best places to retire in the country, with Peoria coming in at No. 10… Read more »

Commercial Real Estate & Business News – October 14, 2014

Chicago Developer To Build Phoenix’s Tallest Residential High-Rise

Phoenix has selected a Chicago developer to build the city’s largest and tallest residential high-rise in downtown, a 34-story glass tower that will change the city’s skyline. Plans for the massive development, known as Phoenix Central Station, include about 475 apartments, 30,000 square feet of commercial space and a dog park. It will meld those uses with a bustling transit hub already on the site at 300 N. Central Avenue… Read more »

Private Market Multifamily Financing Activity Steps up in First Half

Most private side multifamily market participants stepped up their financing activity during the first half of 2014 in contrast to what is happening from government-backed loan buyers. Second quarter 2014 saw increased activity from most private market participants including life insurers, banks and thrifts, and CMBS conduit lenders, according to Kim Betancourt, director of economics and market research at Fannie Mae… Read more »

Retailers Embrace The Rise Of Outlets

Big retailers used to keep outlets far away from their main stores, but according to a report by The Wall Street Journal more and more of those retailers are starting to see the benefits of more overlap between outlets and full-price stores. For example, the WSJ said, some brands have decided to place full-price stores in outlet malls… Read more »

ASU Improvement Plans Include $36.5M Student Pavilion for FY16

Arizona State University plans capital improvements worth $68.5M for fiscal year 2016. ASU plans the Student Pavilion on the Tempe campus worth $36.5M, a building that would house a 1,500-seat multipurpose space for music, films, speakers and other events. The three-story, 79KSF structure would include food-service and academic-department space. The Student Pavilion will replace the Undergraduate Academic Services Building… Read more »

Loft Project Planned Within Heritage District In Gilbert

Trackside Lofts LLC in Granite Bay, Calif. (Dr. Paul Brown, Colin Brown, principals) plans to develop a 164-unit multi-family project within the Heritage District at the southeast corner of Oak Street and Cullumber Avenue in Gilbert. The company paid $1.55 million to acquire the 7.545-acre site, which is located west of Gilbert Road and southwest of the Union Pacific Railroad. The seller was IRG Gilbert LLC, a company formed by International Risk Group in Littleton, Colo… Read more »

Commercial Real Estate & Business News – October 13, 2014

It’s shaky, but improving. Experts say the Phoenix-area commercial real estate market is now officially in a slow recovery mode. A full 100 percent of the real estate brokers participating in a quarterly survey by the W. P. Carey School of Business at Arizona State University indicate they feel “optimistic,” and 84 percent believe the market is on an upswing… Read more »
Residential real estate prices saw moderating price growth for an eleventh month in a row, according to the latest figures from property data provider Clear Capital. Nationally, yearly gains decreased from a high of 11.7% in October 2013 to just 7.8% through September 2014. This trend is amplified in the West, where annual gains are cut nearly in half, from highs of 19.5% in October 2013 to 10.9% in September 2014… Read more »
Multi-family housing appears to be the hottest segment in Phoenix-area commercial real estate development, with two of the top three companies in the Phoenix Business Journal’s Commercial Real Estate Developers list, published today, specializing in the apartment market. Mark-Taylor Inc., which develops, builds and runs apartment complexes around the Valley, reported developing 2.32 million square feet in 2013… Read more »
Refinancing is tougher now for many homeowners because of tighter lending guidelines. Even former Federal Reserve Chairman Ben Bernanke says he is having trouble lowering the interest rate on his house. This month, he told a crowd at a Chicago conference on senior housing that lending guidelines are so tight he hasn’t been able to refinance. “Unfortunately, Bernanke, like many, found that tightened credit guidelines do not discriminate…Read more »
Anyone involved in medical office building (MOB) sales in any way, shape or form knows that investor demand for the product type is very strong while supply, according to many, cannot keep up. Yet it sure seems as if buyers are finding plenty of MOBs to their liking, as the total sales volume for the first half of 2014 actually topped that of the first-half of last year, the all-time record-setting 2013… Read more »

Commercial Real Estate & Business News – October 9, 2014

Calpers Reboots Its Real-Estate Ambitions

As it pulls the plug on hedge funds, the country’s biggest public pension is giving its property portfolio a $7 billion jolt. The California Public Employees’ Retirement System plans to increase its $26 billion of commercial real-estate investments by 27%, according to its latest asset-allocation report. The boost would leave Calpers with its largest property holdings since before the financial crisis…. Read more »

ASU Picks Developer For 330-acre Master-Planned Athletic Facilities District

In one of the most innovative programs to fund new and renovated athletic facilities without tapping public money, Arizona State University has picked Catellus Development Corp. to master develop its 330-acre athletic facilities district. The 20-year build out could put approximately 10 million square feet of retail, office, and research and development space along Tempe Town Lake between McClintock Drive and the east side of Marina Heights on both sides of Rio Salado Parkway… Read more »

Office Development Reaches Highest Level Since Great Recession

U.S. office construction has reached its highest level since 2008 as developers break ground on new projects in a growing number of markets where job growth, rising rents and falling vacancies are finally justifying new development. An analysis of CoStar Analytics data shows about 86 million square feet of higher-end office properties larger than 50,000 square feet under construction… Read more »

Investors Snap Up Apts., Office Properties to Fuel Third Quarter Sales Volume

With vast amounts of investor capital allocated to chase after all types of commercial real estate, especially multifamily and office assets, sales of U.S. commercial property are projected to total about $415.1 billion for the four-quarter period ending with the third quarter of 2014. That represents an increase of about 8% over the previous four-quarter period, according to early CoStar COMPs sales transaction data… Read more »

MARKET REPORT: Tucson Market Continues to Show Upward Trend

Even though decreased government spending impacted both momentum and activity in Tucson’s real estate market, employment in the metropolitan area is showing a promising tendency. The 5.8 percent unemployment rate at the year’s midway point was 0.6 percent lower than just six months ago, and real estate market fundamentals looked similarly encouraging… Read more »

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