Commercial Real Estate & Business News – November 20, 2014

Prices, Trading Volume for Commercial Property Continue Yearlong Rebound In Third Quarter

Retail Joins Party as Pricing Trends Hold Steady for All Property Types from Year Ago: With the accelerating recovery in retail real estate taking center stage, U.S. commercial property saw price gains and increasing sales in both the high and low ends of the commercial real estate market during the third quarter, according to the latest CoStar Commercial Repeat Sale Indices (CCRSI). Read more »

Empty-Nesters Flock to Apartment Living

Magnitude of Boomers’ rental demand stuns some industry observers. Young adults ages 22 to 30—those “Millennials” who are a target demographic for many of the new apartment properties hitting the market—are likely to be in their first or second post-college home away from their parents. But it’s becoming more and more possible that their next-door neighbors could be their parents…or at least people their parents’ age… Read more »

5 Restaurant Chains That Will Outperform The Rest Of The Industry

The restaurant sector is becoming increasingly competitive. Americans go out to dinner an average of 74 times a year, The Washington Post’s Wonkblog reports, citing the consumer research firm NPD Group. That’s the lowest reading in three decades… Read more »

2015: Paradise Valley Could See New Ritz-Carlton Pitch

It appears the development behemoth known as the Paradise Valley Ritz-Carlton project may be rising from its recessional slumber. Community chatter around the project is building in anticipation of new leadership taking over in the Town of Paradise Valley in 2015, which includes new town council members and a new town manager… Read more »

Downtown Restaurants Can Expand Seating onto Phoenix Streets

Businesses in the downtown Phoenix arts district have the option of extending activity onto city streets with the new Downtown parklet program. Parklets are pedestrian seating and activity areas that can be developed within the bounds of two streetside parking spaces. The greenspace can be used by restaurants for patron seating and other seasonal pedestrian spaces… Read more »

Commercial Real Estate & Business News – November 19, 2014

Deutsche Bank’s Torsten Slok thinks this could be the best ever holiday season for retail sales. Sloks points to recent labor market data. Because hiring for the holiday season is generally done in October, it can be a good way to predict how retailers are feeling about sales for the final quarter of the year… Read more »
Canadian investment in U.S. commercial real estate is on track to hit record levels this year, once Canada’s second-largest pension fund closes a $2.25 billion deal to buy a landmark Manhattan property, according to data from property research firms. Canadian pension funds and developers have been raising their investment in foreign real estate this year, primarily in the United States, as they seek alternatives to a consolidated domestic market… Read more »
Builder confidence regained ground this month, increasing to the second-highest level of 2014, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The index stood at 58 in November, up from 54 in October. The NAHB considers the index in positive territory at any reading above 50. The index rose over the summer, standing at 53 in July, 55 in August, and 59 in September, the highest point in 2014…Read more »
STORE Capital Corporation, an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate (STORE), announced Tuesday the pricing of its initial public offering of 27,500,000 shares of its common stock at a price to the public of $18.50 per share. The shares are expected to begin trading on the New York Stock Exchange today under the symbol “STOR.” The offering is expected to close on November 21, 2014, subject to customary closing conditions… Read more »
The Mesa Riverview area is getting a massive boost to its hospitality accommodations in the form of Starwood Hotels and Resorts’ Sheraton River View Hotel. The four-story, 160,000-plus-square-foot facility, directly adjacent to Cubs Park, will feature views of the park and easy access to games, allowing baseball fans to stay as close to the action as physically possible… Read more »

Commercial Real Estate & Business News – November 18, 2014

Underwriting Standards Moving Back to ’07

Since CMBS came back a few years ago, there has been a lot of conservative underwriting,” said Ken Carpenter, managing director of CCRE. “Leverage-wise, it’s not back to ’07—we had more leverage back then—but underwriting standards are moving back to ’07.” He adds that today, 65% to 70% leverage is most common, while that figure was higher in 2007… Read more »

Retail Sales Rise Ahead of Holiday Shopping

U.S. retail sales edged up in October, according to a report released by the Commerce Department, evidence that recent job gains and lower gas prices are lifting consumer spending as the holiday shopping season begins. Retail sales rose 0.3% last month after falling by the same amount in September. Excluding gas stations, where falling prices lowered spending, sales rose a solid 0.5%… Read more »

Freddie Mac: 5 Game-Changing Predictions for 2015

The housing market is about to turn a corner into the new year, and according to Freddie Mac, the U.S. economy is well poised to sustain about a 3% growth rate for 2015… Read more »

Construction Set to Commence for Rivulon Development in Gilbert

Although a slice of the project is already under construction, representatives from the town of Gilbert, Nationwide Realty and others broke ground on what will become the town’s most sizable business plaza. The officials unearthed dirt for the incoming Rivulon project during a ceremony in Gilbert on Nov. 12. The ceremonial shoveling came as the symbolic first step toward the completion of the 250-acre development located off of Gilbert Road by the Loop 202 Santan Freeway… Read more »

Fowler Property Strikes Again…Spends $24.225 Million for 334 Units in Tempe

Fowler Property Acquisitions LLC paid $24.225 million ($72,530 per unit) to purchase the 334-unit Suncadia apartment community located at 505 W. Baseline Road in Tempe. The seller was a Sun River Village L.P., a limited partnership formed by Holland Partners. Maricopa County records show tbe Fowler company acquired the property by assuming a Freddie Mac loan with an original principal balance of $14.924 million. The federal agency also provided $3 million in supplemental financing… Read more »

Commercial Real Estate & Business News – November 17, 2014

Metro Phoenix lands 2017 NCAA Final Four

The weeklong event, which could generate $100 million to $150 million in economic impact, will culminate with games April 1 and 3, 2017 at University of Phoenix Stadium in Glendale. The 2015 Super Bowl and 2016 College Football Playoff championship game also will be at the same venue, which will seat 75,063 for the Final Four… Read more »

Vacant Grocery Stores in Metro Phoenix Find New Uses

The redevelopment efforts are helping to absorb some of the Valley’s vast amounts of vacant commercial space while revitalizing recession-ravaged shopping centers that lost anchor tenants when supermarkets like Bashas’ and Albertsons went dark… Read more »

Mill Avenue Gets New Brand, Name as Downtown Tempe

After weathering an economic downturn, the hip college strip is hopping again, and downtown stakeholders want to bank on the momentum. A new vision was unveiled at an inaugural State of the Downtown address Wednesday that spotlighted a rebranding effort and a revamped logo to market the city’s urban core… Read more »

Tractor Supply Co. Acquires 100 Acres in Casa Grande for 650,000 S.F. Distribution Center

Tractor Supply Co. plans to develop a 650,000-square-foot distribution facility in Casa Grande that will bring 250 jobs to the area. The “rural lifestyle” retail chain is developing the new project on a 100-acre parcel located at the southeast corner of Burris and Peters roads. Tractor Supply Co. (Greg Sandfort, pres.) paid $4.5 million to acquire the land… Read more »

Restaurant Sales Continue to Rise in October

Buoyed by the continued decline in gas prices, restaurant sales rose to a record high in October. According to preliminary figures from the U.S. Census Bureau, eating and drinking place sales totaled $48.6 billion on a seasonally-adjusted basis in October, which represented an increase of more than $400 million over September’s sales volume… Read more »

Commercial Real Estate & Business News – November 14, 2014

Risk Premiums Decline Along with Cap Rates

Graphically, the upward trend in commercial real estate sales volume since 2009 resembles the crest of an enormous wave, while the trend for risk premiums looks more like the trough of that wave. Even the highest-risk asset class in ’09—hotels, its premium at more than 7%—has seen its risk premium taper off to below 6%… Read more »

Mill Avenue Gets New Brand, Name As Downtown Tempe

Mill Avenue is the heart and soul of Tempe. After weathering an economic downturn the hip college strip is hopping again and downtown stakeholders want to bank on the momentum. That seems to mean out with the old and in with the new. A new vision was unveiled at an inaugural State of the Downtown address Wednesday that spotlighted a rebranding effort and a revamped logo to market the city’s urban core… Read more »

Fowler Property Fund Spends $66.5 Million For 715 Apartments In Avondale

Companies formed by Fowler Property Acquisitions LLC in Newport Beach, Calif. (Greg Fowler, managing principal) paid a combined $66.5 million ($93,007 per unit blended) to purchase 715 units in the Mirabella I and Mirabella II apartments at 3800 N. El Mirage Road in Avondale. The seller in two transactions was Mirabella Avondale Apartments LLC, a company formed by Fore Property Co. in Las Vegas, Nev… Read more »

$11 Million Yard Tempe Sam Fox’s Most Expensive Project To Date

Sam Fox and Tempe are excited to bring more than just the boys to the Yard. The latest project from Fox Restaurant Concepts is its largest and most expensive project to date. The mixed-use, $11 million project will feature Fox’s Culinary Dropout, as well as other tenants at a warehouse-style building in Tempe’s Farmer Arts District. The Yard Tempe’s first tenant, the Madison, a spin and yoga studio, opened in October… Read more »

Blackstone Venture Buys 356,484 Sq. Ft. of Valley Retail Space in $1.93 Billion Portfolio

A joint venture formed by The Blackstone Group L.P. in New York City, N.Y. (NYSE:BX) and DDR Corp. in Beachwood, Ohio (NYSE:DDR) paid a combined $79.6 million ($223.29 per foot blended) to purchase 356,484 sq. ft. of retail space in Gilbert and Queen Creek. The Valley properties were included in a group of 71 shopping centers that Blackstone/DDR acquired in a $1.93 billion portfolio deal from American Realty Capital Partners Inc. in New York City… Read more »

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