Commercial Real Estate & Business News – September 17, 2014

Report: Phoenix-Area Commercial Properties Less Risky

Commercial properties in the Phoenix area, especially the East Valley, are among the most undervalued in the nation and thus relatively attractive to investors, especially if interest rates start pushing higher next year. That’s the assessment from Mascia Development LLC, a New York company that evaluated 350 metro areas around the nation for investment appeal… Read more »

EDR Reit Pays $91 Million For Student Housing Project Near Asu

EdR in Memphis, Tenn. (NYSE:EDR) paid $91 million (326,165 per unit) to buy The District on Apache, a 279-unit student housing project located southeast of Arizona State University at 977 E. Apache Boulevard in Tempe. The seller in the cash transaction was Tempe Student Housing LLC, a company formed by Residential Housing Development LLC in Houston, Tex… Read more »

Home-Sales Data Belie ‘Lukewarm’ Market

An unusually strong reading for U.S. new-home sales in August might not be enough to kick the market into higher gear. The latest Zelman & Associates survey of home-builder executives overseeing 2,500 new-home communities found that orders increased by 7% on a seasonally adjusted basis in August from July and by 21% from August 2013, the largest annual gain since June 2013… Read more »

Student Housing Stats – Trends Point To Continued Growth

There was a time when student housing either meant living in an on-campus dormitory or an apartment in town. On-campus housing was often austere, and off-campus housing was likely to be a poorly maintained apartment shared with several roommates. In both cases, attitudes about student housing were pretty much the same: Students didn’t care that much about where they lived… Read more »

Retail Interest as Strong as Pre-recession

Investor interest in the retail sector is surpassing one of the strongest periods in recent history, Rick Chichester, president and CEO of Faris Lee Investments, tells GlobeSt.com. In anticipation of ICSC Western Division next month, we spoke with Chichester about the trends he’s seeing in retail real estate investment and where he thinks the smart money is going… Read more »

Phoenix Housing Market Bust, But Not Really

This morning I attended the ASU Real Estate Council event and Mike Orr was the guest panelist.  He shared many new insights into the current lackluster performance of the Phoenix Housing Market and some of the recent causes for the lack of performance.

Some interesting facts:
-Jan 2011 the Avg Normal Sale/SF was $111/SF
-July 2014 that number was $128/SF -Most expensive in July 2014 was PV ($326/SF)
-Active Adult Communities are still the most active residential real estate market right now
-Supply is below normal and falling (currently 84%)
-demand is weak but stable (82%)
-Loan deliquency in 2010 was over 16%, as of 9/2014 about 4.5%
-Sellers can expect continued price weakness thru 2014 with an improvement in 2015
-Demand to buy is still weak but demand to rent is high
-Rentals have seen 11% increase in rents in 1 year with no sign of slowdown on the horizon
-Estimated value of Maricopa County Residential Real Estate Market is $400B; investment funds only purchased approx $1B of the stock–which at the peak was about 10% of the total sales

Penalty Box Buyers
-367K owners lost home to foreclosure/short sale between 2008-2013
-Fannie/Freddie lock out these owners for 7 years
-Since 2008, 19% of homeowners went thru a foreclosure (232,767)
-peak eligibility will be 2015-2018 to buy a home again

Millenial Impact on Housing Market
-Difficult to calculate and there is currently no way of gathering data accuracy greater than 60%
-Females are waiting until 29.4 years of age to have first child
-Birth Rate in USA is down to 1.7
-Many are still living at home
-Children change the perspective of the Millenials

Other interesting facts noted:
-Median Age of Realtor is 54
-We are in the “Affordable Zone” for housing
-A person from CA could buy 3 times the house in AZ vs buying in CA right  now
-We are in the weakest construction period since the 1920’s

How to get demand back to ‘normal’
-mortgage applications are at the lowest level since December 2000
-weaker credit applications must be approved (side note—not approval like was seen in 2006 but use the actual standards that should have been used)
-Millenials will join when they have kids which is potentially 7 years later than their previous generations
-normal credit should be 650 FICO or better.  Right now only loans being approved are with avg FICO over 755

A lot of information was thrown out in a short period of time.  If you were there, what other facts did you takeaway from the event?

Commercial Real Estate & Business News – September 16, 2014

San Diego-based Investor Makes First Valley Buy…Drops $48 Million For 582 Apartments

Phoenix Uprising LLC, a company formed by investor Donald Dougher, II of San Diego, Calif., paid $48 million ($82,474 per unit) to acquire the 582-unit Sierra Ranch apartment complex located at 4722 E. Bell Road in Phoenix. The seller was FSC Saddleback Associates LLC, a company formed by FSC Realty Inc. in Beverly Hills, Calif… Read more »

Banner May Transform 103KSF Mesa Strip Mall

An aging strip mall in east Mesa might find new life in a Banner Health proposal to transform the vacant Bashas’ and surrounding shops into a medical office complex. Cooper Village, a partially-vacant shopping center on the northwestern corner of Power and Broadway roads, would get a major face-lift that would combine 103KSF of retail space into medical clinics with one major entrance where Bashas’ once anchored the plaza… Read more »

Los Angles Based Investment Firm Buys 6 Arizona BMO Harris Bank Branches

Six Arizona BMO Harris Bank locations recently transacted in a sale-leaseback portfolio deal with Los Angeles based investment firm Corporate Partners Capital Group. Four of the six Arizona properties are located in the Phoenix Metro area, the other two are located in Sedona and Tucson respectively. The Phoenix properties will be leased back with a ten-year primary period that will… Read more »

Kuwait Investment Group Sells Phoenix Complex

A Kuwait investment group has sold a Phoenix industrial complex for $6.1 million. MDI Capital LLC – which is a real arm of the Kuwait Financial Centre investment bank — has sold a 99,500-square-foot industrial complex off of Interstate 10. The buyer is Calgary, Alberta-based Enright Capital. The warehouses are located near 46th Avenue and McDowell Road… Read more »

Economy Watch: Retail Sales, Consumer Sentiment

Americans had an itch to buy more in August, according to the Census Bureau on Friday. The bureau reported that U.S. retail and food services sales last month, adjusted for seasonal variation and holiday differences but not for price changes, were up 0.6 percent from July and up 5 percent from August 2013. The June-to-July 2014 percent change was revised from unchanged to an increase of 0.3 percent… Read more »

FOR SALE: Retail / Office Property in Just of Old Town Scottsdale Arizona

6411 E Thomas Road

6411 E Thomas Road

The property currently sits vacant and is highly visible on Thomas Road, with excellent signage.

With an exceptional South Scottsdale location, just east of 64th Street, the property is surrounded by entertainment and retail amenities including: Scottsdale Stadium, Civic Center Library, Scottsdale Healthcare Osborn Medical Center, Arizona Country Club, Papago Park Military Reservation, and several local parks.

Property Highlights:
-List Price: $279,000 ($75.14/SF)
-Size: +/- 3,713 Sq. Ft.

For more information: 6411 E Thomas Brochure

For Lease: Apache ASL Trails | Retail and Office Space Available in Tempe, Arizona

Apache ASL Trails - Lease

Apache ASL Trails - Lease

 

Apache ASL Trails is a four-story, mixed-use development with approximately 75 affordable housing residential units and commercial space on the first floor. There is only 4,200 square feet of commercial space in the project.

The commercial project is located on the northeast corner of Apache Boulevard and Lebanon Lane, along the Metro Light Rail.

Current Availability:
Suite 172 – 546 SF
Suite 175 – 619 SF

For more information: Lease Brochure – Apache ASL-reduced

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