Commercial Real Estate & Business News – August 28, 2015

American consumers are finally spending again, which is good news for retailers and retail property owners. The increased spending corresponds to improved consumer confidence, and experts expect that trend to continue...Read more »
Pending home sales were mostly unchanged in July, but rose modestly for the sixth time in seven months, according to the National Association of Realtors. But annually the July rate was up 7 percent over July 2014. Consensus expectation was for a 1 percent gain over the seasonally adjusted sales rate for June, following an upwardly revised decline of 1.7 percent last month... Read more »
The first phase of the 398-acre NorTerra mixed-use project in Phoenix is expected to have 300 to 400 residential lots and multi-family sites available to builders in 2016. The property, located at the northwest corner of 19th Avenue and Happy Valley Road, is part of a 578-acre tract being developed by USAA Real Estate Co...Read more »
Los Angeles-based Regent Properties is the new owner of the North Loop 101 Business Center located at the southwest corner of 7th Avenue and the 101 Freeway. The 259,142 square foot office sold for a price of $41.75 million or $161 per square foot, and was funded by a $29.5 million loan with Compass Bank... Read more »
The company said it has teamed up with Ibotta, a smartphone app that allows shoppers to earn coupons when they answer a short survey on their phone. It is also equipping store directors with iPads, which allow them to record mystery shoppers in action, see how team members on the sales floor behave with an eye toward improving the way they serve customers, and make sure the stores are meeting or exceeding industry and food safety compliance standards... Read more »

Commercial Real Estate & Business News – August 27, 2015

A Federal Reserve interest rate hike next month seems less appropriate given the threat posed to the U.S. economy by recent market turmoil, an influential Fed official said on Wednesday in the clearest sign that fears of a Chinese slowdown are influencing U.S. monetary policy. New York Fed President William Dudley said the prospect of a September rate hike "seems less compelling" than it was only weeks ago... Read more »
The top six areas among the 48 were Dallas, Orlando, Raleigh, San Antonio, Austin and Phoenix. According, Brian Velky, managing director of fiduciary and valuation services for Situs, said that "Phoenix has better price values than more expensive 'primary' U.S. markets such as Los Angeles, New York, San Francisco and Boston." He also said that "Phoenix has good growth projects for population and job gains. Phoenix has a strong outlook and relatively reasonable prices." Read more »
The historic Westward Ho is getting an uplift, with repairs and upgrades made to kitchen cabinets, floors, fixtures, windows and air conditioning systems in many of its 289 affordable apartments for the elderly... Read more »
Pratik Jogani of Los Angeles has purchased the Biltmore Waterfront Apartments near the I-17 and Cactus Road for $10 million. The sales price on the 288-unit property reflects $35,000 per unit and was funded by an $8.8 million Fannie Mae loan. This is a bank sale from a CMBS portfolio managed by CW Capital, which comes five years after the property was foreclosed for a $7,328,000 opening bid amount... Read more »
It was only a matter of time before the people who lost their homes to foreclosure would enter the housing market again. It appears to be happening in Phoenix. The National Association of Realtors has released a study that shows many "boomerang buyers" are ready to become homeowners again, and Phoenix will be a prime spot for that to happen... Read more »

Commercial Real Estate & Business News – August 26, 2015

8 Phoenix-Area Cities Hit Top 50 Healthiest US Housing Markets

Eight Arizona cities are rising in the ranks of healthiest housing markets in the U.S., according to a WalletHub study. They all landed in the top 50 healthiest U.S. housing markets for comparably sized cities based on population... Read more »

Norterra West Breaks Ground in Phoenix

USAA Real Estate Company of San Antonio, Texas, in association with Tempe, Arizona-based Metro Commercial Properties, has broken ground on a speculative office development in the I-17 / Deer Valley submarket in Phoenix. The development, named Norterra West, will include two (2), three-story Class-A office buildings approaching 300,000 square feet, and will capitalize on the pent-up demand for large blocks of quality, contiguous space from users looking to enter or expand into the economically attractive Phoenix labor market... Read more »

7 Arizona Hotels Sell as Part of ZMC / Hall Equities Portfolio

California investment company Hall Equities Group purchased a total of 7 Arizona hotels on Friday, totaling 715 rooms with a salesprice of just over $53 million, or $74,162 per room. The hotels are located in Scottsdale, Peoria, and Anthem, and have hotel flags of "Hampton Inn", "Days Inn", "Sleep Inn", and "Holiday Inn"... Read more »

Sprouts, New Restaurants Slated for New Queen Creek Development

Construction of a new 20-acre town center development has started in Queen Creek. The QC District development will include a Sprouts Farmers Market, Starbucks, Red Robin, HomeGoods and Orangetheory Fitness... Read more »

Tucson Market Continues Retail Rebound

Tucson’s retail market continued an even pace in the second quarter of 2015 ending mid-year at 6.7% vacancy. Average asking rents were $14.27/sf, essentially unchanged since 2011. Thanks to achieving the one-million population milestone, interest from retailers was not lacking. In addition to Broadway at Kolb, Natural Grocers will open two additional Tucson locations by year end at Broadway & Country Club and Orange Grove & Oracle. The stores will average 12KSF... Read more »

Commercial Real Estate & Business News – August 25, 2015

Economy Watch: The Pluses, Minuses of Market Turmoil on Real Estate

The equities market drops that started last week, which are worldwide in scope, seem to have the makings of the correction that observers have been predicting and investors have been worried about for some time. As of Monday morning, Asian and European exchanges continued to fall. So far this year, all of the major U.S. exchanges have lost value, besides what they lost last week. The impact of the stock market movements on the various forms of real estate tends to be indirect, and include both positive and negative elements... Read more »

Strategist: The Market Selloff Has Nothing to Do With the U.S. Economy

The selloff in U.S. equities resumed on Monday. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened well in the red after index futures contracts hit their daily loss limits in premarket trading but have since moved off their lows of the day. Does the stock market reflect softening in the U.S. economy, or is there a divorce between the two?... Read more »

Fed Gets New Excuse to Not Raise Rates

The stock market's stomach-churning volatility could be just the thing to let the Federal Reserve off the hook. Some wonder if the stock market's sudden turbulence raises enough doubt about the economy to hold off the Fed even longer and back away from taking up short-term interest rates in the upcoming September meeting... Read more »

Arizona Economic Growth Ahead of National Average: BMO Economics

The Arizona economy is poised to accelerate again in 2015, with real GDP expected to grow 2.8 percent,” according to the bi-annual U.S. State Monitor Report from BMO Economics. "Arizona’s growth is ahead of the national average and has improved from 1.4 percent in 2014," said Robert Kavcic, Senior Economist, BMO Capital Markets. "The ongoing housing market recovery, sturdy population growth and exposure to a wide range of high-tech manufacturing should all help drive above-average growth in the years ahead"... Read more »

State Ends Year with $325M Surplus

Arizona ended its most recent budget year in the black — to the tune of $325 million. New revenue figures from the Arizona Legislature’s Joint Legislative Budget Committee show the state ended its fiscal year with a surplus. JLBC originally pegged a $266 million surplus, but said in its August financial report that tax collections came in $59 million above that... Read more »

Commercial Real Estate & Business News – August 24, 2015

There are bigger cities in Arizona (Phoenix and Tucson) and bigger golf meccas too (Scottsdale). Mesa can hold its own in both categories, and it beats them all in one key way—it’s a great, affordable city for raising a family. One prime reason: education... Read more »
It’s now safe to say metro Phoenix’s housing market has rebounded from last year’s lull. New data released last week shows both home sales and building are up again. The key indicators have been climbing since the spring...Read more »
The Ak-Chin Indian Community has announced plans for a $100M+ expansion for the Harrah’s Ak-Chin Casino. The project will include a spa, conference center with ballroom space, a parking garage and more than 200 new rooms on the Maricopa site. According to an announcement by casino officials, the project will increase room availability, draw additional visitors and increase the facility’s ability to host large-scale entertainment and corporate events. Read more »
Cathedral Development Group, Inc. (CDG) of Providence, RI has closed on a $44-million refinancing on the Westward Ho Apartments, a 289 unit Elderly Designated affordable housing property in Phoenix, AZ. The refinancing program on the project includes an FHA 221 D4 Substantial Rehabilitation loan, 9% Low Income Housing Tax Credits (LIHTC) and Federal Historic Tax Credits. The historic nature of the building, the substantial renovations, the planned social service programing and multiple sources of financing make the project unique and one of the first of its kind in the US... Read more »
The 111,052 square foot Bell 28 Office Park near the southwest corner of Bell Road and the I-17 sold Wednesdayfor a price of $11,745,000 or $106 per square foot. The purchase was funded by a $7 million loan with CitiBank. The property consists of two single-story buildings built 1999 with five current tenants. The buyer in this sale is located in British Columbia, while the seller is from Minnesota... Read more »
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