Commercial Real Estate & Business News – July 30, 2015

Haggen Grocery Expansion Hits Snags, Faces Albertsons Lawsuit

Rolling out 146 new stores was never going to be easy, but Haggen has run into even bigger challenges than the Bellingham, Washington-based grocery chain may have anticipated. Haggen announced last year it would take over many of the stores vacated by Albertsons and Safeway after the two companies merged and were forced to divest of some of their stores. The chain opened its first Phoenix store earlier this spring... Read more »

UA Expands in Downtown Phoenix

The University of Arizona has a large and expanding health and science presence worth nearly $1B per year on prime property in downtown Phoenix. The Phoenix Biomedical Campus land is owned by the City of Phoenix and all three state-funded Arizona universities have functions there. But it’s the UA that dominates the 30-acre property, having invested nearly $450M in campus building projects... Read more »

Downtown Phoenix, Roosevelt Row Replace Scottsdale as Most Expensive Rental Markets

Apartment rents are jumping in central and downtown Phoenix, according to a new report. Asking rental rates in the Valley are most expensive in the downtown, Roosevelt Row and central core... Read more »

Can You Guess Which Sectors Gained and Lost the Most Jobs in Arizona Since the Recession?

The Phoenix metro is still 101,000 jobs short of where it stood in October 2007, the best employment month in the area’s history. The largest drop in workforce by sector is, unsurprisingly, in construction, where today there are 75,500 fewer workers – 102,000 – than the 177,500 in the sector at the peak of employment before the recession. Education was the second largest job-losing category, shedding 32,400 jobs since the recession started... Read more »

Pet Club Poised for More Growth

Pet Club has experienced incredible growth since its founding in 1982. It began as a feed and tack store in Apache Junction and by 2010 had 12 locations—and there have been more than 45 transactions since, reaching outside of Arizona to Texas and Colorado... Read more »

Commercial Real Estate & Business News – July 29, 2015

The market for apartment properties is likely to keep expanding. That’s despite the fact that the business of investing in apartments has already been in expansion for six years, since property prices hit their low point in 2009. No boom lasts forever, but the long, slow recovery from the financial crisis continues to bring new capital to multifamily real estate, which still provides relative high yields compared to other investments... Read more »
The US economy continues to gather steam and hiring continues to pick up, judging by monthly reports from both the federal government and commercial real estate services firms. The employment growth is especially evident in office-using sectors. In spite of this, the decline in the office availability rate has slowed down... Read more »
The 288-unit Gateway at Tempe Apartments near the corner of McClintock and University Drives sold Monday for a purchase price of $56.75 million, or just over $197,000 per unit with no debt recorded. Apex One Investment Partners acquired the property via bankruptcy sale. It had previously been sold for $51 million back in 2006, funded by a $33,150,000 loan with Wachovia Bank... Read more »
Retail space that once lay barren, a sign of a struggling economy in Mesa’s Fiesta District, will soon become a beacon of growth in the city’s effort to redefine the district as a nucleus of industry in the East Valley. Centrica, a $20 million adaptive reuse office building, will act as a core project in the revitalization of the Fiesta District, a once vibrant and now growing center for commerce in Mesa. The location was once home to big-box retailers like Circuit City and Toys”R”Us before closing and being purchased by Phoenix Rising Investments last year... Read more »
Development driven by light rail now tops $8.2 billion, with nearly $5 billion in Phoenix alone along the 20-mile route, according to data compiled by Valley Metro and announced today by a coterie of local mayors. The construction data is for projects open or under construction within a half mile of light rail stations. The new data do not count proposed projects or projects completed prior to light rail construction’s 2005 start... Read more »

Commercial Real Estate & Business News – July 28, 2015

Phoenix metro shopping center is no longer a cringe-worthy phrase that one is afraid to utter in the real estate world. In fact, after a 6-year period of bumping along the bottom after a freefall never experienced before in our market, Phoenix metro retail has roared back to an “en vogue” status receiving local, national and even international attention. The last few quarters in 2014 and 2015 in the Phoenix metro retail sector is producing a dollar volume not seen since its peak in Q1 2007. The trailing 12 months dollar volume ending Q2 2015 totaled nearly $900 million overall; tenfold the volume compared to 2009 and 2010. Although sales volume stands 30% to 40% off peak compared to 2005, the Phoenix metro retail market is progressing steadily... Read more »
Two Las Vegas developers have bought 11.8 acres of land including a 67,000-square-foot office condominium building in the Troon North area of Scottsdale. Remington Nevada and InterCapital Development bought The Villages at Troon North Phase II office condos and adjacent land for a residential condo development from an entity called FNBN Troon LLC. The sale was structured with the Federal Deposit Insurance Corporation. The office condo building has been empty and not developed beyond shell condition since 2009 during the height of the recession... Read more »
What's now a pile of dirt will give way to a three-building, 86-unit, resort-style complex, catering to wealthy empty nesters and frequent visitors to Scottsdale and the rest of the Valley, said John Waldron of Williams Waldron, the communications firm involved with the project. Phoenix-based developer Antera will work with Wespac Communities to build the complex over the next 18 months... Read more »
The Heard Building near Central Avenue and Adams Street is getting a new glass facade and its office floors a more modern and open build out. The seven-story downtown building is made of concrete. It was built that way in 1919 after a fire destroyed the wooden Adams Hotel across the street... Read more »
Three potential routes remain under study for extending Valley Metro’s light-rail line from west Phoenix into downtown Glendale by the year 2026. Adding rapid-transit bus service along those same routes is an alternative being explored as well... Read more »

Commercial Real Estate & Business News – July 27, 2015

2015's Apartment Sales on Pace to Beat 2006

In the first half of 2015, $63.2 billion worth of apartments changed hands, a 37.6% increase compared with last year, according to Real Capital Analytics (RCA). The second quarter produced $29.7 billion worth of this activity, a 13% increase over 2014’s second quarter... Read more »

No Threat: Greek Crisis Won’t Hurt U.S. CRE

The ongoing economic crisis in Greece jumped ferociously back into the world’s headlines this summer, when Greek residents voted to reject European austerity demands and European leaders agreed on a third bailout deal for Greece in exchange for strict reform measures... Read more »

First New Scottsdale Airpark Class A Office Building to be Built in Over 5 Years

Planned for 40,000 square feet of space, the new 3-story commercial office building is on a 2.5-acre site, located within Horseman’s Park on the northeast corner of the Loop 101 freeway and south of Bell Road on Bahia Drive. Currently, it’s the only Class-A office scheduled for construction in Scottsdale Airpark for 3Q and 4Q 2015. Expected building completion date is March 2016... Read more »

Z’Tejas, Taco Guild restaurants file for Chapter 11 bankruptcy

Scottsdale-based restaurant company Z’Tejas Inc. has filed for Chapter 11 bankruptcy. The bankruptcy filing encompasses entities operating Z’Tejas Southwestern Grill restaurants in the Phoenix area and the Taco Guild restaurant at Osborn Road and Seventh Street. In U.S. Bankruptcy Court filings, Z’Tejas President and CEO Steven Micheletti said the Scottsdale company’s liquidity position and restaurant performance have been suffering... Read more »

ORION Announces Two Multifamily Transactions in Phoenix

ORION Investment Real Estate has announced the sale of two small apartment communities located in the Phoenix MSA. Located off the Loop 202 Freeway and Van Buren Street, Belaflora Condominiums sold for $1,255,000 or $83,667 per unit. This 15-unit portfolio sale of Class “A” Condos is part of a larger 185-unit complex within a strong rental sub-market in central Phoenix. The units are adjacent to the Papago Golf Course, and near attractions such as the Phoenix Zoo, Desert Botanical Garden, and Tempe Town Lake... Read more »

Commercial Real Estate & Business News – July 20, 2015

Retailers are coming under renewed pressure to cash in on their real estate as property values soar. But the approach has a mixed track record and poses risks at a time when chains are rapidly retooling their stores to support online operations. Macy’s Inc. is the latest to wrestle with the option. The department-store chain is facing pressure from activist investor Starboard Value LP to spin off its property... Read more »
CBRE Global Investors purchased the 629-unit “Broadstone Element Apartments” this Thursday for a salesprice of $66.3 million, or $105,405 per unit. It was purchased from Alliance Residential, who had acquired the property for $50 million in late 2012. The property underwent distress in 2009, when a $63 million loan was noticed for trustee sale and subsequently sold at auction for a credit bid of $39 million. This amounts to almost half the price at which it had been originally purchased in 2006... Read more »
ORION Investment Real Estate is pleased to announce the closing of Plaza 7 located at 18449 North 7th Street in Phoenix for $2,300,000 ($143/SF) to a private individual who has a portfolio of commercial properties in Phoenix. The Sellers, ACV Calzona I, LLC, are developers based in Sonoma, Calif. who ended up with Plaza 7 after developing the CVS that anchors the center. The property was 87% occupied at time of closing, bringing in strong cash flow with stable and successful tenants such as Pizza Hut, Proswingz... Read more »
The Empire Group will build 158 new single family homes on a 40-acre site located at 103rd and Olive avenues in Peoria. Average lot sizes in the single-phase development are planned for 6,326SF, with a minimum size of 5,220SF. Density for the proposed development is just less than four units per acre. As part of necessary road improvements related to the project, a half-street will be constructed for 103rd Avenue along the development’s frontage... Read more »
Metro Phoenix, and Arizona more broadly, seems on the right track economically, even if their recovery from the last recession trails much of the nation, the Federal Reserve Bank’s Western president said during a stop in Mesa last week. John C. Williams, who heads the San Francisco Fed bank and this year is one of the voting members of the Federal Open Markets Committee that sets the nation’s monetary policy... Read more »
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