Commercial Real Estate & Business News – August 27, 2014

If you live in a major U.S. city and look out over the skyline, chances are good you’ll see construction cranes. Lots of them. Only twice in the past 25 years have new apartment buildings been going up as fast as they are right now. That’s not necessarily a good omen. The first time, in February 2000, was right before the dot-com bubble burst. The second time, January 2006, came right before the housing bubble burst. Now we learn that builders broke ground on 423,000 new multifamily units in July, right before…who knows what?… Read more »
Charles Griffin Cale’s Griffin Opportunties has acquired a 145,000-square-foot building near Interstate 17 and Greenway Parkway. The 9.6-acre property is leased to Climatec. The Phoenix-based company makes building and energy systems and products… Read more »
Lincoln Property Group has acquired a 220,000-square-foot distribution complex in Phoenix that houses a Nestle water bottling operation. Dallas-based Lincoln — which owns a number of properties in the Phoenix market — bought the Freeport Distribution Center at 51st Avenue and Buckeye Road for $12.7 million… Read more »
Construction started today on a high-end apartment complex called Park 28 near Phoenix’s upscale Biltmore area. The 152-apartment project is going up on a four-acre site at the northwest corner of 28th Street and Indian School Road… Read more »
Kitchell recently completed a 171,000-square-foot expansion at Dignity Health Chandler Regional Medical Center, adding 96 beds and bringing the hospital’s bed count to 339, while adding and expanding comprehensive services… Read more »

Commercial Real Estate & Business News – August 26, 2014

IREM Report: Shopping Centers Generating More Income

Shopping centers across the country are generating more sales and income, based on the latest findings from Chicago-based IREM. The association’s 2014 Income/Expense Analysis: Shopping Centers reports that the median income for open shopping centers across the country stood at $17.18 a square foot in 2013. That’s up from $16.18 a square foot in 2012… Read more »

Obscure, Chinese-backed developer eyes $1.2B project on banks of Tempe Town Lake

The city of Tempe is poised to sell 11 acres of land on Tempe Town Lake to a developer who claims financial backing from Chinese and commodities-trading interests. The plan? A $1.2 billion, 2 million-square foot development on the parcels. Tempe is preparing to sell the lakeside parcels to Scottsdale-based TrendEx Holdings LLC for $17.6 million… Read more »

TA Associates Drops $68 Million For Office-Retail Project In Chandler

A limited partnership formed by TA Associates Realty in Newport Beach, Calif. paid $68 million ($287.64 per foot) to buy 236,405 sq. ft. of office and retail space within The Park at San Tan project in Chandler. The purchase included a 216,517-square-foot office building and 19,888 sq. ft. of retail space located just south of the southwest corner of Ray Road and the 101 Loop… Read more »

Investors Taking Advantage of Loan Rates . . . Owners Have Leverage Over Leverage

With historically low interest rates, favorable terms and an abundance of lenders, the climate for borrowers financing commercial real estate is as good as it has ever been. Permanent financing options are abundant with a smorgasbord of lenders armed and ready to loan large sums of money. There is healthy financing competition from life insurance companies, federally guaranteed Fannie Mae and Freddie Mac, CMBS (commercial mortgage backed securities) and conventional banking institutions… Read more »

Arizona Muscles Its Logistics Assets with Sun Corridor Megapolitan Area

Arizona’s Sun Corridor is an economic extension of Southern California when it comes to setting up logistics businesses. Five hours from the Los Angeles metro industrial areas, logistic businesses find total operating costs are as much as 25 percent less in the Sun Corridor than Los Angeles… Read more »

Commercial Real Estate & Business News – August 25, 2014

Large Phoenix Apartment Complex Faces Foreclosure

A large Phoenix apartment complex faces foreclosure over a $59.4 million loan. The 856-unit Saratoga Ridge Apartment Homes complex at Bell Road and 14th Street faces a foreclosure sale on November 4. The complex is owned by GS Saratoga Ridge LLC, an arm of Charleston, South Carolina-based Greystar, according to Arizona Corporation Commission and Maricopa County records… Read more »

Frenetic Week Of Multi-Family Trading Ending With Sale Of 676 Units For $66.6 Million

In a deal that will cap off a seven-day period of robust multi-family property sales activity in the Phoenix area, the 676-unit Lakeview at Superstition Springs apartments in Mesa is set to close in a $66.6 million transaction ($98,521 per unit). The project, located within the Superstition Springs community, is at 1849 S. Power Road. The multi-family property is being purchased by Fairfield Residential Inc… Read more »

MIG Continues Multifamily Buying Spree

Less than two months after his brother, David Merage of Consolidated Investment Group, closed on the distressed Block 1949 Apartments in Tempe, Greg Merage of MIG Real Estate has acquired Symphony Apartments in Chandler for $34.164m or more than $150k per unit. This is the second major multifamily acquisition by MIG this year following the $41.85m purchase of the Quadrangles in April and the fourth major acquisition since the start of 2013, totaling $126.564m for 1,048 apartment units and a 90k SF office building… Read more »

GM Hiring 1,000 After Opening Of Chandler Tech Center

General Motors has opened one of four national “innovation centers” in Chandler and is hiring 1,000 employees as the U.S. economy continues a shift toward knowledge-based jobs in science and engineering. GM announced the grand opening of the software-development center on Friday and over three years plans to add 500 more jobs to the 500 already created… Read more »

Record 82,000 Students Choose ASU

While college enrollments may have slowed in recent years, Arizona State University continues to draw record numbers of academically qualified students who are eager to learn and embark on their journey to a better life. As the fall 2014 semester gets under way Aug. 21, the university anticipates an enrollment of more than 82,000 undergraduate and graduate students – a new record for number of students enrolled and a nearly 8 percent increase from last year. Increases also are seen in number of transfer, international and veteran and veteran dependent students, and the student body is the most diverse ever… Read more »

Commercial Real Estate & Business News – August 22, 2014

Crow Holdings is expected to pay just over $47 million ($115,319 per unit) to acquire the 408-unit Grigio Metro apartments at 1811 E. Apache Boulevard in Tempe. The seller is a company formed by Gray Development Group and Canyon Johnson Urban Funds… Read more »
Kurt Rosene, Senior Vice President of Chicago-based Alter Group, has completed the sale of four office buildings within Corridors Phoenix—a speculative office development to total 1.4m square feet at the southeast corner of I-17 and Pinnacle Peak Road—for $16m or nearly $100 per square foot. Adler Realty Investments was the buyer, tendering $5.4m in cash and securing the remainder of the purchase price under a deed of trust with an unspecified principal balance issued by Wells Fargo… Read more »
A venture formed by SunCap Property Group plans to develop a business park in Gilbert that could have several hundred thousand sq. ft. of office and industrial buildings. The 63.4-acre tract, which is known as Gilbert Spectrum Business Park, is located at the southwest corner of McQueen and Elliot roads. SunCap Gilbert LLC paid $12 million ($4.35 per foot) to buy the land, which is two miles south and east of the Loop 101 and US 60…Read more »
Passco InSite, LLC, a joint venture between Passco Companies, LLC and InSite Investment Realty, has acquired the 270-unit Class B garden-style multifamily community Ovation at Tempe for $25.85 million. According to Bill Passo, CEO and Founder of Passco Companies, this new joint venture is an extension of a 20-year relationship with long-standing track record, market expertise and multifamily investment experience… Read more »
Family Dollar Stores Inc. is driving a tough bargain. On Thursday, the discount chain rejected Dollar General Corp.’s $9 billion cash offer, opting instead to stick with Dollar Tree Inc. DLTR -1.31% ‘s $8.5 billion cash-and-stock deal that is worth less money but may have an easier time passing muster with antitrust regulators…Read more »

Commercial Real Estate & Business News – August 21, 2014

Supply Surge: Multifamily Permits Jump 23.6% in July

When multifamily permits surged to 436,000 units in April, some observers naturally began to express caution. Then June’s 309,000-unit figure represented a 10-month low. And now, with permits barreling past 380,000 units, the concerns have grown even louder. In fact, in noting the 23.6 percent increase from June, Raymond James Equity Research characterized the figures as “a negative reading for apartment REIT investors” in a research report… Read more »

Inc. 500 List Includes 13 Arizona Companies, Including No. 8 Overall

Plexus Worldwide Inc., a Scottsdale-based health, wellness and weight loss supplement maker, is the fastest-growing private company in Arizona and eighth fastest-growing in America, according to the 2014 Inc. 500 list… Read more »

Phoenix Looks at Tripling Size of Light Rail System

A new committee on transportation is considering whether to extend the light rail, essentially tripling its size. But the proposed project could end up costing taxpayers some big bucks. When the current light rail system opened in 2008, it cost taxpayers about $1.4 million. To expand it, local leaders will have to convince taxpayers to dip into their pockets one more time… Read more »

Marley Park Shopping Center Sold for $12.45m

Donahue Schriber Realty Group has sold Marley Park Plaza—a Basha’s-anchored neighborhood shopping center within the Marley Park master-planned community—to a joint venture between a Canadian investor and Nathan Cardon of Cardon Commercial. The total sale price of $12.45m is comprised of $11.7m for the existing shopping center and $750k for an undeveloped 2.45 acre parcel adjacent to the east. Taking the two deals separately, this translates to $150.29 per improved square foot and $7.027 per square foot of unimproved land… Read more »

Price Corridor Getting Mid-Rise Hotel

First hotel out of the ground on the north end of the Price Corridor in Chandler may be the Bella Rose Inn. The six-story, 161-key hospitality center is in Chandler adjoining the Bella Rose and Castle wedding facilities and entertainment complex. The facility will be able to serve guests at both Price Corridor businesses and entertainment events at the venue, which surrounds the site on the north and east… Read more »

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