Commercial Real Estate & Business News – March 18, 2015

There are lots of conversations these days about how to preserve, enhance and contribute to an authentic sense of place in our urban core. And while not all projects are as successful as some would like, increasingly we’re seeing innovative, adaptive reuse renovations along the Central corridor... Read more »
A multifamily residential development proposed for 4 acres north of the northeast corner of 32nd Street and Shea promises to be a step toward fulfilling Phoenix’s sweeping vision to transform 32nd Street to a magnet for residential and commercial investment and a place where residents can live, work and play... Read more »
Scottsdale city staff are expected to present to city council a plan they say could help spur additional economic activity within the McDowell Corridor as public and private revitalization efforts continue. Resolution 9990 — the McDowell Corridor Fee Schedule — temporarily modifies certain residential and commercial development fees. If adopted, the new fees would be in place for two years... Read more »
Some of the region's top restaurateurs and restaurant designers are teaming up for a redevelopment project on Seventh Street near Missouri Avenue in Phoenix. Bob Agahi and David Sellers' Western Vertical Holdings have begun construction on the project called The Colony. They are rehabilitating the central Phoenix property...Read more »
Arizona's ailing construction industry is adding jobs again, reversing an 8-month trend of falling employment and potentially signaling a revival of the home building market. Depending on the source, anywhere from 2,800 to 2,400 new construction jobs were created across the state during January. That increase ranks Arizona 10th nationally for new construction employment, according to the Associated General Contractors of America...Read more »

Commercial Real Estate & Business News – March 17, 2015

Mayor Makes Case for Light Rail Expansion

For Phoenix Mayor Greg Stanton, a proposed $17.5B sales tax measure to extend Valley Metro light rail to South Mountain, the Arizona Capitol, Metrocenter, Grand Canyon University and Arizona State University’s West campus isn’t about some kind of lasting legacy of his tenure at City Hall.... Read more »

Phoenix Looks to Buy, Preserve Interstate 17 Lands

The Phoenix City Council will consider a proposal at its Wednesday meeting to buy and preserve 172 acres of land along Interstate 17. The parcels are located in far north Phoenix west of Interstate 17 north of Carefree Highway and the Loop 303 freeway. The city wants to designate the land a mountain preserve... Read more »

Japanese Manufacturer Breaks Ground on New $25M, 175-Worker Mesa Plant

A Japanese-owned company has broken ground on a new $25 million airbag manufacturing plant in Mesa. Special Devices Inc. already has an airbag plant in Mesa. It bought an adjacent 19.6 acres of land near Greenfield Road and the Loop 202 freeway last month for $5.5 million... Read more »

Scottsdale Approves ‘Bahia’ Live-Work-Play

A mixed-use project called Bahia Live, Work, Play will be built just east of the Loop 101 and south of Bell Road in Scottsdale. The 4.3-acre site is bounded on the east by 92nd Street and on the north by Bahia Drive, previously called Aire Libre. Plans call for 64 individual ground-level office spaces with loft-style residential units above. The three- and four-story buildings, 30 to 42 feet high, will have roof-top gardens and patios as well as balconies on the upper levels and a community swimming pool... Read more »

Economic News Mostly Good

Economic news this past week was more mixed than it has been in a while. Most was good news. But, some was not so good news. Hopefully, the not so good news will prove to be transitory. Get used to this because the part of the cycle that is all good news is probably over. However, this is normal and does not signify any negative prospects for the near term or even mid-term economic outlook. As will be discussed, the consensus forecast for real GDP remains strong. And consumer confidence, while down, is still high. Retail sales and inventories/sales ratios, however, moved the wrong way last month. Arizona employment seems to be mildly accelerating. Greater Phoenix leads the charge. Greater Tucson continues to lag. This trend should continue. Read more »

Commercial Real Estate & Business News – March 16, 2015

U.S. Household Net Worth Posts Biggest Gain in a Year

Rising stock prices and home values pushed the net worth of U.S. households higher in the fourth quarter, a reassuring sign for the outlook for consumer spending. The increase added $1.52 trillion to the total wealth of American families, putting it at $82.91 trillion, a report by the Federal Reserve showed on Thursday. The increase in net wealth was the largest since the fourth quarter of 2013... Read more »

Chain Retailers’ Store Opening Plans Remain Healthy, RBC Report Shows

It seems that in spite of a recent spate of bad news from some mid-market retailers, the retail sector overall continues on a stable course, according to the March “National Retailer Demand Monthly” report from RBC Capital Markets. The report shows that the overall number of U.S. store openings planned for the next 12 to 24 months remains the same as at year-end 2014, while certain sectors, including hardware stores and discount department stores, are showing double-digit increases in year-over-year opening plans... Read more »

East Rock/Goldman Sachs & LPC Scrape Together $65 Million To Buy Promenade Offices

A venture formed by East Rock Capital LLC and Goldman Sachs Group Inc. (NYSE:GS) and Lincoln Property Co. of Dallas, Tex., paid $65 million ($253.73 per foot) to buy the Promenade Corporate Center office project at the southeast corner of Scottsdale Road and Frank Lloyd Wright Boulevard in Scottsdale. The two-building complex, which totals 256,175 sq. ft., was sold by Excel Trust Inc... Read more »

Investor Pays $18 Million for Central Avenue Office That Once Traded fro $38 Million

What a difference eight years makes, as proved by a venture that has acquired an office building on Central Avenue in Phoenix for $20 million less than the property sold for in 2007. A company formed by Michael Heckethorn and Reven Capitalpaid $18 million ($82.85 per foot) to buy the 217,247-square-foot office project. The 31-year-old building is located in the uptown Central Phoenix area at 3636 N. Central Avenue. The seller was Investors Warranty of America, a company formed by AEGON N.V. (NYSE:AEG)... Read more »

Game on: Phoenix Named Top 10 City for Sports Travel

For out-of-town sports fans, Phoenix is a hot destination. That's according to a new analysis from Hotels.com and SeatGeek that ranks Phoenix as the sixth best city for sports travel... Read more »

Commercial Real Estate & Business News – March 13, 2015

The apartment industry emerged as one of the strongest sectors coming out of the Great Recession, and a new study shows just how much the Phoenix economy benefited from the rental boom. In 2013 – the latest numbers available – apartment construction, operations and resident spending contributed $9.9 billion locally and supported 99,900 jobs in the metro area... Read more »
The P.B. Bell Companies, a leader in multifamily real estate development and management, has acquired The Boulevard, a 294-unit apartment community in north Phoenix. P.B. Bell purchased the luxury apartment community, located near Bell Road and 7th Street, from Franktown, Colorado-based Slavin Residential for $33.5 million... Read more »
The former Macy's space at Fiesta Mall in Mesa will become an urban office space, officials announced today. The transformation of the space into the Fiesta Corporate Campus begins this fall with development by Verde Fiesta I LLC, a corporation represented by Scott Jackson and Steven Johnson. The pair has acquired the building in a deal with Macy's... Read more »
The $1.9 billion South Mountain Freeway has polarized metro Phoenix for 30 years. Reactions were no differentWednesday when the federal government finally approved the 22-mile highway. Friday, the Federal Highway Administration will publish its formal decision to build the Loop 202 extension, which will join Interstate 10 near 59th Avenue in Laveen and at Pecos Road in Chandler... Read more »
Arizona's 2.5 percent year-over-year job growth topped the U.S. job growth rate for the first time since the end of 2013. Arizona's 64,000 new jobs in January 2015 when compared to January 2014 paints a couple of bright points on the economic development horizon... Read more »

Commercial Real Estate & Business News – March 12, 2015

Lincoln Property Co. has inked a deal on Salt River Project land with Papago Park Center for the next phase of a 3.2 million-square-foot mixed-use development in Tempe. LPC is developing the last available 60 developable acres of the 350 acre project... Read more »
In a deal signaling that Class A office space in the Valley has reached a price per foot value close to pricing prior to the downturn in the market, Crow Holdings Capital Partners LLC has paid $74.3 million ($340.41 per foot) to buy the 218,266-square-foot Esplanade III office building near the southeast corner of 24th Street and Camelback Road in Phoenix. The seller was A-Esplanade III LLC, formed by AEW Capital Management L.P... Read more »
A $38 million luxury apartment complex in Old Town Scottsdale is now open. The Wood Partners project Alta Scottsdale already is about 25 percent leased, according to a company release. The 218-unit complex, made up of two four-story buildings, sits on 6.5 acres at 8444 E. Indian School Road... Read more »
Laurus Corp. has entered the Valley real estate market with the $18.7 million ($199.17 per foot) purchase of the 93,890-square-foot Canyon Village office-retail project located within the DC Ranch community in Scottsdale. The four-building complex, comprised of two- and three-story structures, is at the northeast corner of Thompson Peak Parkway and Legacy Boulevard. The seller was a company formed by DMB Associates Inc... Read more »
A company has revived plans for an upscale condominium project at McCormick Ranch after it came to a standstill in the recession. Artesia, on the east side of Scottsdale Road just north of Indian Bend Road, gained approval this week to move forward on its next phase of additional – but smaller – residential units... Read more »
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