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 »

Commercial Real Estate & Business News – July 17, 2015

After gobbling up one of its biggest competitors earlier this year, Albertsons Companies Inc. is now pursuing an IPO. The Boise, Idaho-based company filed a registration statement with the Securities and Exchange Commission to sell shares of its common stock. Although the number of shares to be offered and the price range for the proposed offering have not yet been determined, the chain indicated it would raise $100 million through the IPO... Read more »
Shake Shack, a New York-based fast-casual restaurant chain, announced Thursday its plans for a second location in Phoenix. Earlier this summer Shake Shack (NYSE: SHAK), which went public in January, announced it was coming to Scottsdale Fashion Square in early 2016. The second location will be in central Phoenix near Camelback Road and Central Avenue at Uptown Plaza. For nearly a year, Uptown Plaza, which is anchored by an AJ’s Fine Foods, has been going through a massive renovation... Read more »
Phoenix-based car dealer DriveTime plans to add up to 650 new jobs in Arizona over the next year and is moving into an expanded headquarters near downtown Tempe. Formerly called Ugly Duckling, the company specializes in providing financing for customers with bad credit and operates 130 used-car dealerships in 25 states...Read more »
Organic grocers Sprouts Farmers Market and Natural Grocers are battling it out on each other's turf. Denver-based Natural Grocers is opening a story next month in Scottsdale. This is Natural’s first store in the Phoenix area. The Colorado company already has locations in Sedona, Tucson, Prescott and Flagstaff. It has another store planned for Tucson. That’s on Phoenix-based Sprouts' (Nasdaq: SFM) home turf... Read more »
The massive Belmont Master Plan has been approved as of June 24th. The total 24,800-acre project will consist of residential, retail, office, and mixed use components (see chart below for breakout) as well as 21 K-8 schools and 3 high schools. The ±24,800 acres of land is located north of McDowell Road alignment, south of CAP Canal, West of Hassayampa River, and east of the Wintersburg Road alignment. The project was initially approved in 1991 and has been amended in 2006, 2008, and 2012... Read more »

Commercial Real Estate & Business News – July 16, 2015

Supported by record levels of absorption and strong leasing, commercial real estate prices rebounded in May, with continued strong recovery in both higher-end properties and accelerating investor interest in smaller, lower-priced assets, according to the latest CoStar Commercial Repeat Sale Indices (CCRSI)... Read more »
Eastmark — a massive community rising on the former General Motors ground in southeast Mesa — has quickly become one of the nation's most popular new neighborhoods. The master-planned community ranked No. 8 in the U.S. for home sales during the first half of 2015, according to Maryland-based real-estate advisor RCLCO. As residential construction continues a modest rebound in metro Phoenix, the pace is accelerating at Eastmark...Read more »
234 apartment units will replace the 66,000 square foot office complex at 5125 N 16th Street, just north of the 16th Street and Camelback intersection. The Arbor Court Apartments will consist of studio, one-bedroom, and two-bedroom floorplans in two four-story buildings and will include a pool and community center... Read more »
Phoenix architect Irwin Pasternack wants to develop a $300 million industrial business park at Interstate 10 and 83rd Avenue. The Phoenix project could include industrial buildings as large as 1.5 million square feet as well as retail space. It could be one of the largest industrial employment centers in Phoenix, with freeway access to I-10 and Loop 101... Read more »
A buoyant fundraising market has provided managers of closed-end private real estate funds with an interesting dilemma: where to invest $254 billion in uninvested money already raised from investors. Unspent, real-estate-committed capital is up 37% from the $185 billion in December 2014, reaching the highest amount on record, according to Preqin, which provides data and research on alternative assets for institutional investors...Read more »

Commercial Real Estate & Business News – July 15, 2015

Best Buy / Dick's Sporting Goods Anchor Transacts at Fiesta Mall

The 95,000 square foot Best Buy / Dick’s Sporting Goods anchor at Fiesta Mall in Mesa sold Wednesday for a price of $5.9 million, or $62 per square foot. Macerich previously purchased this property for $16.05 million in early 2007. The prior sale included a former anchor building which was demolished to make way for present improvements. The new owner of the property is valley investor Ernest C Garcia II, owner of Drivetime Automotive Group... Read more »

U.S. Commercial Sectors Enjoy Continued Momentum in Q2

According to CBRE, the U.S. commercial real estate market continued to exhibit strong momentum across all property types in the second quarter of 2015. The office vacancy rate dropped 40 basis points (bps) to 13.5%, now at lowest point since Q3 2008 (13.2%). In Q2 2015, the industrial availability rate dropped 30 bps to 9.8%--matching the cyclical low achieved in Q4 2007... Read more »

Construction Begins on Enclave at Borgata Luxury Condos

Visitors to the corner of N. Scottsdale Road and E. Lincoln Drive might notice a little extra noise in the shopping and dining district this summer. That's because construction has officially begun on the Enclave at Borgata, a luxury condominium complex that will replace the Borgata of Scottsdale mall after its 2013 demolition. 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... Read more »

Portico Place II Secures Hanjin Shipping As Anchor Tenant

Portico Place II, a 48,173-square-foot Class A multi-tenant office building in Chandler, Az. has secured its first tenant, Hanjin Shipping, a transportation logistics firm that will occupy 37,669 square feet. Hanjin Shipping will take up 78 percent of the building’s overall space, occupying the entire second floor and half of the first floor. Portico Place II officially opened in April and is located at 2195 W. Chandler Boulevard... Read more »

Lux Air Jet Centers Breaks Ground at Phoenix-Goodyear Airport

Lux Air Jet Centers, the Phoenix-Goodyear Airport Fixed Base Operator (FBO) since 2007, was joined by Goodyear Mayor Georgia Lord, City of Phoenix Aviation Department officials and Washington Federal on Friday, July 10 to break ground on its planned Corporate Hangar and FBO Facility at the Phoenix-Goodyear Airport. The nearly $10 million project, slated to be completed in Spring 2016, will include:... Read more »

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