Commercial Real Estate & Business News – October 1, 2015

It had been over a decade since the company's last apartment property purchase in the Valley, but IMT Capital LLC has jumped back into the Phoenix multi-family investment market in a big way. The company paid $100.5 million ($120,793 per unit) to acquire the 832-unit Deer Valley Village apartments... Read more »
With all eyes on the Downtown Phoenix development scene, one of the most anticipated projects of the year has kicked off sales with a strong demand from area buyers looking to invest in growing Midtown Phoenix. Edison Midtown, the urban contemporary midrise by Deco Communities officially launched its sales this week with the opening of a new Sales Center at 46 E. Monterey Way in Phoenix. With dozens of early buyers, the project will shift into high gear when it officially breaks ground in October... Read more »
The Phoenix City Council could vote Wednesday on a development deal and $400,000 worth of traffic signal improvements for a 1,200-worker, 47-acre new campus for W.L. Gore & Associates... Read more »
ASU and master developer Catellus Development Corporation have come up with a preliminary development plan for 330 acres, area bound by “A” Mountain, McClintock and University drives, and Tempe Town Lake...Read more »
A committee representing landlords, employees and other unsecured creditors is objecting to a plan submitted in bankruptcy court by Haggen to close at least 100 stores, including all of the properties in the grocer's ill-fated expansion into California, Arizona and Nevada. Bellingham, WA-based Haggen, which at this time last year was a regional grocer with 18 stores in the Pacific Northwest, last December agreed to pay more than $300 million for 146 Vons and Albertsons stores shed by Albertsons as a condition of Federal Trade Commission approval of its merger with Safeway... Read more »

Commercial Real Estate & Business News – September 30, 2015

As summer turns to fall, a lot of exhausted multifamily investment and finance professionals around the country are wondering whether the scalding apartment sector is hitting—or at least nearing—its cyclical peak. With apartment transactions continuing to keep a torrid pace, industry analysts predict 2015 will go down as the most-active multifamily investment year ever... Read more »
As the retail real estate industry undergoes one of the most profound transformations in its 60-year history, the International Council of Shopping Centers (ICSC) presents its Envision 2020 report, a collaborative initiative that outlines where the industry will be in five years according to leaders from around the globe. The resulting Eight Statements are unanimous but differ in progress, interpretation, and execution. This initiative will allow retailers, shopping center owners, and investors to plan and innovate with the future in mind... Read more »
As of the latest tally, there were 42,554 stores on the planning board for the next year and 79,655 stores on the planning board for the next two years, the National Retailer Demand Monthly report reveals. The numbers represent year-to-date increases of 4.1 percent and 4.2 percent for the 12-month period and 24-month period respectively... Read more »
For the second consecutive month, multifamily permits came in below 500,000 units. That's after June permits hit a seasonally adjusted, annual rate of 1.343 million, which the highest level for the nation since July 2007...Read more »
Builders continue the modest rise in new home sales as reported by HUD and the Census Bureau. August new home sales, annualized and adjusted for seasonality, increased to 552,000. The August level was up 5.7% from an upwardly revised July and represents the highest level since February 2008... Read more »

Commercial Real Estate & Business News – September 29, 2015

Economy Watch: How Did the U.S. Economy Fare in Q2?

The U.S. economy did better than expected during the second quarter, coming in at an annualized growth rate of 3.9 percent, according to the Bureau of Economic Analysis on Friday. That’s the final estimate that the BEA will make for the quarter, and an improvement on its earlier estimates. It’s also a distinct improvement for growth compared with the weather-stunted first quarter, which came in at an annualized 0.6 percent. Pretty much every economic category did its part in Q2 to add to the growth: personal consumption, exports, state and local government, and the two categories that include various kinds of real estate spending: nonresidential fixed investment and residential fixed investment... Read more »

Interest in Interest Rates Leads Chat

KC Conway, a Counselor of Real Estate with SunTrust Bank in Atlanta, told NAIOP Arizona members there were signs that the Federal Reserve Board was not going to raise interest rates. Conway addressed the audience a day after the Fed cited risks from abroad and downward pressure on US inflation from a high dollar as reasons to stand pat. “When the Fed is about to do something, it is so telegraphed,” Conway said. “(Federal Reserve chairman) Janet Yellen didn’t attend a conference in Jackson Hole, WY. They usually get very vocal, but not this time around"... Read more »

Clarion Drops $80 Million to Buy 1.3+ Million-Square-Foot Industrial Portfolio

A limited partnership formed by Clarion Partners LLC paid $80 million ($61.47 per foot) to buy a 1.3 + million square-foot portfolio of industrial properties in the Valley. The seller in a single cash transaction was the Zimmerman Revocable Trust. The group of assets includes nine distribution-warehouse and manufacturing buildings in Phoenix and Gilbert. At closing, on the average the space was 50 + percent occupied... Read more »

Lincoln Property Co. Leases 552,330 SF to Distribution User

Investment, development, leasing and management expert Lincoln Property Company (LPC) has completed a 552,330-square-foot lease that will fully occupy a Phoenix industrial building and bring approximately 200 new jobs to the Southwest Valley. The undisclosed distribution user will move into its new space in October and will fully occupy the project, located 7037 W. Van Buren Street in Phoenix. It will use the building to service a major requirement from a distribution-centric Fortune 50 company. It will also hire approximately 200 employees... Read more »

Monday Morning Quarterback

The state has now regained 80% of the jobs lost in the Great Recession. Greater Phoenix has fared better regaining 92% of the lost jobs. However, Tucson lags regaining only 43% of the jobs lost... Read more »

Commercial Real Estate & Business News – September 28, 2015

A resurgence of interest only loans is a bit reminiscent of the frothy lending market that existed pre-recession. But while the rise in interest only loans is another sign that lenders are relaxing their tight grip, underwriting on commercial real estate loans remains markedly more prudent than compared to 2006 and early 2007...Read more »
Several studies have shown that a large portion of renters wants to buy houses, but they’re not ready to make the leap right away. Two-thirds of millennials surveyed by TD Bank said that think they will purchase a home in the next two years... Read more »
Michigan-based IPA Management LLC has bought a Camelback-area apartment complex for $20.5 million. Grand Haven, Michigan-based IPA has acquired the Sienna Springs Apartments on 15th Street north of Camelback Road in Phoenix... Read more »
Plans submitted for the RMB Business Park on behalf of owner Arizona Commercial Real Estate Services call for six buildings with a shared interior truck yard and truck wells. Access will be provided via two driveways on Arizona Avenue. Buildings will range from 11KSF to 69KSF, with individual tenant spaces available from 4,140SF to 14KSF... Read more »
Gilbert’s booming downtown Heritage District is proving it’s more than just a foodies’ paradise by bringing in new options for shopping, live entertainment and more. The town awarded two new projects to local development company MD Heritage this month... Read more »

Commercial Real Estate & Business News – September 25, 2015

Why Economic Growth in Phoenix is Faring Better than What the Latest Data Show

“There’s a lot more behind those numbers,” said Dennis Hoffman, director of the L. William Seidman Research Institute in the W.P. Carey School of Business at Arizona State University. “If you look closely at overall trends, you find that job growth is a better predictor of GDP growth than waiting nine months for last year’s data"... Read more »

Could Salt River Sites Be in the Mix for a New Suns Arena, New D-backs Ballpark?

There is also speculation and even some mythical blueprints for a new D-backs ballpark and new arena for the Suns — and even possibly the Arizona Coyotes — on the Salt River Pima-Maricopa Indian Community next to Scottsdale... Read more »

Luxury Apartments Coming to Downtown

Capital Place, the $50 million apartment complex now underway, is accepting pre-leasing agreements at Florida-based Epoch Residential is developing the 1.87-acre site on the corner of Washington and 11th Street at 1012 E. Washington St., and the 1.92-acre site on the corner of Washington and 12th Street at 11 S. 12th St., into 11 Capital Place and 12 Capital Place respectively. Both are adjacent to the 12th Street light rail stop... Read more »

Private Student Apartment Development Next to ASU Sells for $56.8 Million

The Gateway at Tempe complex was built in 1998 and has 288 units. The three-story building is right next to ASU’s campus and can accommodate 918 students... Read more »

Grocery Chain Haggen is leaving California, Nevada and Arizona

Haggen Inc. is leaving California after a dramatic expansion gone wrong forced the grocery chain to file for bankruptcy protection this month. The Bellingham, Wash., company said Thursday that it is closing all its stores in the state as part of a larger exit of its Pacific Southwest holdings, including in Arizona and Nevada. That would affect at least 100 outlets, with 67 in California. That follows the closure of 27 stores announced last month, including 16 in the Golden State... Read more »

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