Commercial Real Estate & Business News – August 13, 2014

Top 10 Metros for New Apartment Construction Permits

While multifamily permitting was a big driver of all residential sector activity most of the year, the summer has seen a bit of a slowdown, according to research firm Axiometrics. In June, the annualized rate of multifamily permit activity dropped by double-digit percentage for the second straight month. June saw 301,000 units permitted, 17.1 percent below May’s 363,000… Read more »

Chandler Airpark Area Seeing Major Expansion Since Recession

After being grounded by a difficult economy, Chandler’s youngest employment corridor, the airpark area, is growing into its designation as one of the city’s top opportunity hubs. More industrial/office development is planned or will break ground this year, the first significant signs of development since the recession… Read more »

Mass Mutual Affirms Hiring Plans for Phoenix Office

Nearly one year after hosting a ribbon-cutting ceremony attended by Gov. Jan Brewer and Phoenix Mayor Greg Stanton, Mass Mutual said it now has 330 employees at a facility in north Phoenix with plans to expand to 400 by year’s end… Read more »

Latest Commercial Property Prices: July 2014

There is an all-time high in commercial property prices, according to Green Street Advisors. The price index in July was unchanged from the record-high set in June. It is up 6.0 percent from one year ago and up a whopping 76 percent from the cyclical low five years ago. For those who took the plunge to buy during the scary times in 2009, the returns on their investments have been quite spectacular… Read more »

So. Calif.-Based Investor Spends $21.6 Million For Deer Valley Project

A company formed by Griffin Opportunities LLC in Los Angeles, Calif. (Charles Cale, Walter Cale, principals) paid $21.6 million ($209.72 per foot) to buy a 102,996-square-foot flex-office showroom project located at 2851 W. Kathleen Road in the Deer Valley area of Phoenix. Maricopa County records show the buyer in the cash sale was… Read more »

Commercial Real Estate & Business News – August 12, 2014

Art Nolte remembers when Thomas Road, one of south Scottsdale’s major east-west corridors, wasn’t even paved headed west to Phoenix. The 74-year-old has owned and operated Scottsdale Automotive Specialists, on Thomas, two blocks west of Scottsdale Road, for 46 years…. Read more »
Security Properties, along with an East Coast life insurance company, teamed up to acquire Sonora Canyon, a 388-unit apartment community in Mesa for $30 million. Security Properties had previously purchased the property in 2005, then known as University Green, for $22 million and sold it in 2007 for $33.3 million… Read more »
During the second quarter 2014, one office building totaling 100,622 square feet was completed in the Phoenix market area. There was 2,007,403 square feet of office space under construction at the end of the second quarter 2014. The top notable 2014 delivery includes: 1450 S Spectrum, Chandler, a 100,622-square-foot building that delivered in second quarter 2014…. Read more »
Infill is the word these days as another mixed-use apartment property is proposed for an undeveloped lot at the corner of McKinley and Fourth streets in Downtown Phoenix. Tilton Development Company, Scottsdale, working with Goodman Real Estate, Seattle, is planning a 118-unit mid-rise apartment with live-work units. The five-story multi-façade building will feature 10 ground floor… Read more »
Investment sales of retail properties showed remarkable momentum in the first half of the year, with volume rising 57 percent compared to the first half of 2013, to $36.9 billion, according to Real Capital Analytics. The figure represents the highest gain in volume among all the commercial property types… Read more »

Commercial Real Estate & Business News – August 11, 2014

Low Rates Boost REITs, Commercial Real Estate Stocks

As interest rates hover near recent lows, and investors search for anything with yield, commercial real estate is finding its footing yet again, outperforming the broader U.S. stock market. Stock exchange-listed U.S. equity real estate investment trusts were up 16.25 percent… Read more »

Old Resort Site To Feature Multimillion-Dollar Homes

New homes soon will go up on the former site of the Mountain Shadows resort in Paradise Valley. Cullum Homes plans to build 40 multimillion-dollar houses on the eastern edge of the 68-acre site at 56th Street and Lincoln Drive. The $100 million development is called the Village at Mountain Shadows… Read more »

Sprouts Posts Whopping 141 Percent Bump In Profit On Healthy Sales

Sprouts Farmers Market (Nasdaq: SFM) saw its net income jump more than 140 percent on a healthy bump in sales. The Phoenix-based grocery chain, which went public a year ago, reported net profit of $30.2 million, up from $12.5 million the previous year. That equates to an approximately 141 percent increase… Read more »

Video Game Pioneer Buys Phoenix Business Park For $13 Million

Nima Taghavi’s BKM Capital Partners has acquired a 15-building office park in Phoenix for $13.1 million. The Black Canyon Business Park is located at Interstate 17 and Northern Avenue. The complex was only 34 percent leased at the time of the sale. Taghavi is a principal with Irvine, Calif.-based BKM along with CEO Brian Malliet. Taghavi has also been a key figure in the video game industry… Read more »

Property Values Hold Steady in July

Commercial property prices remain strong as interest rates remain low, according to Green Street Advisors Inc. The independent research, trading and consulting firm reports that its commercial property price index was unchanged in July, staying on the same robust track it has been on for several months. Values are now at or above 2007 highs in nearly every major property sector… Read more »

Commercial Real Estate & Business News – August 8, 2014

JLB Partners L.P. in Irving, Tex. (James Bosler, chairman) is now in the driver’s seat to develop an apartment project located near the southwest corner of Osborn and Scottsdale roads in Scottsdale. In February, BREW reported Transwestern of Houston, Tex… Read more »
Phoenix-based Sprouts Farmers Market will open a new store in Peoria early next year. The natural/organic grocer has signed a lease to open a 30,117-square-foot store at the Lake Pleasant Towne Center in north Peoria. That’s at the northwest corner of Lake Pleasant Parkway and Happy Valley Road. Shopping center manager Vestar announced the news in a statement today… Read more »
Mesa residents hoping to see signs of life in the struggling Fiesta District could see sprouts of progress early next year. Phoenix Rising Investments has acquired the Valley East Plaza Shopping Center. The long-vacant plaza at Southern Avenue and Longmore used to house the Bed Bath & Beyond, Petco and Circuit City stores…Read more »
Companies interested in buying buildings their businesses occupy are finding a divided market for owner-occupied commercial real estate financing, with the larger national and regional banks still shying away from sourcing such loans and the smaller and mid-sized banks growing their portfolios… Read more »
Home prices are rising at a slower rate than last year, and that’s at least partly because something new is driving the housing market, according to an updated report from Trulia, a real estate website. At the metro level, prices are being steered more by local jobs growth than a bounce back from price declines in the housing bust, Trulia said. The finding coincides with an update… Read more »

Commercial Real Estate & Business News – August 7, 2014

Millennials and college students are very much driving the local multifamily marketplace as younger demographics are propelling new developments in Tempe, Scottsdale and central Phoenix. They are also driving landlords to put in more amenities and generally smaller units… Read more »
Following a lull in the first few months of 2014, the Greater Phoenix retail market strengthened in the second quarter. Tenants stepped up leasing activity, vacancy tightened and rents ticked higher. The positive retail real estate trends should continue in the coming months, buoyed by annual retail sales growth in the 7-8 percent range… Read more »
After fighting it for years, Glendale is poised to consider an agreement next week with the Tohono O’odham Nation over its plan to build a casino resort near Westgate City Center. Details of the agreement, which was discussed Tuesday at a closed-door Glendale City Council meeting, will be revealed today… Read more »
A state-of-the-art medical campus will soon be built at the northeast corner of Loop 101 and 90th Street, on the Salt River Pima-Maricopa Indian Community, less than two miles from the Scottsdale Healthcare Shea Medical Center. The 43-acre, mixed-use development will be named 90th Street Medical Campus… Read more »
It’s been a common question as the apartment recovery matured: When will cap rates stop falling in the so-called “sexy six” markets of New York, Boston, Washington, Los Angeles, Northern California, and Seattle? Well, if you guessed the first half of 2014, you were wrong… Read more »
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