Commercial Real Estate & Business News – August 21, 2015

Phoenix Ranks As Sixth Best U.s. Real Estate Market

Phoenix ranks sixth on a new national ranking of the best U.S. markets for real estate investments. Houston-based commercial real estate firm Situs RERC ranked 48 U.S. metro areas on the attractiveness of their commercial real estate markets for future investments. Phoenix came in sixth behind only Austin, San Antonio, Raleigh, Dallas and Orlando... Read more »

Wentworth And Crow Holdings Team Up To Buy JDA Office In Scottsdale

A joint venture formed by Crow Holdings Capital Partners in Dallas, Tex. (Harlan Crow, et al., directors) and Wentworth Property Co. in Phoenix (James Wentworth, Sr., James Wentworth, Jr., principals) paid $22.04 million ($161 per foot) to buy a 136,893-square-foot office building located west of the 101 Loop and south of Raintree Drive... Read more »

Mercado Del Lago Mall in Scottsdale Sells for Just Under $9 Million

The Mercado Del Lago Mall, located just east of the Marguerite Lake in Scottsdale, sold Friday for a total price of $8.882 million or $161 per square foot. The investment group Arizona Partners, led by Bruce Shapiro and Mark Burns, funded their purchase with a $6 million note with Woodmen of the World Life Insurance Company. This 55,000 square foot lifestyle center consists of three single-story buildings on 1.63 acres... Read more »

Canadian Investor Strikes Again...Picks Up Deer Valley Office Project

A company formed by Redstone Group in Surrey B.C., Canada (Ali Nanji, principal) paid $11.745 million ($106.84 per foot) to buy 109,932 sq. ft. of office space in two buildings in the Deer Valley area of north Phoenix. The purchase included a 47,387-square-foot structure at 16605 N. 28th Avenue and a 62,545-square-foot building at 16610 N. Black Canyon Highway. The seller was OIBP Bell 28 LLC, formed by Onward Investors LLC in Eden Prairie, Mn... Read more »

Net Lease Investors Hungry for Quick-Serve Restaurants

Investor demand for net-lease quick-service restaurant (QSR) properties is hotter than an order of McDonald’s French fries. The price point, coupled with long-term leases, rental escalations and recognizable brand names, makes these QSR properties an attractive investment, particularly for 1031 exchange investors... Read more »

Commercial Real Estate & Business News – August 20, 2015

Banner Health Construction Projects Total $1.5 Billion This Year

Phoenix-based Banner Health is Arizona's largest private employer – and about to get bigger. With operations in seven states, Banner has 337 active projects on its books totaling $1.5 billion, with $1.2 billion of those projects in Arizona. That's not counting the $500 million patient tower it's building in Tucson as part of its new relationship with University of Arizona... Read more »

Developers Betting Baby Boomer Building Boom has Arrived for Seniors Housing

All the attention given to millennials and their penchant for bicycle-and-rail riding urban apartment dwellings in recent quarters has somewhat obscured the simple demographic fact that the largest cohort for U.S. rental housing demand is the tens of thousands of baby boomers turning retirement age and becoming seniors each day. Seniors housing and care investors and developers have responded with the largest pipeline of new senior housing construction in six years... Read more »

Tempe OKs 260-Unit ‘University Village’

Legacy Partners Residential’s proposed 260-unit infill project near Rural and Terrace roads in Tempe moved one step closer to reality following zoning and other necessary approvals by the city’s Development Review Commission late last month. The plans call for a mixed-use multi-family development with 775 bedrooms and approximately 1,800SF of ground level retail space in a five story building situated on 4.6 acres... Read more »

New Leaf Communities to Build 5-Story Apartments at SR-51 & Shea Blvd

Phoenix urban infill continues with the planned addition of 147 new multifamily units just north of the SR-51 and Shea Boulevard intersection. New Leaf Communities purchased the 4-acre property on Friday, August 16th, for just over $1.5 million. The site is currently occupied by a 14,533 square foot retail building, set for demolition. Phoenix City Council approved plans for the “View 32” project On July 1st. Plans call for around 60,000 square feet of apartments in one four-story building... Read more »

International Money Is Stretching Out the Recovery Cycle

Remember the phrase “follow the money”—meaning that understanding a complex deal requires examines where funds are heading? Today, an appreciation of our elongated recovery might actually mean looking in the opposite direction, at the burgeoning source of real estate investment capital. It’s called capital flows, as international sources of money are increasingly being invested in U.S. real estate... Read more »

Commercial Real Estate & Business News – August 19, 2015

Good News: Homeowners Spend Like it's 2006

U.S. housing is finally lifting itself off the mat. The latest evidence came from Home Depot (HD). The world's largest home improvement retailer on Tuesday revealed it experienced a record number of transactions in the last three months. On average, shoppers spent more than at any point since 2006 and sales at stores open for a year or more jumped 6%... Read more »

HKS Inc. to Design $400M Banner Patient Tower

Phoenix-based Banner Health is planning a 16-story patient tower on its flagship campus formerly known as Good Samaritan — making it the tallest hospital in Arizona. Now called Banner — University Medical Center Phoenix, the campus is preparing for a 650,000-square-foot patient tower — though it is not yet approved and funded. The proposed tower would create 312 private rooms in the 16-story tower, eliminating all semi-private rooms... Read more »

Phoenix Solar Building Sells for $20M

A Los Angeles investment group has bought an industrial distribution center that is home a solar manufacturing firm in west Phoenix for $20.3 million. Cohen Asset Management bought the 313,600-square-foot building near 43rd Avenue and Lower Buckeye Road from Kansas City Life Insurance Co. The sale was for $64.80 per square foot... Read more »

Construction Lenders All-In for Apartments

Construction lenders seemed on the brink of tightening their lending standards earlier this year. Experts worried too many apartments were already under construction and vacancy rates were about to rise. But this spring, demand for apartment properties continued to grow, powering yet another strong season of rising rents—and construction lenders are eagerly making loans to new development projects... Read more »

ABA: Commercial Construction Poised for Rebound

Sometimes, it looked like the Great Recession was never going to end. Layoffs, shrinking or non-existent margins, projects that bid but never got built all seemed to be the order of the day in recent years. It looks like the years of frustration may be over. Recent trends in Arizona indicate that construction job numbers are on the rebound and projects with real financing seem to be working their way back into the market. In the last year, Arizona experienced 2-percent growth... Read more »

Commercial Real Estate & Business News – August 18, 2015

Arizona Consumers Feeling Best Since Downturn Began in 2007

An improving job market has helped push Arizona’s consumer confidence back to pre-recession levels, a new survey has found. The latest measure shows the state’s attitudes lag the nation’s more optimistic sentiment, and Arizona’s good feelings are concentrated in Maricopa County. Still, the highest statewide reading in eight years is another sign that the public has put the Great Recession behind it... Read more »

Arizona's Apartment Construction Wave has Crested

Arizona’s multi-year wave of new apartment construction has crested. There were 8,568 construction permits for new multifamily construction projects taken out in May, according to the most recent data from the state’s Joint Legislative Budget Council. That is down 2.9 percent from May 2014, according JLBC which tracks economic and fiscal indicators. For the year so far, apartment construction permits are up 8 percent vs. the same time frame in 2014... Read more »

What the Falling Yuan Will Mean for U.S. CRE

China’s surprise currency devaluation this week could be a net positive for U.S. commercial real estate capital flows and cap rates, but a mixed bag for the U.S. economy. When the world’s second largest economy and largest exporter surprises investors with an overnight currency devaluation, investors are likely to increasingly seek out safe-haven assets, including U.S. real estate... Read more »

High-Paying Jobs Outpacing Others in Recovery

A new study concludes that high-paying jobs have grown the fastest in the economic recovery, casting doubt on the widespread lament that low-wage jobs have dominated payroll growth since 2010. The report, by Georgetown University's Center on Education and the Workforce, says its findings are more accurate than prior analyses that cite a prevalence of low-paid jobs because it evaluated occupations rather than industries... Read more »

Joint Venture Brings New Industrial

Joint venture partners, Conor Commercial Real Estate, a member of The McShane Companies, and Globe Corporation, announce the acquisition of a 16-acre land parcel for the development of AZ|60—a new two-building, 225,600-square-foot industrial project. Available for-sale or lease, the speculative facilities will offer modern design and flexible configurations to meet the growing demand within Gilbert’s booming industrial sector... Read more »

Commercial Real Estate & Business News – August 17, 2015

Phoenix Outlook Strong Despite Losing Mega-job Projects

Losing a couple of mega-job projects to other markets is a real hurt for metro Phoenix. This is especially true when both of the projects were naturals for the Valley. There’s more to the story of why two companies that would have generated around 3,000 high-paying jobs did not select Phoenix. In one case, the market made the short list, in the other we were the top rejected city... Read more »

Canadian Investor Bolsters Multi-Family Holdings...Pays $52 Million For 342 Units

A limited partnership formed by Alfonso Ergas of Vancouver, B.C., Canada paid $52 million ($152,047 per unit) to buy the 342-unit Shade at Desert Ridge apartments at 21150 N. Tatum Boulevard in Phoenix. The seller was I&G Desert Ridge LLC, formed by LaSalle Investment Management in Chicago, Ill... Read more »

Residential Originations Jump 23%

RealtyTrac has released its Q2 2015 U.S. Residential Loan Origination Report, which shows that 1,950,267 loans were originated on single family homes and condos in the second quarter, up 22% from the previous quarter and up 23% from a year ago to the highest level since the third quarter of 2013. The total dollar volume of loans originated in the second quarter was nearly $540 billion, up 14% from the previous quarter and up 29% from a year ago... Read more »

Florida Developer Moves Forward With $50m Downtown Infill Project

A new $50 million infill development near downtown Phoenix will soon start preleasing apartment units. Capital Place at 12th and Washington streets is under construction now. The infill project will total 292 apartments on 3.8 acres just east of downtown Phoenix. Winter Park, Florida-based Epoch Residential is developing Capital Place... Read more »

Multifamily Demand Continues to Rise, But How Will We Keep Up?

With homeownership levels at their lowest point in 50 years, the demand for multifamily rental homes is booming. Recently, the Urban Institute released a study that suggests 59 percent of new household formation over the next 15 years will be renters, which will cause an even bigger surge in the demand for rental housing. But are we prepared to meet this increased need?... Read more »

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