Commercial Real Estate & Business News – February 15, 2017

Industry executives are feeling positive about market conditions as they take a "wait-and-see" approach to new administration policies, according to The Real Estate Roundtable's first-quarter 2017 economic sentiment survey...»

According to Green Street Advisors' Commercial Property Price Index, the US property market's asset values are currently 27% above their last peak. Apartment values have slowed over the past several years, and have only risen 1% in the same span of time. This has already contributed to flattened cap rates. Managing director Dave Bragg predicts that transaction activity may slow further over the next twelve months...»

 

Since the election, "uncertainty" has been a buzzword among economists. The direction of U.S. policy is not clear on major issues ranging from immigration to tax reform. But the fundamentals of the apartment sector are relatively strong despite it all...»

Driven by improving economic fundamentals and steady job growth, demand from office users can be seen in the significant amount of net absorption reported in 2016. Additionally, healthy demand coupled with a limited amount of completed construction, vacancy rates declined and rents increased across the Valley...»

For the first time, Phoenix was ranked the best large market for a quick-service restaurant on QSR Magazine's " 2017 Growth 40." It beat out Washington, D.C., Atlanta, Houston, Boston and L.A., among others, as the best place for a fast food or fast-casual spot such as a Wendy's (NYSE: WEN) or Subway...»

Commercial Real Estate & Business News – February 14, 2017

LivCor LLC, an affiliate of Blackstone Real Estate Advisors L.P. (NYSE:BX), has added to its multi-family holdings in the Valley by paying $40.7 million ($104,897 per unit) to acquire the 388-unit Sonora Canyon apartments at 265 N. Gilbert Road in Mesa. The seller was a joint venture formed by Security Properties Inc. in Seattle and Aetna Life Insurance Co...»

Now that there's a signed agreement in place, a 77,000-square-foot retail and dining project in Downtown Chandler is planned to open its first phase in December 2017...»

The Muller Company, in a joint venture with investment firm Harbert Management Corporation, announced that the $20 million redevelopment of Sky Harbor Towers office complex is nearing completion of its first phase. The 13.6-acre, two-building office campus located at the intersection of Interstate 10 and State Route 143 is anticipated for move in this spring...»

The erosion of homeownership has been one legacy of the housing boom-and-bust of the last decade. The homeownership rate peaked at 69 percent in 2004, inflated by relatively easy mortgage credit primarily provided by subprime and low/no-doc loan products. The drop in homeownership continued through 2016, with the homeowner rate just a tad above 63 percent, the lowest annual average in 50 years (Figure 1). But we may be at or near the bottom of the homeowner decline...»

The U.S. experienced its lowest ever mover rate between 2015 and 2016, according to the U.S. Census Bureau's recent population survey. How does this affect the real estate industry?...»

Commercial Real Estate & Business News – February 13, 2017

Metro Phoenix's edges are getting stretched with new home developments again. Recent land deals are spreading the Valley farther north, west past the White Tank Mountains and south towards Tucson...»

A fund managed by DRA Advisors LLC in New York City paid a combined $37.345 + million ($69.71 per foot blended average) to buy 535,729 sq. ft. of industrial space in four Valley projects. The Phoenix-area assets were acquired by the DRA Advisors fund as part of a $1.07 billion portfolio deal that included 19.8 million sq. ft. of industrial buildings in 21 markets located across the U.S. The 184 properties, which were 94 percent occupied on the average, were sold by Cabot Properties Inc. in Boston...»

 

Arizona-based ORION Investment Real Estate facilitated the off-market sale of Desert Place Apartments, a 260-unit property that spans across 8 acres in Phoenix. The sale was brokered by Bob Farrell, ORION's vice president. Jevan Capital was the buyer and Michigan-based IPA Phoenix-Foxwood LLC the seller. According to Yardi Matrix data, ConAm Management currently manages the property...»

A new 11-story, 210-room Hampton Inn & Suites hotel is being developed at Central Avenue and Polk Street in downtown Phoenix. The site is just south of Arizona State University's downtown campus and on a parking on the north side of Freeport-McMoRan's (NYSE: FCX) corporate headquarters and The Westin Phoenix Downtown hotel...»

Plans to attract hundreds of new residents to the Kierland area of north Phoenix are taking shape, as developers reimagine traditional shopping centers as high-end, urban projects. First to finish with a grand opening Thursday is the initial phase of Optima Kierland, a 10-story apartment tower at Kierland Boulevard and Scottsdale Road. Down the street, construction started last month on 170 rental units for active adults ages 55 and older. And landowners recently submitted plans to Phoenix to turn a 15-acre shopping center north of Thunderbird Road...»

Commercial Real Estate & Business News – February 10, 2017

Commercial real estate has had an almost uninterrupted run of increasing values since bottoming in the wake of the global financial crisis in 2010. Acquisition yields have persisted at historical lows for several quarters, and many question how long the asset class can remain priced to perfection...»

 
The National Retail Federation released its economic forecast for 2017 on Wednesday, projecting that U.S. retail industry sales-excluding cars, gasoline stations and restaurants-will grow between 3.7 percent and 4.2 percent this year compared with 2016. Online and other non-store/online sales, which are included in the overall number, are expected to increase between 8 percent and 12 percent...»

The JOBS Act was signed into law in 2012, but the commercial real estate investing world didn't begin to feel its significance until 2013-when the Securities and Exchange Commission established the rules for general solicitation. For the first time ever, commercial real estate sponsors were given permission to broadly market their investment opportunities to all accredited investors. No longer were they constrained to their personal and professional circles...»

Mortenson today announced the groundbreaking for the newest hotel in downtown Phoenix. The company is developing and building a Hampton Inn & Suites by Hilton at the intersection of N. 1st Street and E. Polk Street, centrally-located near entertainment and business, and immediately south of the downtown campus of Arizona State University (ASU). It will be the first Hampton Inn & Suites in downtown Phoenix...»

Ed Gorman's Modus Development is bring three environmentally friendly projects to Scottsdale and Tempe this year. Gorman previously developed the first net zero energy apartments in Scottsdale and has specialized in urban infill projects. Gorman's 2017 plans include townhouses in Scottsdale, an urban development in Tempe and net zero energy townhouses in Scottsdale...»

Commercial Real Estate & Business News – February 9, 2017

The seventh-biggest company in Arizona is about to get even bigger, with Intel Corp. announcing it will bring 3,000 more workers to Chandler. The company is investing $7 billion to finish a factory it launched in 2011 but never completed. It now plans to make its most advanced computer chips at the so-called Fab 42 off Dobson Road, one of two campuses the company has in the city...»

Las Vegas-based real estate developer LaPour Partners is moving forward with plans for a new 120,000-square-foot Class A office building and 160-room AC by Marriott hotel. LaPour has picked Graycor Construction Co. to lead the design and construction of the Camelback Collective project...»

A prominently placed, HonorHealth-anchored medical plaza in Anthem was sold for $10,600,000, according to ORION Investment Real Estate. The multi-tenant medical complex located at the gateway entrance into Anthem at Anthem Way and Gavilan Peak Parkway, was sold by WCCP Anthem Medical LLC, PEA Enterprises LLC, William Metzler and Scott Douglass, managing members...»

Located at 7160 East Kierland Boulevard, 7160 Optima Kierland includes 150, studio to three-bedroom residences, ranging from 595 to 1,795 square feet. Available for 12- to 15-month lease terms, the rental rates range from $1,425 to $5,275 per month...»

Banks have certainly enjoyed a nice run on Wall Street lately. But if borrowers were hoping that a bump in stock prices would translate to sweeter deals on commercial real estate loans-think again. It is business as usual for bank lenders, and many are anticipating that 2017 lending volumes will be on par with 2016...»

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