Commercial Real Estate & Business News – November 18, 2015

CoStar Group: Investors Still in Love with U.S. Commercial Real Estate

Falling unemployment and low interest rates meant good news for the owners of commercial real estate properties in the third quarter of 2015, according to the latest numbers from CoStar Group. In its latest report, CoStar reported that these two factors played a key role in boosting the value of commercial real estate properties in the third quarter. But a more interesting factor helped, too: Uncertainty across the globe... Read more »

Urbanization, Renting and Demand: Top 5 Real Estate Trends in Arizona that you Need to Know Now

With the housing crisis fading in the distance behind us and the move into city centers’ taking hold, the Valley’s housing market is recovering just the way we want it to, according to Rebecca Grossman, President of the Scottsdale Realtor’s Association (SAAR)... Read more »

Survey: Realtors Feel Phoenix Real Estate Market Moving Up

The Phoenix real estate market is on solid ground, an Arizona State University survey of commercial brokers said. Every participant in the Commercial Real Estate Broker Forum at ASU’s W.P. Carey School of Business believes the real estate market in Phoenix is moving up.“ Ninety percent of the respondents say that we are in an expansion mode,” Mark Stapp, director of the Master of Real Estate Development Program at the W.P. Carey School, said. “That’s up from 58 percent six months ago, so I think that’s very good. When asked in what direction Phoenix is moving, 100 percent of them said ‘upward’”... Read more »

Tiny Living: 20-Story Micro-Housing Tower Proposed for Downtown Phoenix

A micro-housing apartment tower is being proposed in downtown Phoenix. Transwestern Commercial Real Estate is looking at developing approximately 210 residential units averaging 400 square feet near McKinley and Second streets in downtown Phoenix... Read more »

Artists Lofts Planned in Downtown Mesa

A $14 million live-work artists lofts development is in the works for downtown Mesa. The 50-unit downtown project will also be the first in Arizona from Minneapolis-based Artspace Projects Inc. The group develops lofts and other space for artists and has projects in Chicago, Dearborn, Michigan and other cities... Read more »

Commercial Real Estate & Business News – November 17, 2015

It’s time to put an end to the urban legend of the impending death of America’s suburbs. With the aging of the millennial generation, and growing interest from minorities and immigrants, these communities are getting a fresh infusion of residents looking for child-friendly, affordable, lower-density living... Read more »
Why are sale-leasebacks and build-to-suit deals so popular? According to Andrew White, CCIM, managing director of the western region at Gladstone Commercial REIT, and a moderator at the recent RealShare Net Lease West conference here, the answer is because “Cap rate spread to treasury is still high”... Read more »
A San Diego real estate firm could soon buy the Arizona Center office and retail development in downtown Phoenix. Parallel Capital Partners is in line to buy the well-known development at Van Buren and Third streets...Read more »
The 288-unit Mountainside Apartments, located at 3625 E Ray Road in Phoenix, sold Friday for $41.25 million or $143,229 per unit. Sale documents indicate debt with the purchase, yet no debt documents were recorded. The new owners of the property are two independent investors - one local, and one from California - who each own fifty percent interest... Read more »
Roosevelt Row developer Matt Seaman has another infill development in the works near downtown Phoenix. Seaman’s Metrowest Development and two San Diego partners are planning a new 100-unit residential development on vacant city land near McKinley Street and Second and Third Avenue... Read more »

Commercial Real Estate & Business News – November 16, 2015

Grand Canyon Education Inc. is planning $400M worth of construction projects to expand its Grand Canyon University campus in Phoenix over the next four years. About half of that will be spent over the next couple of years, including the construction of a second engineering building, three new residence halls, another parking garage and a four-story office building to house student services and corporate executives... Read more »
When Silicon Valley tech company Gainsight Inc. decided to put its marketing headquarters in downtown Phoenix, it caught a lot of people by surprise. As Gainsight Vice President of Marketing Anthony Kennada explained, it was an easy decision for his company... Read more »
Over three and a half acres at the northeast corner of 3rd Street and Roosevelt (also known as "Roosevelt Row") sold yesterday to Alliance Residential for a total of $11.2 million. The transaction comes after a long dispute over the property, which was home to buildings deemed historical in nature by various parties... Read more »
Atlanta-based Wood Partners has bought multiple parcels at Thomas Road and Third Street in Phoenix as part of a planned 4.2-acre apartment development. The new Alta Thomas project will total 225 units and will be four stories, according to officials from Wood and Menlo Group which helped broker the sale... Read more »
The two-story office at 5353 W Bell Road in Glendale which houses the operations center for CSAA Insurance Exchange transacted Tuesday for over $44 million. CSAA sold the building after over seven years of ownership. The sellers continue to lease the office 100% in a sale-leaseback agreement with the property's new owners, GI Partners... Read more »

Commercial Real Estate & Business News – November 13, 2015

The development flurry that is remaking downtown Scottsdale into one of the Valley's hottest places for new housing and office space is showing no signs of letting up. Several development projects worth more than $100 million combined are proposed in and around Old Town, with construction of apartments, town homes, dining and an expanded medical center expected to begin early next year. Downtown Scottsdale has enjoyed a significant wave of redevelopment... Read more »
Developers keep on churning out new apartments with 7,200 new units slated to hit the Phoenix market this year as many as 22,200 proposed or construction. Submarkets such as Tempe, downtown Phoenix, Scottsdale, Gilbert and Chandler are slated to see thousands of new apartments hit the market over the next three years. Most of the construction cranes and construction sites around town are for new apartments and condos.... Read more »
Centrica, an adaptive reuse project in Mesa, AZ, will be the new home for Santander Consumer USA Holdings, Inc. (NYSE: SC), which signed a new 10-year lease for the entire 116,982-square-foot office building at 1550 W. Southern Ave. in Mesa, AZ. Santander Consumer USA Holdings, Inc. is a subsidiary of Banco Santander, a global commercial and retail bank with 102 million customers, 193,000 employees, and 14,700 branches - more than any other international bank... Read more »
The 388-unit Jefferson at One Scottsdale apartments sold Tuesday for $88 million, or $226,804 per unit. San Diego-based billionaire Igor M Olenicoff is the new owner of the property, which conveyed in a cash-only transaction. Built in 2014 on nearly fourteen acres in twenty-one buildings, Jefferson at One Scottsdale sports a unit mix that includes one, two, and three bedroom floorplans with a variety of square footages. It is part of the mixed-use project "One Scottsdale"... Read more »
From Star Wars: The Force Awakens and the final installment of The Hunger Games to the next James Bond movie, Spectre, and the highly anticipated release from Disney-Pixar, The Good Dinosaur, the movie release slate for 2015 is stronger than it’s been in years. And that translates into more earnings for movie theater operators and greater foot traffic at the shopping centers in which they’re located. Consider this: during the recent economic downturn, same-store sales were declining in all categories except theaters... Read more »

Commercial Real Estate & Business News – November 12, 2015

After Leading CMBS Out of Recession, Retail Loans Slower To Refinance

For all of their success in leading a resurgence of CMBS financing following the Great Recession, retail properties face a tougher rode ahead in the short term. Approximately $50 billion of retail-backed CMBS loans are scheduled to mature through 2016. Collateral backed by retail properties accounts for the largest portion of that, its also accounts for the largest proportion of loans defaulting at their 2015 maturities, according to Fitch Ratings... Read more »

Gilbert's 1st Mercedes-Benz dealership to open in 2016

A $15 million piece of eye candy is set to arrive in Gilbert early next year. The town's first Mercedes-Benz dealership -- stocked with luxury sedans, coupes and SUVs -- plans to open by spring within Gilbert's massive Rivulon mixed-use project near Loop 202's Santan Freeway and Gilbert Road. Plans include a two-story, 67,000-square-foot building with a showroom, boutique, cafe and customer lounge in what will be the fifth Mercedes-Benz dealership in metro Phoenix... Read more »

CRE Survey Reflects Both Positive Conditions and Concerns Over Interest Rates, Global Volatility

A survey of commercial real estate executives found expectations for more measured market conditions, with asset values increasing at a slower pace and moderate capital availability expected over the next year, according to The Real Estate Roundtable's latest quarterly Sentiment Index. The Roundtable's Overall Sentiment Index score for the fourth quarter of 2015 is 57 -- a four point dip from the previous quarter, and a 13-point drop from the same time one year ago... Read more »

D.R. Horton Sees Jump in New-Home Deliveries

Home builder D.R. Horton Inc. sidestepped the labor shortages plaguing many of its peers, posting a 23% year-over-year gain in delivered homes for its fiscal fourth quarter ended Sept. 30. D.R. Horton, the largest U.S. home builder by sales, contracted to sell 8,477 homes in the quarter, up 19% from the year-earlier period, and delivered 10,576. The Fort Worth, Texas-based builder notched a 0.6 percentage point increase in pretax profit margin to 10.7%, a sign that... Read more »

Aerostar Aerospace leases building in Deer Valley

Aerostar Aerospace Manufacturing, a manufacturer of high-complexity machine parts used in commercial aircraft, has completed a 7-year lease on an industrial/manufacturing building located at 2688 East Rose Garden Lane in Phoenix, Arizona. The property is owned and operated by Generic Investments II, LLC. The +/- 55,312 square foot building is located in the highly sought-after Deer Valley submarket, which is home to several Fortune 500 companies... Read more »

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