Commercial Real Estate & Business News – June 26, 2015

A new business in Gilbert is hoping to attract customers by offering movies, bowling, mini golf and pizza all under one roof. FatCats, a Provo, Utah-based company, opened its latest location in Gilbert this month in a 53,000-square-foot space near Greenfield and Baseline roads... Read more »
Arizonans saw a 1 percent increase in personal income in the first quarter while the nation as a whole was just a hair behind with a 0.9 percent increase, according to a report released Monday by the U.S. Bureau of Economic Analysis. The state ranks 17th in income increase trailing New Jersey. Many Arizona industries saw an increase in earnings growth.. Read more »
Investors developing shopping centers and malls aimed at the Hispanic, Asian and other ethnic communities increasingly find national retailers lining up for a chance to join local mom-and-pop stores catering to these fast-growing groups of consumers. Retailers have long sought to tailor their merchandise mix and marketing messages to different groups of shoppers by age group or to men or women. Ethnicity is increasingly becoming a factor in strategies used by shopping center investors to attract shoppers into their stores... Read more »
Arizona’s population increased 1.5 percent over 2013 to 6.7 million, according to new data from the U.S. Census Bureau. Even though Arizona saw fewer than 100,000 new residents, it’s the largest year-over-year population increase since 2008, when the state’s growth rate was 1.8 percent... Read more »
Today’s high net worth investors are hungry for real estate properties, and they have a clear preference for properties in North America, reveals a survey produced by real estate services firm Savills and strategic advisory firm Weatherill Consulting. The firms interviewed wealth managers and private bankers around the world for the survey called “The Weight of Money: How Private Investment is Changing the World of Real Estate.”...Read more »

Commercial Real Estate & Business News – June 23, 2015

Expanding its Phoenix area footprint, San Diego-based Parallel Capital Partners announced today it has acquired One North Central – a 20-story, trophy office building in downtown Phoenix – for $93.75 million. The 410,000-square-foot Class A, LEED Silver, Energy Star-rated tower was acquired from One North Central LLC. Parallel Capital Partners will invest more than $1.5 million to renovate and upgrade the landmark property... Read more »
WinCo Foods, an Idaho-based 24-hour grocery chain, will open a new store in Surprise this week. The Surprise store is located west of Loop 303 at 16925 W. Bell Road and is approximately 85,000 square feet in size. The store will open Thursday at 9 a.m. It will be the grocer's seventh Phoenix-area store. Other Winco locations are in Phoenix, Chandler, Glendale, Mesa and two in Gilbert... Read more »
Invitation Homes, one of the leading owners and operators of single-family home rentals, is preparing to sell $853.9 million of asset-backed securities. The transaction will be the biggest sale ever of securities backed by loans on single-family rental homes. Top single-family rental companies are cashing in, raising billions of dollars on Wall Street by securitizing the loans on their portfolios. The single-family home rental sector is doing well, according to analysts like Moody’s Investors Service... Read more »
Two years after a 300-unit apartment complex was approved for Gilbert Town Square, construction has not started. The apartments would expand the customer base of Gilbert Town Square, a now ten-year old shopping center originally planned for a Wal-Mart... Read more »
Existing home sales, including for-sale apartments, reached their highest level in May since the fall of 2009, the National Association of Realtors said Monday. The month’s tally rose to a seasonally adjusted annual rate of 5.35 million, coming in at the high end of a consensus of estimates from economists polled by Bloomberg Business. An increase in the percentage of first-time buyers—who comprised... Read more »

Commercial Real Estate & Business News – June 22, 2015

ASU To Break Ground On Facilities District Next Year

Groundbreaking on the first developments in the Arizona State University Athletic Facilities District could come as early as next year. The 330-acre urban community east of Sun Devil Stadium is ASU’s development endowment to continually raise funds for top-of-the-class athletic facilities at the school. The university is partnering with Catellus for a long-term development plan that is now being circulated to stakeholders.... Read more »

Investors Knock at Casa Grande’s Door

The 1.75 million-square-foot PhoenixMart project that broke ground last November in Casa Grande is attracting attention from opportunistic investors. Spurred by the area’s rising economy, Siegel Group Nevada Inc. acquired a 483-unit extended-stay property for $8.3 million. The PhoenixMart project is a global trade center designed to connect, facilitate and streamline manufacturing, retailing and wholesaling under the same roof... Read more »

At Last, Millennials Diving Into Home-buying Pool

Something, or actually a lot of someones, was missing from metro Phoenix's housing market last year. A dearth of first-time buyers, mainly Millennials, was the main reason the Valley's housing recovery stalled. But a growing number of these first-time buyers are no long avoiding commitment to a mortgage. As a result, bidding wars are erupting over affordable Valley houses, which has led to the 10-percent increase in home sales this year... Read more »

Not Everyone Wins a Trophy

There’s no space like trophy space. The premiere office towers that make up Phoenix’s skyline boast—by far—the most expensive office space to rent, garnering asking rents that are 33.5% higher than non-trophy space. Average Phoenix trophy rates in the first quarter of 2015 were $26.53 per square foot, compared to $19.87 per square foot in non-trophy buildings. This gap between local trophy and non-trophy space is approaching peak historical spreads: 10 years ago, the difference was 37.6%... Read more »

Majestic Tempe Project Wins Approval

The three-building, 173KSF Majestic Tempe project (6116 S Ash Ave.) is slowly moving forward after approval by the city’s Development Review Commission. Long a target for development, project owner The Edward P. Roski Trust and developer Majestic Realty Co., came to feel the timing and market conditions were right to move forward. Commerce Construction serves as design-build General Contractor for the development with the design being handled in-house... Read more »

Commercial Real Estate & Business News – June 19, 2015

An adaptive reuse project near Paradise Valley Mall has sold for $36 million. The Cactus Forty-2 apartments were sold by a joint venture operated by Southwest Next Capital Management’s Joe Meyer and Cachet Homes’ Matt Cody to a Texas buyer, Olympus Property. The 200-unit complex sold for $180,000 per unit. Cody said he and Meyer bought an old medical office building at the same property in November 2012 for roughly $4 million...Read more »
Just two weeks after selling an office project in Phoenix, another joint venture formed by Walton Street Capital LLC in Chicago, Ill. and Everest Holdings LLC in Scottsdale (Joe Blackbourn, principal) has purchased a back-office/flex property in Gilbert. W-EH El Dorado Holdings JV VII LLC (Walton/Everest Holdings entity) paid $18.6 million ($103.06 per foot) to buy a 180,480-square-foot call center/data center... Read more »
On Tuesday Triyar Companies and Oaktree Capital Management paid $6 million for a 0.85 acre-parcel planned for a new office building. The “Shoeman Office Tower” will stand seven stories and total 207,000 square feet. The site is currently occupied by a ±18,276 SF office & retail building. Disregarding the improvements, the sales price reflects a $162 per unimproved square foot. The property is located just under 500 feet south of Scottsdale and Camelback Road... Read more »
Groupon plans to open a sales office at SkySong, the ASU Scottsdale Innovation Center, to support its growing e-commerce marketplace. The deals company, groupon.com, will move into a 16,000-square-foot space in SkySong 1, 1475 N. Scottsdale Road. Since February, the company has operated out of a temporary office at 2575 E. Camelback Road, Phoenix. As many as 150 employees will work out of the Scottsdale space... Read more »
The first quarter was marked by weak economic activity, largely attributable to a confluence of temporary factors, such as port labor disputes on the West Coast, inclement weather, a rising dollar crimping exports and low energy prices resulting in depressed business investment. Against this backdrop, neither new construction nor net absorption of retail space was robust... Read more »

Commercial Real Estate & Business News – June 18, 2015

With Takeover of Target's Pharmacies, CVS Gains 5 Years of Growth in One Deal

CVS Health Corp. reached a deal this week to acquire Target Corp.'s pharmacy and clinic businesses for $1.89 billion. Through this agreement, Rhode Island-based CVS will acquire Target's more than 1,660 pharmacies across 47 states and operate them under a store-within-a-store format, branded as CVS/pharmacy. Under the agreement, CVS Health will be paying Target about $25 million a year in rent initially... Read more »

Developers Tap New Sources of Financing

Banks have traditionally been the go-to source for construction loans. But they may lose some of that edge in an increasingly competitive marketplace that is filling up with non-bank lenders, as well as a tougher regulatory environment that will make banks “think twice” about issuing construction loans. The construction cranes that are once again popping up on city skylines have marked the return of commercial development activity... Read more »

Lowe Venture Buying Gateway Office Buildings In $75 + Million Deal

In a show of confidence in the Valley real estate market, a venture formed by Lowe Enterprises in Los Angeles, Calif. (Robert Lowe, chairman) is paying $75.7 million ($173 per foot) to purchase three office buildings in the Gateway business park in Phoenix. Lowe Enterprises and Alecta Real Estate USA of Sweden have joined forces to acquire 437,603 sq. ft. of office space near the northwest corner of 44th and Van Buren streets. The seller is... Read more »

The Newport: Tempe’s New Single-family Housing Development, Quickly Taking Shape

Tempe is a bustling, busy urban center, filled with new businesses coming in such as State Farm as well as the college atmosphere provided by Arizona State University’s main campus. The one thing that seemed to be missing was new single-family housing. That, however, is changing. The Newport, a new single-family housing development, is quickly rising in Tempe. The Newport plans to deliver high-quality homes in Tempe for a relatively modest price — starting at $210 per square foot... Read more »

University Of Arizona To Expand On Phoenix Biomedical Campus

The University of Arizona and Banner Health plan to build a 60,000-square-foot outpatient primary care clinic on the Phoenix Biomedical Campus in downtown Phoenix. The Phoenix City Council approved a new partnership between the city, UA, Banner and any other potential development partners to develop up to five acres on the campus. Since UA opened its medical school on the biomedical campus in 2007, it has graduated more than 250 physicians and has invested nearly $450 million... Read more »

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