Daily News for Commercial Real Estate & Business – April 2, 2010

Here are the news stories you might find interesting today regarding commercial real estate and business:

Fry's Center Shops Trades for $2.9M Fry's Center Shops at 4212 W. Cactus Road in Phoenix sold for $2.9 million, or $170 per square foot, in a sale between private investors. The 17,055-square-foot retail center was constructed in 1990. It was 81 percent occupied at the time of sale and sold with a capitalization rate of 7.02 percent. View article...

Rush Investments Purchases Industrial Bldg. for $1.5M Rush Investments LLC bought the industrial facility at 8132 W. Sherman St. in Tolleson, AZ, from the Trust Company of Illinois for $1.5 million, or about $65 per square foot. The 22,800-square-foot building was constructed in 1983 and is located in a suburb near Phoenix. It was vacant at the time of sale and will be used as an investment. View article...

La Jolla Court Nets $1.2 Million Blue Valley Apartments, Inc. sold the 69-unit La Jolla Court multifamily complex in Goodyear, AZ, to Park Shadows Apartments for $1.2 million, or approximately $17,500 per unit. The 54,525-square-foot apartment community at 1322 N. La Jolla Blvd. consists of one and two-bedroom units in seven buildings. It was built in 1964 in the West I-10 submarket and was fully occupied at the time of sale. View article...

Regent Properties Purchases Glendale Corporate Center Regent Properties, a Los Angeles-based property management firm, acquired the three-building Glendale Corporate Center in Glendale, AZ, from a partnership of Bank of the West and California Bank & Trust, for $9.2 million, or $63 per square-foot. This was an REO sale. The three office buildings, located at 5323 N. 99th Ave., 5281 N. 99th Ave. and 5365 N. 99th Ave., delivered in 2008. The center totals 146,063 square feet and was 97 percent vacant at time of sale. Also included in the purchase was a 7-acre parcel of excess land at 5445 N. 99th Ave. View article...

Metro Surgery Center Sells for $2.8M in Phoenix The Metro Surgery Center at 3131 W. Peoria Ave. in Phoenix sold for $2.8 million, or about $207 per square-foot, in a sale between private investors. The 12,280-square-foot building was constructed in 1979 in the Northwest Phoenix submarket. It was fully occupied at the time of sale and was purchased as a triple-net investment property. The tenant, Metro Surgery Center, originally took occupancy July 2007 and signed a ten-year lease agreement, set to expire July 2016. View article...

Highland Park Sells for $1.6M The 70-unit Highland Park apartment complex at 7232 N. 27th Ave. in Phoenix sold for $1.6 million, or $23,214 per unit, in a sale between private investors. The pro forma cap rate was reported to be 8.65 percent. Constructed in 1974, the 52,350-square-foot complex rests on 4.4 acres, featuring a picnic area as well as a pool. It consists of 36 one-bed/one-bath units and 34 two-bed/one-bath units. The property last sold in December 2007 for $3.5 million. View article...

DeVry to open campus at Westgate City Center A little more than a year after the Phoenix Business Journal reported that DeVry University was looking to open a campus in the West Valley, the school has chosen a spot in Glendale's Westgate City Center. DeVry will begin offering classes in July in about 18,000 square feet at 6751 N. Sunset Blvd., Glendale. This will be DeVry's 95th location in 26 states and Canada, and its fourth in Arizona. View article...

Phoenix's CityScape project plans to open comedy club CityScape is getting into the funny business. The businessman who helped bring nationally-known comedy acts to Tempe Improv plans to open a 17,000 square foot comedy club at CityScape. CityScape is a $900 million cluster of shops, offices and restaurants under construction in downtown Phoenix. View article...

That Italian Place closes after 10-year run in Ahwatukee The 10-year-old restaurant closed its doors for good on Monday. Owner Larry Hughes sent an e-mail to regular customers and the media that said he had failed to negotiate a workable lease with his landlord. View article...

First American Subsidiary Leases 30,125 SF A subsidiary of First American Title Company will create as many as 400 new jobs in the Valley over the next two years with its new service center. The company, First American Home Buyers Protection Corporation, has inked a five-year lease for 30,125 square feet at Rose Garden Commerce Center in northwest Phoenix. View article...

Republic-Allied merger brings 140 new jobs Nearly 140 jobs have been added at the northeast Phoenix headquarters of Republic Services Inc. since its merger with Allied Waste in December 2008. Prior to the Florida company's merger with Phoenix-based Allied Waste, 353 employees worked at the corporate headquarters building near Mayo Boulevard and Scottsdale Road. View article...

Phoenix among top 10 for business bankruptcies The Los Angeles, Riverside/San Bernardino and Sacramento areas of California continued to lead the nation in commercial bankruptcy filings, but Phoenix also ranks among hardest-hit metros, according to a report released Thursday by Equifax Inc. View article...

Poll: West siders support casino plan The Tohono O'odham Nation is touting the results of a new poll showing support for the tribe's planned casino in the western suburbs of Phoenix. The poll of west-side voters shows 68 percent in favor of the casino, 24 percent opposed and 8 percent undecided, according to the tribe, which commissioned Phoenix-based Behavior Research Center to conduct the poll 400 voters March 19 and 20. View article...

President, VP of downtown association resign The future of downtown Mesa entered uncertain territory as its top leaders resigned in the wake of growing tensions. The president and vice president of the Downtown Mesa Association quit in a closed-door meeting with the board of directors this week. View article...

California Supreme Court Rules on ‘Free Look' Provisions in Purchase Contracts The California Supreme Court has ruled that a real property purchase agreement that contains a typical "free look" provision may, in fact, be an option contract. Moreover, if the buyer has not given the seller legal consideration for the option, the seller may be able to revoke the contract, to the consternation of the buyer. The ruling could have implications for similar agreements across the country. View article...

CMBS Delinquencies Contribute to Rising Number of Bank Failures The delinquency rate for commercial mortgage-backed securities lose sharply in March to more than 7%, according to New York-based data and analytics firm Trepp LLC. Troubled commercial real estate and construction loans are contributing to higher bank failure rates, Trepp reports. The researcher projects that 200 banks will fail in 2010. View article...

Feel free to contact me regarding any of these stories, the current market, distressed commercial real estate opportunities or your property.

Comments

  1. I actually read the article about the restaurant closing a little earlier and I found it interesting that they hadn’t tried to negotiate a space anywhere else, especially since it was such a beloved and popular restaurant. The last article relating the delinquency ratings to more bank failures was also interesting; I haven’t heard too much about the commercial side of the loan failures, just the residential.

  2. Marie-
    Thanks for the post!

    To relocate a business is expensive. Chances are, the restaurant didn’t have enough capital to do so and that is why they tried to renegotiate their lease.

    Regarding the commercial loans, I have posted several topics throughout the past year that cover the tsunami that is heading our way. Most people forget that commercial real estate follows the residential market up to 18 months. If everyone is in agreement that residential bottomed out on pricing last summer, commercial should bottom out on pricing sometime the end of this year.

    Thanks again for the comment!

    Nick

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