Commercial Real Estate & Business News – March 3, 2015

Apartment Sales Up 42% in January

The apartment transaction market started 2015 off just as frenzied as it finished 2014. In January, the sector posted $9.3 billion in sales, which was a 42% increase compared to January 2014. Both garden and mid- and high-rise sales contributed to the growth, increasing 40% and 46% year-over-year, respectively. As sales increased, cap rates continued to fall... Read more »

Low Vacancy, Limited Construction Boost Medical Office Building Sales

Medical office investors today have to be thankful they’re already in the game—vacancy in the sector is down, investment sales are at their highest and new construction is still falling behind current demand. The national vacancy rate for medical office buildings (MOBs) is now at its lowest point since the recession, at 10.9 percent... Read more »

$65M Mountain Shadows resort slated to open in Paradise Valley next year

A $65 million luxury resort and 18-hole golf course is slated to be built on the land once occupied by the Mountain Shadows Golf Resort, the Scottsdale Independent reported. The new resort will feature 180 guest rooms and 31 hotel–condominium units in a separate building. The new resort will not have as many rooms as the former resort did, but Scott Lyon, Westroc Hospitality CEO, told the Independent that the new resort will fill a luxury niche in the market... Read more »

Apartment Development Wave May Have Crested

The wave of new apartments being built in and around Phoenix may have crested after another surge of new developments last year. Most of the new real estate development in Phoenix — and some other U.S. cities — the past few years has been with apartments. Homeownership rates are down. Millennials are putting off home purchases. Banks have been frugal with lending and consumers are still recovering from recession hits to their credit... Read more »

Phoenix-Area Housing Market Sees Uptick

The sluggish Phoenix-area housing market just got a pleasant surprise. New figures show a sudden uptick in buyer demand, with a significant boost in homes under contract since late January. “I do NOT think this has anything to do with the crowds that came in for the recent Super Bowl in Arizona, but that is coincidentally when we started to see this rise in demand,” says Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University... Read more »

Commercial Real Estate & Business News – March 2, 2015

Apollo Headquarters Sells for $183M

The Apollo Group Headquarters campus is 100% leased to Apollo Group, Inc., one of the nations largest providers of higher education programs for working adults. It is comprised of three office buildings, one 10-story building at 267,962 square feet and two six-story buildings each comprised of 165,851 square feet, and two multi-level parking garage structures. The campus is home to approximately 2,850 executives and employees of Apollo Group, Inc... Read more »

MG Properties Buys Trillium Papago Apartments in $36.25 Million Deal

MG Properties Group had gone nine years between Valley multi-family investments when it purchased a Tempe apartment community last November. When the company closes the acquisition of a Phoenix apartment project on Feb. 26, MG Properties will have gone less than four months since its last multi-family investment in the Valley. In a deal that closed at press time, a limited partnership formed by MG Properties paid $36.25 million to acquire the 270-unit Trillium Papago apartments... Read more »

Flood of Home Sales May Indicate Millennials Diving In

More Millennials and boomerang buyers appear to be hopping off the fence and stepping into their own houses. Home sales across metro Phoenix are on track to jump more than 30 percent during the next few months, potentially signaling the restart of the area's stalled housing recovery, according to a new report released Friday... Read more »

Market Trend: Phoenix Industrial Deliveries, Construction and Inventory

During the fourth quarter 2014, 14 Industrial buildings totaling 1,069,221 square feet were completed in the Phoenix market area. This compares to seven buildings totaling 677,658 square feet that were completed in the third quarter 2014. There were 3,986,684 square feet of Industrial space under construction at the end of the fourth quarter 2014... Read more »

WV to Get 200KSF Healthcare Campus

A four- or five-building healthcare campus will break ground in 2016 on the northwest corner of 99th and Glendale avenues in Glendale, next to St. Joseph’s Westgate Medical Center. Medical office buildings for lease and/or purchase, as well as build-to-suit opportunities, are available. The campus, which will total more than 200KSF build-to-suit structures... Read more »

Commercial Real Estate & Business News – February 27, 2015

Arizona Forecast To Generate Nearly 120,000 Jobs In Next Two Years

Arizona is expected to add around 120,000 jobs in 2015 and 2016, according to a new forecast from the Arizona Department of Administration. Tourism growth is expected to lead that job growth, according to the 2016 Employment Forecast from the ADOA, with 56,600 expected to be added this year with the other 63,100 to come in 2016. Jobs are expected to increase in all employment segments, even construction... Read more »

Woodbine/Westroc Completes Land Buy To Build Hotel And Condos At Mountain Shadows

Companies formed by Woodbine Development Corp. in Dallas, Tex. (John Scovell, CEO) and Scottsdale-based Westroc Hospitality (Scott Lyon, CEO) paid $10.5 million to buy sites within the Mountain Shadows Resort in Paradise Valley that are targeted for a boutique hotel and residential condominiums. The landmark Mountain Shadows property takes in 68 acres located along the south side of Lincoln Drive and both sides of 56th Street... Read more »

Health Care Tenants Prefer Small Spaces to Big Boxes

As health care becomes more patient-focused, many providers have moved into retail space to become more accessible and convenient. But property owners who expect to backfill empty massive big boxes with health care tenants will probably be disappointed, experts warn... Read more »

Irgens Announces 60,000 SF Build-to-Suit Medical Office Building for Cigna Medical Group

Irgens is proud to announce the development of a 60,000 square foot, two-story Class A medical office building for Cigna Medical Group in Peoria, Ariz. "We are excited to provide Cigna Medical Group with a state-of-the-art health center that will expand its urgent care, pharmacy, imaging, laboratory and specialty services to patients in Northwest Phoenix," said Jason Meszaros, Vice President/Market Manager, Irgens... Read more »

OdySea will break ground March 5

McCarthy Building Companies will break ground at 5 p.m. March 5, 2015, on the OdySea Aquarium, which will be located adjacent to Butterfly Wonderland in Scottsdale. The groundbreaking celebration has been organized by OdySea founders Amram Knishinsky, Ph.D., and Martin Pollack and also involves the facility designer Deutsch Architecture Group... Read more »

Commercial Real Estate & Business News – February 26, 2015

Northern Trust Bringing Regional Operations, 1,000 Jobs To Tempe

Chicago-based international bank Northern Trust, is building a 450,000-square-foot three-building regional operations center in Tempe. The Tempe City Council is getting ready to consider a package deal from Northern Trust that brings 1,000 jobs paying an average of $82,000 to the city's Discovery Business Campus at Elliot Road and Loop 101. A formal announcement is scheduled for Friday morning... Read more »

Trammell Crow And Principal Financial Team Up For Another Deer Valley Project

In its second speculative industrial project planned in the Deer Valley area in the past eight months, Trammell Crow Co. in Phoenix (Jim Mahoney, Cathy Thuringer, principals) and Principal Financial Group in Des Moines, Iowa are teaming up to develop another 220,000 sq. ft. of space. The venture partners have not even completed 220,470 sq. ft. they are developing in a project called Park Ladera in the north Phoenix sub-market, and they have acquired land to build another industrial park of a similar size... Read more »

How Power Centers Have Been Redefined

No longer dominated by traditional big-box retailers, today’s power centers offer the needs-based stores and services to which consumers are drawn, Donahue Schriber Realty Group’s chairman and CEO Pat Donahue tells GlobeSt.com. We spoke with Donahue after the recent announcement of the privately held REIT, which specializes in retail, receiving a $250-million equity investment from institutional investors advised by J.P. Morgan Asset Management and New York State Teachers’ Retirement System... Read more »

With Capital Chasing Yield, Institutional Investors Spreading the Wealth to More Markets and Property Types

When it comes to commercial real estate, institutional investors are increasingly looking to spread their money around the country and acquire property in more non-core markets and property types again this year. After enjoying consistent double-digit returns on most CRE investments in the past couple of years, many are upping their spending allocations for real estate. One major pension fund, the Arizona State Retirement System is planning to increase its CRE investment by about a third... Read more »

PHX Establishes Strategic EDV Fund

Phoenix has had some notable success with adaptive reuse, such as The Newton, a mixed-use gem that rose on the site of the iconic, but long-shuttered Beef Eaters restaurant. Adaptive reuse has been hampered by aging infrastructure, which makes redevelopment cost prohibitive in many cases. It is hoped that Phoenix’s new Strategic Economic Development Fund will ease the infrastructure burden and spur new infill and adaptive reuse projects downtown... Read more »

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