Commercial Real Estate & Business News – September 1, 2014

HAPPY LABOR DAY!

Smithfield Properties is being proposed as the winner of the Phoenix Central Station project. The project appears to be an “air-rights” development over the Central Avenue-Van Buren Street intermodal transit center, which is to be transformed into a 476-unit residential tower attached to parking and the transit center… Read more »
Optima Real Estate’s proposed $300 million project next to Kierland Commons is drawing challenges from neighboring projects. Chicago-based Optima Real Estate — known for its hanging gardens projects in Scottsdale — wants to build between 660 condominium units and possibly develop a 234-luxury hotel at Scottsdale Road and Kierland Boulevard. Optima could build as many as 796 residential units if there is not a hotel component…Read more »
Carter Validus Mission Critical REIT paid a combined $125 million ($188.55 per foot blended average) to acquire two data centers in the Phoenix area totaling 663,000 sq. ft. The sellers in two sale-leaseback transactions were companies formed by IO Data Centers in Phoenix. The properties include a 538,056-square-foot data center located along the south side of the 202 Loop (Red Mountain Freeway) at 615 N. 48th Street in Phoenix and a 125,000-square-foot data center at 8521 E. Princess Drive in Scottsdale. As part of the sale-leaseback agreements, IO will continue to operate the facilities through long term leases… Read more »
While the concepts differ, the three finalists for the redesigned City Center in Mesa all have one thing in common: a reinvigoration of the heart of Mesa. The city has spent the last year accepting requests for qualifications from designers to remake an 18-acre plot surrounded by Main Street, Center Street, First Street and Centennial Way that encompasses City Hall and the City Council chambers. The project was part of a 2012 bond package with a total projected cost of $70 million… Read more »
Much has been made of Amazon’s race for same-day delivery and Google looking to cut them off at the pass. In fact, Google just revealed they have been testing their own airborne drone deliery system, dubbed Project Wing, that could deliver small items to customers. While Google and Amazon’s drones are still a few years away – these online giants are still going to need physical space from which to distribute. That’s a substantial capital expenditure… Read more »

Commercial Real Estate & Business News – August 29, 2014

Have a Happy and Safe Labor Day Weekend!

Second Wind: Apartment REITs Beat Expectations in 2Q

With the exception of California-focused Essex Property Trust and rust belt-based Associated Estates, everyone has a stake in the nation’s capital. And, on the surface, that should be bad news for the sector. With weaker-than-expected job growth and a glut of new supply, the nation’s capital is one of the weaker apartment markets in the county… Read more »

Land Sales Slow as Phoenix Housing Market Declines

Phoenix area land sales are down 40 percent from last year as housing starts and demand for single-family homes ebbs. The volume of land sales in the Phoenix area was down 40 percent during the first half of 2014 compared to the same time frame in 2013 and is 30 percent down from the latter half of last year… Read more »

Tesla Gigafactory Price Tag May Be Too High for Competing States

Budget watchdogs are urging five states to not give away the store to lure Tesla Motors Inc.’s Gigafactory. The budget experts have written a joint open letter to the five states in the running, recommending they not offer too much in tax breaks or economic incentives to snag the large battery production facility, according to a story in the Contra Costa Times… Read more »

Chandler Multifamily Keeps Rolling, Notches $33.4m Sale

The market for quality multifamily assets in the City of Chandler continues to see strong pricing and high volume, registering $224.95m in sales, year to date. That trend continued earlier this week with the $33.4m sale of Ocotillo Springs by Weidner Apartments to Crown Realty Development. Another trend exemplified by this sale is the prevalence of funding from Government Sponsored Entities (GSE) in the acquisition of multifamily assets—in this case $22.8m in debt originated by Northmarq Capital and assigned to Freddie Mac… Read more »

Sun City Shopping Center Sold for $8m

Stephen Muller of Muller Company has completed the disposition of a neighborhood shopping center within the age-restricted and thinly traded Sun City master-planned community for $8m or $75.09 per square foot. The buyer was Barnet Dulaney of Perkins Eye Center doing business as Sun City Development Corporation, LLC. Dulaney paid $200k in cash and secured an additional $12m in new debt with C-III Capital Partners. Monday’s sale price is still below pre-recession levels, but less than half of the price for which Muller acquired the property in 2007… Read more »

Commercial Real Estate & Business News – August 28, 2014

The Tohono O’odham Nation will break ground tomorrow on its controversial $500 million casino in the West Valley near University of Phoenix Stadium. The Arizona tribe has been in legal and political fights — including with other tribes and U.S. Sens. John McCain and Jeff Flake — over the casino development located at 91st and Northern avenues… Read more »
Apartment developer P.B. Bell Cos. and Davis Enterprises LLC have been picked to redevelop the city-owned Barrister Place building in downtown Phoenix. Davis and P.B. are looking at a mixed-use project that includes residential, retail and commercial components. There is a planned second building to along with the existing Barrister building… Read more »
Chandler – A venture formed by Wood Partners has completed the purchase of a property in downtown Chandler that is planned for a 301-unit apartment community. In April, BREW reported Wood Partners filing for zoning approval and working to buy the site, which is within an area of Chandler that the City has targeted for redevelopment. The upscale urban housing complex will be developed through a GPLET agreement (Government Property Lease Excise Tax) with Chandler… Read more »
Sand Capital, a privately-held real estate investment company, located in Scottsdale, Ariz., has just closed on 140,390 square foot Target-anchored power center in Fountain Hills. Sand Capital is the financial arm and sister company to Sandor Development Company, which was founded in 1963 in Indianapolis, Indiana. Today, Sandor owns and manages over 8 million square feet of shopping centers in 25 states throughout the United States. Once acquired, Sand Capital assets are managed and leased by Sandor… Read more »
Developers of Tempe’s newest boutique hotel want to pick up the spirit of the city and nearby Arizona State University in its decor. Graduate Tempe is a new hotel giving it the old college try. Without using Arizona State University’s maroon and gold colors, it wants the new hotel to reflect the spirit of the community and university…Read more »

Commercial Real Estate & Business News – August 27, 2014

If you live in a major U.S. city and look out over the skyline, chances are good you’ll see construction cranes. Lots of them. Only twice in the past 25 years have new apartment buildings been going up as fast as they are right now. That’s not necessarily a good omen. The first time, in February 2000, was right before the dot-com bubble burst. The second time, January 2006, came right before the housing bubble burst. Now we learn that builders broke ground on 423,000 new multifamily units in July, right before…who knows what?… Read more »
Charles Griffin Cale’s Griffin Opportunties has acquired a 145,000-square-foot building near Interstate 17 and Greenway Parkway. The 9.6-acre property is leased to Climatec. The Phoenix-based company makes building and energy systems and products… Read more »
Lincoln Property Group has acquired a 220,000-square-foot distribution complex in Phoenix that houses a Nestle water bottling operation. Dallas-based Lincoln — which owns a number of properties in the Phoenix market — bought the Freeport Distribution Center at 51st Avenue and Buckeye Road for $12.7 million… Read more »
Construction started today on a high-end apartment complex called Park 28 near Phoenix’s upscale Biltmore area. The 152-apartment project is going up on a four-acre site at the northwest corner of 28th Street and Indian School Road… Read more »
Kitchell recently completed a 171,000-square-foot expansion at Dignity Health Chandler Regional Medical Center, adding 96 beds and bringing the hospital’s bed count to 339, while adding and expanding comprehensive services… Read more »
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