Commercial Real Estate & Business News – January 19, 2018

For the multifamily sector, 2018 should be a healthy year. Demand is strong-and it will be for some time. That was largely the message at the National Multifamily Housing Council's annual Apartment Strategies Outlook Conference, held this week in Orlando. However, the optimism at the conference was somewhat tempered by the prospects of increasing supply, rising interest rates and an eventual downturn...»
Amid high prices and slowing rent growth, unlocking value through multifamily investment has grown ever more complex. However, the multifamily industry is adapting well to the needs of residents and investors alike, with 2018 presenting continued investment opportunities, such as in secondary markets. While financing is still readily available, the challenge will be finding assets that deliver attractive returns...»
Houston-based Sunrise Luxury Living has opened The Core Scottsdale, its new apartment community in North Scottsdale, Ariz. Built by hardison/downey construction, Core Scottsdale offers 282 units, spread across studio, one- and two-bedroom units. Among the features and finishes of apartment homes are gourmet kitchens with quartz countertops, gas ranges, under-counter wine centers with towel bars, wood-plank floors...»
The West Valley medical office market is about to get a new star. Plaza Companies has secured two new leases totaling over 23,000 square feet for Estrella Medical Plaza II, and recently broke ground on the building on the growing Banner Estrella Medical Campus, located at 9201 W. Thomas Road in west Phoenix. The building, which was nearly 40 percent leased at the time of the ground breaking at the beginning of 2018...»
 
The books are closed on the residential real estate market for 2017 and now the numbers are being digested to help guide outlooks for this year. Scottsdale-based RL Brown Housing Reports is out with its year-end data. We talked to Greg Burger, president of RL Brown and Home Builders Marketing, about 2017 and what to look for in 2018...»

SOLD: Gilbert Fiesta Shops II | Anchored by Fry’s (Kroger) Grocery Store | Gilbert, AZ

 

ORION Represents Seller in Fry's Shadow Anchored Shops

January 18, 2018 | Gilbert, AZ

GILBERT – Located along the Loop 202 retail corridor in Gilbert, within proximity to multiple new developments of retail, office, automotive, education, and residential, Gilbert Fiesta Shops sold for $3,500,000 at a 7% cap rate. The 21,900-square foot shopping center was built in 2005 in the booming southeast valley of Phoenix. Gilbert Fiesta Shops is leased by both local and national tenants, including Leslie’s Swimming Pool Supplies, State Farm, and Battery Giant. The property was 100% occupied at close of escrow.

Nick Miner, CCIM, and Andrew Harrison of ORION Investment Real Estate represented the Seller in the transaction. Miner said, "The Seller purchased this property as a distressed center with high vacancy in 2015. The Seller was able to release the property and capitalize on the value created by the Seller’s repositioning plan. The Buyer utilized a reverse 1031 exchange to purchase the property.  The Buyer liked the stable cash flow that the property will be offered, as well as the location in the fast growing City of Gilbert, Arizona."

 The Seller was locally-based Gilbert Fiesta II Lots 2 & 3 LLC. The Buyer, Grove Arizona, LLC, was represented by Sean Bishop, CCIM of Lee & Associates.

Nick and Andrew are representing the Seller of the PAD building, currently in escrow with an owner/user. For more information on their listing, please: click here

SOLD: $3,500,000 ($160/SF)
ADDRESS: 183-195 East Williams Field Road
BUILDING SIZE:
 21,900 SF
YEAR BUILT: 2005

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Commercial Real Estate & Business News – January 18, 2018

Retail industry sales are expected to remain on the upswing for the next several years and so are store openings. A new report by Zebra Technologies, conducted with IHL Group, projects that retail industry sales in North America and EMEA regions (Europe, the Middle East and Africa) will rise 3% annually through 2021, led by a shift to greater e-commerce/omnichannel sales volume...»

Over the next 12 months, investors and lenders will be evaluating rising interest rates, the rent growth slowdown and the rise of the industrial sector before deploying capital. While caution is still a buzzword in the industry, the lending environment this year should be relatively similar to that of 2017...»

Phoenix has a strong shot at landing a new Apple Inc. campus, according to a leading national site-selection expert. Apple Inc. (Nasdaq: AAPL) said Wednesday it plans to open a new, large campus in the U.S. as part of push to hire 20,000 new workers and infuse $350 billion into the American economy after tax cuts passed by President Donald Trump and Congress...»

The Phoenix data center market, which has a strong 2018 ahead, ended 2017 with a bang: a major wholesale data center agreement and a major development approved in December. H5 Data Centers, a national co-location and wholesale data center provider, inked a wholesale data center agreement with LeaseWeb USA Inc., a cloud-hosting brand. Under the deal, LeaseWeb will expand to H5 Data Centers' Phoenix data center location at 2600 West Germann Road in Chandler...»

 

In 2017, the Phoenix industrial market achieved its largest annual net absorption gain in market history, reaching 9.8 million square feet by year end and marking the fourth consecutive year of annual net absorption totaling 6.0 million square feet or more - a feat not reached since 2004 - 2007...»

Commercial Real Estate & Business News – January 17, 2018

"Stable." That's the one word that encapsulates the anticipated state of the multifamily sector this year, according to Greg Willett, chief economist at RealPage, a Richardson, Texas-based firm which provides property management software solutions. That was also the sentiment expressed by other industry experts as well, when asked for their forecasts for the upcoming year. "The reality is multifamily going into 2018 is going to be a lot of the same"...»

After a robust 2017, commercial construction companies are anticipating an even stronger 2018, with the majority reporting they plan to expand their staffs, according to Dodge Data & Analytics. As professionals seek to map out 2018 and beyond, there are a number of trends shaping the construction industry...»

If you didn't already know it, downtown Phoenix is hot - not only for its deluge of 4,477 housing units planned, under construction or built and new restaurants opening almost daily, but the number of tech companies relocating to the central city core. The downtown area has seen a 318 percent increase in tech companies since 2012, has been ranked third for high-tech job growth and fourth for the best metro area for young professionals, said Shannon Selby, the economic development program manager for the city of Phoenix...»

Arizona is getting its first resort with an indoor water park. Great Wolf Resorts is a growing chain of popular family hotels that debuted in the Midwest and has expanded to warm-weather spots including southern California. It plans to open a location on the Salt River Reservation adjacent to Scottsdale in the second half of 2019. The 350-room all-suite hotel will be built next door to Salt River Fields, the Arizona Diamondbacks' and Colorado Rockies' spring-training home...»

Gilbert-based Christopher Todd Communities opened the leasing office at its first single-family home luxury rental development in Surprise. The real estate company was created by Todd Wood, who previously owned Alpine Valley Bread Co. Wood was one of the pioneers in the organic food trend. Mesa-based Alpine Valley was bought by Flowers Foods in 2015 for $120 million...»

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