Author: BEX Staff

Sales Transactions 1. QTS Realty Trust has purchased a nearly 400-acre property between Bethany Home and Camelback roads west of the Loop 303 freeway for $255M. The sellers were Merit Partners, Inc. and First Industrial Realty Trust, Inc. Plans for the site are unknown, but speculation points to potential industrial development, possibly a data center. 2. A subsidiary of BentallGreenOak has purchased Lakin Park Building IA along Cotton Lane near MC 85 in Goodyear for $109.2M. The seller was an entity linked to Walton Street Capital. Cushman & Wakefield’s Will Strong and Greer Oliver brokered the transaction, supported by the…

By Roland Murphy for AZBEX A foursome of experts from across the industry shared their thoughts and experiences on the current state of construction costs at the June BEX Companies Leading Market Series discussion this week. Moderated remotely by BEX President and Founder Rebekah Morris, the in-person panel consisted of: Julian Anderson, president of Rider Levett BucknallChad Halmrast, director of preconstruction for TDI Industries;R.J. Radobenko, president of Global Roofing Southwest; andBlake Wells, VP of construction for LGE Design Build. After presenting her standard market history overview, Morris gave the audience and panel a snapshot into the increase in entitlement and…

By Roland Murphy for AZBEX Developers continue to swing for the fences around Ballpark Village in Goodyear, with three new multifamily projects totaling more than 1,000 units in the planning stages. On July 7th, HCW Development Company issued a press release announcing four new projects divided across 27.43 acres at the NEC of Estrella Parkway and Yuma Road as part of Ballpark Village’s expansion. Taken all-together, the projects will deliver 543 residential units in two complexes. These will be followed by a retail development and a hotel with a total site area of 7.73 acres. A third development totaling 535…

By Roland Murphy for AZBEX The Rider Levett Bucknall North America Quarterly Construction Cost Report for Q2 2022 shows comparative costs in Phoenix have risen 6.37% since July of last year. The national escalation rate was 7.5%. The Comparative Cost Index “tracks the ‘true’ bid cost of construction, which includes, in addition to costs of labor and materials, general contractor and sub-contractor overhead costs and fees (profit). The index also includes applicable sales/use taxes that ‘standard’ construction contracts attract.” Phoenix ranked 11th of the 12 metros RLB tracks. With a percent increase of 4.59, only Honolulu was lower. Seattle was…

By Associated Builders and Contractors Associated Builders and Contractors reports that its Construction Backlog Indicator fell 0.1 months in June and stands at 8.9 months, according to an ABC member survey conducted June 21st to July 5th. The reading is up 0.4 months from June 2021. ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels declined in June. The indices for sales and staffing remain above the threshold of 50, indicating expectations of growth over the next six months, while the reading for profit margins fell below the threshold of 50 for the first time since October…

A lawsuit filed in 2017 by a group of school districts and education support groups alleging state budget cuts deprived schools of necessary capital funding for more than a decade has been given a tentative September trial date, with a possibility of moving to January. Maricopa County Superior Court Judge Daniel Martin ruled last month that the court will examine whether or not the current finance system met minimum upkeep standards for schools in the state. The trial standard he set for consideration must establish minimum funding standards and provide sufficient funding so that districts can meet them, and that…

Groundbreakings 1. The next phase of development at Scottsdale One – a Hilton Home2 Suites hotel and retail, hospitality and medical office space – has begun. Developer DMB Associates, Inc. added $4M in improvements to the site’s existing infrastructure to facilitate the project. 2. Kitchell Development recently began construction on Elliot 94, a two-building, 214.5KSF industrial distribution complex at the NWC of 94th Street and Elliot in Mesa. Elliot 94 is a joint venture of Phoenix-based Kitchell Development and Park Ventures. 3. TYR Tactical recently broke ground on a third operations center: TYR 3. Half the space will be used for operations, while the other half will serve…

Developer The X Company is getting ready to break ground on Phase II of its X Phoenix co-living and multifamily development near 2nd Avenue and Van Buren. Phase I began leasing earlier this year and has exceeded expectations, according to company officials. X Phoenix consists of both traditional apartments and “co-living” units, where residents can lease a bedroom rather than an entire unit. The model is based on private student housing developments and has seen a high degree of acceptance in some smaller markets, particularly those with significant student populations transitioning out of college. Co-living spaces allow residents to have…

The Buckeye Planning and Zoning Commission’s only agenda item this week is a site plan approval hearing for the two-building Mission Park II and III industrial development on Perryville Road. The first building is planned for 200KSF at the SWC of Perryville and McDowell roads. The second is planned for 525KSF at the NWC of Perryville Road and Roosevelt Street. The 3.44-acre total site is bisected by I-10. The site plan approval request was submitted by Ware Malcomb on behalf of Martens Development Company (formerly Marwest Enterprises, LLC). The property has a planned area development overlay and business park zoning…

The Mesa City Council has approved budgets for the three Community Facilities Districts for the 2022-2023 Fiscal Year. Secondary property tax rates of $4.15/$100 of net assessed limited property value were also approved for all three districts. The Cadence Community Facilities District budget totaled slightly more than $9M, with $7.4M for public infrastructure costs, including $5.87M from general obligation bonds for road improvements and other public infrastructure. The CFD tax levy is $1.2M. The Eastmark CFD No. 1 budget was slightly less than $33.3M. A total of $25M is dedicated to public infrastructure expenses, including $16.7M in general obligation bonds…