Author: BEX Staff

Sales Transactions 1. Millburn & Company purchased Heritage at Deer Valley, an 832-unit multifamily community at 3010 W. Yorkshire Drive, Phoenix, for $178.5M. CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of Phoenix Multifamily Institutional Properties represented the seller, Priderock Capital Partners. The transaction represents the highest sale price for a single multifamily community in Phoenix history. 2. Oxford Properties Group purchased Ten01 on the Lake, a 523-unit multifamily community at 1001 E. Playa del Norte Drive, Tempe, for approximately $146M. CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter, and Matt Pesch of Phoenix Multifamily Institutional Properties represented the…

By Tasha Anderson for AZBEX  The single-family for rent model is making its way to Casa Grande as a new community is being proposed for a +/- 10.6-acre site at the NWC of Florence Street and Ash Avenue, south of the Downtown Area.  Applicant Hilgart-Wilson, on behalf of property owner, LKY Development Company, Inc., is requesting a zone change on the site from Garden and Light Industrial to a Planned Area Development in order to allow the 116-unit, high density, single-family build-to-rent community currently called Florence & Ash.  Florence & Ash is proposed to include 28 one-, 60 two-, and 28 three-bedroom units at an overall density of 11.0 dwelling units per acre. The…

Budget, Policy & Stimulus News  IRS Extends Opportunity Zone Deadlines  The IRS has again extended the deadline to invest in qualified opportunity zones. The deadline was extended to March 31st for investors who’s initial 180-mandated investment period ended after April 20th, 2020. (Source)  Phoenix OKs Distribution for $51.1M in Rent, Utility Assistance  Phoenix City Council has approved a plan to distribute $51.1 in federal funds to aid residents with rent and utility payments. Applications are expected to start March 8th. The city has partnered with community organization Wildfire for help in the distribution. The city’s Human Services Department will receive $26M, and $25M will go to Wildfire. The…

By Arizona Commerce Authority  Viavi Solutions Inc. announced its Optical Security and Performance Products segment plans to establish a new manufacturing facility in Chandler to support growing demand for its technologies. VIAVI also plans to transition its headquarters to the new facility, which is anticipated to house at least 100 employees by 2022.   The company has already relocated its corporate headquarters to a temporary office in Scottsdale. The company’s San Jose office will continue to operate as a functional center and sales office.  VIAVI is a global leader in network test, monitoring and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and…

The recently released NAIOP Research Foundation “Economic Impacts of Commercial Real Estate, 2021 U.S. Edition,” study lists Arizona in eighth place, nationwide, contributions to state GDP for both warehouse and manufacturing development. Data for 2020 showed commercial construction and development across the manufacturing, warehouse, office and retail sectors in Arizona contributed $11B to the economy. Nationally, contributions from those factors contributed $1.01T to the GDP. (Source) 

By CBRE Research  The spread of COVID-19 and the resulting government restrictions precipitated a pronounced decline in commercial real estate investment activity in the region. Investment volumes for the Phoenix metropolitan area in 2020 totaled $9.0B, a 20 percent decline from 2019 levels.  The decline in investment activity was most pronounced in late spring as investors pressed pause in the face of a rapidly changing macroeconomic landscape. Trading resumed in earnest in the second half of the year, and September, October and December volumes exceeded 2019 levels (by 37 percent, 31 percent, and 6 percent respectively).   Activity throughout the year was driven by capital interest in favored asset…

Awards & Accolades  1. In recognition of its “state-of-the-art construction and contemporary, elegant design,” the We-Ko-Pa Casino Resort has been named a finalist for AZRE Magazine’s annual Real Estate and Development (RED) Awards. Winners will be announced during a live Hopin virtual event on March 11th at 3:30 p.m., and all finalists will be featured in the March/April 2021 edition of the magazine. The We-Ko-Pa Casino Resort opened last October and was constructed over a two-year period leveraging the talents of Thalden Boyd Emery Architects, W.E. O’Neil and Kitchell Construction.  Groundbreakings  2. Queen Creek has broken ground on the permanent Fire Station 2, which will replace interim Fire Station 2 at 24787 S. Sossaman Road. Perlman Architects designed the station and Willmeng Construction Inc. will…

By Tasha Anderson for AZBEX The City of Phoenix heard and approved a request to rezone approximately 91.16 acres at the NWC of Tatum Boulevard and Cactus Road at its February 4th Planning Commission virtual public meeting. Approval of the request, which was to rezone the property from Regional Shopping Center, Planned Community District to Intermediate Commercial, High Rise, Density Waiver, Special Permit, Planned Community District, brings developers Macerich and PV RE Devco, LLC one step closer to their plan of redeveloping the failing Paradise Valley Mall into a vibrant, high-quality mixed-use development. The redevelopment is proposed to include a…

Budget, Policy & Stimulus News Arizona PPP Loans Jump From January 24th-31st, Paycheck Protection Program loans in Arizona surged from 4,640 approvals to 10,279, according to information from the Small Business Administration. Loan values grew from $22M to more than $873M. National data show most applications are for second loans and are averaging significantly larger than loans in the last year’s first wave. (Source) Phoenix Has Spent 85 Percent of CARES Act Funds To date, Phoenix has spent nearly 85 percent of the $293M it received under the $2T Coronavirus, Aid, Relief and Economic Security Act. Outlays included $90.5M for…

By Associated Builders and Contractors The construction industry lost 3,000 jobs on net in January 2021, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. During the last nine months, the industry has added 857,000 jobs, recovering 77 percent of the jobs lost during earlier pandemic stages. Nonresidential construction employment fell by 1,900 jobs on net in January. Heavy and civil engineering added 2,000 jobs for the month, but those gains were offset by losses in nonresidential specialty trade and nonresidential building, which lost 3,300 and 600 jobs, respectively. The…