Author: BEX Staff

By Colliers International  The medical office market in Greater Phoenix remains strong as population grows and companies relocate to the area. Demand for healthcare is growing, which is projected to drive demand for medical office space throughout 2021.  Net absorption of medical office space during fourth quarter reached 112KSF, making every quarter in 2020 a positive net absorption timeframe. During 2020, we posted a total of 48.6KSF in net absorption.  Vacancy of medical office space dropped to 13.2 percent at year-end. Available sublease space declined by 16.0 percent over-the-quarter and is 32.2 percent higher than year-end 2019. The total amount of sublease space available in the market equates to less than…

Groundbreakings  1. ViaWest Group has broken ground on Central Logistics Center, a 25-acre land site at the SEC of Central Avenue and Buckeye Road. The project currently includes over 12-acres of vacant, developable land; a fully leased, 196.7KSF, 30’ clear, cross-dock warehouse; and a vacant 76,301 square-foot freezer storage facility in need of renovation.   2. McShane Construction Company is underway on a new three-story, 242-unit apartment community in Phoenix, on behalf of LIV Development. The apartments will be completed in August 2022. The architect of record is Humphreys & Partners Architects.  3. The Arizona Department of Transportation is set to begin work on replacing Virgin River Bridge No. 1 along Interstate 15 with a brand-new bridge that…

By Tasha Anderson for AZBEX  The Boyer Company is planning a multifamily and commercial development as part of the Rio 2100 mixed-use development in Tempe.  Known as Rio East, the project will be located on 14.2 acres at 98 South River Drive. Applicant, Quarles & Brady LLP, on behalf of The Boyer Company, is requesting a Zoning Map Amendment from Heavy Industrial to Mixed-Use, High Density District; a Planned Area Development Overlay for three lots; and a Development Plan Review approval, including site plan, elevations, and landscaping for the project.  The Rio East site consists of three lots. Lot one consists of an existing 174KSF office building and 260.9KSF parking garage that…

By The Mahoney Group   These have not been kind times to apartment landlords, multifamily real estate investors and owners.  The COVID-19 pandemic spurred eviction moratoriums nationwide, leaving many owners with no choice but to continue to pay to maintain and finance their properties with less rent coming in and no recourse to remove non-paying tenants. Insurance premiums, meanwhile, have been rising.  At the same time, a far-less-noticed threat to their investment can be found in the fine print of their insurance policies: Exclusions that are increasingly cropping up for assault and battery claims.  Landlords can be and have been sued over claims that they’ve…

By Equipment Leasing and Finance Association  The Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index – the MLFI-25 – which reports economic activity from 25 companies representing a cross section of the $900B equipment finance sector, showed their overall new business volume for December was $12.1B, down six percent year-over-year from new business volume in December 2019. Volume was up 66 percent month-to-month from $7.3B in November in a typical end-of-year spike. Cumulative new business volume for 2020 was down almost six percent compared to 2019.  Receivables over 30 days were 2.20 percent, down from 2.30 percent the previous month and unchanged from the same period in 2019. Charge-offs were 0.59 percent, down from 0.61 percent the previous month and…

Giving Back  1. The application portal for the SAME 2021 Engineering and Construction Camp season has opened. The deadline is March 15th, 2021. SAME has been supporting science, technology, engineering, and math (STEM) events for more than 30 years and conducting camps for almost 20 years. SAME camps offer a unique curriculum that features hands-on activities conducted in a competitive environment to promote teamwork, leadership, project management, and problem solving.   Awards & Accolades  2. Fidelity National Title Agency announced that one of its valued partners, Andrew Bloom, CEO/Senior Partner/Co-Founder of BVO Luxury Group at Keller Williams Arizona Realty, has surpassed a historic milestone of $1B in closed MLS residential real estate deals. Bloom becomes the fourth…

Sales Transactions  1. An affiliate of The Milestone Group has purchased two multifamily assets totaling 448 apartment units through a recapitalization valued at approximately $85M. The first is Pavilions at Arrowhead, a 248-unit garden-style complex at 7400 W. Arrowhead Clubhouse Drive, Glendale. The second is Alta Mesa, a 200-unit garden-style complex at 1865 N. Higley Road, Mesa. The sellers were not disclosed.  2. Jason McCool, the founder of Executive Coatings and Contracting LLC, purchased Stadium Vue Townhomes, a 163-unit, Class A multifamily community at 7677 W. Paradise Lane, Peoria, for $47.3M. Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE Phoenix Multifamily Institutional Properties represented the seller, Sunroad Enterprises.  3. An undisclosed, Arizona-based buyer purchased Sanctuary on Broadway, a 240-unit…

By Tasha Anderson for AZBEX  The Arizona Department of Transportation has recently issued a Request for Qualifications for a firm to provide final design services on the State Route 303 Loop (Estrella) Phase One: MC 85 – Van Buren Street project.  ADOT first advertised for the RFQ on January 26th and plans to issue another newspaper advertisement on February 2nd.  The approximately $167M project includes construction of three general purpose lanes in each direction from north of MC 85 to Van Buren Street, with a transition into Cotton Lane near Elwood Street in Goodyear. According to the RFQ, some other features of the freeway project are expected to include: …

Economic News  Shorter Leases = More Difficult Underwriting  Among the ongoing debates and difficulties facing the future of the office market in what wake of the ongoing pandemic, many tenants are opting for shorter lease terms to maintain options in determining their office footprints down the road. This is creating challenges for investors and lenders when it comes to underwriting deals. Uncertainty about the future was a key contributor to office property sales’ 40 percent drop over the course of 2020. (Source) 

By Tasha Anderson for AZBEX  Arizona’s seasonally adjusted unemployment rate decreased to 7.5 percent in December 2020, from November 2020, according to the latest report published by the Arizona Office of Economic Opportunity.   The national rate remained at 6.7 percent from November. In December 2019, the state had a seasonally adjusted rate of 4.5 percent, and the national was at 3.5 percent.  The state had a net gain of 6,300 non-farm jobs over the month. “Historically (2010-2019), Nonfarm employment has averaged a gain of 5,500 jobs in December,” the report states. Trade, Transportation & Utilities had the largest net gain with 9,800 jobs, followed by Education & Health Services with a gain of 4,000. Construction had the largest net loss of 5,100 jobs for the month.   Trade, Transportation & Utilities took the top spot in job gains from December 2019 to December 2020 with a total of 22,700, while Leisure & Hospitality took the top spot in job losses over the year with 44,800. Construction…