Author: BEX Staff

Economic News  CBO Predicts Mid-year Rebound  Recent estimates from the Congressional Budget Office, show the U.S. may return to pre-pandemic levels by the middle of this year. Gross Domestic Product is expected to increase an average of 1.7 percent a year from 2020 to 2024. The improved GDP rebound is caused for optimism, but output will still be lower than it would have been had the pandemic not taken place. (Source) 

By ClearSky Health  ClearSky Health has announced plans to build an inpatient rehabilitation hospital in Avondale. The hospital is expected to create about 100 new healthcare-related jobs.  ClearSky Rehabilitation Hospital of Avondale will be a 30-bed facility located at 109th Avenue and West McDowell Road. It will provide specialized rehabilitative care to individuals living with disabling injuries or illnesses.  The planned 43KSF medical facility will feature private rooms, a rehabilitative gym, dining room, and an activity of daily living space. Groundbreaking is planned for April, with construction expected to take about 13 months.  ClearSky Rehabilitation Hospital of Avondale is expected to treat about 650 patients annually. (Source) 

By Associated Builders and Contractors  National nonresidential construction spending declined 0.8 percent in December 2020, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $790.2B for the month, 4.8 percent lower than in December 2019 but 3.8 percent higher than in December 2018.  Spending fell on a monthly basis in nine of the 16 nonresidential subcategories. Private nonresidential spending was down 1.7 percent, while public nonresidential construction spending was up 0.5 percent in December. (Source) 

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…