Author: BEX Staff

Economic News  Pandemic Exposes Stress in Commercial Property Financing  The severity of the COVID-19 crisis has revealed extreme stresses in one of its primary sources of commercial property financing; the $1.4T market for commercial mortgage-backed securities. “I don’t think anyone foresaw the devastation that COVID would wreak on commercial real estate and the CMBS market,” says Lea Overby, an analyst at Wells Fargo who has covered the sector for almost two decades. (Source: Financial Times)  A Suburban Shift in Homebuilding  Evidence of a suburban shift for consumer home buying preferences as a result of the COVID-19 pandemic can be found in the second quarter NAHB Home Building Geography Index. The HBGI is a quarterly measurement of building conditions across the country and…

Source: NCCER and Build Your Future  Spearheaded by NCCER and Build Your Future, the eighth annual Careers in Construction Month, will return this October. The campaign was launched to increase public awareness, inspire the next generation of craft professionals and make an impact on the perceptions of a career in construction. To date, 39 states have filed proclamation requests and are ready to begin celebrating rewarding careers and recognizing the men and women who build America.  Although construction offers job satisfaction, lucrative salaries and high skills, it is facing a critical shortage of workers. To help build a pipeline of talent, BYF is encouraging partnerships between industry and education this CICM. …

Source: Associated Builders and Contractors  National nonresidential construction spending fell 1.2 percent in July, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, spending totaled $809.1B for the month.  Of the 16 nonresidential subcategories, 10 were down on a monthly basis. Private nonresidential spending declined 1.0 percent while public nonresidential construction spending was down 1.3 percent in July.   “There are two primary countervailing forces influencing the trajectory of nonresidential construction spending,” said ABC Chief Economist Anirban Basu. “The first is a force for good and involves the reopening of the economy and associated rebound in overall economic activity. Despite the lingering pandemic,…

Awards & Accolades  1. Avondale’s Festival Fields Park, which recently underwent a $19M expansion and renovation, was named Outstanding Facility of the Year by the Arizona Parks and Recreation Association.  2. The AZ Water Association has recognized EPCOR USA with its 2020 Water Project of the Year Award for EPCOR’s $29M expansion of the White Tanks Regional Water Treatment Plant in Surprise.  Groundbreakings  3. Wood Partners has begun construction on the 385KSF, 330-unit Alta Raintree multifamily development located at 688 E. Raintree Drive, Scottsdale. The project is scheduled to be completed in fall 2021.  4. The construction of the Downtown Links project in Tucson started last Monday to one day connect motorists from Barraza-Aviation Parkway to Interstate 10 and relieve downtown…

By Tasha Anderson for AZBEX  A new hotel is being proposed within the Cortaro Ranch Phase II development and will be located just north of Cortaro Farms Road and west of Cerius Stravenue.  Engineer and project applicant, EPS Group, Inc., on behalf of developer, Investment Resources Corp., is requesting approval of a development plan for the hotel, to be branded as a Home2 Suites by Hilton.  The Marana Town Council had approved a development plan for Lots 1-6 of the Cortaro Ranch Phase II project back in April 2019. At the time, a hotel was not discussed as one of the land uses; however, according to the August 26th, 2020 Marana Planning Commission agenda, “The property owner, Cortaro Commercial JV, LLC,…

Budget, Policy & Stimulus News  New PPP Rules Could Change Forgiveness Calculations  New rules issued by the Small Business Administration could make some Paycheck Protection Program borrowers’ rent or mortgage interest payments ineligible for forgiveness. Generally, the rules of the COVID-19 stimulus program deem rent and mortgage interest as expenses that count toward loan forgiveness, so long as 60 percent of the proceeds are spent on payroll. But the federal agency overseeing the program announced a new position on those outlays for businesses that have a landlord-tenant agreement between related parties. (Source: Phoenix Business Journal)  Fed Rate Policy Shift Allows Inflation to Rise  The Federal Reserve on Thursday adopted a…

By Jeff Metcalfe for The Arizona Republic  Mesa voters rejected a ballot proposal to build a youth sports megacomplex, so a private investment group is taking on an even grander project.  Legacy Cares, Inc., an Arizona based non-profit organization, closed last week with Ziegler, an investment bank, on $250M financing to build a family sports and entertainment complex in southeast Mesa.   The Legacy Sports Park will cover 320 acres at Ellsworth and Pecos, east of Mesa Gateway Airport on the former General Motors Proving Ground. The complex is 50 acres larger than the ESPN Wide World of Sports complex in Orlando, Florida.  A groundbreaking ceremony is planned for mid-September with the park, to…

By Adam Baugh for Withey Morris PLC  At the beginning of COVID, when the world suddenly halted in March, my children and I decided to build a bike shed.  It was a great time bonding with my daughters, but the end product looked nothing like the fancy shed we intended. Corners weren’t square, hinges didn’t close evenly, and several wood boards were warped. I enjoyed the family time, but at the end of the day, I really wished I had hired a professional to construct it, or at least help us build it with quality plans.   This experience reminds me of the many times I’ve…

Source: Arizona Multihousing Association  Each spring, the Arizona Multihousing Association (AMA), the statewide trade association for the apartment industry, hosts its annual Tribute Awards program.  Arizona’s apartment industry annually generates 22,000 jobs, $699M in wages and $3.8B in economic output. Events such as the Tribute Awards are important because they elevate the industry and create motivation for improvement for more than 2,300 AMA members.  The Tribute Awards are about more than one night of recognition – being a nominee, a finalist or award recipient creates new opportunities for mentorship, leadership development and pathways for promotion.  Due to the current climate, the 28th Annual AMA/Cox Communications Tribute Awards ceremony took place virtually on…

Giving Back  1. Resolution Copper is donating up to $780K this year to assist organizations throughout the broader community during the ongoing COVID-19 crisis. Groups that have received Resolution Copper’s COVID-19 relief funds include Local First Arizona, Cobre Valley Youth Club, Community Alliance Against Family Abuse, Gila Safe Haven Domestic Violence Safe Home, Hayden Senior Center and others.  Awards & Accolades  2. Phoenix Business Journal has released the honorees for Outstanding Women in Business. Some of the honorees include:  Patricia Lee Refo – Snell & Wilmer  Sarah Weiss – Elite Roofing Supply  Sandra Watson – Arizona Commerce Authority  Alaina Chabrier – SRP  Carrie Smith – Foundation for Senior Living  Company News  3. Mai Vu, Brittany Trotter and John Garigen, a trio of Valley commercial…