Author: BEX Staff

Source: JLL  Despite a sluggish first half of 2020, the Phoenix office market showed signs of growth during the third quarter, posting just over 300KSF of positive absorption.   The Chandler submarket led the way in Q3 with over 176KSF of net gains coming from the finance and insurance sectors. The Tempe submarket was a close second experiencing more than 100KSF of occupancy growth. During the same time more than 219KSF of new construction was delivered in Tempe, 65 percent of which was pre-leased by Infosys and ASU in the Novus Innovation Corridor.   While a slew of companies put sublease space on the market in Q2 due to the uncertainty brought on by the COVID-19 pandemic, some…

Groundbreakings  1. Sundt Construction, Inc. recently started expanding the campus of Royal Oaks, a Sun City retirement community. Sundt will help shape Royal Oaks’ newest neighborhood, Inspirata Pointe, by adding four new independent living buildings and new pavilions to the westside neighborhood. On the eastern edge of the campus, Sundt will return to the Friendship House to expand the space and build two new therapy buildings for rehabilitation and wellness services.  Progress Reports  2. Mountain Pacific Opportunity Partners, in partnership with Banyan Residential, announced the closing and commencement of vertical construction for the $50M Banyan Washington, a 223-unit multifamily development at 5321 E. Washington Street, Phoenix. The project broke ground in…

By Tasha Anderson for AZBEX  A new Class A multifamily development is being proposed for an 11.01-acre site at Black Canyon and Dynamite Boulevard in Phoenix.   Developer, DHI Communities, part of the D.R. Horton homebuilding company, recently submitted plans to the City of Phoenix and is requesting rezoning the property from S-1 (Farm or Ranch Residence) to R-3A (Multifamily Residence District) in order to develop the apartment complex, called Ascend at Dynamite & Black Canyon. Two large lot single-family homes currently sit on the property.  Ascend at Dynamite & Black Canyon is proposed as a 260-unit apartment complex comprised of 130 one-, 114 two- and…

Budget, Policy & Stimulus News  Tempe Launches $1.1M Small Business Grant Program  The City of Tempe has allocated $1.1M to create the Tempe Small Business Grant Program to help businesses impacted by COVID-19. The program will assist small businesses with up to $10K in funding. Awards are based on $1,300/per full-time employee, up to a maximum of $10K. (Source: City of Tempe)   AZ Supreme Court Refuses Eviction Ban Case  The Arizona Supreme Court won’t overturn the order by Gov. Doug Ducey blocking residential evictions. Justices spurned a request by the Arizona Multihousing Association to review the governor’s actions and determine if he is within his legal rights in saying that landlords could not oust tenants who have not been paying…

By Joe Dyton for The Broker List  Mall owner Simon Property Group and Amazon are in talks to turn J.C. Penney and Sears stores into distribution centers, according to The Wall Street Journal. Both department store chains filed for Chapter 11 bankruptcy and closed stores across the country. Simon malls have 63 J.C. Penney stores and 11 Sears, according to the company’s May public filing. The number of stores Amazon is interested in has not been reported.  A potential deal falls in line with Amazon’s plans to create more distribution hubs close to residential to accelerate deliveries. It goes against Simon’s and other malls’ business model however, which is rely on anchor department stores to…

By Peter Aleshire for Payson Roundup  Gila County is seeking a bond issue to pay off a $15.6M debt to the state retirement system for sheriff’s deputies, detention officers and dispatchers, Supervisor Woody Cline told the Payson Tea Party during a recent campaign appearance.  Cline said the bond issue would allow the county to finance its current estimated debt to the Public Safety Personnel Retirement System at less than 3 percent annual interest — much below the 7.3 percent interest the retirement system is currently charging the county to cover the estimated unfunded balance.  The bond issue could save the county $7M over the next 15 years, he said.…

Awards & Accolades  1. AZ Business, in partnership with BestCompaniesAZ, has selected Suntec Concrete as one of the Most Admired Companies of 2020. Annually, Suntec puts on a teacher appreciation program, through which employees can nominate local impactful teachers who are then recognized. The company also supports organizations that promote teachers and careers in construction.  Boards & Commissions  2. Coe & Van Loo Consultants Inc. announced that Kristina Locke has been inducted to the American Public Works Association (APWA) Board of Directors.  3. Barbi Reuter, CEO, Chairman and Designated Broker of Cushman & Wakefield | PICOR in Tucson has been named CREW Network President-Elect for 2021. She will also be the first Tucsonan to lead…

Sales Transactions  1. Cortland Partners purchased Metropointe Apartments, a 408-unit multifamily community at 7017 S. Priest Drive, Tempe, for $96.75M. Steve Gebing and Cliff David with Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller, Rockwood Capital, and procured the buyer. The complex will now go by the name, Cortland South Mountain.  2. Mack Real Estate Group purchased the Hub at Goodyear, a 794KSF speculative industrial development at the corner of Bullard Avenue and Van Buren Street for $59M, from Walton Street Capital. Pat Feeney, Dan Calihan, Rusty Kennedy and James Cohn of CBRE Group Inc. in Phoenix represented the buyer.  3. Cloud Peak Development, LLC purchased Paradise Valley Plaza, a…

By Tasha Anderson for AZBEX  Plans for a large expansion to the Banner Gateway Medical Center have recently made their way to the Town of Gilbert’s Planning Commission on October 7th.  The original Banner Gateway Medical Center, located at 1900 N. Higley Road, opened in the fall of 2007 and currently consists of a five-story patient tower housing 180 beds, and a two-story Diagnostic & Treatment (D&T) facility. According to the project documents, the original master site plan allowed for “two additional bed towers and the expansion of the D&T facility.”  Banner Health’s expansion plans include the construction of one new five-story patient tower consisting of 181 new patient beds at full build-out…

Economic News  No-Anchor Retail Could Be Better Bet  Conventional wisdom would dictate that in times of economic turbulence, a retail landlord might prefer to have an anchor tenant that offers essential services, like a grocery store. But one observer thinks that during the COVID-19 crisis, non-anchored retail has done better than anchored at adapting to an uncertain environment. (Source: GlobeSt.com)  Where Will the Post-COVID Opportunities Be?   AZRE Magazine recently posed questions to a roundtable of NAIOP Arizona members, looking for their thoughts on the market, how it will look coming out of the pandemic and where the real estate opportunities are for those ready to take the lead in…