Author: BEX Staff

Source: City of Phoenix  In Phoenix, the COVID-19 pandemic and economic downturn is intensifying the already existing housing crisis. Phoenix residents, as well as residents in other cities across the country, are experiencing job losses, which can make it even more challenging to afford a place to live.  According to Housing and Urban Development’s Fair Market Rents, in Arizona the cost of a two-bedroom apartment is $1,097. To afford this level of rent, as well as utilities, a household would need to earn $43,892 annually, or an hourly wage of $21.10 – more than $9 (more than) Arizona’s minimum wage.  To assist residents with this challenge, Phoenix Mayor Kate Gallego announced the city’s first-ever Housing Phoenix Plan, which establishes…

Groundbreakings  1. Nikola Corporation is one step closer to bringing a 1MSF manufacturing facility to Coolidge, following an official groundbreaking ceremony on its approximate 430-acre parcel. The first phase of construction is scheduled for completion in late 2021, with the second phase projected to be complete within the following 12-18 months.  2. A long-awaited Aldi grocery store is being built at the Sunrise Promenade shopping center in Peoria. Despite signs that Aldi’s plans were dragging, this store is expected to be open in December.  3. A groundbreaking ceremony was held July 9th for the roughly $25M, three-story, 90KSF Highgate Senior Living community on McMillan Mesa at 1831 N. Jasper Drive. The project is expected to…

By Tasha Anderson for AZBEX  Global energy storage developer, Invenergy, LLC is planning a new photovoltaic solar energy production facility on approximately 1,642 acres of private land north and south of Highway 287 just west of the Eleven Mile Corridor in Pinal County.  The developer, also noted in the project documents as SunDog Energy Center LLC, is requesting a Major Comprehensive Plan Amendment to change the land use designation from Moderate Low Density Residential to Green Energy Production. Pinal County heard the request at its July 16th Planning and Zoning Commission meeting as a work session item.  The project, also called SunDog Energy Center, will be a 200…

Economic News  No Crash Predicted for Metro Phoenix  The Phoenix area’s housing market is showing no signs of crashing despite job losses and other economic hits because of COVID-19. Contracts to buy Phoenix-area homes priced above $300K soared over the past week, according to the Cromford Report. (Source: AZCentral)  Sr. Housing Occupancy Hits 15-year Low  Occupancy in senior housing has hit a 15-year low given the threat to older Americans from the pandemic. Since 2008, the number of assisted living facilities and independent living centers have seen unrelenting growth, jumping 33 percent. But COVID-19 has added a new twist for the industry and consumers. Occupancy slid 2.8 percentage points to 84.9 percent…

By Erin Thornburn for AZ Big Media  Remember the lyrics from Janet Jackson’s “Love Would Never Do (Without You)?”  “They said it wouldn’t last. We had to prove them wrong … There’s no easy explanation for it. But whenever there’s a problem, we always work it out somehow.”  If the West Valley could sing, she would likely select this tune (and maybe sing the praises of regional economic developers, too).  After all, not everyone may have anticipated the kind of growth the West Valley has experienced — currently with upward of 1.6 million residents, a population that is projected to rise to 2,094,824…

Source: NAHB Now  In a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest NAHB/Wells Fargo Housing Market Index. The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation.  “Builders are seeing strong traffic and lots of interest in new construction as existing home inventory remains lean,” said NAHB Chairman Chuck Fowke. “Moreover, builders in the Northeast and the Midwest are benefiting from demand that was sidelined during lockdowns in the spring. Low interest rates…

Giving Back  1. As the COVID-19 pandemic takes its toll on business and industry in Arizona, in the spirit of being stronger together, the state’s two CCIM chapters have united in support of the commercial real estate industry. Collaboration includes:  Regional activities and economic updates  Meaningful e-connection in support of chapter members and sponsors  Hosting webinars with relevant and timely content  Sponsored “Zoom Bingo” complete with prizes and a planned upcoming virtual event, “Deals and Drinks”.  Sponsored educational opportunities  Boards & Commissions  2. The Sundt Companies, parent company of general contractor Sundt Construction, has added Tom Sorley to its Board of Directors. Sorley retired as chief executive officer from Rosendin Electric in December 2019 and…

Sales Transactions  1. Pennybacker Capital purchased The Osborn Apartments, a 31-building, 302-unit multifamily complex near 32nd Street and Osborn Road, Phoenix, for $42M. Todd Braum, with Lee & Associates’ Arizona Apartment Group represented both the buyer and seller, Bean Investment Real Estate.  2. AP MP, LLC, an affiliate of MBRE Health Care purchased a two-story, 40.9KSF fully occupied medical building at 535 N. Wilmot Road, Tucson, for $11.55M. Justin Lanne and Andrew Sternberg with NAI Horizon’s Tucson office represented the seller, 535 Wilmot Investors, an affiliate of The Schomac Group. The building is wholly occupied and leased to Banner Health, Inc.  3. Safe Harbor Exchange, Inc. purchased a freestanding 40.7KSF industrial/flex building at 17602 N. Black Canyon Highway, Phoenix,…

By Tasha Anderson for AZBEX  A new multifamily residential development is being proposed for the NWC of Avondale Boulevard and the Corporate Drive alignment, also known as The BLVD east of Avondale Boulevard.  Property owner and developer, Lervick Investments, LLC requested approval of a development plan for the 354-unit apartment community on the 16.44-acre site. The City of Avondale heard and recommended approval at its July 15th Planning Commission meeting.  The project, called Avari Apartments, is planned as an urban-form apartment community, and will include a mix of 111 one-, 211 two-, and 32 three-bedroom dwelling units. The project is expected to be built in a single phase.  According to the documents…

Economic News  Hotel Outlook Worsens, Again  Despite some encouraging numbers a few weeks ago, the increasing spikes in COVID-19 numbers have once again created a downturn in the U.S. hotel industry, according to a recent report in National Real Estate Investor. (Source: National Real Estate Investor)  Office Markets Preparing a ‘New Normal’ Future  As offices re-populate, companies and building owners are examining issues of social distancing, amenity packages, and interior design. Technology companies that relied on closely spaced open work areas and social amenities will face significant changes, while traditional configurations will benefit from the social distancing that was designed into their current layouts. There…