Author: BEX Staff

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…

By Tasha Anderson for AZBEX  Arizona’s seasonally adjusted unemployment rate increased to 10 percent in June 2020, from May 2020, according to the latest report published by the Arizona Office of Economic Opportunity.   The national rate decreased to 11.1 percent from 13.3 percent in May. In June 2019, the state had a seasonally adjusted rate of 4.8 percent, and the national was at 3.7 percent.  The state had a net gain of 19,700 non-farm jobs over the month. “Historically (2010-2019), Nonfarm employment has averaged a loss of 51,600 jobs in June,” the report states. Leisure & Hospitality had the largest net gain with 34,000 jobs, followed by Trade, Transportation & Utilities with a gain of 11,800. Construction lost 900 jobs over the month.  Trade, Transportation & Utilities took the top spot in job gains from June 2019 to June 2020 with a total of 5,900, while Leisure & Hospitality took the top spot in job losses over the year with 49,400.  The Construction sector features three major segments:…

Source: Colliers International  The Greater Phoenix industrial real estate market remains healthy, despite business conditions during the pandemic. America’s growth in online purchasing is driving expanded demand for warehouse/distribution space.  Net absorption of industrial space peaked at more than 2MSF in the second quarter. This marks the fifth consecutive quarter with net absorption exceeding 1MSF. Year-to-date the market has posted 3.7MSF of positive net absorption. Net absorption was dominated by warehouse space in the Southeast and Southwest areas. Leasing activity slowed significantly in April as the nation paused and evaluated effects of the Coronavirus, but virtual tours and tenant interest picked up again in May and June.   The number…

Groundbreakings  1. The Douglas Allred Company recently broke ground on two additional office buildings at their Park Place Development on Price Corridor. Both three-story buildings will be 150KSF and located on the NEC of Price and Willis roads. The architect is Balmer Architectural Group and the general contractor is Willmeng.  2. The Kansas City Royals broke ground July 9th on The Fountains at Surprise Center, their new four-story, 47-unit player housing complex, just south of a similar facility for the Texas Rangers, which opened up late last year. The project is expected to be completed by mid-2021.  3. Sequoia Pathway Academy recently broke ground on a 7KSF classroom addition in Maricopa, with hopes of having it open by the beginning of…

By Tasha Anderson for AZBEX  Developer, PEG Companies is looking to preserve the historic Ralph “Haver Triangle Building” in Scottsdale while enhancing it with the development of a new $150M mixed-use project around it called The Triangle.  The Haver Triangle Building was designed in 1962 by architect Ralph Haver, AIA, who, “was one of the most influential and creative Arizona architects of the second half of the 20th century,” the project documents explain.  PEG Companies is requesting to rezone the +/- 3.1-acre property at 7110 E. Indian School Road from Central Business Downtown Overlay district to Downtown/Downtown Multiple Use Type-2 Planned Block Development Downtown Overlay district. The site also houses a Howard Johnson, and The Venue. …

Budget, Policy & Stimulus News  Navajo Nation Approves Initial Aid Expenditures  The Navajo Nation’s leaders over the weekend approved the tribe’s first expenditures of more than $60M in federal COVID-19 aid, about two months after receiving most of the funds in May. The tribe’s executive branch approved portions of two separate resolutions related to the spending of more than $714M given through the Coronavirus Aid, Relief, and Economic Security Act. (Source: AZCentral)  Economic News  Phoenix Apartment Rentals Still Doing Well  Tenant traffic at metro Phoenix apartments has steadily improved since the beginning of April, according to a new report from Radix. Phoenix is among the few markets in the whole country ahead of where it was…

By Josh Martinez for Independent Newsmedia  The Mesa City Council hosted a public hearing before unanimously approving a series of resolutions and ordinances that will make way for the mixed-use development called Destination at Gateway in the city’s southeast corner.  The 89-acre site sits near the intersection of Signal Butte and Williams Field roads.  As part of the approval, a minor General Plan amendment will allow for a character type change from neighborhoods to mixed-use development for the site. Council also approved a rezoning of the site from residential to general commercial.  As for the development agreement, the city and developer Signal Butte 24 agreed to stipulations…

Source: Colliers International   The Greater Phoenix office market remained relatively healthy during second quarter, despite business interruptions caused by Stay-at-Home orders and impact of coronavirus. The office sector posted its 33rd consecutive quarter of positive net absorption and office vacancy remains below 15 percent.  The Phoenix-Mesa-Scottsdale MSA unemployment rate peaked in April at 12.5 percent. Yet, Arizona’s economy was quick to get back into action when the executive order to stay at home was lifted on May 15. Our MSA was compared to 51 other metropolitan areas with a 2010 Census population of one million or more. We posted the lowest jobless rate…