Author: BEX Staff

Gov. Katie Hobbs has signed a bill into law that could help address a surplus of commercial building vacancy and a shortage of housing units. Under House Bill 2297, developers may convert or demolish some commercial, office or mixed-use buildings without rezoning starting next year. Cities with more than 150,000 residents will have to allow for reuse or demolition of up to 10% of all commercial buildings considered functionally or economically obsolete so they can be used for new housing development. Approximately 10% of those new residential units would be dedicated to moderate- or low-income residents. Buildings identified under the…

By Associated Builders and Contractors Associated Builders and Contractors issued the following statement opposing the U.S. Department of Labor’s final rule that will change overtime regulations under the Fair Labor Standards Act. The final rule increases the minimum annual salary level threshold for exemption in two phases: from the current level of $35,568 to $43,888 on July 1, 2024, and to $58,656 on Jan. 1, 2025. In addition, salary thresholds will update every three years starting on July 1, 2027. “ABC appreciates that the DOL recognized the value in retaining the methodology used by the prior administration in the 2019…

Groundbreakings 1. Martens Development announced the groundbreaking for its latest Class A industrial development in Mesa: Brickyards on Ellsworth. Their construction lender for the project is Principal Asset Management. Leading the construction team is general contractor FCL Builders. The development team is set to deliver an eight-building, 909.6KSF project with move-in-ready spaces for tenants in the Southeast Valley. 2. ARCO Construction Company broke ground on Phase III of the Level Crossing Masterplan development, a 150.6KSF industrial warehouse in Surprise. Hardy World, LLC and Silver Creek Development partnered with ARCO. Construction is expected to finish in early 2025. Progress Reports 3.…

Paces Preservation Partners is proposing a new affordable multifamily development near the planned “Restaurant Row” area along Bowlin Road near City Hall. Restaurant Row was first mentioned as a development topic last September and would feature five restaurants near City Hall and the Maricopa Library and Cultural Center. In a zoning verification request filed with the City, Paces Preservation Partners says it plans to build a 150-unit affordable community on an 8.35-acre portion of a 22-acre parcel near the SEC of Bowlin and White and Parker roads. The development will include one-, two- and three-bedroom units and will be financed…

By Roland Murphy for AZBEX A request for proposals issued by the City of Phoenix last week will, if constructed, create another urban, mixed-use residential development at the SEC and SWC of 1st and McKinley streets downtown. The 1.49-net-acre site has most recently seen use as a farmer’s market on the SWC and as a temporary Arizona State University parking area on the SEC. According to the description in the RFP, “The successful proposer will create a high-rise urban infill redevelopment project for the entire Site that facilitates urban living, which may include retail, restaurant, live/work, civic space, or other…

The City of Tempe is considering asking voters to approve $581.5M in General Obligation bonds through three questions proposed for the Nov. 5 election. The bond questions would cover: $301M for community safety and roadway development to improve every street in the city within a four-year timeframe; $248.5M for “quality of life” improvements, including historic property preservation and restoration, and $32M to cover four annually consecutive $8M affordable housing bonds starting in fiscal year 2024-25. City Council plans a vote on calling for the bond election at its April 25 meeting. In addition to the bond considerations, City staff is…

By Roland Murphy for AZBEX Arizona’s seasonally adjusted unemployment rate fell from 4.1% to 3.8% from February to March, according to the latest report published by the Arizona Office of Economic Opportunity. The national unemployment rate also decreased over the month, dropping from 3.9% to 3.8%. Last March, Arizona had a seasonally adjusted rate of 3.6%, while the national rate was 3.5%. The Construction sector lost 300 jobs around the state from February through March. Arizona had a not-seasonally adjusted gain of 1,900 in nonfarm employment in February. “Prior to the pandemic (2010-2019), NSA nonfarm employment gained 10,800 jobs on…

Giving Back 1. A team of Gilbane Building Company employees recently participated in the 20th annual Pat’s Run, a 4.2-mile run honoring the legacy of Pat Tillman. Gilbane participants included Elizabeth Sydnor, Emily Gallagher, Zach Gallagher, Chris Bartley, Tyler Nimsger, Gerald Kinnard, Adam Macey, Luke Holder, Kylee Rathburn, Glen Rathburn and Dale Murawsky.   Promotions 2. PCL Construction has promoted Ankur Talwar to District Manager, Civil Infrastructure, West Region. 3. DCS Contracting has promoted Trennis Stanley to the role of Project Sponsor. He has been with DCS for the past eight years and has more than 28 years of construction experience. 4. Norris Design…

Sales Transactions 1. Blackstone Inc. paid $87M for a nearly 537KSF portfolio of five warehouses across four sales in Phoenix. Kohlberg Kravis Roberts & Co. Inc. was the seller. Will Strong, Kirk Kuller, Molly Hunt, Dean Wiley and Michael Matchett of Cushman & Wakefield represented both parties. The properties are: 5302 – 5240 W. Buckeye Road: two buildings, 219,240SF, $35.2M; 4720 W. Van Buren: 135, 438SF, $18.2M; 4441 W. Polk St.: 92,575SF, $16.77M, and 120 E. Watkins St.: 90KSF, $16.77M. 2. Aura Central, a 251-unit apartment complex on North Central Avenue in Phoenix, sold for $70M. An entity tracing to…

By South32 South32’s Hermosa project announced today that it would construct its remote operations center in Nogales. Hermosa is currently the only advanced mining project in the United States capable of producing two federally designated critical minerals – zinc and manganese. The decision follows two years of analysis and consideration of Hermosa’s county-wide planning and employment goals to retain the economic benefits of the project in the Santa Cruz County area. As part of the location announcement, the Hermosa project is also debuting a new name for the remote operating facility: Centro, a name chosen by the community in an…