Author: BEX Staff

During the initial multifamily post-pandemic boom, many lenders bundled variable rate multifamily mortgages into instruments called Commercial Real Estate Collateralized Loan Obligations as an investment vehicle. Unlike Commercial Mortgage Backed Securities, which are usually comprised of fixed-rate loans and, theoretically, less at risk from interest rate increases, CRE CLOs are a vehicle for borrowers in need of speculative financing not available from other sources. Multifamily mortgage delinquencies have started to accelerate, however, and lenders are scrambling to prevent expanded damage to the market. The total CRE CLO market stands at $79B worth of loans. Wall Street had financed investors who…

By Associated Builders and Contractors National nonresidential construction spending increased 0.2% in March, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.19T. Spending was up on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.2%, while public nonresidential construction spending was up 0.8% in March. “Nonresidential construction spending rebounded in March, ending a streak of two straight monthly declines,” said ABC Chief Economist Anirban Basu. “The increase was entirely due to increased public construction spending; private sector…

Last month, K & I Homes held an open house to present a planned medical office and residential project near Earll Drive and Civic Center Plaza in Old Town Scottsdale to community members. The plan, presented by K & I Homes’ Kristjan Sigurdsson, would develop the Clayton Medical Suites and Residences on a two-acre property converted from five current lots and deliver 124 residential units over four floors sitting atop one floor of medical office space. Sigurdsson said the application to officially start the approval and development process with the City of Scottsdale should be submitted by May 10. The…

Groundbreakings 1. Vestar announced the groundbreaking of Phase II of Vineyard Towne Center, a 260KSF retail center in Queen Creek. The grand opening is set for Fall 2025. Phase II is fully leased. 2. Lincoln Avenue Communities, in a joint venture with Fairview Housing Partners, broke ground on Cottonwood Ranch, a 300-unit low-income housing development in Casa Grande. The development offers two-, three- and four-bedroom floorplans, as well as a fitness center, swimming pool, yoga studio and dog park. Completion is expected in late 2025. 3. MYCON General Contractors, Inc. announced the groundbreaking of Tucson Rehabilitation Hospital, a three-story, 55KSF…

The City of Phoenix will seek $20M in federal grant funding as it plans to replace a nearly century-old bridge spanning Grand Canal at 40th and Van Buren streets. The City Council voted to authorize the City Manager to apply for the grant. The Phoenix Street Transportation Department determined this bridge as its highest priority for replacement in a 2020 study. The grant is available under the U.S. Department of Transportation’s Bridge Investment Program, which is funded by the Infrastructure Investment and Jobs Act. The $25M estimated project cost is nearly five times the original estimate from 2020. Cost inflation…

By BEX Staff for AZBEX Several changes have been made to a planned multifamily development near Scottsdale Road and Shea Blvd. since AZBEX first broke the story last July, but High Street Residential’s plan to repurpose a commercial parking lot continues to make progress. (AZBEX, July 25, 2023) The development was originally named Sundown Commons and planned for 239 units. Located on 8.53 acres at the NWC of 70th Street and Shea, the proposal sought a rezoning and minor General Plan Amendment and was presented as a new redevelopment opportunity with units focused toward workforce affordability “including housing for first…

The Pinal County Board of Supervisors has approved a rezoning and associated requests for Tela Peralta, a 43-unit eco-resort planned for 125 acres on Gold Rush Road near Peralta Regional Park. Owners Amy and Mike Doyle of Rafter D. Cattle Company removed a planned amphitheater and shooting range from the original proposal to satisfy concerns from community members. The pair has already been hosting events on the site under temporary use permits. Residents and Board members speaking during the April 24 meeting called the project a positive investment that made good use of the natural features and appeal of the…

By Roland Murphy for AZBEX The Arizona hotel market is continuing its post-pandemic resurgence with a pair of newly proposed mid-size lodging projects making their way through the approval process. LivSmart Studios by Hilton A third hotel development is under consideration for the active pipeline in Yuma. It would also mark the fourth in Yuma County. Hiline Yuma LLC, which traces back to Phoenix-based retail and mixed-use developer Christifulli Companies, presented a request for an aesthetic review to the Yuma Design and Historic Review Commission in its April 24 meeting. The proposed project is a four-story, 120-room LivSmart Studios by…

By Maricopa Community Colleges Arizona Governor Katie Hobbs recently joined the Arizona Community College Coordinating Council—also known as AC4—for a press conference at GateWay Community College’s Washington Campus to announce the launch of the Arizona Community College Workforce Scholarship Program. During the event, Dr. Stacy Klippenstein, AC4 chair and president of Mohave Community College; Carlos Contreras, executive deputy Director and cabinet executive officer for the Office of Economic Opportunity; Karla Morales, VP, Southern Arizona Regional Office for the Arizona Tech Council; and Evan Graber, GWCC Machining and Welding student; spoke on the impact the scholarships will have on students and…

By National Association of Home Builders A recent report, authored by the UCLA Lewis Center for Regional Policy Studies and published by the Terner Center at UC Berkeley, examines how inclusionary zoning rules impact housing production and affordability. The report notes that although inclusionary zoning can help increase housing for low-income families, the mandates also suppress overall housing production if taken too far. The report primarily focuses on the city of Los Angeles’ Transit Oriented Communities program. This program was implemented in 2017 with a goal of boosting housing production, including below-market-rate units, near bus and train stations. Inclusionary zoning…