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CREReport | Phoenix for October 21, 2014

CREReport | Phoenix

Commercial Real Estate Report for October 21, 2014

Liberty Property Trust Completes Construction of 155K SF Building at Liberty Center, Announces First Tenant

Liberty Property Trust completed construction of a 155,000 square-foot office building, the first of up to 11 buildings at Liberty Center at Rio Salado, North of 52nd St & University Dr in Tempe.

First tenant: WageWorks - taking 78,000 square feet of the building.

Wood Partners Begins Construction of 301-Unit Alta Steelyard Lofts in Chandler

As the company previously indicated, Wood Partners began construction on Alta Steelyard Lofts, a 301-unit multifamily property at SEC Arizona Ave & Frye Rd in Chandler.

Tegavah Construction Acquires 856 Acres NE of Scottsdale for $59.5M

Tegavah Construction LP purchased 856 acres northeast of Scottsdale at 172nd St & Rio Verde Dr in Rio Verde from Vista Verde LLC for $59.5M.

The subject property is the site a 1,148 lot master planned community formerly known as Vista Verde and includes the Tegavah Golf Club.

Tegavah Construction LP is a group formed by Shea Homes of Phoenix Inc. and Tricon Capital Group Inc.

Pacific Property Group Acquires 43K SF Tierra Del Sol in North Phoenix for $4.2M

Pacific Property Group purchased Tierra Del Sol, a 42,994 square-foot retail propert at N/NEC 16th St & Bell Rd in Central Phoenix from 5121 Glendale Associates for $4.2M.

Marcus & Millichap’s Ben Tashakorian and Stuart Fagan represented both the buyer, Pacific Property Group, and seller, 5121 Glendale Associates, in the transaction.

Michael Lewis Co. Acquires 30 Acres in Goodyear Gateway South

MLCo (Michael Lewis Co.) purchased 30 acres of land in Goodyear Gateway South development, a planned 221-acre industrial park at W/NWC Litchfield Rd & Yuma Rd in Goodyear, from EJM Development for an undisclosed amount.

Cassidy Turley’s Andy Cloud represented the buyer, MLCo.

CBRE’s Pat Feeney, Dan Calihan and Rusty Kenndy represented the seller, EJM Development.

Perspective on Phoenix Industrial Market, Fall 2014

Amanda Ventura with AZBigMedia catches up with Jeff Hays, Commercial Properties Inc., Dave Sellers, LGE Design Build, Brock Grayson, Layton Construction and co-chair of GPEC’s Community Building Consortium, and Pat Feeney, CBRE, to find out about the outlook of the Valley’s Industrial market.

Uptown Plaza Shopping Center Could Be Future Home to Flower Child Restaurant

Fox Restaurant Concepts and Upward Projects are considering the possibility of opening Flower Child, a fast-casual restaurant, at Uptown Plaza Shopping Center, NEC Central Ave & Camelback Rd in Central Phoenix.

The location also was mentioned on Sept. 19: “Vintage Partners Prepare to Renovate Uptown Plaza Shopping Center in Central Phoenix”

EnVie Fitness Opens in East Valley, Plans for 20 More Locations in Valley

EnVie Fitness opened at SEC Dobson Rd & Ray Rd in Chandler. The company plans to open 20 additional locations valleywide.

Multifamily Absorption Expected to be Significant in 2015

Open for discussion:

Although not necessarily Arizona specific, GlobeSt Article on RealShare Conference in LA does speak about what apartment owners/investors/lenders are expecting with 2015 absorption rates. Arizona, as referenced in our ABInsight | Captain Hindsight article, is experiencing a Class A construction boom.

Will be interesting to see how these projects are greeted (bulk of them anyway) in late 2015-16.

What would you pay for this bank owned strip center?

What would be a reasonable offer for this type of bank owned property:

year built: 2009 (physical condition is excellent)

Square ft: 9500

Current Occupancy: 45%

Rent: $14/SF

Phoenix Office Vacancy Rate, Q3 2014: CoStar says 17.6%, JLL says 22.9% - Who's right?

Open for discussion:

Am I wrong for thinking that JLL measuring 3Q2014 Phoenix Office Vacancy at 22.9% and CoStar quoting 17.6% is a dramatic difference?

CoStar indicates that they found a net absorption for the period as 854,595 SF. JLL found absorption to be 611,258 SF.

Any guess where CoStar picked up the extra 243,337 SF in their data?