Arizona

Caution, Patience Will Be the Themes of Phoenix Retail for 2023

by Jeff Shaw February 10, 2023

— Kyle Davis, Sales & Leasing Agent, Commercial Properties Inc., a CORFAC International Firm — A market cooldown is likely in 2023 as interest rates rise and the investor pool becomes more cautious to some degree. I believe many investors recall lessons from the Great Recession and are not as significantly overleveraged, which means the effects of this market correction may not be nearly as drastic. Phoenix’s retail market also has some bright spots. The area’s retail net absorption was positive at more than 1.5 million square feet, with vacancy rates down to 5.1 percent at the end of the fourth quarter of 2022. This is compared to the 1,071,783 square feet of absorption and 6.6 percent vacancy rate a year ago. Many look at factors like unemployment, interest rates, housing starts, etc., to speculate about the coming market. What will impact our industry most directly, however, is how the lending market reacts to these indicators. As with 2008 and 2020, creditors may look at the same data points as investors and lower their risk profiles significantly faster than investors are able to counteract. There will be many commercial property loans set for refinancing in the near or upcoming future, as commercial property …

February 10, 2023

Arizona Development Industrial Western

Panattoni Plans 1 MSF Yuma Industrial Park in Arizona

by Amy Works February 9, 2023

YUMA, ARIZ. — Panattoni Development has unveiled plans to develop a 1 million-square-foot industrial park at 36th Street and South Avenue 4E in Yuma. The initial phase of Panattoni’s Yuma Industrial Park is slated to include four buildings ranging from 234,000 square feet to 279,000 square feet each. The buildings will feature two grade-level doors, 49 rear-load, dock-high doors and 32-foot clear heights.

February 9, 2023

Acquisitions Affordable Housing Arizona Multifamily Western

Northmarq Brokers Sale of Sahuarita Mission Apartments in Green Valley, Arizona

by Amy Works February 9, 2023

GREEN VALLEY, ARIZ. — Northmarq has arranged the sale of Sahuarita Mission, a multifamily community located at 1091 W. Beta St. in Green Valley. Sahuarita Mission Owner LLC (FSO Capital Partners) sold the asset to Cypress, Calif.-based WNC Apartment Ventures for $8.8 million, or $169,231 per unit. Built in 2000, Sahuarita Mission is an affordable multifamily community with four two- and three-story buildings on 2.9 acres. The fully occupied property features 52 two- and three-bedroom units, ranging in size from 822 square feet to 1,013 square feet, with walk-in closets, balcony or patio, plush carpet and automatic dishwashers. Community amenities include a clubhouse, children’s playground, picnic area with grill, laundry facilities and on-site leasing office. Trevor Koskovich, Jesse Hudson, Ryan Boyle and Logan Baca of Northmarq Phoenix’s investment sales team represented the seller in the deal. Bryan Mummaw, Bryan Liu, Brandon Harrington, Christopher Gitibin, Brad Burns and Tyler Woodard of Northmarq’s debt and equity team secured a $5.9 million loan for the buyer through Northmarq’s relationship with Freddie Mac.

February 9, 2023

Acquisitions Arizona Hospitality Western

Holualoa Cos., LaPour Partners Sell AC Hotel Phoenix Biltmore by Marriott for $67.8M

by Amy Works February 8, 2023

PHOENIX — Holualoa Cos. and LaPour Partners have completed the disposition of the AC Hotel Phoenix Biltmore by Marriott in Phoenix. Nella Invest bought the asset for $67.8 million, or $423,750 per room. Located at 2811 E. Camelback Road, the five-story hotel features 160 rooms in a mix of traditional rooms and suites. Amenities include AC Kitchen & Lounge, a fitness center, business center, outdoor pool, sundry shop, guest laundry and more than 5,000 square feet of meeting space. The hotel was developed as part of a mixed-use project along with the Camelback Collective Office Building, which sold in July 2022. Co-developers Holualoa and LaPour Partners purchased the site in October 2016. Melvin Chu, John Strauss and Ben Geelan of JLL Hotels & Hospitality represented the seller, with Halo Hospitality and DCA Partners as advisors to the buyer. Azul Hospitality Group operates the hotel.

February 8, 2023

Arizona Market Reports Multifamily Western Western Market Reports

Phoenix Multifamily Looks Sunnier than Most Markets

by Jeff Shaw February 3, 2023

— By John Kobierowski, President and CEO, ABI Multifamily — As we enter a New Year, investors are looking for multifamily markets that will continue to offer consistent returns and stability. Thankfully, Phoenix is still regarded as one of the darlings of the multifamily markets. Investors from both coasts are talking to us about the Phoenix market again after not having invested here in a while — or, in some cases, ever. They say they’re realizing Phoenix just might be one of the few markets with predictable multifamily growth. Companies locating in Phoenix are creating tremendous job growth. For example, Taiwan Semiconductor recently announced an investment increase in the manufacturing plant it’s currently building in Phoenix — from $12 billion to $40 billion. That might be one of the largest single investments in the U.S. We’re eagerly anticipating the Southwest winter and spring events that draw the envious attention of a national audience, including WM Phoenix Open golf tournament, Super Bowl, Barrett Jackson collector car auction and Cactus League Spring Training. Our bright, sunny skies, green grass, and smiling people in t-shirts and flip flops will stand in stark contrast to those stuck in freezing cold winter temperatures and paying expensive home heating costs. …

February 3, 2023

Arizona Development Multifamily Western

Joint Venture Plans 394-Unit Atlas Mesa Apartment Property in Mesa, Arizona

by Amy Works February 2, 2023

MESA, ARIZ. — A joint venture between PCCP and The Dinerstein Cos. has unveiled plans to develop Atlas Mesa, a Class A multifamily community in Mesa. The partnership plans to break ground on the property in late July, with initial occupancy slated for first-quarter 2025 and final completion scheduled for late 2025. Located at the northwest corner of East Baseline Road and South Sunview, Atlas Mesa will feature 394 studio, one-, two- and three-bedroom layouts, ranging from 562 square feet to 1,394 square feet. Situated on 9.8 acres, the 400,000-square-foot community will consist of four four-story buildings served by elevators and a leasing and amenity building. Community amenities will include an outdoor pool with spa, clubhouse and coworking space. Additionally, the property features smaller outdoor amenity spaces throughout the community.

February 2, 2023

Acquisitions Arizona Idaho Industrial Self-Storage Utah Western

Wentworth Property Sells 18-Property Self-Storage Portfolio for $266.2M

by Amy Works February 1, 2023

PHOENIX — Phoenix-based Wentworth Property Co., in a joint venture with an institutional equity investor, has completed the disposition of a portfolio of 18 self-storage properties across Arizona, Texas, Colorado, Utah and Idaho. A New York-based investment management company acquired the portfolio for $266.2 million. In total, the portfolio includes 9,600 storage units and 1.3 million square feet of rentable space. Six properties are in the greater Phoenix area, four facilities are in the Dallas/Fort Worth area, two assets are in El Paso, Texas, three properties are in Salt Lake City, two properties are in Denver and one asset is in Boise, Idaho. John Smeck and Alix Hanna of Colliers Arizona, along with Grant Frankel, Adam Licari, John Caraviello and Lucas Blumenfeld of Eastdil Secured’s New York City office, arranged $160 million in non-recourse, fixed-rate financing for the buyer. Tom Gustafson of Colliers’ National Self Storage team in Cleveland, Ohio, procured the buyer for the off-market transaction.

February 1, 2023

Talbert-Mount-Washington-Industrial-Park-Fountain-Valley-CA

Acquisitions Arizona Industrial Western

Manhattan West Acquires Talbert-Mount Washington Industrial Park in Fountain Valley, California for $16.5M

by Amy Works February 1, 2023

FOUNTAIN VALLEY, CALIF. — Manhattan West Real Estate has purchased Talbert-Mount Washington Industrial Park, a multi-tenant industrial park in Fountain Valley. DDK Investments Ltd. sold the asset for $16.5 million. Situated on 2.9 acres, the park includes a 28,754-square-foot building at 18071 Mt. Washington St. and a 31,000-square-foot building at 11190-11240 Talbert Ave. Six tenants, including OC Art & Home, Harwood Galleria, The Drawer Shop and RADCO, fully occupy the property. Both two-story buildings feature outdoor storage yards, 18-foot to 23-foot clear heights, fire protection, oversized ground-level doors and HVAC. Additionally, the property offers 113 parking spaces. Joseph Harmon and Charles Johnson of DAUM Commercial Real Estate Services represented the buyer, while Devin Ray and Mike Barreiro of DAUM represented the seller in the deal.

February 1, 2023

Arizona Development Industrial Western

Graycor Construction Completes Three Industrial Buildings at Gilbert Spectrum in Arizona

by Amy Works January 31, 2023

GILBERT, ARIZ. — On behalf of GID and SunCap Property Group, Graycor Construction Co. has completed development of Buildings 9, 10 and 11 at Gilbert Spectrum, a 64-acre industrial park at McQueen and Elliot roads in Gilbert. Northrop Grumman, a multinational aerospace and defense technology company, has leased the 100,000-square-foot Building 9. S&M Moving Systems, a full-service local and long-distance moving company, has leased the 142,200-square-foot Building 10. At the 66,400-square-foot Building 11, Banner Industries, which specializes in high-purity and industrial flow component distribution, is occupying 27,097 square feet and Varsity Brands, an American apparel company, is leasing 18,047 square feet. The new buildings offer 28-foot to 32-foot clear heights, a mix of dock-high and drive-in doors, generous power and ESFR sprinklers. Additionally, the three buildings share a 190-foot loading court. Graycor served as design-build general contractor and Balmer Architectural Group was the project architect. At build-out, Gilbert Spectrum will include up to 850,000 square feet of office, flex industrial and technology-related space. Ken McQueen and Chris McClurg of Lee & Associates Arizona are handling leasing for the three facilities.

January 31, 2023

Acquisitions Arizona Hospitality Western

Sun Valley Hotels Buys 108-Key La Quinta Inn & Suites in Peoria, Arizona

by Amy Works January 31, 2023

PEORIA, ARIZ. — Toronto-based Sun Valley Hotels LLC has acquired La Quinta Inn & Suites at 16321 N. 83rd Ave. in Peoria. The name of the seller and acquisition price were not released. The hotel features 108 guest rooms, a heated outdoor pool, fitness center and Wi-Fi. Bill Murney of Cushman & Wakefield’s Hospitality team in Phoenix represented the seller in the deal.

January 31, 2023

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