Daily News May 11, 2009

Thank you for finding my Phoenix Commercial Real Estate Market Blog! In order to best serve my clients, I have upgraded my online presence so that I can provide you with better information in a more timely manner. You can find my new site at http://www.nickminer.com/. You can also follow me on twitter at www.twitter.nickminer.com or learn more about my background at http://www.linkedin.nickminer.com/. I look forward to connecting with you online and in person.

Daily News from the desk of Nicholas L Miner, CCIM

Here are the news stories you might find interesting today:

Luxury condo, retail project on hold

2 more lanes in works for Grand Avenue

Waterworks Files Bankruptcy Waterworks, Inc., a retailer of bath and kitchen fixtures, furnishings, and accessories, filed Chapter 11 on May 4, 2009. The company listed $10-50 million in both assets and liabilities in its filing. The company was founded in 1978 and today operates 17 retail stores in AZ, CA, CO, CT, DC, FL, GA, IL, MA, NY and TX; five catalog and commercial sales locations in IL, CA, NY, DC, and CT; and a support center in Danbury, CT. Additionally, Waterworks has five boutique partners with stores in Canada, TN, ID, FL, and AL that were not included in the filing. Waterworks' showrooms vary in size significantly and some of its stores are located on the Country's prime retail high streets.

Boeing moving Gateway facility to Florida
The Boeing Co. said Monday it will move an aircraft repair operation from Phoenix-Mesa Gateway Airport to Florida, which will involve a transfer of about 60 jobs.
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Law Firm Acquires Phoenix Office Bldg.
Finger, Kaplan & Matson PC sold the 1700 Building in Phoenix to the Law Offices of Michael Cordova for $1.63 million, or approximately $150 per square-foot. The single-story, 10,815-square-foot office building at 1700 N. Seventh St. was built in 1981...
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CityNorth blames economy for Nordstrom exit
Officials at CityNorth attribute Nordstrom’s pull out at the North Phoenix development to the faltering economy.
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Cold Stone expands partnership with Rocky Mountain Chocolate
A test project between Rocky Mountain Chocolate Factory and Cold Stone Creamery is being expanded to several hundred stores across the country.
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State Land Commissioner resigns
Commissioner Mark Winkelman resigned as the head of the Arizona State Land Department Monday.
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Economy Watch: Coverage summary and resources
The Phoenix Business Journal is focusing on the economy and federal stimulus efforts as Arizona companies work to get past the recession.
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Investors, Developers Divided on Investment Outlook for ’09
Commercial real estate investors and developers appear divided as to whether they will increase or reduce their overall investment activity this year compared to last, according to a recent survey by real estate services firm Jones Lang LaSalle. While slightly less than a third (30%) of those surveyed predict a drop of zero to 30% in their investment spending, more than a third (37%) of respondents say their investment activity will increase by 30% over last year. The Chicago-based company, which conducts cross-sector surveys each spring and fall, questioned property owners and representatives of development and professional ...

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Investor Buys 3 Acres in Chandler
Chandler-based SAS Hospitality acquired 3 acres of commercial land at the corner of North Arizona Avenue and West Harrison Street in Chandler, AZ, from a private owner for $1.05 million, or $351,000 per acre. The parcel included the 19,574-square...
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Daily News May 11, 2009

Daily News from the desk of Nicholas L Miner, CCIM

Here are the news stories you might find interesting today:

Gateway Airport to get grant to upgrade terminals

Nordstrom pulls out of CityNorth project

Neighbors rally to fight Walmart rezoning

New data offer view of state's economy

Cave Creek Walmart plan met with suspicion

Job losses continue, but April numbers short of expectations
The national unemployment rate moved higher again in April, but the total number of job cuts was the lowest in six months.
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Phoenix-Mesa Gateway Airport gets $24M from FAA for improvements
Phoenix-Mesa Gateway Airport is getting $24 million from the Federal Aviation Administration to help improve and expand its terminal and passenger services.
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Snell & Wilmer lay off support personnel
The Snell & Wilmer LLP law firm has cut between 30 and 40 administrative and support positions.
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Newly created downtown Phoenix charter school to hire 97
The Phoenix Elementary School District voted unanimously Thursday to partner with a charter institution to open a K-8 school on the district’s Phoenix Preparatory Academy campus downtown.
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Gilbert, which had 1 hotel, now has 3
Only two weeks ago, Gilbert had just one hotel. Friday it has three, with the completion of the 127-room Hyatt Place Phoenix/Gilbert at Val Vista Drive and the Santan Freeway stretch of Loop 202.
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Foreclosure Looms on 1,000-Plus Acres
MESA, AZ-An assemblage that took Paragon Properties two years and $100 million to complete is in danger of going on the auction block.
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TEMPE SPECIFIC NEWS:
PERMITS FINALLED
04/03/09 – ADDITION/ALTERATION at 1976 E. 5th St. for Sigler Warehouse Declared Valuation: $200,000 Plan Check No.: PC08-1026
04/08/09 – ADDITION/ALTERATION at 120 E. 5th St. for Tempe Municipal District Center Declared Valuation: $1,800,000 Plan Check No.: PC08-0753
04/20/09 – NEW BANK BUILDING at 787 E. Elliot Rd. for MidFirst Bank Declared Valuation: $526,500 Plan Check No.: PC06-1269
04/22/09 – NEW CONVENIENCE STORE W/ GAS at 507 W. Broadway Rd. for Circle K Declared Valuation: $400,000 Plan Check No.: PC08-0863
04/23/09 – NEW PARKING GARAGE at 201 S. Ash Ave. for Tempe Gateway Declared Valuation: $15,611,500 Plan Check No.: PC08-0089
04/27/09 – TENANT IMPROVEMENT at 6458 S. McClintock Dr. for Trader Joes Declared Valuation: $300,000 Plan Check No.: PC08-0697
04/30/09 – TENANT IMPROVEMENT at 3011 S. 52nd St., Ste 115, for ADT Declared Valuation: $410,000 Plan Check No.: PC08-1189

For a FREE market evaluation of your property, contact me immediately!

New website for my BLOG has been launched! Check it out at: http://www.nickminer.com

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Daily News May 8, 2009

Daily News from the desk of Nicholas L Miner, CCIM

Here are the news stories you might find interesting today:

W. Valley told to expect delay in getting light rail

Wigwam goes on undaunted, court-appointed receiver says

New jobless claims plunge, retail sales improve

Buyers sue KB Home, Countrywide

Nonfarm Private Employment Decreased 742,000 according to the April ADP National Employment Report®.Nonfarm private employment decreased 491,000 from March to April 2009 on a seasonally adjusted basis, according to the ADP National Employment Report®. The estimated change of employment from February to March was revised by 34,000, from a decline of 742,000 to a decline of 708,000.

CMBS Market at Risk of Widespread Defaults, But TALF Change May Ease Burden At least two-thirds of the American CMBS loans maturing in the coming decade could be at risk of default, according to a new report by Deutsche Bank. However, a recent change to the Federal Reserve's TALF program could act as a safety valve for the market.

Retail Finding a Bottom?Whatever else is happening in the economy, U.S. consumers seem to have returned to the nation's stores in somewhat greater numbers now that spring is here. According to consultancy Retail Forward, the 35 major retailers that it surveys saw a 0.9 percent increase in same-store sales in April compared with March, when sales had dropped 1.9 percent. Average same-store sales compared with April 2008, however, were down 3.7 percent.

Arizona industrial employment drops 3 percent
Arizona industrial employment fell 3 percent between March 2008 and March 2009, the steepest loss ever reported for the state, according to Manufacturers’ News Inc.
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Mortgage rates rise as outlook brightens
Mortgage rates remain near historic lows, but rates ticked up a bit this week, a move Freddie Mac links to the improving outlook for the U.S. economy. (FRE)
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Moyes says he's open to sale that would keep Coyotes in Arizona
Phoenix Coyotes owner Jerry Moyes said Thursday he is open to selling the team to an owner who would keep the team at Jobing.com Arena in Glendale.
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For a FREE market evaluation of your property, contact me immediately!

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Daily News May 7, 2009

Daily News from the desk of Nicholas L Miner, CCIM

Here are the news stories you might find interesting today:

PV panel signs off on development

Gilbert lands $90 million cancer center
Gilbert's economy and reputation received a big boost Wednesday with the news that Banner Health and the University of Texas M.D. Anderson Cancer Center will open a $90 million cancer hospital on the Banner Gateway Medical Center campus.
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Glendale, NHL seek to block Coyotes move to Canada
The National Hockey League and city of Glendale want to block a proposed sale of the Phoenix Coyotes that could move the hockey team back to Canada.
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Bankruptcy could allow Coyotes to avoid $750M lease penalty, Moyes could lose $207M
The Phoenix Coyotes Chapter 11 filing could get the team out of its 30-year lease at the Glendale-owned Jobing.com Arena avoiding a massive $750 million penalty.
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Urban Cookies launches cupcake line
Urban Cookies is launching a cupcake brand called OllieCake.
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National Bank of Arziona partners with SolarCity, First Solar
National Bank of Arizona Wednesday announced a partnership with SolarCity and First Solar Inc. to build a 222-kilowatt solar system to be mounted on carports at the bank’s headquarters in Phoenix.
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Boulevard Wealth Management opens doors
Boulevard Wealth Management has opened at Chandler’s Fulton Ranch Promenade.
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Zillow: 22 percent of mortgages underwater
With the housing market mired in a historic slump, a survey from real estate Web site Zillow.com shows that nearly 22 percent of American homeowners owe more on their mortgages than their homes are worth.
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ASU-RSI: Preliminary Data Offer Glimmer of Hope for Plunging Phoenix Home Prices Arizona real estate markets tend to swing wildly. During boom periods, home prices accelerate precipitously, but when the bubble bursts, residential values sometimes slink all the way back to the price level at the start of cyclical upturn. However, the tend line is different in this recession -- things are actually much worse, as housing prices in the Phoenix metropolitan area have overshot the beginning of the cycle mark, according to the latest data from the Arizona State University-Repeat Sales Index (ASU-RSI). But while the news of home value does seem to be grim, there are nuggets of hope in the preliminary ASU-RSI data as well.

Forecasters See Economy Turning Positive in Second Half of 2009 Economy-watchers will find out just how poorly the economy performed in the first quarter of 2009 on Wednesday, April 29. That's when the Bureau of Economic Analysis releases the advance report on Gross Domestic Product (GDP). Expectations are that the annualized decrease will be at least 6.0 percent, as bad as the fourth quarter of 2008. But once the economy gets past the first quarter carnage, the consensus view among economists is that Q2 will bring a more modest decrease of 2 to 3 percent. Moving into the second half of 2009, analysts look for growth as measured by GDP to turn positive. The Round Number Forecast from the W. P. Carey School of Business, released April 16, is projecting that GDP will decrease by 3.0 percent for all of 2009 and increase by 2.0 percent next year.

Scores of Smaller Banks Projected to Collapse
By Denise Kalette
More than 150 small and medium-sized U.S. banks are currently failing and expected to close by the fourth quarter as bad commercial real estate loans threaten their viability, according to an analysis by the Oakland, Calif.-based research firm Foresight Analytics. The rate of projected bank closures this year is running six times higher than the 25 failures that occurred in 2008. The volatile lending climate marks a stark contrast from 2007 when only three banks closed.

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Daily News May 6, 2009

Daily News from the desk of Nicholas L Miner, CCIM

Here are the news stories you might find interesting today:

Mesa, Falcon Field businesses lock horns

Gilbert to get $1.8M for green projects

Gold Nugget owner announces gallery's closing

Expansion of TALF to Cover CMBS, 5-Year Loan Terms Get Praise from IndustryWashington, D.C.--The Federal Reserve’s Term Asset Backed Securities Loan Facility (TALF) has been expanded to cover commercial real estate backed securities (CMBS) and loans. In addition, the loans provided to investors under TALF to purchase the securties will have five-year terms, which better match the needs of CMBS investors.

Will TALF Expansion Jumpstart CMBS Lending?
The Federal Reserve announced that it will expand the Term Asset-Backed Security Loan Facility, or TALF, to include AAA-rated securities backed by new and recently originated commercial mortgage loans. The move is intended to grease the wheels of borrowing for commercial mortgage-backed securities (CMBS).

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New center for breast-cancer research opens

McShane Takes On 103,000-SF HQ Rehab
PHOENIX-The multi-million-dollar renovation for Climatec's regional headquarters includes exterior upgrades and a gut of the interior.
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Reports: Opus West Files for Bankruptcy
PHOENIX-The firm was hurt by construction loans it owes on Country Hill Galleria mall, in Austin, TX, according to reports.
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Opus' Texas shopping center files Ch. 11 to avoid auction
A shopping center near Austin, Texas, developed by Opus West has filed for Chapter 11 bankruptcy in order to avoid a foreclosure auction that was scheduled for noon Tuesday.
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ArmorWorks signs lease in 10 Chandler office park
ArmorWorks Enterprises, a Chandler-based company that makes protective gear for U.S. combat troops, has signed an eight-year lease for 80,167 square feet of space in 10 Chandler, an office park at 500 N. 54th St.
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Federal help wanted for commercial property
Commercial real estate brokers, developers and others believe the commercial real estate downturn is severe enough to warrant federal assistance.
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'Nontraditional' businesses face restrictions
Gilbert is in the midst of determining how much say it should have over new pawn shops, tattoo parlors, check-cashing outlets and smoking lounges.
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Chandler looks to revamp Price corridor image
Chandler wants to recast the image of its Price Road technology corridor from simply a practical place for high-tech manufacturing to one that offers high-end living for a well-to-do work force.
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Used vehicle exchange opens in Scottsdale
A new business called “A Lot 2 Offer” has opened in Scottsdale offering buyers and sellers of used vehicles a place to go.
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Phoenix Coyotes file Chapter 11
The Phoenix Coyotes hockey team Tuesday filed for Chapter 11 bankruptcy protection and could be sold to a new ownership group that wants to move the team from Glendale to Canada.
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For a FREE market evaluation of your property, contact me immediately!

New website for my BLOG has been launched! Check it out at: http://www.nickminer.com

Follow me on Twitter: @nickminer

Here is my LinkedIn Profile: http://www.linkedin.com/in/nminerccim

Eagle Commercial Sale Listings (click here)

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Daily News May 5, 2009

Daily News from the desk of Nicholas L Miner, CCIM

Here are the news stories you might find interesting today:

Retail's New Reality (I am quoted in this article)
Learn what it takes to survive in today's challenging market.
By Jennifer Norbut
Imagine you’ve been cast to star in a new deal-making reality TV show. The objective is to outwit the competition, overcome obstacles out of your control, and complete as many deals as possible — or risk elimination from the show. It isn’t as easy as it might seem: In this contest, capitalization rates don’t matter, replacement costs aren’t considered, and comparable sales don’t exist. The market’s parameters change constantly and you must quickly adapt your strategies to stay viable. Are you up to the challenge?
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Gilbert to get $1.8M for green projects

Surprise looking at future of Bullard stretch

Construction spending, pending home sales rise

Court orders impact study on builder's plan for land

Undeterred by Grim Conditions, Sovereign Wealth Funds Eye U.S. Real EstateThe U.S. commercial real estate market, plagued by high vacancies and declining property values, is not at its most appealing right now, but according to a new report by Deloitte, sovereign wealth funds are beginning to see a great opportunity for investment."Read more..."

Cole Real Estate Investments Spends $141.3M on 22 Properties in March Phoenix-based Cole Real Estate Investments upheld its ranking as one of the most active purchasers of retail real estate in March. The owner/manager, which specializes in single-tenant, net lease deals, acquired 22 properties totaling 223,042 square feet during March, for a total of $141.3 million. March activity brought Cole's first quarter acquisition total to $168 million in assets totaling 338,438 square feet. The company currently owns or manages approximately $4.4 billion in assets totaling 23.3 million square feet.

Latest economic data suggests recession easing
WASHINGTON — Evidence that housing is poised to improve and optimism about the results of banking "stress tests" raised hopes Monday that the recession is easing and helped lift a key stock market measure into the black for the year.
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Boxing legend sees Mesa in his future
Boxing legend Julio César Chávez swooped into Mesa Monday to promote two of his business ventures — a new restaurant and an energy drink that will carry his name.
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Derma Health Institute opens fourth Phoenix-area office
Derma Health Institute opened its fourth Phoenix-area office on Monday, at 10214 N. Tatum Blvd. in Paradise Valley.
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Daily News May 4, 2009

Daily News from the desk of Nicholas L Miner, CCIM

Here are the news stories you might find interesting today:

Demand for Apartments Expected to Bottom Out This YearBoston--Demand for commercial real estate is expected to hit rock bottom this year with the apartment sector enduring the lightest demand loss in 2009 of all the commercial property types. However, that's not saying much, as this will still be the heaviest loss in apartment demand in 25 years (Graph 1), according to the first quarter 2009 forecast report from Property and Portfolio Research Inc. (PPR).

Real Estate Outlook: the Good, Bad, UglyThe extraordinary level of job losses in the United States, currently at about 700,000 a month, is creating a black hole of uncertainty that is having a ripple effect worldwide on productivity, business investments, and consumer spending, according to a panel of market analysts at ULI's recent Spring Council Forum. The overwhelming number of white- and blue-collar workers now laid off is affecting and will continue to affect all segments of real estate, with improvement likely to come later rather than sooner, they noted. Read a synopsis of the panel's discussion athttp://thegroundfloor.typepad.com/the_ground_floor/2009/05/real-estate-outlook-the-good-bad-ugly.html

Furniture superstore to open in May

Retail in Ahwatukee still shows strength

Companies may be shedding fewer workers

Superstition Mountain auction delayed again
An auction of the financially troubled Superstition Mountain Golf and Country Club in Gold Canyon has been delayed for a second time, according to the trustee of the property.
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What's in a name? Not much for Q.C. café
There's no deep meaning behind the name of downtown Queen Creek's newest coffee shop and cafe that officially opened Thursday. Rhino Caffe, the only coffee shop downtown, was simply a name that owner Shawn Valdez and his three children pulled from the air.
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Sears outlet store hosts grand opening
Sears will hold a grand opening of its new outlet store from 9 a.m. to 9 p.m. Saturday at 857 N. Val Vista Drive in Gilbert.
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New Native New Yorker restaurant hiring
A planned Native New Yorker at the corner of Germann and Gilbert roads is hiring.
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Hispanic market set to open in Mesa
The list of Hispanic markets in Mesa is getting longer. A Detroit-based family-owned grocery firm called Mi Pueblo Supermercado is converting a former Albertson's supermarket at Dobson Road and Main Street into an upscale Hispanic-oriented grocery, which is scheduled to open in June.
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Distressed Deals Losing Luster
A couple of significant news items came crashing onto the desks of industry execs recently. And these news items are swiftly bringing current market conditions into sharper focus. First, Normandy Real Estate Partners and Five Mile Capital Partners in late March bought the John Hancock Tower in Boston for $660.5 million, a far cry from the $1.3 billion paid three years ago by now defunct Broadway Partners.

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ARMS LENGTH DEAL ON VALLEY APARTMENT COMPLEX . . . $23.2 MILLION FOR 308 UNITS
Glendale – A company formed by Nevins, Adams, Lewbel and Schell in Santa Barbara, Calif. (Henry Nevins, et al., principals) paid $23.2 million ($75,325 per unit) to acquire the 308-unit Sage Stone at Arrowhead apartments located at 6233 W. Behrend Drive in Glendale. The seller was Glen Arrow Summit LLC, a company formed by Principal Life Insurance Co. in Des Moines, Iowa.
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APARTMENT TRANSACTIONS
Mesa – CREF Colores LLC, a company formed by Corundum Partners Inc. in Colorado Springs, Colo. (Ronald Johnson, principal), paid $9.21 million ($76,750 per unit) to acquire the 120-unit Colores Del Sol apartments at 510 E. McKellips Road in Mesa. The seller was TWEST Investments LLC in Canyon Lake, Calif. (Dale Tittlemier, principal). The buyer acquired the property by assuming a HUD loan totaling $7.2 million. The 40-year mortgage has a 6.25 percent interest rate. The property, which was 90 percent occupied at closing, sold at a roughly 7 percent cap rate. Colores Del Sol was built in 2000. The investment is the first in the Valley for the buyer. In March 2006, BREW reported Tittlemier’s company paying $10.511 million ($87,592 per unit) to purchase Colores Del Sol.

For a FREE market evaluation of your property, contact me immediately!

New website for my BLOG has been launched! Check it out at: http://www.nickminer.com

Follow me on Twitter: @nickminer

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Daily News May 1, 2009

Daily News from the desk of Nicholas L Miner, CCIM

Here are the news stories you might find interesting today:

By clicking here, you can download the ULI Arizona Spring 2009 Report.

Merchants, city plan makeover for Bell Road mile

Contest offers free rent on Mill Avenue

Arizona gets $82M in stimulus funds for water projects
Arizona is receiving $82 million in federal stimulus money through the U.S. Environmental Protection Agency to develop water projects across the state, the agency announced Thursday.
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State projected to lose 167,800 jobs, Phoenix metro 128,300 in next two years
Arizona is expected to lose 167,800 jobs in 2009 and 2010, according to new estimates from the Arizona Department of Commerce. The Phoenix-Scottsdale-Mesa metro area is expected to take the biggest hit, losing 128,300 jobs.
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Ailing Phoenix-area resorts picking up some leisure business from canceled Mexico trips
Even though people may be deciding against getaways to Mexico or other destinations because of the swine flu outbreak, they still are seeking some downtime -- and Valley resorts are ready to pick up the slack.
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Coury citrus grove in Mesa up for sale
One of the last independently owned citrus groves in northeast Mesa is slated for residential development in the coming years.
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The future of private equity
Without the advantages of plentiful debt and rising equity markets, the private-equity sector faces many problems—the biggest of which is what to do with an estimated $1.02 trillion in committed but unused funds and a susceptibility to financial distress from even a small downturn in sales and EBITDA.Does this particular “deleveraging” crisis mark the end of the private-equity industry? The authors don’t think so, and explain why. Read their argument, then let us know what you think.Read more on the McKinsey Quarterly >

For a FREE market evaluation of your property, contact me immediately!

New website for my BLOG has been launched! Check it out at: http://www.nickminer.com

Follow me on Twitter: @nickminer

Here is my LinkedIn Profile: http://www.linkedin.com/in/nminerccim