PHOENIX, ARIZONA – Iconic Design Studio(IDS) is flexing its creative muscle at the new corporate headquarters of Scottsdale-based Dental Marketing & Management Group (DMMG). The project will include two dental offices.

Besides providing interior design services including custom graphics and custom architectural features, Phoenix-based IDS is providing conceptual exterior design, and logo and branding services to the tenant improvement project for three businesses under one roof at 5717 E. Thomas Rd., in Scottsdale.

The 13,500-square-foot building will also house Arcadia Pediatric Dental and Arcadia Orthodontics.

“This company is a rare find,” said IDS Principal Kelli Berry. “I’ve worked with these professionals (Dr. Brad Roberts, Dr. Cayce Wallace, Dr. Lincoln Pace and Dr. Steve Hunsaker) for about four years now. I was impressed with their concern for their patients’ care and positive outcomes.

“Their desire was to create a comfortable and professional environment at Arcadia Orthodontics with a focus on young mothers and their children. Arcadia Pediatric will be a fun space sporting a jungle gym and unusual architectural elements, specialty ceiling features, and interesting wall treatments,” Berry said.

Specialty architectural features include 6-foot toothbrushes that will used at the check-out areas and over the reception desks.

“The client has invested time and funds to create a state-of-the-art dental facility to offer the best technological care available to its patients,” Berry said. “Especially for children. To have a dentist who understands the inherent fear of a ‘trip to the dentist’ ; it was heartwarming to see the care they displayed.”

“Working with the IDS team over the past four years has been a great experience,” Dr. Roberts said. “There are a lot of unknowns when a designer gets involved. However, the logo and branding package, the creativity, acknowledgement of budgets, the high level of customer service, team work, and their ability to find new ways and ideas to solve problems has allowed us to focus on what we do best – provide unmatched dental care. They are a valuable trusted team member.

“We’re excited to create a collaborative space allowing us to more effectively support our multi-state operation currently in Arizona, Texas, Mississippi, and North Carolina. In addition, we will be bringing the experience and knowledge of opening 30 successful offices to both Arcadia Pediatric Dental and Arcadia Orthodontics,” Dr. Roberts said.

Completion of the estimated $5 million project is fall of this year.

“We designed their interior and exterior signage as well as the salvaged DMMG portion of existing building,” Berry said. “We designed the façade of the building in conjunction with the fine tuning of the architect, but it is our design. The landscaping will be xeriscape.”

Camwest Group, a development/construction company with an emphasis on dental and medical offices, is the general contractor. Other firms include Fulton Architects, AWE Corporate Interiors, and LisaMacStudio.

Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz of the day will be.

Banks and other financial companies led U.S. stocks modestly higher Thursday, nudging the s to an all-time high. Rising bond yields, which can result in higher interest rates on loans and bigger profits for banks, helped put traders in the mood to buy banking stocks. Energy companies also notched gains as crude oil prices rose. Utilities and other high-dividend stocks fell. Investors also bid up shares in companies that released strong quarterly results or announced big transactions. ConocoPhillips jumped 8.8 percent after the energy company agreed to sell most of its Canadian assets.

The Dow Jones industrial average rose 69.17 points, or 0.3 percent, to 20,728.49. The Standard & Poor’s 500 index added 6.93 points, or 0.3 percent, to 2,368.06. The Nasdaq gained 16.80 points, or 0.3 percent, to 5,914.34. Small-company stocks fared better than the other indexes, sending the Russell 2000 index up 10.70 points, or 0.8 percent, to 1,382.35. The four stock indexes last set record highs on March 1. Bond prices edged lower. The 10-year Treasury yield rose to 2.41 percent from 2.38 percent late Wednesday.

Tucson and UA Strike Deal on Hi Corbett – Under a new 25-year agreement, the University of Arizona will take over management of Hi Corbett Field from the City of Tucson. Starting July 1, the university will assume the maintenance of the aging facility, pledging to invest more than $3 million into the baseball stadium. Under the new lease, the UA will pay the City of Tucson $10 per year in rent and 2 percent of food, beverage, and merchandise sales at the stadium. The school also will be responsible for all taxes and assessments. The Arizona Wildcats baseball team practices most of the year and plays its home games at Hi Corbett, which once was the spring training home of the Colorado Rockies and Cleveland Indians.

Pima County has launched a mass notification system designed to keep the public informed in the event of an emergency. Pima County’s MyAlerts.pima.gov, hosted on the Everbridge platform, pushes messages to all kinds of devices, quickly and reliably, making it the go-to tool for keeping the public informed. Subscribers can receive notifications about weather-related events, police situations, public health concerns or any public emergencies. MyAlerts.pima.gov also allows Pima County to send geographically specific messages, tailored to ZIP code, blocks, streets or regions charted on a map. To subscribe, users create a profile at MyAlerts.pima.gov. Subscribers can enter additional information like physical addresses, to receive emergency notifications specific to the areas where they live and work.

Best Friends Animal Society has selected Pima Animal Care’s Director of Operations, José Ocaño, to participate in a national steering committee to help animal shelters across the nation reach “no kill” status by 2025. The national animal welfare organization recruited Ocaño along with nine other rescue and shelter leaders from Los Angeles, Atlanta, Austin, Jacksonville and other U.S. cities that have successfully driven no kill agendas. The Steering Committee will coordinate activities, exchange ideas, commit to goals, and enhance widespread ownership of the 2025 initiative. This effort, led by Best Friends, aims to save the thousands of healthy or treatable dogs and cats euthanized in animal shelters throughout the country each year.

Pima Animal Care achieved a historically high save rate of 90 percent in 2016. Reaching this milestone was a challenge, as PACC is the community’s only shelter that helps every pet in need, which means it never turns away a pet for being sick, old, injured or scared. To reach this measure, Ocaño and fellow PACC leaders worked closely with numerous animal advocacy organizations, including Best Friends Animal Society, who provided funding and support to implement progressive animal sheltering programs focused on saving more lives.  One of the projects Best Friends and its partners at PetSmart Charities helped start in Pima County was the Community Cats Project, which immediately allowed PACC to stop euthanizing nearly 1,600 feral cats each year.  The program has played a pivotal role in pushing PACC’s save rate for cats from 55 percent in 2013, to 91 percent in 2016, and it has helped decrease the number of cats being admitted to PACC by more than 35 percent during that same time.

Milestone approves Starwood’s new $1.3B acquisition bid — Milestone Apartments Real Estate Investment Trust (MST_u.TO) said on Tuesday that its unitholders approved the company’s takeover by U.S. private investment firm Starwood Capital Group for about $1.3 billion. Starwood last week raised its offer to $16.25 per Milestone unit from 16.15, after proxy advisory firm ISS recommended Milestone unitholders to vote against the deal. Over 71 percent of Milestone unitholders who voted were in favor of the transaction, the company said on Tuesday. The deal, struck in January, needed the approval of two-thirds of Milestone unitholders. The deal is expected to close on or about April 28, the company said. Milestone, which went public in Toronto in 2013, owns and manages apartment properties targeting blue-collar workers across the U.S. Southeast and Southwest.

Dedication of second Agua Caliente pond set for April 7 — The renovation of Pond 2 at Roy P. Drachman Agua Caliente Park will be dedicated at a 9 a.m. ceremony Friday, April 7, at the eastside Pima County park, 12325 E. Roger Road. District 4 Supervisor Steve Christy will make remarks. The project, a joint effort by Pima County’s Natural Resources, Parks and Recreation Department and the Regional Flood Control District (RFCD), got underway in July 2016. As a result of drought and over-pumping due to increased development in the area, the Agua Caliente Park spring has not been able to maintain sufficient water levels in Ponds 1 and 2 since the early 2000s. In 2004, a well was constructed to supply supplemental water, but this water is only sufficient to maintain water levels in Pond 1. Pond 2 had been dry for some time. The purpose of this project was to provide a holding facility when Pond 1 is rehabilitated with a liner. The liner provides a seal on the bottom of the pond and reduces seepage losses.

Morgan Stanley: The Bull Market In Commercial Real Estate Is About to End “The commercial real estate market is showing cracks and will peak this year, Morgan Stanley analysts forecast. The big risk for the market is that the growth of net operating income — the revenues generated from commercial properties, excluding operating expenses — could slow down, they said. Commercial real-estate prices have recovered above the peaks they set before the housing crisis a decade ago. However, the revenue generated by rents face two growing challenges.” (Business Insider)

U.S. Investors Bet on Hotels and Offices “Real estate has been one of the losers from the so-called Trump trade since the US election. But pockets have outperformed as investors have bet that stronger economic growth will boost demand for offices and hotels. Hotel and resort real estate investment trusts are up 14.8 per cent since the election and Office Reits have risen 10.8 per cent — both outperforming the broader market. The broader S&P 500 Real Estate index is up a modest 3.3 per cent since November 8, against an overall market rally of more than 10 per cent.” (Financial Times)

Kushner Companies and Anbang Drop Talks to Redevelop Manhattan’s 666 Fifth Avenue “Kushner Companies, the real estate firm formerly headed by President Donald Trump’s son-in-law, said it has dropped out of talks to redevelop its flagship New York office tower with China’s Anbang Insurance Group. The two companies, which had been in advanced talks according to media reports, both agreed to end the discussions about redeveloping a 60-year-old office tower that is steps away from St. Patrick’s Cathedral and Rockefeller Center.” (Fortune)

Trump’s Company Pursues Second Washington Hotel “President Donald Trump’s company is actively seeking to open a second Washington hotel as part of a planned nationwide expansion, potentially creating another venue where he stands to benefit financially from customers doing business in the nation’s capital. Representatives of the Trump Organization, now run by the president’s adult sons, have inquired in recent months about converting one of several boutique, medium-sized hotels in upscale neighborhoods in and near downtown and reopening it under the company’s new Scion brand.” (Chicago Tribune)

The Long View: Mitsubishi Reloaded? Chinese NYC Investment Echoes the Japanese in the 80s “With every billion-dollar check a Chinese institution writes for a Manhattan trophy property, similarities to the Japanese investment boom of the late 1980s become more apparent. That boom was followed by a crash in the early 90s. And there are early warning signs that history could repeat itself. Last week, The Real Deal first reported that Chinese conglomerate HNA Group signed a deal to buy Brookfield’s 245 Park Avenue for $2.21 billion. If the deal for the office tower closes at that price, it would be one of the most expensive deals for a single Manhattan building ever recorded, behind the 2008 sale of the GM building.” (The Real Deal)

Highest Local Profits on Single-Family Rentals? Will County “Chicago-area investors who want to get into the single-family rental game will reap the biggest rewards in Will County, according to a report. Single-family rentals in that southwestern part of the region should yield an average 9.9 percent return this year, according to a study by online real estate information service Attom. That’s slightly better than Cook County, where Attom projects a 9.7 percent return. The figure is 8.1 percent in Lake County and 6.8 percent in DuPage. Attom did not have sufficient data on rentals for other counties in the metropolitan area.” (Crain’s Chicago Business)

Senior Housing Properties Partners on Boston Assets “Less than a year after refinancing its two Fan Pier properties, Senior Housing Properties Trust has formed a joint venture with an unidentified sovereign institutional investor who bought a minority stake in 11 Fan Pier and 50 Northern Ave. for $261 million. The investor owns 45 percent equity interest in the joint venture with SNH owning the remaining 55 percent. The Newtown, Mass.-based REIT said the investment amount is based on a property valuation of $1.2 billion, with less than $620 million of existing secured debt on the property.” (Commercial Property Executive)

E-Commerce Growth Gives Rise to Taller Warehouses in the U.S. “According to CBRE Group, Inc., the rapid growth of e-commerce fulfillment networks in recent years has resulted in a steady increase in the height and volume of warehouses and distribution centers, likely necessitating a shift to three-dimensional measurement of industrial space. The average height of warehouses built in the U.S. has steadily risen from roughly 24 feet in the 1960s to 32.4 feet this decade (33 feet in 2016). E-commerce companies have made use of that additional vertical space by installing mezzanine levels, allowing them to add more human inventory pickers in each building.” (World Property Journal)

Extell Secures $168M in EB-5 Funds for Central Park Tower; Project’s Completion Date Pushed Back “In a call to Israeli bondholders Wednesday, Extell Development’s Gary Barnett reported that his firm had secured $168 million in EB-5 funds for Central Park Tower, the supertall condominium project set to rise on Billionaires’ Row. Up to $340 million in EB-5 funds may be raised for the 95-story tower at 225 West 57th Street, Extell’s filings on the Israeli stock exchange show. The $168 million brings Barnett one step closer to procuring the $1.2 billion needed to complete the project.” (The Real Deal)

TUCSON, Arizona – Tucson is well  known for its University of Arizona Wildcats and their recent journey to make the Final Four in the NCCA Men’s College Basketball tournament. Though they were eliminated during the Sweet 16, they still did great!  Student housing and multifamily properties in Tucson are widely spread out within miles of the University.  SVN Advisors, Chip Kloppenburg and Carrick Sears with the Desert Commercial Advisors office in Phoenix recently negotiated the sale of  Malibu Apartments for $2.24 million ($34,462 per unit).

The property is located only 3 miles from the University which makes the property a great investment for the new owner.  The seller stated they have interest in purchasing another assisted living property closer to home and home to them means the State of California.  With the market rents around the university, the seller was motivated to list the property for sale with SVN.  The 65-unit apartment complex is located at 3665 N. 1^st Ave. in Tucson.

The buyer, Scott Brittenham with 3665 N. 1^st Ave, LLC already owns approximately 100-units in Tucson and wanted to add to his multifamily portfolio. “I am confident that now is a great time to be acquiring well placed, well-run units, particularly in the central, northern, and northwest areas of town,” said Brittenham.  SVN advisor, Chip Kloppenburg who specializes in the multifamily property types is nationally known for his recent $17M sale in Tempe, AZ along with Sears. “In the end, we are excited that we were able to please both buyer and seller while overcoming a few hurdles during the process, said Kloppenburg.

One of its sellers, Lou Bouc will be focused on finding new property in California but stated, “The SVN team was instrumental in finding the best buyer for this property. They cooperated well with another brokerage that brought in the best offer we moved forward with.”  SVN advisor, Carrick Sears said, “I am confident that we found the best buyer for this property by actively marketing this property to the entire brokerage community.”

When buyers and sellers are satisfied with the deal, all parties are pleased.  Bouc stated, “SVN went above and beyond!”

To learn more, see RED Comp #4669.