PHOENIX, Arizona — Since 2012, Sam Fox’s corporate headquarters for Fox Restaurant Concepts has sat above The Henry, one of his signature restaurants, in a multi-tenant office complex called The Park located at 4455 East Camelback Road in Phoenix, AZ.

Recently, Fox announced the expansion of their corporate offices at The Park. Fox Restaurant Concepts and True Foods Kitchen, both part of Fox’s corporate offices, will occupy two office spaces totaling 13,673-square-feet.

Jon Rosenberg and Keri Davies of Levrose Commercial Real Estate negotiated both leases on behalf of the Landlord and Jerry Roberts of CBRE represented the Tenant.

The office expansion announcement comes as the latest in a series of announcements from Sam Fox, including the opening of Fox’s latest restaurant, Doughbird Pizza & Rotisserie, which opened on Tuesday, March 28. Also announced was Fox’s nomination for Outstanding Restaurateur for the 10th year in a row by the James Beard Foundation.

Meanwhile in the Old Pueblo, work being done by Common Bond Development Group and partner Sam Fox continues on The Yard at Grant Road Lumber, 2543 E Grant Road in Tucson, a 20,000-square-foot restaurant building that promises to be the “nicest Yard to date”. Opening is planned for Sept 2017.

Common Bond Development Group is also building a 6,825-square-foot multi-tenant retail pad on the immediate corner of this project on Grant Road with quoted rents in the “low-$40’s/SF, NNN.”

These two Tucson projects represent approximately $15 million combined investment.

For more information on the Tucson property sale see Real Estate Daily News September 9, 2016 and see early grading of the Yard at Grant Road Lumber here.

Building Under Construction Reaches 65 Percent Leased Before Completion

PHOENIX, Arizona — Irgens – Phoenix has announced three signed tenants totaling more than 27,000- square-feet for its Spectrum Medical Commons, a medical campus near Val Vista Drive and the 202 Santan Freeway.  The building, which is currently under construction, is scheduled for completion in Fall 2017.

The Spectrum Medical Commons property is located immediately adjacent to Dignity Health Mercy Gilbert Medical Center.  Warner Park Surgery Center (operated by United Surgical Partners, International) has leased 15,334-square-feet in the building. Dignity Health has leased 5,992-square-feet and Advanced Surgical Associates, Ltd. has leased 5,979-square-feet.

The two-story, multi-tenant building at 3367 S. Mercy Rd. will contain approximately 44,000- square-feet of space and is now nearly 65 percent leased.  The building will feature tenant amenities such as common conference facilities, a common break room and shaded outdoor seating.

Irgens hosted a “beam signing” event this week to celebrate the construction progress and tenant lease commitments.

“Construction is moving at a great pace and we have just hit a significant milestone with tilted up walls on this exciting project,” says Jason Anzalone, vice president of development with Irgens. “We are excited to have so much of the building committed to tenants before completion and are eager to see patients being served at Spectrum in September of this year.”

The building has been designed by Devenney Architects.  Leasing is being handled by Mike Dupuy and Rachael Thompson of Kidder Mathews.  Fletcher Perry of Kidder Mathews represented Advanced Surgical Associates in its lease.  John Asher with AT Real Estate Services represented Warner Park Surgery Center.

For more information, Anzalone should be contacted at 602-682-0192 .

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.

U.S. stock indexes closed slightly lower Friday after a day of mostly listless trading. Despite the downbeat finish to the day, the stock market posted strong gains for the quarter. The Standard & Poor’s 500 index’s gains amounted to its best three-month stretch since the fourth quarter of 2015. The Nasdaq composite turned in its best quarter since the end of 2013.

Friday, the S&P 500 index fell 5.34 points, or 0.2 percent, to 2,362.72. The Dow Jones industrial average lost 65.27 points, or 0.3 percent, to 20,663.22. The Nasdaq fell 2.61, or 0.04 percent, to 5,911.74. The Russell 2000 index of smaller-company stocks picked up 3.57 points, or 0.3 percent, to 1,385.92.

For the week, the S&P 500 is up 18.74 points, or 0.8 percent. The Dow is up 66.50 points, or 0.3 percent. The Nasdaq is up 83 points, or 1.4 percent. The Russell 2000 is up 31.28 points, or 2.3 percent.

For the year, the S&P 500 is up 123.89 points, or 5.5 percent. The Dow is up 900.62 points, or 4.6 percent. The Nasdaq is up 528.62 points, or 9.8 percent. The Russell 2000 is up 28.79 points, or 2.1 percent.

Green Valley Hospital is filing for Chapter 11 bankruptcy protection Monday to get out from under crushing debt and to secure the long-term financial stability of the area’s first hospital, the CEO said. John Matuska said Friday that the filing, likely Monday, will make no obvious impact on day-to-day operations, and that there will be no layoffs or reductions in services. “You wouldn’t even know it if (the filing) wasn’t public,” said Matuska, who became the hospital’s third CEO in October. He said the long-anticipated move came about because the hospital was overbuilt and undercapitalized, and that the filing will “clean up the massive amount of debt at a high interest rate, plus fees” incurred since it opened in May 2015. Chapter 11 allows an organization protection from creditors as it reorganizes. Total liabilities are $88 million; a hospital of this size — 49 beds — should have debt of about $37 million, he said. Matuska said he expects the bankruptcy process, which involves “a couple hundred” creditors, to take about five months. “It really is a new beginning for the hospital once we get through this,” he said. “There was no other option to solve this problem,” he said. (GV News)

U.S. consumers increased their spending at the weakest pace in six months, while the 12-month rise in consumer prices was the largest in nearly five years. Consumer spending edged up 0.1 percent in February following a similarly sluggish 0.2 percent increase in January, the Commerce Department reported Friday. The small gains suggest that overall economic growth likely slowed in the first quarter. Incomes, however, were up a solid 0.4 percent in February, offering hope for stronger consumer spending in the months ahead. Meanwhile, an inflation gauge closely watched by the Federal Reserve increased 2.1 percent in February compared to a year ago. It is the sharpest 12-month rise since March 2012 and slightly above the Fed’s 2 percent inflation target. The Fed raised a key interest rate in March, just three months after a hike in December. Officials have sent signals that the pace of rate hikes will accelerate this year after seven years of stagnant rates at a record low near zero. In the last two years, the Fed nudged rates up just one time in each of those years. The overall economy grew at a 2.1 percent rate in the October-December quarter, supported by a strong gain in consumer spending. But with the recent weakness in spending, which accounts for 70 percent of economic activity, many analysts believe growth in the January-March quarter could slow to a rate of 1.5 percent or less before accelerating in the months ahead.

Fed’s Fischer says he sees two more rate hikes in 2017 “Federal Reserve Vice Chairman Stanley Fischer told CNBC that he sees the central bank raising rates two more times this year. Two rate hikes, seems to be ‘about right,’ Fischer said in an exclusive interview on ‘Power Lunch’ on Tuesday. He said the Fed’s current outlook hasn’t changed very much. In its March meeting, the Fed said it still expects its federal funds rate to be about 1.4 percent at end of 2017. Traders tracked by the CME Group also seem to be pricing in two more rate hikes for the current year.” (CNBC)

Figures on government spending and debt in millions of dollars. Start off with Total public debt subject to limit March 29: $19,808,747; Statutory debt limit: $19,808,772. The government’s fiscal year runs Oct. 1 through Sept. 30.

Retailers Could Get Slammed by Slowing International Tourism “The last thing beleaguered high-end U.S. retailers need right now is for another big chunk of their customer base to go AWOL. U.S. shoppers pulled back from luxury purchases in the wake of the Great Recession, leading stores to become more dependent on Chinese, Brazilian, and European tourists to pick up the slack. Now they’re caught in a geopolitical pickle. More international visitors are cutting back on trips to the U.S. because of the perception that the country is becoming inhospitable to foreigners, the travel ban on citizens from six countries, and global headlines about hassles at customs. Plus, the strengthening U.S. dollar against the euro and the yuan has made shopping here less appealing.” (Fortune)

U.S. House committee approves bill to increase scrutiny of Fed “A Republican-controlled committee of lawmakers approved a bill on Tuesday to allow a congressional audit of Federal Reserve monetary policy, a proposal Fed policymakers have opposed and which faces an uncertain path to final approval. Democrats uniformly spoke against the proposal during a meeting of the House of Representatives Committee on Oversight and Government Reform, suggesting the bill would face stronger resistance than in the past. ‘We should not in any way hinder their independence,’ said Representative Carolyn Maloney, a New York Democrat, echoing the sentiment of Fed policymakers who say they could come under political pressure to avoid making unpopular decisions such as raising interest rates to slow growth and control inflation. The next step for the bill would be a floor vote by the entire House, where Republicans hold a solid majority.” (Reuters)

How middle-class and even wealthy American families are sliding inexorably into the red “Not even a high six-figure salary is enough to keep New York City families out of the red. But spare a thought for the average American family, whose costs easily outpace the average income. A recent analysis from Sam Dogen at his personal finance website Financial Samurai showed how difficult it is for high earners to escape the rat race in New York City, one of the priciest places to live in the world. He analyzed a mock budget for an imaginary family of four in which the two 35-year-old breadwinners each make $250,000 a year. After factoring in taxes, 401(k)contributions, home and child care costs, the family was left with just $7,300 for the year — as if they were living ‘paycheck to paycheck.’” (MarketWatch)

To Address Affordable Housing Shortage, Restoring 19th-Century Homes “The tiny city of Apalachicola, Fla., is well known in preservationist circles for its abundance of restored 19th-century buildings, but when it comes to affordable housing, the Gulf Coast community comes up short. ‘Twenty-eight percent of the population in Franklin County pays 40 percent of its income for housing,’ said Jeffrey Sharkey, a political consultant from Tallahassee, Fla. Mr. Sharkey is one of the investors in Denton Cove, a proposed multifamily housing development that has divided the community and prompted a discussion about whether the city’s housing problem should be solved with new homes or the historic ones that are its legacy. Denton Cove would be a 52-unit cluster of town homes built on the site of a decommissioned high school and paid for through the sale of Housing and Urban Development low-income tax credits.” (New York Times)

SummerHill to Develop 994-Unit Mixed-Use Property in CA “SummerHill Housing Group will develop Nuevo, 988-residential units and six live-work units in the 65+/-Lawrence Station area plan in Santa Clara, Calif. Nuevo will consist of 451 for-sale residential units, six for-sale live/work units, 537 apartments and approximately 40,000 square feet of neighborhood retail and restaurants. The company has started the demolition of the aging light industrial facilities located on site and expects to commence grading for the apartments this summer. ‘It is a true masterplan, which is rare in this day and age in the Bay Area,’ Robert Freed, SummerHill Housing Group’s president & CEO, told MHN. ‘Its proximity to both jobs and transportation is another key element.’ SummerHill’s Nuevo community will include 41 E-Homes, 176 TownFlats, 114 E-Towns, 120 condos, six live/work units and 98 affordable apartment homes. Amenities for residents of the apartment homes will include pools, club rooms, fitness centers, business centers, pet grooming facilities, bike storage and outdoor BBQ areas.” (MultiHousing News)

Study: Restaurants deliver halo effect for retail centers “For the first time ever in 2016, U.S. restaurant sales eclipsed grocery store sales — and that’s good news for retail centers. The amount of space dedicated to food in retail centers has grown from 5% in 2007 to 15% today.  And the trend is expected to increase to 20% by 2025, according to a study, ‘The Successful Integration of Food & Beverage within Retail Real Estate,’ from the International Council of Shopping Centers (ICSC). ‘The increasing popularity of dining out is revitalizing retail real estate around the globe by creating a true sense of community where people can go out to dinner, take in a movie and shop, all in one place,’ said Tom McGee, president and CEO of ICSC. ‘Centers that are strategic and innovative when incorporating foodservices are sure to reap benefits such as increases in foot traffic, dwell time and number of visitors.’ The two main factors driving the growth are technology advancements and the rise of an experience economy, which was fueled by millennials and adopted by all generations.” (Chain Store Age)

Best U.S. Markets for Buying Single Family Rental Homes in 2017 Revealed  “ATTOM Data Solutions has just released its Q1 2017 Single Family Rental Market Report, which ranks the best U.S. markets for buying single-family rental properties in 2017. According to their study, the average annual gross rental yield (annualized gross rent income divided by median purchase price of single family homes) among the 375 counties was 9.0 percent for 2017, down from an average of 9.1 percent in 2016.” (World Property Journal)

After a big bonus, General Growth CEO pay declines “General Growth Properties CEO Sandeep Mathrani earned $12.7 million in 2016, less than a third of the $39.2 million he was awarded the previous year. A one-time $25 million stock award in 2015 accounted for most of the decline. Without the huge payout, which won’t vest before February 2020, Mathrani’s total compensation would have slipped $1.5 million, according to a proxy the Chicago-based mall operator filed with the Securities & Exchange Commission. His base pay ($1.2 million) and non-equity incentive comp ($3 million) have been flat for three years. After a “say on pay” shareholder vote last year, General Growth’s compensation committee opted to prohibit guaranteed minimum benefits and excise tax gross-ups and other pay practices. Since 2014, base pay has been flat and long-term equity incentives have declined 20 percent for directors, the proxy said. Mathrani, 54, took over as CEO of the nation’s second-largest shopping mall owner in 2011, a couple of months after the real estate investment trust emerged from Chapter 11 bankruptcy protection.” (Crain’s Chicago Business)

Developers are moving ahead with $300 million Plano mixed-use project “Developers have gotten the go ahead to move forward on a $300 million Plano mixed-use project on U.S. Highway 75 Los Angeles-based Regent Properties is redeveloping the 84-acre former Texas Instruments campus near the southeast corner of U.S. Highway 75 and Legacy Drive. Work is already underway to convert four old TI buildings into new generation office space. And now Plano officials have okayed zoning for Regent to build almost 700 apartments, retail space and a hotel in the project on the west side of U.S. 75. ‘We were full speed ahead with our Legacy Central project before, and this just reinforces our ability to deliver a great mixed-use project with this residential component approval,’ said Regent CEO Eric Fleiss. ‘Two of our office buildings are almost completed as is our fitness center.’” (Dallas News)