Phoenix, AZ – CBRE has completed the sale of a free-standing retail property located at 111 W. University Drive in Tempe, Ariz. The ±3,288-square-foot retail property is situated on approximately 14,117-square-feet of land and commanded a sale price of $1.7 million ($517 per square foot).

Andrew Fosberg, Max Bippus, and Bert Kempfert with CBRE’s Phoenix office represented the seller, Tempe, Ariz.-based Ehrhardt Investment Properties, LLC. Greg Saltz with GPS Retail, LLC represented the Scottsdale, Ariz.-based buyer, SimonCRE Alpha, LLC.

“The Property is located just west of Mill Avenue on University Drive in Downtown Tempe.  Ehrhardt Bike Shop occupied the Property for 30 years,” said Fosberg. “It will be exciting to see SimonCRE’s new use for the building, building on their momentum in Downtown Tempe.”

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.

The Dow Jones industrial average added 17.95 points, or 0.1 per cent, to 17,938.28. The S&P 500 picked up 2.72 points, or 0.1 per cent, to 2,112.13. The Nasdaq composite dipped 6.96 points, or 0.1 per cent, to 4,961.75.

Benchmark U.S. crude oil added 67 cents, or 1.3 per cent, to $50.36 a barrel in New York. Brent crude, which is used to price international oils, added 89 cents, or 1.8 per cent, to $51.44 a barrel in London. In other energy trading, wholesale gasoline held steady at $1.59 a gallon. Heating oil added 4 cents to $1.54 a gallon. Natural gas gained 1 cent to $2.47 per 1,000 cubic feet.

US worker productivity slumped again in 1Q — American workers were less productive again in the January-March quarter, although the decline wasn’t as severe as first thought. Meanwhile, labor costs climbed at a faster pace than initially estimated. The Labor Department said Tuesday that productivity declined at an annual rate of 0.6 per cent in the first quarter after a 1.7 per cent drop in the fourth quarter. The government first estimated that productivity fell at a 1 per cent rate. Labor costs for employers rose at a 4.5 per cent rate in the first quarter, even faster than the 4.1 per cent gain first reported.

What Low Rates? These 15 REITs Have Dividend Yields of Up to 9.7% “Are you looking mainly for income from your investments? If so, it’s a good time to buy shares of real estate investment trusts, or REITs, because the Federal Reserve is on your side. Following a dismal employment report Friday, Federal Reserve Chairwoman Janet Yellen on Monday seemed to backtrack from recent comments predicting an increase in interest rates over the coming months. When official rates rise, the market value of income-producing securities tend to fall.” (MarketWatch)

The Alchemist Who Turned Toxic Assets into Gold at Citigroup “The memo landed on a Sunday in November. It was 2007, and securities backed by subprime mortgages were roiling markets and imperiling banks. Merrill Lynch Chief Executive Officer Stan O’Neal had just resigned under pressure, and Citigroup CEO Chuck Prince was rumored to be on his way out. So the Nov. 4 memo to employees in Citigroup’s markets division seems bold in hindsight.” (Bloomberg)

For Private Equity Firms, Rising Rates Are a Double-Edged Sword “A rising interest-rate environment is negatively correlated to the business of private equity. That’s just a wonkier way of saying that bad things hurt. Rising interest rates equal bad things for private equity. An increase in interest rates — perhaps as early as later this month — is widely anticipated. Friday’s jobs report may change the timing of a rate hike, but not the likelihood.” (The Street)

Ralph Lauren to Cut Jobs, Close Stores across U.S. “Ralph Lauren is the latest retailer to announce cuts in stores and layoffs. The fashion icon will be shedding jobs and closing stores as part of its new turnaround plan, the details of which will be unveiled on Tuesday when the company’s chief executive, Stefan Larsson, speaks with analysts. About 50 stores — mostly full-price locations — and 8 percent of the company’s 15,000 full-time employees will be eliminated, according to sources familiar with the plan.” (New York Post)

Best Buy’s Turnaround May Already be Over “Best Buy CEO Hubert Joly deserves major credit for figuring out how to stop the bleeding at an electronics retail chain that had been left for dead. But that doesn’t mean he’s figured out how to breathe new life into the business. Saving a company from implosion is one thing. Setting it on a path for growth is an entirely different proposition. And the latter question is what’s vexing investors.” (Bloomberg)

The Net Investment Income Tax: Does It Apply to Rental Real Estate? “Higher income individuals are subject to a 3.8-percent tax on their net investment income (NII). In addition to traditional portfolio income, the NII tax applies to income and capital gain from rental real estate, unless that income or gain is derived from a non-passive trade or business. Determining whether your rental real estate activities are exempt from NII tax is more complicated than you might think. Here are several questions you need to ask.” (Commercial Observer)

When Will the Investor Honeymoon with Real Estate End? “Going on ten years after the crash, the question now is: when will these investors cash in their real estate holdings and put that money to work in traditional vehicles such as stocks and bonds? The answer just may be: not now, maybe not ever. At least some experts and investors argue that many investors look to stay put in real estate.” (The Street)

Marriott CEO: Expect “Tens of Billions in Chinese Investment” in U.S. Hotels “If there’s one person who knows a thing or two about the impact of growing Chinese interest in U.S. hotels, it’s Marriott International CEO Arne Sorenson. Earlier this year, Sorenson came close to losing a bidding war over Starwood Hotels & Resorts to Chinese insurer Anbang Insurance Group – and he expects more to come.” (The Real Deal)

Hotels are Getting Cozy with Airbnb “It may be like the Hatfields sitting down with the McCoys, but some hoteliers are actually learning to live with Airbnb. ‘We can co-exist,’ said Hilton Worldwide Chief Executive Christopher Nassetta. ‘We watch them closely and it’s not all bad what they are doing.’ Nassetta, who spoke at the New York University International Hospitality Industry Investment Conference on Monday, said he speaks with Airbnb executives ‘a lot’ and has met CEO and co-founder Brian Chesky several times.” (New York Post)

Onex Targets $283M Sellout at Final Sky View Parc Condo Tower “Onex Real Estate Partners is seeking a $283 million sellout at the Grand Three condominium building at Sky View Parc – the sixth and final condo tower at the developer’s massive Flushing residential-and-retail complex. The New York state Attorney General’s office approved Onex’s condo offering plan for the 280-unit Grand Three on May 3, meaning the building is now able to launch sales and is targeting an average unit price of just over $1 million.” (The Real Deal)

Colliers International’s Hahn, Sherman and Koskovich Negotiate Sale of 132-Unit Asset

 Phoenix, AZ – Colliers International in Greater Phoenix completed the sale of the 132-unit Las Brisas Apartments at 1000 N. Arizola Rd. in Casa Grande, AZ, for $6.25 million or approximately $47,349 per unit.

Bill Hahn, Jeff Sherman and Trevor Koskovich, executive vice presidents with Colliers’ Phoenix office, represented both the seller and buyer. The seller was Ronald Hansman of Redwood City, CA. The buyer was California Capital Real Estate Advisors of Pasadena, CA, who plans moderate property upgrades.

Built in 1986, Las Brisas is a 132-unit Class B property consisting of eight two-story buildings with 90,584 rentable square feet set on approximately 6.96 acres. The community offers 12 studios, 40 one-bedroom and 80 two-bedroom units, ranging from 412 to 830 square feet. Occupancy at time of sale was 96 percent.

Common amenities include a swimming pool, spa, Wi-Fi hotspots, laundry facilities, outdoor barbeques, picnic areas, 240 covered parking space and additional open parking. Unit features include walk-in closets, ceiling fans, dishwashers, private patios and balconies. Select units offer a breakfast bar and wood-burning fireplace.

“California Capital Real Estate Advisors owns multiple properties in Phoenix, Tucson and Las Vegas and has been very active for the past five years,” said Hahn. “Las Brisas provided an opportunity for them to acquire an asset in the growing Casa Grande market that offers a better rate of return than comparable properties in the Phoenix metropolitan area.”

Casa Grande’s population is growing annually by approximately three percent—more than double the pace of growth seen nationally. Residents are drawn to the city due to its affordable housing, proximity to job centers and healthy infrastructure. Casa Grande is strategically located at the intersection of the Interstate 8 and Interstate 10 highways in an area known as Arizona’s Golden Corridor.

K-12 schools, big-box retailers, grocery stores, the Promenade at Casa Grande Mall, Casa Grande Regional Medical Center and the Palm Creek Golf & RV Resort are all located within a two-mile radius of Las Brisas. The University of Arizona and Arizona State University are just one hour away.