PHOENIX, AZ – Lee & Associates Arizona is pleased to announce the hiring of Sean M. Bishop, CCIM, as Principal. Sean brings extensive experience in retail investment and tenant and landlord representation.

Since 2008, Sean was a Principal and Designated Broker at Middlefork

Commercial, LLC, a Phoenix-based commercial real estate fi rm that provided leasing, investment sales, tenant representation, and property management services.

“We are pleased to have Sean join our team. He has the entrepreneurial spirit and broad knowledge of the retail market that will bring added value to our office,” said Fred Darche, Managing Principal.

Over his 17-year career, Sean’s results-driven approach to the Phoenix retail leasing and investment market has led to many successes and a positive reputation from his

peers. As a Certified Commercial Investment Member organization (CCIM) since 2003, Sean served as the Central Arizona CCIM Chapter President in 2006 and is currently a member of the International Council of Shopping Centers (ICSC).

Sean graduated in 2001 from Arizona State University with a bachelor’s degree in real estate.

For more information, contact Sean Bishop, CCIM, at 602.954.3774 or email him at [email protected].

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.

Monday, the Dow Jones industrial average sank 166.62 points, or 0.9 per cent, to 18,094.83. The Standard & Poor’s 500 index slid 18.59 points, or 0.9 per cent, to 2,146.10. The NASDAQ composite gave up 48.26 points, or 0.9 per cent, to 5,257.49.

Benchmark U.S. crude rose $1.45, or 3.3 per cent, to $45.93 a barrel in New York. Brent crude, the international benchmark, rose $1.46, or 3.2 per cent, to $47.35 a barrel in London. In other energy trading, wholesale gasoline gained 3 cents to $1.40 a gallon. Heating oil rose 4 cents, or 3 per cent, to $1.45 a gallon. Natural gas added 4 cents to $3 per 1,000 cubic feet.

US stocks slide as banks tumble on Deutsche Bank worries — U.S. stocks slumped Monday, and banks took the biggest losses. Deutsche Bank plunged as investors worried about the financial health of Germany’s largest bank. Pfizer pulled drugmakers down after it announced it won’t break up into two companies. It was the second day in a row that stocks fell. Banks were hurt by a drop in bond yields, which means lower interest rates and smaller profits on loans. Consumer companies fell as home improvement retailers were affected by a slowdown in sales of new homes. (AP)

Sales of new homes tumbled 7.6 per cent in August — Sales of new homes retreated in August, one month after surging to the highest level in nearly nine years. New home sales dropped 7.6 per cent last month to a seasonally adjusted annual rate of 609,000 units, the Commerce Department reported Monday. That followed a surge in sales in July when they jumped 13.8 per cent to a rate of 659,000, the fastest pace since 2007. Sales had been expected to slow following the July surge. Even with the August decline, sales of new homes are up a solid 20.1 per cent from a year earlier. (AP)

Town of Oro Valley seeking photos and art of Steam Pump Ranch for monthly art shows –Would you like your art or photography displayed in a monthly art show? The Town of Oro Valley is issuing a call to artists and photographers for work featuring historic Steam Pump Ranch. Photos, paintings and other works of art (all mediums considered) will be displayed for one to two months during the Town’s monthly art shows in the Pusch Family Ranch House, held during the Second Saturdays at Steam Pump Ranch events. If you would like your photos or art considered, please contact Joel Woppert to set an appointment for review. You may reach him at [email protected] or at 229-5064. Selection process for the October show begins October 3.

Examining The Core Value Of REITs “When researching a REIT, it is fairly easy to find discussion about FFO, AFFO, dividend yield, price and NAV. What is harder to find, is analysis of the actual assets being purchased, the prospects for appreciation of those assets and the risk that those assets might become liabilities if a tenant leaves. As someone who works in real estate during my day job, I have seen REITs make some great purchases, and others make some really risky purchases. When considering whether or not to purchase a REIT, I want to know the quality of the assets and whether the REIT is paying a premium… REITs have experienced great capital growth in recent years, and along with that has been increased competition for NNN leases. The result is a large increase in the costs of purchasing a leased building, especially for companies that have investment grade ratings.” (Seeking Alpha)

China’s housing frenzy is still on “Home prices in China are ‘high and hard to accept,’ said 53.7 percent of the respondents in a survey by the People’s Bank of China, published in the People’s Daily, the official paper of the Communist Party. Only 42.9 percent found them ‘acceptable.’ And only 23.1 percent predicted that they would rise next quarter, while 11.9 percent expected them to fall. But that isn’t stopping people from wanting to participate in this frenzy. “Nevertheless, the ratio of residents who were prepared to buy a house within the next three months increased 1.3 percent from the third quarter to reach 16.3 percent,” according to the People’s Daily. That’s a lot of people “prepared to buy a house,” even with prices “high and hard to accept.” There are several remarkable things in this survey: the worried tone in terms of the soaring prices, the increased desire to buy because, or despite, of the soaring prices, and the fact that this survey came via the official party organ from the PBOC which has been publicly fretting about the housing bubble, the debt bubble that comes along with it, and what it might do when it deflates.” (The Real Deal)

They built towering new cities in China. Now they’re trying it in downtown L.A.“Los Angeles real estate has long attracted foreign investment, be it from Japan, Canada and South Korea. But no one is building from the ground up the way the Chinese are today. Chinese developers such as Greenland, Oceanwide and Shenzhen Hazens are pouring billions into the neighborhood, adding thousands of new residential units in soaring skyscrapers that will fundamentally change the city’s skyline. Since 2014, Chinese developers have been involved in at least seven of 18 land deals downtown in excess of $19 million, according to real estate firm Transwestern. ‘When all these megaprojects are finished, they’re going to have to reshoot the postcard picture of downtown L.A.,’ said Mark Tarczynski, executive vice president for Colliers International’s L.A. office. By investing in Los Angeles, the builders are staking downtown’s revival closer to the Chinese economy. A sizable share of home buyers for the new downtown developments are expected to come from China, where many in the middle and upper class are looking to the perceived safety of foreign real estate to diversify their wealth. That trend has been exacerbated by the uncertainty of China’s slowing economy. The building boom is something of a showcase for Chinese real estate companies, which are willing to pay a premium to establish themselves as global brands. The foray overseas has also demonstrated the many differences between building in both countries — an experience both sides will need to learn from if the U.S. is to remain a prime destination for Chinese capital.” (The Los Angeles Times)

Here’s What is Next for Marriott After Finalizing Its Acquisition of Starwood “On Friday, Marriott International finalized its $13 billion acquisition of Starwood Hotels, creating the world’s largest hotel company. Marriott’s global chief commercial officer Stephanie Linnartz said the company would have preferred to pay the initial price it offered Starwood, before it raised its offer due to competing bids from China-based Anbang Insurance. Still, Marriott expects hundreds of millions of dollars in cost synergies. TheStreet’s Scott Gamm reports from Wall Street.” (The Street)

Restarting the Stalled Condo Market in Cities Like Chicago “Condominium development is back in Chicago, starting off smaller—but often grander—than before the recession that slowed construction to a crawl for nearly a decade. At the current stage of the latest condo construction cycle, projects are much smaller, typically featuring fewer than 100 units. Yet the size of the individual units, along with their price tags, has swelled in 2015 and 2016. And that is unlikely to change anytime soon, according to a ULI Chicago panel discussion held September 22 at the Union League Club of Chicago. ‘The days [when] we could build a two-bedroom, two-bath condominium unit of 1,100 to 1,200 square feet [102 to 111 sq m] and sell [units] for $300,000 are gone,’ residential developer Alan Lev, president and CEO of Belgravia Group, said during the event. ‘It’s not going to be back. A two-bedroom unit, if you’re lucky, is in the high fours. And this is not downtown. This is out in the neighborhoods.’” (Urband Land Institute)

Fed Inaction Is Bullish For Real Estate And Lumber “Lumber is an interest rate sensitive commodity. Low rates created a bullish environment for lumber as home building surged. In the U.S. the new home market has outpaced resales of existing housing units…The latest inaction from the U.S. central bank was welcome news for the lumber market. A Fed Funds rate of 25-50 basis points for the ninth straight month in 2016 means the downward risk in the stock and bond markets has decreased dramatically for the coming months. One of the trends that have emerged in the housing market over recent years is that sales of new construction are outpacing existing home sales. Prices for new homes have increased dramatically, and new communities are popping up all over the U.S. Many home buyers prefer a fresh and new home as historically low interest rates afford the opportunity to borrow cheap money for those with the income and credit to seize the opportunity.”  (Seeking Alpha)

HFF Arranges $210M Financing for National Retail Portfolio “HFF has arranged a total of $210 million in first lien financing for Westwood Financial Corp., secured by 10 retail centers totaling roughly 974,000 square feet in Arizona, California, Kansas, North Carolina and Texas, HFF announced late last week. The two new loans comprise a substantial chunk of Westwood’s restructuring of 77 of is 120 retail center holdings (representing more than 280 entities), plus its management company, into a single $1.2 billion retail real estate company, operating as Westwood Financial. In an announcement about 10 days earlier, Westwood co-CEOs Joe Dykstra and Randy Banchik had highlighted ‘massively reduced complexity,’ easier access to capital and appeal to larger investors as major advantages from the reorganization.” (Commercial Property Executive)

Cleveland’s $132M Rockside Road Project Gets Green Light  “The Seven Hills, Ohio, city council recently approved the PUD zoning required by LSB Seven Hills LLC for its 52-acre, mixed-use Rockside Road project. According to Cleveland.com, the estimated cost of the Rockside Crossings development is $132 million. LSB bought the site in 2015 and is now looking to develop luxury apartments, retail, a 120-key hotel and an independent senior living facility close to the intersection of interstates 77 and 480. Neighbored on one side by a dense residential area and a large cluster of offices and hotels on another, Rockside Crossings will rise 10 miles south of Downtown Cleveland. The team behind the project includes Boca Raton, Fla.-based Focus Development, architectural firm Bialosky Cleveland, Atwell Group, Goodman Real Estate, law firm Thompson Hine and Cleveland-headquartered Project Management Consultants LLC.” (MultiHousing News)

Westbrook wouldn’t let Clinton rent office space at 444 Madison “Hillary Clinton probably shouldn’t bank on a vote from executives at Westbrook Partners. The investment firm refused to let the presidential nominee sublease the 32nd floor of its 444 Madison Avenue, the New York Post reported. Clinton had reached an eight-year agreement in 2014 to sublease the entire floor from Rainier Investment Management, which had leased the space for two years. Though the deal was fairly far along, the landlord stepped in and blocked Clinton Executive Services Corp., a private company owned by the Clintons, from leasing the space, the Post reported. Westbrook, whose founder Paul Kazilionis is a registered Republican, wouldn’t say if the decision was political, but indicated that the firm didn’t want to deal with such a famous tenant at the 42-story, 475,000-square-foot building.” (The Real Deal)

Landlord-slay suspect seems to sleep during closing arguments “The man on trial for the murder of a prominent Brooklyn landlord looked more sleepy than concerned during closing arguments Thursday — dozing off at one point despite the fact that he could face life behind bars if convicted. Kendel Felix’s fate now lies in the hands of a 10-woman, two-man jury, but he spent part of prosecutor Howard Jackson’s summations with his face cradled in one hand, apparently lulled to sleep by the mountains of evidence Jackson and ADA Emily Dean have leveled against him in a three-week trial. Felix’s eyelashes fluttered as he listened to Jackson describe the ‘damning evidence’ that placed him at every stage of the botched robbery that left Menachem Stark dead, and his charred body burning in a Great Neck dumpster in January 2014.” (New York Post)

The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report from September 19 thru 23, 2016.

RETAIL – 60 N. ALVERNON WAY, TUCSON
JJ & G Consulting Services, LLC, leased approximately 8,147-square-feet of retail space located at 60 N. Alvernon Way from HSL 60 Alvernon, LLC.  Pat Darcy of Tucson Realty & Trust Co. represented the Landlord and James Robertson of Realty Executives represented the Tenant in the transaction.

RETAIL – 1802 E. IRVINGTON RD., TUCSON
Little Castle Childcare & Preschool III LLC leased 4,246-square-foot at 1802 East Irvington Road Tucson. The building was formerly occupied by KinderCare and is located within Irvington Plaza, which includes tenants such as O’Reilly Auto Parts, Goodwill, Walgreens, and eegee’s. Kevin Volk and Debbie Heslop, CCIM, of Volk Company represented the Landlord, EC Irvington Foundation, LLC. [mepr-show rules=”58038″]Tenant Phone: 520.294.1648[/mepr-show]

INDUSTRIAL – 1374 E. 17^th St., TUCSON
Alex Tellez leased 3,000-square-feet at 1375 E. 17^th St. in Tucson, from Rich Rodgers South, Inc.  Brandon Rodgers, CCIM, Principal with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Asking lease rate: $1.00 SF/MO Mofified Gross[/mepr-show]

RETAIL – W. INA RD. AND CAMINO MARTIN, MARANA
Chicken Nuevo leased a 2,567-square-foot, free-standing, drive-thru building located at W. Ina Rd. and Camino Martin in Marana, AZ., from Western Tire Centers, Inc.  Greg Furrier, Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord and Juan Teran with Realty Executives Elite, represented the tenant in this transaction.

OFFICE – 5225 E. KNIGHT DR., TUCSON
CareATC, Inc. leased 1,763-square-feet at 5225 E. Knight Dr., Suite 201 in Tucson, from TMC Holdings, Inc. Rick Kleiner, MBA, Office Specialist with Cushman & Wakefield | PICOR, represented the landlord and Jeff Casper with CBRE, Inc., represented the tenant in this transaction.

INDUSTRIAL – 1664 S. RESEARCH LOOP, TUCSON
Alltech Solutions, Inc. leased 1,240-square-feet in Clairemont Plaza, 1664 S. Research Loop, Suite 226 in Tucson, from Clairemont Partners, LLC.  Rob Glaser, Industrial Specialist with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.64 – $0.75 SF/MO Modified Gross; Tenant Phone: 520.241.2906[/mepr-show]

RETAIL – 1801 S. ALVERNON WAY, TUCSON
City of Refuge International Church leased 1,200-square-feet in Midpoint Business Plaza, 1801 S. Alvernon Way, Suite 101 in Tucson, from Presson Midpoint, LLC.  Rob Glaser, SIOR CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.65 SF/MO Modified Gross[/mepr-show]

INDUSTRIAL – 1870 W. PRINCE RD., TUCSON
Southwest Mortuary Service, LLC leased 1,200-square-feet in Exchange Place Business Center, 1870 W. Prince Rd., Suite 58 in Tucson, from Presson Corporation.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.72 SF/MO Modified Gross; Tenant Phone: 520.235.0310[/mepr-show]

INDUSTRIAL – 6902 N. CAMINO MARTIN, MARANA
Rainbow International Restoration of Tucson leased 1,200-square-feet in the Old West Business Park located at 6902 N. Camino Martin, Suite 150 in Marana, AZ., from Acorn Ventures, LLC.  Jeff Zellet, Commercial Specialist with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.918.1707[/mepr-show]

OFFICE – 4511 N. CAMPBELL AVE., TUCSON
Flo-Chiropractic, Inc. leased 1,165-square-feet of medical office space at 4511 N. Campbell Ave., Suite 151 in Tucson, from Campbell Financial Plaza, LLC.  Isaac Figueroa, Office Specialist with Cushman & Wakefield | PICOR, represented the tenant and Andrew Sternberg with Oxford Realty Advisors, Inc., represented the landlord in this transaction.

OFFICE – 640 E. FORT LOWELL RD., TUCSON
Galaxy Smoke Shop leased 1,066-square-feet at 640 E. Fort Lowell Rd. in Tucson from First/Ft. Lowell, LLC.  Greg Furrier, Retail Specialist with Cushman & Wakefield | PICOR, handled this transaction.

OFFICE – 2020 N. FORBES BLVD., TUCSON
Kids of the King Tutoring Services, LLC leased 1,056-square-feet at 2020 N. Forbes Blvd., Suite 101 in Tucson, from Santo Tomas Partners, LLP.  Brandon Rodgers, CCIM, Principal with Cushman & Wakefield | PICOR, represented the landlord and Bob Davis with Tango Commercial Real Estate, represented the tenant in this transaction. [mepr-show rules=”58038″]Asking lease rate: $12.50 SF/YR Modified Gross; Tenant Phone: 520.790.5904[/mepr-show]

OFFICE – 4816 E. BROADWAY BLVD., TUCSON
Phoenix Marketing and Advertising, Inc. leased 951-square-feet of office space at 4816 E. Broadway Blvd. in Tucson, from MDSANRAK, LLC. Isaac Figueroa, Office Specialist with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Asking lease rate: $12.00 SF/YR Modified Gross; Tenant Phone: 520.777.7118[/mepr-show]

Submit all sales and lease transactions to [email protected]