Southwest Industrial Center I, LLC, an affiliate of Hillwood, a Texas-based private company, purchased 72.53 acres of vacant land for just shy of $11 million ($149,000 per acre). The parcel is located at the southwest corner of 75th Avenue and Buckeye Road in Phoenix, adjacent to Swift Transportation’s property, the seller, at 2200 S 75th Avenue in Phoenix. From public records, it appears the property was bought for development.
Ross Perot, Jr. founded Hillwood in 1988, based on the core values of character, courage and integrity. Rooted in a strong entrepreneurial vision, Hillwood is committed to bringing long-term value to customers and partners through real estate development, investments and public-private partnerships.

Based in Dallas, Texas, Hillwood is ranked as one of the top industrial, commercial and residential real estate developers in the country. It actively develops and buys industrial land and buildings across the U.S. This makes Hillwood somewhat unique as an investor and developer. In addition to being a leader in commercial and residential developments as well as specialized projects such as sporting arenas, industrial airports and museums, their work has been consistently recognized as best in class.

The company has developed more than 23,000 residential lots, in more than 70 locations across the United States and Costa Rica.

The seller, Swift Transportation (Jerry Moyes, CEO) acquired the property in 2004 as a portion of a larger 150-acre piece.

Fifth Third Bank handled financing for the transaction by a $22.2 million construction loan, maturing September, 2016 with two 1-year options under the note. The financing documents do give glimpse into the scope of the planned project: ‘Hillwod must seek approval from Fifth Third to enter into a lease for less than 340,670-square-feet for seven years to a S& P’s BBB rated company at a fully net rate of $4.08 per square foot.’

Hillwood Development can be reached at (214) 303-5535. Swift Transportation should be called at (602) 269-9700.

Business Matters 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 stock market to save you time. You might find anything here for a quick read and tidbit of knowledge. We also call it the reading candy store.

The Dow Jones Industrial average rose 26.45 points, or 0.2%, to close 14,802.98. The NASDAQ composite fell 17.06 points, or 0.5%, to 3,677.78. The S&P 500 index gained 0.95 points, or 0.1%, to 1,656.40. On Day Nine of the Government Slim Down.

DG OPENS 11,000^th STORE

Goodlettsville, Tenn. — Dollar General Corp. has opened its 11,000^th store, marking itself as the retailer with the most stores in the United States. The store is located in Murfreesboro, Tenn. Dollar General said it anticipates opening 650 new stores in 2013, with plans to create 6,000 new jobs. “The opening of our 11,000^th store is another exciting milestone for Dollar General. I would like to thank our more than 100,000 employees for all they do every day to serve our customers as we continue to grow,” said Rick Dreiling, Dollar General’s chairman and CEO.

Colliers: Fifth Avenue has highest retail rent, at $3,052 per square foot

Seattle – According to Colliers International 2013 Global Retail Highlights Report, the global retail real estate market rebounded in the first half of the year, with international and luxury brands expanding to new markets and high street properties growing in popularity. Fifth Avenue in Manhattan claimed the highest rental rate, at $3,052 per square foot, followed by Hong Kong’s Queen’s Road Central ($2,086) and Canton Road, Tsim Sha Tsui ($1,993), London’s Old Bond Street ($1,520) and Manhattan’s Madison Avenue ($1,325). The popular retail destinations in major U.S. metro areas are seeing big increases in rents. In New York, rents on Fifth Avenue increased by 11% from the previous year. In Las Vegas, rents on the Boulevard increased by 25%. Philadelphia’s Walnut Street had the fastest-rising rent, growing nearly 34% in the past year

Desert Classic Golf Tournament at Sewailo Golf Club in Tucson, Nov 6th

EXPO AIGA, the Southwest’s Foremost Gaming & Business Summit and Trade Show, tees up on Wednesday, November 6, 2013 with the Desert Classic Golf Tournament at Sewailo Golf Club in Tucson, Arizona. Shotgun start is at 9 a.m. Sewailo Golf Club is located on over 200 acres of pristine desert on the southwest side of Tucson, Arizona, directly adjacent to the 4 Diamond rated Casino Del Sol. Sewailo Golf Club and Casino Del Sol are enterprises of the Pascua Yaqui Nation. The name, “Sewailo”, means flower world in the Yaqui language. The new 72-par Sewailo Golf Club was designed by Ty Butler and Notah Begay III and is owned by the Pascua Yaqui Tribe. The course is managed by Troon Golf. “We are ready for golfers to come out here for the Desert Classic Golf Tournament,” announced Dan LaRouere, General Manager of Sewailo Golf Club. “The course condition right now is spectacular and it will be in top condition in November.”  LaRouere describes Sewailo as a blend of a traditional and desert golf. “The scenery is gorgeous and the fairways are generous. We do have quite a bit of water. We have water on seven different holes and a mile of streams run through the property.”  Golfers can register as individuals, pairs and foursomes by visiting www.azindiangaming.org or calling (602) 307-1570 (602) 307-1570. The tournament fee is $225.00 per golfer and includes 18-holes of scramble format golf, range balls, breakfast and the awards luncheon.  Bank of America, Merrill Lynch and Visit Tucson are sponsors for the golf tournament.  Additional sponsorship opportunities are still available.  See the website for details.  Advance registration rates for EXPO AIGA close October 31, 2103.

DDR CLOSES ON $1.46 BILLION TRANSACTION WITH BLACKSTONE

Beachwood, Ohio — DDR Corp. has closed a previously announced acquisition of a portfolio of 30 power centers from a joint venture with Blackstone Real Estate Partners VII L.P. and settled its forward equity sale. DDR acquired Blackstone’s 95% share. The company funded the investment through a combination of proceeds from the issuance of new common equity and unsecured debt, preferred equity and mezzanine loan repayments and the assumption of existing mortgage debt.

KW RELEASES BENEFITS MARKETPLACE JUST IN TIME FOR OBAMACARE

Franchisor Keller Williams Realty Inc. has selected ConnectedHealth as its e-commerce benefits platform, which will allow U.S.-based Keller Williams associates to shop for health care through a co-branded version of ConnectedHealth’s Web platform in time for the launch of “Obamacare.” The KW Wellness Benefits Marketplace is expected to launch in December, the companies said, helping Keller Williams associates navigate the new complexities of health benefits. Associates logging onto the platform will be able to determine whether they are eligible for a government subsidy, and can shop and apply for subsidy-eligible insurance. Associates that don’t qualify for government subsidies can access a range of medical and ancillary insurance with national and regional companies. By selecting ConnectedHealth’s consumer-focused solution, “Keller Williams Realty provides their associates the support and guidance to feel confident that they have selected the right coverage for themselves and their families,” the companies said. Beginning Jan. 1, the Patient Protection and Affordable Care Act — “Obamacare” — requires that all individuals have minimum health coverage, or pay a penalty (officially called a “shared responsibility payment”) that will be phased in over the next few years. The penalty will be phased in over the next few years.

FORMER ZILLOW BROKER REP DUANE FOUTS JOINS WEST USA REALTY

Duane Fouts, who left his consulting position with Zillow in August after a year of leading the portal’s efforts to strengthen its relationship with brokers, has joined Phoenix-based brokerage and franchisor West USA Realty Inc. as managing broker and head of its “Internal Broker Alliance” program. Before joining Zillow in April 2012, Fouts owned and ran Phoenix-based Dan Schwarz Realty Inc. for 14 years and has served as president and vice president of the Arizona Association of Realtors. West USA Realty, which maintains five offices in Arizona and claims to have 2,000 real estate agents affiliated with the brand nationwide, was the 17th-largest brokerage in 2012 with 13,389 transaction sides, according to Real Trends.

YELLEN OBAMA’S CHOICE TO SUCCEED BERNANKE

WASHINGTON – Capping a lengthy and politically charged search, President Barack Obama will nominate Janet Yellen, the Federal Reserve’s vice chair, to be chairman of the nation’s powerful central bank, succeeding Ben Bernanke at a pivotal time for the economy and the Fed’s monetary policies. If confirmed by the Senate, Yellen would be the first woman to head any country’s major central bank anywhere in the world. She also would be the first Democrat chosen to lead the Fed since Paul Volcker was picked by President Jimmy Carter in 1979. France’s Christine Lagarde heads the International Monetary Fund. Obama was scheduled to make the announcement Wednesday with Yellen and Bernanke at his side in the White House’s ornate East Room.

FED NOW UNLIKELY TO SLOW BOND BUYING BEFORE 2014

WASHINGTON – The Federal Reserve’s decision last month to maintain the size of its economic stimulus was a shocker. Just about everyone expected a pullback in its bond purchases, which have helped keep loan rates low. And now? Thanks to the government’s partial shutdown, many analysts don’t think the Fed will reduce its stimulus before next year. And with the White House’s choice of the like-minded Janet Yellen to succeed Ben Bernanke as chairman next year, the Fed will likely be cautious about any pullback in early 2014. Bernanke and the Fed may also now look a bit wiser to those who questioned their stance last month. After all, a key reason Bernanke gave for maintaining the pace of the Fed’s stimulus was Washington’s budget impasse. It posed a risk to the economy and financial markets, he suggested.

SHUTDOWN MEANS NO NEW BEER FROM CRAFT BREWERS

MILWAUKEE – The federal government shutdown could leave America’s craft brewers with a serious hangover.Stores will still offer plenty of suds. But the shutdown has closed an obscure agency that quietly approves new breweries, recipes and labels, which could create huge delays throughout the rapidly growing craft industry, whose customers expect a constant supply of inventive and seasonal beers.

WALMART SPLITS FROM INDIA PARTNER; RETAIL ON HOLD

MUMBAI, India – Walmart Stores said Wednesday it is splitting from its Indian business partner and suspending plans for its own retail stores in India because strict government regulations on sourcing from local small businesses make it impossible. The move by the world’s largest retailer represents a blow to India’s attempts to attract foreign investment in the huge but underdeveloped retail sector. Walmart already runs a wholesaling joint venture in India and will continue that business, buying out partner Bharti Enterprises. Despite a potential market of 1.2 billion people, no large foreign chains have formally applied to open supermarkets and other multibrand stores since the government changed the law last year to allow them to invest more in the $400 billion sector previously reserved mostly for Indian companies. The new law allows international companies to open multibrand retail stores with 51% ownership and an Indian minority partner.

MEN’S WEARHOUSE GIVES BRUSH OFF TO JOS. A. BANK’S $2.3 BILLION

NEW YORK – Nothing like getting the brush-off. Jos. A. Bank proposed to acquire its bigger rival Men’s Wearhouse in a $2.3 billion deal that could create a men’s wear juggernaut with close to 2,000 stores. But the leaders at Men’s Wearhouse — which sent the company’s founder packing last summer — rejected the offer about two hours after the proposal was publicly disclosed, calling it opportunistic and inadequate. Jos. A. Bank Clothiers disclosed Wednesday that it had made the unsolicited proposal in September to buy Men’s Wearhouse for $48 per share in cash, a 42 per cent premium at the time.  Men’s Wearhouse said in rejecting the deal Wednesday that it wasn’t in the best interest of its shareholders or the company.

THE FOLLOWING INDUSTRIAL PROPERTIES BY SUBMARKET WERE BOUGHT FOR INVESTMENT PURPOSES:
SOUTH SUBMARKET
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[mepr-show rules=”58038″] Tin Cup Properties of Tucson (John Lashley) purchased the 8,439 sq. ft. industrial building at 220 E 27th Street in South Tucson for $300,000 ($36 PSF). The seller, Archie and Janice Anderson Revocable Living Trust had been an owner occupant. Property was built in 1979, has 7 grade level doors, and is on a fenced .58 acre lot zoned SB-2A. Vacant at time of sale, property was an investment purchase to be leased to multi-tenants. Ron Zimmerman with Cushman & Wakefield | Picor represented the buyer and is also leasing the property. Since property sold, 2,100 sq. ft. has already been leased to two separate tenants. Zimmerman should be contacted at (520) 748-7100.

SOUTH SUBMARKET

802/816 Evans, LLC of Tucson (Billie Meuschke) bought the multi-tenant industrial building at 802-816 E Evans in Solomon Industrial Park in Tucson for $450,000 ($38 PSF). The 11,850 sq. ft. building (built 1973) has 8 grade level doors and is built out to accommodate four tenants. There was 4,100 sq. ft. vacant at time of sale. The seller was Niner Holdings, LLLP of Portland, OR and no brokers were involved in the transaction.

CENTRAL SUBMARKET
R. W. and B.J. Strunk Trust acquired the industrial property at 3752 E Hardy Dr. in Tucson from Doherty Plumbing, Inc. for $220,000 ($92 PSF). Doherty Plumbing occupied the 2,400 sq. ft. building (built 1999) on a 10,800 sq. ft. lot prior to sale. The buyer purchased the property as investment for lease and had an undisclosed tenant for the property subsequent to the purchase. Property is zoned MU.

CENTRAL SUBMARKET
The 12,200 sq. ft. industrial building at 2020-2050 E Eastland in Tucson sold to Spectrum Capital Investments, LLC for $350,000 ($29 PSF) for investment. Property includes two parcels totaling .64 acre with a 20’ clear span metal building (built 1971) with over 6,000 sq. ft. of storage mezzanine, and approximately 1,200 sq. ft. of office space. Building has one grade level and one well dock, fenced yard, and 200A/240V/single phase power and 100A/208V/3-phase power. Property had a clean phase I environmental report and a C of O from the City of Tucson for warehouse usage. Two bathrooms had new fixtures. Mark Hays of Tierra Antigua in Tucson represented the seller, K&E Buildings Family, LLP. Brandon Rodgers of Cushman & Wakefield | Picor represented the buyer. Rodgers can be reached at (520) 546-2714 and Hays is at (520) 444-5401.

NORTHWEST SUBMARKET
A.D. Post Service Company of Tucson (Daniel Post) purchased the industrial property at 13830 N Adonis Road in Marana for $252,500 ($105 PSF). The 2,400 warehouse on 1.5 acre yard was constructed in 1992. It has 400 A/208V/ 3-phase power, 2 grade level doors and is zoned HI (Heavy Industrial) near I-10 and downtown Marana. The yard area has electrical, phone and sewer hookup for an office trailer. The seller was Sumac, LLC of Tucson. Buyer purchased property as investment to lease.

THE FOLLOWING PROPERTIES WERE SOLD TO INDUSTRIAL OWNER / USERS:

CENTRAL SUBMARKT
A&K Team of Tucson (Andrew Aragon, managing member) dba Revolvstore Services, an independently owned and operated service shop specializing in nothing but Volvos, bought the property at 175 W Plata in Tucson. The 5,243 sq. ft. property (built 2010) sold for $485,000 ($93 PSF) and has one grade level on a .69 acre lot with I-1 zoning. The seller was Stamoff Investments, LLC of Tucson (Richard St. Aubin, managing member). Revolvstore has relocated to the property and will be an owner occupant.

CENTRAL SUBMARKET
The 4,451 sq. ft. industrial property at 449 E Fort Lowell in Tucson sold to an owner / user for $310,000 ($70 PSF). The building was built in 1979 on a 22,412 sq. ft. lot. Tony Reed with Long Realty represented the seller, the Musse Goldbaum Living Trust and Ed Henne also with Long Realty of Tucson represented the buyer. Reed can be reached at (520) 915-5189 and Henne is at (520) 918-5989

WEST SUBMARKET
Christopher and Kylie Harvey, dba Blue Coyote Paint, purchased the property at 2251 N Dragoon in Tucson for $150,000 ($76 PSF). The 1,968 sq. ft. building (built 1988) is zoned I-1 and sits on a 16,478 sq. ft. lot. Blue Coyote Painting is a painting company specializing in the residential/commercial painting and repainting of fine Tucson homes and businesses for more than 25 years. Tony Reed of Long Realty in Tucson represented buyer and seller, MJI Company of Phoenix (Micah Strunk, managing member). Reed should be contacted at (520) 915-5189.

SOUTH SUBMARKET
Gerson’s Building Supply purchased 4,431 sq. ft. at 4726 S Country Club Rd. in Tucson from KMS Enterprises, LLC for $425,000 ($96 PSF). Gerson’s moved from 1811 S Park Avenue where it operated for more than 30 years selling used building supply materials. Brandon Rodgers of Cushman & Wakefield | Picor represented the seller and Curt Stinson with Realty Executives Tucson Elite represented the buyer in the transaction. Rodgers can be reached at (520) 546-2714 and Stinson is at (520) 877-4942.

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