Barker Pacific Group and Rockwood Acquire Class A Office Building in Pasadena’s Lake Corridor

Pasadena, CA – In a joint venture with Rockwood Capital, Barker Pacific Group (BPG) has acquired 301 N Lake Avenue, a 227,019-square-foot Class A office building in Pasadena, California. The project was built in 1989 and is located on one of Pasadena’s most prominent and active thoroughfares. Previously operated by Washington Capital Management on behalf of an unidentified seller, the 11-story office building is in pristine condition.

“We’re excited to return to Pasadena,” said Michael Barker, BPG’s Managing Director. “301 N Lake is in a fantastic location, and there is a great opportunity to take advantage of the city’s strong market conditions.”

Pasadena is currently seeing a boom in office market activity, with nearly 230,000-square-feet of positive net absorption through the second quarter of 2018. The area is picking up steam, with over 20 new deals in the last quarter and several large tenants looking for space. Average office rents in the city are still below their previous peak. The BPG-led joint venture plans to make strategic improvements to modernize the property, adding value while taking advantage of market conditions and bringing businesses to the area.

“With an attractive cost basis, strong location, and excellent physical bones, 301 N Lake will be an excellent addition to BPG’s portfolio,” said Michael Barker.

Rockwood Capital’s John MacDonald said, “This property is a great fit with one of Rockwood’s key investment strategies – investing in dynamic mixed-use urban environments in properties that benefit from public transportation. We are confident in the long-term desirability of office space in downtown Pasadena.”

CBRE’s Mike Longo and Sean Sullivan brokered the sale of the property. Debt financing was provided by JP Morgan.




Mark Irvin Commercial Real Estate Services Appoints Christopher Irvin to Sales Associate Position

Tucson, Ariz. – Mark Irvin Commercial Real Estate Services, LLC has grown its medical and office property brokerage, development, and consulting footprint with the appointment of Christopher Irvin to the firm’s new sales associate position. Irvin, whose real estate license was first conferred in 2005, brings a wealth of experience to the firm, ranging from real estate to food service.

 “We’re thrilled that Christopher has joined our team, a move that will help equip us for another generation of success in meeting the commercial real estate needs of the very community in which he was raised,” said Mark Irvin, managing member of Mark Irvin Commercial Real Estate. “Christopher embodies the same spirit of service upon which this firm was built in 1995, and that’s an unyielding commitment to excellence for our clients and stakeholders, and a deep appreciation for community involvement and philanthropy.”

Prior to joining the firm, Christopher Irvin spent ten years in food service as a cook in kitchens across Southern Arizona, including Jonathan’s Cork and Wildflower. These experiences called on his creative aptitude, which he says will be regularly tapped in his new assignment that requires a strategic blend of business art and science around issues from marketing to property positioning; from location strategies to tenant relations and retention.

 Christopher Irvin graduated from the University of Arizona in 2017 with a Bachelor of General Studies degree with an emphasis on economy and industry. He received his prelicensure education certificate from the Hogan School of Real Estate in 2018 and completed an internship at Mark Irvin Commercial Real Estate Services in 2006.




PACC offering discounts & free microchips leading up to the New Year

Holiday celebrations can scare pets

PIMA COUNTY – Pima Animal Care Center has teamed up with No Kill Pima County to offer up a microchip clinic for the last week of December. By offering this free service, PACC officials hope to reunite more pet owners with their lost pets following the New Year’s holiday.

Celebrations involving fireworks can often scare pets into running away. On average, PACC takes in an average of 470 pets the week following New Year’s Eve. In these cases, microchipped pets stand a better chance of being reunited with their owner.

To take advantage of this free service, visit Pima Animal Care Center, 4000 N. Silverbell Road, on the following dates:

  • Dec. 26, noon to 3 p.m.
  • Dec. 27, noon to 3 p.m.
  • Dec. 28, 10 a.m. to 1 p.m.
  • Dec. 29, 10 a.m. to 1 p.m.
  • Dec. 30, 10 a.m. to 1 p.m.
  • Dec. 31, noon to 3 p.m.

All microchip clinics will take place in PACC’s Community Room.

In addition to getting pets microchipped, PACC recommends pet owners get a collar with a license and a tag with updated contact information on their pets. The license, tag, and microchip are the best way to make sure people are reunited with their pets if they run away.

PACC is running a couple of special adoption promotions for the holidays. For the 12 days leading up to Dec. 25, all pets four months and up are $12 to adopt. Then from Dec. 26 until Jan. 1, PACC will have a “Name Your Own Fee” promotion for pets four months and up.

The shelter will also have special hours for the holidays. PACC is open noon to 5 p.m. on Christmas Eve and closed on Christmas Day. On New Year’s Day, PACC will be open at noon and will close at 5:00 p.m. The staff will be offering adoptions only that day.

All pets adopted from PACC will come spayed or neutered, with age-appropriate vaccinations, a microchip and a free vet visit. A separate $19 licensing fee will apply to dogs. People who are interested in adopting a pet can look for them online or visit them in person at 4000 N. Silverbell Road. PACC’s normal business hours are Monday through Friday, noon-7 p.m. or 10 a.m. to 5 p.m. on the weekends.




ABI Multifamily Brokers $31.8M Apartment Community Located in Phoenix

Phoenix, Arizona –– ABI Multifamily, the Western US’s leading multifamily brokerage and advisory services firm, is pleased to announce the $31,827,500 / $119,652 per unit sale of Sanctuary on 22nd located in Phoenix, Arizona.  Built in 1985, Sanctuary on 22nd rests on approximately 10.14-acres and underwent an exterior & partial interior renovation in 2016.

The community features a newly renovated fitness center, contemporary clubhouse with fireplace, coffee bar, and social patio, business center, BBQ grill area, and two resort-style pools with cabanas and spa. The interior amenities include two tone paint, contemporary backsplash in kitchen, black appliance package, luxury wood plank vinyl flooring, contemporary light and plumbing fixtures, full-size washer & dryer, spacious closets, and newly updated white cabinets with brushed nickel & finished hardware. This community is located in one of the top locations in Phoenix near North Mountain and just a half mile from the light rail.

“The Seller had executed their plan to fully renovate the exterior and amenities and approximately half the units. With road map in-hand, the Buyer can add additional value by completing the interior renovations” states Rue Bax, Senior Managing Partner and lead broker for the selling entity.

“The Buyer was drawn to the property’s proximity to the light rail and the Metro Phoenix Commerce Center, whose tenants include DeVry University and Chamberlain College” states Doug Lazovick, Partner and lead broker for the buying entity.

The buyer is a California-based investor.

The seller is a California-based investment group.

The multifamily brokerage team of Rue Bax, Doug Lazovick, John Kobierowski, Alon Shnitzer, and Eddie Chang represented the seller in this transaction.

To learn more about ABI Multifamily at http://www.abimultifamily.com/




Arizona Economy Hits the Accelerator

Arizona’s Fourth Quarter 2018 Economic Outlook Update
By George W. Hammond, Ph.D., Director and Research Professor, EBRC

TUCSON, Arizona –With accelerating gains, the Arizona economy is set to carry significant momentum into the new year. State job growth hit 3.0% over the year in the third quarter, which was well above the national rate of 1.7% and was the fastest pace in two years. Construction activity led growth, with strong increases in jobs, permits, and prices. While most job gains were concentrated in Phoenix, Tucson generated rapid growth as well. Overall, the state is firing on all cylinders.

The baseline forecast calls for the U.S., Arizona, Phoenix, and Tucson economies to accelerate in the near term, driven in part by federal tax cuts and increased federal spending. However, as the stimulus wears off growth is expected to slow. Recession risks are ever present, but are most likely to come to the fore in late 2019.

Arizona Recent Developments

Job growth in Arizona picked up steam in the third quarter, with the state adding 81,500 jobs over the year, according to preliminary estimates. That translated into 3.0% growth, which far outstripped the national rate of 1.7%, and was the fastest pace since the third quarter of 2016. The Phoenix Metropolitan Statistical Area (MSA) added 72,400 jobs over the year, for 3.6% growth, while the Tucson MSA added 8,900 jobs, for 2.4% growth.

As Exhibit 1 shows, construction employment added the most jobs over the year in the third quarter, with 15,700. However, growth was solid across most sectors in Arizona. Indeed, professional and business services; education and health services; leisure and hospitality; trade, transportation, and utilities; and manufacturing each added well in excess of 5,000 jobs over the year.

Job gains generated during the past year far outpaced gains during the third quarter 2016 to third quarter 2017 period, when Arizona added 63,900 jobs for 2.4% growth. As the exhibit shows, the state generated a significant acceleration in job gains in construction; professional and business services; and manufacturing. Gains have slowed in financial activities.

Construction jobs rose at a blistering pace during the third quarter of 2018, up 10.6% over the year. In part, that reflected continued gains in housing construction activity. Year to date through September, statewide housing permits rose 10.6% over 2017. That was driven by gains in single family (up 11.6%) and multi-family (up 8.2%) activity.

Arizona house prices continued to rise at a rapid clip in the second quarter of 2018, far outpacing income gains. Statewide house prices, measured by the Federal Housing Finance Agency, rose 8.8% over the year. That beat the nation at 6.6%. Overall, housing affordability continues to decline, but is probably not yet in the red zone.

Arizona’s merchandise exports to the world are on the rise once again. Year to date through August, state exports increased 7.2% over 2017. However, exports to Mexico and Canada were down, by 1.3% and 1.5%, respectively. In contrast, Arizona’s exports to Asia, Europe, and South/Central America were up 10.5%, 11.0%, and 68.5%, respectively. While the U.S. dollar remains elevated against most currencies (including the Mexican peso and Canadian dollar), the impact of the dollar appreciation should be dissipating at this point. On that score at least, the signs point to stronger export performance going forward.

Arizona Outlook

The October U.S. outlook from IHS Markit calls for real GDP growth to accelerate in 2018 to 2.9%, from 2.2% last year. Gains then decelerate to 2.8% in 2019 and then to 2.0% in 2020 and 1.6% in 2021. Overall, growth is strong in the near term, driven in part by federal tax cuts and increased spending, but that is followed by slower growth as the stimulus wears off and demographic forces (aging of the baby boom generation) reassert themselves.

Monetary policy is expected to continue on the current path toward higher interest rates. The federal funds rate, a key overnight interest rate targeted by the Federal Reserve, is expected to rise from 1.82% this year to 3.43% by 2022. That is expected to drive the 30-year conventional mortgage rate up from 4.55% this year to 5.24% by 2022.

With interest rates on the way up, now is a good time to pay more attention to financial indicators of macroeconomic performance, particularly the yield curve (which highlights interest rate spreads by maturity). The difference between the 10-year Treasury bond rate and the three-month Treasury bill rate is one commonly used indicator of the interest rate spread. Since long-term interest rates are normally higher than short-term rates, the difference is usually positive.

Note from the exhibit that when the interest rate spread has turned negative, it has tended to happen just before a recession (recessions are the shaded areas on the exhibit). While the spread is still positive (at 0.8 percentage points), it has declined significantly and is at its lowest level since late 2007. This will be an indicator to keep a close eye on as the Federal Reserve continues to reduce monetary policy accommodation.

Rising interest rates contribute to slower gains in residential investment, but are not forecast to generate a decline in housing starts. Indeed, the forecast calls for starts to rise from 1.27 million this year to 1.44 million by 2022.

The U.S. outlook puts a firm foundation under the Arizona forecast, as Exhibit 6 shows. The forecast calls for job growth in Arizona to accelerate from 2.6% last year to 2.9% in 2018, then to slow to 2.7% in 2019, and again in 2020 to 2.2%.

Most of the job growth is forecast to be in service-providing sectors, especially education and health services; professional and business services; trade, transportation, and utilities; and leisure and hospitality. Those four sectors alone are forecast to generate 68.9% of state job gains through 2020. However, all sectors add jobs during the next two years, including financial activities; construction; government; manufacturing; other services; information; and mining.

Housing permits are forecast to rise during the forecast, hitting 43,812 by 2020, as population gains more than offset the impact of higher interest rates.

Rapid job gains this year will contribute to solid personal income growth of 5.5% in 2018, followed by stronger gains in 2019-2020, of 6.4% and 6.3%, respectively. Income gains pick more steam as tightening labor markets put upward pressure on wages.

Higher personal income translates into solid improvement in taxable retail sales during the forecast.

Rising jobs contribute to solid net migration inflows, which, when combined with positive natural increase, generate population growth of 1.7% in 2018, followed by rates of 1.6% in 2019 and 2020.

Overall, Arizona is forecast to outpace the nation in all major macroeconomic indicators. However, gains remain well below average rates posted before the Great Recession.

*Forecast data for Arizona, Phoenix MSA, and Tucson MSA.

 




Presson Corporation Purchases Van Buren Industrial Center

Cushman & Wakefield Negotiates $6.6 Million Sale on Behalf of Black Equities

PHOENIX, Arizona – Cushman & Wakefield announced that Phoenix-based Presson Corporation purchased Van Buren Industrial Center. Black Equities of Beverly Hills, Calif. sold the property, located at 34–74 N. 45th Avenue in Phoenix, for $6.6 million.

Bob Buckley, Tracy Cartledge and Steve Lindley of Cushman & Wakefield’s Phoenix office negotiated the transaction on behalf of the seller.

Van Buren Industrial Center is a 173,888-square-foot industrial complex in southwest Phoenix. The multi-tenant building, built in 1982, features 16–22-foot clear heights, dock-high doors in all suites, and evaporative-cooled warehouse space. At the time of sale, the building was 57-percent leased.

“Van Buren represented the opportunity to acquire a project at an attractive basis that will be able to capitalize on the continually improving market dynamics in Phoenix,” said Buckley.




Cushman & Wakefield | PICOR Expands Retail Brokerage Services in Tucson

Ramiro Scavo

TUCSON, ARIZONA — Ramiro Scavo joined the Cushman & Wakefield | PICOR retail brokerage team in November 2018, after 25 years in the restaurant business. He served as both an executive chef and restaurant owner before launching his commercial real estate career.  Ramiro moved to Arizona from Chicago at age thirteen and has lived and worked in Cave Creek, Scottsdale, and Tucson.

He has owned businesses throughout the Tucson area, giving him depth of market knowledge. Ramiro translates his strong focus on relationships and first-hand retailer experience to his practice advising business owners and operators on their location needs. His past accolades include Iron Chef, Tucson 2009/2010, Tucson Weekly “Best Chef” nominee 2016, Tucson Lifestyles “Best New Restaurant” 2012, and a 2010 bronze medalist in the Arizona Chef of the Year competition.




Greystar Purchases River Ranch in Chandler, AZ for $32 Million

Cushman & Wakefield Negotiates Sale of 188-Unit Multifamily Community

PHOENIX, Arizona – Cushman & Wakefield completed the sale of River Ranch, located at 6152 W. Oakland Street in Chandler, Ariz. Greystar GP II, LLC, an entity formed by Greystar of Charleston, S.C., purchased the 188-unit multifamily community from PHX Oakland 2010, LLC, a company formed by Acacia Capital Corporation of San Mateo, Calif., for $32 million ($170,213 per unit).

Executive Managing Director Jim Crews from the Cushman & Wakefield Phoenix office represented the seller.

River Ranch is a two-story, eleven building, garden-style complex which offers one- and two-bedroom floor plan options averaging 742 square feet. Built in 1986, the property has gone through various capital improvements totaling $2.5 million over the last seven years including washers/dryers installed in all units, roof replacement, exterior paint, and new black appliance packages in 31 units.

Unit interiors include washer/dryer, private balcony or patio, spacious pantry closets, wood style flooring, internet/cable ready, individual hot water heaters and walk-in closets. Common area amenities include two sparkling swimming pools and spas, pet friendly, playground area, fitness center, picnic areas and barbecue grills, covered parking and parcel storage center.

“This sale represented a win/win scenario for both the buyer and seller. The seller was able to monetize significant gains in their investment fund due to the long term ownership of the asset. The buyer saw additional upside in the renovation potential of the unit interiors in the Chandler submarket, one of the fastest growing areas of Phoenix,” said Crews.




Velocity Retail Group Sells Shopping Center for $8.3 Million

Phoenix, Arizona — Velocity Retail Group’s Brian Gast, Senior Vice President represented the buyer in the $8.3MM investment sale of Mountain View Marketplace, located at 3131 E. Thunderbird Road in Phoenix. Fortis Development, LLC of Arizona purchased the center which totals approximately 172,000 square feet.   The Seller was Mountain View Shopping Plaza, L.P. a California limited partnership.

The shopping center included a vacant Safeway store, which Velocity Retail recently leased to VASA Fitness.  Other tenants include a Walgreens and a host of restaurants and service related businesses serving the surrounding community.  VASA Fitness will be 55,000 square feet and is expected to open in October 2019.

“The new owners have plans to redevelop and refresh the center with a new color scheme, signage, parking lot and lighting as well as updated architectural features,” said Gast.




NAI Horizon negotiates sale of $1.4M Mesa retail building

PHOENIX, ARIZONA– NAI Horizon Senior Vice President Jeff Adams represented the buyer and the seller in the $1.4 million acquisition of a freestanding retail building at 460 N. Country Club in Mesa, Arizona.

Adams represented AZIZ, LLC, an Arizona limited liability company of Tempe, Arizona, in its purchase of the 32,400-square-foot property. Adams also represented the seller, Shield of Faith Christian Center, an Arizona non-profit corporation of Gilbert, Arizona.

“This transaction was a win for both sides,” Adams said. “The buyer was able to complete his acquisition of the entire arterial corner consisting of nearly 77,000-square-feet on roughly 7.53 acres, increasing his future flexibility. The seller is moving into a new space that better fits its needs. This was a smooth transaction with two cooperative, willing parties.”

The buyer plans to run an import business out of the building, which sits on 2.33 acres. The building also will serve as a storage facility. It features 100 percent improved HVAC system and is an arterial corner facility in Mesa.




Strong Industrial Future Spurs New Phoenix Commercial Real Estate Firm

Industry veteran announces formation of Citywide Commercial

PHOENIX, Arizona – Supported by the long-term positive outlook for the Phoenix commercial real estate industrial market, industry veteran Todd Hamilton has announced the formation of Citywide Commercial. The new boutique brokerage firm specializes in industrial properties of all types and sizes, in submarkets across metro Phoenix.

“We’re bringing a 23-year book of business under a new umbrella, where we’ll provide everything you would expect from a modern, boutique brokerage firm,” said Hamilton, Citywide Commercial Managing Principal. “That includes a deep understanding of the Phoenix market, a commitment to personal relationships and a fresh, unencumbered approach to the commercial real estate process.”

Services provided by Citywide include property and site evaluations, investment strategies, building acquisitions and dispositions, lease review and negotiations for both tenants and landlords, and marketing strategies.

“Our strategic geographic location and the benefits we provide within the product supply chain have given Phoenix a tremendous leg up in its economic development,” said Hamilton. “We’re excited to help clients capitalize on those fundamentals, which from where we stand are bright not only for the Valley but for the entire industrial landscape.”

Citywide is directed by Hamilton, a 23-year commercial real estate industry expert holding designations as both a Certified Commercial Investment (CCIM) and Society of Industrial and Office Realtors (SIOR) member. Hamilton has completed more than 25 million square feet of deals in metro Phoenix, focusing largely in industrial sale, lease and investment transactions. He has also been recognized as a CoStar Power Broker for 15 years, was a CCIM Arizona Chapter Board Member for three years and the president of Arizona Commercial Brokers Association (ACBA) for two terms. Hamilton holds a bachelor’s degree in finance from Arizona State University.

Hamilton is joined by Citywide Principal and Designated Broker Adam Shteir and Citywide Principal Chad Kirkorsky, creating a team that together over the past three years has been involved in more than 930 lease and sale transactions.

Shteir specializes in industrial sale and lease transactions, including a decade in property management that gives him a broad understanding of owner, landlord and tenant priorities. Prior to this, Shteir spent 16 years as a trader at the Chicago Board of Trade and Chicago Mercantile Exchange. He is a graduate of the Arizona School of Real Estate and Business and holds a Series 7 license.

As an Arizona native, Kirkorsky focuses on the sale and leasing of industrial and office warehouse space, including tenant relocations, expansions and investor acquisitions, and with an emphasis on technology-savvy marketing, site selection and leasing strategies. He holds a bachelor’s degree in Biology from the University of Arizona and is a graduate of the Arizona School of Real Estate and Business.

Citywide Commercial Real Estate is located in the heart of the Camelback Corridor at 2122 E. Highland Ave., Suite 335, in Phoenix. For additional information, contact the company at 602.313.1000 or www.citywidecre.com




Cascade Financial Services Signs 52,608 SF Lease at The Hub in Chandler

PHOENIX, Arizona CBRE has negotiated a 52,608-square-foot lease at The Hub, a 298,000-square-foot, two-story creative office building in Chandler, Ariz., on behalf of Clarius Partners. Cascade Financial Services, a specialized finance company serving Manufactured Home Buyers in the affordable housing space, will relocate its headquarters to The Hub from its Gilbert, Ariz. location to accommodate future growth.

 ”Cascade’s focus on serving the American dream through affordable home ownership has resulted in substantial growth.  We look forward to continuing this growth at the HUB and providing our borrowers with affordable options for home ownership.  It has been a pleasure to work with Clarius Partners throughout the process,” said George Dover, President and Co-Founder of Cascade. 

Corey Hawley and Jimmy Cornish with CBRE in Phoenix represented Clarius Partners in the lease negotiations. Tyson Breinholt with Commercial Properties, Inc. represented Cascade Financial Services.

“Clarius Partners and Walton Street Capital are excited to welcome Cascade Financial Services to The Hub as our first anchor tenant,” said Mark Balcius, Vice President at Clarius Partners. “We look forward to a successful, long-lasting relationship over the coming years.”

The Hub, which is situated on 76 acres at 2701 E. Ryan Road in Chandler, was recently repositioned from a R&D facility to a creative office building with modern finishes. The property features a light and airy lobby with collaboration and lounge areas, balconies and a rooftop patio, a full-service cafeteria, a state-of-the-art 100-seat training facility, outdoor shaded seating and BBQs.

The Hub is located in metro Phoenix’s East Valley submarket, which is home to approximately one-third of the metro’s population, and its population over the next five years is projected to grow at twice the national average.

 “The City of Chandler is grateful for the investment that Clarius Partners and Walton Street Capital have made to repurpose The Hub into office space,” said Mayor Jay Tibshraeny. “We congratulate them on securing a lease with Cascade Financial Services, which further adds to Chandler’s solid financial services position. We wish the company success in their new Chandler home.”