NAI Horizon Recent Deals: Highlight Leases and Sale of iconic Phoenix office building

PHOENIX, ARIZONA – The $5.4 million sale of a long-standing mobile home park in Apache Junction and the $4.63 million sale of an iconic Phoenix office building highlight recent deals by NAI Horizon professionals:

Russ Warner, Andrew Warner & Victoria Filice negotiated the sale of a mobile home park, representing the seller, Christine G. Weech Testamentary Trust & Hyrum Newell Weech Testamentary Trust, for $5.4 million. The property is located at 1050 E. Broadway Ave., Apache Junction, AZ. The buyer was First American Exchange Company as Qualified Intermediary for White Sands MHC LLC.

Lane Neville and Logan Crum negotiated the sale of a 28,312-square-foot office building, representing the seller, Alva Pinchot, LLC, for $4.63 million. The property is located at 2944 N. 44^th St., Phoenix, AZ. The buyer was Curran Properties, LLC.

Lease Transactions:

Isy Sonabend represented the tenant, Smalley and Company, in a 36-month industrial lease for 12,247 SF at 4250 S. 38th St., Phoenix, AZ. The landlord, Presson Broadway, LLC, was represented by David Bean with CPI.

Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, New Bell Tower, LLC, in a 62-month retail lease for 9,870 SF at 4925 W. Bell Road, Phoenix, AZ. The tenant, Lifetouch National School Studios, Inc., represented itself.

Kevin Higgins represented the tenant, Phoenix Children’s Center, Ltd, in a 120-month lease for 4,217 SF at 1661 E. Camelback Road, Phoenix, AZ. The landlord, IPF, 1661 LLC, represented itself.

Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, CP6ARP, LLC, in a 63-month retail lease for 3,974 SF at 18561 N. 59th Ave., Glendale, AZ. The tenant, JL Restaurant Group, LLC, was represented by Jeff Yager with Sage Property Management.

Troy Giammarco represented the landlord, Pisa Properties Sixteenth, LLC, in a 36-month office lease for 2,381 SF at 8765 W. Kelton Ln., Peoria, AZ. The tenant, Pediatric Partners, LLC, represented itself.

Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, Queen Creek Fiesta, LLC, in a 120-month retail lease for 2,000 SF at 21545 S. Ellsworth Loop Road, Queen Creek, AZ. The tenant, Shea Madison, LLC, represented itself.

Joan Krueger represented both tenant, Nationwide Waste Service and landlord, San Tan Irrigation District, in a 60-month office lease for 1,600 SF at 3798 E. Chandler Heights Road, Gilbert, AZ.

Kevin Higgins represented the landlord, Bogle Family Realty, LLLP, in a 48-month office lease for 1,401 SF at 7227 N. 16th St., Phoenix, AZ. The tenant, G.A. Yeager & Associates, Inc, represented itself.

Matt Harper, CCIM represented the landlord, Grand Center Plaza, LLC, in a 13-month retail lease for 1,382 SF at 11001 N. 99th Ave., Peoria, AZ. The tenant, Madison Grey Photography, LLC, represented itself.

Matt Harper, CCIM represented the landlord, SAJ Properties, LLC, in a 14-month retail lease for 1,310 SF at 15420 N. 67th Ave., Glendale, AZ. The tenant, Atomic Construction, LLC, represented itself.

Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented both tenant, Modern Warriors Pro, LLC, and landlord, CP6MF, LLC in a 63-month retail lease for 1,200 SF at 1840 E. Warner Road, Tempe, AZ.

Thomas Bean, CCIM and Jay Mininberg, JP represented the tenant, Martin J. Berkley, PLLC, in a 39-month office lease for 1,082 SF at 1500 E. Bethany Home Rd., Phoenix, AZ. The landlord, Jamel Greenway, LLC, was represented by Adam Tolson and Mike Marsh with Lee & Associates.

Matt Harper, CCIM represented both tenant, Stepping Stone Adult Development Center, LLC, and landlord, Elmo Tari Trust in a 20-month retail lease for 944 SF at 12235 N. Cave Creek Road, Phoenix, AZ.

Tucson Amazon Fulfillment Center–Weighing the Cost & Benefits

by Ajay Madhvani, MAI – AM Valuation Services, PLLC

Amazon will soon be opening a fulfillment center in the Port of Tucson. This will have both positive and negative impacts on the local economy. Ship times will be reduced andabout 1,500jobs will be directly created, but does this come at a cost? For initial insight, we analyzed a report in Economic Policy Institute titled Unfulfilled Promises prepared by Janelle Jones and Ben Zipperer on February 1, 2018. According to this report, the warehousing jobs increase but overall there is no noticeable difference in net jobs. This is largely due to lost jobs in the retail industry. This brings us to the next question, which retailers and businesses will be the most impacted?

Articles referring to more specific metropolitan areas such as San Bernadino and Cleveland report mixed feelings on Amazon fulfillment centers. Both metropolitan areas welcome the new jobs, nearby fast food restaurants saw increased business, and an old mall was repurposed into a warehouse in Cleveland. In both scenarios, Amazon made their presence known by reviving a previously declining area, filling old warehouses and a shopping mall that was vacant. The downside are that most jobs are low paying and/or seasonal, and there is a decline in existing retailers.

Retail Industry
The most obvious retailers that will not be impacted are gyms, medical or entertainment related, auto repair facilities, and restaurants. Next, we looked at Amazon’s top sellers, which are mostly tech or electronics related,like Alexa, Fire HD tablet, Bluetooth sound buds, robot vacuums, and memory cards. This would suggest that stores that sell electronics will be vulnerable like BestBuy, Office Depot, OfficeMax, and Conn’s Home Plus. However, most of these companies, like Amazon provide short delivery times.

Our research suggests that several other industries will be impacted by new fulfillment centers. Department and Big Box stores are the most susceptible, especially those that were late to adapt to short shipping times and online orders. Some examples of Big Box Stores that will be impacted by a new fulfillment center include Macy’s, JC Penny, Barnes & Noble, Costco, Target, and Walmart. Warren Buffet believes department stores are the low hanging fruit, his specific words were, “the department store is online now”. This makes sense as both Amazon and department stores sell all types of goods.

Other industries that will be impacted include pharmacies, shipping companies,and local businesses. The pharmacy business will be impacted since Amazon can deliver medications since it purchased Pill Pack in mid-2018. In addition, shipping companies such as FedEx and UPS will also be impacted,as Amazon will ship goods on their own. In Tucson,some local businesses come to mind,but they have loyal followings and their shoppers are less likely to order online, this includes businesses such as Casa Video, Bookman’s, musical instrument stores, and Zia Records.

These businesses have also adapted long ago, Bookman’s has events on most evenings, Casa Video has a bar, and most have downsized quite a bit in the past several years and also sell on-line.

Conclusion
In conclusion, the retail industry is constantly changing and retailers have to adapt quicker now than they did in the past. There will be casualties with a new Amazon fulfillment center but our research indicates that it will be gradual and undramatic. There might not be noticeable jobgains but overall will be a benefit to the region. A new Amazon fulfillment center will ultimately benefit the city with jobs, but some might just be a shift from retail. The consumer will also benefit with the increased convenience.

Read more here…

Hudbay To Appeal the Unprecedented Rosemont Court Decision

Hudbay’s Rosemont mine project showing solar panels

TORONTO, Ontario, Canada — Hudbay Minerals Inc. (TSX, NYSE: HBM) announced last week that the U.S. District Court for the District of Arizona (“Court”) issued a ruling in the lawsuits challenging the U.S. Forest Service’s issuance of the Final Record of Decision (“FROD”) for the Rosemont project in Arizona. The Court ruled to vacate and remand the FROD such that Rosemont cannot proceed with construction at this time. Hudbay believes that the Court has misinterpreted federal mining laws and Forest Service regulations as they apply to Rosemont. As such the company will be appealing the Court’s decision to the U.S. Ninth Circuit Court of Appeals.

The FROD was issued in June 2017 after a thorough process of ten years involving 17 co-operating agencies at various levels of government, 16 hearings, over 1,000 studies, and 245 days of public comment resulting in more than 36,000 comments.

“We are extremely disappointed with the Court’s decision. We strongly believe that the project conforms to federal laws and regulations that have been in place for decades,” said Peter Kukielski, Interim President and Chief Executive Officer. “We will be appealing the decision as we evaluate next steps for the Rosemont Project.”

Hudbay is an integrated mining company primarily producing copper concentrate (containing copper, gold and silver), molybdenum concentrate and zinc metal. With assets in North and South America, the company is focused on the discovery, production and marketing of base and precious metals. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States). The company’s growth strategy is focused on the exploration and development of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay’s vision is to be a responsible, top-tier operator of long-life, low-cost mines in the Americas. Hudbay’s mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which the company operates benefit from its presence. The company is governed by the Canada Business Corporations Act and its shares are listed under the symbol “HBM” on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima. Further information about Hudbay can be found on www.hudbay.com.