Starwood Waypoint Homes, a Scottsdale-based real-estate investment trust, merged this week with Invitation Homes in a deal that will birth a colossal single-family rental home owner with an $11 billion market capitalization and a whopping 82,000 homes in over a dozen metro areas. The new company will operate under the Invitation name.
As Phoenix negotiates the sale of the city-owned Sheraton hotel in downtown, a new aspect of the deal is sparking controversy: a proposed $97 million tax break for the buyer. The city already expects to take a hefty loss on the Sheraton. In July, Phoenix entered into exclusive talks to sell to TLG Phoenix LLC, an investment company based in Florida, for $255 million.
In just a year’s time, a vacant dirt field in the Glen Harbor Business Park has been transformed into the second largest industrial building in the Valley. With the Aug. 1 grand opening of Conair’s all new, 800,000 square foot, state of the art distribution center, the facility becomes the largest campus within their corporate system allowing this innovative, international leader to ship its products directly to the final consumer.
A total of 209,000 new jobs were created in July, more than the 183,000 jobs expected, the U.S. Bureau of Labor Statistics reported last week, and the national unemployment rate fell to 4.3 percent. The number of employed Americans hit a new high of 146.6 million, causing the employment-to-population ratio to move up to 60.2 percent, the highest level since February 2009.
Retail real estate investment trust CEOs have watched many of their stocks fall in recent months, with headlines about the death of malls and physical stores prompting executives to speak out in frustration. Simon, Macerich and GGP hope to convince analysts and investors that the situation isn’t as dire as some might think, and the REITs have strategies to stay ahead of bankruptcies and store closings. On recent earnings conference calls, many retail REIT CEOs discussed new opportunities being presented by e-commerce players
CBRE Research has released its Q2 2017 Phoenix Retail Market View and Q2 Phoenix Retail Big Box Report, and healthy levels of positive net absorption, steady big box leasing activity and a notable decline in the market-wide vacancy rate all point to a strong retail market in the second quarter of 2017. “With steady job growth and a hot housing market, the Valley exhibits strong fundamentals that are key to fostering a healthy retail market,” said Todd Folger
TEMPE, Ariz – American Campus Communities (NYSE: ACC), the nation’s largest owner, manager and developer of high-quality student housing properties in the U.S., in partnership with Arizona State University (ASU) announce the opening of The Fulton Schools Residential Community at Tooker House on ASU’s Tempe, AZ campus. Engineering undergraduates moving into the new Arizona State University residence hall this week will find themselves immersed in a collaborative, technology-laden living and learning community built specifically for engineers
The Blackstone Group’s (NYSE:BX) Invitation Homes (NYSE: INVH) and Starwood Waypoint Homes (NYSE: SFR), two of the country’s largest rental-home owners, are combining in a 100% stock-for-stock merger that would create one of the largest owners of rental homes in the U.S. with approximately 82,000 single-family rental properties. The combined company will operate under the Invitation Homes banner and continue trading on the New York Stock Exchange under the ticker symbol for Invitation Homes (NYSE: INVH)
Downtown Phoenix has nabbed another microbrewery. State 48 Brewery leased part of the historic Welnick Marketplace space on Fourth Avenue and Van Buren Street. When it opens in the renovated marketplace in early 2018, it will be the brewery’s second location. The original is the first and only microbrewery in Surprise. “We couldn’t be more excited about joining the downtown Phoenix community and taking part in the revitalization of the area,” owner Mario Rana said in a written statement
The Greater Phoenix real estate investment market started the year slow, but reversed course during second quarter. The most recent three months posted more property sales, higher prices and compressed cap rates, according to a report released by Colliers International in Greater Phoenix. Sales of shopping centers recorded one of the most dramatic increases during second quarter, spiking more than 50 percent over the first three months
East Valley cities face several challenges as they prepare for continued growth in coming decades. Planners in Mesa, Tempe, Chandler and Gilbert all say they have developed robust and diverse water portfolios. Eric Braun, Gilbert’s water resources manager, said Gilbert has complied with state law proving the town can meet estimated demand for the next 100 years
ICSC’s annual RECon Convention in Las Vegas is a great opportunity to get a pulse of the industry. Each May, the trends and themes expressed at RECon are a great way to get a snapshot of the retail and mixed-use industry’s health and collective mindset. So, you can imagine how surprised I was when I heard the words ‘retail death spiral’ from a reporter at this year’s event. “So…tell me about the retail death spiral,” was the exact, and first, thing out of her mouth
While commercial real estate crowdfunding firms haven’t disrupted the market, the top players have worked to continue to raise capital and find ways to make their bets. There are some situations where there are gap equity requirements that are well-suited for crowdfunding, for example. Crowdfunding might be a viable alternative for a property with a maturing legacy CMBS loan that requires extra equity in order to complete a refinance
How bad is the inventory shortage plaguing the national housing market? One measure of the lack of solutions is that at least some experts are looking over the horizon to the death of the Boomers. “Boomers own a majority of owner occupied homes in the U.S.,” observes Ralph McLaughlin, chief economist at home search site Trulia. “As far as we are aware, they have not found the fountain of youth, so eventually we might age out of the problem
By a number of measures, the multifamily sector continues to defy expectations of ‘cooling down’ over the second half of the year and loan origination projections for multifamily property is now projected to grow for the rest of 2017 and into 2018, according to new analysis from Freddie Mac and Kroll Bond Rating Agency analysis of Freddie Mac lending. While the multifamily market continues to attract investments and capital, market uncertainty in the first part of the year suggested that 2017 full-year volume might taper off
IRVINE, CA—Positive demographic trends are keeping wind in the apartment market’s sails even as fundamentals are becoming spotty, Ten-X Commercial said Thursday. Among the areas in which fundamentals are uneven is the supply pipeline, a contributing factor in most of the top five markets in which Ten-X recommends that investors consider selling their apartment properties. Ten-X Commercial’s latest US Multifamily Outlook report shows that vacancies nationwide rose 10 basis points during the first quarter
P.B. Bell, a multifamily specialist, with joint venture partner Gilbane Development Co., have broken ground on resort-style apartments in the Ocotillo master-planned community in Chandler, Ariz., Arista at Ocotillo. MT Builders is the general contractor. The 211-unit property will offer one-, two- and three-bedroom units. As a gated community, the Arista at Ocotillo residences will be accessed by interior corridors with elevators
Topgolf is planning a location near the Arizona Cardinals stadium and Westgate Entertainment District in Glendale, the company announced Tuesday. This would be the West Valley’s first Topgolf and the fourth in Arizona, joining Gilbert, Scottsdale and Tucson, where a location is opening this winter. The popular entertainment venue mixes socializing and sports, with a restaurant, a bar and climate-controlled driving ranges on three stories
Skanska, one of the world’s leading construction and development firms, is beginning construction on upgrades to the Arizona Center located at 455 N. Third Street in Phoenix. This $11.6 million project will provide Arizona Center customers and tenants with an updated and upgraded shopping and dining experience. Skanska’s scope of work includes an exterior finishes upgrade of the open air retail space
CRE lending edged higher between the first quarter of 2017 and the second, and is up 27 percent year-over-year, according to the most recent CBRE Lending Momentum Index, which tracks the velocity of commercial loan closings nationwide. Volume increased in all major lending groups, with capital readily available for real estate deals. CMBS led all other lenders in terms of market share. In the second quarter, CMBS issuance spiked, putting year-to-date issuance at $38.8 billion, which is ahead of 2016’s pace of $30.7 billion
There are a lot of cranes operating in Arizona as developers pursue new projects that are creating a more diverse state. Here are six projects that were recently finished or broke ground in Arizona, as seen in the July/August issue of AZRE magazine. If you think Tempe is a college town still, developments like this are telling a different story. Construction is underway for this mixed-use development, The Watermark | Tempe, along the north bank of Tempe Town Lake
When it comes to premium office space across the United States and Canada, creative firms are doing what they do best: driving change. JLL’s 2017 Skyline shows that creative’s boomerang to this coveted space and the eighth straight year of occupancy growth are contributing to record rents and a landlord-friendly market. In Phoenix, the 24/7 environment of downtown Phoenix is attracting creative and tech tenants in droves, even from prominent first-tier markets like San Francisco and Chicago
Vacancy in the Greater Phoenix multifamily market rose 30 basis points during the second quarter, which is common for the city. The vacancy rate rose to 5.9 percent, which is identical to the rate one year ago. Five submarkets in the city posted vacancy rates below five percent. Some areas are seeing rates rise in response to the addition of new developments. The Central Phoenix/Encanto area reached nine percent during second quarter, as inventory increased more than 15 percent in the past year
2017 is shaping up to be one of the best years for home sales in metro Phoenix. Sales aren’t higher than the boom year of 2005 when speculators bought a record number of homes, or the bust year of 2011 when investors snapped up a record number of bargain Phoenix-area foreclosure homes. But those years weren’t normal and definitely weren’t healthy for Phoenix’s housing market
The Phoenix Industrial market ended the second quarter 2017 with a vacancy rate of 9.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,117,870 square feet in the second quarter. That compares to positive 3,097,359 square feet in the first quarter 2017. Vacant sublease space decreased in the quarter, ending the quarter at 555,130 square feet