August 4, 2017

Average U.S. multifamily rents rose $1 to $1,350 in July, according to a survey of 121 markets by Yardi Matrix. Rents were up 2.6% during the month on a year-over-year basis. The multifamily market remains strong despite the modest growth, as rents historically moderate in the second half of the year. Also, “the market is in an extended period of rate-growth deceleration, coming down from unsustainably high increases,” the report states

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The Milwaukee Brewers are exploring moving their spring training home 35 miles southeast to a new facility in Gilbert. The Major League Baseball team wants Gilbert to build a $90 million baseball facility near Loop 202 at Lindsay and Germann roads, according to emails between consultants and town officials. “We believe there may be a great deal of community support for the Brewers to relocate in the town of Gilbert,” Bob Quinn, Brewers executive vice president of finance and administration, said in a statement

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Grand Canyon Education Inc. (Nasdaq: LOPE) is set to spend more than $100 million this year to grow its Grand Canyon University campus in Phoenix. Plans call for building two more apartment-style dorms, a classroom building, another parking garage and a club sports facility Each of the 5-story, 624-bed dorms will be built north of a newly built parking garage at 29th Avenue and Camelback Road. An additional 2,400-space parking garage totaling nearly 800,000 square feet will be built on the north side

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Out-of-state relocations, an ongoing economic recovery and job growth were all contributing factors in lowering the Phoenix industrial vacancy rate to 9.2% while rental rates ended the second quarter at $.59, which is an increase over the previous quarter, according to DAUM’s second quarter market report. During the quarter, net absorption for the overall Phoenix industrial market was 1.2 million square feet, which compares to positive 3.1 million square feet in the first quarter of 2017

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August 3, 2017

Commercial real estate has been used effectively in ultra-high-net-worth (HNW) and family office portfolios as a means to enhance yield in a return‑starved market. This enhanced yield has not been lost on the greater institutional marketplace, however, where sovereign wealth funds, domestic pension funds and life insurance companies have flooded the market with capital, prompting concern over the potential for a pricing bubble

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NEW YORK CITY—Second-quarter investment sales volume was predictably off on a year-over-year basis in the Q2 US Capital Trends report from Real Capital Analytics. However, RCA cautions industry members not to make too much of the 5% Y-O-Y drop. It’s been 10 years since the Blackstone Group took Equity Office Properties private, a $39-billion buyout which RCA calls “the high-water mark of deal activity in 2007

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Phoenix’s High Street development, a high-end retail, office and apartment development near Desert Ridge, has a new owner. An Alabama firm has invested at least $93.4 million into the 628,000-square-foot project that was foreclosed on during the housing crash. High Street, home to Sprout Farmers Market corporate offices and the eateries Kona Grill, La Bocca, Mellow Mushroom, Blue Martini and Ocean Prime, was called CityNorth until a few years ago

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As of July 2017, this submarket has the most units in the pipeline with roughly 3,000 units underway. New construction has been heavily concentrated at the top end of the market – more than 80 percent of the in-development units are 4 & 5 Star rated. Relative to other construction-heavy submarkets such as Tempe and Chandler/Gilbert, projects tend to be slightly smaller in size. For example, the 4-Star, 225-unit Alta Midtown is representative of the development pipeline here, and initial rent offerings are about 40 percent above the submarket average

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T-Mobile US Inc. is opening 24 retail stores this year in Arizona and hiring 170 employees to fill those stores. The new stores and hiring are due to the Bellevue, Washington-based wireless network operator’s expanded network coverage and millions of new customers, said Sam Sindha, T-Mobile’s senior vice president for the southwest region, which includes Arizona. “Every quarter for the last 17 quarters we’ve added millions of customers

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August 2, 2017

Amazon’s recent acquisition of Whole Foods has prompted a new outlook on the classic brick and mortar structure. Online stores are now more actively seeking to gain presence in brick and mortar stores just as brick and mortar stores are seeking to have a bigger presence online. Amazon’s $13.7 billion purchase of Whole Foods shows an e-commerce giant that is willing to dive into the brick-and-mortar world of retail, an area the e-commerce giant famously disrupted

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Arizona’s largest health-care provider is partnering with Safeway grocery stores to open retail-based clinics at three different store locations — Chandler, Tempe and Tucson. The initiative is designed to make health care more accessible and affordable, said Corey Schubert, a Banner Health spokesman. Two of the clinics, at 926 E. Broadway Road in Tempe and 4970 S. Alma School Road in Chandler opened Tuesday

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German grocer Aldi Inc. is looking at entering the Arizona market and is looking at potential store sites in the Phoenix market. That is according to multiple commercial real estate sources who asked not to be identified. The Arizona retail search comes right after Aldi announces plans for a $60 million distribution center in Goodyear. That warehouse will create at least 132 jobs and total 500,000 square feet or more

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DSW Mesa Grand/Spectrum acquired Mesa Grand and Mesa Spectrum shopping centers located on Stapley and Baseline Roads at US Highway 60 in Mesa, Arizona for $42.9 Million from Vestar Arizona LLC. Tucson-based DSW Commercial Real Estate with investment partner Iridius Capital, purchased the well-positioned “Daily Use and Entertainment” center, which encompasses approximately 233,130 square feet junior anchor, retail strip, and single tenant net lease in a multi-building configuration

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LOS ANGELES—With CMBS conduits more than doubling their market share compared to a year ago, CBRE’s Lending Momentum Index for the second quarter is up 27% year over year, the firm said Wednesday. All major lending groups saw their volume improve as the pace of commercial loan closings picked up during Q2, notwithstanding the Federal Reserve’s June increase in short-term interest rates. CMBS in particular surged ahead during Q2

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August 1, 2017

NEW YORK CITY—Well, that didn’t take long. July’s plunge in the CMBS delinquency rate erased nearly all of the steep 28-basis point climb that late-pays experienced in June, Trepp LLC reported Tuesday. That being said, delinquencies have been trending upward on both a year-over-year and year-to-date basis. June’s increase to 5.75% marked the biggest monthly rise in the Trepp CMBS delinquency rate in five years

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Valley nonprofit UMOM announced that plans have been approved for a 54-unit affordable housing apartment complex in west Phoenix. The development, called 19North, will replace an underdeveloped, vacant lot along Morten Avenue that runs on 19 th Avenue, bounded roughly by Dunlap Avenue to the north and Montebello Avenue to the south

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Investors spent a lot less money on apartment properties so far this year compared to 2016, but prices in the sector keep rising anyway. Prices for mid-rise and high-rise properties inched up 1.0 percent year-over-year, and prices for garden-style apartment properties grew 10.0 percent in the second quarter of 2017, according to the Real Capital Analytics Commercial Property Price Index (RCA CPPI)

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LMC Tuesday announced the opening of Muse, a mixed-use community located in the Central Arts District of midtown Phoenix. The luxury mid-rise development features 367 apartment homes and 11,000 square feet of ground-floor retail space, which includes Press Coffee, Forno 301 Pizzeria and Bar, Salon D’Shayn, and Community Florist. Move-ins began in mid-May

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Passco Companies along with its JV-partner, InSite Property Ventures, has sold Ovation at Tempe, a 270-unit multifamily community in the Phoenix submarket of Tempe, Arizona for $36 million. The JV partnership initially acquired the asset for $25.85 million in 2014 and sold it for $36 million three years later, according to Passco’s Founder and CEO, Bill Passo. Passco Companies is a privately held Calif.-based real estate company that specializes in the investment, acquisition, development and management of commercial properties throughout the US

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July 31, 2017

A joint venture between BB Living Residential and real estate developer Mike Zerbib has bought 20 acres of land in Gilbert for a 216-unit homes-for-rent development. BB Living and Zerbib bought the land for approximately $4.7 million from Colony. The buyers are both based in Scottsdale. Bret Rinehart, Ben Heglie and Ryan Semro of Land Advisors Organization brokered the sale

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WASHINGTON (Reuters) – Loan officers at U.S. banks reported tightening lending standards on commercial real estate loans while terms for business loans remained largely unchanged, the Federal Reserve reported on Monday in a quarterly survey. The officers surveyed also reported a weakening in demand for both types of loans in the second quarter

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As legacy retailers are folding under pressure from the industry’s sea change, mostly due to the rise of e-commerce and Amazon.com Inc. (NASDAQ: AMZN), the real estate community is looking toward two segments that are keeping the rise of Amazon at bay. At a recent Phoenix Business Journal real estate roundtable, industry leaders said retail’s saviors are those that offer discount products and those that offer unique, local goods

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Respondents to RCLCO’s latest Market Sentiment Survey are feeling less optimistic than they were six months ago, but most still see continued stability in market conditions for the near to medium term. Nearly two-thirds (65 percent) of respondents believe the next U.S. real estate market downturn will not begin until at least 2019, and current sentiment remains more positive than it was 12 months ago

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Starlight Investments, a Toronto-based privately held real estate investment and asset management firm, said it has formed a new partnership with a pair of undisclosed institutional investors to acquire $1.3 billion of recently constructed, class A, garden-style multifamily properties in Atlanta, Austin, Dallas, Denver, Orlando, Phoenix and Tampa. Starlight said the new partnership will target suburban markets for apartment communities constructed since 2012

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July 30, 2017

Home furnishings retailers are drawing keen interest from both consumers and investors alike lately. TJX Cos. is preparing to launch a new concept that features much more furniture than its other brands. Wayfair continues to be adept at using e-commerce to boost top line growth and Rent-A-Center has attracted two acquisition offers

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