Optima Kierland, a high-rise luxury condominium community in the North Scottsdale Kierland neighborhood, has opened for sales to a highly receptive market, with an exuberant homebuyer response to the $500 million project, which represents the next evolution of sophisticated urban living and design for Optima, designer and developer of distinctive, architecturally significant communities in Phoenix, Scottsdale and the Chicago metropolitan area.
Boasting more than a few stylish nods to the past, a new, six-story apartment community is almost ready to open its doors this June in downtown Phoenix. Proxy 333 will offer 118 units with floor plans ranging from studios to one- and two-bedroom options, including some live/work loft-style units with street-side business frontage, according to Kris Tomlinson, the property manager who will be overseeing the complex for Pinnacle Living.
Five Star Development announced Wednesday its detailed plans to develop a retail and dining destination, The Palmeraie, in the heart of Scottsdale that will be connected to the $2 billion Ritz-Carlton, Paradise Valley master-planned community. The initial phase of The Palmeraie will encompass approximately 160,000 square feet of high-end, mixed-use space located on 18 acres at the corner of Scottsdale Road and Indian Bend Road bordering the posh town of Paradise Valley.
In its second Valley purchase to date, Nevada developers Remington Nevada (David Delzotto, owner-developer) and Intercapital Development have once again teamed up with locally-based Capital Asset Management to purchase a prime 32.9-acre site located on the southwest corner of Williams Field Road and SanTan Parkway in Gilbert.
Little Cottonwoods — a 20-acre, 379-unit apartment development in Tempe — has sold for $56.7 million. Los Angeles-based TruAmerica Multifamily and Bahrain-based international finance firm Investcorp bought the Tempe complex.
Demand for rental properties in Phoenix keeps growing and, as a result, rents increased by 10.9 percent in 2015 according to the Phoenix Business Journal, as prospective tenants vied for the available rental properties. Phoenix ranks among the top places to live in the US, thanks to a combination of great career opportunities and beautiful surroundings with plenty of recreational options. The attraction the area holds for young professionals is reflected in the average rents for new, upmarket Phoenix apartments completed since 2010: $1,342 on average compared to the overall average of just $837 per month according to Yardi Matrix.
There was 12% growth year-over-year in apartment transaction volume during the first quarter of 2016 on volume of $38.6 billion. The growth was paced by activity in the garden apartment subtype, with volume up 19% year-over-year on sales of $26.7 billion, according to Real Capital Analytics (RCA).
Supply and demand metrics for Phoenix have been steadily improving. This market ought to see good performance in its industrial sector, which contributed 19 percent of total employment numbers for Phoenix recently. Vacancy is slowly dropping and is projected to reach 10.1 percent for 2016, according to Cushman & Wakefield, down a percentage point from a year ago.
Caterpillar Inc. is bringing hundreds of six-figure jobs to Arizona. The Peoria, Illinois-based mining and construction equipment manufacturer will open a regional headquarters in downtown Tucson and hire 600 for the new facility, reports The Arizona Daily Star.
The Glendale City Council has approved rezoning for what is being described as the Valley’s first new master-planned residential developments in years – the first since the recession of 2008-09 – in a project that reflects the continued growth in the southern and western portions of Glendale. LVA Urban Design Studio, on behalf of John F. Long Properties’ StoneHaven, will offer 1,161 single-family units of varying sizes and price ranges within a 382-acre parcel of farmland roughly between Camelback and Bethany Home roads, and 83rd and 91st avenues.
A developer wants to tear down an old car dealership to build a walkable residential community in downtown Scottsdale, arguably one of the Valley’s most pedestrian-friendly locales. The partially abandoned former Luxor Auto Group dealership building, along with an auto repair and body shop, will be razed to make way for the multifamily project.
Westridge Professional Plaza, consisting of two retail/medical office buildings on the Desert Sky Regional Mall campus, trades for $4,600,000 or $130/SF. The transaction was negotiated by Ari Spiro and Sean Stutzman of ORION Investment Real Estate.
Dodge Data & Analytics reported on March construction starts in the metropolitan statistical area of Phoenix-Mesa-Scottsdale, consisting of Maricopa and Pinal counties. According to Dodge Data & Analytics, the latest month’s construction activity followed this pattern: According to the Dodge’s data, construction spending in 2016 on nonresidential properties totaled $158,064,000, a four percent increase from 2015’s $152,534,000.
Home prices in many metro Phoenix neighborhoods could finally fully recover from the crash this year, or at least get very close. Last year was much better for rising home values in the Valley than 2014, according to Street Scout Home Values, an annual analysis of metro Phoenix’s housing market done with The Information Market. Home prices in a lot of Valley neighborhoods, particularly the most affordable areas and those closer in, are climbing faster so far this year.
With nearly 4.4 million people, Greater Phoenix is the 13th largest metropolitan area in the US and the region’s population is expected to nearly double in the next two decades, according to city of Phoenix statistics. Located at the center of several municipalities, including Scottsdale. AZ and Glendale, AZ, Phoenix comprises 60% of the metro area population. With the population’s average age falling below 35, Phoenix is a young city with new development as well as more centralized urban redevelopment.
Phoenix-area home prices are still down about 10 percent from the peak of the housing boom in 2006. But home sales are up 11 percent during the first three months of this year compared with the same period a year ago, according to Street Scout Home Values, an annual analysis of metro Phoenix’s housing market done with The Information Market.
Investment Property Associates LLC (IPA) and Retirement Community Specialists (RCS) announced construction is now underway on its senior living community, Generations at Ahwatukee. The project, located at the southeast corner of Chandler Boulevard and 50th Street is targeted for completion by mid-summer 2017.
Demand for shopping center space is so high that, despite the first quarter’s having the highest number of store closures of any quarter since 2010, vacancy levels remained steady at 7.9 percent over the previous month, according to Cushman & Wakefield. This marks the 16th consecutive quarter in which vacancy has held steady or even declined. In the first quarter of last year the rate was 8.3 percent.
The moderation in apartment rent growth that some industry observers are expecting for this year hasn’t happened so far in 2016, says Yardi Matrix. April rents nationally rose $13, or 1.1% month over month, to $1,194, the fourth consecutive all-time high, according to the firm’s Matrix Monthly report based on a survey of 115 markets.
Home sales may be rising, but homeownership in the United States is heading down once again. After gains in the second half of 2015, the homeownership rate fell to just 63.6 percent, seasonally adjusted, in the first quarter of this year, according to the U.S. Census Bureau.
The City of Tempe Development Review Commission has advanced plans for a mixed-use development, which will encompass 295 residential units in two towers, as well as restaurant, retail, office, classroom and church uses. The submittal approved on April 12 was the fifth submitted to the city for this development since October of last year.
Liberty Property Trust today announced that it will break ground on its first building this spring at Liberty Logistics Center II, a new 73-acre industrial park located at the corner of 71st Avenue and Buckeye Road in Phoenix. The 222,910 square foot distribution facility is the first of the 1.5 million square feet of multi-tenant industrial space planned at the new park.
Tenant interest in suburban office space is finally ramping up, with many suburban office markets starting to see gains in net absorption, occupancy and rental rates after watching their urban counterparts enjoy steady gains over the past several years.
Four years of planning, developing and building support for an artist community in downtown Mesa is nearing fruition. The planned ArtSpace Mesa, on vacant land on Hibbert Street between First and Second avenues, is intended to bring local artists together to live and create in a talented community.
A Las Vegas developer wants to build a $64.5 million new apartment complex in Tempe near Arizona State University. Nevada-based Fore Property Co. has plans for a 423-unit multifamily development on 13.2 acres parcel next to the McClintock/Apache Boulevard Metro light rail station.