The owner of the Mountain Shadows resort in Paradise Valley has defaulted on his loan but says the long-shuttered property's redevelopment will move forward.
A trustee's sale for the resort has been set for July 26.
However, officials with California-based Crown Realty and Development Inc., say that the firm wants to avoid the foreclosure, and is negotiating with lender U.S. Bank Special Assets Groupon a resolution.
Crown Realty, owned by Robert Flaxman, also developed the InterContinental Montelucia Resort & Spa in Paradise Valley, which defaulted on a $180 million loan about three years ago.
Flaxman owes at least $360,000 in taxes on the Mountain Shadows property, according the the Maricopa County Treasurer's Office.
Jason Rose, a spokesman for Crown Realty, said if they are successful in negotiations, there will be no sale. If they are not, Crown can bid on the property at the auction.
"They are optimistic about a resolution," Rose said. "They feel confident in a favorable resolution with the bank that will translate into a favorable re-development of Mountain Shadows for the town."
Dozens of residents showed up for a preliminary presentation of their plans for re-developing the resort, at a Town Council meeting Thursday afternoon.
The plan includes resort hotel, residential, golf and retail facilities.
At the meeting, Flaxman, said his firm plans to work through the loan default.
He bought the 68-acre property from Host Marriott Corp. for $42 million, in January 2007. Host Marriott Corp. is now known as Host Hotels & Resorts.
"We are committed to this project and plan to see it through," Flaxman said.
Town Manager Jim Bacon said Crown Realty has had an application on file with Paradise Valley for several years.
The firm plans to submit a revised application this week.
"The owner has the right to move forward with an application," Bacon said, whether the property is in default or not.
The Mountain Shadows resort, which remains closed at 56th Street and Lincoln Drive, has drawn potential re-development possibilities in recent months.
Residents became hopeful when Phoenix-based JDM Partners, co-owned by sports mogul Jerry Colangelo, entered into a purchase agreement for Mountain Shadows in December.
JDM's projects include Chase Field, US Airways Center,Comerica Theatre and the remodel of the Wigwam resort in Litchfield Park, which represented the company's first foray into the hospitality industry.
However, the firm announced last month that it was unable to reach a final agreement with Crown Realty and is no longer under contract for the property.
JDM officials provided no more information, citing a confidentiality provision in the purchase agreement.
by Philip Haldiman - May. 15, 2012 10:06 AM The Republic | azcentral.com
PV Mountain Shadows resort owner defaults on loan
Showing posts with label arizona. Show all posts
Showing posts with label arizona. Show all posts
Friday, May 18, 2012
Tuesday, May 15, 2012
Builder rolls out Line K at Pinnacle Peak Place
Piet Boon has a new look for north Scottsdale homes.
The Dutch designer and K. Hovnanian Homes are unveiling a line of contemporary semi-custom homes this weekend at Pinnacle Peak Place, a mile from of the city's iconic peak.
A four-bedroom model home opens Saturday in this gated community northeast of Pima and Happy Valley roads. Prices range from $700,000 to $820,000.
The interior of the 3,874-square-foot model home stands out with its stark white walls, modern lines and an abundance of disappearing glass walls and outdoor living space. That includes a reflecting pond in a breezeway, infinity-edge pool and a shower and soaking tub outside the master bathroom.
"The desert view is so incredible," Boon said in explaining the openness of his Arizona designs.
"It's so different with the boulders and cactus."
Boon is an interior and furniture designer based in Amsterdam, the Netherlands, with an international list of clients.
Boon joined with K. Hovnanian Homes, based in Red Bank, N.J., a year ago to create the builder's Line K of contemporary homes with its rollout in Scottsdale.
The result is a design that runs counter to the sameness of the Tuscan, Mediterranean and Spanish architecture so common in the gated communities across Scottsdale.
"We think there are people who are tired of Tuscan, tired of the traditional styles here," said Jack McSweeney, K. Hovnanian Homes Phoenix Group director of architecture.
It is a design that will appeal to younger buyers who are used to a more modern aesthetic as well as to Baby Boomers, he said.
The stonework and the exterior color schemes at Pinnacle Peak Place are similar to the surrounding homes but the sleeker lines and optional metal roof are less common for the area.
Pinnacle Peak Place was first developed in 2006 by the Pivotal Group Inc. and Geoffrey H. Edmunds & Associates Inc.
It was to include 80 homes on 124 acres.
In those boom times, the homesites were priced from $395,000 to $975,000, and homes of 4,000 to 6,000 square feet were offered at $1.5 million to $3 million.
Twenty-one homes were built, including a $3.3 million property in October 2007, but much of the community remains undeveloped.
K. Hovnanian Homes has 26 lots that it acquired earlier this year, McSweeney said.
It is offering three models with variations in floor plans.
All of them include four bedrooms, three-car garages and 31/2 or 41/2 bathrooms.
Prices start at $700,000 for a home of 3,305 square feet up to $820,000 for 3,874 square feet. Each lot is close to an acre in size.
Send real-estate news to peter.corbett@arizonarepublic.com. Follow him on Twitter @petercorbett1.
Line K debuts
What: K. Hovnanian Homes at Pinnacle Peak Place.
Where: 25851 N. 89th St.
Contact: 480-656-2789, khov.com or pietboon.com.
by Peter Corbett - May. 11, 2012 01:15 PM The Republic | azcentral.com
Builder rolls out Line K at Pinnacle Peak Place
The Dutch designer and K. Hovnanian Homes are unveiling a line of contemporary semi-custom homes this weekend at Pinnacle Peak Place, a mile from of the city's iconic peak.
A four-bedroom model home opens Saturday in this gated community northeast of Pima and Happy Valley roads. Prices range from $700,000 to $820,000.
The interior of the 3,874-square-foot model home stands out with its stark white walls, modern lines and an abundance of disappearing glass walls and outdoor living space. That includes a reflecting pond in a breezeway, infinity-edge pool and a shower and soaking tub outside the master bathroom.
"The desert view is so incredible," Boon said in explaining the openness of his Arizona designs.
"It's so different with the boulders and cactus."
Boon is an interior and furniture designer based in Amsterdam, the Netherlands, with an international list of clients.
Boon joined with K. Hovnanian Homes, based in Red Bank, N.J., a year ago to create the builder's Line K of contemporary homes with its rollout in Scottsdale.
The result is a design that runs counter to the sameness of the Tuscan, Mediterranean and Spanish architecture so common in the gated communities across Scottsdale.
"We think there are people who are tired of Tuscan, tired of the traditional styles here," said Jack McSweeney, K. Hovnanian Homes Phoenix Group director of architecture.
It is a design that will appeal to younger buyers who are used to a more modern aesthetic as well as to Baby Boomers, he said.
The stonework and the exterior color schemes at Pinnacle Peak Place are similar to the surrounding homes but the sleeker lines and optional metal roof are less common for the area.
Pinnacle Peak Place was first developed in 2006 by the Pivotal Group Inc. and Geoffrey H. Edmunds & Associates Inc.
It was to include 80 homes on 124 acres.
In those boom times, the homesites were priced from $395,000 to $975,000, and homes of 4,000 to 6,000 square feet were offered at $1.5 million to $3 million.
Twenty-one homes were built, including a $3.3 million property in October 2007, but much of the community remains undeveloped.
K. Hovnanian Homes has 26 lots that it acquired earlier this year, McSweeney said.
It is offering three models with variations in floor plans.
All of them include four bedrooms, three-car garages and 31/2 or 41/2 bathrooms.
Prices start at $700,000 for a home of 3,305 square feet up to $820,000 for 3,874 square feet. Each lot is close to an acre in size.
Send real-estate news to peter.corbett@arizonarepublic.com. Follow him on Twitter @petercorbett1.
Line K debuts
What: K. Hovnanian Homes at Pinnacle Peak Place.
Where: 25851 N. 89th St.
Contact: 480-656-2789, khov.com or pietboon.com.
by Peter Corbett - May. 11, 2012 01:15 PM The Republic | azcentral.com
Builder rolls out Line K at Pinnacle Peak Place
Scottsdale builders seeing surge in new homes
Apartment development is the focus of Scottsdale's housing market, but builders based in the city say they are seeing a surge in new-home sales elsewhere in the Valley.
Builders acquired permits for nearly 2,500 single-family homes in the first quarter, up 74 percent from a year ago, said Greg Burger, publisher with RL Brown of the "Phoenix Housing Market Letter."
Maracay Homes reports that it sold 190 homes through April, more than double its activity a year ago. Plus, this year's $50 million in sales far exceeds last year's pace when Maracay sold $60.5 million for all of 2011.It's a big change for a new-home market that went from dormant to sluggish before the recent uptick.
"It hasn't been wine and roses the past few years," said Andy Warren,Maracay president since April 2009.
The number of building permits issued continued to grow in April and homebuilders are responding with new communities and floor plans.
Maracay Homes, with its offices at the Scottsdale Quarter, has four communities in Tucson and seven in the Valley in Buckeye, Chandler, Goodyear, Peoria and Queen Creek.
Maracay, the Arizona subsidiary of the Weyerhauser Real Estate Co., plans to open five more communities with a total of 414 home sites by the second quarter of 2013. Those developments are in Litchfield Park, Queen Creek, Gilbert, Chandler and in east Mesa at Eastmark on the former General Motors Desert Proving Ground site.
The builder has two more communities under contract with 135 home sites in Queen Creek and an additional 22 at Verrado in Buckeye.
"We've repositioned Maracay in the last two years to take advantage of the challenges in the economy," said Warren, who previously worked for Weyerhauser's Winchester Homes subsidiary in Bethesda, Md.
Maracay expects to sell 300 homes in the Valley this year and an additional 100 in Tucson, he said. The company's average home price this year is $260,000.
Home inventory declines
A shrinking inventory of resale homes has buyers turning to new homes, and builders are responding to the demand.
The current pace of 11,000 homes this year could slow because of a tighter supply of suitable home sites and as builders limit their sales because of shortages of subcontractors, said Burger.
Buyers are getting frustrated with failed bids for a shrinking inventory of resale homes and are turning to new homes, he said, adding that the price difference of new homes costing more than resale properties is narrowing in some neighborhoods.
"We're moving in a direction that new homes are coming into focus," Burger said. "Some builders have opened the flood gates and are selling as many homes as they can."
Shea Homes Arizona has seen its sales jump 40 percent so far this year over 2011.
The California-based company, with its Arizona division in Scottsdale, is averaging about eight home sales per week, up from five over the past two years.
"It's pretty refreshing," said Ken Peterson, Shea Homes Arizona vice president of sales and marketing.
Sales are on the upswing because consumers who lost homes to foreclosure or short sales are becoming eligible for loans, he said.
Few new homes locally
Nearly all of the new-home subdivisions are outside of Scottsdale, which has a limited amount of large land tracts for new communities.
Scottsdale issued 63 building permits for single-family homes in the first quarter, up from 33 a year ago but far below Gilbert with 697 permits and Phoenix with 347.
Pulte Homes and Lennar each are building about 200 homes at the gated Lone Mountain community just west of Scottsdale at 60th Street and Lone Mountain Road.
Pulte spokeswoman Jacque Petroulakis said the builder has seen its traffic and sales more than double in the past few months.
Retirees, move-up families and second-home buyers are part of the sales surge, she said.
Pulte, which launched sales at Lone Mountain in April 2010, has homes of 1,933 to 3,026 square feet for $298,990 to $369,990.
Utility-cost savings are a big selling point for the new-home market, with builders touting better insulation, construction techniques, and more efficient appliances and heating and cooling systems..
Builders are also offering garages large enough for recreational vehicles and stand-alone buildings for shops, studios or guest casitas.
New communities planned
Scottsdale-based Maracay Homes has seven Valley communities and four in Tucson. It plans to open these five communities with 414 home sites in the next two years:
Savannah in Litchfield Park, 70 homes with lots of 85 by 130 feet. Opening May 19.
Montelena in Queen Creek, 59 homes with lots of 90 by 140 feet. Opening fall 2012.
Lyons Gate in Gilbert, 46 homes with lots of 60 by 118 feet. Opening late 2012.
Vaquero Ranch in Chandler, 74 homes with lots of 60 by 120 feet. Opening second quarter 2013.
Eastmark in east Mesa, 165 homes with about half the lots at 55 by 115 feet and half the lots at 70 by 120 feet. Opening second quarter 2013.
by Peter Corbett - May. 10, 2012 03:22 PM The Republic | azcentral.com
Scottsdale builders seeing surge in new homes
Builders acquired permits for nearly 2,500 single-family homes in the first quarter, up 74 percent from a year ago, said Greg Burger, publisher with RL Brown of the "Phoenix Housing Market Letter."
Maracay Homes reports that it sold 190 homes through April, more than double its activity a year ago. Plus, this year's $50 million in sales far exceeds last year's pace when Maracay sold $60.5 million for all of 2011.It's a big change for a new-home market that went from dormant to sluggish before the recent uptick.
"It hasn't been wine and roses the past few years," said Andy Warren,Maracay president since April 2009.
The number of building permits issued continued to grow in April and homebuilders are responding with new communities and floor plans.
Maracay Homes, with its offices at the Scottsdale Quarter, has four communities in Tucson and seven in the Valley in Buckeye, Chandler, Goodyear, Peoria and Queen Creek.
Maracay, the Arizona subsidiary of the Weyerhauser Real Estate Co., plans to open five more communities with a total of 414 home sites by the second quarter of 2013. Those developments are in Litchfield Park, Queen Creek, Gilbert, Chandler and in east Mesa at Eastmark on the former General Motors Desert Proving Ground site.
The builder has two more communities under contract with 135 home sites in Queen Creek and an additional 22 at Verrado in Buckeye.
"We've repositioned Maracay in the last two years to take advantage of the challenges in the economy," said Warren, who previously worked for Weyerhauser's Winchester Homes subsidiary in Bethesda, Md.
Maracay expects to sell 300 homes in the Valley this year and an additional 100 in Tucson, he said. The company's average home price this year is $260,000.
Home inventory declines
A shrinking inventory of resale homes has buyers turning to new homes, and builders are responding to the demand.
The current pace of 11,000 homes this year could slow because of a tighter supply of suitable home sites and as builders limit their sales because of shortages of subcontractors, said Burger.
Buyers are getting frustrated with failed bids for a shrinking inventory of resale homes and are turning to new homes, he said, adding that the price difference of new homes costing more than resale properties is narrowing in some neighborhoods.
"We're moving in a direction that new homes are coming into focus," Burger said. "Some builders have opened the flood gates and are selling as many homes as they can."
Shea Homes Arizona has seen its sales jump 40 percent so far this year over 2011.
The California-based company, with its Arizona division in Scottsdale, is averaging about eight home sales per week, up from five over the past two years.
"It's pretty refreshing," said Ken Peterson, Shea Homes Arizona vice president of sales and marketing.
Sales are on the upswing because consumers who lost homes to foreclosure or short sales are becoming eligible for loans, he said.
Few new homes locally
Nearly all of the new-home subdivisions are outside of Scottsdale, which has a limited amount of large land tracts for new communities.
Scottsdale issued 63 building permits for single-family homes in the first quarter, up from 33 a year ago but far below Gilbert with 697 permits and Phoenix with 347.
Pulte Homes and Lennar each are building about 200 homes at the gated Lone Mountain community just west of Scottsdale at 60th Street and Lone Mountain Road.
Pulte spokeswoman Jacque Petroulakis said the builder has seen its traffic and sales more than double in the past few months.
Retirees, move-up families and second-home buyers are part of the sales surge, she said.
Pulte, which launched sales at Lone Mountain in April 2010, has homes of 1,933 to 3,026 square feet for $298,990 to $369,990.
Utility-cost savings are a big selling point for the new-home market, with builders touting better insulation, construction techniques, and more efficient appliances and heating and cooling systems..
Builders are also offering garages large enough for recreational vehicles and stand-alone buildings for shops, studios or guest casitas.
New communities planned
Scottsdale-based Maracay Homes has seven Valley communities and four in Tucson. It plans to open these five communities with 414 home sites in the next two years:
Savannah in Litchfield Park, 70 homes with lots of 85 by 130 feet. Opening May 19.
Montelena in Queen Creek, 59 homes with lots of 90 by 140 feet. Opening fall 2012.
Lyons Gate in Gilbert, 46 homes with lots of 60 by 118 feet. Opening late 2012.
Vaquero Ranch in Chandler, 74 homes with lots of 60 by 120 feet. Opening second quarter 2013.
Eastmark in east Mesa, 165 homes with about half the lots at 55 by 115 feet and half the lots at 70 by 120 feet. Opening second quarter 2013.
by Peter Corbett - May. 10, 2012 03:22 PM The Republic | azcentral.com
Scottsdale builders seeing surge in new homes
Sunday, May 13, 2012
Property near mall finally has owner
The Arizona Supreme Court has decided that investors in a California-based company own the high-profile, 10.5-acre parcel Elevation Chandler near Loops 101 and 202.
For three years, Point Center Financial of California and Phoenix foreclosure speculator Tom Peltier have been fighting in court over ownership.
The court's opinion, issued Friday, ends that legal battle and clears the way for investors to sell the parcel, which has drawn considerable interest from potential buyers.
"Even prior to the decision, there have been a few groups following up with us to see if the decision was out yet," said Rene Esparza, Point Center's loan servicing manager and asset manager.
Esparza declined to identify prospective buyers or the possible price.
A majority of the site's 270 investors, weighted by how much money they have in the project, will vote on whether to sell and, if so, which offer to accept.
"Even though we're negotiating the deal, we want to present to our investors what we believe is the best deal for them," Esparza said.
There have been distressed sales in the commercial market, but Elevation Chandler is a premium location. Its value was muddied because of the litigation, which Esparza described as "the big black cloud over the site."
The property is eligible for a variety of uses, such as apartments, offices or mixed use, but single-family homes won't be considered, Chandler planning administrator Jack Kurtz said.
Because the property is on the southern edge of the upscale Chandler Fashion Center, he expects a project there to complement the mall.
"At one time, the plans were for mixed use, which makes sense," Kurtz said. "The last people who came in, Archstone, were proposing high-density multifamily, which also made sense. Offices complementary to the mall would also make sense."
Colorado-based Archstone Apartments, which was in escrow when it broke the contract last fall, is expressing interest now that the title is clear.
Mayor Jay Tibshraeny is glad the legal case is resolved.
"The single-most question I get asked is what is happening with that partially completed structure near the mall," he said. "It's of keen interest."
City Councilman Rick Heumann said a Class A hotel would work well there because Chandler lacks a large meeting space. Condos are out because financing has dried up.
"The quality and standards of Chandler have to be met," Heumann said. "Elevation Chandler is going to be the entrance to the Price Corridor and the mall, and that's important."
At issue was who really owned the site. The legal battle began June 15, 2009, the day of a botched trustee's sale.
The Supreme Court said deeds of trust are governed by state statute, not case law, as Peltier had argued, said Roger Cohen, attorney for TD Service, the company that held not one but three trustee's sales on the property.
Joseph Cotterman, attorney for Point Center, said of the court's opinion, "I was very glad to see a well-reasoned decision that reached the right result for all the right reasons. It is very clear that the Supreme Court decided this strictly under the statutes that relate to deeds of trust."
The first trustee's sale was at noon on June 15, 2009, when an auctioneer for TD Service made a $1 million credit bid on behalf of Point Center. The auctioneer had been authorized to make bids for Point Center up to $25 million if competitors placed bids. Point Center was deemed the buyer.
Peltier arrived later and told the auctioneer the sale had been scheduled at 2 p.m., and he insisted the auction be repeated, so a second sale occurred about 3:30 p.m.
The auctioneer bid $1 million for Point Center, and Peltier bid a dollar more: $1,000,001. The auctioneer called his office and was erroneously told to declare Peltier the winner, even though Point Center had authorized the auctioneer to bid up to $25 million on the lender's behalf.
The next day, a standoff developed between Peltier and TD Service. The company said the sale was void because of errors, and it refused to accept the balance from Peltier, who in turn refused to accept from TD his $10,000 down payment from the day before.
The errors in the sale included inaccuracy in the property's legal description and in sale notices being placed at the wrong address.
Peltier, doing business as BT Capital, filed a lawsuit, which was dismissed by Maricopa County Superior Court Judge Bethany Hicks.
She ruled that the second trustee's sale was void because of procedural irregularities.
Peltier appealed, and the Arizona Court of Appeals kept his case alive.
However, the state Supreme Court said Friday that one of the keys was a third trustee's sale, held on July 1, 2010.
"We hold that this case was rendered moot when the property was purchased by the beneficiary (Point Center) at a third trustee's sale in 2010," the opinion said.
Peltier attended the July 2010 sale but didn't bid, saying he already owned the property.
The Supreme Court also ordered Peltier to pay attorney's fees incurred by Point Center.
Peltier's attorney, Bill Doyle, declined to comment.
Construction on Elevation Chandler stopped April 2006, leaving an eyesore, a partly built hotel jutting into the sky. Jeff Cline, Elevation Chandler's original developer, filed for bankruptcy protection in April 2008.
by Luci Scott - May. 10, 2012 03:33 PM The Republic | azcentral.com
Property near mall finally has owner
For three years, Point Center Financial of California and Phoenix foreclosure speculator Tom Peltier have been fighting in court over ownership.
The court's opinion, issued Friday, ends that legal battle and clears the way for investors to sell the parcel, which has drawn considerable interest from potential buyers.
"Even prior to the decision, there have been a few groups following up with us to see if the decision was out yet," said Rene Esparza, Point Center's loan servicing manager and asset manager.
Esparza declined to identify prospective buyers or the possible price.
A majority of the site's 270 investors, weighted by how much money they have in the project, will vote on whether to sell and, if so, which offer to accept.
"Even though we're negotiating the deal, we want to present to our investors what we believe is the best deal for them," Esparza said.
There have been distressed sales in the commercial market, but Elevation Chandler is a premium location. Its value was muddied because of the litigation, which Esparza described as "the big black cloud over the site."
The property is eligible for a variety of uses, such as apartments, offices or mixed use, but single-family homes won't be considered, Chandler planning administrator Jack Kurtz said.
Because the property is on the southern edge of the upscale Chandler Fashion Center, he expects a project there to complement the mall.
"At one time, the plans were for mixed use, which makes sense," Kurtz said. "The last people who came in, Archstone, were proposing high-density multifamily, which also made sense. Offices complementary to the mall would also make sense."
Colorado-based Archstone Apartments, which was in escrow when it broke the contract last fall, is expressing interest now that the title is clear.
Mayor Jay Tibshraeny is glad the legal case is resolved.
"The single-most question I get asked is what is happening with that partially completed structure near the mall," he said. "It's of keen interest."
City Councilman Rick Heumann said a Class A hotel would work well there because Chandler lacks a large meeting space. Condos are out because financing has dried up.
"The quality and standards of Chandler have to be met," Heumann said. "Elevation Chandler is going to be the entrance to the Price Corridor and the mall, and that's important."
At issue was who really owned the site. The legal battle began June 15, 2009, the day of a botched trustee's sale.
The Supreme Court said deeds of trust are governed by state statute, not case law, as Peltier had argued, said Roger Cohen, attorney for TD Service, the company that held not one but three trustee's sales on the property.
Joseph Cotterman, attorney for Point Center, said of the court's opinion, "I was very glad to see a well-reasoned decision that reached the right result for all the right reasons. It is very clear that the Supreme Court decided this strictly under the statutes that relate to deeds of trust."
The first trustee's sale was at noon on June 15, 2009, when an auctioneer for TD Service made a $1 million credit bid on behalf of Point Center. The auctioneer had been authorized to make bids for Point Center up to $25 million if competitors placed bids. Point Center was deemed the buyer.
Peltier arrived later and told the auctioneer the sale had been scheduled at 2 p.m., and he insisted the auction be repeated, so a second sale occurred about 3:30 p.m.
The auctioneer bid $1 million for Point Center, and Peltier bid a dollar more: $1,000,001. The auctioneer called his office and was erroneously told to declare Peltier the winner, even though Point Center had authorized the auctioneer to bid up to $25 million on the lender's behalf.
The next day, a standoff developed between Peltier and TD Service. The company said the sale was void because of errors, and it refused to accept the balance from Peltier, who in turn refused to accept from TD his $10,000 down payment from the day before.
The errors in the sale included inaccuracy in the property's legal description and in sale notices being placed at the wrong address.
Peltier, doing business as BT Capital, filed a lawsuit, which was dismissed by Maricopa County Superior Court Judge Bethany Hicks.
She ruled that the second trustee's sale was void because of procedural irregularities.
Peltier appealed, and the Arizona Court of Appeals kept his case alive.
However, the state Supreme Court said Friday that one of the keys was a third trustee's sale, held on July 1, 2010.
"We hold that this case was rendered moot when the property was purchased by the beneficiary (Point Center) at a third trustee's sale in 2010," the opinion said.
Peltier attended the July 2010 sale but didn't bid, saying he already owned the property.
The Supreme Court also ordered Peltier to pay attorney's fees incurred by Point Center.
Peltier's attorney, Bill Doyle, declined to comment.
Construction on Elevation Chandler stopped April 2006, leaving an eyesore, a partly built hotel jutting into the sky. Jeff Cline, Elevation Chandler's original developer, filed for bankruptcy protection in April 2008.
by Luci Scott - May. 10, 2012 03:33 PM The Republic | azcentral.com
Property near mall finally has owner
Arizona's mortgage improvement fastest in U.S.
Delayed mortgage payments are decreasing faster in Arizona than in any other state, indicates a new report.
Arizona delinquencies on past-due home loans fell by one-fourth over the 12 months ending in March, reports credit-researcher TransUnion.
That gave Arizona the nation's best delinquency-improvement rate, though the percentage of past-due home loans here remains above the national average, TransUnion said Wednesday.
Arizona's mortgage-delinquency rate fell to 6.86 percent at the end of March, down from 9.14 percent one year earlier. The U.S. mortgage-delinquency rate also improved, falling to 5.78 percent at the end of March from 6.19 percent a year earlier. The new national rate is the lowest since the first quarter of 2009.
TransUnion defines delinquencies as the percentage of borrowers who are 60 or more days past due and extracts the information from individual credit reports, about 27 million in total.
Combined with other indicators such as rising home prices and declining personal bankruptcies, the delinquency report provides further evidence that the state's economic recovery is continuing.
For example, Phoenix home values rose 3.3 percent over the 12 months through February, the best performance among 20 large cities tracked by the Standard & Poor's/Case-Shiller housing index. Arizona State University reported a 20 percent year-over-year home-price increase through March.
Meanwhile, metro Phoenix and statewide bankruptcies have been falling for 15 straight months on a year-over-year basis. In April, for example, Valley filings were down 27 percent from April 2011.
Also, national consumer delinquencies on credit cards and 10 other loan categories tracked by the American Bankers Association fell across the board during the most recent quarter -- the first time that has happened in eight years.
"You can't get a better consumer-credit report card than this," said the ABA's chief economist, James Chessen, in a statement.
Nationally, mortgage delinquencies tracked by TransUnion have been trending lower for three years, though they increased moderately in the third and fourth quarters of 2011.
"While we are still about three times above the pre-recession norm, this should mark the start of consistent improvement each quarter," said Tim Martin, a group vice president focused on housing in TransUnion's financial-services unit.
Arizona's improvement largely reflects stable or rising home prices and a declining jobless rate, Martin said. The state also is coming down from a surge in bankruptcies.
"It's a very good story for Arizona," Martin said. "Arizona started from a high base and has been showing improvement, and we expect it will continue to show improvement through the end of the year."
The Arizona delinquency rate, which started 2007 at just 1.45 percent, rose almost continuously as the Great Recession worsened, peaking at 11.33 percent in the fourth quarter of 2009, before reversing course over the past couple of years.
TransUnion predicts mortgage delinquencies will continue to drift lower in 2012, as more homeowners are able to make payments. That forecast is based on assumptions about economic activity, consumer sentiment, unemployment rates, personal income, real-estate values and more. The forecast would change with unanticipated shocks to the economy or a renewed slide in housing prices, the company said.
As another positive, Martin cited low interest rates and rising refinancing activity, including through the federal Home Affordable Refinance Program, or HARP.
In addition to having the best mortgage-delinquency improvement rate, Arizona also has cut its housing debt notably. The average amount of mortgage debt here fell 3.3 percent to $196,300 over the past 12 months, said TransUnion. That was the second-largest debt decrease after a 6.2 percent decline in Nevada. Arizona's housing debt peaked at about $220,200 in the first quarter of 2009.
by Russ Wiles - May. 9, 2012 06:17 PM The Republic | azcentral.com
Arizona's mortgage improvement fastest in U.S.
Arizona delinquencies on past-due home loans fell by one-fourth over the 12 months ending in March, reports credit-researcher TransUnion.
That gave Arizona the nation's best delinquency-improvement rate, though the percentage of past-due home loans here remains above the national average, TransUnion said Wednesday.
Arizona's mortgage-delinquency rate fell to 6.86 percent at the end of March, down from 9.14 percent one year earlier. The U.S. mortgage-delinquency rate also improved, falling to 5.78 percent at the end of March from 6.19 percent a year earlier. The new national rate is the lowest since the first quarter of 2009.
TransUnion defines delinquencies as the percentage of borrowers who are 60 or more days past due and extracts the information from individual credit reports, about 27 million in total.
Combined with other indicators such as rising home prices and declining personal bankruptcies, the delinquency report provides further evidence that the state's economic recovery is continuing.
For example, Phoenix home values rose 3.3 percent over the 12 months through February, the best performance among 20 large cities tracked by the Standard & Poor's/Case-Shiller housing index. Arizona State University reported a 20 percent year-over-year home-price increase through March.
Meanwhile, metro Phoenix and statewide bankruptcies have been falling for 15 straight months on a year-over-year basis. In April, for example, Valley filings were down 27 percent from April 2011.
Also, national consumer delinquencies on credit cards and 10 other loan categories tracked by the American Bankers Association fell across the board during the most recent quarter -- the first time that has happened in eight years.
"You can't get a better consumer-credit report card than this," said the ABA's chief economist, James Chessen, in a statement.
Nationally, mortgage delinquencies tracked by TransUnion have been trending lower for three years, though they increased moderately in the third and fourth quarters of 2011.
"While we are still about three times above the pre-recession norm, this should mark the start of consistent improvement each quarter," said Tim Martin, a group vice president focused on housing in TransUnion's financial-services unit.
Arizona's improvement largely reflects stable or rising home prices and a declining jobless rate, Martin said. The state also is coming down from a surge in bankruptcies.
"It's a very good story for Arizona," Martin said. "Arizona started from a high base and has been showing improvement, and we expect it will continue to show improvement through the end of the year."
The Arizona delinquency rate, which started 2007 at just 1.45 percent, rose almost continuously as the Great Recession worsened, peaking at 11.33 percent in the fourth quarter of 2009, before reversing course over the past couple of years.
TransUnion predicts mortgage delinquencies will continue to drift lower in 2012, as more homeowners are able to make payments. That forecast is based on assumptions about economic activity, consumer sentiment, unemployment rates, personal income, real-estate values and more. The forecast would change with unanticipated shocks to the economy or a renewed slide in housing prices, the company said.
As another positive, Martin cited low interest rates and rising refinancing activity, including through the federal Home Affordable Refinance Program, or HARP.
In addition to having the best mortgage-delinquency improvement rate, Arizona also has cut its housing debt notably. The average amount of mortgage debt here fell 3.3 percent to $196,300 over the past 12 months, said TransUnion. That was the second-largest debt decrease after a 6.2 percent decline in Nevada. Arizona's housing debt peaked at about $220,200 in the first quarter of 2009.
by Russ Wiles - May. 9, 2012 06:17 PM The Republic | azcentral.com
Arizona's mortgage improvement fastest in U.S.
Arizona shows big jump in 2011 construction
Arizona ranked fifth among U.S. states for construction spending on commercial real-estate projects in 2011, a huge advance from its No. 14 position the previous year, according to a report issued this week.
The report, from the Virginia-based real-estate development association NAIOP, said companies spent $4.2 billion on Arizona commercial-development projects in 2011, supporting more than 74,000 jobs.
The huge jump in Arizona construction spending was due in large part to the ongoing construction of Intel Corp.'s $5 billion Fab 42 project in Chandler, which began in summer 2011 and is expected to be completed in 2013.
The facility, touted as the largest microchip-fabrication facility in the world, is expected to employ about 1,000 full-time workers upon completion.
The biggest spender in the U.S. on commercial construction in 2011 was Texas, with $7.9 billion spent on commercial projects supporting about 150,000 jobs, the NAIOP report said.
New York was second, with $6.5 billion in construction spending and about 83,750 jobs supported, it said.
In third place was West Virginia, with $5.9 billion in construction spending and about 101,000 jobs supported, followed by California, with $4.5 billion in spending and about 71,000 jobs supported.
Nationally, development and construction of commercial real estate -- including office, industrial and retail buildings -- rebounded in 2011, the NAIOP report said.
It was the first year to post gains in construction spending since the recession began in 2007, according to the report, titled "How Office, Industrial and Retail Development and Construction Contributed to the U.S. Economy in 2011."
Construction spending on commercial real estate totaled $92.3 billion in 2011, an increase of more than 12 percent compared with 2010, the report said.
That spending supported nearly 2 million jobs nationally, it said.
Although most developers have yet to resume construction of new multitenant office and retail projects, there has been a resurgence of multifamily housing and warehouse construction, both of which are considered commercial development.
The total economic impact of commercial real-estate development, including pre-construction, construction and post-construction, added $261.6 billion to the U.S. gross domestic product in 2011.
That's a 13 percent increase over the $231.7 billion commercial construction added to the U.S. GDP in 2010, according to the report, which was issued Monday.
The increase in construction spending and activity resulted in the building of 238.3 million square feet of new commercial space, an increase of 2.5 percent from 2010.
That new space has the capacity to house 610,000 jobs with an annual payroll of $26.8 billion, the report said.
"2011 was a transition year for the U.S. economy and the construction sector," said report author and economist Stephen S. Fuller, director of the Center for Regional Analysis at George Mason University. "The U.S. economy shifted from a federal stimulus to private-sector-driven growth pattern, and construction spending grew accordingly."
Forecasts for 2012 call for construction spending to increase and accelerate further in 2013 and 2014, according to the report.
"For the first time, we are seeing across-the-board increases in this sector," said Thomas Bisacquino, NAIOP president and CEO. "We believe this is the most solid evidence yet of a strengthening recovery."
by J. Craig Anderson - May. 8, 2012 06:18 PM The Republic | azcentral.com
Arizona shows big jump in 2011 construction
The report, from the Virginia-based real-estate development association NAIOP, said companies spent $4.2 billion on Arizona commercial-development projects in 2011, supporting more than 74,000 jobs.
The huge jump in Arizona construction spending was due in large part to the ongoing construction of Intel Corp.'s $5 billion Fab 42 project in Chandler, which began in summer 2011 and is expected to be completed in 2013.
The facility, touted as the largest microchip-fabrication facility in the world, is expected to employ about 1,000 full-time workers upon completion.
The biggest spender in the U.S. on commercial construction in 2011 was Texas, with $7.9 billion spent on commercial projects supporting about 150,000 jobs, the NAIOP report said.
New York was second, with $6.5 billion in construction spending and about 83,750 jobs supported, it said.
In third place was West Virginia, with $5.9 billion in construction spending and about 101,000 jobs supported, followed by California, with $4.5 billion in spending and about 71,000 jobs supported.
Nationally, development and construction of commercial real estate -- including office, industrial and retail buildings -- rebounded in 2011, the NAIOP report said.
It was the first year to post gains in construction spending since the recession began in 2007, according to the report, titled "How Office, Industrial and Retail Development and Construction Contributed to the U.S. Economy in 2011."
Construction spending on commercial real estate totaled $92.3 billion in 2011, an increase of more than 12 percent compared with 2010, the report said.
That spending supported nearly 2 million jobs nationally, it said.
Although most developers have yet to resume construction of new multitenant office and retail projects, there has been a resurgence of multifamily housing and warehouse construction, both of which are considered commercial development.
The total economic impact of commercial real-estate development, including pre-construction, construction and post-construction, added $261.6 billion to the U.S. gross domestic product in 2011.
That's a 13 percent increase over the $231.7 billion commercial construction added to the U.S. GDP in 2010, according to the report, which was issued Monday.
The increase in construction spending and activity resulted in the building of 238.3 million square feet of new commercial space, an increase of 2.5 percent from 2010.
That new space has the capacity to house 610,000 jobs with an annual payroll of $26.8 billion, the report said.
"2011 was a transition year for the U.S. economy and the construction sector," said report author and economist Stephen S. Fuller, director of the Center for Regional Analysis at George Mason University. "The U.S. economy shifted from a federal stimulus to private-sector-driven growth pattern, and construction spending grew accordingly."
Forecasts for 2012 call for construction spending to increase and accelerate further in 2013 and 2014, according to the report.
"For the first time, we are seeing across-the-board increases in this sector," said Thomas Bisacquino, NAIOP president and CEO. "We believe this is the most solid evidence yet of a strengthening recovery."
by J. Craig Anderson - May. 8, 2012 06:18 PM The Republic | azcentral.com
Arizona shows big jump in 2011 construction
Monday, May 7, 2012
CityScape developer snaps up Borgata
RED Development has added to its recent acquisitions by purchasing the Borgata of Scottsdale shopping center for $9.15 million from Macerich Co.
The Borgata at Scottsdale Road and Rose Lane is a specialty center built in 1981 to resemble the Italian village of San Gimignano. It offers 94,000 square feet of retail space, including the Blanco Tacos and J. Alexander's restaurants and the Dolce Salon and Spa.
"We are very pleased to have acquired this well-situated and high-quality property in Scottsdale, a tremendous market for retail performance," said Mike Ebert, RED managing partner.
RED Development, based in Phoenix, has been actively acquiring property in addition to developing CityScape in downtown Phoenix.
Last month, RED Development and Cole Real Estate Investments teamed up to buy Macerich's 50 percent stake in the Chandler Village Center and Chandler Festival power centers for $45.8 million.
RED also bought the Shops at Prescott Gateway and the Aspen Place at the Sawmill retail center in Flagstaff within the past year.
The Borgata acquisition is part of RED's growth strategy, Ebert said.
"We look forward to working with the unique retailers and restaurants at the property and applying RED's creative approach to the future of the real estate," he said.
The Borgata has vacancies, but RED Development declined to disclose its occupancy rate at the time of the sale. The deal closed earlier this week.
It did not include the nearby Shops at Hilton Village, on the opposite side of Scottsdale Road from the Borgata, which Macerich also manages. Macerich, of Santa Monica, Calif., is the parent company of Westcor, the Valley's largest mall developer and operator. Company executives could not be reached for comment.
by Peter Corbett - May. 4, 2012 04:29 PM The Republic | azcentral.com
CityScape developer snaps up Borgata
The Borgata at Scottsdale Road and Rose Lane is a specialty center built in 1981 to resemble the Italian village of San Gimignano. It offers 94,000 square feet of retail space, including the Blanco Tacos and J. Alexander's restaurants and the Dolce Salon and Spa.
"We are very pleased to have acquired this well-situated and high-quality property in Scottsdale, a tremendous market for retail performance," said Mike Ebert, RED managing partner.
RED Development, based in Phoenix, has been actively acquiring property in addition to developing CityScape in downtown Phoenix.
Last month, RED Development and Cole Real Estate Investments teamed up to buy Macerich's 50 percent stake in the Chandler Village Center and Chandler Festival power centers for $45.8 million.
RED also bought the Shops at Prescott Gateway and the Aspen Place at the Sawmill retail center in Flagstaff within the past year.
The Borgata acquisition is part of RED's growth strategy, Ebert said.
"We look forward to working with the unique retailers and restaurants at the property and applying RED's creative approach to the future of the real estate," he said.
The Borgata has vacancies, but RED Development declined to disclose its occupancy rate at the time of the sale. The deal closed earlier this week.
It did not include the nearby Shops at Hilton Village, on the opposite side of Scottsdale Road from the Borgata, which Macerich also manages. Macerich, of Santa Monica, Calif., is the parent company of Westcor, the Valley's largest mall developer and operator. Company executives could not be reached for comment.
by Peter Corbett - May. 4, 2012 04:29 PM The Republic | azcentral.com
CityScape developer snaps up Borgata
Solis site goes for $30 million
An 11-acre redevelopment site for a planned hotel and condominiums in downtown Scottsdale was sold last week at a trustee sale for $30 million.
AZ-Waters Edge LLC submitted the only bid and will take title of the land northeast of Scottsdale and Camelback roads, said attorney Lawrence Petrowski of Stinson Morrison Hecker LLP, the trustee.
Scottsdale Canal Development LLC, which started assembling the property along the Arizona Canal in 2006, had planned a 240-room Solis Scottsdale hotel and 140 condos on a site that now includes a SRP substation.
"It's a huge disappointment," said Mark Madkour, Scottsdale Canal Development principal. "It was a huge amount of effort, time and money."
Madkour and his investors lost millions of dollars on what was to be a $600 million project.
IMH Financial Corp. of Scottsdale foreclosed on the property in May 2011. AZ-Waters Edge is affiliated with IMH Financial.
Scottsdale Canal Development also lost ownership of a site at 68th Street and Indian School Road it had intended to use for the relocated Salt River Project substation, Madkour said. It paid $7 million for the property.
Westcor gets new deadline
Westcor has again deferred its lease payment until May 31 for 112 acres of state trust land northeast of Scottsdale Road and Loop 101.
The Valley mall developer owed the Arizona State Land Department $2.2 million by April 30 for the site, which has long been planned for a regional mall.
Westcor made $1.26 million in lease payments through 2010 but deferred its payments in January and December 2011. In April 2008, Westcor bid $32 million for the site to secure a 99-year lease.
State Land Commissioner Maria Baier has the discretion to defer lease payments for up to five years.
by Peter Corbett - May. 4, 2012 03:10 PM The Republic | azcentral.com
Solis site goes for $30 million
AZ-Waters Edge LLC submitted the only bid and will take title of the land northeast of Scottsdale and Camelback roads, said attorney Lawrence Petrowski of Stinson Morrison Hecker LLP, the trustee.
Scottsdale Canal Development LLC, which started assembling the property along the Arizona Canal in 2006, had planned a 240-room Solis Scottsdale hotel and 140 condos on a site that now includes a SRP substation.
"It's a huge disappointment," said Mark Madkour, Scottsdale Canal Development principal. "It was a huge amount of effort, time and money."
Madkour and his investors lost millions of dollars on what was to be a $600 million project.
IMH Financial Corp. of Scottsdale foreclosed on the property in May 2011. AZ-Waters Edge is affiliated with IMH Financial.
Scottsdale Canal Development also lost ownership of a site at 68th Street and Indian School Road it had intended to use for the relocated Salt River Project substation, Madkour said. It paid $7 million for the property.
Westcor gets new deadline
Westcor has again deferred its lease payment until May 31 for 112 acres of state trust land northeast of Scottsdale Road and Loop 101.
The Valley mall developer owed the Arizona State Land Department $2.2 million by April 30 for the site, which has long been planned for a regional mall.
Westcor made $1.26 million in lease payments through 2010 but deferred its payments in January and December 2011. In April 2008, Westcor bid $32 million for the site to secure a 99-year lease.
State Land Commissioner Maria Baier has the discretion to defer lease payments for up to five years.
by Peter Corbett - May. 4, 2012 03:10 PM The Republic | azcentral.com
Solis site goes for $30 million
Friday, May 4, 2012
Gilbert home construction outpaces other cities in Valley
Home construction in Gilbert continues to outpace every other Valley municipality, and the town is on track for its most robust year in new-home permits since 2006.
Several new and existing subdivisions around Gilbert are experiencing a flurry of activity as homebuilders look to capitalize on a rebound in the housing market.
Nearly every Valley community has seen a significant jump in permit activity during the first few months of the year, but nowhere is the spike more pronounced than in Gilbert, according to data produced by the Home Builders Association of Central Arizona.
The town has issued 981 single-family home permits this year, compared with 437 permits during the same four-month period in 2011. Gilbert is on pace to issue almost 3,000 permits this year, which would nearly triple its total from two years ago.
A lack of inventory for resale houses is driving more real-estate agents to point prospective buyers toward new homes instead, Pulte Homes spokeswoman Jacque Petroulakis said.
"Overall, the Southeast Valley is seeing a lot of activity and buyer confidence in terms of real estate," Petroulakis said.
Pulte Homes is selling houses in two partially built subdivisions in Gilbert: Stratland Estates and Lyon's Gate. Both communities have seen an increase in traffic over the past six months, and the company has sold about twice as many homes as expected during the past three months, Petroulakis said.
Meanwhile, prices for the new homes have increased slightly with the rise in demand, she said.
Gilbert's sprawling Power Ranch community near Power and Germann roads has been one of the most active in home construction, according to town records. Gilbert issued 56 home permits for Power Ranch in April, more than any other subdivision.
About two dozen other communities, mainly in the town's southern region, were issued single-family permits in March and April, records show.
The vast majority of home permits result in a finished house with occupants, Planning & Development Services Manager Kyle Mieras said.
"I don't think we have many that are sitting vacant," Mieras said. "Builders aren't really building spec homes right now."
With Gilbert's average household size just over three people, the new homes could end up drawing several thousand residents over the next several months.
Homebuilders' construction plans are reviewed by nearly every town department to analyze the effect on traffic, schools and municipal services. Although it is rare for the town to reject a proposal, developers often work with officials and nearby residents to make changes to plans before they are approved by the Planning Commission, Mieras said.
In addition to single-family construction, at least three apartment plans are in Gilbert's pipeline that would result about 900 total units. There are now about 7,200 apartments in Gilbert.
About 95 percent of the town's housing inventory is single-family detached residences, according to the General Plan. A Maricopa Association of Governments report estimated there were about 74,000 homes in Gilbert in 2009, but the report suggests that number could grow to 92,000 in 2020 and 109,000 in 2030.
From 1996 to 2006, Gilbert issued more than 3,000 home permits every year but one, according to U.S. Census Bureau statistics. In 2004, that number peaked at 5,071.
Then the recession put the kibosh on speculative construction, and the number of residential permits issued plummeted to 1,109 in 2008 before rebounding to 1,275 in 2009.
By the numbers
Gilbert has issued more than twice as many permits through the first four months of this year as compared with the same period in 2011.
2012
January: 149.
February: 262.
March: 286.
April: 284.
Four-month total: 981.
2011
January: 63.
February: 88.
March: 135.
April: 151.
Four-month total: 437.
Around the Valley
Permit numbers suggest more homes are being built in Gilbert than any other Valley municipality. The town has issued about twice as many permits in 2012 as Phoenix, which has issued the second most. Here are some municipalities' totals for the first quarter of 2012.
Gilbert: 697.
Phoenix: 347.
Mesa: 163.
Glendale: 71.
Chandler: 181.
Scottsdale: 64.
Goodyear: 201.
Queen Creek: 42.
New communities planned
The Gilbert Planning Commission has recently approved plans for several communities in Gilbert, including the following:
Marbella Vineyards
Date approved: April 4.
Description: The second phase of an existing community near Higley and Ocotillo roads, the project will include about 300 homes.
Santanilla
Date approved: April 4.
Description: The project includes plans for about 80 homes on the west side of Higley Road south of Riggs Road.
The Bridges East.
Date approved: March 7
Description: Plans include about 850 single-family homes in a master-planned community near Recker and Ocotillo roads.
Cooley Station North
Date Approved: Feb. 1
Description: The project will add about 70 homes to the Cooley Station subdivision near Recker and Warner roads.
by Parker Leavitt - May. 2, 2012 09:29 AM The Republic | azcentral.com
Gilbert home construction outpaces other cities in Valley
Several new and existing subdivisions around Gilbert are experiencing a flurry of activity as homebuilders look to capitalize on a rebound in the housing market.
Nearly every Valley community has seen a significant jump in permit activity during the first few months of the year, but nowhere is the spike more pronounced than in Gilbert, according to data produced by the Home Builders Association of Central Arizona.
The town has issued 981 single-family home permits this year, compared with 437 permits during the same four-month period in 2011. Gilbert is on pace to issue almost 3,000 permits this year, which would nearly triple its total from two years ago.
A lack of inventory for resale houses is driving more real-estate agents to point prospective buyers toward new homes instead, Pulte Homes spokeswoman Jacque Petroulakis said.
"Overall, the Southeast Valley is seeing a lot of activity and buyer confidence in terms of real estate," Petroulakis said.
Pulte Homes is selling houses in two partially built subdivisions in Gilbert: Stratland Estates and Lyon's Gate. Both communities have seen an increase in traffic over the past six months, and the company has sold about twice as many homes as expected during the past three months, Petroulakis said.
Meanwhile, prices for the new homes have increased slightly with the rise in demand, she said.
Gilbert's sprawling Power Ranch community near Power and Germann roads has been one of the most active in home construction, according to town records. Gilbert issued 56 home permits for Power Ranch in April, more than any other subdivision.
About two dozen other communities, mainly in the town's southern region, were issued single-family permits in March and April, records show.
The vast majority of home permits result in a finished house with occupants, Planning & Development Services Manager Kyle Mieras said.
"I don't think we have many that are sitting vacant," Mieras said. "Builders aren't really building spec homes right now."
With Gilbert's average household size just over three people, the new homes could end up drawing several thousand residents over the next several months.
Homebuilders' construction plans are reviewed by nearly every town department to analyze the effect on traffic, schools and municipal services. Although it is rare for the town to reject a proposal, developers often work with officials and nearby residents to make changes to plans before they are approved by the Planning Commission, Mieras said.
In addition to single-family construction, at least three apartment plans are in Gilbert's pipeline that would result about 900 total units. There are now about 7,200 apartments in Gilbert.
About 95 percent of the town's housing inventory is single-family detached residences, according to the General Plan. A Maricopa Association of Governments report estimated there were about 74,000 homes in Gilbert in 2009, but the report suggests that number could grow to 92,000 in 2020 and 109,000 in 2030.
From 1996 to 2006, Gilbert issued more than 3,000 home permits every year but one, according to U.S. Census Bureau statistics. In 2004, that number peaked at 5,071.
Then the recession put the kibosh on speculative construction, and the number of residential permits issued plummeted to 1,109 in 2008 before rebounding to 1,275 in 2009.
By the numbers
Gilbert has issued more than twice as many permits through the first four months of this year as compared with the same period in 2011.
2012
January: 149.
February: 262.
March: 286.
April: 284.
Four-month total: 981.
2011
January: 63.
February: 88.
March: 135.
April: 151.
Four-month total: 437.
Around the Valley
Permit numbers suggest more homes are being built in Gilbert than any other Valley municipality. The town has issued about twice as many permits in 2012 as Phoenix, which has issued the second most. Here are some municipalities' totals for the first quarter of 2012.
Gilbert: 697.
Phoenix: 347.
Mesa: 163.
Glendale: 71.
Chandler: 181.
Scottsdale: 64.
Goodyear: 201.
Queen Creek: 42.
New communities planned
The Gilbert Planning Commission has recently approved plans for several communities in Gilbert, including the following:
Marbella Vineyards
Date approved: April 4.
Description: The second phase of an existing community near Higley and Ocotillo roads, the project will include about 300 homes.
Santanilla
Date approved: April 4.
Description: The project includes plans for about 80 homes on the west side of Higley Road south of Riggs Road.
The Bridges East.
Date approved: March 7
Description: Plans include about 850 single-family homes in a master-planned community near Recker and Ocotillo roads.
Cooley Station North
Date Approved: Feb. 1
Description: The project will add about 70 homes to the Cooley Station subdivision near Recker and Warner roads.
by Parker Leavitt - May. 2, 2012 09:29 AM The Republic | azcentral.com
Gilbert home construction outpaces other cities in Valley
Thursday, May 3, 2012
Phoenix Finds Its Way Out of the Downturn: A Model for Recovery
As recently as June 2011 Phoenix held the second highest metro foreclosure rate in the country, behind only Las Vegas, according to RealtyTrac. By the end of 2011, it had dropped to No. 6, and by March 2012, slipped to No. 9.
Adam Artunian, senior research analyst with John Burns Real Estate Consulting (JBREC), says it wasn’t too long ago that Phoenix was considered ground zero of the housing market’s collapse. “Phoenix has orchestrated a dramatic turnaround in recent months and has considerably outpaced other distressed markets such as Las Vegas, Riverside-San Bernardino, and Sacramento,” according to Artunian.
So what’s going on in the Valley of the Sun that’s so different from the rest of the country? What market forces are strong enough to lift the nation’s sixth most populous city from the depths of the downturn?
Analysts and local real estate professionals alike attribute the market’s turnaround to investors who are snapping up properties to fix and flip or fix and rent.
While Phoenix has always been an attractive investment market, Artunian says investors have literally flooded the area since the downturn and now make up close to 45 percent of all buyers.
Investor demand is so strong in fact that Artunian says first-time buyers are having difficulty competing with investors who are paying with all cash. Local agents are reporting bidding wars among prospective buyers, with homes going for more than the asking prices.
Artunian notes that single-family rental rates are now averaging $12,500 a year. With the selling price of a distressed home usually well below the median home price of $127,000, he says investors can expect to achieve between a 5 percent and 10 percent annual return, after operating expenses and before any home price or rental appreciation.
Investor demand has served to drive up home prices in the area. According to Michael Orr, director of the Real Estate Center at the W.P. Carey School of Business at Arizona State University, the median price of single-family homes in the Phoenix area rose to $134,900 in March of this year, up more than 20 percent from a year earlier.
He says the increase signals a shift in the mix of properties being sold, with fewer low-price foreclosures moving through the market. Median and per square foot pricing is moving up as traditional sales account for a greater percentage of activity, Orr explained.
The average price per square foot for homes in Phoenix during the first quarter of this year was $956, according to the online real estate marketplace Trulia. That’s an increase of 999.9 percent compared to the same period last year.
Local investors say homes priced at the lower end of the market – under $100,000 – are becoming increasingly harder to find, and once you do find a bargain-priced gem, it’s snapped up and off the market before you know it.
Artur Ciesielski, a Realtor and partner with inPhoenix Realty Group, noted in a recent blog post that the nose-dive in Phoenix home prices since the bubble burst is now fueling investor appetite, especially in a market with such high rental demand.
“Expect investor demand to continue and to be part of the demand that is driving prices up,” Ciesielski writes, “and forget about shadow inventory, it’s not coming.”
The housing inventory in Phoenix has fallen to a mere 2.4 months, down from nearly 5 months just one year ago and over 12 months in early 2008. According to JBREC, months-of-supply has not been this low in Phoenix since late 2005 when sales activity was at feverish levels.
Listings of existing homes for sale have fallen 43 percent since March 2011, and local practitioners are now calling “shadow inventory” nothing more than a myth. They say if banks were holding properties off the Phoenix market, now would be the time to release them and it’s just not happening.
Where are all the real estate investors descending from? Artunian points to Canada. While there are a growing number of local investors taking advantage of current conditions, he says Canadians are increasingly flush with cash, many because of their own real estate boom in recent years.
That combined with a favorable currency exchange rate has given them “unusual buying power,” according to Artunian. He cites data from the Cromford Report, a local real-estate publication, which shows one in every 25 sales registered in February went to a buyer that listed a Canadian address.
by Carrie Bay dsnews.com May 2, 2012
Phoenix Finds Its Way Out of the Downturn: A Model for Recovery
Tuesday, May 1, 2012
Arizona lawmakers target mortgage settlement
Arizona lawmakers say they need $50 million from a mortgage settlement to pay for other pressing state needs, even as housing advocates say they may sue if the Legislature takes the funds.
Legislative leaders say their proposal for the fiscal 2013 budget will not deprive relief to victims of the foreclosure crisis: Those needs will be covered by $1.5 billion from the settlement fund, according to state budget staffers. Arizona posted the highest foreclosure rate in the nation in March, the most recent month for which statistics are available, with 9,497 foreclosures, according to RealtyTrac.
The $50 million will come out of an additional $97.7 million in settlement funds overseen by Arizona Attorney General Tom Horne's office. Horne's website says that money is to be used for "state foreclosure prevention programs, Attorney General Office costs and fees, and to remediate the effects of the foreclosure and housing crisis in Arizona."
The settlement language calls for the $97.7 million to be used, among other things, for housing counselors, legal aid, hotlines and to help stressed homeowners with their payments.
Lawmakers say the money amounts to a pricey outreach and education fund. It won't hurt to take half of it, House Speaker Andy Tobin said.
"We're using the funds to relieve the pressure on the budget," said Tobin, R-Paulden. Those stresses range from a push to replace welfare dollars lost to federal budget cuts to prison construction, he said.
Tobin disputed claims from housing advocates that the money would be used to build private prisons. The $50 million goes into the general fund and is not earmarked for a specific program, he said.
The budget includes $50 million over the next two years for 500 maximum-security beds, but those beds would be built and overseen by the state, not private contractors.
The Arizona Housing Alliance said it is considering a lawsuit to stop the fund transfer. The Homeowner Advocacy Unit at Arizona State University's Sandra Day O'Connor College of Law has joined in the effort to monitor the use of funds.
The housing alliance estimates that $50 million could provide 75,000 troubled homeowners with housing counseling and 10,000 homeowners with legal assistance.
Senate Majority Leader Andy Biggs, R-Gilbert, said many of the states benefiting from the mortgage settlement have put the dollars into their general funds.
by Mary Jo Pitzl - Apr. 30, 2012 09:28 PM The Republic | azcentral.com
Arizona lawmakers target mortgage settlement
Legislative leaders say their proposal for the fiscal 2013 budget will not deprive relief to victims of the foreclosure crisis: Those needs will be covered by $1.5 billion from the settlement fund, according to state budget staffers. Arizona posted the highest foreclosure rate in the nation in March, the most recent month for which statistics are available, with 9,497 foreclosures, according to RealtyTrac.
The $50 million will come out of an additional $97.7 million in settlement funds overseen by Arizona Attorney General Tom Horne's office. Horne's website says that money is to be used for "state foreclosure prevention programs, Attorney General Office costs and fees, and to remediate the effects of the foreclosure and housing crisis in Arizona."
The settlement language calls for the $97.7 million to be used, among other things, for housing counselors, legal aid, hotlines and to help stressed homeowners with their payments.
Lawmakers say the money amounts to a pricey outreach and education fund. It won't hurt to take half of it, House Speaker Andy Tobin said.
"We're using the funds to relieve the pressure on the budget," said Tobin, R-Paulden. Those stresses range from a push to replace welfare dollars lost to federal budget cuts to prison construction, he said.
Tobin disputed claims from housing advocates that the money would be used to build private prisons. The $50 million goes into the general fund and is not earmarked for a specific program, he said.
The budget includes $50 million over the next two years for 500 maximum-security beds, but those beds would be built and overseen by the state, not private contractors.
The Arizona Housing Alliance said it is considering a lawsuit to stop the fund transfer. The Homeowner Advocacy Unit at Arizona State University's Sandra Day O'Connor College of Law has joined in the effort to monitor the use of funds.
The housing alliance estimates that $50 million could provide 75,000 troubled homeowners with housing counseling and 10,000 homeowners with legal assistance.
Senate Majority Leader Andy Biggs, R-Gilbert, said many of the states benefiting from the mortgage settlement have put the dollars into their general funds.
by Mary Jo Pitzl - Apr. 30, 2012 09:28 PM The Republic | azcentral.com
Arizona lawmakers target mortgage settlement
Phoenix tops Zillow list
According to Zillow, the Phoenix area is expected to experience a 6.5 percent increase in median home price in 2013 compared with the current year.
The first runner-up was Miami-Fort Lauderdale with an expected median-price increase of 5.6 percent, followed by Tampa with an expected 2.5 percent increase.
According to Zillow, the predictions are based on data from past home-value trends and current market conditions, including leading indicators such as home sales, monthly housing-inventory supply and jobless rate.
An Arizona State University report issued Thursday said the Phoenix area's median single-family-home price was up more than 20 percent in March compared with a year earlier.
The number of foreclosures completed in March was down a whopping 60 percent from March 2011, according to ASU real-estate analyst Mike Orr, who wrote the report.
Orr said new-home sales were up 35 percent in the Phoenix area for the same time period.
Of the 30 major metropolitan areas included in the Zillow forecast, 16 markets were expected to see median home-price increases, while 14 markets were expected to see price declines in 2013.
At the bottom of the list was Atlanta with an expected decrease of 4.1 percent, followed by Chicago with an expected 3.8 percent decrease.
by J. Craig Anderson azcentral.com Apr 27, 2012
Phoenix tops Zillow list
Hotel Palomar in downtown Phoenix almost complete
Years of construction at First and Jefferson streets in downtown Phoenix are about to end at the CityScape office-and-retail project as construction crews complete the Hotel Palomar Phoenix.
The $90 million, 242-room boutique hotel in the RED Development project officially opens June 5. It joins the Hotel San Carlos, Hyatt Regency Phoenix, Renaissance Phoenix Hotel, Sheraton Phoenix Downtown Hotel and the Westin Phoenix Downtown in the lineup of downtown hotels.
Jim Hollister, general manager of the new hotel, said other hoteliers in the area have been welcoming to the Palomar, even though it will bring them new competition.
"We are fighting for the same business in summer," Hollister said.
CityScape general manager Jeff Moloznik said the Hotel Palomar will give Phoenix more leverage when courting large national conferences and events, such as the Super Bowl, which will be held at the University of Phoenix Stadium in 2015, with fan events at CityScape.
"But we're also competing together as a group nationally for conventions," Moloznik said.
Phoenix officials have said the city needs more hotels downtown to support the large-scale conventions they have been drawing to the Phoenix Convention Center, a few blocks from CityScape.
An estimated 195,750 people are expected to attend the center's conferences this year -- which amounts to nearly 276,000 room nights in local hotels, according to the Greater Phoenix Convention and Visitors Bureau and convention-center officials.
Those convention attendees are expected to spend more than $283 million during the year on food, drinks, rooms, souvenirs and entertainment.
The Palomar in Phoenix, a Kimpton hotel, would be an attractive option for conventioneers, and it could be a selling point for associations and other national groups that are deciding where to hold their next annual conventions, said Jennifer Franklin, a spokeswoman for the hotel.
Franklin also said Kimpton hotels have a loyal customer following, especially among women, which makes it an attractive brand for cities to acquire.
The Hotel Palomar Phoenix is the second hotel that Kimpton Hotels and Restaurants has built from scratch, Hollister said. The other is the Hotel Palomar in Chicago. The company usually adds hotels through "adaptive reuse" -- renovating existing buildings.
Moloznik said the Hotel Palomar Phoenix boasts energy efficiency and recycled materials that may enable it -- and all of CityScape's two blocks of stores, restaurants and offices -- to qualify for the prestigious LEED certification, the international hallmark of green design and construction.
In addition, it already meets Kimpton's standards for green building under its 7-year-old green building program, EarthCare -- another selling point for the environmentally conscientious customer.
The hotel's 242 rooms are decked in chic neutral tones -- espresso brown; gray beaded wallpaper; beige-colored, croc-textured doors on the wardrobes; and stainless-steel fixtures. The furniture has crisp, straight edges, but pillows and other accessories soften the sharpness. Nightly room rates start at $149.
"It's like that show 'Mad Men,' " Hollister said, referring to the popular AMC television show set in the early 1960s, when interior design was markedly minimalist with stark, contrasting colors.
A one-bedroom unit features a separate sitting room. Each bathroom has a Fuji soak tub.
A 3,200-square-foot ballroom will play host to conferences, banquets and celebrations. Boardrooms also can be set up in the meeting spaces. Altogether, the hotel offers more than 15,000 square feet of meeting space.
Construction crews are putting the finishing touches on two bars. One, on the second floor of the hotel, is the Blue Hound Kitchen & Cocktails bar, where Palomar guests will be invited to a "Wines of the World" hour at 5 p.m. daily. Room service also is available 24 hours a day.
The outdoor pool is on the third floor, where guests can watch the crowds walking to and leaving concerts, Phoenix Suns, Mercury and Arizona Diamondbacks games. Another bar, Lustre, next to the pool will be open to the public.
Guests hoping to squeeze in a workout will get complimentary passes to Gold's Gym Elite at CityScape.
Hollister said the hotel has been hosting job fairs at the CityScape office tower to hire 250 workers, from cleaning crews to managers.
by Emily Gersema - Apr. 28, 2012 04:35 PM The Republic | azcentral.com
Hotel Palomar in downtown Phoenix almost complete
Scottsdale development projects
Scottsdale is experiencing a surge of new development projects either planned or under construction.
Among the more high-profile are a $135 million Blue Sky apartments near Scottsdale Fashion Square and the Optima Sonoran Village condominium complex southeast of Camelback and 68th Street. Developers are hoping to construct a total of 5,700 apartment units in at least 18 projects citywide. Nearly two-thirds of the proposed units are downtown and along McDowell Road.
Blue Sky -- Construction is expected to start this summer on the $135 million, 13-story apartment complex on Scottsdale Road just north of Camelback Road and across from Scottsdale Fashion Square.
Mark-Taylor -- Mark-Taylor Residential Inc. is planning 536 apartment units at 74th Street and McDowell Road, the old Los Arcos site. The city in September also agreed to sell the apartment developer 3.74 acres of city-owned land nearby for the complex.
Maravilla Scottsdale --The resort-style senior community is scheduled for completion in May just west of the Fairmont Scottsdale Princess resort. Plans call for 217 residences, including 36 assisted-living units and 24 memory-care units.
Scottsdale Retail Plaza --The City Council just cleared the way for development of the new beach club in the downtown-entertainment district south of Camelback Road and east of Scottsdale Road. Plans include an indoor/outdoor pool club in the center, a building with restaurant and bar space on the western side and a three-tenant building intended for restaurant and bar use on the eastern side.
Reata Ranch -- Developer Taber Anderson wants to build up to 35 lodge units, 75 cabins, 120 casitas and 100 villas at the guest ranch, which could include stables and hiking and equestrian trails into the nearby McDowell Sonoran Preserve.
Optima Sonoran Village -- Initial site work began last fall on the 10-acre property southeast of Camelback Road and 68th Street, with the first phase of 210 units expected to be finished by September 2013. The project primarily is a condominium development, with rental units available.
by Beth Duckett - Apr. 27, 2012 08:53 AM The Republic | azcentral.com
Scottsdale development projects
Among the more high-profile are a $135 million Blue Sky apartments near Scottsdale Fashion Square and the Optima Sonoran Village condominium complex southeast of Camelback and 68th Street. Developers are hoping to construct a total of 5,700 apartment units in at least 18 projects citywide. Nearly two-thirds of the proposed units are downtown and along McDowell Road.
Blue Sky -- Construction is expected to start this summer on the $135 million, 13-story apartment complex on Scottsdale Road just north of Camelback Road and across from Scottsdale Fashion Square.
Mark-Taylor -- Mark-Taylor Residential Inc. is planning 536 apartment units at 74th Street and McDowell Road, the old Los Arcos site. The city in September also agreed to sell the apartment developer 3.74 acres of city-owned land nearby for the complex.
Maravilla Scottsdale --The resort-style senior community is scheduled for completion in May just west of the Fairmont Scottsdale Princess resort. Plans call for 217 residences, including 36 assisted-living units and 24 memory-care units.
Scottsdale Retail Plaza --The City Council just cleared the way for development of the new beach club in the downtown-entertainment district south of Camelback Road and east of Scottsdale Road. Plans include an indoor/outdoor pool club in the center, a building with restaurant and bar space on the western side and a three-tenant building intended for restaurant and bar use on the eastern side.
Reata Ranch -- Developer Taber Anderson wants to build up to 35 lodge units, 75 cabins, 120 casitas and 100 villas at the guest ranch, which could include stables and hiking and equestrian trails into the nearby McDowell Sonoran Preserve.
Optima Sonoran Village -- Initial site work began last fall on the 10-acre property southeast of Camelback Road and 68th Street, with the first phase of 210 units expected to be finished by September 2013. The project primarily is a condominium development, with rental units available.
by Beth Duckett - Apr. 27, 2012 08:53 AM The Republic | azcentral.com
Scottsdale development projects
Home prices in Phoenix area up 20 percent in past 12 months
Home prices are surging in metro Phoenix, climbing 8 percent in March alone and 20 percent in the past 12 months.
The median price of a house in the region climbed to $134,900, according to a new report from the W. P. Carey School of Business at Arizona State University.
The trend is projected to continue throughout the year, although at a slower pace.
Mike Orr, director of the Center for Real Estate Theory at ASU, doesn't expect home prices to continue to climb as fast as they did in March over the next few months. But he projects metro Phoenix's housing appreciation for 2012 to reach 25 percent by September.
Orr credits the turnaround to steep drops in foreclosures and in the number of homes for sale, coupled with an increase in sales.
Fewer foreclosures means fewer inexpensive homes for buyers. The number of homes taken back by lenders in metro Phoenix is down 60 percent from March 2011.
Housing inventory has dropped steadily during the past year because of a record number of investors snapping up properties out of foreclosure.
Home sales are up 35 percent from a year ago as more regular buyers have joined investors in the mix.
"Prices have begun to rise at a fast pace, and bargains are no longer plentiful," Orr said. "Most homes that are priced well are attracting multiple offers within a couple of days, and many are exceeding the asking price."
March's price increase was the sixth in a row for Phoenix's housing market. Most real-estate analysts say the streak of rising home prices, along with slower foreclosures, is proof a housing recovery is under way.
A growing number of national real-estate analysts say metro Phoenix is leading the U.S.' housing market's recovery.
Metro Phoenix's median home price is still at least $130,000 lower than it was during the boom but almost $30,000 higher than it was in August 2011.
Foreclosures are down, and so are the sales of lender-owned homes. Since March 2012, the number of foreclosures resold by lenders has plummeted 61 percent. At the same time, regular sales, new-home sales, investor purchases and short sales have climbed. All those types of transactions have higher median prices.
The number of houses on the market across the Phoenix area is down 64 percent from March 2011.
Frustrated real-estate agents have buyers ready to sign contracts but can't find houses for them.
Don Paulsen of Peoria-based West USA Realty said the number of homes on the market is even lower when the number of homes that already have contracts written on them is subtracted.
An example would be a short sale in which the owner accepted an offer and the agent is showing the status as AWC -- active with contingencies -- until they get lender approval, he said.
"The reality is most agents will not show those homes because they know there is already an accepted contract on them," Paulsen said.
Orr also expects foreclosures to continue to fall, which means even fewer inexpensive homes will be for sale.
"The very low number of inexpensive homes available for resale means more buyers are considering purchasing new homes as an option," Orr said. "This signals the start of a distinct upward trend in new-home sales."
Pinal County home prices are up 21.3 percent in price per square foot from March 2011 to March 2012, with Maricopa County prices per square foot up 12.9 percent.
The areas showing the greatest increases are those that suffered the most price damage from the foreclosure wave from 2007 to 2011, Orr said. Examples include El Mirage, up 20 percent in average price per square foot; Maricopa, up 20 percent; San Tan Valley, up 31 percent; Tolleson, up 20 percent; Glendale, up 16 percent; Phoenix, up 17 percent; and Anthem, up 17 percent.
In contrast, some areas least affected by foreclosures are still showing price decreases. Examples are Paradise Valley, down 2 percent; Tempe and Fountain Hills, down 3 percent; Sun City West, down 12 percent; and Wickenburg, down 18 percent.
Owner-occupied home sales, which have been eclipsed by foreclosures and short sales in recent years, also increased 47 percent from March 2011 to March 2012.
Prices are still below March 2011, but Orr said the trend has reversed recently, with the price per square foot rising 8.1 percent from February to March. The median normal resale price is now $166,650, still 4.8 percent below the $175,000 in March 2011.
New-home sales are concentrated in the southeast Valley, with Gilbert and Chandler recording the most sales in March, Orr reported.
by Catherine Reagor - Apr. 26, 2012 11:36 PM The Republic | azcentral.com
Home prices in Phoenix area up 20 percent in past 12 months
The median price of a house in the region climbed to $134,900, according to a new report from the W. P. Carey School of Business at Arizona State University.
The trend is projected to continue throughout the year, although at a slower pace.
Mike Orr, director of the Center for Real Estate Theory at ASU, doesn't expect home prices to continue to climb as fast as they did in March over the next few months. But he projects metro Phoenix's housing appreciation for 2012 to reach 25 percent by September.
Orr credits the turnaround to steep drops in foreclosures and in the number of homes for sale, coupled with an increase in sales.
Fewer foreclosures means fewer inexpensive homes for buyers. The number of homes taken back by lenders in metro Phoenix is down 60 percent from March 2011.
Housing inventory has dropped steadily during the past year because of a record number of investors snapping up properties out of foreclosure.
Home sales are up 35 percent from a year ago as more regular buyers have joined investors in the mix.
"Prices have begun to rise at a fast pace, and bargains are no longer plentiful," Orr said. "Most homes that are priced well are attracting multiple offers within a couple of days, and many are exceeding the asking price."
March's price increase was the sixth in a row for Phoenix's housing market. Most real-estate analysts say the streak of rising home prices, along with slower foreclosures, is proof a housing recovery is under way.
A growing number of national real-estate analysts say metro Phoenix is leading the U.S.' housing market's recovery.
Metro Phoenix's median home price is still at least $130,000 lower than it was during the boom but almost $30,000 higher than it was in August 2011.
Foreclosures are down, and so are the sales of lender-owned homes. Since March 2012, the number of foreclosures resold by lenders has plummeted 61 percent. At the same time, regular sales, new-home sales, investor purchases and short sales have climbed. All those types of transactions have higher median prices.
The number of houses on the market across the Phoenix area is down 64 percent from March 2011.
Frustrated real-estate agents have buyers ready to sign contracts but can't find houses for them.
Don Paulsen of Peoria-based West USA Realty said the number of homes on the market is even lower when the number of homes that already have contracts written on them is subtracted.
An example would be a short sale in which the owner accepted an offer and the agent is showing the status as AWC -- active with contingencies -- until they get lender approval, he said.
"The reality is most agents will not show those homes because they know there is already an accepted contract on them," Paulsen said.
Orr also expects foreclosures to continue to fall, which means even fewer inexpensive homes will be for sale.
"The very low number of inexpensive homes available for resale means more buyers are considering purchasing new homes as an option," Orr said. "This signals the start of a distinct upward trend in new-home sales."
Pinal County home prices are up 21.3 percent in price per square foot from March 2011 to March 2012, with Maricopa County prices per square foot up 12.9 percent.
The areas showing the greatest increases are those that suffered the most price damage from the foreclosure wave from 2007 to 2011, Orr said. Examples include El Mirage, up 20 percent in average price per square foot; Maricopa, up 20 percent; San Tan Valley, up 31 percent; Tolleson, up 20 percent; Glendale, up 16 percent; Phoenix, up 17 percent; and Anthem, up 17 percent.
In contrast, some areas least affected by foreclosures are still showing price decreases. Examples are Paradise Valley, down 2 percent; Tempe and Fountain Hills, down 3 percent; Sun City West, down 12 percent; and Wickenburg, down 18 percent.
Owner-occupied home sales, which have been eclipsed by foreclosures and short sales in recent years, also increased 47 percent from March 2011 to March 2012.
Prices are still below March 2011, but Orr said the trend has reversed recently, with the price per square foot rising 8.1 percent from February to March. The median normal resale price is now $166,650, still 4.8 percent below the $175,000 in March 2011.
New-home sales are concentrated in the southeast Valley, with Gilbert and Chandler recording the most sales in March, Orr reported.
by Catherine Reagor - Apr. 26, 2012 11:36 PM The Republic | azcentral.com
Home prices in Phoenix area up 20 percent in past 12 months
Friday, April 20, 2012
Proposed Solis property slated for trustee sale
The proposed Solis project (formerly Waterview) on Camelback Road east of Scottsdale Road.
A vacant downtown Scottsdale property that was cleared for a luxury hotel and condominiums is scheduled for a trustee sale next week.
A development group headed by Mark Madkour of Scottsdale Canal Development had plans to build the 240-room Solis Scottsdale hotel and 140 condominiums on the 10.57-acre property.
But the lender foreclosed on the property and Scottsdale Canal Development filed for Chapter 11 bankruptcy last fall.
The site northeast of Scottsdale and Camelback roads and east of the Arizona Canal has been vacant for nearly three years. Madkour's group tore down aging apartments along 73rd Street to prepare the property for development.
Madkour said Scottsdale Canal Development might bid at the trustee sale.
"We still feel we are the best one to move forward with this project," he said. "There's been interest in the northern portion for multifamily development but that doesn't help the situation."
Scottsdale Canal Development had an ambitious $600 million project pegged for the site with a 72-foot hotel, underground parking, six condo buildings, walking paths and two bridges over the canal. The company also planned to move a Salt River Project electrical substation from the site to a spot northeast of 68th Street and Indian School Road.
Most of the opposition centered on relocation of the substation.
Vacant site an eyesore
Tony Viti, who lives north of the site in Villa Monterey Unit 1, said he hopes the property gets developed but he is not sure he will ever see it.
"It doesn't look good," he said. "It's just sitting there with some graffiti on the fences."
Still, the vacant property is an improvement over the apartments that had been on the site, said Viti, who is vice president of the Villa Monterey Unit 1 homeowners association.
"We had all kinds of people walking through our neighborhood," Viti said. "We had guys sleeping back by the canal."
Investors hesitant to buy in
Scottsdale Canal Development defaulted on a series of loans for the project.
Boulder Capital is owed more than $12 million, according to U.S. Bankruptcy Court records.
Madkour said he is trying to line up other investors for the project.
"We have three strong candidates that could come in and help us with a joint venture," he said.
"It's been extremely challenging," Madkour said. "We didn't walk away because we really believe in the project...I firmly believe in the location."
Madkour said he has been trying to lure investors over the past two years but they are hesitant.
"Arizona is just so tarnished by this imploded real-estate market," he said. "It really is on a black list for some people."
by Peter Corbett - Apr. 19, 2012 12:29 PM The Republic | azcentral.com
Proposed Solis property slated for trustee sale
Apartments to replace vacant medical offices in Scottsdale
A vacant medical plaza is set to be demolished to make way for a 264-unit apartment complex northwest of Scottsdale Road and Lincoln Drive.
In January, the Scottsdale City Council approved a zoning change to allow the mixed-use development, named Broadstone on Lincoln. The Development Review Board this month approved the site plan, architecture and design of the complex.
Bryan Cluff, project coordinator for the city, said this will be one of the first multifamily complexes under construction in Scottsdale.
"The only other one I think may be ahead of it would be Optima Sonoran Village on Camelback Road," he said. "They're moving forward as well. Optima Sonoran Village does have (construction) permits for Phase 1 and that portion of the project is under construction."
Broadstone on Lincoln is among 18 apartment projects that would add about 5,700 apartments citywide.
The property is owned by Cam-8 LLC and the developer is Alliance Residential Holdings. The plan calls for multilevel apartment buildings and one story of retail along Scottsdale Road.
The apartment complex includes six buildings totaling 225,562 square feet on 5.3 acres. The overall project is 7.5 acres. The site of the future Ritz-Carlton is just west of the property in Paradise Valley.
The development excludes the 48,000-square-foot lot at Scottsdale and Lincoln, which houses two separate commercial office buildings.
The property was zoned for commercial use in the early 1970s and was developed with multiple office buildings, which now are vacant and deteriorating.
The developer hasn't yet submitted construction documents to obtain construction permits for the apartment complex, Cluff said.
Once the existing buildings have been demolished, construction will begin on the new apartment buildings, said Jason Morris, a zoning attorney representing the project.
"We're moving on to construction drawings and we're doing that right now," he said. "Construction is to begin later this year. It will be built all at once. We will open while construction is still occurring. All of the units will be phased in."
The apartment complex will be set back from Scottsdale Road,
The first units should be ready for occupancy in either the first or second quarter of 2013, Morris said. The complex will have luxury units supported by an underground parking structure, he said.
Building heights will be greater just west of Scottsdale Road, while heights will be lowest on the north side of the property, according to the Development Review Board application. The maximum building height will be 48 feet.
This will be the first multifamily residential development in the immediate area, Morris said. The location is intended to attract a "social" resident who frequents area retail, restaurants and other development.
The retail portion of the project, two one-story buildings along Scottsdale Road, will be under a separate Development Review Board application, he said.
"The retail won't take as long to build as the residential, so it's very possible that it could come out of the ground together with the residential," Morris said.
Nearby residents expressed concern to the council about the complex this year, saying it was too dense and would increase traffic congestion in the area.
"I think we're able to communicate answers to the majority of their concerns," Morris said.
by Edward Gately - Apr. 20, 2012 09:44 AM The Republic | azcentral.com
Apartments to replace vacant medical offices in Scottsdale
In January, the Scottsdale City Council approved a zoning change to allow the mixed-use development, named Broadstone on Lincoln. The Development Review Board this month approved the site plan, architecture and design of the complex.
Bryan Cluff, project coordinator for the city, said this will be one of the first multifamily complexes under construction in Scottsdale.
"The only other one I think may be ahead of it would be Optima Sonoran Village on Camelback Road," he said. "They're moving forward as well. Optima Sonoran Village does have (construction) permits for Phase 1 and that portion of the project is under construction."
Broadstone on Lincoln is among 18 apartment projects that would add about 5,700 apartments citywide.
The property is owned by Cam-8 LLC and the developer is Alliance Residential Holdings. The plan calls for multilevel apartment buildings and one story of retail along Scottsdale Road.
The apartment complex includes six buildings totaling 225,562 square feet on 5.3 acres. The overall project is 7.5 acres. The site of the future Ritz-Carlton is just west of the property in Paradise Valley.
The development excludes the 48,000-square-foot lot at Scottsdale and Lincoln, which houses two separate commercial office buildings.
The property was zoned for commercial use in the early 1970s and was developed with multiple office buildings, which now are vacant and deteriorating.
The developer hasn't yet submitted construction documents to obtain construction permits for the apartment complex, Cluff said.
Once the existing buildings have been demolished, construction will begin on the new apartment buildings, said Jason Morris, a zoning attorney representing the project.
"We're moving on to construction drawings and we're doing that right now," he said. "Construction is to begin later this year. It will be built all at once. We will open while construction is still occurring. All of the units will be phased in."
The apartment complex will be set back from Scottsdale Road,
The first units should be ready for occupancy in either the first or second quarter of 2013, Morris said. The complex will have luxury units supported by an underground parking structure, he said.
Building heights will be greater just west of Scottsdale Road, while heights will be lowest on the north side of the property, according to the Development Review Board application. The maximum building height will be 48 feet.
This will be the first multifamily residential development in the immediate area, Morris said. The location is intended to attract a "social" resident who frequents area retail, restaurants and other development.
The retail portion of the project, two one-story buildings along Scottsdale Road, will be under a separate Development Review Board application, he said.
"The retail won't take as long to build as the residential, so it's very possible that it could come out of the ground together with the residential," Morris said.
Nearby residents expressed concern to the council about the complex this year, saying it was too dense and would increase traffic congestion in the area.
"I think we're able to communicate answers to the majority of their concerns," Morris said.
by Edward Gately - Apr. 20, 2012 09:44 AM The Republic | azcentral.com
Apartments to replace vacant medical offices in Scottsdale
Scottsdale City Council clears way for beach club
The Scottsdale City Council this week cleared the way for development of a new beach club in the city's entertainment district.
Two applications related to the proposal submitted by property owner Shawn Yari gained council approval Tuesday despite initial objections from other businesses in the area.
Two nearby property owners -- PS Investment LLC and Shoeman LLC -- had filed legal protests to force a 6-1 supermajority council vote for approval of the applications.
However, both protests were dropped before the council's meeting, which meant the council could approve the applications with a simple majority.
"Shoeman rescinded their protest," said Tim Curtis, city planning director. "They said they spoke with the applicant and were convinced that this was a good project. PS didn't meet the land area and location requirements for a legal protest."
Yari plans to develop Scottsdale Retail Plaza on the block that now houses Myst nightclub on Shoeman Lane and Suede restaurant/bar on Indian Plaza.
The council approved applications to rezone two strips of land within the site from parking to commercial use, and to abandon a public alley right-of-way to remove one of two alleys on the site.
Demolition of the existing buildings, including Myst and Suede nightclubs, could begin within a few weeks, said David Leibowitz,Yari's spokesman.
"We're trying to meet an end-of-the-year deadline (for completion)," he said.
The complex will include an indoor/outdoor pool club in the center, a separate building with restaurant and bar space on the western side, and a three-tenant building intended for restaurant and bar use on the eastern side. The complex also could include some retail space.
The complex will encompass an entire block with the exception of the southwestern corner, which now houses the Swiss Consulate.
Councilman Bob Littlefield was the only council member to vote against the applications. Councilman Ron McCullagh was absent.
Adding more bars to an already crowded bar district doesn't qualify as economic development, Littlefield said.
"How about we crack down on the problem bars and get rid of them?" he said.
Mayor Jim Lane and all other council members said the project will be positive for the entertainment district and downtown.
Vice Mayor Linda Milhaven said she's "thrilled" about the project, that it will be better than what's there now and that it will attract a different clientele.
Jason Morris, a zoning attorney representing Yari's Triyar Entertainment, said the complex will be a "better version of what exists today" and will attract Scottsdale's "premiere clientele."
No other zoning change is required because all of the proposed uses already are permitted on the site, he said.
"We are not talking, despite all the rhetoric, about some vast change," he said.
But critics of the area's bar scene and problems associated with weekend crowds said the project will only aggravate the situation.
Bill Crawford, president of the Association to Preserve Downtown Scottsdale's Quality of Life, said this project will "smash" any hope that nearby residents will have any peace and quiet. He has been an outspoken critic of Yari and his developments.
"Why won't this council listen to the voters and protect our quality of life?" he said. "This is the deal that's going to change everything. It's going to increase our parking problem, it's going to punish the neighbors with noise and it's going to increase crime."
However, Casey Cutter, who also lives nearby, said the entertainment district is important to the city because it "brings in young professionals." He said noise emanating from the district is not an issue for him.
"I sleep very soundly at night," he said.
by Edward Gately - Apr. 19, 2012 08:27 AM The Republic | azcentral.com
Scottsdale City Council clears way for beach club
Thursday, April 19, 2012
Saturday, April 14, 2012
Homebuilders busy again in corners of metro Phoenix
Homebuilding, metro Phoenix's biggest industry before the housing crash, is on the rise again.
Unlike in the past, this burst in the region's homebuilding isn't being driven by buyers going farther and farther out to find a house they can afford or investors looking for bargains.
In some areas of metro Phoenix, including Chandler and Gilbert in the southeast and Peoria and Surprise in the northwest, short-sale home prices are climbing so high due to multiple offers that resale home prices are rivaling new-home costs.
At the same time, builders are able to put up new houses for costs that let them compete with foreclosure-home prices. Many picked up empty lots in prime locations for bargain prices during the crash and can keep construction costs low.
The results: Among buyers, a growing number who have been outbid multiple times on short sales and foreclosures are opting to purchase new houses instead. And among builders, who have seen several dismal years of slow sales and deep losses, some are now reporting profits or at least their highest monthly sales in years.
Amy Baum had been outbid on seven short sales on homes in Chandler and Gilbert when her real-estate agent persuaded her to look at new homes in Gilbert.
Baum, an occupational nurse who treats employees at Intel, wanted to be near her job and her parents, who live in the southeast Valley.
"The prices on short sales were being bid up so high, I would have ended up paying $215,000 for a home that would take another $15,000 to fix up," said Baum. "I could get a new house for $215,000 and not have to worry about fighting some other buyer for it or renovating it."
New-home recovery
New-home sales and permits to build homes are up significantly in metro Phoenix from last year, due mostly to buyers like Baum.
"There's no question the new home market is finally on its way back," said RL Brown, publisher of the "Phoenix Housing Market Letter," a monthly newsletter tracking homebuilding. "But no one knows whether it will come back rip-roaring like the boom of 2006 or a more normal market like 2003."
For the first two months of this year, new home permits are up 84 percent compared with the same period in 2011, but the overall numbers are still low by metro Phoenix standards.
In January and February, there were 1,460 single-family permits issued in the region. In 2003, there were about 2,500 permits issued a month. In 2006, new homes went up at an average rate of 5,300 a month.
New-home sales are up 34 percent, but again, there were only 1,099 during the first two months of the year.
Several builders are reporting March was their best month for sales in years, and the uptick in the new-home market is likely to continue for at least a few more months.
Homebuilder Taylor Morrison sold more than 100 metro Phoenix houses in three weeks, making March its best year for sales in four years, said Pierrette Tierney, the company's vice president of sales and marketing.
She said buyers who have lost bidding wars on short-sale and foreclosure homes are Taylor Morrison's biggest group of buyers now.
"People call after looking at one of our houses and say, "If I write you a deposit check right now, can I get that lot?' " Tierney said.
"They are so happy when we tell them yes because they have been turned down so many times trying to buy existing houses. Of course, we are thrilled, too."
Location, location
Not all areas of metro Phoenix's new-home market are drawing buyers. The areas with the most homes being built are also the areas with the fewest existing homes for sale. The fringe parts of the Valley, the communities farthest out, continue to struggle.
"Real-estate agents are beginning to steer clients to new homes again because, in certain areas, it's the only option for their buyers," said Marcie Jarnagin-Beckham, a sales associate with Meritage's Villages at Val Vista in Gilbert, where Baum purchased her home.
The majority of new homes sold in metro Phoenix during the past year have been in Gilbert and Chandler. Buyers are drawn to those areas for the schools, jobs and shopping.
Other popular areas are Peoria and Surprise in the northwest. Several large employers have moved into the areas, and the expansion of Loop 303 has made commutes easier.
"It's all about location for homebuyers now," said Brown. "People will no longer drive until they qualify to buy a house."
Perry Dion has been trying to buy a house in Peoria for the past year. He has bid on dozens of short sales and even gone to the foreclosure auctions in front of the Maricopa County Courthouse.
"I have been going month-to-month on my apartment paying more because I kept thinking one of my offers would be accepted," he said. "But recently, I realized I have saved enough money that I can buy a new home in the area."
He's been checking out new subdivisions in Peoria and north Phoenix for the past few weekends and hopes to sign a contract this month.
Dion wants to sign a deal soon because he is already seeing some slight increases in the prices of the new homes he's checked out.
Market conditions
There's a shortage of home lots in the areas of the Valley where most new houses are being built. That, along with demand for more buyers, could push up overall new home prices this year, say real-estate analysts.
"I don't think any homebuilders are jumping up and down yet, but it feels good to be selling homes again," said Carl Mulac, president of AV Homes and chairman of the Home Builders Association of Central Arizona. "I am just concerned about how long this window of opportunity will last."
Some builders are expected to try to draw buyers in other parts of the Valley where they still have inexpensive lots. But there's no guarantee that strategy will work.
Building costs could rise if new-home demand continues to increase.
Subcontractors had to cut what they charged builders to survive the downturn, and most are ready to raise their fees as soon as they can, said Brown. Those higher fees will push up new-home prices.
And bargains on empty lots in foreclosure are mostly gone, so builders' land costs will continue to rise.
"My biggest concern for the market," Mulac said, "is whether the price appreciation of new homes can outpace the cost appreciation builders will soon be facing."
MORE ON THIS TOPIC
Single-family permits issued in metro Phoenix
1,460In January and February
2,500Per month in 2003
5,300Per month in 2006
by Catherine Reagor - Apr. 13, 2012 11:07 PM The Republic | azcentral.com
Homebuilders busy again in corners of metro Phoenix
Unlike in the past, this burst in the region's homebuilding isn't being driven by buyers going farther and farther out to find a house they can afford or investors looking for bargains.
In some areas of metro Phoenix, including Chandler and Gilbert in the southeast and Peoria and Surprise in the northwest, short-sale home prices are climbing so high due to multiple offers that resale home prices are rivaling new-home costs.
At the same time, builders are able to put up new houses for costs that let them compete with foreclosure-home prices. Many picked up empty lots in prime locations for bargain prices during the crash and can keep construction costs low.
The results: Among buyers, a growing number who have been outbid multiple times on short sales and foreclosures are opting to purchase new houses instead. And among builders, who have seen several dismal years of slow sales and deep losses, some are now reporting profits or at least their highest monthly sales in years.
Amy Baum had been outbid on seven short sales on homes in Chandler and Gilbert when her real-estate agent persuaded her to look at new homes in Gilbert.
Baum, an occupational nurse who treats employees at Intel, wanted to be near her job and her parents, who live in the southeast Valley.
"The prices on short sales were being bid up so high, I would have ended up paying $215,000 for a home that would take another $15,000 to fix up," said Baum. "I could get a new house for $215,000 and not have to worry about fighting some other buyer for it or renovating it."
New-home recovery
New-home sales and permits to build homes are up significantly in metro Phoenix from last year, due mostly to buyers like Baum.
"There's no question the new home market is finally on its way back," said RL Brown, publisher of the "Phoenix Housing Market Letter," a monthly newsletter tracking homebuilding. "But no one knows whether it will come back rip-roaring like the boom of 2006 or a more normal market like 2003."
For the first two months of this year, new home permits are up 84 percent compared with the same period in 2011, but the overall numbers are still low by metro Phoenix standards.
In January and February, there were 1,460 single-family permits issued in the region. In 2003, there were about 2,500 permits issued a month. In 2006, new homes went up at an average rate of 5,300 a month.
New-home sales are up 34 percent, but again, there were only 1,099 during the first two months of the year.
Several builders are reporting March was their best month for sales in years, and the uptick in the new-home market is likely to continue for at least a few more months.
Homebuilder Taylor Morrison sold more than 100 metro Phoenix houses in three weeks, making March its best year for sales in four years, said Pierrette Tierney, the company's vice president of sales and marketing.
She said buyers who have lost bidding wars on short-sale and foreclosure homes are Taylor Morrison's biggest group of buyers now.
"People call after looking at one of our houses and say, "If I write you a deposit check right now, can I get that lot?' " Tierney said.
"They are so happy when we tell them yes because they have been turned down so many times trying to buy existing houses. Of course, we are thrilled, too."
Location, location
Not all areas of metro Phoenix's new-home market are drawing buyers. The areas with the most homes being built are also the areas with the fewest existing homes for sale. The fringe parts of the Valley, the communities farthest out, continue to struggle.
"Real-estate agents are beginning to steer clients to new homes again because, in certain areas, it's the only option for their buyers," said Marcie Jarnagin-Beckham, a sales associate with Meritage's Villages at Val Vista in Gilbert, where Baum purchased her home.
The majority of new homes sold in metro Phoenix during the past year have been in Gilbert and Chandler. Buyers are drawn to those areas for the schools, jobs and shopping.
Other popular areas are Peoria and Surprise in the northwest. Several large employers have moved into the areas, and the expansion of Loop 303 has made commutes easier.
"It's all about location for homebuyers now," said Brown. "People will no longer drive until they qualify to buy a house."
Perry Dion has been trying to buy a house in Peoria for the past year. He has bid on dozens of short sales and even gone to the foreclosure auctions in front of the Maricopa County Courthouse.
"I have been going month-to-month on my apartment paying more because I kept thinking one of my offers would be accepted," he said. "But recently, I realized I have saved enough money that I can buy a new home in the area."
He's been checking out new subdivisions in Peoria and north Phoenix for the past few weekends and hopes to sign a contract this month.
Dion wants to sign a deal soon because he is already seeing some slight increases in the prices of the new homes he's checked out.
Market conditions
There's a shortage of home lots in the areas of the Valley where most new houses are being built. That, along with demand for more buyers, could push up overall new home prices this year, say real-estate analysts.
"I don't think any homebuilders are jumping up and down yet, but it feels good to be selling homes again," said Carl Mulac, president of AV Homes and chairman of the Home Builders Association of Central Arizona. "I am just concerned about how long this window of opportunity will last."
Some builders are expected to try to draw buyers in other parts of the Valley where they still have inexpensive lots. But there's no guarantee that strategy will work.
Building costs could rise if new-home demand continues to increase.
Subcontractors had to cut what they charged builders to survive the downturn, and most are ready to raise their fees as soon as they can, said Brown. Those higher fees will push up new-home prices.
And bargains on empty lots in foreclosure are mostly gone, so builders' land costs will continue to rise.
"My biggest concern for the market," Mulac said, "is whether the price appreciation of new homes can outpace the cost appreciation builders will soon be facing."
Single-family permits issued in metro Phoenix
1,460In January and February
2,500Per month in 2003
5,300Per month in 2006
by Catherine Reagor - Apr. 13, 2012 11:07 PM The Republic | azcentral.com
Homebuilders busy again in corners of metro Phoenix
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