Phoenix Development News (3)

[HX_Guy]

Could this finally be the time? I hope so...

http://www.bizjournals.com/phoenix/news/...roup-to-buy-phoenixs-hotel.html?page=all

San Diego group to buy Phoenix's Hotel Monroe for $8M, revive hotel plans

A San Diego hotel development group is lining up to buy the long-empty, historic Hotel Monroe building in downtown Phoenix for close to $8 million.
The Art Deco-style building at Central Avenue and Monroe Street has been empty for years with a number of previous suitors unable to come to close a deal.
A investment consortium from San Diego and Modus Development in Phoenix want to buy the building and redevelop it into a 150-room boutique hotel, said Mark Winkleman, COO of ML Manager LLC.
ML Manager is a receivership company formed after the Chapter 11 bankruptcy of commercial lender Mortgages Limited. ML Manager has owned and has been trying to sell the 82-year-old Monroe building since foreclosing on Grace Communities in 2010.
Grace Communities bought the downtown building in 2007 via a $27 million loan from Mortgages Ltd. with hotel development plans.
Winkleman said the purchase is in escrow with the buyers conducting due diligence. He said the sale could close Sept. 23.
Winkleman said most of the buyers in the new deal are from San Diego and have experience in hotel development, including on historic sites. The 157,000-square foot building was built in 1931 and was long called the Professional Building and home to Valley Bank & Trust Co. It is on the National Register of Historic Places but has sat empty and exposed to the elements after the Grace foreclosure and some unsuccessful attempts to sell it.
Winkleman said the group has formed a real estate entity called Grasshopper One LLC as part of its purchase effort.
A $7 million bid to buy Hotel Monroe by Evergreen Development Co. Inc. fell short last year as did some other sales efforts.
“Third times a charm,” said Winkleman of the Grasshopper bid.
The hotel development group needs to figure out parking for guests and could also look to the city of Phoenix for property and historic building tax credits. The property sits across from the Chase Tower, the tallest building in the state. It is adjacent to the Hotel San Carlos.

[phxSUNSfan]

Originally Posted by HX_Guy

http://www.bizjournals.com/phoenix/news/...roup-to-buy-phoenixs-hotel.html?page=all

San Diego group to buy Phoenix's Hotel Monroe for $8M, revive hotel plans

A San Diego hotel development group is lining up to buy the long-empty, historic Hotel Monroe building in downtown Phoenix for close to $8 million.
The Art Deco-style building at Central Avenue and Monroe Street has been empty for years with a number of previous suitors unable to come to close a deal.
A investment consortium from San Diego and Modus Development in Phoenix want to buy the building and redevelop it into a 150-room boutique hotel, said Mark Winkleman, COO of ML Manager LLC.

Please, let this one pan out! That is a wonderful building that deserves to be renovated and restored.

[gymratmanaz]

Pretty pretty please!!!!!!!!

[nickw252]

Whoa that's incredible news. I hope it doesn't fall through again. Anytime we get more bodies downtown while restoring an historic property it's a huge win.

[MegaBass]

Originally Posted by HX_Guy

Could this finally be the time? I hope so...

http://www.bizjournals.com/phoenix/news/...roup-to-buy-phoenixs-hotel.html?page=all

San Diego group to buy Phoenix's Hotel Monroe for $8M, revive hotel plans

A San Diego hotel development group is lining up to buy the long-empty, historic Hotel Monroe building in downtown Phoenix for close to $8 million.
The Art Deco-style building at Central Avenue and Monroe Street has been empty for years with a number of previous suitors unable to come to close a deal.
A investment consortium from San Diego and Modus Development in Phoenix want to buy the building and redevelop it into a 150-room boutique hotel, said Mark Winkleman, COO of ML Manager LLC.
ML Manager is a receivership company formed after the Chapter 11 bankruptcy of commercial lender Mortgages Limited. ML Manager has owned and has been trying to sell the 82-year-old Monroe building since foreclosing on Grace Communities in 2010.
Grace Communities bought the downtown building in 2007 via a $27 million loan from Mortgages Ltd. with hotel development plans.
Winkleman said the purchase is in escrow with the buyers conducting due diligence. He said the sale could close Sept. 23.
Winkleman said most of the buyers in the new deal are from San Diego and have experience in hotel development, including on historic sites. The 157,000-square foot building was built in 1931 and was long called the Professional Building and home to Valley Bank & Trust Co. It is on the National Register of Historic Places but has sat empty and exposed to the elements after the Grace foreclosure and some unsuccessful attempts to sell it.
Winkleman said the group has formed a real estate entity called Grasshopper One LLC as part of its purchase effort.
A $7 million bid to buy Hotel Monroe by Evergreen Development Co. Inc. fell short last year as did some other sales efforts.
“Third times a charm,” said Winkleman of the Grasshopper bid.
The hotel development group needs to figure out parking for guests and could also look to the city of Phoenix for property and historic building tax credits. The property sits across from the Chase Tower, the tallest building in the state. It is adjacent to the Hotel San Carlos.

All I got to say is...

[combusean]

The Jet is moving again after a LONG slumber.

http://bloomingrock.com/2013/07/16/devel...wn-phoenix-for-possible-surface-parking/

http://www.desert-troon.com/the-jet

[RichTempe]

This comes from a website called the Davis Experience: http://thedavisexperience.com/projects/portland-place-II.html


Not sure how up to date or realistic it is. No time frame or anything else I could find.



Portland Place Condominiums Phase II - Phoenix, AZ

[Arquitect]

Originally Posted by RichTempe

This comes from a website called the Davis Experience: http://thedavisexperience.com/projects/portland-place-II.html


Not sure how up to date or realistic it is. No time frame or anything else I could find.



Portland Place Condominiums Phase II - Phoenix, AZ

The design is nothing special, but the site plan seems to portray a strong connection with the deck park. The density would be a great addition.

[PHX31]

I thought someone mentioned on this forum a while back that phase II and Phase III of Portland Place was going to be combined into one building - and to be under construction in June.

[Phoenician]

Originally Posted by Arquitect

The design is nothing special, but the site plan seems to portray a strong connection with the deck park. The density would be a great addition.

This is the old plan. It has been replaced by the current plan that I posted a while back.

[nickw252]

There is new optimism in the office market as the sector is exhibiting positive vacancy, absorption, rental rates and sales velocity. Office had been the slowest commercial sector to recover and is finally showing signs of accelerated growth.

Though vacancy rates remain historically high, there has been a steady trend downward over the past year by over 400 basis points. With only four properties added to the inventory in the past 18 months, stronger than expected absorption has been chipping away at vacancy rates. As a result, many have predicted that the office sector will be hitting on all cylinders in 2014-2015.

“Overbuilding worries from the past decade have been revived with con- struction talk again,” said Matt DePinto, senior research analyst with Lee & Associates Arizona. “This time experts believe that the new projects will be developed in submarkets that are lacking quality Class A product with large contiguous blocks of space.”

To this point, several large projects have been proposed in both Phoenix and Tempe downtowns.

The Ryan Companies US, Inc., and Sunbelt Holdings announced they will develop a 2 MSF mixed-use project estimated to cost $600M at Tempe Town Lake called Marina Heights. It will also house the new regional headquarters for State Farm Insurance as well as office, retail and recreational spaces.

Additionally, the Hayden Ferry Lakeside development adjacent to Marina Heights, is planning a new, 260,000 SF office tower to join the other two towers. Other submarkets with stronger Class A absorption over the past year such as Downtown Phoenix, have also garnered interest with developers who are in initial planning stages for several high rise buildings, including one by Barron Collier & Co.

The office market posted a 23.7% vacancy rate, down only 10 basis points, but still moving in the right direction. In fact, office vacancy is now at its lowest level since Q1 2009. Absorption has risen by 290,166 SF this quarter, more than double last quarter’s total. However, since Q1 2009 absorption has only risen by 1.42M.

One building was delivered to market this quarter. Aetna Insurance leased 139,403 SF at Liberty Cotton Center, 4500 E. Cotton Center Blvd. in Phoenix. The 68,867 SF building at 1340 S. Spectrum Blvd. in Chandler is the only office building under construction in the Phoenix market again this quarter.

Rental rates rose by nearly 2% to $20.43 per square foot from last quarter and posted its highest level since Q1 2012. Lease activity is up by total number of transactions this period, but down in overall SF by nearly 200,000 SF. The largest lease transaction signed this quarter was for General Motors taking 169,998 SF at the still proposed Chandler Freeway Crossing II, 2800 W. Geronimo Pl., Chandler. Move in is expected in April 2014.

Sales volume increased dramatically this quarter to $227M in total transactions compared with only $49.7M last quarter. The number of transactions also increased from 52 to 93.

The largest sales transaction for the quarter was the JDM Partners, LLC purchase of the 5-building State Farm Insurance property at 2900 S. Sunland Dr in Chandler. The sale/ leaseback transaction was for $73M consisting of four office and one flex industrial building. The 333,437 SF office portion of the sale was allocated at $66.097M. Price per square foot was calculated at $218.93.

Did we miss some news about Colliers or is this just speculation based on old information?

http://azremagazine.com/economic-develop...ism-growing-highprofile-projects-horizon

[HX_Guy]

Several high rise buildings in the works? That would be nice!

[PHX31]

I don't think it is anything new... the "Colliers/Goloub preconstruction thread... 4 new towers for downtown phoenix" thread already talks about it.

[HooverDam]

Originally Posted by PHX31

I thought someone mentioned on this forum a while back that phase II and Phase III of Portland Place was going to be combined into one building - and to be under construction in June.

Thats what Tim Sprague, the developer, told me. Not sure about the under construction in June part though...maybe he said that (and I relayed it here). Or he may have just said "soon"...dont recall.

[Phoenician]

Originally Posted by HooverDam

Thats what Tim Sprague, the developer, told me. Not sure about the under construction in June part though...maybe he said that (and I relayed it here). Or he may have just said "soon"...dont recall.

My understanding that the target date is fall but that the last pieces of the financing have yet to be lined up. I think they're looking at delivery around 2015 or 2016 at this point.

[ASUSunDevil]

I drove by 44th St. and Camelback today and the SW corner behind the gas station was being fenced off. I forgot the exact project that was planned there, if I recall it was going to be luxury apartments. Either way, looks like they'll be demo'ing those old office buildings and starting construction soon.

[pbenjamin]

Sounds promising. Sad that the reporter thinks that "downtown" goes north of McDowell, though.

Downtown Phoenix apartment project targets young professionals

By Tessa Duvall
The Republic | azcentral.com
Thu Jul 18, 2013 9:01 AM

New apartments will replace a vacant city-owned lot in downtown Phoenix by summer 2015.

The City Council approved the sale of the 23,000-square-foot lot, on First Avenue north of McDowell Road, by the Arizona Opera for $350,000 to developer artHAUS at its July 3 meeting.

Jeremy Legg, economic-development program manager for the Community and Economic Development Department, said the city bought the land in 2011 for the Arizona Opera but later realized the project wouldn’t need the west third of the lot.

In February, the department issued a call for proposals to develop the lot with a transit-oriented project, which tends to be densely populated and pedestrian-friendly. A review panel unanimously selected the artHAUS plan for a three-story, 30- unit, $5.5 million development in March.

“This is exactly what we’ve wanted,” Legg said. “It’s good to see some of these things kind of come to fruition and this become a popular area.”

Jason Boyer, developer and architect of the apartments, said the lot has great potential.

“I think what’s really exciting about the area is that first and foremost, it’s a great infill opportunity,” Boyer said. “It’s got a lot going for it. It’s at a great location.”

Legg said that adding more residential areas downtown is a key part of the downtown strategic plan and that developers are increasingly pursuing redevelopment opportunities rather than building in the suburbs.

“We’re seeing more developers who really get that,” Legg said. “We’re seeing more people who want to live in the core rather than commute from the edge of the greater Phoenix metropolitan area.”

Boyer said the apartments will bring something he thinks downtown is missing: housing for young professionals.

“The intention is a modern, sustainably designed project that appeals to the sensibilities of young professionals and people living in the downtown or midtown area,” he said.

Boyer said the growing need for this type of apartment and the improving real-estate market led to the right timing to buy this lot.

Unit sizes will range from 500 to 1,500 square feet, and the design will emphasize indoor-outdoor connections, including outdoor patio space and floor-to-ceiling glazing.

The location is near the McDowell/Central Avenue Light Rail Station, Margaret T. Hance Park and the Phoenix Art Museum.

Boyer said that he is designing the apartments with sustainability in mind and that he likely will pursue Leadership in Energy and Environmental Design certification.

City officials expect to rezone the lot to urban residential by December and construction will begin next April. Boyer said he anticipates construction will take 10 to 12 months, and tenants can move in by summer 2015.

http://www.azcentral.com/community/phoen...project-targets-young-professionals.html

[westbev93]

Hopefully the Willo NIMBYism doesn't ruin it.

[PHX31]

Pretty cool. Not the highest profile lot, but a good use nonetheless. Really though, it takes nearly 6 months to rezone the lot?

[Phoenician]

Now lets hope the pricing is suitable for young professionals. It seems like downtown is either ultra luxury or affordable housing with little in between.