Commercial Real Estate & Business News – June 19, 2013

Appreciation Shifts from Cap Rate Compression to Real Growth

CoStar’s Property and Portfolio Research (PPR) division is forecasting that the wave of cap rate compression that has in some cases accounted for an astronomical 90% of the gain in core real estate value since the last recession is likely to slow; after all, trees do not grow to the sky. Specifically, PPR’s analysis of the top 54 U.S. markets finds that cap rates should remain within 20 basis points of today’s… Read more

Upscale Senior Housing Complex In North Scottsdale Trades For $30 Million

A company formed by The Reliant Group in San Francisco, Calif. (Joseph Sherman, pres.) paid $30 million ($176,471 per unit) to acquire a 170-unit senior housing project in Scottsdale called Art. The seller was Arte Senior Living LLC, a company formed by Avenir Group of Cos. in Vancouver, B.C., Canada (David “Les” Craik , pres.). The three-story complex, at the northeast corner of 114th Street and Via Linda… Read more

US Airways Headquarters Building Sold In Tempe For $42 Million

Here’s an interesting deal that recently went down but flew under the radar: The US Airways headquarters building in Tempe was sold to new majority ownership for $41.8 million. New York-based real estate investment trust W.P. Carey Inc. (NYSE: WPC) handed over its 75 percent interest in the nine-story building to… Read more

Former Albertson’s Sells for $1.4M

Lead Charter Schools acquired the former Albertson’s building at 717 W. Ray Rd. in Gilbert, AZ for $1.35 million, or about $23 per square foot, from The Praedium Group LLC and ScanlanKemperBard Companies. The 59,549-square-foot retail building was constructed in 1999 on six acres in Maricopa County, part of the 93,000-square-foot Cooper Square shopping center… Read more

Tempe Mill Avenue Merchants Cheer Movie-Complex Plans

Downtown Tempe shop owners and residents are hopeful that the announcement of a new movie theater just off Mill Avenue will boost business and interest beyond the traditional restaurant and bar scene. AMC Theatres announced last week the lease of a 37,645-square-foot space, which housed a former Harkins movie theater, just south of West Seventh. The new theater is expected to open… Read more