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Daily News for Commercial Real Estate & Business – October 1, 2012

Here are the news articles you might find interesting today for commercial real estate and business:

Gaylord pulls plug on resort plans at Mesa Proving Grounds It’s official — Gaylord Entertainment Co.(NYSE: GET) announced this week that it’s getting out of the development business — or, rather, business entirely — which means, as many feared, it won’t be building Mesa’s long-awaited resort and conference center at the master planned Eastmark development. View article…

LATEST WEIDNER APARTMENT DEAL GIVES THE FIRM 25 PROPERTIES AND 7,836 UNITS IN ARIZONA Since making its first multi-family acquisition in the Valley in March of 2010, companies formed by Weidner Apartment Homes in Kirkland, Wash. (Dean Weidner, principal) have now amassed 7,836 apartment units in 25 properties in Arizona. That is an average of 261 units purchased per month or almost 9 apartments acquired per day. While that is an amazing run over the past two and a half years, and well over Weidner’s original goal of owning 5,000 units in the Phoenix area, the company continues to scour the Valley for apartment investment opportunities. As a matter of fact, sources say Weidner has another multi-family property that is closing next month in the Phoenix area. Word is that Weidner is under contract to buy a 256-unit apartment project in Mesa in a transaction set to close in October. View article…

BASCOM LOADING UP ON APARTMENTS . . . $105+ MILLION SPENT ON 1,415 UNITS IN TWO MONTHS If two deals go down as were scheduled at press time, Bascom Arizona Ventures LLC will have invested more than $105 million in buying 1,415 units in four communities in the Valley within the past eight weeks. In two transactions slated to close at press time, entities formed by Bascom Arizona Ventures were expected to pay a combined $49.92 million for 784 apartments in two Valley projects. Bascom Arizona Ventures LLC was formed by The Bascom Group in Irvine, Calif. (Derek Chen, Jerome Fink, David Kim, principals). Glenn Daiutolo, who operates from Scottsdale, completes the partnership of principals who together form Bascom Arizona Ventures LLC. In one of the deals set to close September 26, a company formed by Bascom Arizona Ventures was expected to pay $45.57 million ($67,367 per unit) to acquire the 528-unit South Creek apartments at 4424 E. Baseline Road in Phoenix. View article…

M3 COS. LOOKING TO JOIN FORCES WITH P.B. BELL TO DEVELOP 245 APARTMENTS IN PHOENIX M3 Cos. in Phoenix (Scott Schirmer and Bill Brownlee, partners) is working on forming a venture with P.B. Bell Cos. in Scottsdale (Phil Bell, Chapin Bell, principals) to develop a 245-unit apartment complex on an in-fill location in Phoenix. M3 Cos. controls a 6.18-acre at the northwest corner of 16th street and Highland Avenue. The property, which is occupied by retail and office buildings, is owned by Pugliano Enterprises Limited Partnership in Phoenix (James Pugliano, principal). A company formed by M3 Cos. (16th and Highland Partners LLC) has the property under contract to buy. The sale is contingent on zoning approval. Word is the price tag is not quite $5 million. View article…

Mesa AZLabs works to lock down pending leases A year after the former Mesa Air Force Research Laboratory changed hands, efforts to attract tenants for the revamped AZLabs are picking up steam as officials work to lock down four pending leases. “Within the next 30 to 45 days, we expect that they’ll close on two of these, with two more to follow by the end of the year,” AZLabs director Dane Mullenix said at a Mesa Redevelopment Authority Executive Board meeting this week. Mullenix is vice president of Alion Science and Technology, which operates AZLabs. View article…

Children’s Rehabilitative Services to open new facility at Park Central Mall Children’s Rehabilitative Services is opening its new home on Monday in a 56,000-square-foot facility at Park Central Mall in Phoenix. UnitedHealthcare, which has the state contract to manage the CRS program for the state’s sickest children, recently selected District Medical Group to expand and manage the Phoenix Multispecialty Interdisciplinary Clinic for the CRS program. View article…

Summit To Pay $114.6 Million for 10 Hotels Summit Hotel Properties (NYSE: INN), a real estate investment trust, agreed to purchase two hotel portfolios for $114.6 million. The REIT plans to use the net proceeds from its latest public offering to finance the acquisitions, which are set to close next quarter. View article…

Wheelock Street Buys 15 Hotels for $221 Million Affiliates of Wheelock Street Capital completed its purchase of 12 hotels from Inland American Real Estate Trust Inc. and three hotels from Sunstone Hotel Investors Inc. in separate deals for a combined $221 million. Inland American sold 10 Hilton and Marriott branded properties and two Choice Hotels and InterContinental affiliates for nearly $116 million. Wheelock Street funded the transaction by assuming CMBS loans and securing new senior financing provided by GE Capital, Franchise Finance. View article…

Drybar to open second Phoenix franchise, hire 50 Hair salon company Drybar is looking for a few good stylists to staff its second Phoenix-area franchise, which is scheduled to open in October. Drybar, which offers only blow drying styles known as blowouts at a flat rate, wants to hire between 50 and 60 stylists for the new location at 3172 E. Camelback Road in Phoenix. View article…

Arizona economy expansion continued in July The Arizona economy continued expanding in July as job growth and housing price increases paced the state’s economy, according to a monthly report from Comerica Bank. The state’s economic index rose 0.5 percentage points in July from a year earlier to a reading of 86.8, where 100 represents the level in 2008. View article…

HOUSING:
Housing Can’t Save the Economy Both existing and new home sales are on the rise, but no amount of improvement in the housing sector will bring relief to the overall economy, which continues to struggle, according to Capital Economics. Existing home sales rose 10 percent from January to August, and new home sales rose 30 percent over the same period. View article…

Real Estate Question of the Week – Elliott Pollack responds to “why are so many apartments being built? Elliott responds: There’s not much more I can say that I haven’t said before. Apartments are the investment of choice for institutional investors right now. Demand is strong. Vacancy rates are low and declining. Financing is readily available. View article…

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