The Dealmaker: 8/23/2017

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The Dealmaker is a daily note of the day’s top real estate stories served just in time for lunch. Bon Appetit! Subscribe here to receive the Dealmaker to your inbox


Where home-building is booming, and why; Phoenix ‘outdoing its norm.’ “Home-building is floundering against soaring demand, with inventory now at its lowest in two decades. Are any markets keeping up?” At least three, in which each is “expected to gain more than 40,000 new homes this year, according to a recent study by Trulia.” Get the CliffsNotes version of the study in RISMedia, which also has a link to the full Trulia report, “Who Will Win the Homebuilding Race of 2017?”

Surprise planners approve rentals in Marley Park. “While a group of Marley Park residents continued their vocal opposition to the one-story rental project proposed by builder Christopher Todd in the heart of their community, the Surprise [P&Z] unanimously approved the site plan for the development… The nearly 15-acre parcel just north of Marley Park Elementary School is zoned for high-density residential use. Christopher Todd plans for 173 luxury… rental units on the site.” YourWestValley.

Newmark secures $57.55M for manufactured home communities. Where: Apache Junction. What: A “400+ pad, 55 and older, 5-star manufactured home community located on approximately 72 acres,” plus “acquisition of the 55 and older, 730-space RV park model resort located on approximately 42 acres.” Transaction details: In AzBigMedia.

Apartments rents rising fastest in Mesa. “The median apartment rent in Mesa has risen 6.4 percent in the last year, according to Apartment List’s August 2017 Mesa Rent Report… [That is] faster than rents in any other Arizona city, though it still remains one of the East Valley’s most affordable communities for renters.” Compare Mesa rents to other Valley cities in East Valley Tribune.

Sedona meditating on 1st MF dev. since ’07. “[The city] is considering a proposed 45-unit development on West SR 89A.” The project will “feature a two-story walkup configuration with one- and two-bedroom units in multiple buildings, which the developer [MK Company, Inc] claims will serve as a transitional space between surrounding land uses.” Is there a “need for such development” in Sedona? MKC certainly thinks so and makes its case for one in AZBEX.

[OPNION] Vitality Coalition: Fashion Square is more than a relic of retail. Calling the upcoming zoning case involving Scottsdale Fashion Square “one of the most important issues our city has faced in recent memory,” Downtown Scottsdale Economic Vitality Coalition founders Bill Crawford and Betty Drake detail why their organization is fully behind “the expansion of Fashion Square.” At Scottsdale Independent.

Proposed Casa Grande Historic Preservation Ordinance adjusted following outcry. “In April, residents of the [Evergreen Historic District] spoke out at a public hearing… to voice their dissatisfaction with the way they thought city staff handled issues dealing with the homes in the district… The revisions proposed this week take into consideration feedback from residents… most notably allowing for an ‘opt-out’ clause.’” Casa Grande Dispatch.

Negotiations begin for new Circle K in Florence (plus other council biz).“The company wants to build a 5,881-square-foot store with eight gas pumps on the vacant lot [at Main and Brady] that once housed Foxworth-Galbraith Lumber Co. and was most recently a feed store.” Other town council biz on Monday included: due diligence for Innovation Pavilion, a  reimbursement to Pulte Homes, and a “resolution in support of Pinal County’s updated road study.”  Florence Reminder.

New Coolidge marijuana cultivation center seeks expansion. “During Wednesday’s Coolidge [P&Z] special meeting, the commission gave the green light [green light indeed!] to add 59,640 square feet of new buildings to the facility [at 3274 W. Coolidge Avenue]. Coolidge Examiner reports that the “two additional buildings” will “serve as greenhouses for ‘cultivation only.’”

$20M plan could revive closed Tucson Convention Center hotel. “HSL Properties pitched the plan to renovate the former Hotel Arizona at the Tucson Convention center and reopen it by 2019 as a 300-room hotel operated by Hilton… [Tuesday, Rio Nuevo District board] voted 4-0 to authorize the board’s executive officers to draw up agreements under the plan.” Arizona Daily Star.

AZ unemployment steady; const. gains 1,700. “Arizona’s seasonally adjusted unemployment rate held in July at 5.1 percent… Construction statewide gained 1,700, and the sector maintains a net gain of 2,400 for the year. Total Arizona Construction jobs for the year-to-date stand at 140,100.” Much more employment data from the Arizona Office of Economic Opportunity at AZBEX.

HUD investigation finds no compliance issues with Navajo Housing Authority. “From March 11-17, a team of HUD officials visited the Navajo Nation and interviewed NHA staff and board members, and visited six of 10 project sites that were profiled and scrutinized in [an Arizona Republic] series in early December 2016.” On August 15, the NHA received HUD’s “Final Monitoring Report.” The conclusion? The “Navajo Housing Authority is in full compliance with federal housing statutes and regulations.” However, there was “one concern.” Arizona Daily Independent.

Changing mortgage deduction would discourage homeownership: Toll Brothers CEO. “‘Very bad policy.’ Toll Brothers CEO Doug Yearley told CNBC’ on Tuesday.” In an interview with “Closing Bell,” Yearely said, “This country has prided itself on encouraging homeownership, and mortgage interest deduction has been around for decades. It’s worked very well.”  WATCH here:

‘Favorited’ homes sell faster for more money. “Favoriting a home on Zillow is a way for shoppers to save homes they’re interested in coming back to later, making it easy to show a friend, partner or real estate agent…  According to a new Zillow analysis, homes with more favorites sell faster and for more money, an indication of how competitive the housing market has become.” Check out how Phoenix’s ‘favorited’ fare in Builder.

ZHOME can help builders unlock home buyer equity. “ZHOME has added yet another dimension to its home-buying service with its EZ Trade Up Program, which is geared to assist new home builders and their customers that need to sell their home to purchase a brand-new home. William Lyon Homes has adopted the service at several of its communities.” The service touts “No showings, no open houses, no appraisals, no escrow fallouts, no hassle.” However, it will a click to Builder to read more about it.

HPI HIGHER – FHFA House Price Index up 1.6% in Q2. (“Year-over-year, the gain is 6.6%.”) “Builder takes a look at the latest Federal Housing Finance Agency (FHFA) House Price Index (HPI); and FHFA Senior Economist William Doerner weighs in on the increase.

Cameron’s $5M + deals of the day-

As a supplement to the Dealmaker, we thought you might enjoy these articles!

A wounded Trump lashes out at Phoenix rally [VIDEO].  “[T]he president attacks the media, Obama and GOP senators… with an angry, meandering and frequently disingenuous 75-minute rally address designed to soothe his ego, rev up his base, and remind the naysayers… that he can still command love from his crowd.” Watch in POLITICO(Related: “Sheriffs’ group honors Flake for bravery in June shooting”) –>

Commissioner Burns sues to void APS rate increase. “[Bob] Burns contends he was denied the opportunity to determine what influence that campaign contributions by [APS] had on the others and whether that tainted their vote. What all that means, he said is the [Arizona Supreme Court] must immediately void the rate increase as a violation of his rights and the constitutional duties of the other commissioners.” Capitol Media Services/Howard Fischer in Arizona Capitol Times.

Federal judge says Arizona’s ban on Mexican American studies is racially discriminatory. “[The ruling] is a major blow to a state law that resulted in the closure of a Mexican American studies program in Tucson. Proponents of the [studies] program have argued that the 2010 law, which in part banned courses designed primarily for students of a particular ethnic group [a law which ‘in general banned classes promoting ‘resentment toward a race or class of people’], was effectively racist… In his decision, [Judge A. Wallace Tashima] railed against former Arizona state superintendents of public instruction who pushed to pass the ban, John Huppenthal and Tom Horne.” Los Angeles Times.

Maricopa County supervisors concerned about Fontes’ 2018 election plan. “Supervisors say [Recorder Adrian] Fontes has caused confusion among constituents without giving the board a heads-up, and has not outlined his proposed changes sufficiently… The supervisors… warn that they don’t want a repeat of the disastrous 2016 presidential-preference election… when long polling-place lines kept some voters out until midnight. ‘Any tinkering with one’s right to vote has to be well thought out…”’ said Supervisor Steve Chucri – AZCentral.

Law to force AG investigation of cities ‘rung’ again, complaint withdrawn quickly. “Yuma lawmaker [Republican Rep. Don Shooter] on Friday started the… process of initiating an attorney general investigation into whether the City of Somerton violated state law by charging a local church a fee for a building permit. [But] Shooter quickly withdrew the complaint on Monday after word spread that city officials are working to fix a local zoning ordinance that conflicts with state law.” AG Office spokesman Ryan Anderson: “The SB 1487 bell has been rung only three times… And in two of these cases, the situation resolved itself at the local level.”

A new way to chart ideological leanings in news media. “New data from Northeastern University… [has] found a reasonably clear relationship between the ideological leaning of the accounts a journalist follows on Twitter and the news content he or she produces.” Head to Axios for the link to this study, which has the mouthful title “Exploring the Ideological Nature of Journalists’ Social Networks on Twitter and Associations with News Story Content.”

About 4,700 children wait for adoption in Arizona. “[And] nearly 17,000 Arizona kids are currently in foster care. Most of them land there through no fault of their own… There’s always a need for more foster and adoptive families…” In an article “Special to The Daily Courier,” reporter Hubble Ray Smith examines the current state of foster care and adoption in Arizona — and details the difference between the two.

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