The Dealmaker: 12/12/2017

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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





Mohave County resists water rights transfer to Central Arizona Project.“[CAP’s] proposed purchase of farms within the Mohave Valley Irrigation and Drainage District has raised a few eyebrows among local officials,” including those belonging to County Assessor Jeanne Kentch: “We view… transfer of any Colorado River water, or any allocations to such water, from Mohave County to central Arizona as part of a continual attack on the water rights and economy of rural Arizona…” Kingman Daily Miner.

Spat between Arizona and California is damming Lake Mead plan. “Disagreements between states… over who would take cuts, as well as conflicts within the states have stalled any draft [of a drought contingency plan] from moving forward.” Pinal County Supervisor Stephen Miller said any plan should take into account “who really does use this natural resource to its full extent,” i.e., the “state’s agriculture industry,” which Cronkite News points out ”would be among the first and hardest hit…”

Jerry Colangelo-led group acquires Tempe marina offices for $928M.Colangelo, “unofficially recognized as the godfather of pro sports in Phoenix,” along with JDM partners David Eaton and Mel Schultz, “teamed up with Houston-based [TIG] to make the purchase.” No word if the “sale-leaseback deal” for the “five-building State Farm campus along Tempe Town Lake” was one that couldn’t be refused, but KTAR does report that it “set a price record in the Valley for commercial office property.” More here:

For the next housing crisis, lessons from the last one. “® has excerpts from a Wall Street Journal interview with Pascal Noel, “an assistant professor at University of Chicago Booth School of Business, and co-author of [a new working paper]” which “sheds light on what went wrong with the government’s efforts to help underwater borrowers in the 2007-09 recession.”

Healthcare trends to watch in real estate. • Build in room for change • Optimize existing real estate to stretch dollars • Take a cue from retailers –put convenience on center stage • Demographics matter more than ever • More locations can mean more risks. AzBigMedia’s David McGlothlin digs into these trends from JLL’s 2017 Healthcare Outlook Report Series, along with the actions to take to “ensure your real estate portfolio is positioned to withstand the challenges facing the healthcare industry in the years ahead.”

Pollack: The economy is white hot. It’s “running on all cylinders,” says The Monday Morning Quarterback, “and expected to accelerate in 2018. Time to enjoy the smooth ride” — which everyone can start doing by checking out the data for the following ‘Snapshots.” (MMQ calls it “quite a report card.”) –> U.S.: November Employment (w/ chart!), GDP, Consumer Sentiment (w/ another chart!), Household Wealth, Credit, Manufacturing. AZ: Maricopa County Median Home Prices – Resale & New.

Construction job openings rise in October. “Overall, the labor market for construction workers remains tight as it continues to expand. As single-family housing starts continue to increase and rebuilding efforts in Texas and Florida continue, more workers will be needed in the residential construction sector.” The No.1 numbers-nerd at NAHB, Robert Dietz, has all the data, at Eye On Housing.

Garages in new homes: 2016 data. “A majority of new homes that completed construction in 2016 included two-car garages, according to NAHB analysis of Census Bureau Survey of Construction data.” What percentage of new homes had one-car or three-car garages? What percentage had carports?  Or even no garage at all?  Find out, plus get “parking options per home size” and “across census divisions” at Eye On Parking — er, make that Eye On Housing.

Why the Phoenix Chinese Cultural Center’s roof Is still in limbo. “[T]he Chinese Cultural Center’s roof is one of the main points of contention for those who want to see the center preserved. So they’re pressing on with [‘some last-minute legal maneuvering’] to save the roof, even though the city of Phoenix issued a permit… that authorizes the center’s owners [668 North] to remove and replace the roof.” Phoenix New Times.

After “Hamilton,” Tovrea Castle is the hottest ticket in Phoenix. “At 6 a.m. Monday, Dec. 11, the Tovrea Carraro Society released tickets for [sixty-one] fall 2018 tours of Tovrea Castle… [B]y 11 a.m. just five tours remained available… Sure, tickets are $15, roughly a tenth of the average ‘Hamilton’ ticket, but it’s a fine showing for a bit of Phoenix history.”  As for those who tried but didn’t get tickets, AZCentral has what is perhaps the next best thing: A 21-image history SLIDESHOW of the “wedding-cake-shaped castle.”

[VIDEO] Inside look at Renaissance Square’s Project Future. “Four architectural groups redesigned the fourth floor of one of Renaissance Square’s towers for four different types of potential tenants. Project Future was unveiled to the public on Thursday, Dec. 7, and AZRE magazine was able to get an inside look for those who were unable to attend the Project Future event.” 

$6M donation will fund Ottawa University sports complex. “Ottawa University announced that alumni Jim ’57 and Jeanne ’56 O’Dell have donated $6 million to the University, the single largest gift in the school’s 152-year history.” AZ Business Magazine reports that the “gift will fund the O’Dell Center for Athletics at the University’s newest residential campus at Ottawa University Arizona in Surprise.” Rendering, design details, and  what Jim O’Dell has to say about the campus, here:

America’s malls are rotting away. And if you think that headline is brutal, just wait until you see the other descriptors CNN Money uses in its report to characterize the current state of malls across the country. Brace yourself — especially if you’re a mall owner — for terms like “apocalypse,” “death spirals,” “house of cards,” “the worst is yet to come” and “this problem is only in its second inning.” Fun stuff! –>

Gilbert Davidson: From potholes and loose dogs to conducting beautiful music. “[Gilbert] Davidson spent 12 years in town management in Marana, where he arrived after managing his hometown of Willcox. He would frequently run into people around town complaining about potholes or trash or loose dogs. Now, he’s hoping to apply what he learned on the city level to state government [as the ‘new chief operating officer for Gov. Doug Ducey’s administration’].” It’s a position Davidson likens to being “an orchestra conductor.” Check out the Arizona Capitol Times Q & A with Gov. Ducey’s new municipal maestro here:

Cameron’s $5M + deals of the day –

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

Katie bar the door for Congressional District 8. “The race to fill the congressional seat once held by Trent Franks is taking shape just days after his resignation, and a crowded Republican primary seems inevitable. Bob Stump… was the first to announce… Sen. Steve Montenegro, R-Litchfield Park, said he’s in… [F]ormer state lawmaker Phil Lovas [announced ‘via Twitter’] that he had resigned from the United States Small Business Administration.” More on the candidates in this report from Katie (“Bar the Door”?) Campbell, in Arizona Capitol Times.

A CHIP off Trump’s block: Children’s health funded until Dec. 22. “The spending bill signed by President Trump on Friday… allows… (HHS) to reallocate any unused federal funds to the states most at risk of running out of [Children’s Health insurance Program] money by the end of the month… Five states — Arizona, California, Minnesota, Washington and Oregon — received redistribution money in October to keep their CHIP programs funded…” But as Governing reports, the “future of CHIP is still uncertain.” 

A cotton tale“How can Arizonans work together to benefit both people and the land?… Could we shut off cotton and alfalfa production like we shut off a tap?… Could farmers use less water or transition to other crops?… Many of the answers are threaded through the issue of cotton.” Phoenix magazine

Rethinking electric power, prompted by politics and disaster. “The impulse to help rebuild Puerto Rico… has rippled through many corners of America. But in the world of electricity research… [i]t is a chance to work on a blank canvas. Researchers’ heads have danced with visions of self-sufficient microgrids and solar-harnessed battery systems as they dream of giving Puerto Rico a new power system that is cleaner and less carbon intensive than the fossil-fuel-dependent one the storm wrecked.” The New York Times.

We’re all a bunch of liars. “Children develop an ability to lie by the time they enter preschool. College students stretch the truth on average twice a day. Adults deliver a whopper a day. Some individuals make false statements they are convinced to be truthful and others repeatedly tell extravagant lies over a lifetime for no known reason.” Scientists are trying to find out why. A report from the American Association for the Advancement of Science.

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