The Dealmaker: 12/14/2017

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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




Biggest housing stories 2017: The news that rocked the real estate world.“What were 2017’s most noteworthy stories in residential real estate — and the ones you need to watch for in 2018?” Check ‘em out at®.

Phoenix council approves controversial apartment development. “The council approved rezoning plans for… the Alta Marlette multifamily complex with 229 units [at Seventh Street north of Bethany Home].” Phoenix Business Journalreports that when the number of units were “unveiled” during the City Council meeting, “opponents of the project” found the news “surprising.” (As if this Wood Partners’ project wasn’t “contentious” enough already!) –>

YOU PAID HOW MUCH FOR PARKING!?! – Phoenix pays $500K for 20 parking spaces. Here’s how it ties into a big new downtown development. PBJ reports that “the deal is with real estate developer Hines Interests LP,” and that Hines “has proposed to develop the undeveloped pad at Colliers Center… near the corner of 3rd Street and Jefferson.” If we reveal any more, it’ll take away the incentive to check it out. (FYI, this is a NON-subscriber piece from PBJ.)

The Wall Street Journal ‘House of the Day’: A Midcentury Modern home in the desert. “The owners of this Paradise Valley… house bought the property for $57,500 in 1967, and made changes over the decades.” Today’s asking price? $1,595,000. If you’re a WSJ subscriber, you can take a 14-image SLIDESHOW tour of the home. If you’re not a subscriber, you can still catch a glimpse of the place via Rose Law Group Reporter’s mini-SLIDESHOW. (Okay, so it’s only a 1- image slideshow, but it’s a pretty cool shot.)

Phoenix neighbors push back on plan for jail re-entry program. “Business owners and residents… around Lower Buckeye Road and 35th Avenue say the plans [‘for a 335-bed employment center and a 265-bed re-entry center on the Maricopa County Durango Jail campus’] could increase inmate presence in [the] area… ‘I see this as a government-created problem,’ ” says the residents’ representative, pointing to the area’s “degradation and poverty” and attributing it to the “abundance” of nearby correctional facilities. AZCentral.

Big crowd turns out for Prescott Valley P&Z ‘Viewpoint’ discussion. “The listed occupancy of the Prescott Valley Public Library Auditorium is 252, and the number of people inside exceeded that, with a ring of five deep standing in some places along the outer edge… [They were there] to hear about plans for a zoning map change in the Viewpoint development north of Highway 89A, as well as the future of the Jasper development west of Granville.” And the Dealmaker “Impassioned Inquiry of the Day,” comes courtesy of one attendee at this packed-to-capacity hearing, who said “Can someone turn the heat down!? I’m sweatin’ like a teenage girl shoppin’ at the same mall as Roy Moore!” Kidding. It was: “You’re getting ready to approve something and you don’t know who will pay?” The Daily Courier.

2018 demand signals strong: Now, what about supply? “To seize some control of their market opportunity builders should look at how much it costs them to build a square foot of finished space, and how much value that generates.” Builder’s John McManus sets his sights on $85 per sq. ft. and then ponders: “Where’s that number from? What does it mean? And how does that have anything to do with businesses whose cost and value produced per square foot of sheltered space may vary tremendously…?”

[OPINION] Kill the mortgage interest deduction now! Reason Editor in Chief Nick Gillespie and video producer Todd Krainin have their libertarianism on full throttle as they rail against the MID, not only calling it “the worst sort of social engineering and special-interest payoff via the tax code,” but also leveling the charge that it “increases the price of housing by making it artificially cheap to borrow.” (Their piece is supplemented by a rather entertaining 3-minute VIDEO featuring classic shots of vintage homes.)

Serious mortgage delinquency rate hits lowest point in a decade. <– That “according to the latest monthly Loan Performance Insights Report from CoreLogic…” President and CEO Frank Martell: ““While natural hazard risk was elevated in 2017, the economic fundamentals that drive mortgage credit performance are the best in two decades…” READ ON at HousingWire.

Single-family rentals cause crunch in entry-level market“The number of single-family homes that are rented grew by 5 million between 2006 and early 2017, according to a new [Zillow] analysis… Across the country, 37% of rented single-family homes are among the least valuable in their housing markets.” See how MetroPhoenix stacks up, in Builder

Phoenix approves development deal near airport. “The new development deal involves an 80,000-square-foot headquarters [at 16th Street and Buckeye] for [Chicanos Por La Causa] that could include other space lease to other tenants.” Further details, including what the deal means for Sacred Heart Church, at PBJ.

Ruling makes opening of South Mountain Freeway a reality for late 2019.“On December 8, the U.S. Ninth Circuit Court of Appeals sided with highway planners, ruling they did not violate federal environmental laws when they approved the South Mountain Freeway… To understand why the appellate court ruling is a big deal, you have to understand something of the history and scope of the South Mountain Freeway.” Phoenix New Times.

Glendale council snuffs plan for downtown light rail. “The decision comes nearly two months after the council directed city staff against moving forward on the 7-mile route, which had been projected to open in 2026… [The 5-2 vote] reverses a 2016 council decision that directed planners to identify design details and cost estimates, which then narrowly passed by a 4-3 vote.” Get councilmembers’ “here’s why” at AZCentral.

Escrow happens at former Scottsdale Schools headquarters. “The Scottsdale Unified School District has entered into escrow to sell its former headquarters property next to Arcadia High School [3811 N. 44th St]… Hospice of the Valley is the local entity pursuing the 139,962-square-foot property for $4.4 million.” Paradise Valley Independent.

Downtown Wickenburg redevelopment area follows “open session.” “A parcel by parcel assessment of the proposed downtown redevelopment area was completed by the town’s consultant… [and] will be discussed at the next town council meeting.” The Wickenburg Sun notes that “[p]roperty owners are particularly encouraged to attend to learn about the opportunities that will result from the redevelopment area in the coming years.”

Castle Hot Springs Resort will reopen in 2018. “[It] was Arizona’s first luxury resort and originally opened in 1896. After being shuttered for over 40 years, Castle Hot Springs will reopen in the Fall of 2018. A significant feature of the resort will be the Castle Hot Springs Farm, which will provide fresh fruits, vegetables, and herbs to the resort’s restaurant.” Sonoran News.

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

Men feeling they are being shortchanged leads to shared parenting laws; Kaine Fisher, director Family Law Dept., comments. The Denver Postreports that “legislatures in more than 20 states [are] considering bills this year that would encourage shared parenting or make it a legal presumption — even when parents disagree.” One parent who “fought a long court battle for shared custody” contends that “had [the laws] given fathers more explicit rights… the process would have been less contentious.” Kaine Fisher: “[A]s long as we continue to use a best interest analysis as our guiding principle, thus allowing the court freedom to take action against an unfit parent to protect a child’s health and safety, then I think we still have our heads screwed on straight.” More from Kaine in Rose Law Group Reporter.

As expected, Lovas further crowds the run for Trent Franks’ seat. “[Rep. Phil Lovas] joined former state Congressman Bob Stump and state Sen. Steve Montenegro as formal contenders for the seat vacated by [U.S. Rep. Trent Franks], who stepped down last week after sexual misconduct allegations surfaced.” KTAR. As for Democrats running in the overwhelmingly Republican CD8, see who’s in at Rose Law Group Reporter.

Weed on high? GOP lawmaker seeks to ban medical marijuana ads on billboards; Laura A. Bianchi, partner and director, Rose Law Group Cannabis Department, comments. “Mesa Republican [Sen. David Farnsworth] has introduced legislation that would ban billboard advertising for the drug in places they’re most likely to be seen. SB 1032 would make it illegal to advertise any drug illegal under federal law — and that includes marijuana — along state roads. Whether that’s legal or not is up for debate.” And one willing wrangler is attorney Laura A. Bianchi, who says: “Unfortunately, this is another attempt by an unreasonable anti-medical marijuana group to skew statistics in an attempt to needlessly frighten and mislead people.” For Laura’s entire pushback, plus access to Howard Fischer’s full report in Arizona Capitol Times, tap it:

Newsmaker BONUS: ’Feminism’ is Merriam-Webster’s word of the year; Kellyanne Conway is ‘complicit’ in the decision. #MeToo. “The Silence Breakers.” Kellyanne Conway’s use of the term while distancing herself from it. “These events, says Merriam-Webster, are the reasons 2017 was a big year for feminism — at least literally… Another word that became popular this year is ‘complicit,’ which ranks No. 2 in Merriam-Webster’s top 10 list.” The Washington Post.

CoreLogic reports Mortgage Delinquency Rates lowest in more than a decade Mortgage Delinquencies in Phoenix-Mesa-Scottsdale down year over year Read more

Big Dig in the Desert Raises over $175,000 for Pediatric Cancer Research Read more

CoreLogic reports homeowner equity increased by almost $871 billion in Q3 2017Read more

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