The Dealmaker: 2/2/2018

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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




Shea to open resort club in North Scottsdale. (Disclosure: Rose Law Group represents Shea Homes.) “Verde River Golf & Social Club, spanning over 30,000 square feet, will be the newest club in the North Scottsdale area in years.” Can Verde River take home “Best  Community Amenity” like another Shea resort club did (Trilogy’s Wickenburg Ranch Golf & Social Club) at the 2018 NAHB International Builders’ Show®? Stay tuned! In the meantime, read about the amenities in Builder— or better yet, see them in person when Shea debuts the “private resort club to the public at its grand opening celebration on Saturday.”

Meritage net nicked by tax act. Closings up 6%. New orders up 20%. Backlog up 1%. The full breakdown, plus chairman and CEO Steven J. Hilton with UPBEAT projections for 2018, in Builder.

To address tight housing inventory, we need better measures of housing supply. Maintaining that there is “no readily available, timely, easily interpreted metric that assesses the balance between supply and demand” because “current data sources are not well integrated’ enough” Jenny Schuetz and Cecile Murray, both from Brookings’  Metropolitan Policy Program, “address several challenges to developing such a metric with existing data.”

Mortgage rates in big trouble. And with that bit of doom and gloom, Mortgage News Daily COO Matthew Graham kicks off this report, which was published late yesterday afternoon. And here’s a little more cheeriness from Matt to further brighten up your day: “Whatever you’ve read about the current spike so far today, you’ll probably need to double it after today’s bond market movement. Why? Because most news stories on rates haven’t yet accounted for today’s bond market movement!” READ ON:

Most expensive home sales in Phoenix. Arizona Foothills Magazine presents the “Valley’s top home sales from the past week (1.22.18 – 1.28.18),” during which combined sales totaled “over $26 million,” a SURGE of $4 million from the previous week. Pics in this installment feature homes that boast custom ceilings, 9 ft. high bi-fold doors, and stunning views not only of mountains and city lights, but also of next door residences owned by fellow, filthy rich neighbors.

The place where stuff happens: Self-storage is taking over the PHX.(Disclosure: Rose Law Group represents self-storage facilities around the Valley.) “Imagine that! There’s a whole industry based on keeping an eye on your stuff” – George Carlin. Around Phoenix in 2017, it was a “banner year” for the business of “keeping an eye on your stuff,” with construction adding “more than 3,300 units.” And 2018 is on track to be even “crazier.” But as Phoenix New Times stresses, these aren’t “your grim storage facilities with garage-like units, padlocked… in some godforsaken concrete lot. Many of the new storage centers here are different.” –>

Arizona Court of Appeals halts remodel of Chinese Cultural Center in Phoenix. “A three-member panel of the Arizona Court of Appeals on Thursday reversed an order from a lower court that would have allowed construction on the center.” In this AZCentral report, Jason Rose, spokesman, supplies the JUICY QUOTES. Here are a few: “I’m the PR guy, not the lawyer, but even I can read what happened today… The Court of Appeals merely maintained the status quo until they have a chance to rule… We respect the legal process, and fully hope and expect that it will respect private-property rights.” 

South Mountain Freeway 35 percent done, on track to open next year.What does that actually mean, though… “35 percent done”? According to this KTAR report, it means that “crews have installed eight miles of drainage pipe, moved 3.6 million cubic yards of dirt and used 2,900 tons of recycled steel” with work “currently underway in all but one section of the 22-mile stretch.” Tap through for an ADOT/Connect 202 Partners UPDATE on “the construction plan for the first half of 2018.”

Pinal County RTA pushes for implementation of half-cent sales tax. (Disclosure: Rose Law Group represents a coalition of property and business owners throughout Pinal County working to bring new transportation infrastructure to the county.) “A joint-litigation attorney for Pinal County Regional Transportation Authority wrote a letter to the Department of Revenue on Wednesday asking when and how the voter-approved [Prop. 417] half-cent sales tax will be implemented.” (It’s kind of important since it’s “the funding mechanism for countywide road improvements, including the widening of State Route 347.”) When is a response expected? Find out, plus learn about some of the “challenges to RTA planning” and see what Maricopa Mayor Christian Price says is “throwing things out of whack” at InMaricopa.

5 things you need to know about planned 272-acre Gilbert Regional Park.• What the first phase will include • When the park is expected to open • How much the park is going to cost • What private-public partnerships could exist • What residents want. And here’s ONE MORE thing “you need to know” • You can check out the planned park RIGHT NOW in a nearly 4-minute, fly-over, virtual tour at AZCentral!

Casa Grande not abandoning Life on Main project. The project “hasn’t been forgotten, although progress has slowed,” reports Casa Grande Dispatch. “Life on Main is a conceptual idea to revitalize several properties that the city owns. Plans call for a mixed use area roughly between Main Street and Second Avenue and between South Marshall Street and a parcel adjacent to South Katherine Street.” More about on the project, plus conceptual drawings showing “the area of the proposed Life on Main” and “the types of mixed land uses that might be possible if a private investor wants to help.”

HUB CAPPED – Flagstaff council fast-tracks anti-Hub zoning changes.“The Flagstaff City Council wants the transect zoning districts remapped, and they want it soon before another Hub comes along.” Arizona Daily Sun has full details on the “remapping process,” including a “proposed overlay for large-scale high occupancy developments [which] shows where such developments would be deemed acceptable.”

Phoenix City Council’s 2018 legislative update. “Council gathered Tuesday for a budget and legislative update to weigh the impact of state and federal bills on the city of Phoenix.” Downtown Devil has the rundown — bills that “staff considered to negatively impact the city’s core principles,” as well as those that “staff identified to advance the city’s core principles.”

Scottsdale State of the City illustrates municipal musings of success.“Throughout his 90-minute delivery, [Scottsdale Mayor Jim Lane] touched on the economic bedrock of tourism [the Barrett-Jackson Collector Car Auction and spring training] while showcasing the municipality’s effort to broaden its economic horizons beyond resort lifestyles [e.g, the transformation of Fashion Square and continuing growth of Cure Corridor].” BTW, that’s NOT to say that Mayor Lane has anything at all against “resort lifestyles” — far from it, it seems — because the mayor delivered his annual address before a crowd of 500 — where? Scottsdale RESORT at McCormick Ranch! Full coverage in Scottsdale Independent.

Glendale will profit nearly $2.5M from Camelback Ranch deal. Assistant City Manager Jack Friedline: “Glendale owns certain property (two parcels) near Camelback Ranch and are exercising our option to purchase (two more parcels) and sell them to Camelback Ranch Spring Training LLC.” The Glendale Star. 

Big fight pits Legislature vs. universities over real estate deals, tax breaks. “The measure, House Bill 2280, comes in response to the $928 million saleof the Marina Heights development in Tempe. The 2-million-square-foot office campus sits on land owned by the Arizona Board of Regents [which] isn’t subject to the same property taxes as private property.” And that doesn’t sit well with Republican State Rep. Vince Leach who is not only “running HB 2280,” but is “also sponsoring other bills aimed at property tax breaks…” PBJ (Subscriber Content).

Dealmaker BONUS: Oldest school in Arizona gets a major makeover.“More than a century after the Washington School opened its doors to pioneer children ready to learn how to read, write and perform arithmetic, the two-story downtown brick structure has a new look. Thanks to a renovation of close to $400,000, the beloved, historic school will become a district show piece, a hub of learning and administration, according to Prescott Unified School District leaders.”The Daily Courier.

Cameron’s $5M + deals of the day –

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

House shoots down Shooter, expels its member. “The Arizona House… voted… to expel Rep. Don Shooter… for what investigators found to be his serial sexual harassment… Speaker J.D. Mesnard… originally was going to punish Shooter… with censure, [but a] letter Shooter penned to his colleagues Thursday morning was the tipping point for Mesnard.” (Also in Arizona Capitol Times: “Shooter reaches deal to dismiss charges stemming from his behavior at a school.” And AZCentral has this: “Lawmaker calls for more investigation into lobbyist’s ‘sexually explicit communications.’ ”)

SUPPORT THE TROOPS! WAIT, WHAT? – Tax-break proposal for veterans falls a vote short in Senate. “Sponsored by Sen. Gail Griffin, SB 1167 would have increased a tax exemption for military retirement pay to $6,250 in 2018 and $10,000 by 2019, up from the current $2,500 exemption… Three Republicans, along with 10 Democrats, voted against the measure…” Arizona Capitol Times.

Yarbrough bill to curb private school tax credits called a ‘wolf in sheep’s clothing.’ “Senate President Steve Yarbrough’s SB1467 would phase down a 20 percent annual increase in the cap on a corporate tax credit for School Tuition Organizations, or STOs, that provide scholarships to help cover the cost of private school tuition.” But Arizona Capitol Times Ben Giles reports, the proposal “also expands access to those scholarships in ways that makes public school advocates wary.”

Is Joe Arpaio the next Roy Moore? As the subhead for this story in POLITICOmakes quite clear: “He’s got money, charisma and a presidential pardon. Now he thinks — and local Republicans fear — he can win the GOP Senate primary in Arizona.”

Poll shows Lesko, Monenegro tied in GOP primary for Franks’ seat. “A new poll of the heavily GOP Congressional District 8 shows it is a two-candidate race between Debbie Lesko and Steve Montenegro. The two leaders are tied with 21 percent apiece in the latest OH Predictive Insights poll.” Arizona Daily Independentlooks at “how the top candidates stack up and the changes since the last poll conducted on December 11th, 2017.”

Insiders say no, certain outsiders say yes to raises for legislators. An Arizona Daily Sun report on Rep. Bob Thorpe’s “proposal to increase the pay of the state’s 90 state senators and representatives” and how the legislation “has support from some of his strongest critics.”

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Trophy High Rise in Phoenix’s Central Corridor Sells for $80.7 Million Read more

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Greater Phoenix industrial vacancy drops to lowest level in 10 years Read more

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February 2018