The Phoenix market continues its winning streak. New reports show that the market is seeing increasing land values and that residential and commercial construction are forecasted to increase in the second half of the year. The new supply is not expected to affect pricing, which has also been increasing steadily, but this is becoming a market to watch. In Orange County, industrial leasing is up for ecommerce users and 3PL companies. On the deal side, this was an active week with several substantial closings throughout the Southwest market, but still with a strong concentration in Phoenix. Here's a look at this week's trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.

BY THE NUMBERS

PHOENIX—The pace of land sales in greater Phoenix increased in the first half of the year. The price of land rose during the first half of the year with the median price reaching $4.10 per square foot. This is up 12% from the median price in 2016. Price gains were strongest for parcels intended for commercial and industrial uses.

Sales of land parcels intended for residential development accounted for more than half of the total land transactions so far this year. Approximately 22,000 single-family permits are forecast to be issued in 2017 and approximately 7,000 multifamily permits are expected. Home prices in both the new and existing categories increased year-over-year to $310,000, up 3% from the first half of 2016. The number of new homes sold in the first six months is up more than 25% from the same period last year. Construction of new units is gaining momentum with approximately 3,300 units coming online during the first half of this year and another 12,000 units under construction. The Greater Phoenix land market is expected to remain active for the remainder of 2017 and an increase in development activity is anticipated. Demand for housing is increasing as a result of population growth. The area expanded by approximately 93,000 residents in 2016, posting the most robust growth of any county in the country. Population growth is expected to expand by more than 100,000 residents per year, further fueling demand for single-family and multifamily housing. Continued strength in the commercial market will motivate more land sales for development and expansion of business properties.

(SOURCE: COLLIERS INTERNATIONAL)

ORANGE COUNTY—Over the last 24 months, 1.7 million square feet of Orange County's warehouse and distribution space has been leased up by e-commerce and 3PL companies, with nearly 50% of all e-commerce leasing activity occurring

in North Orange County. The consumer shift to online shopping has expanded opportunities for the e-commerce industry. As demand increases for faster and more convenient delivery, being located near consumers becomes more vital for e-

commerce and 3PL companies.

(SOURCE: JLL)

DEALTRACKER

NEWPORT BEACH, CA—Newmark Knight Frank has completed the $59.8 million sale of 4400 MacArthur, a nine-story, class-A office building totaling 156,310 square feet in Newport Beach, CA. The property, which is located within the master-planned Koll Center Newport, is 92% leased by multiple tenants including Bank of the West and Fidelity National Title Company. NKF's Capital Markets President, West Coast Kevin Shannon, Senior Managing Director Paul Jones and Director Blake Bokosky represented the seller, an East Coast-based pension fund advisor. The buyer, a joint venture between Greenlaw Partners and Hilrod, was self-represented.

SANTA MONCIA—3002 Main Street, a 4,350 sq ft retail/gym building in Santa Monica has traded hands for $7.3 million. The sale price set a record for price per square foot for any transaction ever on Main Street in Santa Monica. Evan Pozarny, EVP of Muselli Commercial Realtors represented both the unnamed buyer and seller. The building was delivered vacant and the new ownership plans to

occupy the entire building.

CARMEL, CA—Block 70 on Ocean Avenue in Carmel by the Sea has traded hands for $10 million or $806 per square foot. The purchase price equated to a 4.2% cap rate with upside since the building is 42% vacant. The property is approximately 12,334 square feet and is anchored by Tommy Bahama. Even Pozarny, EVP of Muselli Commercial Realtors represented the unnamed exchange buyer. Michael Schoeder, Don LeBuhn, and Dan Wald of Cushman and Wakefield represented the seller.

PHOENIX—Avis Foothills Health Center, a two-building, 53,310-square-foot medical office property in the Ahwatukee submarket of Phoenix, has traded hands for $12.1 million. Avison Young's Nicholas Pelusio and Kevin Helland, a SVP and senior associate, respectively, in the company's Phoenix office, represented the seller, United Insurance Company of America. Newmark Knight Frank represented the buyer, Crescendo Development. Located at 4510 and 4530 E. Ray Road and situated on 8.35 acres, the single-story buildings total 45,130 square feet and 8,180 square feet, respectively, and are 93% occupied. The larger building was developed in 1994 and was refurbished in 2000 and is occupied by several healthcare tenants. The smaller building was developed in 2002 as a build-to-suit for its current tenant, Triple R Childcare.

SAN DIEGO—Shea Properties has signed seven new tenants to Mercado del Barrio, the mixed-use center located under the Coronado Bridge in the heart of Barrio Logan. The new tenants include Actitude Cerveceria, Barrio Bros, Oi Asian Fusion, Partners Personnel, Pho Bo, Taqueria Revolucion and Posh & Polished Nail Lounge. Anchored by a 36,000-square-foot Northgate Market, one of the nation's leading Hispanic markets selling day-to-day grocery items and prepared foods, Mercado del Barrio's current tenants also include Mariscos el Pulpo, Little Caesars, T-Mobile, Asia Wok, Fade Factory, Iron Fist Brewing Company, National Laundry & Dry Cleaning, Sally Beauty and Tocumbo Ice Cream & Tortas.

PHOENIX—Dunbar CBC, LLC, an affiliate of California-based Dunbar Real Estate Investment Management, has sold Cabot Business Center for $11.4 million. Kidder Mathews commercial real estate brokers, Darren Tappen, Peter Beauchamp, Aric Adams, Mike Kasulaitis, and Matthew Ault, represented Dunbar CBC, LLC in the transaction. The five-story, 109,805 square foot, multi-tenant industrial/flex business center is located at 3802-3922 E University Drive in Phoenix, Arizona. The buyer was Nicola Crosby Real Estate, a subsidiary of Nicola Wealth Management Ltd, a real estate asset management company, based in Vancouver, British Columbia, that acquires and manages properties for the SPIRE Real Estate Portfolios. This is SPIRE US LP's first acquisition in the Phoenix market.

LOS ANGELES—Lion Real Estate Group, a real estate investment and development firm focused on value add and opportunistic multifamily and creative office properties, announced today that it has sold a 36 unit apartment community located at 5100 Maplewood Avenue in Los Angeles, California. A Los Angeles-based private investor acquired the property for $8 million. Lion Real Estate Group acquired the property in 2013 for $4.65 million. Following the acquisition, the company's renovation included new exterior and interior paint as well as upgraded interiors and landscaping. Tom Jonsson and Will James of CBC Advisors represented Lion Real Estate Group in the sale.

PHOENIX—Litwin Management, a full-service property management company, has purchased Laveen Village Marketplace for $14.2 million from Passco Cos. Kidder Mathews commercial real estate broker, Jenette Bennett, represented Litwin Management in the transaction, along with Patrick Luther of SRS in Los Angeles. Laveen Village Marketplace is located at Baseline Road and 51st Avenue in Laveen, Arizona. The 56,747 square foot retail center, is anchored by Fry's Food & Drug and Home Depot.

PHOENIX—Perry Investment Trust No. 1, LLC, has acquired two Phoenix-area retail properties totaling 18,456 square feet. Barry Gabel and Chris Marchildon with CBRE's Phoenix office represented the buyer in both transactions. The two properties, located at 950 E. Bell Road and 5120 N. Central Avenue, sold for $11.1 million. Built in 2017, the high-profile infill mixed-used development at 950 E. Bell Road features 12,087 square feet of retail space. The 100-percent leased center includes national tenants Café Rio, Smashburger, Blaze Pizza and the Flame Broiler and local tenants La Vie En Nail Spa and Arizona Hair Co. Total consideration for this property was $6.6 million. The seller was represented by Chad Tiedeman and Steve Underwood with Phoenix Commercial Advisors. Located in a highly desirable central Phoenix location, the 6,369-square-foot retail pad at 5120 N. Central Avenue sold for $4.5 million. Originally constructed in 1975 and completely renovated in 2016, the two-tenant property is 100-percent occupied by Blaze Pizza and MAD Greens, both on long-term leases. The seller was also represented by Chad Tiedeman with Phoenix Commercial Advisors.

BUILDING BLOCKS

SALT LAKE CITY—KTGY Architecture + Planning has unveiled the preliminary design for a new mixed-use development that was selected as part of Salt Lake City's plan to revitalize its downtown core developed by The Domain Companies, one of the nation's leading real estate investment and development firms specializing in sustainable mixed-use development, and the GIV Group, which combines a non-profit and entrepreneurial approach to community development. Called The Exchange, the design envisions a pedestrian- and transit-oriented mixed-use district focused on innovation and includes “startup” micro-unit apartments, business incubator space, creative office space, affordable and market-rate apartments and ground-level retail and restaurant space. The new development is located on two city-owned sites on 2.24 acres at 320 East 400 South and 338 E. 400 South. The parcels include the old five-story Barnes Bank building and the two-story Salt Lake Roasting Company directly north and east of the city's public safety building, and a 25,000-square-foot surface parking lot. The current design includes a total of 412 mixed-income residential apartment units, with unit sizes ranging from 325 square feet for the micro-units up to 1,294 square feet for a three-bedroom apartment home. The plan also includes 20,240 square feet of retail and restaurant space and 30,741 square feet of office space.

BY THE NUMBERS

(SOURCE: COLLIERS INTERNATIONAL)

commerce and 3PL companies.

(SOURCE: JLL)

DEALTRACKER

occupy the entire building.

BUILDING BLOCKS

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