Tag Archives: Phoenix metropolitan area

rsz_countryclubgreens

68-Unit Apartment Community in Mesa Sells for $4M

 

 

Cassidy Turley completed the sale of Country Club Greens, a 68-unit apartment community on 2.4 acres at 350 W. 13th Place in Mesa for $4M.

The buyer was Clear Sky Capital CCG L.P. of  Phoenix and the seller was California Bank & Trust. Executive Vice Presidents David Fogler and Steven Nicoluzakis with Cassidy Turley Arizona’s Multi-Family Group brokered the transaction.

Built in 1986, the property has nine one bed/one bath and 59 two bed/two bath fully remodeled rental units that include new energy efficient appliances and upgraded kitchen and bathroom cabinets.

The complex also has a swimming pool and spa and on-site leasing office. Country Club Greens is located one mile south of the Loop 202 on Country Club.

In other news, Cassidy Turley completed a 2,800 SF lease for Voxpop, the shopper marketing radio network, at 2141 E. Camelback Rd.. Justin Himelstein and Jason France with Cassidy Turley Arizona’s Office Tenant Representation group represented Voxpop.

The marketing company relocated from an office at University and 35th St. to the Camelback Corridor submarket. Judith Tucker with Camroad Properties represented the landlord, Two Corners Financial Group, LLC.

Voxpop began in 2003 in Mexico and is the largest in-store marketing radio network reaching more than 40M people in more than 1,800 stores. In 2009 the company expanded its operations in the U.S.

The company currently has partnerships with retailers in Arizona, Texas and California, including Arizona-based Bashas’, AJ’s Fine Foods and Food City locations. Voxpop is a strategic messaging company that started by providing background music for stores and grew into providing targeted advertising and marketing messages for grocery customers.

The client list includes national companies such as Nestle, Coca-Cola, Tyson, General Mills and Kraft.

Arizona Commerce Authority

Arizona Commerce Authority Is Tasked With Re-Invigorating The State’s Economy

As Arizona enters 2011, unemployment continues at about 9.5 percent, and according to one national ranking of commercial real estate site selectors, Arizona’s reputation as a business-friendly state continues to slide. That’s where the newly formed Arizona Commerce Authority comes in.

“It’s not about re-branding, and it’s not about a committee,” says Don Cardon, ACA president and CEO. “This is about a plan that has the governor involved. We want to significantly advance Arizona’s economic future into a pronounced global competitive position.

“This is not about politics or any industry in particular. It is how we distinguish Arizona within a global market,” Cardon adds. “The competitive nature of global markets requires the state’s absolute focus and collaboration with private-sector partners to achieve growth and diversification of the economy.”

Gov. Jan Brewer took steps to accelerate the ACA’s mandate at the board’s second meeting. Besides officially naming Cardon head of the ACA, Brewer vowed to work with the state legislature to finish “re-creating the authority as a streamlined, modern organization that unleashes the most innovative minds in the business community.”

In outlining some of the details of her economic development plan for Arizona, Brewer touched on three items:

• Creating a “deal-closing fund’’ for the government to provide cash to companies willing to expand or relocate here.

• Expanding the tax credits available to corporations that conduct research and development in Arizona.

• Eliminating capital gains for investments made in small businesses.

Putting Cardon in charge of the ACA is the first step in implementing that plan. He will lead the organization, which will focus on attracting new businesses and retaining existing businesses that create more high-wage, quality jobs.

“My intention was to return to the private sector. However, Governor Brewer and Mr. (Jerry) Colangelo convinced me this is the most critical time for Arizona,” Cardon says. “Since the Governor has allowed me to assist her in designing the road map we are pursuing, I realized this was a unique time in life where my continued involvement may be best concerning all the ACA is aggressively endeavoring to achieve.”

“Don Cardon’s work with me in restructuring and revitalizing the new Commerce Authority has been groundbreaking,” Brewer says. “His credibility in the arena of business and industry is essential to our success in advancing Arizona’s economy.”

In an executive order last summer, Gov. Jan Brewer established the 35-member, statewide ACA to replace the Arizona Department of Commerce. The ACA is led by a private-sector board that will work to align diverse assets and opportunities within the state in order to compete economically in both domestic and international markets to create high-quality jobs for Arizona residents.

In picking a board vice chairman, Brewer reached out to one of the Valley’s most successful and visible businessmen, Jerry Colangelo. Under Brewer, Cardon and Colangelo, the ACA will have a focused approach to four core areas on which to advance the state.

The ACA will work on improving the state’s infrastructure and climate to retain, attract and grow high-tech and innovative companies. The focus will be on aerospace and defense, science and technology, solar and renewable energy, and small business and entrepreneurship.

At the board meeting, committee reports detailed sustainable strategies that will help Arizona compete globally.

• Focus on science, technology, engineering and math in K-12 education.

• Focus on the innovation cycle to grow knowledge-based businesses.

• Develop toolbox and retain policy enablers for capital intensive industries to encourage high-wage employers to invest in Arizona.

• Make positive changes to Arizona’s regulatory environment.

• Foster collaboration that enables development of Arizona’s small-business community within the industry sectors.

• Enhance the ACA’s industry sectors by establishing the leadership required to connect all stakeholders, companies, universities, private-public partnerships and other organizations.

“During one of the most challenging economic conditions in our nation’s history, we are fighting for the health and future of our families and this state,” Colangelo says. “It’s also about business retention … to put everyone in the position where they can be successful. Let the people who know how to do these things take charge.”

Adds Joe Snell, president and CEO of Tucson Regional Economic Opportunities (TREO): “The ACA needs to work with the state Legislature to ensure that we have the tools and programs needed to compete with other states. Arizona desperately needs a competitive jobs bill that must address incentives.”

Creating jobs and attracting new businesses are at the top of the ACA’s list. While there are projections that Arizona will add more than 400,000 jobs by 2018, about 300,000 will be needed just to make up for those lost since the recession began in December 2007. Not helping matters is the state’s murky business climate.

The Pollina Corporate Top 10 Pro-Business States for 2010 ranks Arizona the 27th friendliest state for business. Arizona was a Top 25 state in 2004 (15th), 2005 (20th) and 2006 (25th). It dropped from the Top 25 in 2007.

In Site Selection magazine’s poll of state business climates, however, Arizona climbed to No. 17. Two major announcements at the end of 2010 helped buoy that ranking: pharmaceutical giant Roche Group’s expanded operation at Oro Valley-based Ventana Medical Systems (500 new jobs in biomedical research) and Intel Corporation’s announcement that it was upgrading and adding jobs at its facility in Chandler.

“The ACA brings a much-needed public/private partnership to lead the state in these difficult economic times,” says Don Keuth, president of the Phoenix Community Alliance. “They can address those issues that make Arizona less competitive and create strategic solutions to allow us to compete. And, they can focus on growing those industry clusters where we have a competitive edge.”

The renewable energy bill passed by the Legislature in 2009 demonstrates that economic development programs can immediately impact an industry cluster.

Case in point: Arizona is leading the country in the creation of new solar jobs. Recent examples include Rioglass Solar, a Spanish company, building a $50 million reflector manufacturing plant in Surprise; and China-based Suntech selecting Goodyear for its first manufacturing plant outside of that country.

“We need a broad vision to accept that new rules and new tools will be needed,” says board member Mo Stein, principal and senior vice president of HKS Architects, whose company designed the Valley’s newest spring training facility, Salt River Fields at Talking Stick. “It is no longer business as usual; not the same questions and certainly not the same answers.”

For more information about the Arizona Commerce Authority, visit azcommerce.com.

Globe, International Business Growth in Arizona

New Group Aims To Boost International Business Growth In Arizona

Most Arizona legislators and business leaders now recognize the value of international commerce to the state. It hasn’t always been that way, but today there is broad agreement that exports from Arizona and foreign direct investment into Arizona from around the world create jobs and community growth. After all, 95 percent of the world’s population is outside the U.S., along with 70 percent of the world’s purchasing power. Why not tap into that power?

Arizona has made relatively slow progress with international trade compared to states such as California and Texas. Those states have each made greater per capita investments to encourage local companies to export and foreign companies to invest locally. Arizona is ranked in the bottom of U.S. states for foreign direct investment — No. 31 — according to the U.S. Department of Commerce. This creates an excellent opportunity for improvement.

With exports, the picture is a little better. Arizona businesses have done a reasonably good job of selling their products overseas. Exports from Arizona-based companies increased to $19.2 billion in 2007, contributing to good job and tax revenue growth. These figures rank Arizona as the 17th leading state for exports.

People all over the world know about the Grand Canyon, but few know about businesses within Arizona. Exports can help build global awareness of Arizona businesses, making the state a more viable candidate for foreign investment. That’s important because foreign companies investing in Arizona pay higher wages than local companies, and with today’s sputtering economy, the state’s economy needs all the help it can get.

According to the Greater Phoenix Economic Council (GPEC), if Arizona could increase foreign direct investment to be the 17th ranked state as it is with exports, it would attract 84,000 more jobs and $12.5 billion more in capital investment. How’s that for an economic shot in the arm?

“We need investment to capture strategic industry growth for Arizona, like Germany-based solar companies,” says Rod Miller, vice president of international economic development for GPEC. “In the current environment, increasing our investment in economic development initiatives will support a quicker and stronger economic recovery.”

Miller’s data shows a return in capital spending and taxes of as much as $110 for every dollar spent attracting companies to Arizona. GPEC is making progress despite Arizona’s low per capita investment. The good news is that many know what’s needed. The bad news is that Arizona, like other states, faces a challenging budget crisis.

It has been against this backdrop of both opportunity and challenge that the Arizona International Growth Group (AZIGG) was founded in 2007. AZIGG was created to provide a place for Arizona-based business owners to gain all the international information and connections they need to be successful overseas. Each of the existing business-support organizations has a piece of the international puzzle, but none has a full view of importing, exporting, international company attraction and international company retention. AZIGG brings it all together, including forums to attract and retain foreign companies.

AZIGG has quickly attracted more than 1,000 members from the Arizona business and business-support community. The group meets monthly to hear international business speakers and discuss ways to help Arizona-based businesses to export or to attract foreign direct investment.

AZIGG encourages cooperation between local international business and cultural groups, including the consulates, the Department of Commerce, GPEC, other city economic development resources, the Phoenix Committee on Foreign Relations, the World Affairs Council of Arizona, financial institutions working with the U.S. Export-Import Bank, trade associations such as the Arizona Technology Council, and international business service providers such as accounting, insurance, marketing and legal firms. AZIGG allows each resource to address the group monthly to keep business owners aware of the most recent ideas, news and opportunities.

In the same spirit of cooperation, the global law firm Squire, Sanders & Dempsey is stepping forward as the first business sponsor for AZIGG. This month, the firm is hosting the AZIGG International Business Fair at its law offices in Downtown Phoenix in order to make local businesses aware of all the services available for companies to grow internationally. Arizona and Arizona-based businesses need to be especially creative to compete against other states for opportunity dollars.

AZIGG encourages both government and private business actions to grow international development. Monthly meetings feature Arizona-based entrepreneurs such as Lee Knowlton of Kahala Corporation (which owns Cold Stone Creamery), Colin Christie of MX Secure and Omar Sayed of Succeed Corporation, all of whom are pioneers for Arizona in connecting their companies to the global market place. Similarly, global service firms such Squire, Sanders & Dempsey show leadership to help others succeed internationally.

Business owners now have more choices with less risk to grow their businesses internationally. Their success ultimately will result in a more balanced and sustainable economy for Arizona. Besides AZIGG, the U.S. Commercial Service’s Export Council and foreign consulates are available as resources to Arizona-based business owners. Additional resources are available on the AZIGG Web site, in AZIGG monthly meetings and as part ofthe AZIGG International Business Fair.

Besides international sales growth, there are other initiatives that all residents of Arizona can support to create a more level playing field for companies based in Arizona. They include:

  • More direct international flights to Sky Harbor International Airport.
  • Sending a clear message that Arizona is a state open to legal immigration.
  • Improving education from below average to above average in the U.S.
  • Providing tax incentives to attract capital-intensive industries.
  • Supporting international sales with education and infrastructure to increase exports.


Doug Bruhnke is president and founder of the Arizona International Growth Group (AZIGG) and CEO and founder of Growth Nation. For more information, visit www.azigg.com

Dark Days: Recession in Arizona

The Recession In Arizona And The Nation Could Drag On For Another Year

Winters in Arizona may be sunnier than other places, but the economy in the Grand Canyon State has cooled faster than almost every state. Analysts expect 2009 to bring even more bad economic news, and it is likely that the monthly reports on job growth and unemployment will be downright chilling for some time to come.

As in all downturns in the past 50 years, Arizona’s economy will track the national business cycle. There are no forces inherent in the makeup of the state’s economy that would propel Arizona into an independent turnaround. Arizona will recover at approximately the same time as the country as a whole.

And, entering 2009, a rebound for the national economy is nowhere in sight. The National Bureau of Economic Research recently decreed that we have been in recession since the end of 2007. Now that a start date has been identified, it is only natural to wonder how long recessions typically last. The answer is that the average post-World War II recession has been 10 months from peak to trough. This information is perhaps useful for trivia buffs, but in the current environment, the 10-month average is not much of a guideline. This recession has already persisted past 10 months, and may be well on its way to setting a post-war record for length. The recession will certainly be 18 months at a minimum, and could persist for as long as 24 months. Or more.

The list of economic problems facing the country and Arizona continues to grow. Until recently, exports and non-residential building were actually expanding at a double-digit pace, keeping the Gross Domestic Product growth figures in the positive region. As the global economy slows, exports will decrease, probably early in 2009. Arizona has important manufacturing exports, especially in high technology, that will be affected.

Non-residential building (commercial, office, and warehousing) will grind to a halt in 2009 as current projects are completed. When the economy is losing jobs and sales are falling, there is no need for additional offices, retail space or warehouses.

During the first half of 2008, consumers in Arizona and the nation continued to spend, and that bolstered growth. New unemployment claims were mounting during this period, but conditions would have been worse if consumers were not contributing to the economy. The credit crunch hit in the second half of 2008. Combined with a chaotic stock market and continually falling home values, consumer willingness — and ability — to spend hit the breaking point. Arizona retail sales were down sharply in 2008, with auto sales and restaurant and bar sales both off by 25 percent. Consumer spending is expected to fall more during the early months of 2009.

Compared to other states, Arizona’s labor markets are in the deep freeze. Employment in the state is down by more than 75,000 jobs compared to last year at this time. Arizona is just one of 37 states now losing jobs, but conditions are worse here. Arizona ranks 49th among all states in job growth. Only Rhode Island is losing jobs more rapidly. Unemployment rates nationally and in Arizona are destined to increase into the 7 percent or possibly 8 percent range before recovery begins.

And recovery will come, as it always does in business cycles, although this one will be deeper and longer than has been seen since the 1930s. Housing inventory will eventually be worked off, and foreclosures will begin to slow. Home prices will stabilize. The nation adds three million new residents per year, and the pent-up demand created by family formation and population growth will start to translate into new sales.

Arizona benefits from high levels of domestic migration. Even if migration slows temporarily in the down period, the basic attractions of Arizona remain powerful in the longer term.

One of these attractions for many decades has been affordable housing. During the housing boom, home prices in Phoenix increased faster than in many peer metropolitan areas, and Phoenix became less competitive to relocators. Although falling values have caused dismay to Arizona home owners, the resulting new lower prices actually create an environment for ultimate growth.

The table shows housing affordability as measured by the National Association of Homebuilders. Higher numbers indicate housing is more affordable. At the end of the previous recession (third quarter of 2001) Phoenix had an affordability value of 70, which means 70 percent of homes were affordable to families at the median Phoenix income. Phoenix housing was more affordable than the nation and the peer metro areas shown. Two years later, at the peak of the boom, Phoenix was less affordable than Denver, Riverside, Calif., and the nation as a whole. But the most recent values, for third quarter 2008, show Phoenix affordability up by 75 percent over the 2005 figure, and more affordable than the other metro areasandthe nation. The Phoenix housing advantage has been restored.

There is one final optimistic observation to be made, one which is familiar to Arizona economy-watchers. When recovery does begin, Arizona invariably rebounds much stronger than the nation, and more vigorously than most other states. What analysts are still debating is whether this rebound will come in 2009 or is delayed until early in 2010.