Sunday, December 7, 2014

Mobile Home Park Sales are Hot

Manufactured Housing Communities Sales are a Strong Investment!

Sun Communities just completed a 31 Community acquisition for $524 million!

Sun Communities completed the first of 2 closing for the acquired assets. Sun Communities expect to acquire the remaining manufactured housing communities from GCP at a second closing in January 2015
Sun Communities, Inc. is a real estate investment trust, or REIT, that currently owns and operates a portfolio of 215 manufactured housing and recreational vehicle communities comprising approximately 78,400 developed sites.  

 The communities included in both closings comprise over 19,000 sites in eleven states, including nearly 11,000 sites located in Florida. Over 14,000 sites, or 73%, of the portfolio are age-restricted.  In connection with this transaction, the Company assumed GCP's right to acquire an additional manufactured home community pursuant to a binding purchase agreement. 

Peterson Commercial Group Specializes in the Sale and Acquisition of Multifamily and Manufactured Housing Communities. Call 520-477-7350 or email us at for a confidential discussion

To read the full article Sun Communities 31 Park Acquisition

Friday, November 14, 2014

Apartments for sale in Tucson and Arizona following National Trend

Apartments for sale in Arizona are following the national trend in vein that they are out pacing every other Commercial segment in CRE. With higher valuations and lower CAP rates than the other segments we are still seeing a high volume of transactional real estate in the Multifamily sector. Nationally we are seeing cap rates trending down with Apartments just under 6% nationally.
Now that the Federal Reserve has officially shut down its quantitative easing program, current financing rates are low but subject to change. 

With office and apartments combined representing nearly 60% of the dollar volume, CRE sales reached $97.5 billion in the third quarter of 2014, up 11.6% Y-O-Y. cites investor confidence in US real estate amid global geopolitical risks and the tenuous economic situation in Europe.

Follow this link to a great article on Commercial real estate’s Risk Premium outlook. CRE Risk Premium

If you are looking to acquire Commercial Real Estate as part of your portfolio of investments Peterson Commercial Group represents clients in the acquisition and disposition of Multi family properties Nationally. Call us for a confidential discussion.

Thursday, November 13, 2014

1031 Exchange Rules for Investment Properties

A 1031 exchange, also called a like-kind exchange or a Starker, is a swap of one business or investment asset for another. Peterson Commercial Group specializes with clients in using this investment tool to increase portfolio's. 
Do it right, and there is no tax. You change the form of your investment without cashing out or paying tax. And like a 401(k), that allows it to continue to grow tax-deferred.
There is no limit on how many times you can do a 1031. You can roll over the gain from one piece of investment real estate to another, then another and another. You may have a profit on each swap, but you avoid tax until you actually sell for cash. But be careful and do it right.

We work with investors every month that have a need to purchase or sell an investment property and using a 1031 exchange or a reverse 1031 exchange is an AMAZING tool to defer capital gains. There is no limit on how many different 1031 exchanges a person can do. 
If you would like the specific rules on 1031 exchanges please contact us for more information.

Tuesday, November 11, 2014

Outlet Malls in Tucson Breaks Ground - Marana

Last Friday the Simon Property Group broke ground in Northwest Tucson on a 366,000 mixed UASE commercial development.

Tucson Premium Outlets will be the anchor for 170 acre mixed use commercial project on the south side of Twin Peaks Road , Linda Vista Blvd and I-10. Vintage Partners are the developers on the project and are projecting a completion date in the fall of 2015!

The Tucson Premium Outlets will have a food pavilion as well as specialty shops for apparel, shoes and accessories. Home furnishings and leather good retailers are included on the development.

The project will bring 90 retailers into the area and create economic development through the creation of over 800 full and part-time positions.

Wednesday, November 5, 2014

Commercial Real Estate Tucson AZ and Solar Energy-on fire?

With Tucson having sunshine more days per year than just about any other major city in the U.S. One would think we would be more proactive for Solar Energy, what is stopping this industry from expanding in Arizona? The entry of the solar energy industry in Arizona could directly benefit employment and create healthy competition for energy companies who monopolize over the market. Creation of new competition will in turn drive prices down for consumers. Further expansion and strengthening of the Arizona economy first requires taking steps in allowing new industry to form, solar energy creates that opportunity.

As our country continues to explore alternative natural resources for energy where are we going currently with Solar energy?

Do you think we are ahead or behind the curve with Solar energy?

Check out this article  

 Solar Energy In Tucson- On Fire?

Wednesday, October 29, 2014

Tucson Commercial Real Estate is trending with National

CRE Transaction Rise 16% in First Half of 2014

CHICAGO—You don’t have look far or very hard for an indicator that the commercial real estate industry is thriving. CMBS is on track for $100 billion in issuance this year; multifamily continues its momentum; crowdfunding is reaching levels unexpected by even its most ardent fans.
But one indicator – transaction activity – inarguably trumps them all. Here, too, though, it is clear that CRE is trending high.
"Transaction activity continues to be the highlight of this CRE recovery, with solid growth in both primary and secondary markets" writes Bob O’BrienDeloitte’s Chicago-based global and US real estate services leader, in the company's recently-released"2015 Commercial Real Estate Outlook."
"In fact, capital availability is increasing competition as both domestic and international investors show significant interest in CRE as an asset class. Consequently, asset pricing continues to show sustained growth."
It is, in other words, a virtuous circle for the industry.
US CRE transaction volume grew 16.4% year over year in the first seven months of 2014 to $204.2 billion. This activity was driven primarily by REITs and international investors.
For the first half of 2014, REITs and cross-border investors transacted $16.5 billion and $7.8 billion, respectively, Deloitte said.
Scratching underneath those figures also reveals more details about where the industry is trending right now.
For example, it is not just publicly-traded REITs buying and selling assets now but also their non-traded counterparts. Further, secondary markets have seen a strong pick-up inactivity across property types, as investors seek opportunities in markets less competitive than the primary gateway markets.
Also, the hot asset class in terms of transaction growth was not multifamily but retail, which posted a 40% growth in property sales for the first seven months of the year. Companies are repositioning portfolios by divesting under-performing assets and reinvest the proceeds in updating existing centers to attract new tenants and improve customer traffic," Deloitte explains.
Apartment sales, by contrast, "seem to have cooled off a bit, being the only property to register a sales decline during the same period," it said.
Asset prices, not surprisingly, are moving in tandem with this activity; according to GreenStreet Advisors’ Commercial Property Price Index, they rose 6.2 % in the first eight months of 2014. Cap rate compression across property types continues to drive higher asset prices, Deloitte also says.
Expect more of the same in 2015, Deloitte concludes. "Overall, transaction activity will likely continue to rise in 2015 with improving fundamentals and easier capital availability," it says.
Washington, DC reporter Erika Morphy goes deep inside the DC power scene to explore the link between Capitol Hill and your assets. Erika Morphy has been a financial journalist for 20 years. She’s been covering the capital markets for ALM since 2004. Contact Erika Morphy.

Saturday, October 25, 2014

10 trends in Commercial Real Estate

Commercial real estate in Arizona and commercial real estate at the national level are seeing similar trends.   Check out this intriguing article about trends that are developing in commercial real estate.  Seeing the shift in the multi family the last couple years is being followed in the office segment.   10 Trends in Commercial Real Estate

Tuesday, October 14, 2014

Apartment Completions in Top 100 Metros at 14-Year High

Apartments for Sale in Arizona and Multi-family Housing is heating up in 2014. Long term stabilized returns are driving the demand for Apartment acquisitions for astute investors.

By Joshua Ayers, Senior Editor
Carrollton, Texas—Apartment completions in the nation’s top 100 metros reached the highest levels in 14 years in the third quarter at 66,813 units, and pushed the annual completion total so far to 226,615 units—also a 14-year high—according to information released by MPF Research.
“The wave of new supply coming for the past year or two now is beginning to crest,” says Greg Willett, MPF vice president. “The timing looks right for this cycle, as the job production needed to stimulate household formation also has gained some momentum this year.”
The volume of completions did not outpace demand for new supply, as third quarter demand finished well-above completion levels at 78,971. Annual demand is hovering just below 255,000 units, and with 387,397 units currently under construction, Q4 completions are anticipated to deliver about 90,000 units, which will put the total annual completions somewhere near 258,000 units.
There’s a strong appetite for rental units,” Willett says. “While the economy isn’t performing at ideal levels, there’s enough momentum to stimulate significant growth of renter households. The overall performance numbers in the apartment sector are also being helped by the limited number of first-time homebuyers. Loss of apartment residents to purchase remains at a trickle.”
Both occupancy and effective rents continue to climb as well—a trend that will likely continue. Occupancy was up 10 bps in the third quarter, and 30 annually, to 95.7 percent, marking an improvement of 0.1 percent from Q2 2014 and 0.2 percent from Q3 2013. Effective rents for new leases across the top 100 metros climbed 1.3 percent during the third quarter, with annual rent growth pace moving up 3.7 percent. Annual rent change in the top 100 markets is up 7 percent with Class B assets showing the highest increase around 4 to 5 percent. Both Class A and Class C assets were up about 3 percent and rent growth in new products was up about 1 percent.
In individual metro areas, Las Vegas entered the top-10 list for rent growth, tying with Houston at 4.6 percent. The top metro for rent growth was Oakland at 9.1 percent, with Denver-Boulder and San Jose I ranked in a close second at 9.0 percent.
“Las Vegas is a newcomer to the list of rent growth leaders,” Willett says. “The performance seen over the last couple of quarters is a dramatic shift from earlier results, since Las Vegas previously was one of the country’s laggards for rent growth. Job production and apartment occupancy now are improving rapidly in Las Vegas, and pricing power is returning in the apartment sector. In the big picture, however, this one still has some work to do. It’s the only big market in the nation where today’s rents still trail pre-recession prices.”

Saturday, October 4, 2014

Apartments for sale in Arizona

Even as interest in other commercial sectors starts to gain momentum, investors still see upside in multifamily, according to a recent survey of real estate executives from the consulting firm KPMG.
Despite oversupply fears in certain markets, 53 percent of respondents said they expect a “significant amount” of new development to launch, which is up from last year’s 43-percent in last year’s survey. Somewhat surprisingly, 5 percent of respondents expected no construction activity in multifamily (that number was at 11 percent last year). Hospitality was second with 34 percent of respondents expecting significant activity (up from 18 percent in 2013).
“As U.S. job growth has recovered slowly, the multifamily sector has benefited from new household formation—for example, young people moving out of parents’ homes and into rental apartments—as the economy has started to improve,” KPMG said in the report. “Many household members fared badly during the recession and are unlikely to be homebuyers again anytime soon. They may also be deterred by today’s stricter mortgage guidelines or driven by the need for easy mobility to take advantage of career opportunities.”
Forty-eight percent of survey respondents saw the most opportunity for commercial real estate investors in the Southeast. That was followed by the Southwest (33 percent) and the Midwest (31 percent). The Southeast and Midwest saw significant increases from the 2013 survey.
“Respondents’ selection of the Southeast as the region of greatest potential for real estate investment may come as a surprise because this was one of the regions that suffered the most during the housing crisis,” the report said. “Recently, however, housing prices continue to rise across Florida and construction is booming again in Miami, signaling a welcome rise in demand. A manufacturing boom is also underway in the Southeast and the United States overall.”
If you are looking to Buy or Sell a Multifamily Investment anywhere in the United States Peterson Commercial Group would enjoy having a confidential conversation about your Real Estate needs.

Sunday, August 10, 2014

Commercial Real Estate Development Arizona

Arizona town to get solar wind energy towerFirst Solar Wind Tower in the World to be built in Arizona.

The small Arizona border town of San Luis will be the site of the first Solar Wind Energy Tower installation in the world.

The $1.5 billion project would generate electricity through the use of ambient desert heat that passes through a concrete structure its proponents say would be the tallest in North America.
Solar Wind Energy Tower is buying 640 acres, the tower and its associated facilities will only cover a fraction of that space.
“Besides the tower, there would be a guard house, personnel and administration building, a water retention pond, a maintenance facility and relay stations for the power,” Pickett said. “We expect to be generating on an annualized basis more power than the Hoover Dam currently generates — more than 4 million megawatt hours.”
A series of pumps deliver water to the tower’s injection system at the top where a fine mist is cast across the entire opening. The water introduced by the injection system, Pickett said, then evaporates and is absorbed by hot dry air which has been heated by the sun’s solar rays.
The result is the air becomes cooler, denser and heavier than the outside warmer air, and falls through the cylinder at speeds up to and in excess of 50 miles per hour. This air then is diverted into wind tunnels surrounding the base of the tower where turbines inside the tunnel power generators to produce electricity. Hoover Dam currently generates — more than 4 million megawatt hours.”
“We considered areas of the world where the tower would be most efficient,” he said. “We require very hot and arid areas, such as parts of the Mideast, northern Africa and the U.S. Southwestern desert, which is one of the driest areas in North America.”
Pickett said his company was able to access a decade of weather data gathered by the U.S. Department of Defense for strategic reasons — a database that had hourly data at different elevations — and take that information to build a picture of what happened month to month over a ten year period.
“We then knew how to predict almost exactly what the tower would do in that area, so San Luis became the prime place in North America for the tower,” he said.
:source Inside Tucson Business

Wednesday, August 6, 2014

Tesla to Tucson? City of Tucson has your building permit ready!

Tucson Commercial Real Estate update for this week is all about Tesla Motors! Tesla is looking for commercial development opportunities for a 5 million square foot facility.

The permit is for a one-story building of up to 5 million square feet in size at an address “to be determined.” It was issued by the city of Tucson development services department.

Tucson is in the running with several different cities for the location.   The company has said the factory would employ about 6,500 people. Cities in California, Nevada, New Mexico and Texas also are finalists.

Currently it looks as if Reno is a top runner as well. 

The release of the Building permit was a clear sign that Tucson wants the business and understands that this would be one of the major economic developments for the city in over 30 years. 

Tesla based out of Palo Alto California is looking to build the Gigafactory and have site selection completed this year and have battery production in place by 2017. 

The overture of the City of Tucson issuing the permit was a clear signal to Tesla that our local government is in support and will not tie the company with red tape!

Congrats to the City of Tucson, our economic development and job growth is imperative for our City and economy to grow and maintain a healthy heartbeat.

Friday, August 1, 2014

Commercial real estate sales in Tucson is impacted by Commercial Loans and availability

Commercial real estate sales in Tucson is impacted by Commercial Loans and availability.  Up over the Quarter relatively flat on Year over Year!

Commercial loans rise sharply in Q2, down year over year

Commercial originations rose 34 percent in the second quarter but are down 2 percent year over year primarily because of drop off in retail, multifamily and office loans, the Mortgage Bankers Association (MBA) reported in its quarterly survey.
“Year-to-date borrowing by commercial and multifamily real estate owners is running at the same pace as last year,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, in a news release.  “Low interest rates and improving property fundamentals are prompting borrowers to act, but the relatively low volume of loans hitting maturity is checking overall demand.”
MBA reported that retail and multifamily are down 10 percent each compared to Q2 2013, while office originations have declined by 6 percent. That was offset by a 20-percent increase in industrial loans, a 45-percent increase in hotel property loans and a 95 percent increase in health care property loans.
Among investor types, life insurance and Fannie Mae-  and Freddie Mac-loans decreased  by 13 percent as compared to Q2 2013, while commercial bank portfolio loans and CMBS loans jumped 19 percent and 45 percent, respectively, MBA reported.

Questions? Contact Victor Whitman at (425) 984-6017 or

Tuesday, July 29, 2014

Grand Opening Tucson Dance Studio!!!

New Commercial Space Tucson !  
Tucson Grand Opening for Dance Studio!!
  New Business in the Foothills

Tucson Streetcar opening weekend

Tucson Commercial Development continues as the new Tucson Streetcar is completed and more than 60,000 riders took part of the opening weekend here in Tucson. 

As downtown continues to grow infrastructure and accessibility in connecting the University of Arizona, downtown and the Fourth street business district continues to expand.
To ride the streetcar here are few things to aware of :
Tickets may be purchased at Sun Link Stop Vending Machines. The 4-mile streetcar route features 23 streetcar stops.
The machines sell only 1-Day SunGo Tickets ($4 each). Customers must use exact change, or Visa or Mastercard only to purchase tickets. Purchase instructions are available in English, Spanish, Audio and Braille. The 1-Day SunGo Ticket is good from 24 hours, once activated, on Sun Link, Sun Tran and select Sun Shuttle routes.
No cash will be accepted once you board the streetcar. Passengers must have a pass or cash value loaded on a SunGO product when they board. Additional fare information is available at

Monday, July 28, 2014

Tucson Commercial Real Estate Happenings

By George Avalos
Contra Costa Times
POSTED:   07/25/2014 03:54:54 PM PDT8 COMMENTS| UPDATED:   3 DAYS AGO

Customers leave a Safeway store on March 5, 2014 in San Francisco.
Customers leave a Safeway store on March 5, 2014 in San Francisco. (Justin Sullivan/Getty Images)

PLEASANTON -- Safeway shareholders on Friday approved the company's $9.2 billion sale to Albertsons, a deal that comes amid fierce competition for the combined supermarket chains from a host of foes.
About 96 percent of the outstanding shares of Safeway were voted in favor of the merger at a meeting at Safeway's headquarters in Pleasanton.
The deal still needs to clear a review by the Federal Trade Commission, which could require Safeway, or Albertsons, or both, to divest some stores for competitive reasons. But Safeway spokesman Brian Dowling said, "We don't expect any stores to close as a result of the transaction."
Safeway has 251 stores throughout the Bay Area and Northern California, while Albertsons doesn't have any in the Bay Area, according to the websites of the two retailers.
"Safeway is a much stronger name in Northern California," said David Livingston, a Milwaukee-based retail analyst. "Safeway tends to do much better than Albertsons, which was doing poorly before this."
If any stores are closed, they are likely to be in Southern California, where Safeway brand Vons operates. Albertsons has about 181 stores in that part of the state, while Vons has 279.
"Albertsons is a very important, major player in Southern California, and you might see an overlap there with Vons," said Robert Reynolds, a Moraga-based retail analyst.
The deal will create a network of more than 2,000 stores, 27 distribution facilities and 20 manufacturing plants with more than 250,000 employees. Safeway operates 1,330 stores and Albertsons has 600-plus stores, according to the companies.
The combined Safeway and Albertsons supermarket chain will be slightly smaller than Kroger, the largest grocery retailer in the U.S., which has 2,600 stores.
Several Safeway executives will enjoy big paydays as a result of the transaction, according to proxy materials distributed for the meeting.
CEO Robert Edwards will receive $25.3 million in merger-related compensation, as well as a $4 million severance package, and former CEO Steven Burd will receive $7.5 million in stock.
It's unclear how the merger will impact Safeway's popular loyalty card program, which provides discounts to repeat customers.
"The loyalty card program is a cornerstone in how Safeway presents itself in the Bay Area," Reynold said. "Safeway's overall pricing strategy is very dependent on the loyalty cards."
The combined Safeway and Albertsons will face stiff competition.
"Wal-Mart and others will continue to push into the market," Livingston said. One shareholder who attended the meeting, James Patterson of San Francisco, said he hopes the new supermarket company will lean heavily toward the Safeway model for how the stores will operate.
"The Albertsons stores that I have visited in Southern California are very small, cluttered and claustrophobic," Patterson said after the meeting. "The Safeway stores are a very good shopping experience. They are open and very inviting."
Contact George Avalos at 408-859-5167. Follow him at