3rd Quarter 2006 Urban Phoenix Newsletter

September 19, 2006

Dear Friends,                                                                                                                                              

If you haven’t heard the news lately, the new ASU downtown Phoenix Campus is off to a good start.   ASU officials wanted 2500 students to start classes at the new ASU Downtown Phoenix Campus on August 21st and instead had 5000 students.   As I was driving around downtown Phoenix the week before classes started and I noticed students and parents walking around trying to determine where everything is, and what a great site to see!  People actually walking around downtown Phoenix for other reasons than work.   My downtown Phoenix office is on Roosevelt just west of 7 th Street and Jude and I both were thrilled to notice more ASU looking students walking by this week, their presence is another reason why downtown Phoenix will foster a diverse urban lifestyle.  

As for downtown Phoenix in general, have you noticed all the cranes?   I haven’t seen this many cranes in Phoenix except for that 4 th Grade field trip to the Phoenix Zoo.   I won’t tell you what year that was.   Off the top of my head I’d say there are about 6 cranes, if you know of more forgive me for not driving around more to count.   I do expect more in the next year as other downtown Phoenix projects get off the ground.

The Valley Metro Light Rail is well underway and if you’re smart you’re staying off of Central Avenue in downtown Phoenix if possible.   Lately I’ve been using 3rd Street and have gotten pretty good at figuring out where to turn west to get to my target on Central Avenue. The first Valley Metro Light Rail tracks have been installed along Central Ave between Monroe and Van Buren Streets; that was a great milestone to see.   There should be major construction on the Valley Metro Light Rail through 2007 and continue through mid-2008 so stay clear if you can.   We all should be able to start riding the Light Rail by December 2008.  

                A lot of people have been waiting for Arizona home prices to drop and many buyers I talk to say they are waiting to buy because they know the prices will come down.   I’m not sure what crystal ball they are looking in but the Arizona Republic reported on June 30th that prices have gone up and gone up rapidly in some cases depending on your Arizona zip code.   85020 had the largest increase of up almost 21% since 2005, and some downtown areas went up just over 11%.   Some areas did go down like 85044 (Ahwatukee Foothills area) is down 11%.   Look at the chart below from the National Association of Realtors for a nationwide overview.   The best thing to do if you’re buying or selling an Arizona home contact Jude or me, we’ll determine if the values in the area you live or are thinking of living are on the upswing or the downswing and help you make a better decision.  

                Speaking of swinging, Arizona commercial real estate has been on the upswing.   Arizona commercial real estate vacancy rates are down and asking prices are up.   Commercial real estate vacancy rate was 4.99% in July, the lowest on record.   Arizona commercial real estate sking prices have gone up in some metro Phoenix areas from $19 per square foot to over $21 per square foot. I see the low commercial vacany rate and the modest price increases in Arizona commercial real estate as generally a good thing for the economy overall in metropolitan Phoenix.  

                If you’re not doing anything on Saturday, September 30 th, consider coming downtown for the Urban Affair downtown living tour, an urban living tour of downtown Phoenix Arizona. Urban Affair downtown living tour is the first-ever life and style event celebrating downtown Phoenix's diverse urban living.   At the Urban Affair downtown living tour you’ll have the opportunity to interact with Phoenix's premier loft developers, urban architects and urban `interior designers; check out the best furniture, accents, electronics and fine art; sample wine and culinary delights and much more.   Urban Affair will be from 10am to 5pm in the Phoenix Convention Center’s new West Ballroom at 100 N. Third Street.   Tickets are $25 in advance and $30 the day of the event.   More information at www.UrbanAffairAZ.com . There will also be a Loft & Home Tour from 10am to 4pm.   The homes on tour will be chosen by a volunteer committee of top Interior designers, architects and artists.  

                We hope summer has been nice for you and you’ve taken a little vacation to relax.   When you’re in the area please stop by our office on Roosevelt and say hi, and of course if you, your friends or relatives need to sell or buy an Arizona home anywhere throughout the Valley of the Sun, we are ready and able to help.

Best Regards,      

                                                           

Pinal County , Arizona, was third with a 10.2 percent increase, but another Arizona county, Maricopa, recorded the largest numerical increase of any U.S. county; it added 52,000 homes during the 12 months, a 3.7 increase.

You may have read in the Arizona Republic on May 31 st the Hotel San Carlos downtown Phoenix will be renovated with a high-rise hotel including a virtual-reality water park, shark aquarium, sports bar and spa, all built atop this historic downtown Phoenix hotel! Wait, put down the beer and fishing pole; I talked to a member of the Melikian family that owns the Hotel San Carlos downtown Phoenix and he didn’t seem to think that it was every going to happen.   He felt it was a developer with grandiose ideas who wanted some publicity and got it.   For now, let’s enjoy the history the Hotel San Carlos has and be happy it wasn’t demolished in the 1970’s like so many of our historical buildings were.

What’s new in the downtown market?   One of the most innovative architect firms in the valley in years, [merz]project. Founded in 2004 by Joe Herzog and Chris Nieto, [merz]project , is an architecture and urban design collaborative that specializes in both commercial and residential projects.  One of their most exciting current projects is The Beacon Building (pictured right) located at 18 th Street and Washington, in an area of Phoenix that Mayor Phil Gordon coined the “Opportunity Corridor”.   The design of The Beacon Building by [merz]project pushes the relationship between its occupants and the multiple modes of transportation that will exist at the street front. Whether via foot, bicycle, automobile, or train, each passerby will experience the 30' glass atrium space of The Beacon Building that confronts the streetscape at a distance of only 12' from the curb.   The Beacon by [merz]project is a building that addresses the community as much as the client's aspirations. It is intended to be the first of many new projects in the area and it will set the precedent for all future development along the light rail line.   RooPho Realty currently has the Beacon Building listed for sale .   Call Jude or Chris at 602.224.0554 for more information.

The Biltmore Fashion Park (pictured left) is in the middle of Phase 1 of their renovation.   A complete redesign of the exterior of the Biltmore Fashion Park is expected to be completed by November 2006.   Located in the Biltmore Phoenix area of Phoenix, Phase 2 of the Biltmore Fashion Park has proposed plans to introduce mixed-use, high-rise developments to the center through residential, hotel or office components.

 

Artisan Homes sold to Engle Homes last year and in the deal Eric Brown of Artisan is helping with one last project, Artisan Haus.  Artisan Haus will be located next door to Artisan on Central and promising to have all the amenities and style that Artisan Homes has offered in their other projects.   Artisan Haus will be a mixed-use building with retail on the first floor, live / work units on the second floor and 80 homes in total. Floor plans at Artisan Haus range from 1200 to over 1600 sq ft and have 1 bedroom to 2 bedrooms plus a den.   Prices at Artisan Haus are expected to be announced soon so contact Jude or Chris for more information or check out www.RooPhoRealty.com

The developers of SkySong, the ASU Scottsdale Innovation Center, have proposed new designs for the project’s residential component with a cutting-edge style consistent with the technology-focused commercial buildings already in development.   Located at Scottsdale Road and McDowell the plans show an apartment community consisting of 325 one- two- and three bedroom floor plans ranging in size from 551 to 1583 sq ft.   The residential portion wraps around and entirely conceals a 1000-space parking garage.   SkySong currently has 320,000 sq ft of office research and retail space underway with the first phase scheduled to open in the Summer of 2007.

If you haven’t been to www.RooPhoRealty.com lately, check out what’s new.   Jude has completed a major overall of the functionality of the website to help you find available homes faster and easier.  Choose “Condos/Lofts/ Highrises” from the home page, the area of the Valley you’re interested in, then choose from dozens of new construction, condo conversions as well as existing complexes.  Once there, choose “Inventory” and see all the units currently on the market in that neighborhood.   You can also choose “Availability” and fill out a form that will be e-mailed to us and we’ll get back to you as quickly as we can.   This is a great way to keep an eye on the market in the area you’re interested in. Give it and try and call us with any questions or suggestions. Jude’s next project will be to add "Inventory” links to the Historic Districts.

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