The number of single-family permits was down almost 35 percent from 231 in September and down more than 45 percent from 245 in October 2007. The last time the number of permits was this low was 128 in February 1991.
“When I saw the permit volume for October, I was truly concerned about the homebuilding industry and its ability to survive ,” said John Strobeck, owner of Bright Future Business Consultants. “The total for 10 months of the year is now 2,791 and at the current rate, we will be fortunate to hit 3,100 permits in 2008.”
 The new Fire Station 376 in the Golden Ranch Fire District is now complete.Courtesy of Breckenridge Group |
“Currently, the two biggest factors contributing to the low volumes of home building are the number of homes in inventory and the decrease in the rate of population growth in the Tucson metro area,” Strobeck said.
New construction home closings rose in October to 315 – the highest level yet in 2008. Closings were up nearly 21 percent from 261 in September.
Through October, there have been 2,824 closings in 2008.
Strobeck said this makes 33 more closings than permits through the first 10 months of year, which indicates there was some carryover from 2007.
“This is not a good sign for volumes in the first part of 2009 as permit volume is falling and slight growth in closings means very few carryovers,” Strobeck said.
There were 915 resale closings in October, down four homes from 2007 and down 104 from September. Of the resale homes, 240 - or 26 percent - of them were foreclosure sales.
For the year so far, there have 1,598 foreclosure sales, representing 16 percent of the total market, Strobeck said.
Tucson Hotel and Suites near complete on changes
Sage Hospitality is at the finish line of $3.5 million of renovations at Sheraton Tucson Hotel & Suites, 5151 E. Grant Road.
Renovations include the convention and meeting spaces, lobby, a café featuring Starbucks coffee, a fitness center and a new restaurant Fire + Spice.
“The Sheraton restoration takes advantage of the strong layout of the hotel while transforming it to meet the expectations of today’s most sophisticated travelers,” said Walter Isenberg, president and chief executive of Denver-based Sage Hospitality. “The Sheraton Tucson provides an outstanding hotel experience through its new design savvy, combined with thoughtful guest services and amenities.”
The Fire + Spice Grill, the second Arizona location for the restaurant, features an indoor/outdoor bar that creates an open-air atmosphere. Fire pits act as focal points in the outside seating area.
The 13 meeting rooms use a desert-themed color palate and feature up-to-date technology and equipment. A new ballroom is also currently under construction.
All renovations are scheduled for completion by February.
Sage and Investcorp Real Estate Group acquired the 216-room Sheraton in December 2007.
Ross leases space for new store in Campbell Plaza
Ross Dress for Less signed to lease for 30,187 square-feet in Campbell Plaza, at the northeast corner of Campbell Avenue and Glenn Street. The store, due to open in either late 2009 or early 2010, will the off-price retailer’s ninth location in the Tucson market.
“Campbell Plaza continues to benefit from its location close to the center of town and the University of Arizona,” said Mike Perlman, senior vice president at Holualoa, which is a part-owner of Campbell Plaza. “Retailers are attracted to this area due to its well established customer base, which is supported by strong sales numbers from our existing tenants.”
Nancy McClure and Shannon Murphy of CB Richard Ellis represented the landlord, Camelback Corporate Center Joint Venture LLC, a joint-venture of Holualoa Arizona and Phoenix-based Pacific Ridge Properties. Ross, based in Pleasanton, Calif., was represented by Jayme Fabe of Bourn Partners.
TMC and Picor do deal for real estate services
Picor Commercial Real Estate Services will handle real estate property management and brokerage services for Tucson Medical Center HealthCare.
Eileen Lewis, director of Property Management and Picor principal, will be responsibility for the property management services for a portfolio of non-core real estate assets consisting of approximately 1.97 million square feet. Chuck Holden of Picor will be the on-site property manager, working at an office at Tucson Medical Center, 5301 E. Grant Road.
Rick Kleiner and Tom Knox, both principals of Picor, will be responsible for brokerage services at Tucson Medical Park and Atrium Office Building along Grant Road near the hospital, the El Dorado Health Campus, 1400 N. Wilmot Road; and other real estates owned by TMC.
“By relying on Picor’s expertise to manage our properties, TMC can focus on its acute-care operations,” said Michael J. Duran, vice president and chief development officer for TMC HealthCare. “The hospital’s realty assets are a valuable resource for TMC to help support our mission, with proper management.”
Golder Ranch Fire Station complete in Oro Valley
Breckenridge Group, 700 N. Stone Ave., has completed Golder Ranch Fire District’s Fire Station No. 376 at 10475 N. La Cañada Drive, Oro Valley.
The six-bed station has 7,202 square feet with three apparatus bays and cost about $2.3 million. Money for the project comes bonds approved in 2004 by voters in the Golder Ranch Fire District.
Historical Society selects architect for new museum
The Arizona Historical Society selected Fentress Architects, Denver, as the designer of a new Arizona History Museum. Fentress will work with Breckenridge Group, 700 N. Stone Ave., on the project.
A site for museum hasn’t been selected yet. The design process is anticipated to take a year. It’s estimated the museum will cost about $50 million to build.
Worth noting
• GRG Precision Properties LLC, purchased the property located at 8480 and 8500 S. Old Nogales Highway, consisting of two 5,000 square-foot buildings on 48,787 square-feet of land, from Sumac LLC. Chuck Blacher of Tucson Realty & Trust Co. represented the seller in the transaction.
• Fidelity National Title Insurance leased 10,118 square feet of office space at Nova Financial Center, 6245 E. Broadway, from Tucson Broadway Office Plaza LLC. David Montijo of Bourn Partners LLC and Tom Imparato of Orion Realty Group finalized the lease transaction.
• Waddell & Reed Inc. leased 3,258 square feet of office space at Nova Financial Center, 6245 E. Broadway, from Tucson Broadway Office Plaza LLC. David Montijo of Bourn Partners LLC represented the landlord. William E. Early of First Scout Realty Advisors Inc. represented the tenant.
Submit items for this column to Joe Pangburn at jpangburn@azbiz.com. Real Estate & Construction appears weekly.
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