Ryan's Blog

Why The Fannie Freddie Bailout Will Fail - The Next Great Depression Has Arrived!

Ryan Charleston (Urban Realty & Development) — Wed, 10 Sep 2008 02:54:55 -0500

It's somewhat disheartening and depressing to post this, but it's the sad and honest truth. There's seriously something wrong with our financial markets today and at the root we have the collapse of Freddie Mac & Fannie Mae - The largest corporations on the face of the Earth!!! - There is a storm brewing and THIS folks may be the calm before the storm. It seriously makes me think twice about my future, my career, and much more!

Read this article and if you can grasp the concept of what just happened this week and if you can understand the complexities of the issue at hand regarding Fannie and Freddie you'll probably be just as worried as I am...and rightfully so.

The saga is just unfolding, but as this article suggest along with many more articles, commentary, analysis, and research I've dug up indicates, this very well may be the tipping point that sends the United State of America into another Great Depression....only this time it could be much worse and last much longer!

I hope and pray I am wrong and there some "plan C" lurking out there in the financial waters, but at this point it doesn't look promising!

Why The Fannie-Freddie Bailout Will Fail
by Martin D. Weiss, Ph.D. 09-08-08

http://www.moneyandmarkets.com/issues.aspx?Why-The-Fannie-Freddie-Bailout-Will-Fail-2199

Housing Will Hit Bottom June 30, 2009!

Ryan Charleston (Urban Realty & Development) — Thu, 28 Aug 2008 16:00:17 -0500

The economy will never recover if housing doesn’t find its footing first. But when will that happen? Cramer (of MadMoney) said he expects a bottom by the third quarter of 2009.

This is somewhat entertaining, but also very informative and I happen to agree with Cramer on a few major talking ponits! Although housing as an industry may bottom, specific neighborhoods and communities may rebound or show signs of recover sooner. In any case, you've gotta sit down and watch this video when you get 10 minutes!

http://www.cnbc.com/id/26406036

DO NOT DO BUSINESS WITH REPLY! REAL ESTATE

Ryan Charleston (Urban Realty & Development) — Fri, 08 Aug 2008 13:04:42 -0500

Following up with another post I made a few days ago reagarding Reply! Real Estate / Reply! Inc. regarding how bad their leads are, now come to find out they are even bigger slim-balls then I previously thought. They ended up charging my credit card for the bad leads that they orginally promised they wouldn't charged me for if they were no good, and if I had cancelled my account within 48 ours or before the end of July.

Now, frusrated, and furious, I see two charges totaling $138.85 for three leads that were garbage! They specifically stated that if they were not good leads I could either recieve replacement leads or cancel my account and not be charged anything further than a $2.90 prorated account fee.

So basically Reply! Real Estate / Reply! Inc. sole money from me - They charged me unauthorized and it makes me made! PLEASE DO NOT DO BUSINESS WITH REPLY! REAL ESTATE. It is not worth the hassle. I hope they go out of business and we as Realtors can see to it that they do by simply not buying their product full of hype and lies!

You can bet on it that I will be sending a letter to the Arizona Association of Realtors, the Scottsdale Association of Realtors, NAR and the Arizona Dept. of Real Estate regarding this lead generation company!

Misspelled and Missing Communities - The Lofts at Orchidhouse!

Ryan Charleston (Urban Realty & Development) — Mon, 04 Aug 2008 15:13:00 -0500

Well, I just bought the Downtown Tempe, Tempe Town Lake, and Centerpoint Condominium Community Pages on Localism.com, but I hesitated in purchasing a couple other communities because the names were misspelled! Perhaps by another Realtor who isn't as familiar or focused with Downtown Tempe. For instance, there was "Bridgeview at Hayden Ferry" and "Hayden Ferry High Rise Condominiums" which are both WRONG!!! They should actually be appropriately named "Bridgeview at Hayde Ferry Lakeside" or just simply "Hayden Ferry Lakeside" to cover both Bridgeview and Edgewater Condominium Towers. Also there was "Brownstones of Tempe" which should be appropriately named "The Brownstones at Hyde Park".

To my amazement The Lofts at Orchidhouse doesn't even exist in the community list. Thus, I wrote this post! :0)

Sorry Tom, beat you to it! :0/

Mortgages Limited gves Avenue Communities more funding for Centerpoint

Ryan Charleston (Urban Realty & Development) — Mon, 04 Aug 2008 11:20:20 -0500

We'll, here's a little followup article regarding the two Centerpoint Condominium posts I made recently. Looks like they'll at least stablize the project for now until the additional funding comes in. I do not expect there will be a problem in getting additional funding from another entity, but it could be a while. Even in the worst case senario where Mortgages LTD disapears or is disolved completely and all their assets sold off in a fire sale and Avenue Communities does not get fiancing to finish the two Centerpoint Towers, another entity would come in take over the project at a much lower basis and the either the prices of the units would drop significantly or they would be luxury rentals temporary (good for potential homebuyers and/or retners) and life will go on! I don't think it will come to that. Avenue Communities will most likely finish at least the high-rise towers and selling the remaining units and/or rent them out temporarily until the real estate market comes back.

Mortgages Ltd. to offer Tempe development more funding

Bankrupt real-estate lender Mortgages Ltd. is working on a plan to provide more financing to the developer of the Centerpoint condominium towers in downtown Tempe.

About $4.5 million in initial financing would allow Avenue Communities LLC to protect the partially complete high-rises from rain, wind and other external elements, according to Carolyn Johnsen, Mortgages Ltd.'s attorney.

Such a move would protect the value of the asset for both the developer and investors who gave Mortgages Ltd. the money to lend to the project.

Centerpoint is one of several Valley real-estate developments financed by Mortgages Ltd. Construction on some projects that have stopped since the Phoenix-based firm was forced into Chapter 11 bankruptcy in June.

Work on the two Centerpoint towers never fully stopped, but slowed, according to developer Ken Losch.

Avenue Communities received about $120 million of a $150 million loan commitment made by Mortgages Ltd.

Losch, who declined through a spokesman to comment for this story, has said he needs $75 million to finish both towers.

Read full article on AZCentral.com!

Avenue Communities Suing Mortgages Ltd over Centerpoint Condominium Towers

Ryan Charleston (Urban Realty & Development) — Fri, 01 Aug 2008 11:52:57 -0500

Avenue Commmunities, the developers of the massive Centerpoint mixed-use project in downtown Tempe are not going to wait any longer for additional financing while its primary lender on the $200 million project while they work their way through Chapter 11 bankruptcy.

Ken Losch, principal of Avenue Communities LLC, said about $24 million in liens have been filed on the project by unpaid subcontractors. Ken said he has numerous lenders who want to help finish Centerpoint, contingent on Avenue Communities working out a settlement with Mortgages Ltd. That likely will require the beleaguered Phoenix commercial real estate lender to subordinate its two existing loans totaling nearly $132 million.

We'll see what happens here. I just had a conversation about this project yesterday with Steve Betts and we both agreed we want to see this project move forward and be completed so they can start selling again and/or temporarily start renting the units. It's a beautiful structure with amazing views and it need to move forward for the sake of Downtown Tempe!

http://www.bizjournals.com/phoenix/stories/2008/08/04/story1.html#1

Avoid Lead Generators Reply Real Estate, RECR, etc.

Ryan Charleston (Urban Realty & Development) — Thu, 31 Jul 2008 16:43:56 -0500

Well, I guess the saying "you live, you learn" can be applied to anything, but over the last couple months I've given a couple lead generating companies a chance and have learned my lesson. I've tried them in the past and had no success, but thought I'd give them a another chance and play the numbers game. All it takes is 1 lead to pan out and result in a closing and you have a return on your investment. However, my advice based on my experiences the past couple months with ReplyRealEstate.com and RECR.com was not good. There are probably more out there like them that I'm not mentioning, but, these are the two I worked with recently and had no luck! Nothing! Absolutely NOTHING!

They must all get their leads from the same place, because they look strikingly simiar in format. Almost all the leads were from areas outside the teritories I signed up for even though the salesperson on the phone was claiming she had a lead imediately available to send my way the was qualified and looking to purchase property in my definied niche area (Downtown Tempe). The truth is many of them you can't even get a hold of - these "leads" rarely answer their phones or respond to e-mail.

Also, the leads these companies send you are typically from people with fair to poor credit which is basically a dead lead in todays market. They're also looking for ridiculous if not impossible deals such as a 4 bed/3 bath in Scottsdale for $120,000 or a 3 bedroom / 2 bath condo in South Tempe or Chandler for $100,000 or less. These leads are unrealistic. You can't get a foreclosure or a short sale for that price! Plus, if I happened to find those types of properties for that cheap I would buy them myself!

So, lesson learned... stick with personal referrals, old-fashion netowkring, and netoworking through your websites, blogs, and social netoworks.

My advice, avoide ReplyRealEstate.com and RECR.com!

I would be interested to hear if anyone else has had similar experiences!

Downtown Tempe Centerpoint Towers become Communication Towers!

Ryan Charleston (Urban Realty & Development) — Thu, 31 Jul 2008 15:18:24 -0500

The communication towers that have topped "A Mountain" for more than 60 years soon will be moved to Tempe's tallest building.

Hayden Butte, also known as "A Mountain," looms over Sun Devil Stadium. For decades it had on its summit communication dishes and towers used by Tempe fire, police, city services and the Salt River Project. Phoenix has similar equipment atop South Mountain.

In 2005 when Avenue Communities principal Ken Losch was seeking permission from the Tempe City Council to build four high rise condominium buildings just off Mill Avenue in downtown Tempe, it was pointed out by city officials that the proposed structures would block communication signals from the equipment on the butte.

Losch got permission to go forward with his Centerpoint Condominiums project, but it was stipulated that he would allow the communication equipment to be moved to the top of the tallest of his buildings.

Read Full Article!

Demand for Urban Living due to high gas prices!

Ryan Charleston (Urban Realty & Development) — Thu, 31 Jul 2008 14:42:26 -0500

More and more people are taking what is perhaps the ultimate step in cutting gas prices...

They're moving!

A national trend of high gas prices playing a major role in where people choose to live. Factors like distance from work, access to public transportation, and proximity to shopping are gaining ground on square footage and whether or not the home has a yard and pushing people into more densely packed urban areas!

Read The Full Article at Yahoo!

This is just the beginning of a major trend, one that I spotted some years ago and a big reason why I decided to focus on urban real estate instead of the suburban stuff which many real estate professionals were drawn to like flies on you know what! Gas prices aren't going anywhere but up so its good to start seeing more of these articles being printed in the media. Public awareness is key! I believe we're on the bring of major cultural shift in the way people live, where they live and how they transport themselves from place to place in America - Almost a total redefinition of the "American Dream". The current one has major flaws which are obvious when gas prices push through $4/gallon and everyone is panicking! Urban living is the next big thing, no doubt! Once the real estate industry as a whole gets back on track look for urban living, downtown redevelopment, infill development, mixed-use, TOD, TND, high-rise, and mid-rise condominium and loft developments to lead the way!

Remember... "Life is in the Heart of the City!"

Urban Living is the New American Dream!

Ryan Charleston (Urban Realty & Development) — Thu, 31 Jul 2008 14:40:05 -0500

The American Dream is definitely evolving! This article today definitely caught my eye and I had to post it and comment!

Read The Full Article at CNN.com!

I must say it's kind both eerie, but vindicating at the same time to see these types of articles in the media now! I've been discussing this issue with people for a long time now (my good friend Nate Bettini, well, he's talking about this a lot longer). The suburbs will be your slums of the future! A whirlwind of several factors including generational and demographic preferences and lifestyle changes, environmental concerns, energy prices, and inflation and more are now converging to put urban living in the limelight as the new (preferred) way of life in America! These outer lying suburbs and exurbs are death-traps in my opinion right now and will continue to get worse! They'll be a few diamonds in the ruff, but most will not survive! All those vacant homes, half-built homes, empty lots, and abandon foreclosures and short-sales are going to be picked up by investors who will then rent them out or be bought by low-income people, naive first time home buyers and immigrants. Crime rates will undoubtedly go up due in part by the infrastructure, segregated zoning layout, and car dominated culture of suburbia. Places that are really nice today, may not looks so nice in 30 years! The the past 60 years have been characterized by the movement of wealthy and upper middle class people moving to master-planned communities in the suburban fringes, the NEXT 60 years will be a reversal! High-Rise urban luxury and downtown city living on Main street!

Downtown Tempe Real Estate, Urban Living & Development Video

Ryan Charleston (Urban Realty & Development) — Tue, 03 Jun 2008 20:16:39 -0500

Here's the 1st video in what I plan will be a series of videos on downtown areas. First let's start with Downtown Tempe, Tempe Town Lake and the sights of Mill Avenue! I titled this one Imagination Tempe partly because that's the name of the track playing in the background...a great hit off the In Search of Sunrise 6 (Ibiza) album from Tiesto!

As always, feel free to comment and give feed back and if you need help finding a place to live in Downtown Tempe just give me a call at 1-877-977-UREV [8738] or e-mail me at ryan@urev.net!

And the winner is RealBird.com!

Ryan Charleston (Urban Realty & Development) — Tue, 25 Mar 2008 02:04:40 -0500

So after extensive research and analysis as to which RELSP (real estate listing syndication platform) I would be using in conjunction with my new website UREV.net...I have chosen RealBird.com. I looked at Postlets, VFlyer, and Point2NLS, and others, but I settled on RealBird because I felt it fits my business model and branding identity much more than others. I love the duel use of Google Maps and Microsoft Virtual Earth. It's a very streamlined service that screams web 2.0 like none other and fits weill within my marketing strategy. All the syndication partners such as Google Base, Trulia, Zillow, Oodle, Vast, Edegio, and others are all automatically feed with your listings. It also supports and provides the ability to push your listings into social networking sites like Facebook and Myspace as well as a variety of social bookmarking websites like Del.ico.us, Digg, and Reddit, support for RSS feeds/feedburner, etc. It's all here! I like the customizable features, widgets, and oh, the fact that it is FREE! Only downside is that they don't support the ARMLS yet for the MLS map listing feature, but I'm sure they'll have that soon. Overall I am happy so far and look forward to using RealBird.com to continue promoting my current and future listings! Can't wait to see how this one evolves!

DMB plans to rebuild Centerpoint on Mill Avenue in Downtown Tempe

Ryan Charleston (Urban Realty & Development) — Mon, 13 Aug 2007 15:01:41 -0500

More news for Downtown Tempe as Garin Groff from the Tribune reports today that the owner of the Centerpoint on Mill has plans to demolish the Harkins Theatres in Downtown Tempe along with the storefronts on Mill Avenue and replace them with mid-rise and/or high-rise condominiums, hotel, new shops and a plaza. As the article indicates, one of Tempe's first and biggest redevelopment projects is going to be demolished and rebuilt once again. Scottsdale-based DMB broke ground on the original Centerpoint project in 1987 but now wants to redevelop the area and bring Centerpoint inline with the demands of the 21st centruy. However, according to Karrin Kunasek Taylor (a DMB vice president), the new mixed-use Centerpoint development may not become a reality for several years, possibly a decade. DMB plans to replace the theaters with a 200-foot hotel tower with a health club and a 150-foot condo tower would be near Mill Avenue with single-story shops along the street.

My opinion is very straight forward on this. I am excited to see the continued renovation and upgrading of Downtown Tempe, but a little sad to see such a big movie theater go. I’ll get over it though. For those that are upset about the progress that is occurring downtown or the vertical nature and size of the developments - GET USE TO IT! Tempe ran out of land a long time ago and everything from here on out is going to be vertical or infill redevelopment. Furthermore, there is less of an environmental impact when renovating to build high-rises verses plowing through 20 acres of pristine desert land to build single-level cookie-cutter subdivisions. I’m all for preserving historic buildings and the culture of an area, but this is after all the 21^st century and it’s a very competitive environment. If the little shops, dive bars, and dinners that people were use to in the 80’s are no longer there it could be from any number of reasons including mismanagement of finances, poor planning, or poor sales. If there are other businesses out there (mom-and-pop or chain-based) that can prosper on Mill Avenue then more power to them. It’s all supply and demand related. Brush the dust off that economics textbook and one will realize exactly what is happing in Downtown Tempe. It’s maturing folks! It’s natural, healthy, and in many cases necessary for its continued existence and prosperity. All cities compete for businesses, residents, and ultimately tax dollars! If Downtown Tempe doesn’t continue to progress and move forward it will get left in the dust when other cities do! It’s a combination of land economics and a sign of the times. Plus, not all “corporate” stuff is bad and if things are build in the appropriate fashion using modern new urbanist design and planning techniques, Downtown Tempe will become increasingly more attractive and lucrative for all types of residences, businesses, and visitors alike.

Read the full article from the East Valley Tribune

Read the full article from the Arizona Republic

Watch the news piece at ABC15

Real Estate investors smile at tax time

Ryan Charleston (Urban Realty & Development) — Mon, 13 Aug 2007 14:55:52 -0500

Just wanted to pass along this great article I found today about residential real estate investing and how to avoid the tax burdens associated with buying, managing, and selling properties. Enjoy!

Real estate investors smile at tax time

Published Fri, 9 Feb 2007 12:00:00 GMT
Realty Tax Tips-Part 5: Claiming losses, exchanging property are all the rage

Robert J. Bruss
Inman News

(This is Part 5 of an eight-part series. Read Part 1, Part 2, Part 3 and Part 4.)

"Why buy real estate in a flat market?" That is the essence of a question my airline seatmate asked me after he learned I invest in and write about real estate. But rather than answer his question directly, I asked him, "Do you own your home?"

Purchase Bob Bruss reports online.

"Of course," he replied. Then I followed up by asking him the benefits of owning his home. As I recall, he listed security, pride of ownership, tax savings, market-value appreciation, building equity, investment safety, no rent increases, and perhaps a few I forgot.

My seatmate then asked me if I thought he and his wife should sell a rental house they own in Arizona. They seem to be having problems keeping it occupied by reliable renters since it is about 1,000 miles from their primary residence. But then he quickly added, "Our problem, if we sell, is we would owe tax on at least $75,000 of profit."

Although I pointed out the current low federal long-term capital gain tax is a maximum of only 15 percent, my new friend seemed highly adverse to paying taxes. So I suggested he make a tax-deferred exchange for a rental house close to his residence so he can better manage it.

MAJOR TAX SAVINGS FROM REALTY INVESTMENT PROPERTY. Although the high, runaway-market-value appreciation rates of the last few years for residential properties has shifted to a "plateau" in most cities, long-term realty investing still provides major tax benefits for owners who "materially participate" in operating their properties.

Although federal tax law requires "material participation" by investors who want maximum tax savings from their realty investments, they can still delegate day-to-day operating details to a property manager. Owners who make the major decisions, such as setting rents, establishing rental rules and authorizing major expenditures, easily quality.

However, an investor who owns less than 10 percent of a property partnership does not qualify, nor do owners of REIT (real estate investment trust) stock and owners of vacation homes who have their properties in "rental pools" managed by others.

Investors who meet the ownership and material participation tests can deduct up to $25,000 of their "passive activity" investment property tax losses from their ordinary taxable income up to $100,000 annual adjusted gross income (AGI). For realty investors with AGI between $100,000 and $150,000, the deduction gradually phases out to zero above $150,000 AGI.

Fortunately, most of these so-called tax losses are not actual cash losses. Instead, they are "paper losses," usually from the depreciation tax deduction for estimated "wear, tear and obsolescence" of the building.

Residential real estate is currently depreciated over 27.5 years, and other realty is depreciated over 39 years. Personal property used by tenants, such as appliances and furniture, has a much shorter depreciable useful life. But land value is not depreciable.

Investors who find they can't offset their rental property tax losses against their AGI must "suspend" those unused losses. IRS Notice 88-94 says these unused suspended losses can be used in future tax years on an aggregate basis, rather than property-by-property, when selling.

HOW TO CLAIM UNLIMITED INVESTMENT PROPERTY LOSSES. There is a little-known, perfectly legal way to claim unlimited investment property losses against your AGI regardless how much you or your spouse earns. The solution is to become a "real estate professional."

Real estate brokers, realty sales agents, property managers, builders, contractors and leasing agents clearly qualify if they work at least 750 hours per year (about 14 hours a week) on their real estate activities.

However, realty investors also can qualify as "professionals" entitled to the unlimited investment property deductions against their ordinary income if they spend at least 750 hours per year on their investment activities. Either spouse can qualify. A real estate sales license is not required.

For example, suppose a married physician's AGI is $500,000. Normally, he would not be entitled to any property loss deductions because his AGI exceeds $150,000. However, if his wife manages their real estate properties from their home and she spends more than 750 hours annually supervising the properties, making management decisions, inspecting properties for possible purchase, and supervising property sales and exchanges, they qualify. The result is the physician and his wife can claim unlimited property loss deductions from their properties because the wife qualifies as a "real estate professional."

HOW TO AVOID TAX WHEN SELLING INVESTMENT PROPERTY. Although most investment real estate offers many benefits already listed, when the property is sold Uncle Sam (and most states) are waiting to collect capital gains tax. In addition, Uncle Sam imposes a special 25 percent "depreciation recapture" tax for the portion of capital gain attributable to depreciation deductions enjoyed by the owner.

However, there are several ways to avoid these taxes. The "ultimate tax shelter" is to die while still owning a depreciable property. Uncle Sam will be so distraught upon learning of your death he will waive any capital gains and depreciation recapture tax that would have been due if you sold the property before you died.

But a more acceptable way to avoid capital gains and depreciation recapture tax is to make a tax-deferred Internal Revenue Code 1031 exchange for another investment or business property of equal or greater cost and equity. Personal residences are not eligible. But cash or "boot" such as net mortgage relief taken out of such an exchange is taxable.

However, savvy investors can make a tax-deferred IRC 1031 trade of their rental property for another qualifying rental property, perhaps an ultimate "dream home," and later convert it into their personal residence. Most tax advisers recommend renting the acquired property at least 12 months to show rental intent before converting it to the investor's home.

After owning the acquired rental property at least 60 months, 24 months of which it is occupied as the owner's principal residence, then the owner can sell it and claim up to $250,000 tax-free profits (up to $500,000 for a qualified married couple filing a joint tax return in the year of home sale), thanks to Internal Revenue Code 121.

SUMMARY: Owning real estate investment property provides many tax benefits, both during ownership and at the time of sale or tax-deferred exchange. Most rental properties appreciate in market value over the long term and offer many additional tax benefits. Full details are available from your tax adviser.

Next week: The many benefits of tax-deferred exchanges.

(For more information on Bob Bruss publications, visit his
Real Estate Center).

***

Marina Heights Development Announced for Tempe Town Lake

Ryan Charleston (Urban Realty & Development) — Thu, 24 May 2007 09:23:43 -0500

Some more light has been shed this week on the so-called Marina Heights development to be located just east of Hayden Ferry Lakeside on the south shore of Tempe Town Lake. This is yet another mixed-use development envisioned by SunCor which is expected to include several mid-rise and high-rise residential, retail, and commercial buildings in an eclectic showcase of architecture, urban design, and planning.

A hearing at Tempe City Hall on Tuesday night was the first public step in development the land, currently owned by Arizona State University. The chunk where Marnia Heights will be built consists of 25.6 acres and is one of the largest parcels near the lake. It is in a prime location for future high-end development.

Although build-out of this project has been projected to take a decade or two, I suspect market conditions will help encourage its completion much sooner, say by about 2015 or so. IBI/HB Architects are currently working on the plans and renderings for Marina Heights. More information to come!

If you or someone you know are interested in learning more about Marina Heights or any other urban developments in Arizona, contact the urban living specialist, Ryan Charleston, at ryan@urev.net 1-877-977-UREV / www.urev.net

Sources:

http://www.azcentral.com/blogs/index.php?blog=369&blogtype=News
http://www.ibi-hb.com/p_marina_heights.htm
http://www.azcentral.com/arizonarepublic/business/articles/0524biz-marina0524.html

The Pier at Tempe Town Lake - New Luxury Urban Development in Tempe

Ryan Charleston (Urban Realty & Development) — Fri, 18 May 2007 13:02:31 -0500

THE PIER AT TEMPE TOWN LAKE (Formerly Pier 202)

Hot off the press! New information regarding the formerly known as “Pier 202” development at the southeast shore of Tempe Town Lake! Katie Nelson, reported today in the Arizona Republic new details about what is planned to be the largest luxury mixed-use urban development in the history of Tempe. I’ve been following this development closely and have connections to players that may be involved in its development process. I personally call The Pier the “Cityscape of Tempe”, although it looks like it could become a second downtown for Tempe. In any case it appears things are moving along quickly and after taking a look at the architectural renderings, it looks nice; to my delight very “California-ish”.

Plans for this $1 billon development will include approximately 9 buildings including condominiums, retail, office, and potentially a hotel. The project is expected to take about 10 years to build out.

Will this compete with all the development planned in Downtown Tempe or will it be just another great addition to the continued development of Tempe Town Lake? Only time will tell. More to come…

If you or someone you know are interested in learning more about The Pier at Tempe Town Lake or any other urban development in the valley, contact the urban living specialist, Ryan Charleston, at ryan@urev.net 1-877-977-UREV / www.urev.net

Stadium Tower & Lumina Hotel Unveiled by Constellation Property Group in Tempe

Ryan Charleston (Urban Realty & Development) — Thu, 26 Apr 2007 10:58:13 -0500

So last night I had the pleasure to attend the "Friends and Family" sales opening event for the new Stadium Tower Condominiums and lofts (formerly The Armory project). There was a much larger turnout than I expected and by the end of the night it looked as thought many of the over 200 luxury modern urban residences were either sold or reserved. Also, as a component of Phase II in the Stadium Tower development at the SEC of College Avenue and 5th Street, a new cutting-edge hotel concept was unveiled by the same guy who branded the W Hotel; it's going to be called Lumina.

The 20-story mixed-use high-rise will break ground in the next few months and is scheduled for late 2009. Model pictures from the Wednesday night event are show below.

Remarkably, there are actually units in this development (albeit very small 460 square foot studios) that will sell for $267,000. Most of the 2 bedroom/2 bath units range from 800 - 1,000 square feet and sell in the $550 to $600 per square foot range. Nice looking 3-bedroom penthouse suites will run anywhere from $900K to about $1.35 Million.

Overall, I think this is a great project and will sell quickly. It brings something unique to the table in realm of urban living and prime urban real estate in Tempe, Arizona. The development team appears highly capable and the location is within walking distance to Sundevil Stadium, ASU, Downtown Tempe, Tempe Town Lake, Karsten Golf Course, and the best of what Tempe has to offer.

As always, if you or someone you know are intersted in learning more about Stadium Tower or any other urban development in the valley, contact the urban living specialist, Ryan Charleston, at ryan@urev.net 1-877-977-UREV / www.urev.net

Chateaux on Central Phoenix Midtown Brownstones Saved Fom Bankruptcy

Ryan Charleston (Urban Realty & Development) — Mon, 26 Mar 2007 14:29:22 -0500

An article yesterday at AZCentral.com indicates that the Chateaux on Central project is back on track. This is good news for Downtown Phoenix, and something I kind of anticipated (or prayed for). It’s too nice of a project in a great revitalizing urban area to let fall apart. Yes, the market is a bit slow and the units at Chateaux on Central are priced in the millions (even smaller buyer pool), but there aren’t that many of them. They’ll sell eventually and I suspect future owners will be pleasantly surprised.

Now Central PHX Partners plans to have the first brownstone mansion at Chateaux done by July and the entire project completed by summer 2008.

Chateaux on Central got new financing last week, and the foreclosure sale of the property was called off.

Mortgages Ltd. is now backing the $65 million development. And the project's developers are bullish on when they can complete the project and see the first buyer move in.

See the full article here…

http://www.azcentral.com/business/columns/articles/0325biz-catherine0325.html

Omega Condomniums Dowtown Phoenix : 32-story Tower Planned

Ryan Charleston (Urban Realty & Development) — Wed, 14 Mar 2007 10:46:14 -0500

Phoenix condo tower planned

32-story Omega would be developer's second project downtown

Ginger D. Richardson

The Arizona Republic
Mar. 14, 2007 12:00 AM

A developer who has already made his mark in downtown Phoenix with one condominium tower is now proposing a second, 32-story residential project in the heart of the city.

The $100 million development, called Omega, would be located at Second Avenue and Adams Street, behind the Orpheum Lofts. Once built, it would be the third urban housing high-rise downtown.

It is the brainchild of Chicago native David Wallach, who is taking an increasingly active role in the redevelopment of Phoenix's core.

Wallach, principal of W Developments LLC, was the first to take a chance on downtown's urban-living appeal when he announced plans to build the 165-unit Summit at Copper Square condominium tower in 2004. Today, the project, located next to Chase Field, is 85 percent sold, and its first residents won't even move in until this summer...

...Wallach said he hopes to break ground on Omega later this year and said the tower could open in 2009. It would feature one-, two- and three-bedroom units, starting at about $400 a square foot. That would put the smallest residences, at 750 square feet, in the $300,000 price range.

The plans for the Omega tower come only six months after money constraints and the Valley's flagging real estate market helped kill a mixed-use development known as Central Park East. That project, which would have combined an office tower with high-rise condominiums and academic space for Arizona State University's downtown Phoenix campus, has since been retooled into a plan for high-end commercial office space.

Wallach quickly douses any suggestion that his development might meet a similar fate.

"Projects don't get built for a variety of reasons," he said. "But I have never announced a project that I didn't actually build."

Read the full article here

My Comments:

Sounds like this one will go and it will be nice - put another one on the board for Downtown Phoenix! David Wallach is known to come through and although the timing make shift a few weeks or months due to market conditions or problems with getting plans through the city, I'll count this one on my list of sure-shots. :)

-Ryan

Proposed mixed-use urban living development in Chandler

Ryan Charleston (Urban Realty & Development) — Thu, 01 Mar 2007 12:09:36 -0600

Another article out today regarding a mixed-use urban development in Chandler. Just goes to show you how determined some places are to join in the the part that is urban living and mixed-use development. I'm cautiously optimistic on this one as have been on Elevation Chandler (now in foreclosure supposedly), but maybe this is a sign that the whole real estate market is going to rebound a lot quicker than the cynics all thought.In any case, a step in the right direction for Chandler, hope it all works out for their sake. The live-work lifestyle seems to getting a lot more respect of late due to higher gas prices, longer more painful commutes, and the effects of automobile pollution.

Proposed $100M mixed-use Chandler project one example of latest trend of urban living

Misty Williams, Tribune

The Valley’s latest development craze — projects that blend retail, office and residential space — is sweeping into Chandler with a proposed $100 million project in the works.

Sitting on 12 acres next door to Chandler Fashion Center, The Metropolitan would combine 60,000 square feet of retail space, 342 condominiums and 38,000 square feet of offices.

The project would include 12 buildings, ranging in height from one story to six stories, city planner Kevin Mayo said. The condos — ranging in size from 900 square feet to 1,900 square feet — would sit above boutique-type shops, giving the development a more urban feel, Mayo said. The site will also include an 8,000-squarefoot, stand-alone restaurant with valet parking.

Read the rest of the article here!

http://www.eastvalleytribune.com/story/84995

Valley Metro Light Rail Comments from Downtown Tempe Realtor

Ryan Charleston (Urban Realty & Development) — Tue, 20 Feb 2007 17:22:05 -0600

Ooo, fun, light rail! So I found this article come up through my one of my RSS feeds today and I felt compelled to comment.

Here’s the link

If not light rail, then what?

http://www.azcentral.com/blogs/index.php?blog=240&c=1&page=1&more=1&title=if_not_light_rail_then_what&tb=1&pb=1&disp=single

In response to the comments on the light rail made by Kymberly Levesque, I would say I agree for the most part. I too am all for the light rail, but after getting a chance to visit the east coast last year (NYC, Boston, DC, Philly, Seattle, and San Francisco, I took notes on all the transit systems. Although Phoenix is still a ways away from becoming as dense as these great cities (a necessity to support more advance rail transit plans), I think at the rate at which the valley is growing the system we're currently building is inadequate and will be force into constant upgrading and additions over the next few decades. On the bright side, it is a step in the right direction since I also know that Rome wasn't built in a day. The valley is a great place to live, work, and play, but without a good rail system the growth will be lower than expected at the expense of all residents and businesses. Bus transit works, but isn’t as “cool”, environmentally friendly, nor time-efficient (referring to another blog posters comments) as rail.

I disagree however on the idea that the high-rise residential developments being build along the rail will turn into slums. I have mounds of data from several cities across the country that back up the fact that property values and demand for housing near rail increases and will not necessarily become lower-income housing if there is sufficient amenities surrounding it (i.e. mixed-use). However, some degree of work-force housing, apartments, or lower-income housing is definitely a necessity in our downtowns and along rail transit. A diversified mixed-income approach always works best in my opinion- Manhattan is a good example of this, although that too is changing and a lot of the middle class on the island are getting priced out to the shores of New Jersey, Queens and Brooklyn (which are actually not bad at all considering the price savings).

In the Phoenix area, middle class and lower middle class neighborhoods without a rail connection will be the areas at most risk to become future slums (your cookie-cutter, ex-urban tract developments will be too!). What happens 10 years down the road when gas goes to $10 gallon and air pollution is causing people to develop lung cancer (its already happening)…will we still consider widening the freeways and driving our cars more? I hear the cries to widen freeways, but all we have to do is look at our big brother Los Angeles to see that the idea doesn't work. Traffic continues to get worse there even after widening! Cars are a great invention and we continue to improve upon their environmental shortcomings, but people (especially here in the west), in my opinion are slavishly depending on their vehicles. I guess its not hard to fall into that trap when the whole region has been and still is being developed to encourage auto-dependency. Los Angeles is now actually starting to build genuine, sustainable urban development in Downtown and its various urban clusters. They’re even bringing back the idea of a subway and/or extensions to its light rail system. Good for them - for the densest city in the country they need it!

Advantage Phoenix - We don’t have to worry about earthquakes!

New Downtown Phoenix Condo Development Announced!

Ryan Charleston (Urban Realty & Development) — Tue, 20 Feb 2007 15:57:10 -0600

Condo developer may get 'sweet' downtown deal

See link for full article...

http://phoenix.bizjournals.com/phoenix/stories/2007/02/19/story1.html?b=1171861200%5e1418347&surround=etf

The Business Journal of Phoenix - February 16, 2007

by Mike Sunnucks

The Business Journal

Ty Young/The Business Journal

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Pencil in another urban core development for Downtown Phoenix - yet another high rise residential project announced for the revitalized urban center! This one looks like it will be successfully. Regardless of the current state or future state of the real estate market, Downtown Phoenix will be successful and people, slowly, but surely will begin to populate Downtown a major way over the next decade. I toured the Orpheum Lofts last fall and I really liked them, historic architecture, good location (right next to a light rail station), and walking distance to both sports venues, businesses, shops, restaurants, the convention center, etc. Can't wait to see the renderings of this one...

-Ryan
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The proposed 32-story condominium building would be built on the parking site at the northeast corner of Adams Street and Second Avenue, just west of the Orpheum Lofts.

The parking lot adjacent to downtown Phoenix's Orpheum Lofts is targeted for a 32-story condo project…

…Chicago-based W Developments is planning a 32-story condo tower next to the Orpheum Lofts at Adams Street and Second Avenue. Wallach also is developing the Summit at Copper Square condo tower south of the downtown sports stadiums.

"Replacing a surface parking lot with a high-rise, residential project will bring life, vitality and hundreds of new residents to our city and our downtown. That's exciting by anyone's measure," Gordon said…

…According to city documents, the original agreement specified that TASB has a purchase option to acquire the adjacent parking lot for $1 million. TASB then would get a $350,000 refund from the city if it sells the property to W Development or an affiliate within 90 days and construction on a new project begins within 36 months of the repurchase. Any new high-rise project also must include 90 parking spaces for Orpheum Lofts residents. The deal requires city approval before moving forward…

…Sheldon referred questions on the project to W Developments in Chicago and declined further comment. Wallach confirmed the project would be 32 stories, including five stories of parking and ground-level retail. He expects condos to be priced at about $400-per-square-foot. That translates into $440,000 for an 1,100 square foot condo.

John Chan, director of the city's Downtown Development office, said the city acquired the parking lot parcel in 2004 for $630,000 and acknowledged the market price for the land now is higher than that figure and the $650,000 it could turn for.

Chan said the proposed tower would contain 200 residential condo units, and the downtown area would benefit from having more residents and activity.

A new condominium tower would come at a time when downtown Phoenix is seeing a number of major projects, including expansion of Arizona State University's Downtown Campus, new hotels, new condos and the Metro Light Rail system.

Housing Trends : Builder Show Highlights Green Building & Urban Living

Ryan Charleston (Urban Realty & Development) — Sat, 17 Feb 2007 12:29:36 -0600

Builders' show targets trends TheStar.com - Athome - Builders' show targets trends
Green living, boomers featured at U.S. showcase
http://www.thestar.com/printArticle/181990

February 17, 2007
Tracy Hanes
Toronto Star

ORLANDO, FLA.–Baby boomers are dominating the housing market, the green movement is gaining huge momentum and urban living is enjoying a renaissance.

Those were some of the primary trends identified at the International Builders' Show presented by the National Association of Home Builders (NAHB) last week. The mammoth annual event – which is not open to the general public – drew 100,000 attendees from around the world and occupied more than one million square feet of floor space as 1,900 manufacturers and distributors of everything from appliances to shingles to insulation rolled out their latest products.

Only three cities in the U.S. have facilities big enough to accommodate the show: Orlando, Las Vegas and Chicago.

The show also had a mind-boggling array of educational seminars for builders and this year, green building and the 55-plus buyer were common themes: Designing for the Active Adult, Selling to Active Adults, What Boomers Want, the 50-Plus Community Vision, Active Adult Sales Boot Camp and You Don't Have to Go Weird to Go Green, Green Solutions for Green Spaces, Creating the Energy Efficient Community – A Builder's Journey and Sustainable Development, were just a sampling of the sessions offered.

If you listen to speakers like Tim McCarthy, baby boomers are the saviours of the battered U.S. housing market, which suffered its biggest decline in decades in the last quarter of 2006, when the new home market fell off by almost 30 per cent.

McCarthy is managing director of Traditions Capital, which builds, develops and manages an investment fund for developers and builders serving the 55-plus consumer.

"People over 55 are not deterred from buying if they have reached a stage in life where a move makes sense," McCarthy said.

"Usually their lifestyle has changed quickly (e.g. due to illness or physical infirmity) and whether the market goes up or down, they go to look for a house. Coast to coast, builders and developers targeting 55-plus buyers are doing well and will continue to thrive in this difficult economy."

But prying this group, which has more than half the wealth in the U.S., from their existing digs won't be easy, according to Paul Emrath, vice-president of housing policy research for the National Association of Home Builders.

"If you ask people over 55 about if they are happy where they are living, no matter what type of housing, they usually give say nine out of 10. It's a high bar to overcome to lure them away from their current housing."

As well as wealthy and content, this group is also hard to pigeonhole.

"No one formula fits all," warned Margaret Wylde of ProMatura of Oxford, Mass., market researcher and consultant to active adult builders and author of three books on the boomer market. She said what they want depends on a variety of factors, such as family size, marital status, income and age.

What they do seem to like, gleaned from several seminars dissecting the 55 and older market, was walking trails, fitness facilities, showy homes loaded with upgrades with kitchens well-equipped to cook gourmet dinners for a crowd.

The green wave is also sweeping through the housing industry, though there's still some educating to be done.

"Green is the new red, white and blue," observed Gayle Butler, editor-in-chief of Better Homes and Gardens magazine. "There's more concern about energy efficiency and reducing water. These are issues that are becoming mainstream interests and concerns."

"We are entering a period of change in consciousness and people want more information on these things and want to clarify their choices."

It's a difficult balance between green features and consumer want, said Gopal Ahluwalia, vice-president of research for the NAHB. "They want more glass (windows) and higher ceilings and they want energy efficiency, too."

But he said most are willing to spend only $5,000 upfront on energy efficient features.

Green was the theme for this year's New American Home, one of two showcase homes in a historic Orlando neighbourhood. The project is a "real-world" laboratory demonstrating concepts, materials, designs and construction techniques that can be replicated in whole or in part in housing built any place and in any price range.

Its energy-efficient features include low-gain solar windows with four-foot overhangs, precast concrete walls, solar thermal hot water heating, Energy Star appliances, photovoltaic panels and low-voltage systems. The 4,707-square-foot contemporary house uses 73 per cent less energy than a comparably sized house built to conventional standards in a hot, humid climate.

The home, built on a 50-foot infill lot, also was inspired by another trend identified at the builder show – that homeowners are forsaking the suburbs and moving closer to downtown where they can walk to restaurants, parks and entertainment.

Toronto's Linda Mitchell, vice-president of sales and marketing for highrise for Monarch Corp., addressed the urban living trend during her seminar on Maximizing Small Spaces, which also featured Toronto interior designer Alex Chapman.

"People are getting fed up with commuting," said Mitchell. "The stress is too much. Urban living offers ease and affordability, as well there's environmental awareness, as you don't have to use your car."

"But the biggest and most important reason for this trend is the lifestyle option," she added. "People are enjoying living close to shops, restaurants, theatre."

Mitchell said while condos are a huge trend in Toronto, that's also true in the United States, where condominiums are one of the biggest selling housing products.

Mitchell said in 1997, there were 74 condo projects in the GTA; now there are 240.

There were about 2.5 million condo owners in the U.S. in 2005, according to the NAHB, up from 1.9 million in 1997. About half of multi-family building starts in 2005 (which also includes apartments and townhouses) were condominiums, expected to stabilize at 30 per cent annually.

While Mitchell said Toronto buyers are from "across the board" and represent young singles, married couples, families, move-up buyers and downsizers, in the U.S. young professional singles or couples buying their first home or mature buyers who want to have less maintenance are the key buyers.

Urban Sustainability in Arizona : Growth forces farmers to look to Mexico

Ryan Charleston (Urban Realty & Development) — Thu, 15 Feb 2007 23:45:50 -0600

Growth forces farmers to look to Mexico

February 15, 2007

Cronkite News Service

PHOENIX - Urban growth into Arizona’s farmland will push farmers to take part of the state’s $6.3 billion-a-year agriculture industry into Mexico, the state’s agriculture director said Thursday.

“The growers are going to go to Mexico. They’re looking there now,” Donald Butler, director of the Arizona Department of Agriculture, said in an interview with Cronkite News Service.

“You keep pushing and pretty soon you’re going to have a situation like you do with oil. It’s going to be imported,” Butler said. “The growers here are going to go to Mexico and produce the crops and send them back up.”

Butler said he doesn’t see a balance developing between agriculture and the population influx that has made Arizona the fastest-growing state in the nation.

“They’re going to come, and they have to be housed someplace, whether it’s prime farmland or not,” he said. “I think agriculture is going to get the short end.”

Butler said that’s because the land is more valuable to a developer than to the farmer.

Arizona lost 37 percent of its farmland between 1950 and 2000 to either residential, industrial or business uses, according to a 2003 report from Northern Arizona University’s Center for Sustainable Environments.

Butler said he remembers when Arizona had between 500,000 and 600,000 acres of cotton. Last year, it was around 220,000 acres, and he’s heard it’s now around 180,000 acres.

Asked what the state could do to keep agriculture strong in the long-run, Butler said, “I guess the easy answer would be to stop putting concrete down on good farmland.”

Butler said his department needs to do a better job of educating people about what agriculture adds to Arizona.

“People don’t realize the effort, the capital and everything that goes into agriculture,” he said. “It’s much easier to go to Safeway or Bashas’ or the rest.”

The state is the nation’s second-largest producer of head and leaf lettuce, spinach, cantaloupe, honeydew, broccoli and cauliflower.

Butler said the move of farms out of the country could make it more difficult to keep food safe. He also noted that any food-borne illness outbreak would be more difficult to trace in imported food.

“People say, ‘is it safe food?’ They can do things in Mexico that we can’t do here – pesticides and in other areas.” Butler said.

Produce distributors are currently working with Mexican growers to establish safety measures for their crops, he said, adding that corporations such Wal-Mart are demanding a specific level of safety in the food that they purchase.

Butler said Sonora is the most advanced state in Mexico in terms of livestock and crops.

“It’s a lot of money, and they take care of it,” he said.

Butler noted, however, that the 1,500 trucks passing through the port of Nogales each day carry produce from as far away as Guatemala and Chile. While agriculture inspectors monitor what enters Arizona, it’s impossible to inspect every truck and every cargo container, he said.

He said another border issue affecting Arizona growers is the availability of labor to work in the fields. Butler said that in some Yuma lettuce fields, for example, only 20 workers are thinning the fields when 60 workers are needed for the job.

Butler said he favors a program to bring in field workers from Mexico “because you don’t have the workforce in the United States that’s willing to do it.”

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Ryan's Comments:

Sustainability, ah, yes! So this article is somewhat related to my business in that it describes the situation Arizona has in regard to agriculture and sustainability and the urban-built environment. With a continuing influx of people relocating to Arizona more housing will undoubtedly be needed. However, building the typical urban sprawl, cult-de-sac developments and taking up valuable farm land will cause problems that could lead to a decrease in sustainability and put the regions food supply at risk. Although replacing farmland with homes will reduce water consumption (so the experts say), and it will help keep our housing-centric/building-centric state economy moving along, it will unfortunately have long-term effects on the food supply and environment that we need to consider.

I believe urban hosing, multifamily/mixed-use development, high-rise, and urban infill development can be a solution to this dilemma. By revitalizing urban areas and building transit-oriented development, we preserve the necessary farmland and locally grown produce (the best kind there is), keep our energy consumption in check, and are still able to provide adequate housing, healthy food, and opportunities in vibrant communities for a rapidly expanding population. I have no problem with allowing documented workers from south of the border come up and work if they want to. I beats exporting our farms to them. We had the same issue with oil over the past half century becoming dependent on foreign sources -look where that got us. Is agriculture next? I hope not.

Something to think about!

Most Luxurious Apartments in Arizona: Grigio by Tempe Town Lake

Ryan Charleston (Urban Realty & Development) — Wed, 14 Feb 2007 07:37:16 -0600

So here it is, hot off the press today, this article came out in the AZ Republic this morning about the new Gigio Apartment community (formerly Mondrian) over along the banks of Tempe Town Lake, by the 202 freeway and Rural Road in a mixed-use development called Playa Del Norte. This community is something I would expect to see near Tempe Town Lake in the way of apartments and I would expect to see more of these types of ultra-luxury apartments built in the vicinity of Downtown Tempe and Tempe Town Lake. I can't wait to get a chance to take a look at the interiors (maybe I'll go do that this weekend). Anyways, read the article and let me know what you think. Would you live here? I think if I wasn't so much into real estate and real estate investing and just wanted a cool place to live with every amenity you can imagine then the answer is a big YES!

-Ryan

Tempe's Grigio delivers luxury, service to tenants

William Hermann
The Arizona Republic
Feb. 14, 2007 12:00 AM
Forget Scottsdale, Paradise Valley or the Biltmore area. The Valley's most expensive luxury apartments are now open on Tempe Town Lake.

Folks willing to pay up to $5,000 a month began moving into their luxury apartments last week at Grigio, a 523-unit complex on the northern shore of Tempe Town Lake.

Dolores McKay, the brand manager for Gray Development Group's Grigio Contemporary Living, described those moving in as "independent, successful people who want the amenities of a resort in the place they live. Renters include successful business people and an ASU student from an affluent local family.
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"If they want their dry cleaning waiting for them in their closet, we'll ask which side of the closet. If they want their hair done, a massage, coffee delivered to their door, it will all be here." "We're here for people who work very hard and want service like they get in a five-diamond resort."

Units at Grigio range from 500 to 2,600 square feet. Studios start at $900 a month. There are 48 floor plans. As of this week, 10 units have been occupied and 80 are spoken for.

Grigio has caught the attention not just of potential residents, but also of the Valley's real estate community.

Pete Te Kampe is a senior investment associate with Marcus & Millichap, a real estate investment brokerage company. Te Kampe also is a member of the board of directors of the Arizona Multihousing Association.

He said the highest average rents in the Valley are $1,013, in north Scottsdale and Fountain Hills.

"Grigio now is, by far, the most expensive rental community in the Valley and it's first class all the way," Te Kampe said. "This Grigio is the Rolls-Royce of Valley apartment communities. What Gray Development is doing is inventing a new market segment for apartments."

It's a market segment that appeals to one of the first Grigio residents, Torin Sixx, 34, a professional actor. He's paying about $1,600 a month for a two-bedroom apartment.

"With the money I'm spending here, I could buy a house, I know," Sixx said. "But I was looking for a nice but low-maintenance lifestyle.

"Right now, I need to be able to put all my forces into my career, and if I have to go on location, just be busy, I don't want to worry about mowing the lawn or someone watching a house. Here, I get the convenience and services I was looking for."

McKay said that's what was intended.

"We've combined the best aspects of existing residential options - apartments, condos, resorts, timeshares - and we've added the sizzle you would expect in a resort," she said. "It's contemporary architecture, with beautiful, elegant finishes. You'll see blue-pearl granite countertops, silver metallic appliances, glass-panel cabinetry and split bamboo flooring."

McKay said it's not only the amenities that are selling the apartments. Grigio's location has been a huge boost.

"The whole Tempe, Mill Avenue scene is a very major plus for us," McKay said. "People know how vibrant Mill Avenue is; they see how beautiful the new art center will be, know about other developments coming in downtown Tempe.

"And now they want to stake their claim."