Author: ipgocorp

STATESBORO, GA – FM Capital continues to expand their student housing portfolio with the recent acquisition of Campus Evolution Villages at Statesboro, a 528-bed (132 units) student-life community near Georgia Southern University.

“We capitalized on this opportunity and recognized the quality of this asset. With the growth of GSU, we knew it was the ideal fit for our portfolio approach and value-add strategy,” says Joe Fishman, VP Acquisitions, FM Capital.

FM Capital plans to rebrand the property, The Vault at Statesboro. An exclusive, well-located, and amenity-rich place for students to call home. FM Capital has many exciting enhancements in the works, including a new clubhouse/game room featuring game-viewing lounge seating, café seating, ping-pong and billiards tables.

In addition, a full improvement will be made to the outdoor amenities, including a new hot tub, cabanas, fire pits, and grill stations by the pool. A new dog park will be added to the property as well. To suit student’s active lifestyle, a new fitness center overlooking the pool, with on-demand exercise video software, will be completed by 2018. Lastly, to help students excel in their studies, a computer room and two private-study rooms will be built adjacent to the clubhouse.   

FM Capital is actively acquiring student housing properties, in strong markets near and adjacent to universities with growing student populations.  

FM Capital is a full service vertically-integrated Commercial Real Estate (CRE) investment firm, headquartered in New York and South Florida. FM Capital invests in commercial real estate and debt strategies. FM Capital has a proven track record. Since their inception in 2007, they’ve acquired and disposed of more than $1 Billion in assets, over 15,000 multifamily units, and over 3,000 student beds.

SUMMERVILLE, SC – Wood Partners, a national leader in real estate development and acquisition, announced today that it has broken ground on a 329-unit apartment community in Summerville, South Carolina.

Located 25 miles from Charleston, Alta Brighton Park will provide residents with convenient access to retail options, hotels, an extensive trail system, and major employers, including Volvo, Boeing, Mercedes and Blackbaud.

“We chose to develop Alta Brighton Park for a number of strategic and obvious reasons,” said Tom Burkert, director for Wood Partners for Western North Carolina and South Carolina developments. “With its ideal location and easy access to major employers, it also provides residents with access to the walkability of Charleston, along with the added benefits of ample space, and an outstanding school district, to name a few.”

The Class-A apartment community will include a pool deck and back porch with pond views, as well as a private resort-style salt water swimming pool, community room, fitness center, and resident library and business center. Parks are interspersed throughout the property, providing an attractive mix of private outdoor spaces and public gathering points, including a fireside inglenook and oyster pit. Each apartment will feature stainless steel appliances, granite countertops, wood plank flooring and individual balconies. 

Alta Brighton Park is located within Nexton, an emerging major employment center in the Summerville area that is bringing new shops, restaurants, events and nightlife to the area. Nexton offers a strong sense of community for all of its current and future residents. In early 2018, a dedicated interchange, Nexton Parkway, will open providing direct access into Nexton and Alta Brighton Park directly from I-26.

“We welcome Alta Brighton Park apartments to the Nexton community, a mixed-use neighborhood with proximity to Charleston’s major employment centers,” said Brent Gibadlo, vice president, general manager of Nexton. “The addition of these luxury apartment rentals will support the influx of new employment opportunities coming to the area. Residents will be able to walk or bike to multiple shops, restaurants and office spaces.”

Alta Brighton Park is expected to begin leasing in Summer 2018.

EL SEGUNDO, CA – Strategic Housing Partners (SHP), a vertically integrated real estate investment firm focused on acquiring and repositioning multifamily properties in Southern California, announced the closing of three multifamily acquisitions with its joint venture partner Rockpoint Group over the last twelve months, totaling more than 1,200 apartment units throughout the metro Los Angeles region.

SHP and Rockpoint intend to initiate a full capital improvement plan to transform all of the properties and enhance the overall value proposition for renters and the local communities.  The three acquisitions include:

San Fernando Valley Portfolio: a multifamily portfolio comprised of 14 buildings and 592 garden-style apartment units located in Panorama City, North Hills, Van Nuys and Canoga Park. SHP and Rockpoint are upgrading the properties to include new interiors with upscale finishes, including kitchens with granite countertops and wood-inspired plank flooring. The exteriors are also being renovated to include designer paint schemes and wood cladding, a unique feature in this particular market. Each garden-style community will receive new landscaping and will be oriented around a central pool or recreational area.

Marathon Towers: a 94-unit apartment complex located in East Hollywood, a rapidly evolving, infill Los Angeles submarket. The redevelopment plan for the property involves a complete, high-end interior renovation of all units, including installation of quartz countertops, custom-tiled bathrooms, in-unit washer/dryers, and wood-inspired plank flooring. The renovation also envisions the addition of desirable new amenities, including an outdoor pool and lounge, [tenant-only] fitness center, and on-site leasing office. The building will also feature a new, modernist facade designed by KFA architects to distinguish the property within the community.

South Bay Portfolio: a 506-unit multifamily portfolio comprised primarily of two-bedroom townhomes in the vibrant South Bay submarket of Torrance. SHP and Rockpoint plan to enhance the portfolio by preserving well-maintained and attractive exteriors and renovating unit interiors, including the addition of new kitchens with quartz countertops, waterfall edges, full slab quartz backsplashes, contemporary subway-tiled bathrooms, in-unit washer/dryers, and wood-inspired plank flooring. Warren Berzack, Travis Haining and Alton Burgess of Lee & Associates represented the seller in the transaction.

SHP is a joint venture led by five experienced real estate professionals, including Moshe Azogui, Steven Ludwig, Eric Freedman, James Killian and Jerry Baker. Collectively, the principals of SHP have a track record of more than $5 billion in real estate transactions over the last two decades. SHP also employs a vertically integrated platform, which includes its in-house property management company Coastline Real Estate Advisors and an affiliated construction management company, Strategic Renovations Partners (SRP).

“When we launched SHP, our vision was to become the premier multifamily owner in Southern California, and with these latest acquisitions completed with our partner Rockpoint, we are well on our way to reaching that goal,” said Moshe Azogui, Principal, SHP. “We believe our partnership has the key components in place to increase asset value while providing terrific housing to the communities we’re investing in and excellent risk-adjusted returns to our investors.”

“These three acquisitions are a perfect fit with our investment criteria, given the strength of the existing fundamentals in each submarket and demand for quality multifamily product throughout Southern California,” added Steven Ludwig, Principal, SHP. “We will continue to seek attractive new investment opportunities in the coming months.”

NEW YORK, NY – Mortgage rates were down slightly leading into this week’s meeting of the Federal Open Market Committee, with the benchmark 30-year fixed mortgage rate dipping to 4.09 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.24 discount and origination points.

The larger jumbo 30-year fixed nosed up to 4.08 percent, and the average 15-year fixed mortgage held steady at 3.31 percent. Adjustable mortgage rates were mixed, with the 3-year ARM up to 3.52 percent, the 5-year ARM retreating to 3.50 percent and the 10-year ARM unchanged at 3.91 percent.

Mortgage rates were little changed over the week, despite yo-yoing up and down in the interim. Bond yields and mortgage rates initially climbed on strong corporate earnings and a rising stock market, only to settle back as the Fed’s concerns about low inflation came to the fore once again. Mortgage rates are closely related to yields on long-term government bonds. The Fed holds plenty of both in the $4.5 trillion portfolio they are intending to start ratcheting back in the near future. Being the biggest buyer and biggest holder of these securities helped bring rates down and keep them there throughout the economic recovery. Just how much upward pressure we see on mortgage rates as they slowly unwind their holdings remains to be seen.  

At the current average 30-year fixed mortgage rate of 4.09 percent, the monthly payment for a $200,000 loan is $965.24.

SURVEY RESULTS
30-year fixed: 4.09% — down from 4.11% last week (avg. points: 0.24)
15-year fixed: 3.31% — unchanged from last week (avg. points: 0.18)
5/1 ARM: 3.50% — down from 3.52% last week (avg. points: 0.32)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets. For a full analysis of this week’s move in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. There is no clear consensus this week, with 42 percent of this week’s respondents expecting mortgage rates to remain more or less unchanged. One-third predict a decline and the remaining 25 percent forecast an increase in mortgage rates over the coming week.

NEW YORK, NY – S&P Dow Jones Indices released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released for May 2017 shows that home prices continued their rise across the country over the last 12 months.

YEAR-OVER-YEAR

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.6% annual gain in May, the same as the prior month. The 10-City Composite annual increase came in at 4.9%, down from 5.0% the previous month. The 20-City Composite posted a 5.7% year-over-year gain, down from 5.8% in April.

Seattle, Portland, and Denver reported the highest year-over-year gains among the 20 cities. In May, Seattle led the way with a 13.3% year-over-year price increase, followed by Portland with 8.9%, and Denver overtaking Dallas with a 7.9% increase. Nine cities reported greater price increases in the year ending May 2017 versus the year ending April 2017. 

MONTH-OVER-MONTH

Before seasonal adjustment, the National Index posted a month-over-month gain of 1.0% in May. The 10-City Composite posted a 0.7% increase and 20-City Composite reported a 0.8% increase in May.  After seasonal adjustment, the National Index recorded a 0.2% month-over-month increase. The 10-City Composite remained stagnant with no month-over-month increase. The 20-City Composite posted a 0.1% month-over-month increase. All 20 cities reported increases in May before seasonal adjustment; after seasonal adjustment, 14 cities saw prices rise.

ANALYSIS

“Home prices continue to climb and outpace both inflation and wages,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Housing is not repeating the bubble period of 2000-2006: price increases vary across the country unlike the earlier period when rising prices were almost universal; the number of homes sold annually is 20% less today than in the earlier period and the months’ supply is declining, not surging. The small supply of homes for sale, at only about four months’ worth, is one cause of rising prices. New home construction, higher than during the recession but still low, is another factor in rising prices.

“For the last 19 months, either Seattle or Portland OR was the city with fastest rising home prices based on 12-month gains. Since the national index bottomed in February 2012, San Francisco has the largest gain. Using Census Bureau data for 2011 to 2015, it is possible to compare these three cities to national averages. The proportion of owner-occupied homes is lower than the national average in all three cities with San Francisco being the lowest at 36%, Seattle at 46%, and Portland at 52%. Nationally, the figure is 64%. The key factor for the rise in home prices is population growth from 2010 to 2016: the national increase is 4.7%, but for these cities, it is 8.2% in San Francisco, 9.6% in Portland and 15.7% in Seattle. A larger population combined with more people working leads to higher home prices.”

More than 27 years of history for these data series is available, and can be accessed in full by going to www.homeprice.spdji.com. Additional content on the housing market can also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com.

PHOENIX, AZ – A joint venture between Security Properties and funds managed by Oaktree Capital Management, L.P. purchased Canyon Creek, a 440-unit property built in 1984 and located in Phoenix, AZ; Stillwater, a 516-unit property built in 1984 and located in Glendale, AZ; and Off Broadway, a 320-unit property built in 1986 and located in Mesa, AZ.  Security Properties now owns a total of eight assets in the Phoenix marketplace.

Metropolitan Phoenix is one of the nation’s fastest-growing regions, consistently recognized for strong job growth and an entrepreneurial environment. Affordability and a uniquely deep labor pool of applicable human capital continue to drive significant corporate investment in the market. Metropolitan Phoenix is forecasted to be in the top three major metropolitan areas in employment growth over the next two years. From 2017-2018, job growth is projected at 2.8% annually or roughly 112,000 jobs over the next two years. Metro Phoenix is also ranked #1 among major western markets for population growth through 2019.

The portfolio represents a value-add investment.  The joint venture plans to upgrade 100% of the units with a consistent renovation spec. The new spec will include a black appliance package, sprayed countertops, new flooring as well as updated lighting and plumbing fixtures. Additionally, 236 units will receive washer/ dryers.  Capital will also be focused on the upgrading of resident common areas/amenity space and addressing miscellaneous deferred maintenance items.

According to Davis Vaughn, Director at Security Properties, the acquisition was made because, “We are big believers in workforce housing, especially in metros with substantial job growth.  The affordability of Phoenix relative to other west coast markets continues to attract renters and jobs to the area and this is why we are scaling up there.  Once our renovation is complete, we will be able to offer competitive units to the market while still maintaining a basis significantly below replacement cost.”

The property will be managed by Security Properties-affiliate Security Properties Residential.

MISHAWAKA, IN – The Sterling Group has purchased Lake Castleton, a 1,261-unit apartment community on the highly desirable northeast side of Indianapolis. Sterling made this investment in a joint venture with Virtus Real Estate, an Austin, Texas-based private real estate manager. Sterling will manage the property.

Located at the corner of Shadeland Avenue and 75th Street, near the interchange of I-465 and I-69, Lake Castleton is adjacent to Community North Hospital and within close proximity to downtown Indianapolis, Castleton, Broad Ripple, Fishers, and Keystone at the Crossing.

Lake Castleton is situated on nearly 90 acres of land and comprised of two-story, all brick buildings featuring studio, one-, and two-bedroom apartments, as well as townhomes. There is a wide variety of floor plans ranging in size from 431 square foot studios to 1,266 square foot townhomes. Residents of Lake Castleton live just minutes from some of the best shopping, dining, and entertainment the area offers. Community amenities include two lakes, two resident clubhouses, two swimming pools overlooking the larger lake, multiple laundry facilities, a fitness center, acres of green space, grilling stations, a dog park, multiple tennis courts, a basketball court, and a playground. Plans include customer service and capital improvements. Capital improvements include a multimillion dollar renovation program to expand common area amenities, enhance the exterior grounds, and upgrade interior units.

“Our acquisition of Lake Castleton Apartments gives Sterling another opportunity to serve residents of a vibrant community and to expand our presence in the Indianapolis market,” said The Sterling Group’s President, Lance Swank. “Lake Castleton is a well-built and beautiful property located in a strong in-fill location. Our plan is to utilize our seasoned professional management team to enhance customer service and to execute an extensive capital improvement plan to renovate both the interior units and exterior amenities of the property. We acquired this property at a significant discount to replacement cost, and we look forward to bringing value to our residents through customer service and competitive rents while delivering a significantly improved product.”

“Lake Castleton fits our investment strategy focus on cycle-resilient property types well,” said Virtus Managing Director, Kevin White. “We see an opportunity to make improvements to the property that will create a better experience for the residents while still being a great relative value compared to other competitors in the market. We are actively looking for similar multifamily opportunities to invest in across the U.S.”

ORLANDO, FL – Electra America, one of the fastest-growing multifamily owner-operators in the U.S., has acquired a 384-unit, garden-style apartment community in the Orlando metro area. The property, currently known as Landmark at Woodland Trace, was acquired from Starwood Capital for an undisclosed price. It will be renovated and rebranded as Reserve at Lake Irene.

The transaction was privately negotiated, without a broker. Berkadia’s South Florida team of Mitch Sinberg and Matt Robbins arranged the financing.

With this acquisition, Electra America owns five multifamily properties in the Orlando area, and over 23,000 apartment communities throughout the Sun Belt.

“Orlando’s economy is meeting expectations as one of the strongest in the country, creating approximately 30,000 new jobs per month,” said Christine DeFillippis, Chief Investment Officer for Electra America. “This is a high-quality Class B asset with upside potential located in a market where there will be substantial demand for well-priced rental housing for years to come.”

Built in 1988, Reserve at Lake Irene is located at 1450 Sunshadow Drive in Casselberry, a community approximately 30 minutes north of Orlando. The pet-friendly property offers one- and two-bedroom apartments, a resort-style pool, fitness center, dog park, clubhouse, pet wash station, car wash, and tennis court. The property is 96% occupied, with average rent at $868/month. The community is surrounded by a variety of retail and dining options, including Casselberry Exchange, as well as Seminole State College-Sanford.

Electra America will invest approximately $2.6 million in capital improvements throughout the property, including new appliances, lighting and plumbing fixtures in apartments, new plank flooring in common areas, and various upgrades to the clubhouse amenities.

Electra America is a national multifamily owner-operator specializing in multifamily acquisition, repositioning and property management.  It owns and operates properties in Georgia, Florida, Maryland, North Carolina, Texas and Virginia. 

NEW YORK, NY – New construction starts in June grew 4% from the previous month to a seasonally adjusted annual rate of $679.9 billion, according to Dodge Data & Analytics.  Nonresidential building increased 13% in June, strengthening after two months of lackluster activity, and the nonbuilding construction sector rose 8% with the help of elevated activity for electric utilities.  However, residential building slipped 4% in June, as both sides of the housing market (single family and multifamily) retreated.  Through the first six months of 2017, total construction starts on an unadjusted basis were $342.7 billion, down 4% from the same period a year ago.  If the manufacturing plant and electric/utility gas plant categories are excluded, total construction starts during the first half of 2017 would be up 1% from last year.

June’s data lifted the Dodge Index to 144 (2000=100), compared to 138 for May.  Even with June’s improved activity, the Dodge Index averaged 139 for the second quarter, down 10% from the first quarter’s 154 average.  Since last year, total construction starts have shown an up-and-down pattern on a quarterly basis, including a 6% decline in the fourth quarter of 2016 which was then followed by a 7% increase in this year’s first quarter and now a 10% decline in the second quarter.  “A maturing construction expansion is characterized by deceleration in the overall rate of growth, that’s often accompanied by up-and-down behavior on a quarterly or monthly basis,” stated Robert A. Murray, chief economist for Dodge Data & Analytics.  “The 11% to 12% yearly increases for total construction starts during the 2012-2015 period were followed by a 4% gain in 2016, and several factors suggest that 2017 should still see modest growth for the year as a whole.  These factors include commercial vacancy rates that remain low as well as greater construction funding coming from the state and local bond measures passed in recent years. At the same time, it’s become apparent that any impact from a new federal infrastructure program, should one get passed during the latter half of 2017, would benefit construction more in 2018 and 2019.”

“The first half of 2017 has seen nonresidential building advance, reflecting further growth for office buildings and warehouses, combined with the boost coming from the start of several massive airport terminal projects such as the $3.4 billion Central Terminal Building at LaGuardia Airport in New York City,” Murray continued.  “Residential building so far in 2017 has been mixed, with some growth for single family housing earlier this year, while multifamily housing appears now to be trending downward after peaking in 2016.  Public works construction has been sluggish so far in 2017, although on the plus side it’s received support from the start of several huge pipeline projects, including the $4.2 billion Rover natural gas pipeline located in Michigan, Ohio, West Virginia, and Pennsylvania. On balance, the volume of construction starts so far in 2017 is slightly ahead of last year, if one excludes the often volatile manufacturing building and electric utility/gas plant project types.”

Nonresidential building in June was $249.6 billion (annual rate), up 13% from May. The commercial categories as a group climbed 23%, led by an 83% surge for new office building starts.  There were 8 office projects valued at $100 million or more that reached groundbreaking in June, led by a $585 million Facebook data center in the Omaha NE area, the $400 million office portion of the $500 million renovation of the Willis Tower in Chicago IL (involving remodeling of the structure’s base and observation deck), and the $334 million office portion of the $600 million Diridon Station mixed-use complex in San Jose CA.  During the first half of 2017 the top five metropolitan areas ranked by the dollar volume of office construction starts were – New York NY, San Francisco CA, Washington DC, Dallas-Ft. Worth TX, and Atlanta GA.  (The first half 2017 ranking for those metropolitan areas helped by the three largest June office projects were – Chicago IL, number 6; Omaha NE, number 10; and San Jose CA, number 12.)  Hotel construction in June jumped 62%, boosted by the start of the $575 million hotel portion of the $900 million Seminole Hard Rock Hotel and Casino expansion in Hollywood FL and the $175 million hotel portion of the $350 million Hard Rock Hotel and Casino renovation in Atlantic City NJ.  The other commercial categories lost momentum in June, with stores and shopping centers down 2%, warehouses down 19%, and commercial garages down 31%.  The manufacturing building category in June increased 35%, lifted by the start of a $1.8 billion methane plant in Louisiana as well as groundbreaking for such projects as a $150 million pyrogenic silica plant in Tennessee and a $143 million pharmaceutical research laboratory in Missouri.

The institutional categories as a group were unchanged in June compared to May.  On the plus side, educational facilities rose 16% in June, led by the $160 million renovation of the Martin Luther King Jr. Memorial Library in Washington DC, a $125 million high school in Stratford CT, and a $114 million high school in Millville NJ.  The amusement and recreational category surged 58% in June, reflecting the start of the $193 million renovation of the Philips Arena in Atlanta GA, the $175 million casino portion of the Hard Rock Hotel and Casino renovation in Atlantic City NJ, and the $156 million casino portion of the Seminole Hard Rock Hotel and Casino expansion in Hollywood FL.  The public buildings category (courthouses, detention centers) and transportation terminals also contributed with June gains, rising 16% and 10% respectively.  However, healthcare facilities plunged 39% in June, pulling back after a 40% hike in May.  The religious buildings category also retreated in June, falling 38%.

Nonbuilding construction, at $155.4 billion (annual rate), increased 8% in June.  The electric utility/gas plant category ran counter to its generally declining trend this year, with June soaring 78%.  Large electric utility projects included as June starts were a $1.3 billion natural gas-fired power plant in Florida, a $1.1 billion wind farm and transmission line in Colorado, and a $296 million wind farm in Texas.  The public works categories as a group dropped 6% in June, making a partial retreat after a 26% jump in May.  The miscellaneous public works category, which includes such diverse project types as site work, pipelines, and mass transit, fell 16% in June.  Although June included $1.4 billion for work on the high-speed rail line project in central California, May had featured the start of several large natural gas pipeline projects, such as the $1.5 billion Revolution Pipeline expansion in western Pennsylvania and the $690 million Gulf South Coastal Bend Header Pipeline in Texas.  Highway and bridge construction in June decreased 7%, although the latest month did include the $396 million Interstate 95 Scudder Falls Bridge replacement project over the Delaware River in New Jersey and Pennsylvania.  During the first half of 2017, the top five states in terms of the dollar amount of new highway and bridge construction starts were – California, Florida, Texas, Pennsylvania, and Georgia.  Two of the environmental public works categories registered gains in June, with water supply construction up 37% and river/harbor development up 14%.  The river/harbor development category was boosted by $350 million for Superfund remedial action at the New Bedford MA harbor.  Sewer construction, the third environmental public works category, receded 1% in June.

Residential building was $274.9 billion (annual rate) in June, down 4%.  Single family housing slipped 4%, continuing to settle back in June from the strengthening that took place during the first two months of 2017.  June’s pace for single family housing was still 3% above the average monthly amount reported during 2016.  By region, the first half of 2017 showed this performance for single family housing compared to last year – the South Atlantic, up 13%; the South Central, up 8%; the Midwest, up 7%; the West, up 5%; and the Northeast, up 1%.  Multifamily housing in June dropped 7%, sliding back for the third month in a row.  Large multifamily projects that reached groundbreaking in June were led by a $287 million apartment complex in Anaheim CA, a $185 million apartment building in New York NY, and a $164 million condominium complex in Pompano Beach FL.  Through the first half of 2017, the top five metropolitan areas ranked by the dollar amount of multifamily starts were – New York NY, Los Angeles CA, Chicago IL, San Francisco CA, and Washington DC.  Metropolitan areas ranked 6 through 10 were – Atlanta GA, Miami FL, Philadelphia PA, Boston MA, and Seattle WA.  The New York NY metropolitan area, while still the largest multifamily construction market in the nation, dropped 23% during the first half of 2017 compared to last year, which follows the 29% decline reported for all of 2016.  Other metropolitan areas in the top 10 with reduced multifamily construction in the first half of 2017 relative to last year were Chicago IL, Miami FL, Boston MA, and Seattle WA.

The 4% decline for total construction starts on an unadjusted basis during the January-June period of 2017 was due to reduced activity for nonbuilding construction, while residential building was flat and nonresidential building experienced moderate growth.  Nonbuilding construction year-to-date fell 22%, with electric utilities/gas plants down 60% and public works down 4%.  The “no change” for residential building year-to-date was the result of an 8% increase by single family housing offsetting an 18% slide by multifamily housing.  Nonresidential building year-to-date advanced 6%, with institutional building up 11% while commercial building held steady, combined with a 13% increase for manufacturing building that marks a change from this category’s steep retrenchment during 2015 and 2016.  By major region, total construction starts during the first six months of 2017 showed this pattern – the South Atlantic, up 11%; the West, unchanged; the Northeast, down 5%; the South Central, down 13%; and the Midwest, down 16%. The 13% year-to-date decline in the South Central reflected in part the comparison to the first half of 2016 that included $6.2 billion for two liquefied natural gas terminals, while the 16% year-to-date decline in the Midwest reflected in part the comparison to the first half of 2016 that included the $3.8 billion Dakota Access pipeline.

TEMPE, AZ – The Local, a new, mixed-use development located at the intersection of University Drive and Ash Avenue in downtown Tempe, has officially broken ground. Developed by Denver-based Forum Real Estate Group, The Local will be a unique, luxury apartment residence anchored by Whole Foods Market 365.

The nine-story structure sits on an 80,938-square foot parcel in the heart of downtown Tempe. Occupying the ground floor will be a Whole Foods Market 365 with three levels of parking directly above: one level with reserved parking for Whole Foods Market 365 shoppers, and two additional levels of parking reserved for residents. The remaining five floors will house 286 residential apartments, averaging 739 square feet per unit.

Studio, one-, two- and three-bedroom floorplans will be available, all appointed with high-end finishes and sophisticated accents that blend vintage inspiration with modern design to offer Tempe residents something truly unique. The Local’s overall design blends exposed concrete and brick, distressed and rich wood tones, and living plant and art details to create a warm, authentic and welcoming vibe.

The Local will feature such five-star amenities as:

Resort-style, variable depth pools including a bubbling jet water table and hot tub

Lushly landscaped pool courtyard with mister-equipped cabanas, covered grilling and dining areas, sunbathing decks, outdoor TV wall, and indoor/outdoor bar

Sound-proof karaoke/music/entertainment lounge with views and access to the outdoor courtyard

Expansive fitness studio equipped with the latest cardio, weight and circuit training equipment

Separate yoga/barre/Zen studio with outdoor terrace

Cantilevered, eighth floor game and clubroom space overlooking University Drive

Intimate ninth floor rooftop sky lounge with dual-sided fireplace, catering prep kitchen, entertainment/lounge space and outdoor drink rail to capture the breathtaking views

“We are so excited to bring this offering to Tempe,” said David Clock, Development Manager at Forum Real Estate Group. “This project is the perfect fit for such a vibrant city, and we’re honored to have a presence in this community. It’s our goal that The Local and the Whole Foods Market 365 will become a true neighborhood destination.”

Whole Foods Market 365 stores focus on an affordable and convenient shopping destination. The design, technology and carefully curated product selection at Whole Foods Market 365 stores provides a streamlined and modern experience for customers, while still adhering to Whole Foods Market’s industry-leading quality standards. Customers can look forward to unique in-store venues with the “Friends of 365” program and the free 365 Rewards program to save even more.

“We are thrilled to announce that our region’s first Whole Foods Market 365 in Arizona store will be located in Tempe,” said Patrick Bradley, president, Whole Foods Market Southern Pacific Region. “Our 365 stores deliver the same quality that our customers have come to expect, but in a convenient and fun new format that provides exceptional value.”

“Our residents have been asking for a major grocery store in downtown Tempe for more than a decade and Whole Foods Market 365 is a perfect fit for The Local,” said Tempe Mayor Mark Mitchell. “This development will build on the great urban living experience Tempe has to offer and brings together urban living and needed amenities in our downtown, just steps away from vibrant Mill Avenue restaurants and bars, some of our biggest employers and recreation at Tempe Town Lake.”

At a groundbreaking ceremony, stakeholders, including Tempe Mayor Mark Mitchell; Tempe City Council; and, representatives from Forum Real Estate Group, Whole Foods Market 365, and zoning attorneys for the project, Sender Associates, buried a time capsule that will be unearthed in 20 years containing a variety of local artifacts to commemorate the City’s rich history. Many items for the time capsule were provided by the Tempe History Museum. Decorative shovels designed by local artists from the Art Resource Center were used to bury the time capsule and will later be displayed as an art installation within The Local.