Quarterly Company Newsletter

8434 N. 90th Street
Suite 100
Scottsdale, AZ 85258
www.pbbell.com
Vital Information for Investors in Multifamily Housing
NEWS, VIEWS & TRENDS
Vital Information for Investors in Multifamily Housing
3 R D QUA RT E R 2 0 1 4
IN THIS ISSUE
P.B. Bell Redevelops Historic Building .. 1
OUR MISSION
Almeria Hosts Council Meeting ............ 2
The P.B. Bell Companies offer real
estate services that create exceptional
value, experience and opportunity for
our employees, residents, clients and
business partners.
Multifamily Pricing Summary .............. 3
Multifamily Vacancy Rates ................... 3
OUR CORE VALUES
We will operate, work and live by the
following core values and beliefs: Integrity,
Professionalism, Passion, Caring and
Teamwork.
P.B. BELL COMPANIES SELECTED TO REDEVELOP
HISTORIC DOWNTOWN BUILDING
THE P.B. BELL
COMPANIES SERVICES
Since 1976, The P.B. Bell
Companies have been committed
to p r ov i din g exc e p ti o n al
proper t y management and
development ser vices. With
decades of exclusive experience
in the Arizona market along with
numerous awards and accolades
we are your premier choice to
manage and/or develop your
multi-million dollar asset.
Our exceptional services include:
• Commercial Property Management
• Condominium Conversions
• Construction Services
• Development Support
• Due Diligence & Acquisition Studies
• Market Feasibility Studies
• Portfolio Evaluation & Strategies
• Property Management
• Refurbishing & Renovation Programs
• Sales & Marketing Programs
For further information on the services
P.B. Bell has to offer, call (480) 951-2222
and ask to speak with:
Chapin Bell, President,
P.B. Bell & Associates, Inc.
Debbie Willis, CPM®, President
P.B. Bell Asset Management, Inc.
Mike Tarver, Managing Member of
MT Builders, Construction Services
Please address all questions regarding the newsletter to Kira Brown
P.B. Bell Companies in a joint-venture with Davis Enterprises, an investment and development
company serving Arizona’s retail and office sectors for six decades, have been selected by the City
of Phoenix to redevelop the historic Barrister Place building in downtown Phoenix.
City officials chose P.B. Bell Companies/Davis Enterprises collaboration from among seven bidders
seeking to redevelop Barrister Place and two adjacent parcels on the southeast corner of Central
Avenue and Jefferson Street. The collaborators’ plans call for an adaptive-reuse renovation effort
that centers on creating and operating a boutique mixed-use community on the site. Special
emphasis will be placed on preserving the building’s historic façade while modernizing the interior
to carry it, and the accompanying development, into the future.
“The Barrister building is an iconic piece of downtown Phoenix history and we are honored to be
involved in helping write its next chapter,” said Mike Trueman, vice president of development for
P.B. Bell Companies.
Originally opened in 1915 as the Jefferson Hotel, the six-story, concrete-and-brick Barrister Place
once was hailed as the state’s tallest building. The City of Phoenix acquired the building in 1990
and used it to house offices and the Phoenix Police Museum before moving those operations and
closing the building in 2010. But, perhaps the building’s most famous role was a cameo shot in the
opening scene of Alfred Hitchcock’s 1960 classic horror film, “Psycho.”
P.B. Bell and Davis Enterprises have deep roots in the Phoenix community, making the team an ideal match for the redevelopment project. The
collaboration aligns two long-time, family-owned investment and development companies. Logan Van Sittert, a notable architect, is also a partner
and principal on the project with Davis Enterprises. Davis Enterprises has been investing in and developing retail and office space in Arizona since
1948. The company, which focuses primarily on high-density infill redevelopment and multi-tenant space, is now managed by the third generation.
“We are two legacy companies working together on a legacy project,” said Mark Davis, partner, Davis Enterprises.
P.B. Bell Companies will market and manage the residential and commercial spaces, and Davis Enterprises will oversee leasing for the retail space.
Development on the project is slated to begin late 2015.
ALMERIA HOSTS AMA ASSOCIATE
MEMBER COUNCIL MEETING
MULTIFAMILY HOUSING
CONSTRUCTION
6,668
4500
Per RealData, Inc., construction
and permits of new units is strong.
Through third quarter 2014, for
properties ranging from 50-99 units,
a total of 268 units were delivered.
For properties over 100 units,
approximately 3,699 units have been
delivered. Total units delivered year
to date for 2014 is 3,967, up from
2,096 through second quarter.
Almeria at Ocotillo proudly hosted the AMA Associate Member Council Meeting, Nov. 9 at the
property clubhouse in Chandler. Over 75 guests attended the event, in appreciation for the
vendor-partner relationships developed through the council on this exciting project and other
P.B. Bell communities. The event also served to introduce the newly opened Almeria at Ocotillo
to the esteemed group and showcase the community’s unique offerings, architecture and resident
experience. The feedback from the event and the community was overwhelmingly positive, as
event attendees expressed their gratitude for such a spectacular event at an equally spectacular
community.
Since the meeting, Almeria is currently in preparation to open the North phase of the community.
The development and onsite staff as well as the entire PB Bell team are anxiously awaiting the
Nov. 15 release date to offer 194 homes and luxury resident amenities to include a dog salon and
wash station, rentable game-room clubhouse, splash pad and more, over the next few months to
the already impressive list of resident offerings at the upscale community.
Units Constructed by Year
7000
4,194
3,967
3000
2500
2,019
1500
800
696
600
0
2009
2011
2010
2012
2013
2014
YTD
MULTIFAMILY PRICING SUMMARY
A summary of multifamily pricing data is detailed in this table. These statistics are provided by RealData, Inc.
Apartment Insights, survey of apartment communities of 100+units. These figures are reflected on stabilized,
unfurnished units that do not include utilities.
For more information about Almeria at Ocotillo, the existing homes and new phase offerings, visit
almeriaatocotillo.com.
Q2 2014
Q3 2014
GROSS
RENT
Studio
1x1
2x1
2x2
3x2
$568
$702
$721
$893
$1,170
$/SF
$1.24
$1.03
$0.88
$0.90
$0.95
SIZE
GROSS
RENT
457
681
818
998
1,235
$565
$707
$724
$898
$1,168
$/SF
$1.24
$1.04
$0.88
$0.90
$0.95
SIZE
457
681
818
999
1,235
MULTIFAMILY VACANCY RATES
MULTIFAMILY
HOUSING ABSORPTION
Occupancy in Metropolitan Phoenix
increased 1,894 units during the
second quarter, with the highest
increase of 612 units occurring in
North Tempe and the greatest loss
of 192 units suffered in Central Black
Canyon. Over a one-year period,
Metropolitan Phoenix experienced a
5,333-unit increase in occupancy, with
Chandler boasting the largest increase
of 534 units and Central Black Canyon
and Ahwatukee Foothills suffering the
highest losses of 34 units each.
All Units:
Stabilized, Lease-up & Out-of-Service
5000
Stabilized Units Only
RealData,Inc reported the average vacancy rate for stabilized units in the third quarter declined slightly from
6.85% in the second quarter to 6.46%. Vacancy below 5.00% occurred in two submarkets, namely, 4.49% in
South Scottsdale and 4.90% in South Gilbert/Queen Creek. The highest vacancy rate of 11.40% was suffered in
North Phoenix/Alhambra. Seventeen submarkets realized improvements in vacancy during the third quarter,
with the greatest decline of 4.92% in North Tempe as university students returned from summer break.
Thirteen submarkets suffered increases in vacancy, with the largest gain of 1.34% in North Paradise Valley.
5000
4000
Apartment Vacancies by Quarter
Stabilized Units
4000
Apartment Vacancies by Quarter Properties in Lease Up
60
Apartment Vacancies by Quarter
Stabilized, Lease Up & Out-of-Service
2507
1982
2112
1895
1443
1281
465
109
856
76
280
545
1550
702 823
-71
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 ‘13 ’14
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 ‘13 ’14
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 ‘13 ’14

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