east valley
Volume 3 Issue 4 Mesa, AZ
August 9, 2020
Experts: Area housing market like ‘the wild west’ BY PAUL MARYNIAK Tribune Executive Editor
T
IN THE BIZ
he Chandler Arizonan recently visited virtually with five experts to discuss the residential and commercial real estate market amid the COVID-19 pandemic. The experts included: Attorney Benjamin Gottlieb, of the real estate law firm MacQueen & Gottlieb; Kellie James, of Prime Lending Chandler; Lance Brace, of Bennett Property Management; Mary Nollenberger, a commercial real estate specialist for SVN/Desert Commercial Advisors and Angela Tauscher, a Realtor with West USA Real Estate Chandler. We still seem to be in a very strong seller’s market. How long do you think it will continue? Angela Tauscher: We’re putting consistently under contract every seven days 7,000 and 8,000 homes …and we’re closing between, I’d say, about 2,000 and 4,000. I think the highest I’ve seen honestly is 4,000 and I’ve been tracking it every single week since COVID started. ….As you know, a fulltime Realtor sells maybe 20 residential houses a year. I think our team has sold 30 in the last three months. It has been crazy out there. It’s literally the Wild West. Anything that we’re putting in under the $500,000 price point, we’re having anywhere from 10 to 30 showings in 24 hours. It doesn’t matter if it looks like a dog or if it’s the most beautiful home on the block. …More commonly, I’d say if it’s anything under probably $450,000, we’re getting 10 to 15 offers on every single house. We put in a cash offer for a $750,000 listing last week. We were outbid by a $775,000 Public Notices ............... page 3 © Copyright, 2020 East Valley Tribune
loan that waived the appraisal. “We have a million-dollar home right now that we had multiple offers on and they had tons of activity. So, it is challenging on the buyer’s side. We’re having buyers that are getting discouraged –especially if they need any concessions in any way shape or form, they just aren’t getting them.” Do you see this continuing indefinitely? Tauscher: I think we have a serious issue with our shortage of inventory. A lot of people are scared to put their homes on the market because they don’t want people in their homes. I think what happened is as people got a little more comfortable when things were opening up, they were more willing to maybe put some stuff on the market. But when the numbers spiked, now we’re seeing some people withdraw and get scared again. So, there’s a real challenge there. From what I’m seeing, people are stuck at home. They’re bored. There’s nothing better to do but talk about “what should we do?” “Should we add this gold-plated wall just because interest rates are so low?” “Maybe we should just sell and right now, then we don’t do refi.” We get this incredible interest rate and we get a step up for the exact same payment of what we were already working with. I think there’s a massive urge to move out there right now. We just don’t have the inventory, which is creating the stoppage. However, I think the whole (mortgage) forbearance thing that went out there early on, there was a lot of miscommunication and I think when those catch up – in 18 months or two years – I think we’re going (USPS 004-616) is published weekly
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to start seeing some situations with those people. Maybe Kellie can speak to this whole (mortgage) deferment thing.” Kellie James: I was on a market update call and 435,000 people that were taking advantage of forbearance caught their mortgages up in just the last week. …I did talk to clients that had money that chose a forbearance option even though they didn’t need to. My caution is, you’re going to have to catch up on these payments and so those that cannot, it’s really more giving the client time to sell their house. If you can’t afford the house, it’s not a free pass. It’s giving you time to sell it without damaging your credit if you are not going to get your income back. Then the question becomes where are you going to go. But we don’t think that interest rates are going to go up. For some reason, they’re not really following the normal trend. As the stock market goes up and gets improved, our interest rates should go up a little bit. That’s not happening, maybe because of all this liquidity the government is injecting into the market. Once we get a vaccine or some light at the end of the tunnel, that is when we expect that the rates will go up. But who knows when that will be? Lance, you’re on the property management side of things. How would you assess the current state of the rental apartment and housing market right now in the valley? Lance Brace: The prices are going up pretty quickly even through the last couple of months. A lot of my clients have opted to be more cautious, trying to keep their existing tenants in place. So, we haven’t been Subscriptions are $26 for 2 years, $14 for one year. Periodicals postage paid at Phoenix, AZ 85026.
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asking for big rental increases on existing rentals. But with new leases put on the market, we’re seeing increases upwards of about 10 percent on single-family houses. I have houses that 10 years ago I was leasing for $600 and are now leasing for $1,500. So that’s a huge increase, obviously, since the recession. How about forbearance on the rental scene? Lance Brace: I have seen an increase in tenants asking for payment arrangements to pay the rent for the month. We’re not charging late fees right now because of the governor’s executive order. When this all started, we made the decision that we didn’t want to participate in an eviction crisis, seeing as how many people were going to be out of work and especially in the lower-income rentals… I manage about 140 properties. I have had an increase in the number of tenants asking for payment arrangements, but so far, I’ve only had one go into the following month before they had made the full payment….We’re not seeing a huge increase in delinquency where tenants are not paying other than just making payment arrangements. Ben, what about on the rental side as far as nonpayment of rent is concerned? Ben Gottlieb: A lot of landlords and tenants have entered into payment plan agreements, whether it’s a partial payment plan or some other payment arrangement. Even though landlords technically have the legal right to file an eviction lawsuit during this period that the executive order is effective, many landlords are opting not to because they know that they cannot forcibly dispossess the tenant…. We’re seeing landlords wanting to be strategic on this, like Lance alluded to, and avoiding filing eviction lawsuits if they can try to work something out and not throw someone on the street during this difficult time.” What about for the landlords, what’s their protection? Gottlieb: On the federal level, the suspension of foreclosures in federal mortgages has been extended to Aug. 31. …On a statewide level, I think one of the big issues is that there is a $5 million rental assistance fund that the landlord could have gone back to get some assistance but that money has been slow to get out. One of the issues is that the stimulus money is not getting out to both landlords and tenants quick enough. What about commercial tenants? Gottlieb: On the commercial side, things
are a lot different when it comes to evictions. The Legislature enacted a landlordtenant statutory scheme that applies only to residential tenants and is designed to provide some extra legal protections for tenants. On the commercial side in most cases, a court eviction action is not even required. Typically, commercial landlords will execute on what’s called ‘a lockout remedy,’ where they merely just change the locks. The only time a commercial landlord would be hesitant to do that is if they’re concerned that the tenant may sue or have certain claims against the landlord for wrongful lockout or if the lease prohibits such a remedy. Furthermore, you had the commercial eviction executive order that expired back in May and that is now been expired for a while. But while that executive order was in place, a lot of commercial landlords and tenants worked out forbearance agreements and other types of arrangements that are still in effect as of today, even though they were worked out a couple of months ago. Mary, with commercial properties, have restaurants been staying alive? Mary Nollenberger: What we found in at least the first quarterly earnings call is that they were collecting somewhere between 50 and 75 percent of rent at that time. A lot of the restaurants that have had to pivot very quickly to take-out and delivery-only were affected but we also saw “the triple net investment category,” which are the quick-serve and drive-through restaurants – were posting year-over-year increases of somewhere between 27 and 32 percent. Then a lot of the sit-down restaurants put that into place very, very quickly and even began to develop family meal takeout packages and those that implemented strategies very quickly have actually survived the reopening quite well. What we also see is the domino effect as the landlords were provided forbearance on their mortgage arrangements with their lenders, they very quickly shared that without even being approached by tenants and offering to help them through at least that first 90-day window. We’ve helped implement strategies with landlords to say there can be a benefit to both sides here and we’ve negotiated blend-and-extend kind of situations where the landlord can add a forbearance onto the back end of the lease or can negotiate reducing base rent in exchange for an extension or a lengthening of the lease term by a couple of years and offering kind
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of a menu. Conversely what we’re seeing in some of these large-scale property owners is that there’s been a lot of opportunistic behavior on a part of some large national tenants that are just in a position where a Starbucks would say, “We’re just not going to pay rent” and walk and because they can. How do you see the market for commercial and office space in this region? Nollenberger: The East Valley for me is home, where I live and I do my work. The vacancy rate is just under 7 percent in those areas as opposed to other areas of Metro Phoenix that are in the 20 percent and 30 percent vacancy rates. Chandler and Gilbert are rising communities that are experiencing a ton of influx from California businesses. For example, State Farm in Chandler – they are recruiting from 42 markets to bring employees just into that tech corridor in Chandler. Chandler and Gilbert are experiencing growth at a rate that another municipality can’t compare to. Why is that? A lot of the tech business placement. The Tempe Town Lake has huge employment expansion; Chandler has huge expansion. Chandler’s population is slightly larger than Gilbert’s but Gilbert has been voted one of the nation’s friendliest cities to move to. There’s so much positive press for the East Valley and housing follows jobs. When people from out-of-state talk about what’s happening in Arizona specific to COVID, our East Valley cities are really in a different category because of the bulk of business and people wanting to escape the California tax situation. There’s incredible commercial tech and new jobs in the Apple Command Center and Far East Mesa in the Gateway District . There’s tons of jobs. And then Eastmark has provided a great option for affordable housing but in a community that is so vibrant. Queen Creek used to be the option for people that didn’t mind driving as far but wanted more affordable housing. Now every restaurant, every commercial retailer that wasn’t there before is there now. So you’ve got dining options, you’ve got shopping options. You’ve got entertainment options. The entire East Valley is just vibrant in a different way than any other area.
AUGUST 9, 2020
Public Notice CITY OF MESA, ARIZONA ENGINEERING DEPARTMENT REQUEST FOR QUALIFICATIONS (RFQ) NOTICE IS HEREBY GIVEN that the City of Mesa is seeking qualified Consultants for the following: ON-CALL CONSULTING SERVICES FOR TRANSPORTATION ENGINEERING SERVICES The City of Mesa is seeking qualified Consultants to provide design services and/or construction administration services on an on-call basis in the following area/category: Transportation Engineering Services. All qualified firms that are interested in providing these services are invited to submit their Statements of Qualifications (SOQ) in accordance with the requirements detailed in the Request for Qualifications (RFQ). Transportation projects may include roadway improvement projects, transportation alternative projects (i.e., bike, pedestrian, transportation enhancement, and safe routes to school projects) and commuter park-and-ride projects. Design components associated with these projects might include, but will not necessar-ily be limited to, grading, drainage, demolition, pavement, concrete, driveways, sidewalks, ramps, traffic signals, intelligent traffic systems (ITS), signage, striping, storm drain, street lights, landscaping, land-scape irrigation, aesthetic elements, pedestrian improvements/ amenities, bus shelters, surveying, bridges, block walls, environmental, and utility undergrounding. These projects also often include utility (including water and wastewater) upgrades, installation and/or rehabilitation in the same project areas as the transportationrelated improvements. Other tasks that a design consultant might be asked to perform include alignment studies, design concept reports, environmental studies, environmental clearances, cost estimating, legal descriptions and exhibits, geotechnical reports, drainage reports, utility coordination, and public outreach. Transportation projects differ from the other projects in that transportation needs drive the project and are the emphasis. From this solicitation, the Engineering Department will establish a list of on-call consultants for Transportation Engineering Services. This category is further defined below: A Pre-Submittal Conference will not be held. Contact with City Employees. All firms interested in this RFQ (including the firm’s employees, representatives, agents, lobbyists, attorneys, and subconsultants) will refrain, under penalty of disqualification, from direct or indirect contact for the purpose of influencing the selection or creating bias in the selection process with any person who may play a part in the selection process. This policy is intended to create a level playing field for all potential firms, assure
that contract decisions are made in public and to protect the integrity of the selection process. All contact on this selection process should be addressed to the authorized representative identified below. RFQ Lists. This RFQ is available on the City’s website at http:// mesaaz.gov/business/engineering/ architectural-engineering-designopportunities. The Statement of Qualifications shall include a one-page cover letter that contains current company/firm contact information including a valid phone number and email address, plus a maximum of 10 pages to address the SOQ evaluation criteria (excluding PPVF’s and resumes but including an organization chart with key personnel and their affiliation). Resumes for each team member shall be limited to a maximum length of two pages and should be attached as an appendix to the SOQ. Minimum font size shall be 10pt. Please provide one (1) electronic copy in an unencrypted PDF format to EngineeringRFQ@mesaaz.gov by 2:00PM on Thursday, August 13, 2020. Maximum file size shall not exceed 20MB. SOQ’s that are unable to be opened by City staff will not be considered for award. Submitters may request a single opportunity to verify that a test email and attachment are received and can be opened by City staff. Test emails must be sent to Engineering-RFQ@ mesaaz.gov. The City reserves the right to accept or reject any and all Statements of Qualifications. The City is an equal opportunity employer. Firms who wish to do business with the City of Mesa must be registered and activated in the City of Mesa Vendor Self Service (VSS) System (http://mesaaz.gov/ business/purchasing/vendor-selfservice). Questions. Questions pertaining to the Consultant selection process or contract issues should be directed to Michele Davila of the Engineering Department at Michele.Davila@mesaaz.gov BETH HUNING City Engineer ATTEST: Dee Ann Mickelsen City Clerk Published: East Valley Tribune, Aug. 2, 9, 2020 / 32233
to inform our patients that a third party may have had unauthorized access to information about some patients who were seen at the clinics. On April 27, 2020, an unauthorized individual obtained access to an NCP employee’s email account. NCP became aware of the unauthorized access on May 19, 2020 and took immediate steps to contain the incident. We terminated the unauthorized access to the email account the same day it was discovered and worked with a leading cybersecurity forensics firm to investigate this matter. As part of our investigation, NCP conducted an extensive review of the employee’s email account to determine if any emails contained personal information. As a result of that review, beginning on June 18 NCP identified emails containing the names, addresses, dates of birth, dates relating to the provision of medical services or the payment for services, medical history and diagnosis information, prescription information, health provider information, insurance numbers, email addresses, and medical record numbers for some of our patients. We also identified emails containing the Social Security numbers of two individuals and the financial account information of one individual for whom we do not have current contact information to send a personalized notification letter. At this time, we are not aware of any unauthorized viewing or misuse of our patients’ information. All available evidence suggests that the unauthorized individual’s purpose was to attempt to commit financial fraud against NCP—not to seek and obtain any personal information of patients. NCP sent notification letters by first class mail to all potentially affected individuals for whom we have up-todate contact information and have arranged to provide them with 12 months of identity protection and fraud resolution services through Experian. Any individuals who receive a notification letter from NCP or who might otherwise be concerned about identity theft are encouraged to regularly review statements from their accounts and to periodically obtain their credit report from one or more of the national credit reporting companies. Individuals may obtain a copy of their credit report once every 12 months by either visiting http://www.annualcreditreport.com, calling toll free at 1-877-322-8228, or completing an Annual Credit Report Request Form (found at https://www.consumer.ftc.gov/ articles/ 01 5 5 - f r e e - c r e d i t - r e p o r t s ) and mailing it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. For questions about identity theft, credit monitoring, and how to keep information secure, patients can visit this website: http://www.consumer.ftc.gov/ topics/identity-theft. Individuals who received care at one of the clinics and have not received a notification letter may call (833) 281-4826 toll-free to determine whether their information has been identified as being
Public Notice Important Notice for Patients of National Cardiovascular Partners, Cardiac Cath Lab of Phoenix, Arizona Cardiovascular Institute, Cardiovascular Center of Mesa, and Cardiovascular Therapeutics of Mesa July 17, 2020 At National Cardiovascular Partners (NCP) and our partnering clinics, we take the privacy and security of our patients’ information seriously. NCP is a managing partner of Cardiac Cath Lab of Phoenix, Arizona Cardiovascular Institute, Cardiovascular Center of Mesa, and Cardiovascular Therapeutics of Mesa in Mesa, Arizona (the clinics). We are providing the following information
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involved. Published: East Valley Tribune, July 26, Aug 2, 12, 2020 / 32042
Public Notice AT&T Mobility, LLC is proposing to construct a new telecommunications facility located near 118 South Roosevelt Road, Mericopa County, Mesa, AZ 85201. The new facility will consist of replacing an existing 35-foot light pole with a new 35-foot light pole topped with antenna for an overall height of 40-feet. Any interested party wishing to submit comments regarding the potential effects the proposed facility may have on any historic property may do so by sending comments to: Project 6120006281 - JCR EBI Consulting, 6876 Susquehanna Trail South, York, PA 17403, or via telephone at (815) 302 9118.
Public Notice AT&T Mobility, LLC is proposing to construct five small-cell telecommunications facilities within Phoenix, Maricopa County, Arizona. Each facility will be constructed to support a top mounted antenna(s) and associated equipment. Project# 6120005387 will be located at 18113 North 68th Street and will consist of a 40-foot steel light pole. Project# 6120005390 will be located approximately 40 feet southeast of the intersection of E. Bell Road and N. 26th Street and will consist of a 37-foot steel light pole. Project# 6120005391 will be located at 3104 East Acoma Drive and will consist of 41-foot steel light pole. Project# 6120005392 will be located at 3249 East Claire Drive and will consist of a 35-foot steel light pole. Project# 6120005394 will be located at 14600 North 25th Place and will consist of a 35-foot steel light pole. Any interested party wishing to submit comments regarding the potential effects the proposed facility may have on any historic property may do so by sending comments to: Project #’s listed above- MH EBI Consulting, 6876 Susquehanna Trail South, York, PA 17403, or via tele-phone at (785) 760-5938.
AUGUST 9, 2020
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