TUCSON, Arizona – Tucson-based, Bourn Companies (Don Bourn, manager) and its affiliate, FHM Partners, LLC have announced the acquisition of Foothills Mall from Columbus-based Schottenstein Property Group, Inc. (SPG).

Bourn has had past experience with the 514,379-square-foot mall, owning it back in 1994 when it was at 12% occupancy and then selling it in 1999 at 95% occupancy, after repositioning it into its current format of outlet and promotional retailers, restaurants and a theatre – the first Renaissance.

Since then, the mall has gone through several owners, the latest being SPG, a vertically-integrated owner, operator, and redeveloper of neighborhood shopping centers throughout the United States

Foothills Mall faced difficulty in 2016 after nearly two decades of  success with the outlet mall concept, after the opening of the Tucson Premium Outlets in nearby Marana. Within six months of the outdoor mall opening, major tenants such as Saks Fifth Avenue’s Off Fifth outlet, Old Navy’s Outlet, Hanes and Nike Factory Store closed or announced plans to close their existing Foothills Mall locations in favor of a store at Tucson Premium Outlets.

Despite these departures, the Foothills Mall’s occupancy rate is approximately 73%, according to a prepared statement from Bourn, with many tenants performing well. These tenants will provide a solid foundation for redevelopment….again, a second Renaissance.

The full 750,000-square-foot center sits at the northwest corner of La Cholla Blvd and Ina Road in upscale northwest Tucson. Mall tenants include Barnes & Noble, Ross Dress for Less, buybuyBaby and a 15-screen Lowes Cinema, alongside a 209,000-square-foot Super Walmart, Applebee’s and Outback Steakhouse on the perimeter of the mall.

“This property is a terrific large-scale in-fill location, strategically located to serve northwest Tucson, including Marana and Oro Valley. This is A+ real estate,” Don Bourn, President of Bourn Companies said in the statement.

George Larsen, CCIM, of Larsen Baker, also a Tucson retail developer says, “Bourn is the perfect owner for this property, if anyone can turn it around, it’s Bourn!  Being local is important to understanding the property and Bourn has contact all the necessary national retailers. The mall will probably be demalled into more open-air shopping. It could also be redeveloped into a mixed-use, similar to the metamorphosis that took place at the El Con Mall – a more lifestyle center.”

Bourn said in a statement, “It won’t be overnight, the change may take two to four years.”

Terms of sale were undisclosed. However, public records indicate the property was refinanced in 2006 with an $81 million, 10-year fixed rate first mortgage bearing 6.08% interest, and the property was marketed per appraisal and note value.

For more information or leasing, Alan Tanner with Bourn Companies should be reached at 520.323.1005.

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[mepr-show rules=”58038″]Buyer assumed the note as a deed in lieu for $17.5 million ($34 PSF) due Dec. 16, 2017 with optional extensions for two additional 6 month periods.[/mepr-show]

The National Association of Home Builders/Wells Fargo builder sentiment index released Thursday reached its highest point in 11 years. The index climbed seven points for December to a reading of 70. Any figure above 50 indicates that builders view sales conditions as positive. The index last reached 70 in July 2005, when the housing boom was still in full-force before a wave of subprime mortgage defaults helped trigger the Great Recession.

On the expectation of tax cuts, regulatory changes and higher budget deficits under President-elect Donald Trump, the yield on the 10-year U.S. Treasury note has risen. This has increased borrowing costs for consumers.

In the week ending Friday, the average rate on the 30-year fixed-rate mortgage rose to 4.16 per cent from 4.13 per cent the previous week, mortgage company Freddie Mac reported. A year ago, the benchmark loan rate averaged 3.97 per cent.

US home construction fell in November after October surge

Although builders pulled back on constructing homes in November, after ground breakings surged in October to the strongest pace in more than nine years.

Housing starts fell 18.7 per cent last month to a seasonally adjusted 1.09 million, The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced Friday. The decline likely reflected a natural regression after home construction soared 27 per cent to 1.34 million homes in October, the highest level since July 2007. Homebuilders appear to be entering 2017 with renewed confidence, despite the potential setback of rising mortgage rates. Ground breakings have risen 4.8 per cent so far this year. Most of the gains came from single-family houses, as apartment construction slipped.

Residential building figures can be volatile on a monthly basis. November housing starts plunged in the Northeast and West, while falling at less dramatic rate in the Midwest and South.

Building permits fell 4.7 per cent last month to an annual rate of 1.20 million. This is 15.4 percent above the revised October estimate of 1,054,000 and is 25.0 percent above the November 2015 rate of 973,000.

Single-family housing completions in November were at a rate of 774,000; this is 3.3 percent above the revised October rate of 749,000.  The November rate for units in buildings with five units or more was 432,000. During the past 11 months, permits have edged up just 1.1 per cent as construction firms appear to be moving away from apartment complexes

A healthy bout of hiring has increased demand for homes. Through the first 10 months of this year, sales of new homes are 12.7 per cent higher than in the same stretch last year. The strong demand has helped lift prices, pushing the median sales price of new U.S. homes to $304,500 as of October.

To read the full report: https://www.census.gov/starts

Neighborhood with all-new floor plans scheduled to open in late 2017

GOODYEAR, Ariz. –  Maracay Homes, a wholly owned company of the TRI Pointe Group (NYSE: TPH), closed on a $3.8 million purchase of 93 homesites for courtyard cluster single-family detached homes in the Rio Paseo Cottages community on West Encanto Boulevard, north of Interstate 10, in Goodyear, Arizona.

David Cornwall, Chris Barr and Joseph Schram of Quantum Holdings, LLC, were the sellers’ representive, WQC Rio Paseo Investors IV, LLC. Phil Clark was the broker who brought the opportunity to Maracay.

Rio Paseo Cottages was orignially developed prior to the recession and already has 75 completed homes within the community. Although Maracay took an assignment of the original floor plans, the Arizona homebuilder is designing a completely new floor plan series to appeal to the unique preferences of today’s Millennials, Gen-Xers and Baby Boomers, who prefer open concept, indoor-outdoor living and trendy finishes.

Ranging from 1,650 to 1,950-square-feet and priced from the mid $200,000s, the fresh and current floor plans will provide affordable, single-family detached homes below the FHA loan limits while at the same time, featuring spacious great rooms, walk-in kitchen pantries and front courtyards. Maracay’s Rio Paseo Cottages will also offer FlexDesign® options tailored to meet each family’s individual needs. All homes are Energy Star® certified and include Maracay Homes’ Living Smart® program for high performance and energy efficiency. The community is scheduled to open for sales in the fall of 2017.