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01/24/10
Tax-lien auction may be lucrative
Filed under: General, Real Estate
Posted by: Lillian Wong @ 1:27 pm

This year’s Maricopa County property-tax-lien auction is shaping up to be the biggest ever and potentially more lucrative for investors than others in recent years.

It’s a prime example of how misery so often rubs elbows with opportunity in the Phoenix-area real-estate market.

Rampant home foreclosure and plummeting property values caused a dramatic spike in unpaid property taxes during the 2008 tax year. On Feb. 8, those unpaid taxes will be sold to investors hoping to earn interest on them until the property owners pay up.   More…



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Patience is key to filing your taxes
Filed under: General, Business, Finance
Posted by: Lillian Wong @ 1:18 pm

If you felt like devising a slogan for the coming income-tax season, a good one might be: “Patience required.”

Filing a tax return can be a daunting exercise even in normal years, but Congress has added several new wrinkles that undoubtedly will confuse people. These include everything from new tax breaks for college expenses to those for energy-efficient home improvements and new-vehicle purchases.  more…



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American Indians moving ahead with high-profile projects on area reservations
Filed under: General, Real Estate
Posted by: Lillian Wong @ 1:01 pm

Phoenix Business Journal - by Jan Buchholz Friday, January 22, 2010

 

Development has ground to a standstill across much of metro Phoenix, but brisk construction activity on some American Indian lands tells a different story.

Business has never been better for the Salt River Pima-Maricopa Indian Community, long considered one of the nation’s most aggressive and innovative American Indian economic developers.

The Gila River Indian Community also is doing well, recently celebrating the grand opening of its second major hotel, the $200 million Wild Horse Pass Hotel & Casino. The entertainment and hospitality district near Interstate 10 and South Maricopa Road now includes two hotels, a casino, spa, rodeo facility, equestrian center, the Western replica town of Rawhide, Firebird International Raceway and five restaurants.

Although the tribes rely on substantial revenue from gaming operations, economic development officials from both communities say they started diversifying their economic models back in the 1960s, long before they started building casinos on tribal lands.

None of the tribes contacted for this story would disclose specific financial data on casino operations.

“Way before gambling, our tribal leaders were looking at how to generate income, and they started with the Lone Butte Industrial Park, which is one of the top Native American industrial parks in the country,” said Robin Fohrenkam, Gila River’s economic development planner.

The industrial park — bounded by Kyrene Road, Interstate 10, Chandler Boulevard and Queen Creek Road — is home to 75 businesses, mostly light industrial and manufacturing facilities. The tribe also operates two golf courses, a telecommunications business, and a sand and gravel company.

Construction and raw materials enterprises represent a significant part of the Salt River model, too: The community purchased Phoenix Cement in 1987.

“Our economic goals are to be diversified and not have a single reliance on gaming income,” said Quannah Dallas, economic development manager for the Salt River community.

In 1989, Scottsdale Pavilions opened at Indian Bend and Pima roads. The 1.1 million-square-foot power center, built by a nontribal developer on leased land, was a unique deal that caught the attention of real estate and retail interests across the country.

“The community was really being innovative,” Dallas said.

The Pavilions morphed into other land-lease and development agreements, including a Walmart to the south and several business parks, including Riverwalk Arizona, Pima Center and Chaparral Business Park.

Unlike many rural tribes, the Gila River and Salt River communities leverage their proximity to the Phoenix metro area. Both view their hospitality and gaming enterprises as destination venues for local and out-of-state tourists.

Major league debut

More tourists will be visiting the Salt River reservation with the opening of the Talking Stick Resort this year and completion of the 11,000-seat, $23 million stadium that will become the Cactus League home of the Arizona Diamondbacks and Colorado Rockies.

Diamondbacks President and CEO Derrick Hall said the Salt River community was selected for the new spring training primarily because of the location and that it would be built without taxation.

“We had several attractive options that came as a result of the RFP process, but in the end, the Salt River Pima-Maricopa Indian Community clearly stood out,” he said. “We have been impressed with the progressive nature of the community, and its desire to create an entertainment district around the complex. This, along with the adjacent and existing Scottsdale Pavilions shopping center, will enhance the fan experience, which we anticipate to be second to none.”

The Salt River community counts the positive impact of the stadium in exponential terms.

“We saw this as something that would drive more development in the corridor,” said Levi Long, the tribe’s media relations specialist.

Increased traffic in the area should bring new vitality to the aging Pavilions, which has been hurt by retailers that relocated or went out of business. De Rito Partners, which purchased the center in 2008, is engaged in a major remodel and is working to bring new restaurants to the site now that the tribe has approved liquor sales.

Gaining attention

The Salt River and Gila River communities are not the only Arizona tribes getting in on the economic development action.



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Remember basics as your 401(k) rebounds
Filed under: General, Finance
Posted by: Lillian Wong @ 12:12 pm

Millions of 401(k) accounts have made up lost ground over the past 10 months. Helped by a stock-market surge and continued contributions, the question now is how to keep from backsliding when market momentum slows or reverses.

With the market up significantly since it hit its low in March, the rapid rise in stock prices has many believing that a sharp downturn is likely. The last thing investors can stomach is the market reversing itself and snatching more of their retirement money.

What to do now?  more…



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Mesa mayor upbeat amid Gaylord cues that hotel may stall
Filed under: General, Real Estate
Posted by: Lillian Wong @ 12:08 pm

An artist's rendering shows the proposed Gaylord hotel in Mesa.

An artist’s rendering shows the proposed Gaylord hotel in Mesa.

 

Mayor Scott Smith is still optimistic about Mesa’s Gaylord hotel despite a gloomy e-mail sent recently by Colin Reed, president of Gaylord Entertainment Co.

The 1,200-room hotel, which would be Arizona’s biggest, and an attached convention center are part of a $1 billion project announced in September 2008 to kick off development on the former General Motors Desert Proving Grounds.

Another upscale resort, a championship golf course and classy retail outlets were also to be included.  more…



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Struggling Montelucia resort is purchased by lender
Filed under: General, Real Estate
Posted by: Lillian Wong @ 12:00 pm

David Kadlubowski/The Arizona Republic

The financially troubled Scottsdale resort where President Barack Obama lodged is in the hands of its former

mortgage lender - at least for now.

A trustee’s-sale auction for the InterContinental Montelucia Resort & Spa, 4949 East Lincoln Drive, generated only one third-party offer, from the property’s developer and former owner, Crown Realty & Development Inc.  more…

 


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Foreclosures, short sales bring tourists seeking cheap houses
Filed under: General, Real Estate
Posted by: Lillian Wong @ 11:49 am

Phoenix Business Journal - by Mike Sunnucks Friday, January 15, 2010

 

Arizona is a popular tourist destination — mostly for the Grand Canyon, golf and warm weather.

But a new trend is emerging in state tourism, and it’s not based on one of Arizona’s strengths.

In foreclosure tourism, out-of-towners take mini-vacations in the Valley to shop for foreclosure and short-sale bargains as investments, second homes and even primary residences.

“They seem to lay in the sun at their resort and make phone calls to attorneys and lenders, trying to see if there is a deal to be had,” said Jordan Rose, managing partner of Rose Law Group in Scottsdale, which specializes in real estate and often deals with out-of-state investors.

Rose said she’s received dozens of calls from foreclosure tourists from New York, New Jersey and the Midwest who are looking at suburban markets that have seen home value declines and a substantial number of foreclosures and short sales.

“It seems as if ‘Fodor’s’ is suggesting that one of the things you do on a holiday to Phoenix is buy a foreclosed house — like be sure to try the cactus jelly, see the Grand Canyon and, by the way, don’t dare leave without a cheap house,” Rose said.

“We thought it was an odd submarket niche, as we have been getting calls from out-of-staters who want ultra-fast due diligence and contract review in order to do a quick close on a foreclosure,” she said.

Rose said out-of-state investors and buyers comprise the bulk of her real estate business right now.

“Nearly all the buyers we talk to — dozens over the last two weeks — have at least out-of-town financial backers. Money is trying to flow into Arizona right now,” she said.

Joseph Maggiore, a Realtor with Realty Executives in Scottsdale, said most of the visiting investors he’s dealing with are focused more on business than pleasure.

“They are structuring their visit around touring a predetermined set of listings, based on weeks or months of searching and refining the available properties,” he said. “The goal that I have seen has really been to get in; take a look; identify the right property, possibly with a backup or two; make a move on it; and then head home after writing the offer.”

Maggiore said he’s seeing buyers from Canada and the Midwest, along with an influx of interest from the Pacific Northwest, looking for quick deals.

He said such buyers now make up about one-third of his business.

Most resort and tourism officials contacted for this story weren’t specifically aware of the foreclosure tourism trend. But Kirsten Schaefer, public relations director for the InterContinental Montelucia Resort & Spa, said it is on that Paradise Valley resort’s radar.

“We eventually want to create partnerships with local real estate agents for both foreclosure tourists and relocation visitors,” Schaefer said.

Phoenix is one of the hardest-hit housing markets in the U.S., ranking high in foreclosures, price declines and underwater mortgages. About 41,000 homes were foreclosed on in the Phoenix market last year — a record, according to Arizona State University. Those foreclosures and short sales are piquing the interest of investors and second-home buyers looking for bargains.

But the fallout is not all good, according to ASU economist Jay Butler.

He said foreclosure and other bargain-basement sales drive down home values.

“Investment interest is being driven by the anticipation that home prices will rise again in the next few years. While lower prices can greatly improve affordability, they can adversely impact many owners and potential sellers who are watching their limited equity erode as prices decline to — and even below — existing debt level,” he said.

Get Connected

Rose Law Group: www.roselawgroup.com

Joseph Maggiore: www.joemaggiore.com

InterContinental Montelucia Resort & Spa: www.icmontelucia.com

Most Foreclosures

States with the largest ratios of homes in foreclosure:
1.    Nevada    1 in 119
2.    Florida    1 in 165
3.    California    1 in 180
4.    Arizona    1 in 186
5.    Idaho    1 in 259



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