Commercial
Increase In Commercial Property Values May Signal That The Worst Is Over
(NuWIRE INVESTOR) - US commercial real estate prices as measured by Moody’s Investors Service/Real Estate Analytics, Commercial Property Price Indices (CPPI) increased for the second month in a row in December, rising 4.1%, as the commercial real estate (CRE) market continues to face several challenges, such as the rising tide of defaults and subsequent foreclosures.
In Scottsdale, Ariz., CRE developer International Capital Partners (ICP) is facing foreclosure on two of its premier office buildings, the Phoenix Business Journal reports. Camelback Tower and Camelback Executive Park, located in western Scottsdale, are scheduled for trustee sale April 1. The properties were intended to be a part of the District at Camelback mixed-use development, along with two other buildings, the Journal said.
It’s the latest in a string of property disputes ICP has dealt with since the credit crisis began. ICP Chairman Tom Donahue told the Journal his firm is in negotiations on a number of Arizona properties, including the Camelback buildings, which he said he believes the company can keep its hands on. The firm, while headquartered in Arizona, also has offices in Colorado, Montana, Texas and London.
When housing collapsed in the greater Phoenix area, CRE’s failure wasn’t too far behind. Scottsdale Mayor Jim Lane said CRE issues aren’t limited to ICP’s troubles.
“There’s a few thousand developers who have encountered problems. My role is not to criticize. The fact is that, at the height of the market, developers could hardly make a mistake,” Lane told the Journal.
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