Author Archives: Richard Chapin

About Richard Chapin

After being born and raised on a farm in eastern South Dakota, I have been living nearly 2 decades in Arizona, 17 of those years in the East Valley of the Phoenix area, and over 2 years in Payson, the gateway to the Rim Country where I have enjoyed outdoor activities like hiking and mountain biking. Having spent most of my adult life engaged in sales and marketing as well as a decade of preparing income tax returns for small businesses, individuals and real estate investors, I have for many years had knowledge and interest in real estate as it relates to rental properties, tax deferred 1031 exchanges, investment real estate held in self-directed IRA's and such, so it seemed a natural fit to become involved in commercial real estate sales and leasing.

Payson Ammo Factory Drops Plans To Expand

After months of work on plans to build an industrial park at the end of the scenic Granite Dells Road, but an expanded Payson ammo factory drops plans to expand.

 

The town worked busily with Advanced Tactical Armament Concepts (ATAC) to bring to fruition a planned 100,000-square-foot “modern campus, equipped with clean, lean and green manufacturing equipment. The expansion will add 150 sustainable manufacturing careers including research, engineering and training professionals according to Antich, founder and managing partner of ATAC, last fall was very vocal of his support of the efforts of the mayor to keep his expanding business and jobs in Payson.

 

Antich had said last fall, many other towns and states had approached him about relocating to their communities. “We had a $200 million loan fund from the state of Texas at 3.5 percent interest, probably $4 million in just, here, please come. Tax abatements for 10 years and free land at some places,” Antich said in August. “But I don’t want to leave here. Business-wise, money-wise, greed-wise, why wouldn’t I go there? … I want to be here, we want to be here, our employees want us to be here.”

Not everyone supported those expansion plans.

According to the Payson Roundup as recently as last week that Mayor Kenny Evans confirmed the project is no more.

He said the turmoil created by a dozen residents fighting the project scared ATAC off. He said he hopes ATAC does not get up and leave the town altogether after the brouhaha, taking with it 70 jobs and sales tax revenue.

 

Jim Antich, founder and managing partner of ATAC, would not respond to the Roundup’s repeated requests for comment on the issue.

 

It would appear that as a result of the voices of a dozen people, the ATAC expansion plans and jobs may very well go the way of Ruger 27 years ago.

 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial and/or its affiliates.

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.









University in Payson, One Step Closer.

Appraiser put the price of the 253 acre forest site for a planned university in Payson at $4.1 million, well below expectations, putting the plan for a university in Payson one step closer.university in payson

 

With the appraisal complete, backers of the university plan to meet with Arizona State University representatives to share the results of an analysis of the cost of building the university on each of proposed sites.

 

The proposed sites including the 253 acre forest service site near the Payson Ranger Station,  a site across the highway next to Gila Community College, a +/- 80 acre site along Tyler Parkway and a +/- 113 acre site on the Payson Golf Course.

 

The Forest Service site and the golf course site remain the two most seriously considered alternatives, and with the appraisal for the Forest Service location coming in well below expectations the price tags for the land are now similar.

 

While the Forest Service site would still likely have higher building costs due to the terrain and the need to extend utilities, the golf course site has potentially flood control and drainage problems in addition to neighborhood opposition.

 

A 4 year University in Payson would  definitely have an impact on Payson and the surrounding Rim Country as it would bring in new industry, people and jobs.

 

I believe a university would bring vitality to the town of Payson, bring in young people, give the young people of this community more opportunies.

 

The development of new commercial businesses and housing will bring more jobs to our community and give the community a jump start.

 

Other potential benefits would include expansion of bike trails and alternative transportation; enhanced cultural opportunities available to the residents of Payson and the Rim Country, expansion of retail, restaurants and other services offered in our community.

 

If you too are considering opening or relocating a business to Payson, let me know how I can help you with your commercial real estate needs.

 









 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial and/or its affiliates.

 

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

Payson Arizona Voters Want More Businesses and More Jobs.

Attracting more businesses that bring more jobs is apparently what residents of Payson Arizona want based on last weeks election results.Town of payson arizona

 

Despite Payson having seen a significant increase in new business licenses in the past year,  mayoral challenger Randy Roberson had launched a tenacious attack on the incumbent’s economic development efforts. His criticism even included the effort to keep

one of Payson’s only manufacturing firms,ATAC, LLC, from leaving Payson.

 

Interestingly, Jim Antich, founder and managing member of  ATAC,LLC, demonstrated his support for the mayor where he wrote recently in the Payson Roundup –  Wow, I guess “The Voice of Rim Country” i.e. Roberson, Lockhart and Brown’s idea of new economic development for Payson would be an additional title loan and check cashing business or possibly a new “medical” marijuana distribution business on Highway 87 instead of sustainable manufacturing careers … go figure.

 

Payson, please vote for Mayor Evans, Ed Blair, Fred Carpenter and Su Connell; help us ensure our future remains in the Rim Country.

 

The employees of ATAC and their families want to graciously thank Mayor Evans. Without Mayor Evans’ endless compassion, his selfless dedication, his visionary leadership and his worldwide political relationships, ATAC would have gone the way of Ruger 27 years before and bypassed Payson.ambitious plans to support future development by expanding the town’s water supply, and even Evans’ hands-on efforts to recruit new businesses.”

 

Mayor Evan has said work on the water supply and job producing businesses like a university and the industrial park have laid a strong foundation for Payson’s growth to a diverse population of 40,000. He has also said that he has generally worked 60 hours a week or more during his whole tenure as mayor to lay that groundwork.

In addition to the efforts to keep the expanding ATAC. LLC from leaving Payson, a number of new business have opened in Payson for example, just within the past few weeks we have seen the opening of Scrubs And More Boutique, House of Color, Pirate Cove and Native Grill & Wings to name a few.

 

Well the people of Payson have spoken and apparently they want more businesses and more jobs to continue to open in Payson, mayor Evans collected 55 percent of the votes cast compared to 45 percent for Roberson.

Payson council incumbents Fred Carpenter and Su Connell both received enough votes to avoid a November runoff.


If you too are considering opening or relocating a business to Payson, let me know how I can help you with your commercial real estate needs.

 









 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial and/or its affiliates.

 

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

Are You Trying to be a “Jack Of All Trades” in your Business?

Being a “Jack of all trades and a master of none” is not a good strategy your business.

Payson Arizona

I frequently talk to business owners who have paid the penalties “literally”, of hiring one of their regular “vendors” to provide additional services for them that was obviously outside the “vendors” area of expertise.

 

We are all in business to make money and it is difficult to turn down business form a regular customer/client and while meeting every need of every customer may sound customer-centric, that approach often leads to not serving any customers well.

 

Being in the real estate industry, many people think real estate is real estate. All real estate is not the same. Can you think of anything that a commercial building has in common with a house? If you said they both have at least one bathroom I urge you to think how the bathroom in a commercial building resembles the bathroom in your home. Right try again.

 

Well not only are the features between a house and a commercial building different, but the marketing strategies between residential and commercial real estate is also vastly different.

 

I am a commercial real estate agent, I do know however, many very qualified residential agents, so even though people give me strange looks when they ask me to help them buy or sell their home, and I refer them to one of those residential agents, even family members.

 

Even the largest of companies can’t afford to chase every dollar—only the dollars that align with their business strategy.

 

Let me know how I can help your with your commercial real estate needs.

 









 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial and/or its affiliates.

 

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

Office Vacancy Down, Office Asking Lease/Rental Rates Up!

Office vacancy in the Phoenix market dropped to an average of 17.8 percent from 18.8 percent at the end of the fourth quarter of 2013. According to CoStar Group, a Washington, D.C.-based research firm.

 

The average asking rental rate for all classes of office property in the Phoenix office market was $20.42 per square feet a .06 percent increase from the end of the fourth quarter of 2013.

 

Closer to home, here in Payson Arizona, Costar tracks the current Office vacancy rate in Payson, at 29.5 percent, up from 25 percent in the 4th quarter of 2013.

officecondos in payson near the Payson Reginal Hospital

Office Condos in Payson AZ

 

Office lease/rental asking rates in Payson for the current quarter of 2014 is $13.84, up just under 5 percent from the fourth quarter of 2013.

 

Let me know how I can help you with your commercial property management, sales and leasing needs.

 









The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial and/or its affiliates.

 

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

Where the Heck is Payson Arizona?

Payson Arizona, located in the heart of Arizona offers much more than it’s western rodeo history.Payson Arizona near Mogollon rim

 

Payson Arizona, is located about 90 miles from anywhere, 90 miles from Phoenix, 90 miles from Showlow, 90 miles from Flagstaff and 91 miles from Winslow. You really can’t get much closer to the center of Arizona than Payson.

 

Payson is located at the base of the 7000 foot high Mogollon Rim and the 200 mile long largest ponderosa pine forest in the world. At it 5000 foot elevation, Payson enjoys a very pleasant climate with four mild seasons.

 

In addition to hosting three major rodeos every year, Payson and the Rim Country offer many outdoor activities including, camping, fishing, hunting and mountain biking making Payson one of Arizona’s jewels.

 

While Payson along with many other areas in the county has experienced stagnation since the housing bubble, there has been renewed optimism in the past year with the start of construction of the pipeline that will double the towns water supply making the Rim Country one of the few areas in the state of Arizona with enough water.

 

Additionally with the recent announcement of hundreds of new home planned in the pipeline and the hope of putting the finishing touches on the long awaited proposed building of a 6000 student university in Payson.

 

The hopes of developing a year round economy with good, middle class jobs and affordable housing seem to be coming into focus, making Payson Arizona more than just “Arizona’s cool mountain town”.

 

Let me know how I can help you with your commercial real estate needs.









 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial Properties and/or its affiliates.

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

“Superfund site” in Payson, cleaned up according to The Arizona Department of Environmental Quality

The Arizona “Superfund site” in Payson, cleaned up according to officials at The Arizona Department of Environmental Quality Department of Environmental Quality (ADEQ), they have removed toxic dry cleaning chemicals that contaminated the groundwater at Cherry and Tonto well sites.

Officials believe, back in the 1980’s, Grand Way Cleaners, in the Bonanza Square shopping center, released chemicals into the sewer system between 1984 and 1988, releasing toxic sludge into the sewer system, contaminating the drinking water to dangerously high levels.Bonanza Plaza in Payson AZ

 

In 2000, the ADEQ added to the registry the Payson site, bounded by West McKamey Street to the north, South Colcord Road to the east, South Meadow Street to the west and West Frontier Street to the south.

 

In 2000, the ADEQ began a comprehensive groundwater monitoring program and tested additional wells in the area. Since 2006, the concentration of contaminants has remained low.

 

The Payson Roundup recently reported that the Arizona Department of Environmental Quality announced it had completed cleanup work, at the “superfund site”, four years ahead of schedule, according to ADEQ, original estimates.

Let me know how I can help you with your commercial real estate needs.

 









 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial Properties and/or its affiliates.

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

Why Limit Yourself to Only One Commercial Real Estate Agent?

One might think having multiple commercial real estate agents competing with each other to locate the “right” commercial property for you to buy or lease would increase your chances of success, but is that the case?20131206_081927

 

I sometimes talk with business or property owners who are reluctant to make any long term commitment with one agent, which is understandable as what if they later find themselves unhappy with their representation and many believe they have the best chance of finding a property if they speak with ten or so agents.

 

What many of these business or property owners don’t understand is that most (all that I am aware of) serious commercial real estate agents all have a premium Loopnet account and CoStar, so they all have access to all the same properties.

 

This being the case, by not committing to have a commercial real estate agent to exclusively represent them, they are actually less likely to find that “right” property.

 

Why do I say that, well put yourself in a real estate agents shoes for a moment.

 

If you were a real estate agent and you had 20 investors or tenants that called you and only two of them are willing to commit to work with you exclusively, who are you going to spend most of your time and effort working to service?

 

Would you, as an agent, run around town trying to get the best deals with clients that are not loyal to you, or concentrate on those buyers or tenants who have selected you to represent them?

 

Yes, in selecting a commercial real estate agent, you need to choose carefully, but you need to choose.

 

Let me know how I can help you with your commercial property needs.









 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial Properties and/or its affiliates.

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

Retail Vacancy Down, Retail Lease/Rental Rates Up!

Retail vacancy on a national basis dropped to an average of 6.7 percent from the fourth quarter of 2012 to the fourth quarter of 2013. That’s the lowest rate since 2008, according to CoStar Group, a Washington, D.C.-based research firm.

 

The most recent National Retailer Demand Monthly report from RBC Capital Markets stated that chain retailers feel enough optimism about consumer demand in 2014.

While the declines in retail vacancy from quarter to quarter have been slim, the dropping in vacancies since 2011 amounts to “pretty good improvement,”  “It’s enough that now we see rent growth. The market went from totally tenant-dominated to more balanced, and there’s better productivity in retail storefronts than in the past.” according to Ryan McCullough, a real estate economist with CoStar.

Closer to home, here in Payson Arizona, Costar tracks the current Retail vacancy rate in Payson, at 7.9% ,down from 9.3% in the 4th quarter of 2012. with positive net absorption for 2013 and the 1st qtr of 2014.

Payson Retail Vacancy rates Source: CoStar

Payson Retail Vacancy rates Source: CoStar

 

Retail lease/ rental rates while down significantly from the 2nd qtr of 2009 are higher than they were in the 4th qtr of 2012 as well.

 

Let me know how I can help you with your commercial real estate investment needs.









The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial Properties and/or its affiliates.

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

The Builders are Coming Back

Multi-family and single family home builders are coming back to Payson, and not a moment too soon. The housing inventory in Payson is low. I have read of instances of people having difficulty even finding a place to live.

Payson AZ multi-family vacancy rates

Payson AZ multi-family vacancy rates

 

 

CoStar puts multi-family vacancy rate in Payson at 0%. With rates of course increasing.

 

If you are an owner of commercial property you may not see the importance of these new developments to you. You may also wonder, since I focus on commercial properties only, why am I so excited about all these new residential building projects starting up again?

 

A couple of reasons are:

 

It’s much easier to attract a business to relocate or open a branch in Payson and purchase or lease your property if the cost of rent or purchasing a home is within reach for the employees of that business.

 

Another reason is the abundance of affordable housing will enable young people to be able to live in Payson, which will better stimulate the local economy as young growing families have a tendency to spend more of their disposable income compared to older empty nesters who are more inclined to save their money. Causing an opportunity for more new businesses to locate here as well.

 

Commercial builders will no doubt eventually follow, obviously if you have commercial property you would like to sell or lease, an aggressive targeted marketing campaign is important to your success.

 

Simply listing and advertising a commercial property similar to how you would to sell or rent a house, might work eventually, but if “eventually” is too long, you may be competing with nice shiny new commercial buildings in the market.

Let me know how I can help with your commercial real estate needs.









 

 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial Properties and/or its affiliates.

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult a legal and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.