PHOENIX, ARIZONA (June 8, 2017): NAI Horizon Senior Vice President Rick Foss represented the seller and the buyer in the $965,000 industrial property acquisition at 5230 S. 39^th St., in Phoenix.

The seller was DJA Fiorano Holdings, LLC of Scottsdale, Ariz. The buyer was McDowell Sonoran Holdings, LLC.

“The buyer, Stone Tool Supply, intends to occupy the property once renovations are completed,” Foss said. “The facility will be utilized as the showroom/will call of their products as well as their operations and product distribution center.”

The buyer of the 10,054-square-foot property is a tool wholesaler. The seller is the owner of the Russo and Steele Auto Auction. The freestanding building features a 7,300 SF warehouse and 2,700 SF office. It has 16-foot clear ceiling height and a 21,630 SF lot that is fenced and secured.

The best reason to regularly check and compare property and casualty insurance policies is a concept that you have probably experienced in other consumer purchase experiences: price optimization.

How does this work? Consider the price of a Las Vegas hotel room on New Year’s Eve, compared to a Tuesday night in July. Another example is the street price of a sports ticket when the home team is on a winning streak compared to when it’s on a losing streak. In each case, market conditions set the price rather than the cost of the product. You take advantage of the bargain when demand seems low for the product or service.

For insurance policy costs, price optimization causes you to pay a higher price for a policy because of years of loyalty or simply convenience. Over time, the insurance company may seem to “sweeten” the deal by offering a discount on a new product or to bundle home and auto policies. Price optimization makes loyalty a penalty for you when fees or other charges added to the cost of insurance results in higher costs to you. You may be wise to treat the offer to bundle or to pay an additional fee as a good reason to start some comparison shopping.

The National Association of Insurance Commissioners (NAIC) has been studying the issue of price optimization because consumer insurance advocacy groups believe that the use of price optimization in insurance policy prices may be unfairly discriminatory.  For the technical definition, price optimization relies on consumers’ price sensitivity in determining the price paid for an insurance policy or the insurance rate for insurance coverage.

Translation: price optimization means that the insurance company has determined that you as the consumer will stay with the insurance company only if the price is at X, which may be significantly higher than what a similar new insurance policyholder with similar insurance coverage would pay. In simpler terms, your loyalty may not result in a bargain.

Insurance companies have their insurance rates approved by the respective state regulator where the company is doing business and have to use actuary calculations to support the rates.  The rates are traditionally analyzed based on projected costs, i.e., what is being insured and what can happen to cause the insurance company to pay.  Price optimization comes under scrutiny because the traditional calculations should result in all similar customers paying the same rate, rather than long term customers paying a higher rate.

The insurance industry believes that as long as rates meet the state requirements and the actuary models show the rates are sound, the discussion should end. Consumers may innocently believe that they are being rewarded for loyalty when just the opposite may be happening.

Some states have issued bulletins, policy statements and letters to put insurance companies on notice that price optimization practices will be closely monitored to see if consumers are being economically harmed.  These states may seek corrective actions with those insurance companies found to be in violation of the identified practices.

The consumer response in reviewing insurance products should be more proactive and include a “shop around” experience.  Once you have gathered the relevant information on insurance products, you can do some comparative shopping with your own insurance company.  You may want to check with your state Insurance Department or Insurance Commissioner to determine how the insurance company handles claims and complaints, and whether the insurance company meets the state requirements for rates. All insurance consumers should take advantage of any price optimization so that it works to their benefit.

Yvonne R. Hunter is a licensed attorney and the Principal Consultant for YH Strategies, LLC, in Phoenix, Ariz. After a stint with the Arizona Department of Insurance, she learned that many consumers remain unaware of some of the issues associated with insurance products. This blog reflects her opinion and should not be regarded as legal advice. She encourages consumers interested in learning more about their own insurance experience to contact their state department of insurance or insurance commissioner or seek advice from an attorney. If you would like additional information on matters dealing with consumer insurance products, you can reach Yvonne at yrhunteraz@gmail.com. 

     TEMPE, ARIZ.  (June 5, 2017) – Dena M. Jones has been promoted to Director of Strategic Partnerships, Assistant Vice President at Fidelity National Title Agency, a national leader in title insurance and real estate services.

Jones, who celebrates her third anniversary at Fidelity National Title in October, will be responsible for strengthening the company’s relationship within the real estate community, maximizing opportunities for its largest partnerships, and growing Fidelity’s footprint through leadership, philanthropic initiatives, and community involvement.

She will work with Sharon J. Terhune, Vice President, Residential Sales Manager, and the sales team to drive sales, increase market share, and add value. Jones previously served as Assistant Vice President, Sales Executive.

“Dena is a leader in the industry. We are thrilled to have her in this new role,” Terhune said. “She will help our company and our partners in her new position achieve revenue, retention, and growth goals.”

“Our executive team believes that having Dena on board truly makes our company better. I love Dena’s energy, keen business sense and dynamic personality along with her caring nature for her colleagues and clients,” Terhune said.

Jones is active in numerous industry groups. She is on the Board of Directors for Valley Partnership, a commercial real estate industry group that represents the development community. She is also involved with the SouthEast Valley Association of REALTORS (SEVRAR), the Phoenix Association of REALTORS (PAR), the Scottsdale Arizona Association of REALTORS (SAAR), and the Arizona Real Estate Investors Association (AZREIA).

She is on the Board of Directors for the Care Fund. Launched in 2010 by the “homeownership industry,” the Apollo Foundation, dba Care Fund, is a critical part of Arizona’s family support network. It works with hospitals, case workers, and the health and welfare communities. Jones has served in a leadership capacity with the Care Fund for three years.

Jones is Valley Partnership’s Board of Directors liaison for its community project, which is the legacy arm of the organization. She has been involved with leadership on the community project for six years. More than $1.2 million has been raised for the community project during her leadership role at Valley Partnership. She is also involved with the Scottsdale Active 20/30 Club, which sponsors Brokers for Kids, Agents Benefiting Children, and NiteFlite. All are fundraisers.

Jones has been in the real estate industry for more than 13 years as a third-generation real estate professional. She majored in journalism at Arizona State University.

A native of Phoenix, Jones is co-authoring a cookbook titled “To Taste” with her mother.

     PHOENIX, ARIZONA (June 5, 2017): NAI Horizon Senior Vice President Denise Nunez represented the buyer in the $2.775 million investment property acquisition
of Tucson Self Storage at 6459 E. Golf Links Rd., in Tucson, Ariz.

Nunez represented Western Tucson LLC in the transaction. Built in 1976, the property sits on 2.53 acres and totals 47,400 net rentable square feet ($58.54/SF). There are 584 units ranging in size from 5×5 to 10×30. Tucson Self Storage has 60 feet of frontage road on Golf Links Road with a traffic count of 46,000 vehicles daily.

“This is the deal that so many are looking for in a market environment where self-storage acquisition opportunities in Arizona are very thin,” Nunez said. “The property is well built and well located on a heavily-traveled street.

“With some physical and operational updates the buyer expects to quickly capitalize on an under-performing property. The property was sold at a 6.1 cap rate based on 39 percent economic vacancy,” Nunez said.

The seller was T/F Limited Partnership, LLLP.

PHOENIX, ARIZONA (June 1, 2017): NAI Horizon Senior Vice President Isy Sonabend negotiated the $1.53 million sale of an industrial building at 639 S. 54^th Ave., in Phoenix.

NAI Horizon represented the seller and the buyer in the acquisition of the 11,250-square-foot building located in an industrial subdivision.

The property sits on 2.14 acres. The buyer, EGV Associates of Ontario, Calif., dba AMREP, Inc., is a fabricator of waste collection trucks and mechanisms. Its clients include the City of Phoenix and Waste Management. The seller is Adam Garcia Properties, LLC, of Phoenix.

“Phoenix represents a growth market for AMREP,” Sonabend said. “Increased sales to its client base in Arizona and surrounding states prompted the capital investment for the launching of a fabrication plant and service center.”

The property was built in 2004. It features warehouse clear ceiling height of 20 feet serviced by three drive-in, grade-level doors. The site is secured with a block wall and provides ample trailer parking and outside storage. It is located south of Interstate 10 and 51^st Avenue.

PHOENIX, Ariz. (May 30, 2017) – The American Dream is changing to embody new technologies and desire for different living options.

How are homes of the future being transformed through innovation, including non-traditional options for changing demographics and markets? This and other questions will be answered at its next Main Program as ULI Arizona explores new tactics developers and builders are employing to streamline delivery efficiencies, and ways to capitalize on niche housing markets as unique opportunities.

Housing Our Future: Building For Innovation is scheduled for June 8 from 7:30 a.m. to 9:30 a.m. at The Esplanade Conference Center, 2501 E. Camelback Rd., Suite 50, Phoenix.

Moderating the event will be Tim Sullivan, Managing Principal, Meyers Research. Panelists include Mike Rock, President, Katerra Construction; Scott Root, Director of Virtual Construction, Kitchell; and Brian Stark, Co-Founder, STARKJAMES.

To register, visit arizona.uli.org/event/main-program-housing-our-future/

     TEMPE, ARIZ.  (May 30, 2017) – Fidelity National Title Agency is proud to announce that Leo Sanchez, Assistant Vice President, Commercial Sales Executive/Major Accounts, successfully completed the prestigious Arizona State University W.P. Carey School of Business Master of Real Estate Development Program.

Leo Sanchez

Sanchez, who has been with Fidelity Title for two years, is responsible for maintaining client relationships, account management, and business development for major accounts in the commercial real estate sector across all asset classes.

In addition to his recently-earned MRED degree, Sanchez also holds an MBA with a concentration in finance from the Keller Graduate School of Management.

“Leo is incredible at building relationships and connecting dots for his clients,” said Diane Day, Senior Vice President | Operations Manager at Fidelity National Title. “His customers deeply appreciate his passion for being a valued partner and we love that he relentlessly stays current and educated on industry trends in the commercial market.”

A native of El Paso, Texas, Sanchez is active in several industry organizations and serves on committees for ULI Arizona and NAIOP Arizona. He is also a member of Valley Partnership. Sanchez has lived in the Valley 17 years. He and his wife, Maricela, volunteer with various nonprofits, working with organizations that serve underprivileged children.

The nine-month MRED program prepares participants to lead real development projects that are environmentally respectful, socially responsible, and artfully designed. It is a transdisciplinary partnership between four highly regarded schools within ASU: The W. P. Carey School of Business; the Sandra Day O’Connor College of Law; the Herberger Institute for Design and the Arts; and the Del E. Webb School of Construction.