On March 10, 2008, approximately 1215 mountain standard time, an Aircraft MFG & Development Company CH 2000 airplane, N8500B, was substantially damaged during a forced landing following a reported loss of engine power while in cruise flight near Scottsdale, Arizona. The certified flight instructor (CFI) and pilot receiving instruction were not injured. The airplane was registered to Import Properties LLC of Scottsdale and operated by CRM Aviation Training Center of Scottsdale under the provisions of 14 Code of Federal Regulations Part 91. Visual meteorological conditions prevailed and no flight plan was filed for the local instructional flight that departed from the Scottsdale Airport (SDL) about 20 minutes prior to the accident. According to the CFI, while in cruise flight at 4,500 feet mean sea level (msl) en route to a designated practice area, the engine lost power. The CFI stated he performed the emergency checklist and initiated a forced landing to a nearby road. During the landing roll to avoid an oncoming vehicle, the CFI steered the airplane to the right. Subsequently, the right wing struck a street sign. Examination of the airplane revealed that the right wing and fuselage were structurally damaged. The left and right wing fuel vent lines were free of debris and unobstructed. The engine remained attached to the engine firewall. All engine accessories remained attached to the engine and were undamaged. No visible damage to the crankcase or cylinders was observed. Throttle and mixture control continuity was established from the control levers to the engine. The fuel primer handle was found in the in and locked position. To facilitate the engine run, an external fuel source was attached to the left fuel tank fuel line. When the master switch was turned to the "on" position and the auxiliary fuel pump was placed in the "on" position, the auxiliary fuel pump actuated. The engine was started and run at various RPM settings for about four minutes. When the magneto switch was moved to the left and right positions, an RPM drop of approximately 50 to 75 rpm was noted. No anomalies were noted with the engine or airframe. According to the recovery personnel, about 28 gallons of fuel was drained from the airplane prior to recovery and appeared to be free of debris.