In the News—Week of April 7, 2025
Deal of the Week
An Arizona based multifamily investment firm refinanced on a new $40mm permanent loan on a newly constructed Build To Rent Community Union Park at Norterra. The transaction was handled and closed by Vice President/Senior Escrow Officer, Bryan Selna at the Scottsdale location.
National
Good news: Office market comes back in smaller metros such as KC, Pittsburgh
The U.S. office market is showing signs of recovery beyond major metropolitan areas like New York, with smaller cities such as Pittsburgh, San Antonio and Kansas City experiencing increased leasing activity, CoStar reports. Major brokerages report higher leasing volumes and longer lease terms across these secondary markets, suggesting a potential broader market recovery from pandemic-related disruptions. The uptick is driven by companies implementing stricter return-to-office policies and seeking higher-quality spaces, with about 85% of CEOs now expecting a full return to five-day workweeks. Despite this positive trend, the national office vacancy rate remains high at 14%, indicating that a complete market recovery still faces challenges.
National
Not such good news: San Francisco office market back to where it was a year ago
A recent analysis of San Francisco’s commercial real estate market reveals a concerning trend of increasing office vacancies in the downtown area. NBC Bay Area reports. Despite experiencing some fluctuations throughout the previous year, the vacancy rate has returned to its level from a year ago, with a slight increase of 0.1% from the last quarter according to CBRE. The persistence of empty office spaces suggests ongoing challenges in the city’s commercial real estate sector, particularly in the downtown district. While there were some positive movements in the market during the year, the latest figures indicate that San Francisco’s office space utilization continues to face significant hurdles.
National
Demolition set to begin on Upper East Side to make way for 37-story mixed-use tower
Extell is preparing to demolish a 24-story building to construct a new 37-story mixed-use tower at 655 Madison Ave. on Manhattan’s Upper East Side, New York YIMBY reports. The ambitious project, designed by Beyer Blinder Belle, will feature 62 luxury condominiums and substantial retail space, with fashion house Chanel considering a $450 million investment for approximately 65,000 square feet of retail area. Extell expanded the project by acquiring three adjacent buildings on East 60th St. for $103.3 million, creating a larger development footprint with additional air rights. The demolition phase is expected to conclude by year’s end, though the timeline for construction has not been announced.
National
Baseball’s Texas Rangers unveil $112M, mixed-use project near ballpark
The MLB Texas Rangers and The Cordish Cos. have unveiled One Rangers Way, a new luxury multifamily development in Arlington’s entertainment district, D Magazine reports. The $112 million project features 514,000 square feet of living space with 43,000 square feet dedicated to upscale amenities, including a demo kitchen, coworking spaces and a swim-up pool bar. The development, which began construction in October 2022, subtly incorporates Rangers memorabilia and baseball-themed elements while maintaining a sophisticated aesthetic. Located near major attractions like Globe Life Field and AT&T Stadium, the project aims to enhance Arlington’s entertainment district, which attracts over 16 million visitors annually.
Arizona
Father, son indicted, accused of deceiving investors in development of sports park
Randy and Chad Miller, a father-son duo from Arizona, were indicted in New York, accused of deceiving investors through a sports complex development scheme called Legacy Park in Mesa, AZ Family reports. Federal authorities say the pair fabricated letters of intent and forged signatures to convince investors that the project would generate substantial revenue, ultimately collecting over $280 million through fake municipal bonds. Instead of using the funds for development, they allegedly spent the money on personal luxuries, including a house, vehicles and inflated salaries. The project, which opened in 2022, quickly defaulted and entered bankruptcy, leaving bondholders with massive losses when it sold for less than $26 million.
Arizona
Tucson’s Arizona Inn on the market after nearly 100 years in Isabella Greenway’s family
The historic Arizona Inn, a luxurious 93-room resort in Tucson’s Midtown area, has been put up for sale by JLL’s Hotels & Hospitality Group. The Inn was founded by Isabella Greenway in 1930. Greenway, who had been a bridesmaid of Eleanor Roosevelt when she married Franklin Roosevelt, was elected Arizona’s first Congresswoman two years later. Her family still owns the Inn. This urban retreat sits on 14 acres and features a heated outdoor pool and clay tennis courts, with views of the Santa Catalina Mountains. The property’s prime location offers convenient access to the University of Arizona and other cultural attractions. “We’re seeking a buyer who recognizes the Arizona Inn’s historical significance to Tucson and its surrounding community and is committed to preserving its legacy while thoughtfully enhancing its potential,” says Matt Riley, JLL’s senior director.
