In the News—Week of April 21, 2025

California-based Crown Realty & Development, in partnership with Texas-based Greystar, completed a $64 million refinance of a multifamily asset located in the CityNorth district of Phoenix, Arizona. The transaction supports the investor’s expansion in one of the Valley’s most active and rapidly growing submarkets.

Financing was provided by Berkadia Commercial Mortgage and HGI Commercial Funding III, LLC, with legal counsel from Frost Brown Todd LLC and valuation services by JLL. The refinance was coordinated by Senior Commercial Escrow Officer Bryan Selna, with support from Escrow Assistant Georgette Khoury and Title Officer Teri Guevara, in our Scottsdale office.

FTC, Colorado AG suing apartment management giant, allege hidden fees

The Federal Trade Commission and Colorado’s Attorney General are suing Greystar, accusing the nation’s largest private apartment manager of deceiving tenants with hidden mandatory fees, USA Today reports. The lawsuit claims Greystar advertised artificially low base rents while concealing additional required charges for services such as pest control and trash removal until after tenants paid nonrefundable application fees or signed leases. While Greystar, which manages over 800,000 rental units nationwide, strongly denies the accusations and plans to fight the lawsuit, they have added a disclaimer about “Base Rent” on their website. The case, filed during the final days of the Biden administration, remains active despite recent FTC leadership changes.

California lawmakers weigh extra tax on commercial properties that remain vacant

A California Senate bill proposes a $5 per square foot annual tax on commercial properties that remain vacant for over six months, CoStar reports. State Sen. Caroline Menjivar, who represents Burbank and the San Fernando Valley, introduced SB 789 to address economic decline and generate funding for housing initiatives. The bill would be the first statewide commercial vacancy tax in the U.S. In order to pass, the bill must gain the approval of two thirds from state legislators. The bill is scheduled for an Assembly hearing on April 23. Real estate professionals strongly oppose the measure, arguing it could harm property owners who are already struggling to lease spaces in challenging market conditions. Critics point to San Francisco’s existing vacancy tax as an example, noting its limited effectiveness and implementation challenges since its enactment in 2022.

New York City apartment property sales shoot up 62% in the first quarter

The NYC multifamily property market experienced substantial growth in Q1, with sales volume reaching $2.21 billion, marking a 62% increase from the previous year, Commercial Observer reports. Market-rate properties dominated the landscape, accounting for 88% of total sales volume — the highest share recorded since 2010. The majority of activity concentrated in Manhattan below 96th street and in Brooklyn, particularly focusing on buildings with minimal rent-stabilized units. While rent-stabilized assets faced ongoing challenges due to regulatory measures, particularly the HSTPA of 2019, institutional investors demonstrated strong interest in newer buildings with high-earning tenants, driven by robust rental growth trends.