In the News—Week of April 22, 2024

 In The Title Trove

Deal of the Week

In a significant move, an Arizona-based powerhouse in single-family rental homes recently finalized the acquisition of a portfolio of properties in the thriving Phoenix Market for a total of $9.6 million. Spearheading this successful transaction was Bryan Selna, Vice President and Senior Commercial Escrow Officer, from our Scottsdale office. We also wish to acknowledge the invaluable collaboration of the dedicated teams at KW Commercial and Nhimble, whose contributions were instrumental in achieving this closing.

National

Experts say there’s nothing to worry when it comes to CRE in South Florida

For months now, we’ve heard about how commercial real estate has the potential to wreak havoc on the larger economy and the banking industry. Well in South Florida, at least, the picture looks different, WLRN reports. “Admittedly, I think Florida (and) Miami are not at the top of our list of concerning markets at the moment,” says Dave Putro, senior vice president with Morningstar Credit. Stephen Bittel joined with two partners to buy an aging 13-story office building in Coral Gables last summer. “We thought there was a value opportunity here. We could buy a building below replacement costs,” he says. Darrell Wheeler, a top researcher at Moody’s Investor Services, says that in his most recent analysis, the office markets in Fort Lauderdale and Miami scored well above the national average.

National

Hedge-fund giant Blackstone projects recovery for commercial real estate

Blackstone, the world’s largest commercial property owner, sees the commercial real estate slump bottoming out and is looking for opportunities to invest, costar.com reports. The hedge-fund giant is looking to “plant seeds of future value.” Blackstone saw a small return on its CRE portfolio in the first quarter, up 0.3%, after a decline of 5.6% in the past 12 months. Blackstone remains bullish on data centers. It owns $50 billion worth of data centers and has another $50 billion in the pipeline.

National

Tax assessments in Dallas County shoot up despite slow commercial sales

Commercial valuations in Dallas County rose 21% over the past year despite a slowdown in CRE sales, The Real Deal reports. “I’m not shocked by the fact that notice values were higher because the appraisal district tends to be aggressive,” Meritax Advisors partner Ryan Chismark says. “However, I’m disappointed that they’re higher because of where we actually are in the market.” Industrial properties saw their assessment value estimated at over 50% on average, but every class saw a hike.” Office properties were hit with a 5% to 10% hike.

National

Skyscraper in downtown Los Angeles likely headed for a foreclosure sale

The 52-story Gas Company Tower in downtown Los Angeles seems headed for a foreclosure sale, the Los Angeles Times reports. A notice of a trustee’s sale for the building has been filed with the Los Angeles County Clerk. The building’s owner, an affiliate of Brookfield Asset Management, defaulted on its debt. There are about $465 million of debt on the building, which was appraised for $660 million in 2020. The estimated value is less than a third of that.

Arizona

Semiconductor maker told it must provide needed water for facility

ASM, previously known as Advanced Semiconductor Materials, announced plans for a $300 million research facility in North Scottsdale. But Scottsdale is concerned about the Dutch company not planning well enough for its water needs, East Valley.com reports. Brian Biesemeyer, the executive director of Scottsdale Water, expressed concerns. The city and ASM have been negotiating. “This developer had previously given us demand(s) that were supported in our infrastructure plans for this area,” Biesemeyer wrote. “At the last minute they give us demands that (are) nearly 10 times the original demands and we cannot support this.”

Arizona

Available land, relative proximity to LA credited for Buckeye’s growth

Buckeye had a population of 6,537 in 2000. Today it has an estimated 114,000 residents. What’s behind that growth? Two factors, AZ Big Media reports. It’s the part of the Phoenix metro area closest to Los Angeles area, and there is plenty of available land. “When you look at the metro Phoenix area, we have a tremendous number of businesses that want to serve California, but don’t want to actually operate in the state of California, and when you look at a map, the closest city that can do that is the City of Buckeye,” says Suzanne Boyles, the economic development director for Buckeye. “We can actually meet the 11-hour turnaround time in the trucking industry to get to the ports of Long Beach and back, which not many other cities (can).” Only 15% of the land in Buckeye has been developed, leaving a blank slate.

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