In the News—Week of August 12, 2024
Deal of the Week
A leading global private equity real estate fund manager recently completed a $23M refinance transaction for two build-to-rent single-family home communities, comprising 110 units total, in Phoenix, Arizona. Bryan Selna, Vice President and Senior Escrow Officer at the Scottsdale office, successfully closed the transaction.
National
Delinquency rates for commercial property loans inch downward in Q2
Delinquency rates for commercial property loans declined slightly in the last quarter, the Mortgage Bankers Association reports. Most property types saw a decrease in delinquency rates in the second quarter. The exception was office properties, which experienced an increase. With office properties, 7.1% loan balances were 30 days or more delinquent, up from 6.8% at the end of last quarter. The overall balance of commercial mortgages that were not current also decreased. MBA’s survey indicated that 97.0% of outstanding loan balances were current or less than 30 days late, an improvement from 96.8% in the first quarter.
National
Airbnb’s profit falls 15%; Company places blame on higher income taxes
Airbnb’s profit dropped by 15% in the second quarter, despite an increase in bookings and revenue, CBS News San Francisco reports. The company says higher income taxes cut into its bottom line. The company’s net income was $555 million, below Wall Street’s expectations, causing a 16% decline in its stock price. While revenue rose by 11% to $2.75 billion, Airbnb observed shorter booking lead times and signs of slowing demand from U.S. guests. The company aims to enhance its supply of short-term rentals through promotions and removing less appealing listings, and it plans to introduce new products and services starting in October.
National
Queens rules among outer boroughs when it comes to office property sales
Queens surpassed Brooklyn as the leading outer-borough office market in New York City, The Real Deal reports. The publication searched the city’s property transaction database for all sales of office buildings and properties with a major office component worth $1 million from the start of 2021. Queens accounted for about 47% of the value of all outer-borough office transactions. The total value of 123 transactions on Queens was over $1 billion. Brooklyn recorded nearly $976 million in 217 transactions. Seven of the top 10 outer-borough office deals occurred in Queens, including the priciest sale, a $166 million office building in Astoria. The Bronx and Staten Island played minor roles, with a combined $267 million in volume.
National
X wants to sublease a big chunk of space at its headquarters building
X, formerly known as Twitter, is planning to sublease a significant portion of its San Francisco headquarters, the San Francisco Examiner reports. The company has put up around 70% of its leased space in its headquarters building for sublease. This amounts to approximately 236,000 square feet across three floors. The decision comes as the company seeks to offload space it no longer needs. X owner Elon Musk has said he is moving the company headquarters to Texas.
Arizona
Tempe seeks developer for project in the historic Mill Avenue district
The City of Tempe is seeking a developer for a mixed-use high-rise project on the site of the former Tempe Performing Arts Center, AZ Big Media reports. The location, at 612 E. Sixth St., housed the arts center before the current facility opened on Tempe Town Lake. The site is in the historic Mill Avenue district, close to Arizona State University’s main campus and various transportation lines. The project aims to provide rental housing for all income levels, office space and ground floor commercial space. “Downtown Tempe consistently ranks as one of the most desired places for economic development,” Tempe Mayor Corey Woods said. “This is an exciting opportunity to significantly improve the use of this existing property to create much-needed attainable housing for our diverse workforce.”
Arizona
Auto-parts maker Magna to open manufacturing facility in Mesa
Magna, North America’s largest automotive supplier, is set to open a manufacturing facility in Mesa, AZ Family reports. The facility will be located at Power Industrial Park and will feature advanced technology for producing automotive products, creating hundreds of jobs in the region. “Magna will be a great addition to Mesa, and I am excited to welcome them to our city,” Mesa Mayor John Giles said. The project represents a significant multi-million-dollar investment, further solidifying Arizona’s role in the automotive industry.
