In the News—Week of August 19, 2024

An Arizona-based national multifamily investment, development, and management company sold a 200-plus-unit apartment complex in Carrollton, TX, for over $30 million to a Texas-based multifamily investment company. The transaction was handled by Bryan Selna, Vice President with Thomas Title & Escrow.

Analysis shows office tenants are making a flight to high-end buildings

A recent analysis of office markets in 57 U.S. cities reveals a significant “flight to quality” trend, where companies are increasingly favoring high-quality, prime office buildings, The World Property Journal reports. Figures from CBRE show these prime properties, which make up 8% of the U.S. office market by square footage, have seen lower vacancy rates and higher rent premiums than the broader market. From 2020 to 2024, prime buildings experienced positive net absorption, while the rest of the market saw negative net absorption. Factors contributing to a building’s prime status include design quality, location, amenities and green certifications.

777 Tower in Los Angeles sells for less than half of its previous valuation

The 777 Tower in downtown Los Angeles is being sold for $120 million, significantly below its previous valuation, the Commercial Observer reports. Brookfield Asset Management, the previous owner, defaulted on $289 million in debt in 2023. The sale, managed by a syndicate of lenders led by Wells Fargo, is expected to close soon, with a Chinese billionaire reportedly paying in cash. A deal to sell the 52-story building, located at 777 S. Figueroa St., for $145 million to South Korea-based Consus Asset Management fell through last spring.

Denny’s says so long to San Francisco after too much dining-and-dashing

We understand that when it came to great places to eat in San Francisco, next to nobody had Denny’s at the top of their list. But the diner-style chain restaurant is no longer an option, SF Gate reports. On Aug. 1, the Denny’s at 816 Mission St. in San Francisco closed. Once called the most expensive Denny’s in California, it was the last Denny’s in San Francisco. Franchise owner Chris Haque cited high operational costs, vandalism and frequent incidents of dining-and-dashing as primary reasons for the closure. The lack of conventions in recent years also impacted the restaurant’s business. The chain still operates in other parts of the Bay Area.