In the News—Week of August 8, 2022
Deal of the Week
Thomas Title and Escrow closed a $28.5M commercial cash-out refinance for Tempe Park Place, a 252-unit apartment complex in Tempe, Arizona. Thank you to our clients at Walker and Dunlop, Jim Pierson and Keaton Merrell for trusting us with this transaction. This transaction was closed by Sheila Hunter, Vice President and Senior Commercial Escrow Officer, in our Scottsdale office.
L.A. voters to decide whether hotels should be required to rent to homeless
The Los Angeles City Council on Friday voted to put a measure on the ballot that would require hotels to rent vacant rooms to homeless people, the Los Angeles Times reports. The council considered just adopting the ordinance but decided to let the public decide in 2024. Hotel owners are generally opposed to the idea. It is supported by the hospitality workers.
Energy & Efficiency
Firestone debuts more sustainable tires made of guayule shrub at race
Firestone rolled out a more sustainable tire for the NTT IndyCar Series in Nashville, Tennessee, Racer reports. The tire is made partially from guayule shrub, grown near Eloy, Arizona. “We are thrilled to be introducing guayule natural rubber to the NTT IndyCar Series … on the streets of Nashville,” said Cara Krystolic, Bridgestone/Firestone’s director of race tire engineering and production. “It goes back over 10 years with an initial investment of over $100 million into the project. Guayule is a fast-growing shrub grown here in the United States and Mexico that produces rubber in about every area of the plant.”
Houston converts office building into affordable housing for veterans
Houston has a lot of office space and a shortage of affordable housing. Harris County and the City of Houston took a step toward alleviating both problems, the Houston Chronicle reports. The city and county unveiled the Light Rail Lofts, a former office building that has been converted into 56 residential units at low cost for veterans who have been homeless. The project cost $16 million and was mostly financed by the county and city.
Relocation by financial firms fuels office building boom in Dallas
The Dallas-Fort Worth market has more office buildings started than anywhere in the country. A big driver in that is financial firms who want new offices, The Dallas Morning News reports. Wells Fargo, Goldman Sachs, Teachers Insurance and Annuity Association will occupy more than 2.1 million square feet of offices in the area. That will mean about 10,000 employees will occupy that space. “They are choosing D-FW because of the pro-business climate and the availability of a quality labor force,” developer Bill Cawley says. “Also, the cost to live in Dallas has to be a big driver.”
Clayco begins work on industrial park near Phoenix-Gateway Airport
Clayco has broken ground on an industrial park in southeast Mesa near Phoenix-Gateway airport, KTAR reports. The four-building development, which will offer almost 600,000 square feet, is part of the Pecos Advanced Manufacturing Zone at the southeast corner of Pecos and Power roads. The park will be called Power Industrial and is expected to be finished by March.
Fitch expects lack of supply to drive industrial rents up through 2023
It’s a good time to own industrial property in Mexico, Fitch Wire reports. Fitch Ratings says that rents for industrial properties will continue to rise in part because of structural problems with adding more inventory. The rating agency cites lack of land, rising costs and difficulty with the permitting process as major constraints on supply. Rents should remain above the levels before the COVID-19 at least through 2023, Fitch says.