In the News—Week of December 05, 2022
Deal of the Week
FSO Capital Partners, a real estate private equity firm based in Phoenix, acquired a three-site multifamily property in Yuma, AZ for $35,000,000. The transaction was handled by Sheila Hunter, Vice President and Senior Commercial Escrow Officer, from Thomas Title’s Scottsdale office.
National
Exclusive clubs latest attempt to lure workers back to the office
The bosses are sometimes slow learners. They are discovering that workers are reluctant to trade the comforts of home for sitting in a drab cubicle or a cramped “private” office. Perhaps fine wood paneling and a sumptuous meal might do the trick. Forbes reports that developers are creating private clubs in Class A office space in the Big Apple. “Private clubs in the most elite trophy (office) buildings are designed to extend an unprecedented level of value to tenants,” says Peter Turchin, vice chairman at CBRE. “From the finishes to the culinary offerings to the services, these clubs offer a caliber of refinement and hospitality that exceeds the amenities usually seen in offices.”
Energy & Efficiency
Energy costs may make EV battery plants in Europe ‘unviable’
Volkswagen CEO Thomas Schafer says high energy prices in Europe make vehicle battery factories “practically unviable” and will stifle investment in plants, Just The News reports. Schafer wrote on LinkedIn that “Unless we manage to reduce energy prices in Germany and Europe quickly and reliably, investments in energy-intensive production or new battery cell factories in Germany and the EU will be practically unviable.” Schafer praised the U.S. Inflation Reduction Act for offering “companies highly attractive incentives to invest in new plants and production,” and criticized the EU for not doing enough.
Texas
Apache to move to Westchase, leaving former headquarters in the Galleria
Fortune 500 oil and gas company Apache plans to leave its headquarters in the Galleria area and move to Westchase in a move that will drastically reduce the company’s footprint in Houston, the Houston Chronicle reports. Apache has signed a deal to expand its presence at Briarlake Plaza. The company already occupies 210,000 square feet at Briarlake Plaza and plans to lease another 118,000 square feet. Apache has leased at its current headquarters location, Post Oak Central, for more than 30 years. Apache leases about 525,000 square feet there. The move will reduce Apache’s office footprint n the Houston market by more than half.
Texas
28-story multifamily tower north of downtown Dallas up for sale
The Cirque, a 252-unit building in Victory Park, is on the market, The Dallas Morning News reports. The 28-story luxury apartment high-rise is located next door to American Airlines Center and just north of downtown Dallas. The building opened in 2008 and has been owned by a New York-based real estate investor since 2016. Commercial property firm Jones Lang LaSalle says The Cirque is 95% leased.
Arizona
Phoenix gives OK f0r $750M redevelopment of Metrocenter
The Phoenix City Council has given its OK to a $750 million redevelopment of Metrocenter Mall, an iconic retail facility that closed in 2020, Commercial Search reports. The mall’s owner, Concord Wilshire Capital, is working with TLG Investment Partners and Hines and plans to turn it into a walkable mixed-use district, the Village. The Village will include 2,600 multifamily units, 100,000-square feet of retail to go along with an existing Walmart. The property is near a public library and Rose Mofford Park. The light rail line is building a stop there for what is being touted as easy access to downtown Phoenix. And it is right off Interstate 17. When Metrocenter opened in 1973, it was the first mall in the United States with five anchors and two tiers. Metrocenter had been in decline for some time, and the pandemic dealt the center its final blow.
Mexico
Hyatt Hotels opens boutique property in Baja California Sur
Hyatt Hotels has opened an oceanfront property in Baja California Sur as part of its Unbound Collection, Hotel Management reports. Rancho Pescadero has 12 villas and 91 rooms. The hotel, which occupies the site of a former poblano chili farm, was turned into a resort by Lisa Harper and opened in 2009. Hyatt bought the property and closed it for a four-year renovation. Rancho Pescadero includes gardens, two farms, a citrus grove and a sea turtle hatchery.
