In the News—Week of December 12, 2022
Deal of the Week
A Canadian developer, with significant holdings in Arizona, refinanced a 57,000-square-foot flex industrial building in North Phoenix. The $7.9 million loan was issued by a Kansas-based bank. Assistant Vice President and Escrow Officer, Joel Montemayor, closed the transaction in our Scottsdale office.
Casino operator hopes to get $1 billion for real estate holdings in Miami
Genting, a Malaysian-based major casino operator, is looking to sell pieces of Miami real estate, Bloomberg reports. The company is seeking more than $1 billion for the properties and wants to reinvest in other markets. “In the coming months, we will be marshaling our resources with the goal of bringing a full commercial casino to our New York City property and expanding our already-tremendous offerings in Las Vegas,” Genting Americas East executive Robert DeSalvio says. “We are thrilled about the opportunities to expand in the two most significant gaming markets in North America.”
Experiments in community-owned CRE make progress around nation
Community-owned commercial real estate is making headway in communities around the nation, Next City reports. A good example is the somewhat downtrodden Kensington neighborhood in Philadelphia. A community group, the Kensington Corridor Trust, has bought up commercial property and is leasing to entrepreneurs. The idea is to give residents a voice and stake in businesses in their neighborhood.
Oracle co-founder is lord of manor on the island he owns in Hawaii
In the decade since Oracle co-founder Larry Ellison bought the Hawaiian island of Lanai — well 98% of it — he has been landlord and/or boss and lord of the realm to the local population, Bloomberg reports. Complaints are that his word essentially is law, his plans for development are secretive and businesses that previously signed leases for five years now find themselves having to take 30-day leases. Many wonder if there is a future for them on Lanai. The island, which is near Maui, has been largely owned by one entity since the 1860s. In 1922 the Dole family, of pineapple fame, took control and developed the largest pineapple plantations. Billionaire Dave Murdock bought the island in 1985, closed the pineapple plantation, and developed two high-end resorts. He was more low-key than Ellison and had considerably less net worth. “Two different animals,” one local says.
Single-family rental community in South Phoenix sells for $19.4M
Out-of-state investment groups have purchased the Orchards on 12th, a single-family rental community in south Phoenix for $19.4 million from Scottsdale-based TruVista Holdings, AZ Big Media reports. The buyer is an LLC formed by the Carlyle Group and Banyan Residential. The gated community was completed this year. The 38 homes are three- and four-bedrooms, ranging in size from 1,589 to 2,235 square feet
New Gummi World plant expected to bring hundreds of jobs to area
Gummi World held the grand opening of its 55,000-square-foot facility in Chandler, AZ Big Media reports. The multimillion-dollar facility will bring hundreds of jobs to the area. Gummi World makes dietary supplements. The new facility will allow it to manufacture other products such as gummy vitamins and soft gels.
Energy and Efficiency
High fuel prices have led to more investment in efficiency
The International Energy Agency Global says high energy prices and supply disruptions have sparked increased energy efficiency but not enough, Reuters reports. Global investments in heat pumps and building insulation will increase 16% this year to $560 billion, the IEA says. The Paris-based watchdog has called for governments to push for energy efficiency in buildings and transport because emission reduction goals cannot be met just with increased renewable energy.