In the News—Week of January 6, 2025
Deal of the Week
As part of the Stewart Energy & Infrastructure Group, Thomas Title insured a $585 million utility-grade solar and storage project in Cochise County, Arizona. The planned solar arrays will cover 1,300 acres, with 34 additional acres dedicated for a substation and battery storage. The title insurance policy issuance was coordinated by Thomas Title’s Underwriting Counsel, Chadwick Campbell.
National
A new chapter: Bookseller Barnes & Noble comes back from brink and is expanding
Barnes & Noble has experienced a remarkable turnaround under CEO James Daunt’s leadership, shifting from financial struggles to renewed growth, PBS reports. The company opened 60 stores in 2024 and plans open 60 more in 2025. The company has refocused its strategy on providing an enhanced bookstore experience while moving away from selling nonbook merchandise. Despite Amazon’s dominance in the book market, Barnes & Noble has found success by emphasizing personal interaction and discovery in its physical stores. Barnes & Noble had 726 locations nationwide in 2008 and has about 600 now.
National
Acting mayor of Buffalo wants to turn shuttered grocery store into police station
The acting mayor of Buffalo, New York, Christopher Scanlon, has proposed a plan to temporarily relocate a police station to the recently closed grocery store, Investigative Post reports. The proposed one-year lease would cost the city only $1 per month, but it would require significant expenditure on utilities and renovations to convert the grocery store into a police facility. The building’s owner, Stuart Green, has defaulted on a bank loan and still owes approximately $5 million on the $7 million property. While city officials cite potential benefits for neighborhood safety, some Common Council members express concerns about the associated costs and prefer to see a grocery store at the site.
National
Historic Manhattan office building adds amenities, lands five tenants
A historic NYC building at 5 Penn Plaza has successfully attracted new tenants after completing extensive modern renovations, the New York Post reports. The 1916 structure, spanning 650,000 square feet, underwent significant upgrades including a redesigned lobby and rooftop terrace. Health app Noom and real estate tech firm Altus Group are among five companies that have signed new leases totaling over 70,000 square feet. The building is now 85% occupied with asking rents in the $70s-$80s square-foot range.
National
State Senate kills Boston mayor’s plan to hike taxes on commercial real estate
Boston Mayor Michelle Wu’s initiative to temporarily increase commercial property tax rates was halted by the Massachusetts State Senate, despite passing twice in the House of Representatives, The Real Deal Reports. The proposal aimed to reduce the burden on residential property owners. Senate President Karen Spilka cited concerns about potentially harming Boston’s economic recovery as the reason for not bringing the bill to debate. The situation highlights Boston’s unique vulnerability to commercial real estate downturns, as it relies on commercial properties for over one-third of its tax revenue, a notably higher proportion than other major U.S. cities.
Arizona
U.S. setting record for building apartments; Phoenix area ranks fourth among metros
Greater Phoenix ranked fourth among metro areas for apartment construction in 2024, the East Valley Tribune reports. Figures from RentCafe show the United States set a record for apartment construction, with an expected to tally a final total of 518,000 rental units in 2024, the first time the nation has surpassed the 500,000 market. Phoenix opened an estimated 20,000 new apartments by the end of 2024. That ranked behind only New York City, Dallas and Austin, Texas. “The supply wave has brought 50-year high deliveries to certain metros … but the increased competition is slowing rent growth, especially in booming Sun Belt markets,” said Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix.
Arizona
Work begins on hotel project in Mesa that combines two Hilton brands
A new dual-branded hotel development has broken ground at Gallery Park in Mesa, AZ Big Media reports. The project combines a 97-room Tempo by Hilton — the brand’s first location in the Phoenix metro area — with a 77-room Homewood Suites by Hilton. The four-story development will feature amenities including a resort-style pool, event spaces, fitness areas and a full-service restaurant. This hotel complex is part of Gallery Park’s larger mixed-use development, which encompasses office space, retail, apartments and dining options across more than 1 million square feet in Mesa’s Gateway Employment Area.
