In the News—Week of January 13, 2025
Deal of the Week
The CityNorth Project has successfully closed another lot and land sale at just under $6 million. The Nevada based national developer plans to construct a new hotel project. Bryan Selna, Senior Escrow Officer in our Scottsdale office, managed and closed the transaction.
National
Fires across Los Angeles County threaten $2.6 billion worth of commercial real estate
Multiple wildfires raging across Los Angeles County have threatened commercial properties worth approximately $2.6 billion, The Real Deal reports. Figures from data firm Trepp show the fires have impacted areas containing 152 properties tied to commercial mortgage-backed securities. Apartment buildings make up the majority of affected structures. The Palisades Fire has emerged as the most destructive fire in LA history, devastating thousands of structures and forcing mass evacuations across affluent neighborhoods.
National
Former NFL quarterback Colt McCoy begins career in commercial real estate
Former NFL quarterback Colt McCoy is embarking on a new career venture by launching HPI’s commercial real estate office in Fort Worth, Texas, Business Wire reports. McCoy, who played 14 years in the NFL following his career at the University of Texas, joins the established Texas-based real estate firm where his brother Case already is a partner. The new Fort Worth branch will initially focus on industrial real estate before expanding into a full-service platform offering leasing, management, development and acquisition services. McCoy chose Fort Worth as his post-football home base, citing personal and family reasons, and plans to leverage his extensive network of relationships built during his football career.
National
Walgreens says it will shut down 12 of its 41 locations in San Francisco
Walgreens has announced the closure of 12 stores across San Francisco, by late February, The San Francisco Standard reports. The pharmacy chain cites financial pressures, including regulatory issues and reimbursement challenges, as the primary reasons for the closures. While the company did not explicitly mention crime as a factor, several of the affected locations have been notable targets of theft, including one store that previously held the highest theft rate among all U.S. Walgreens locations. Walgreen operates 41 pharmacies in San Francisco.
National
Owners of ‘America’s filthiest’ hotel default on $223M loan; owe city, state fines
The Chetrit brothers defaulted on a $223 million loan on their Times Square property, the Carter Hotel, the New York Post reports. The property has earned the unflattering title of “America’s filthiest,” has been vacant and deteriorating despite the owners’ initial renovation plans after purchasing it for $192 million in 2015. The property has a troubled history, including multiple citations for poor conditions and several criminal incidents, making it a significant concern for local businesses and community leaders. The owners now face potential foreclosure if they cannot resolve the loan situation by Feb. 20. They also owe over $420,000 in state and city fines for the building’s poor condition.
Arizona
Axon pulls out of headquarters project just days before groundbreaking ceremony
Axon has canceled plans for its new headquarters and housing project in north Scottsdale days before the scheduled groundbreaking, AZ Family reports. The project received city council approval in November, but it faced opposition from residents who gathered enough signatures to force a ballot vote. The proposed development would have included a 250,000-square-foot headquarters, manufacturing center and approximately 2,000 residential units near Loop 101 and Hayden Road. CEO Rick Smith cited concerns over potential delays and union involvement. The company, which makes Tasers and police body cameras, says it is now exploring headquarters locations in other states.
Arizona
Industrial project called Nextwave breaks ground on former site of historic water park
A major industrial development project called Nextwave Tempe has broken ground at the former Big Surf Waterpark location in Tempe, AZ Big Media reports. The development will feature three Class A industrial buildings spanning 689,000 square feet on a 35.5-acre site. Led by Overton Moore Properties and Invesco Real Estate, the project aims to attract companies in aerospace, advanced manufacturing, e-commerce and logistics sectors. The property is near major highways, Phoenix Sky Harbor International Airport and Arizona State University. The development is scheduled for completion late this year and will offer flexible space options ranging from 32,000 to 258,727 square feet.
