In the News—Week of January 29, 2024
Deal of the Week
Amerco, the Real Estate division of Uhaul, recently closed on a portfolio of three Self Storage facilities in Mishawaka, IN. The portfolio includes a total of 1,056 units on 12.7 acres all within 5 miles of University of Notre Dame. The three properties sold for a total of $7.4 million and were closed by Joel Montemayor, Assistant Vice President & Escrow Officer, in our Scottsdale, Arizona office.
Florida condos on upswing in aftermath of tragic Surfside collapse
New regulations in the wake of a condo tower that collapsed in Surfside, Florida, have spurred what one developer called “the most significant impact on waterfront real estate that you’ve ever seen in your professional lifetime,” NPR reports. Many of Florida’s early condominium towers are aging none-too-gracefully. Florida laws now require regular safety assessments. The upshot: Many of the old buildings are unsafe, too costly to repair and will be torn down. “These buildings, they have two things. They’re 60 years old, they’re on the water and they’re in ‘A’ locations. And they’re crappy old buildings,” says Ian Bruce Eichner, CEO of the Continuum Co.
Bob Simpson Building in Fort Worth will be remodeled extended-stay hotel
The Bob R. Simpson Building, a historic office building that was restored in 1986, will be turned into a Residence Inn extended stay hotel, Fort Worth Magazine reports. The 11-story building was been headquarters for XTO Energy. The building was constructed in 1910 and modernized in a mid-century fashion. XTO restored the building and named for its CEO. XTO was sold to Exxon in 2010. Simpson is best known as co-owner of MLB’s Texas Rangers, the defending World Series champions.
Low-income housing advocates purchase Seattle building for $17M
The Low Income Housing Institute purchased a new 58-unit multifamily building in Seattle’s University District for $17.1 million, The Registry reports. The Institute paid Isola Homes $294,827 per unit, using funds from the Washington State’s Rights-of-Way Encampment Resolution Program. Named Jean Darsie Place, the building will provide permanent housing for homeless individuals and couples.
Battery plants driving commercial real estate in Southeastern states
Spurred by the Inflation Reduction Act, industrial investment is sweeping over Southeastern states such as Kentucky, Tennessee, South Carolina and Georgia, Yahoo Finance reports. Most of the subsidies are going to EV battery manufacturing plants, and the effects are being felt in commercial real estate. “The scope is so broad that it touches every aspect of personal life and the corporate and commercial real estate world,” said Christa DiLalo, Cushman & Wakefield’s Southeast research director. “The Southeast is so well positioned to take advantage of the timing of these opportunities. Right-to-work laws make them attractive to companies, and local leadership understands the opportunities available.”
Historic Arizona Biltmore hotel fetches $705 million for Blackstone
Blackstone has sold the 705-room Arizona Biltmore hotel in Phoenix to London-based private equity real estate manager Henderson Park for $1 million per room, Bloomberg reports via The Real Deal. The hotel opened in 1929 and has hosted several U.S. Presidents, and legend has it that Irving Berlin wrote “White Christmas” by the pool. Blackstone paid $403 million for the property in 2018 and spent $150 million on renovations.
Ted’s Hot Dogs, a landmark in Buffalo, Tempe, decides to expand to Chandler
Ted’s Hot Dogs is ready to expand to Chandler, three years after it first considered putting a store there, What Now Phoenix reports. The eatery is an institution in the Buffalo, N.Y. area, and it expanded to Tempe in 1983. Ted’s was planning a second store in Arizona three years ago but put everything on hold. The company was reorganizing. Ray Barry joined the company 18 months ago as CEO, the first one from outside the family. Previously, Ted’s planned the new store at Chandler Crossroads on the northwest corner of Gilbert and Germann roads. The newsletter reports the new location is unclear.