In the News—Week of July 21, 2025
Deal of the Week
We’re excited to announce the successful closing of a $4,550,000 commercial real estate transaction in the dynamic Scottsdale, Arizona market. The buyer, an entity tracing to Jordan Fuller, purchased an office building in Scottsdale, AZ with $3,640,000 in financing from Axos Bank to complete the deal. The buyers were represented by Branden Mondragon, Trenton McCullough, and Danielle Davis with LevRose Commercial Real Estate, whose market insight and negotiation skill were instrumental to this transaction’s success. This deal was expertly closed by Joel Montemayor, Vice President, and Senior Commercial Escrow Officer, in collaboration with Justin Wine, National Account Executive, in our Scottsdale, Arizona office. Their deep industry knowledge and commitment to service ensured a smooth and timely close. This transaction is another example of how strategic partnerships and expert execution continue to drive results in one of the nation’s most competitive markets.
National
Detroit files nuisance suit involving more than 400 properties run by blockchain company
The City of Detroit has filed its largest-ever nuisance abatement lawsuit against blockchain real estate firm Real Token, Bridge Detroit reports. The city charged 165 affiliated entities for violations involving over 400 residential properties. Authorities say the company operates a cryptocurrency venture offering international investors fractional ownership of Detroit properties while neglecting basic maintenance and safety standards, leaving tenants to live in dangerous conditions including properties without running water, heat or with structural hazards. Real Token claims the issues stem from unscrupulous property management companies they hired, stating they’re working to address hundreds of blight tickets and conduct repairs. City officials are seeking $500,000 in unpaid tickets, compliance inspections for all properties, rent payments to be placed in escrow, and a halt on evictions while the case proceeds.
National
Boston office market shows positive signs as vacancy rate falls for fourth quarter
The Boston office market is showing promising signs of recovery with vacancy rates declining for four consecutive quarters and new occupancies reaching the highest level since 2019, NBC Boston reports. These developments suggest the commercial real estate sector in Boston may be starting to stabilize after a prolonged period of difficulty. Despite these positive indicators, the market has faced significant challenges in recent years that led to falling property values. In response, city officials have implemented an incentive program to convert vacant office spaces into residential units.
National
Major project next to San Francisco’s Transamerica Pyramid to begin in late 2026
After several years of delays, Related California is planning a major office development in San Francisco’s Jackson Square area, The San Francisco Standard reports. The project will feature a 41-story mixed-use building with 375,000 square feet of office space and a luxury five-star hotel. The project, located next to the Transamerica Pyramid, would replace several structures including a landmarked building and include a new fire station. Despite the city’s high office vacancy rate of 35.1%, developers are optimistic about the demand for premium office space, noting that top-tier buildings have much lower vacancy rates of just 7.1%. The development requires numerous approvals.
National
NYC Council OKs payment-in-lieu-of-taxes to finish off Hudson Yard development
The New York City Council has approved a financing plan using the payment-in-lieu-of-taxes model to fund a $2 billion platform that will enable the completion of Hudson Yard, CoStar.com reports. The second phase of this Manhattan development by developers Related Cos. and Oxford Properties will include approximately 4,000 apartments, a 6.6-acre public park, educational facilities and a 2.4 million-square-foot office tower with hotel. This financing arrangement depends on securing an anchor tenant for the proposed office tower and follows the same payment-in-lieu-of-taxes method used in the first phase of Hudson Yards. The project has already generated significant revenue for New York City, with payments exceeding projections by approximately $200 million annually.
Arizona
Mesa follows Phoenix’s lead, passes restrictions on data center locations
Mesa has implemented new regulations for data centers addressing location, design and environmental impacts such as noise, the East Valley Tribune reports. The city has 25% of Arizona’s data centers, and the new rules aim to balance industry growth while preserving space for job-creating businesses. Phoenix recently passed similar regulations, highlighting concerns about data centers’ massive consumption of land, water and electricity while creating relatively few jobs. Firefighters emphasized serious safety hazards at these facilities, including difficult-to-suppress fires involving toxic chemicals and lithium-ion batteries. “We’re not restricting the industry,” City Manager Scott Butler tells the newspaper. “There are areas of Mesa that are more compatible now for this use while we can reserve our high industrial areas for those job-creation companies that we are actively recruiting and actively working to bring those high-wage, high-quality jobs to Mesa.”
Arizona
Greater Phoenix comes in fourth in survey of leading markets for hotel construction
The Phoenix area ranks as the fourth busiest market for hotel construction in the U.S., AZ Big Media reports. Figures from Lodging Econometrics show 126 projects totaling 16,490 rooms in development in the Valley of the Sun. Metro Phoenix expects to open 23 new hotels in 2026, with the massive 1,100-room VAI Resort scheduled to open in December 2025. Several national hotel brands are expanding their presence across the Phoenix metropolitan area, with over 20 properties set to open within the next 12 months in locations including Mesa, Scottsdale, Surprise and Gilbert. The Dallas area ranks No.1 with 203 projects/24,496 rooms. Atlanta is second 166 projects/19,149 rooms and Nashville is third with 127 projects/16,589 rooms.
