In the News—Week of July 29, 2024
Deal of the Week
After successfully rezoning its property to multifamily from industrial, the Arizona-based owner of a 7.6-acre parcel in Chandler, Arizona sold to an Indiana-based developer. The $64 million project will feature 252 units, a 2,000-square-foot clubhouse, and 60,000 square feet of landscaped common area. The $42 million construction loan closed simultaneously with the sale, with construction slated to begin this year. The transaction was closed by Senior Escrow Officer Bryan Selna in our Scottsdale office.
National
Another blow for downtown? Saks’ store moving to appointment 0nly
In what is seen as another blow to foot traffic in San Francisco’s beleaguered downtown, Saks Fifth Avenue in San Francisco’s Union Square will switch to “appointment-only” operations, KRON4 reports. Customers will need to schedule visits in advance starting Aug. 28, marking a significant shift from the traditional walk-in shopping experience. This change aims to better meet the evolving expectations of luxury consumers. Similar policies have already been implemented at Saks locations in Palo Alto and Napa. The move comes amid a broader trend of luxury stores adapting their business models and follows the recent closure of a nearby Nordstrom. Layoffs are anticipated for Saks employees in Union Square, though the exact number is not yet known.
National
King County closes on historic Dexter Horton building in downtown Seattle
King County has purchased the historic Dexter Horton building in Seattle for $36.6 million, significantly less than its previous sale price of $151 million in 2019, The Registry reports. The 16-story, 389,000-square-foot building, located at 710 Second Ave., was originally built in 1924 and has landmark status. It features a white terra cotta exterior, ornate interior details and modern amenities. The seller, CIM Group, is a national real estate investor and manager with nearly $30 billion in assets.
National
Not half bad: New York City sees more sales in first six months of the year
In the first half of 2024, New York City’s investment sales market experienced a significant boost, with an 11% increase in transaction volume and a 23% rise in dollar volume compared to the latter half of 2023, Connect CRE reports. This growth is driven by recent legislative changes such as a tax abatement and zoning reforms under Mayor Eric Adams’s “City of Yes” initiative, which have bolstered investor confidence. Transactions totaled $11.48 billion across 943 deals, with notable activity in the residential sector due to mortgage maturities.
National
Loan Star Funds loads up to target distressed commercial real estate
Lone Star Funds, under the new leadership of CEO Donald Quintin, has closed a $5.3 billion fund to target distressed assets in commercial real estate and other sectors, The Real Deal reports. This marks a significant move for the Dallas-based firm, which manages $36 billion in assets. The fund aims to invest in underperforming assets that require capital and improved management to enhance their value. Despite raising 35% less than its previous fund, the new fund represents a strategic effort to capitalize on opportunities amid ongoing economic uncertainty.
Arizona
Retail space in West Valley going faster than in the rest of the nation
Retail space in Phoenix, particularly in the West Valley, is in high demand, with vacancies being quickly filled, the Phoenix Business Journal reports via abc15. Competition for these spaces has reached a record level, making it essential for retailers and restaurants to act swiftly. Figures from CoStar show that nationally the average time to secure a tenant has dropped to just over eight months, the fastest pace in over two decades. In the West Phoenix submarket, including areas like Buckeye and Surprise, deals are closing even quicker, averaging 3.8 months from listing to lease. This rapid pace highlights the area’s growing attractiveness and the urgency for businesses to secure retail space.
Arizona
Aviation services industry growing rapidly in Pinal County
Pinal County is enjoying significant growth in aviation-related development, with companies such as Win Aviation and Ascent Aviation Services expanding their operations, AZ Big Media reports. The region offers favorable conditions for aviation, including low humidity and business-friendly incentives. Ascent Aviation Services’ $55 million expansion at Pinal Air Park will create over 300 jobs and enhance the area’s aerospace capabilities.
