In the News—Week of June 19, 2023
Deal of the Week
An entity tracing to Sunbelt Rentals acquired a 12,000 square foot warehouse property in Chandler, Arizona for $5,200,000 in an all cash transaction. The transaction was closed by Bryan Selna, Vice President and Senior Commercial Escrow Officer, in our Scottsdale office.
Mall owner Macerich wants to make over former Sears stores
Macerich has acquired the remaining 50% interest in five former Sears stores at malls it owns with the idea of making over the spaces, Commercial Property Executive reports. Macerich bought out its joint venture partner Seritage Growth Properties. The properties in Arizona, Connecticut, California, New Jersey and Oregon have a total 819,000 square feet of space. Macerich, which is based in Santa Monica, California, owns interests in 44 regional malls.
Owners decide to give up on shopping mall in downtown San Francisco
The owners of Westfield San Francisco Centre are calling it quits on the main shopping mall in downtown San Francisco, Fortune reports. Last month one of the mall’s anchors, Nordstrom, announced it was closing. The mall, in the city’s Union Square, is co-owned by Unibail-Rodamco-Westfield and Brookfield Corp. The companies owed $558 million on the mortgage. “With new management, we will have an opportunity to pursue a new vision for this space that focuses on what the future of downtown San Francisco can be,” Mayor London Breed says. “Whether that’s attracting new types of business or educational institutions, or creating a totally different experience, we need to be open to what’s possible.”
Boston residential landlords ask for more—and get more than that
Apartments in the Boston area are going on average for more than $3,000 a month, a record price, WBUR reports. The data, which comes from Boston Pads, does not include luxury apartments. Landlords are not only asking for more money, they are getting offers for more than the asking price as prospective tenants battle each other. A recent survey showed that 5% of apartments went for $400 to $500 over what the landlord first asked. In one ZIP code in Somerville, as many as 15% of the apartments offered went for more than the asking price.
Herrick pays $150 million for office tower in downtown Detroit
The Herrick Co. bought the Huntington Tower, which opened last year, in downtown Detroit for $150 million, Commercial Property Executive reports. The 21-story building is located at 2025 Woodward Ave., in an opportunity zone within the Foxtown neighborhood. Huntington National Bank is the sole tenant, The bank signed a long-term lease for the entire building.
Phoenix is among emerging metro areas for manufacturing
Phoenix ranks among the emerging markets in the United States for manufacturing, AZ Big Media reports. Research by Cushman& Wakefield shows that over the past three years, the Valley of the Sun added 10.7 million square feet for manufacturing tenants and added more than 56 million square feet of industrial space. The research showed that the Phoenix market’s growth has been aided by tight markets in California.
High-rise apartment redevelopment site in downtown Phoenix brings $12M
Masyno Holding LLC agree to pay $12 million for a 1-acre property zoned for high-density residential at the northwest corner of 1st and McKinley streets, AZ Big Media reports. As many as 741 units are allowed on the two-parcel property close to light rail stations. “This is a prime high-rise residential site centrally located in the heart of Downtown Phoenix. The buyer capitalized on a great opportunity with the ability to close escrow in two weeks,” says Steven Nicoluzakis, an executive for Cushman & Wakefield, which brokered the deal.