In the News—Week of June 2, 2025

An Arizona-based investor refinanced a senior living facility in Prescott, located in Yavapai County, Arizona. The healthcare-zoned property, previously leased by Willow Creek Senior Living, Inc., represents a stabilized asset in a growing Northern Arizona market. The $20.5 million loan was provided by Parkway Bank and Trust Company, with legal representation by Matthew J. Dowd of Scott & Kraus, LLC. The transaction was closed by Vice President and Senior Commercial Escrow Officer Joel Montemayor, with support from Escrow Assistant Vickie Montemayor and Title Officer Teri Guevara, out of our Scottsdale office.

CRE delinquencies up in first quarter, Mortgage Bankers Association survey finds

The Mortgage Bankers Association’s latest survey reveals an uptick in commercial property mortgage delinquency rates during Q1 2025. The increases in lodging and office properties were the most dramatic. MBA’s Associate VP Judie Ricks says both new and later-stage delinquencies are rising, with potential for further increases as economic growth is expected to slow in 2025. The data shows varying impacts across property types, with office and lodging seeing increased delinquencies while industrial and retail properties experienced decreases. CMBS loans showed the highest delinquency rates at 5.2%, while other capital sources maintained relatively moderate rates, with life company loans at 1.0%, GSE loans at 0.6% and FHA loans at 1.1%.

Former potato chip factory in Omaha finds new life as artist co-working space

A historic Omaha potato chip factory has been transformed into a vibrant artist co-working space called Clover24, following a multimillion-dollar renovation of the 85,000-square-foot facility, the Nebraska Examiner reports. The building, which previously produced 16,000 bags of chips daily and later stored truck tires, now houses 18 creative tenants including welders, fiber artists and sculptors in converted administrative office suites. The project aims to build a supportive community for local artists while preserving the industrial character of the 3.5-acre site.

Portland office tower sells at discount after former tenant, figuratively, trashes the place

Portland’s largest office tower, known as “Big Pink,” is being sold for approximately $70 million — an 80% reduction from its purchase price a decade ago — symbolizing the city’s broader downtown challenges, the Wall Street Journal reports via msn.com. The 42-story building now stands more than half empty, with major tenant U.S. Bank having largely withdrawn its presence after a century in the city. The property has faced significant challenges including safety concerns, with former tenant Digital Trends citing issues with vagrancy and property damage as reasons for leaving. While Portland shows some signs of improvement with reduced crime rates and new leadership, the city continues to struggle with the highest office vacancy rate among major U.S. business districts.