In the News—Week of March 24, 2025
Deal of the Week
A national bank modified an existing loan on a Delaware-based investor’s office development in Arizona. The 180,000-square-foot office sits on a 10.6-acre parcel near the Loop 101 in north Phoenix. The $17 million loan transaction was handled by Senior Commercial Escrow Officer Joel Montemayor and Underwriting Counsel Chadwick Campbell in our Scottsdale office.
National
Outdoor retailer makes deal to sell, leaseback four distribution centers
Outdoor retailer REI has completed a $230 million sale-leaseback transaction involving four distribution centers across the United States, partnering with New York-based Madison Capital, CoStar reports. The deal encompasses more than 1.9 million square feet of warehouse space in locations in Washington, Pennsylvania, Arizona and Tennessee, with REI continuing to operate these facilities. This strategic decision comes as part of REI’s efforts to recover from recent financial challenges, with the company expecting to break even in its 2024 financial results after experiencing operating losses. Despite these adjustments, REI maintains its expansion plans, with several new store openings scheduled across multiple states through 2026.
National
Developer completes quest to assemble land for Manhattan tower, Ikea store
Extell Development’s CEO Gary Barnett has successfully acquired a crucial Fifth Avenue property for $175 million, completing his decade-long effort to assemble an entire blockfront between West 46th and 47th streets in Manhattan, the New York Post reports. The real estate development company plans to construct a 33-story, 1.1-million-square-foot tower that will house both office space and Manhattan’s first Ikea superstore. The project, estimated to cost over $1 billion, will be developed in partnership with Ikea’s parent company Ingka Investments, which will own its 80,000- square-foot retail portion.
National
Donation of downtown Dallas land may lead to reprieve for Neiman Marcus flagship store
The owner of a land parcel beneath the Neiman Marcus flagship store has agreed to donate the property to the city of Dallas, D Magazine reports. This resolution comes after Saks Global, which acquired Neiman Marcus, had announced plans to close the downtown store by March 31, citing issues with a landlord over a 2,500-square-foot parcel. The dispute centered around a ground lease involving Dallas-based Slaughter Partners that expired on Jan. 31. While city officials and business leaders are optimistic about the store’s future following this donation agreement, Saks Global maintains its closure plans remain in place pending further discussions with the Dallas Consortium.
National
60% of Downtown Denver Partnership firms have returned to office, bolstering market
Denver’s commercial real estate market is showing signs of recovery, with 60% of Downtown Denver Partnership businesses now back in their offices, Denver 7 TV reports. Despite facing challenges like high vacancy rates, with nearly 25% of office space empty in the metro area, some positive momentum is emerging. The 16th Street Mall, which suffered during both the pandemic and construction phases, is nearing completion of renovations aimed at attracting more foot traffic. While some restaurants have closed, new businesses continue to open, reflecting the area’s entrepreneurial spirit and gradual return to normalcy. Founded more than 60 years ago, the Downtown Denver Partnership is a nonprofit organization that aims to enhance downtown Denver.
Arizona
CrowdStrike CEO George Kurtz leads way for major development on Scottsdale Road
A major development called The Parque is set to transform a former amusement park site in north Scottsdale, The Real Deal reports. The $1 billion project at the former CrackerJax site is spearheaded by CrowdStrike CEO George Kurtz. It will span 30 acres on Scottsdale Road, north of the Scottsdale Airport. The Parque will feature a mix of residential, commercial, hospitality spaces, including more than 1,200 homes, a hotel and office buildings. The development’s first phase will center around a park and incorporate apartments, condominiums, retail and dining options. Plans have been submitted to the city’s development review board.
Arizona
Project proposed in downtown Mesa for long-vacant 25-acre parcel
A redevelopment project is being planned for a 25-acre site that has sat vacant for decade in downtown Mesa, The East Valley Tribune reports. Developer Culdesac proposes to build a mixed-use development featuring up to 1,000 residential units and 50,000 square feet of retail space, with construction planned in three phases. The first phase will focus on residential units, including townhomes priced in the $300,000s. Later phases will incorporate retail spaces, restaurants and possibly student housing. The site has seen multiple failed development attempts since the 1990s when the city acquired the land through eminent domain.
