In the News—Week of March 31, 2025
Deal of the Week
An international investor modified its $88,000,000 loan with the New York branch of a global banking group. The borrower/developer acquired the 27-acre parcel in 2021 and originally financed the construction in 2023. The property in North Phoenix is now home to a 900,000-square-foot plant that will provide essential chemicals to the thriving semiconductor industry in Metro Phoenix. The transaction was handled by Senior Commercial Escrow Officer Joel Montemayor and Underwriting Counsel Chadwick Campbell in our Scottsdale office.
National
Critics say DOGE’s termination of federal leases could hurt office market recovery
The Department of Government Efficiency closed federal offices across 29 states in March, Newsweek reports. Under Elon Musk’s leadership, DOGE has terminated over 650 office leases. DOGE says the lease terminations have resulted in more than $400 million worth of savings. The Government Services Administration has been reducing its real estate footprint for more than a decade now. That effort began during President Barack Obama’s second term, said Ed Gregorowicz, who is with Avison Young and previously worked at the GSA. Critics fear that adding this inventory will have a negative impact on the commercial real estate market, particularly on the office sector, which has been showing signs of recovery.
National
New York City receives $37 billion in tax revenue from commercial real estate sector
New York City’s real estate sector reached unprecedented heights in 2024, generating $37 billion in tax revenue, according to the Real Estate Board of New York, the New York Post reports. This figure represents approximately half of the city’s total tax income, with commercial properties contributing the vast majority at 82% of property taxes. The revenue has shown remarkable growth, more than doubling since 2010 and outpacing the overall city budget increase. These funds support essential city services, including salaries for 280,000 municipal workers and $5 billion allocated to MTA infrastructure improvements.
National
NBA Warriors’ star Curry plans 5-story building in Dogpatch neighborhood
NBA superstar Steph Curry is making significant moves in San Francisco’s real estate market with his latest venture — a planned five-story commercial building in the Dogpatch neighborhood, The San Francisco Standard reports. Through his company Thirty Ink, which manages his business portfolio, Curry purchased the property for $8.5 million and plans to transform it into a multifunctional space featuring offices, labs and arts facilities. The development will serve as the headquarters for Curry’s various business ventures, which include media production, spirits, real estate consulting and his partnership with Under Armour.
National
Rap star Flo Rida invests in hometown, buys shopping plaza in Miami Gardens
Rapper Flo Rida and his business partner Lee “Freezy” Prince have acquired Cloverleaf Plaza for $10 million, in Miami Gardens, Black Enterprise reports. The plaza, built in 1955, is now the first black-owned shopping center in the city. The plaza has already seen improvements under the new ownership, with enhanced security and property maintenance receiving praise from long-time tenants. The rapper’s investment in his hometown includes plans for exterior renovations while maintaining normal business operations.
Arizona
DriveTime owner Garcia consolidates holdings at site of former Fiesta Mall
Verde Investments, the real estate firm owned by billionaire Ernest Garcia II, has completed the final land transaction for former site of Fiesta Mall in Mesa, The Phoenix Business Journal reports via KTAR.com. The 80-acre site is dubbed Fiesta Redefined. Verde Investments intends to develop a mixed-use project with 4,000 housing units, up to 1.85 million square feet of retail and commercial space and over 500,000 square feet of open space. Garcia is the owner of DriveTime, a major shareholder of Carvana and was dubbed by Forbes as the richest person in Arizona and now owns all the land on the site.
Arizona
Iconic Tucson Truck Terminal on I-10 up for sale; asking price is $10 million
The Tucson Truck Terminal, an Arizona landmark that was used for filming in the 1970s movie “White Line Fever,” is up for sale, Connect CRE reports. The asking price for The Triple T, as it’s known, is $10 million. The truck stop has been located at Interstate 10 off the Craycroft Road exit since the mid-1960s. Ira T. Morris founded the business in the 1950s and moved the Triple T to the current location when that portion of Interstate 10 was finished. The business has remained in the family until now. The property includes a restaurant, bar, truck wash and motel accommodations.
