In the News—Week of May 31, 2022
Deal of the Week
A joint venture of national investors and developers has embarked on a $460 million project in downtown Phoenix. The mixed-use development will include retail, office, residential and mass transit. Vice President and Senior Commercial Escrow Officer, Christine Hughes, in our Scottsdale office, closed the $200 million construction loan from a national real estate lender.
Fashion magazine, luxury brands entering hotel business
Elle International, parent of the fashion magazine, is one of several businesses extending their brands to the hotel sector, The Real Deal reports. Elle Hospitality is set to open Maison Elle in Paris in October. Bulgari, Armani and Fila plan to open inns. “As travel (picks up) more and more, travelers want to come to a hotel for an experience, and we… believe we can attract Elle readers and fashion lovers,” chief executive of Elle International’s CEO, Constance Benqué, says.
Energy & Efficiency
California energy officials warn state needs power to avoid blackouts
California energy officials says the state’s electrical grid lacks capacity to avoid blackouts if heatwaves, wildfires or other events hit the Golden State, Reuters reports. Officials warn of a shortfall of 1,700 megawatts this year that could go as high as 5,000 megawatts. One megawatt is about the amount of electricity to power 750 homes. “We are in a place now where we have to factor in a new landscape in terms of the challenge in front of us with bringing the projects that we need online,” Karen Douglas, an adviser to Gov. Gavin Newsom, tells reporters at briefing.
Houston’s thriving apartment sector attracts out-of-state investors
Houston’s hot apartment sector is attracting out-of-state investors as a recent sale of 1,500 apartment units shows, the Houston Chronicle reports. San Diego investor Donald J. Dougher II purchased five of its vintage apartment properties for a total of more than $150 million from Houston real estate firm Nitya Capital. Figures from commercial real estate data firm CoStar show that out-of-state investors accounted for more than 70% of buyer volume in the Houston apartment sector in the past year. Houston ranked fifth among cities for multifamily investment in the past year.
Irving apartment project seeks to attract high-end tenants
Oklahoma-based American Residential Group has planned a development that will target a high-end renter in the Las Colinas’ Urban Center in Irvington, The Dallas Morning News reports. The 275-unit community, called The Mustang, will have larger residences aimed at more mature renters, perhaps “a couple that’s maybe ready to move on from the responsibility of their 4,000-square-foot home,” American Residential Group’s president, Robert Leikam, said. “They want to be able to travel and not worry about a house.”
Developer plans mixed-use project downtown near Westward Ho building
Chicago-based developer LG Development Group has proposed building a 29-story multifamily building in downtown Phoenix on Central Avenue between Pierce and Fillmore streets, The Phoenix Business Journal reports via KNXV-TV. The tower will have 747 residential units with studio and one-to-three-bedroom apartments. Plans call for about 29,000 square feet of retail. For almost 20 years, the site has been used as parking lot. Underneath the parking lot is an underground bowling alley that thrived in the 1940s.
State of Tlaxcala wants to encourage industrial development along Route 136
The state government of Tlaxcala is promoting the development of the Route 136 Industrial Park and has attracted almost $23.9 million (U.S.) in private investment, Mexico Business News reports. The 75-hectare development is in its first phase. Tlaxcala is consolidating its position as a logistics and manufacturing hub in the central and southeastern areas of the country. “Our resilient macroeconomic stability and excellent human capital make us the best option for investment projects,” Tlaxcala’s minister of economic development, Javier Marroquín, says.