In the News—Week of November 14, 2022
Deal of the Week
A New York-based investment group refinanced a portfolio of seven senior and assisted living communities in two counties in Arizona. The $53 million loan was provided by a national commercial bank, also based in New York. The transaction was closed by Joel Montemayor, Assistant Vice President and Commercial Escrow Officer, in our Scottsdale office.
Hartford developers decide to add more apartments instead of offices
The redevelopment of the former Colt Firearms complex is planning to add 45 more apartments to the site, the Hartford Business Journal reports. The Colt Gateway Partnership, which is redeveloping a 17-acre campus in downtown Hartford, has found a soft office market requires some rethinking. Colt Gateway Partnership has asked the Capital Region Development Authority for a $1.5 million loan to help pay the almost $7 million cost of the conversions. Colt Gateway already has 205 apartments in the project.
Energy & Efficiency
Climate tech company provides mobile energy to help with disasters
Sesame Solar, a climate tech startup, says its prototype can provide a mobile, energy source for communities hit by a disaster, Forbes reports. Sesame Solar’s nanogrid has provided power for hurricane victims and rescue workers in the aftermath of Hurricane Maria and Hurricane Ida. Sesame Solar is working with the Air Force to provide hydrogen power nanogrids.
Sugar Land sweetens the deal for company HQs that extend leases
The City of Sugar Land has approved a program that offers companies $6,000 per employee to keep their headquarters in the Houston suburb, the Greater Houston Partnership reports. In order to qualify, a company must have its headquarters in the city, have at least 50 employees whose primary job is there, and extend an existing lease by five to 10 years. “Retaining office headquarters is key to maintaining high-paying jobs in Sugar Land,” Sugar Land’s economic development director, Elizabeth Huff, says. “Our new incentive program ensures we maintain our office headquarters locations during this highly competitive office market and hopefully grow those high-quality job opportunities in our community.”
Regent properties CEO bets big on Dallas office market
Regent Properties CEO Eric Fleiss is bucking the trend and betting big on the office market, D magazine reports. Fleiss moved his family from Los Angeles and set up a second headquarters in Dallas. “I may have a freshly minted Texas driver’s license, but our company has been doing business in Texas for more than 25 years,” he tells the magazine. He isn’t buying the hype about how work-from-home will kill office values. “I think there is a lot of noise out there right now when it comes to office investment,” he says. “What we’re seeing in the market — particularly at the high end — is the option to buy top-notch assets at what we think are great prices. A pandemic followed by inflation and then a credit crunch; we think this is the perfect time to be putting the pedal to the metal.”
Industrial vacancies remain low as rents in Greater Phoenix rise
The industrial market in the Greater Phoenix area remains strong in the third quarter as rents rose significantly, AZ Big Media reports. Figures from Transwestern Real Estate Services show year-over-year rent increases of around 20% across the market. The market has 293.5 million square feet of space, more than 56 million square feet under construction, and 108 million square feet planned. The vacancy rate is 4.6%.
Mexico City opens tallest building in area; second tower is blocked
Mexico City’s Mítikah commercial complex celebrated the opening of the tallest tower in the metropolis, but picketers were there to deliver a message that a second tower will never be built, Mexico News Daily reports. The 267-meter tower in the Xoco neighborhood took 14 years to complete. The site is recognized as the site of an indigenous town from before the Spanish conquest of Mexico. The owners of Mítikah, Grupo Fibra Uno, were supposed to consult the local population before building. Locals say that never happened. Mayor Claudia Sheinbaum said the owners, who were hoping to build a second tower, do not have permission. And it seem unlikely they will get it.