In the News—Week of November 18, 2024
Deal of the Week
Amerco, the real estate division of U-Haul, recently acquired an expanded self-storage facility in Kingsport, TN, for $3,670,000. The fully climate-controlled facility doubled in size following its expansion in Q1 of 2024. This acquisition adds 315 units to U-Haul’s robust network of self-storage properties. The transaction was closed by Joel Montemayor, Vice President and Senior Commercial Escrow Officer, in our Scottsdale, AZ, office.
National
CRE lending market showed healthy uptick in last quarter
The commercial real estate lending market showed significant growth in the third quarter, CBRE’s reports. The CBRE Lending Momentum Index rose by 13% from the second quarter and 15% year-over-year. Acquisition financing saw a notable increase, and there was robust issuance across all asset classes, including large office transactions. Despite some caution from banks, positive signs emerged in syndicated loans for high-quality asset classes like industrial, multifamily and data centers.
National
Apple picks up lease in Seattle building that Facebook parent left
Meta moved out and Apple moved in. Apple recently secured a lease for the 190,000-square-foot Arbor Blocks building, a six-story structure in the South Lake Union area, The Real Deal reports. Meta was the previous tenant. This move comes as part of Apple’s expansion in the Seattle region, where it already has a significant presence. The building is close to Apple’s existing Puget Sound headquarters. Meta announced last year it would sublease the Arbor Blocks building as part of its “year of efficiency.”
National
Big Lots auctioning off 255 leases as part of its Chapter 11 efforts
Big Lots is auctioning off leases for 255 stores as part of its Chapter 11 restructuring, CoStar reports. The troubled retail company’s planned store closures have escalated to over 500 locations, signaling a significant downsizing of its operations. A&G Real Estate Partners is managing the auction process, offering leases in two groups with bid deadlines set for November and December. This move comes as Big Lots prepares for a potential acquisition by Nexus Capital Management, highlighting the retailer’s efforts to streamline its portfolio and attract buyers. The available leases span 41 states, presenting opportunities for other expanding retailers to acquire prime locations.
National
Phillips 66 plans to close oil refinery in Los Angeles by end of next year
Phillips 66 plans to close its Los Angeles refinery by late 2025, a decision that will affect around 900 jobs and 650 acres of industrial land in Carson and Wilmington, Urbanize LA reports. The company cites uncertain long-term sustainability and market dynamics for the closure. To explore future uses of the strategically located properties, Phillips 66 is collaborating with development firms, including Catellus Development Corporation and Deca Companies. Los Angeles City Councilmember Tim McOsker views this as an opportunity to improve air quality, create new jobs and advance LA’s climate goals.
Arizona
Lack of foot traffic makes Mesa’s downtown a tough sell for retailers
Mesa wants to attract more retail, particularly in its downtown area, the Mesa Tribune reports. While the downtown area boasts unique shops, restaurants, a convention center and light rail, it faces issues such as insufficient foot traffic and walkability. A consultant firm, hired to boost the city’s retail base, has identified eight distinct retail districts in Mesa, each with its own customer base and challenges. A firm called The Retail Coach is working on attracting new retailers and restaurants to these areas, using cellphone data to analyze customer patterns and project retail demand growth. “I’m a big believer that if you’re going to have a successful retail district, successful downtown you have to have a healthy mix of local, regionals and nationals playing together working together in these areas,” Aaron Farmer, president of The Retail Coach, said at the Nov. 7 council study session. “The nationals might not be downtown but they’re in that surrounding area. They’re helping draw and bring people there as well.”
Arizona
Mini-golf chain backed by Tiger plans its third Valley location for Gilbert
PopStroke, a mini-golf entertainment concept backed by Tiger Woods, has proposed opening a location in Gilbert, the Phoenix Business Journal reports via ABC15. The new venue, near the SanTan Village shopping center, would be the third in the Valley and an indoor facility. The proposed 64,306-square-foot building would house a 36-hole indoor miniature golf course, along with a 10,450-square-foot clubhouse featuring dining and a full-service bar. PopStroke, which is based in Florida, has locations in Glendale and Scottsdale among its 16 facilities nationwide.
