In the News—Week of November 20, 2023
Deal of the Week
A multi-state cannabis operator acquired a marijuana cultivation site in Yavapai County, Arizona from an Arizona-based entity. The 8-acre site features a 25,000-square-foot light industrial building. The property transacted for $6,500,000, and was partially financed by a locally-owned community business bank in Arizona. The transaction was closed by Bryan Selna, Vice President and Senior Escrow Officer, in our Scottsdale office.
Nashville edges out Phoenix for top spot in Urban Land Institute rankings
For the third straight year Nashville ranks highest in a survey for appeal to real estate investors, CoStar reports. Research conducted by the Urban Land Institute shows Nashville ahead of Phoenix and Las Vegas. Phoenix jumped seven places. Las Vegas had been outside the top 20. Nashville and Austin, Texas are starting to see some negative effects from rapid growth in recent years, research shows.
Blackstone reportedly likely buyer of CRE loans from Signature Bank failure
Bloomberg News reports that Blackstone is likely to outbid rivals for a $17 billion portfolio of commercial-property loans from the failed Signature Bank. A report from Reuters says that Federal Deposit Insurance Corp has been looking to sell the real estate loan portfolio since September. Starwood Capital Group and Brookfield Asset Management Ltd were involved in the bidding.
Developer plans to tear down data center and build skyscraper
A Texas-based real estate group has purchased a data center in downtown Salt Lake City with plans to build a high-rise, Building Salt Lake reports. The initial plan to convert the existing center into a residential building fell through due to high construction costs and financing issues. Dart Interests acquired the property and intends to demolish the center to make way for a skyscraper. The site’s zoning allows for flexible height restrictions, meaning the new owner can build as tall as desired. Dart Interests has already begun preparing the 2.4-acre site for demolition and development.
Demand for office space in Seattle falls below other high-profile cities
A survey of eight high-profile cities shows Seattle had the biggest quarterly decline in demand for office space, GeekWire reports. Figures from VTS, a commercial real estate technology platform, show demand in Seattle 43% down from the last quarter and 52% from the year before. VTS also surveyed Los Angeles, San Francisco, Boston, Washington, D.C., New York City and Chicago. Seattle experienced a three-month absence of demand from tenants seeking office spaces of 50,000 or more square feet.
Council approves a $1 billion development in Scottsdale
George Kurtz, co-founder of cyber security company CrowdStrike, managed to get approval of a $1 billion mixed-use development in Scottsdale, the East Valley Tribune reports. Named the Parque, the plans call for 1,182 apartments and condos, a 223-room hotel, offices and restaurants and shops. The project will include a lot of trees and solar panels. Kurts claims in will have a “net zero” carbon impact. It replaces an amusement park, CrackerJax. The council voted 5-2 for approval.
Surfing park in Mesa on course to open to public in summer of 2024
Cannon Beach plans to open a surf park next summer near Warner and Power roads in Mesa, The Arizona Republic reports. Founder Cole Cannon has had to develop wave technology for the park. “There is no blueprint for what we are doing,” he said. He plans to develop 10 similar sites around the country. Cannon Beach will include trampolines, a BMX course, a hotel and restaurants.