In the News—Week of November 25, 2024
Deal of the Week
A national self-storage company has acquired a $20 million storage facility in Maricopa County’s Southeast Valley from a locally based family investment group. The sale was closed by Bryan Selna, Vice President and Senior Commercial Escrow Officer, at our Scottsdale office.
National
Billionaire Tilman Fertitta has big plans for River Oaks District
Billionaire Tilman Fertitta plans to expand Houston’s River Oaks District, a prestigious mixed-use development he acquired earlier this year, The Real Deal reports. The expansion will incorporate a newly purchased 4.3-acre plot on Westheimer Road, with plans emphasizing open spaces and boutique retail rather than maximizing density. Fertitta, the Houston Rockets owner and CEO of Landry’s restaurants who once starred in a reality TV show, has already enhanced the property’s luxury offerings by introducing high-end dining and retail establishments. The development, which currently encompasses over 300,000 square feet of luxury retail space, office facilities and upscale apartments, aims to strengthen its position as Houston’s premier shopping destination under Fertitta’s leadership.
National
Mattel isn’t toying around when it comes to revamping workspace
Mattel, the iconic toy company, is undertaking a significant transformation of its workspace facilities in El Segundo, the Los Angeles Times reports. The company behind Barbie and Hot Wheels plans to relocate its studio operations to a newly renovated 60,000-square-foot building by 2025, featuring modern amenities like outdoor patios and kitchen areas. Additionally, Mattel will move its design center to a larger 167,767-square-foot space in 2026, purchased for $59 million. These changes reflect a broader trend of companies reimagining their office spaces to enhance creativity and attract employees back to in-person work following the pandemic. Mattel is maintaining a hybrid work model for its approximately 2,000 El Segundo employees.
National
Attempt to auction off Athletics’ first home in Vegas draws no bids
The City of Las Vegas attempted to auction off Cashman Field, a 50-acre property near downtown, but received no bids despite substantial interest from multiple parties, Fox5Vegas reports. The minimum bid was set at $33.9 million for the site, which currently serves as home to Lights FC soccer team. Potential buyers expressed interest but wanted a provision allowing 90 to 120 days to secure land use approvals before finalizing any purchase. The city plans to consider this feedback and likely relist the property for auction in January, though this decision will come after two new council members take office in December. Cashman field was built as a minor-league ballpark and it holds the distinction of being the Athletics’ first home in Las Vegas. The Athletics are scheduled to move from Oakland to Las Vegas as soon as a new ballpark is ready. They will play home games in Sacramento until then. But in 1996, while renovations were being finished on the Oakland Coliseum, the Athletics played their first six “home” games at Cashman.
National
Mortuary that burned finds new life as a workforce development center
A former mortuary in South Omaha has been transformed into a workforce development facility through a $3.2 million renovation project, the Nebraska Examiner reports. The building, which was previously damaged by fire, will serve as a hub for Heartland Workforce Solutions, offering career services and job connections to local residents. The facility includes various amenities such as computers, meeting spaces and a planned coffee shop, with bilingual staff available to assist visitors. Beyond its primary mission, the project incorporates a community investment program allowing local residents to build equity through small monthly investments.
Arizona
Phoenix area industrial market tops nation in analysis of key indicators
The Greater Phoenix area ranked as the leading industrial market in the United States during Q3 2024 in a comprehensive analysis of key market indicators, AZ Big Media reports. CommercialCafe looked at the top industrial markets and ranked on vacancy rates, development pipelines, rental trends, loan maturities and search activity. The Phoenix area topped the survey primarily because of its substantial development pipeline, with over 32 million square feet of industrial space under construction, representing an impressive 8.7% expansion of current inventory. Notably, Phoenix delivered 6 million square feet of new industrial space in Q3 alone, maintaining relatively low vacancy rates around 5.2%. The market’s strength is further shown by a 9.2% year-over-year increase in rental rates.
Arizona
Developer wins on most issues in suit with construction firm
Five Star Development secured a significant legal victory in a suit surrounding the Ritz-Carlton development project in the Town of Paradise Valley, winning most claims in a jury verdict against PWI Construction, Hoodline reports. The dispute originated from PWI’s $7 million lien claims for alleged non-payments, though the jury ultimately determined Five Star only owed approximately $429,000. The $2 billion luxury development, which includes both a hotel and residential units, progressed despite the legal challenges. The project continues under new construction management. The hotel portion is expected to be finished next fall.
