In the News—Week of October 13, 2025
Deal of the Week
Thomas Title & Escrow is proud to announce the successful closing of a $31.7 million multifamily sale in Tucson, Arizona. The property was acquired by a Southern California investment group based in La Jolla, California, from a New York–based entity. This transaction underscores Thomas Title & Escrow’s continued expertise in facilitating complex, high-value commercial closings across the Southwest.
The multifamily property is a 312-unit community located in the South Tucson submarket. Spanning approximately 189,000 square feet across roughly 8.5 acres, it offers convenient access to major employment centers and transportation corridors, making it a highly desirable investment for the Southern California–based buyer as they expand their Arizona portfolio.
The Thomas Title & Escrow transaction team included VP and Senior Escrow Officer Bryan Selna, Director of Commercial Services Kylie Cook, Senior Commercial Title Officer Teri Guevara, and Jesse Hudson and his team from Northmarq.
This transaction involved a defeasance process to retire the existing debt prior to closing, requiring seamless coordination among multiple parties, including Newmark, U.S. Bank, and the Thomas Title & Escrow team. The successful completion of this transaction highlights Thomas Title & Escrow’s commitment to excellence, precision, and collaboration in handling complex commercial real estate deals.
National
San Francisco planners give OK to 29-story hotel in face of declining tourism numbers
San Francisco’s Planning Commission has approved construction of a 29-story, 211-room boutique hotel tower at 570 Market St. in the Financial District, despite the city’s tourism industry still recovering from pandemic-related losses, the San Francisco Examiner reports. While the developer’s analysts predict the hotel will open into a revived market, neighboring property owners have raised concerns about construction impacts and market saturation. The city’s tourism numbers have been climbing since the 2020 low of 11.8 million visitors but remain below the 2019 peak of 26.2 million, with hotel occupancy rates projected at 65-66% through 2026 compared to 82.7% in 2019. This approval comes as several other luxury hotel projects in downtown San Francisco face delays or stalled construction.
National
Conversions from office to residential see significant uptick in Manhattan
Office-to-residential conversion has been common for the past few years. But Manhattan is experiencing a surge in such conversions, with 3.3 million square feet converted in 2024 — double the previous year’s amount — and 4.1 million square feet underway through August 2025, the New York Post reports. This trend is transforming traditionally office-dominated neighborhoods like Midtown and the East 40s-50s corridors, bringing residential energy to areas previously quiet after business hours. The conversion boom addresses two critical issues: New York City’s severe housing shortage and the growing obsolescence of older office buildings, facilitated by supportive city rezonings and state tax incentives. Notable projects include the transformation of 5 Times Square into 1,250 apartments and the former Pfizer headquarters becoming 1,602 rental units — the largest such conversion in the United States.
National
Fitness industry is getting pumped up in Los Angeles, leasing larger spaces
Los Angeles is experiencing a significant expansion in the fitness industry, with gym operators securing large retail spaces in malls, apartment buildings and mixed-use developments, CoStar reports. Major players such as Equinox, Royal Personal Training and Gold’s Gym have signed leases ranging from 30,000 to 60,000 square feet, substantially larger than the typical 5,000-square-foot gym space in the area. This growth reflects a post-pandemic recovery, as fitness centers rebound from earlier restrictions and consumers return to in-person workouts. Landlords are increasingly turning to fitness concepts as anchor tenants while traditional retailers continue to downsize, with over 2 million square feet of retail space returned in the past year.
National
Hedge fund founder Griffin reduces firm’s presence in Chicago to just two office floors
Ken Griffin, the billionaire founder of Citadel, revealed that his hedge fund’s presence in Chicago will be reduced to just two floors as the company continues its shift to Miami and New York, the New York Post reports. Griffin cited ongoing challenges in Chicago, including rising crime rates and high taxes, as key factors driving the exodus. The company’s workforce in Chicago has decreased from approximately 1,300 employees to just a few hundred, with many longtime employees willingly relocating despite having established lives in the city. Griffin relocated Citadel’s global headquarters from Chicago to Florida in 2022 after more than three decades in the Windy City. Griffin no longer owns The Citadel Center, named for the fund. The namesake building currently is for sale.
Arizona
Construction of industrial space in Valley slows, but market still exhibits strength
Phoenix’s industrial real estate market continues to show strength with 460 million square feet of total inventory, though construction activity has decreased significantly, AZ Big Media reports. Figures from Kidder Mathews show construction slowed to 11.9 million square feet in second quarter of 2025 from 28 million square feet a year before. The market experienced 2.4 million square feet in direct net absorption and 11.3 million square feet in total leasing activity year-to-date, though vacancy rates have risen to 13.4%. Market uncertainty related to tariffs may temporarily slow leasing activity, but long-term demand in logistics and manufacturing sectors is expected to grow.
Arizona
Metrocenter Mall demolition is complete; builder selected for residential component
Concord Wilshire Capital has finished demolishing the former Metrocenter Mall and selected Oakwood Homes as the residential builder for the project, AZ Big Media reports. The $850 million mixed-use development on 64 acres is called The Metropolitan. The project will include five residential communities with townhomes and apartments at various price points, many already sold, with construction beginning in April 2026. Plans call for more than 700 residential units. The development will feature The Loop, a 116,000-square-foot retail and entertainment district designed by Diversified Partners, offering restaurants, shops, event spaces and community gathering areas. The entire project aims to create a walkable urban village integrated with light rail, connecting housing, retail, dining and entertainment through pedestrian and bike pathways.
