In the News—Week of September 15, 2025
Deal of the Week
Thomas Title & Escrow is proud to announce the successful closing of a commercial refinance of a build to rent community for around $24 million in Arlington, Texas. This BTR asset is strategically located within the Dallas–Fort Worth logistics corridor, a market known for its strong demand and national distribution footprint. The refinance strengthens the borrower’s position in one of the most competitive markets in the country. At Thomas Title & Escrow, this transaction was guided by Senior Escrow Officer Bryan Selna, with Georgette Khoury providing closing support, Melissa Huerta overseeing policy review and e-recording, and Eric Stewart managing title and survey review. Their collaboration and expertise ensured a smooth and timely closing, reflecting our team’s commitment to excellence in complex, multi-party commercial transactions.
National
Permits for multifamily projects in LA fall as developers push for change
Los Angeles is experiencing a significant drop in new apartment building permits, The Real Deal reports. Only 90 buildings (3,704 units) issued through August 2025, down from 157 buildings (7,609 units) in 2023. Developers cite Measure ULA, the “mansion tax” imposing 4%-5.5% tax on property sales over $5 million, as a key factor driving them to pursue projects outside city limits. Many developers are finding it more economical to purchase existing buildings rather than construct new ones due to the combination of high interest rates, construction costs and the mansion tax. This development slowdown poses challenges for LA’s housing mandate of planning for 456,643 new units by 2029. “The math ain’t mathing,” Chris Tourtellote, managing director at Marina Del Rey-based LaTerra Development, tells The Real Deal. “You build for $100 million, sell it for $105 million and pay $5.5 million in taxes.” Tourtellote argues the tax should be on your profit, not on your sale price. “It makes it tough in a city that already has high development impact fees and affordability requirements, and even construction costs are higher and interest rates are higher.” Proposed legislation, co-authored by Sen. Lena Gonzalez and Assembly member Tina McKinnon and backed by Mayor Karen Bass, could have relaxed the transfer taxes as outlined in United to House LA measure, aka Measure ULA. But action on Gonzalez’s and McKinnon’s bill has been postponed.
National
United States leads way as global hotel construction pipeline reaches record high
The global hotel construction pipeline reached a record high of 15,871 projects in the second quarter, with the United States leading at 40% of all projects, Hotel Dive reports. Dallas topped the list of cities with the most hotel projects (199), followed by Atlanta (165), Chengdu, China (143), Nashville (128) and Austin (125). Upper midscale and upscale segments represented over half of global pipeline projects, while luxury and upper upscale segments showed significant growth. By the end of 2025, nearly 2,000 new hotels are expected to open worldwide, with 735 in the United States.
National
Zara founder sells Madison Avenue building for less than half what his family paid in 2006
Amancio Ortega, the billionaire Zara founder, is selling his Madison Avenue office building for approximately $50 million, representing a nearly 60% loss from his 2006 purchase price of $115.5 million, the New York Post reports. This significant markdown reflects the broader decline in Manhattan’s office real estate market following the pandemic. Despite this loss, Ortega continues to invest in real estate elsewhere, recently acquiring Paris’s Hotel Banke for $113 million and property in Barcelona. The situation exemplifies New York City’s shifting real estate landscape, where many vacant office buildings are being converted into residential spaces to address housing demands.
National
Louis Vuitton plans to add five stories to building that will house flagship store
LVMH is planning to replace its Louis Vuitton flagship store on Fifth Avenue with a significantly larger 25-story building spanning 148,000 square feet, The Real Deal reports. The new 485-foot-tall property will feature a 10-story retail space, a cafe with Central Park views, exposition space about the brand’s history, plus luxury amenities including a spa, restaurants and a rooftop bar and garden. In exchange for a floor-area bonus, LVMH will fund improvements to a nearby subway station, including an ADA-compliant elevator. This redevelopment is part of LVMH’s broader strategy to reimagine its retail properties on both U.S. coasts. LVMH is in the process of razing the old building, which stood 20 stories.
Arizona
Phoenix area ranks fourth for number of multifamily units expected for 2025
The Phoenix area is the fourth-largest apartment builder in the United States for 2025, with plans to complete 21,188 new units across the metro area, AZ Big Media reports. The construction is distributed throughout the region. The City of Phoenix has 6,409 units planned. The East Valley (7,500 units) and West Valley (5,300 units) have significant numbers as well. Phoenix is among four metro areas nationwide that expect to build more than 20,000 apartment units in a single year. The Valley’s strong showing comes amid a national trend of apartment construction shifting southward, with the South now accounting for over 50% of the half-million apartments expected to be completed nationwide in 2025.
Arizona
Apartment complex boasts of having a parking garage, a first for Gilbert
Wood Partners has opened Alta 87, a new 257-unit luxury apartment community in Gilbert, marking the town’s first development with a structured parking garage, AZ Big Media reports. Located on Arizona Avenue with access to major freeways and downtown areas, the complex offers one- to three-bedroom units with a pool, spa, two-story clubhouse, fitness center and pickleball courts. This development is part of Wood Partners’ ongoing expansion in the Phoenix market, following three multifamily communities delivered last year that added over 630 units to the region.
