In the News—Week of September 16, 2024
Deal of the Week
As part of a series of refinance transactions across its portfolio of senior living assets, an Arizona-based group closed a new loan on the next tranche of properties, all in the northwest Phoenix MSA area. The $54 million loan was funded by a North Carolina-based bank. The loan covers over 600,000 square feet across four sites. The transaction was closed by Assistant Vice President and Senior Commercial Escrow Officer Joel Montemayor.
National
Commercial real estate prices stabilize despite interest rates, costs to build
A report shows commercial real estate prices are stabilizing despite higher interest rates and construction costs, RE Journals reports. Integra Realty Resources’ 2024 Mid-Year Commercial Real Estate Report shows the sector’s resilience. Key trends include adaptive reuse in industrial spaces, multifamily market resilience, retail innovations and evolving office sector dynamics. “While the commercial real estate market continues to face challenges, our 2024 Mid-Year Report demonstrates the industry’s remarkable adaptability,” says Anthony Graziano, chief executive officer of Integra Realty Resources. The report covers nearly 60 U.S. markets across four property types: office, multifamily, retail and industrial.
National
Luxury residential tower in NYC to offer distinct, boutique offices
A new luxury residential tower in New York City is set to feature a hidden gem: over 200,000 square feet of high-end office space, the New York Post reports. The 1,000-foot-tall skyscraper at 520 Fifth Ave., developed by Rabina, will house 100 luxury condos alongside 25 floors of boutique offices. These office spaces, ranging from 6,500 to 12,000 square feet, are designed to offer tenants a distinct identity and sense of arrival.
National
Out you go: Infinity Collective evicts LuxUrban from Miami Beach property
Infinity Collective, a New York-based company, has evicted LuxUrban Hotels from a five-story building in Miami Beach due to unpaid rent, The Real Deal reports. This eviction is part of a series of setbacks for LuxUrban, a publicly traded company that leases properties for short-term rentals. LuxUrban has faced multiple evictions, including from properties on Collins Avenue and potentially from the iconic Hotel Astor. The company’s troubles began earlier this year when a short seller warned of financial problems, leading to the removal of LuxUrban properties from Wyndham’s platform and the firing of its CEO after just three months.
National
What’s in a name? A $15 million donation from a wealthy alumnus
The University of Colorado’s Real Estate Center has undergone a significant transformation, receiving a new name and substantial financial support from an alumnus, Biz West reports. Michael A. Klump, a CU alumnus and successful commercial real estate investor, has made a $15 million donation to the institution. In recognition of this contribution, the center has been renamed the Michael A. Klump Center for Real Estate. The majority of the funds will be allocated to the Real Estate Center at the Leeds School of Business, supporting various academic initiatives and scholarships. A portion of the donation will be directed toward student wellness programs, emphasizing the university’s commitment to holistic student development.
Arizona
Data center park in Buckeye could become one of largest in the nation
Tract, a developer of master-planned data center parks, has unveiled plans for a massive 1.8GW data center park in the Phoenix metro area, Data Center Dynamics reports. The company has acquired a 2,069-acre land parcel in Buckeye with potential for up to 20 million square feet of data center space across 40 individual facilities. This project, which could become one of the largest data center parks in the country, is expected to drive substantial revenue and create hundreds of high-paying jobs. Notably, the development aims to reduce water demand and preserve natural spaces, aligning with sustainable growth objectives. The announcement comes after Tract’s previous attempt to develop a nearby site in Buckeye was withdrawn due to local opposition.
Arizona
Haydon begins work on $70 million data center in Mesa for Edged Energy
Phoenix-based Haydon has begun construction on a data center for Edged Energy in Mesa, Construction Dive reports. The $70 million project is part of a larger trend, as Mesa is rapidly becoming a significant hub for data centers, particularly those capable of supporting AI computing. The city is experiencing a surge in data center construction, with approximately 14.8 million square feet of space either planned or under development. This boom is putting pressure on local contractors, who are facing increased competition for labor and materials.
