In the News—Week of September 23, 2024
Deal of the Week
After handling the acquisition of the property in 2023, the Thomas Title team closed a new loan on a 1.2-acre car wash and service site in downtown Flagstaff, Arizona. The Arizona-based investor borrowed $5.1 million from a Nebraska-based banking group with a growing presence in Arizona. The transaction was closed by Vice President and Senior Commercial Escrow Officer Sheila Hunter.
National
Allstate sells building in Chicago Loop for about third of what company paid
Allstate has recently sold a Chicago Loop office building at little more than third of what it paid in January 2022, CoStar reports. The insurance giant parted with the 10-story building at 29 N. Wacker Drive for $11 million. It bought the building for $29.7 million and once considered the property as a potential headquarters. At the time of the purchase Allstate was selling its longtime corporate campus in Chicago’s northern suburbs. Allstate gave up on the idea of using the Wacker Drive building as a headquarters, and instead now uses space near its former campus in Glenview.
National
Renowned upscale shopping district in Manhattan undergoing makeover
Uptown Madison Avenue, New York City’s renowned luxury shopping district, is undergoing significant transformations, the New York Post reports. Two major office retail buildings are scheduled for demolition to make way for mixed-use projects, including a potential 1,200-foot skyscraper. The future of the iconic former Barneys building, which has been vacant for four years, remains uncertain. These changes are expected to bring new residential, retail and hospitality spaces to the area. Despite concerns, local business leaders remain optimistic, believing that the influx of new residents will benefit the district’s stores, restaurants and other establishments.
National
Three Mile Island nuclear plant to sell power to Microsoft for data centers
Three Mile Island, infamous for the worst nuclear disaster in U.S. history, is set to reopen its Unit 1 reactor in 2028, CNN Business reports. Constellation Energy has entered a 20-year agreement with Microsoft, which will use the plant’s carbon-free energy to power its AI-focused data centers. Microsoft and other tech companies are building data centers across the country at a rapid pace. The reopening, subject to regulatory approval, is expected to create thousands of jobs and significantly boost Pennsylvania’s economy. This move highlights the growing interest in nuclear energy as a reliable, zero-carbon power source, particularly for tech companies with increasing energy demands. However, the decision also reignites debates about nuclear safety and waste management. The plant, near Harrisburg, suffered a partial meltdown in 1979. The plant released radiation into the air. Studies of increased cancer rates in the area after the accident have produced mixed results.
National
Pelosi backing shows confidence in San Francisco’s CRE market
Former House Speaker Nancy Pelosi and her husband Paul have made significant investments in San Francisco’s commercial real estate market, despite its current downturn, The San Francisco Standard reports. Their portfolio includes stakes in office buildings, hotels and other properties across the city. These investments, made through various partnerships and LLCs, represent a vote of confidence in San Francisco’s real estate market from a prominent political figure. Technically, her Congressional office points out, Nancy doesn’t own stock or other investments. But California is a community property state, so both married partners share all assets acquired during the marriage.
Arizona
Phoenix commercial real estate veteran to manage private equity fund
ElmTree Funds, a Midwestern private equity firm, has appointed Blake Curtis to manage $4 billion in funds aimed at finding bargains in the commercial real estate market, The Real Deal reports. Curtis, based in Phoenix, will focus on industrial properties across Arizona and the nation, with a particular emphasis on build-to-suit projects and sale-leaseback deals for two recently launched funds. He has an extensive background in various sectors of commercial real estate in Arizona, including multifamily, retail and industrial.
Arizona
Fight brews in Tempe over turning golf course into 277 housing units
The Shalimar Golf Club in Tempe is at the center of a contentious development proposal, The Tempe Tribune reports. Dick and Jane Neuheisel, who have owned Shalimar since 1984 are both 88 and have tried to sell it for years. They have a deal with BB Living and Cachet Homes, which plans to transform the 44-acre golf course into a 277-unit residential community, featuring a mix of million-dollar houses, rental homes and townhouses. This plan requires a zoning change from agricultural to residential, allowing for higher density development. While the developers argue that their proposal will enhance property values and provide unique housing options, current Shalimar homeowners are fighting to preserve the golf course’s green space and character. Tempe Mayor Corey Woods has said he’ll back the plan only if the current surrounding homeowners support it.
