Executive Summary

1. Capital is moving decisively into income-producing and well-located assets. The five largest Metro Phoenix deals of May, all reported this week, were led by the $103 million sale of the University of Phoenix Riverpoint office campus and by major industrial trades, including The Hub @ 202 at $135 million and West Summit at Surprise at $63.9 million. Buyers are paying premiums for stabilized cash flow and clear redevelopment optionality.

2. Multifamily is rebalancing, not retreating. Colliers' Q1 2026 report shows Phoenix absorbing its supply wave, with occupancy at 94.4 percent (up 0.4 points year over year) even as average effective rent slipped 4.8 percent. Conviction in the metro held firm this week, with a $141 million construction loan for the 245-unit IKONIC Scottsdale tower and the $95.3 million institutional sale of Mesa's 339-unit Longbow Luxury Apartments.

3. Community and infrastructure pressures are reshaping land strategy. Pinal County's proposed La Osa data center, once slated to be Arizona's largest, was cut roughly 80 percent after public opposition; the Goldwater Institute sued to block a discounted downtown land sale to an affordable-housing developer on Gift Clause grounds; and patient capital pushed outward with Arizona Public Service's $38.9 million purchase of 1,260 acres in Gila Bend.

Land

Arizona Public Service Buys 1,260 Acres in Gila Bend for $38.9 Million - AZ Big Media (June 3, 2026) Arizona Public Service acquired a 1,260.27-acre tract of agricultural land in Gila Bend, one of the metro's five largest commercial real estate deals in May. Parcels of this scale along the Interstate 8 and State Route 85 corridor are increasingly targeted for utility, energy, and long-horizon industrial conversion as closer-in West Valley land is absorbed.

• Sale price: $38,943,172 for 1,260.27 acres (about $30,901 per acre, roughly $0.71 per land SF)

• Sellers: Cheryl Banning and Robert L. Van Hofwegen

Source: AZ Big Media

Arizona's Largest Proposed Data Center Scaled Back 80 Percent After Opposition - KJZZ (May 28, 2026) Vermaland's La Osa Energy Center near Eloy, once positioned as the largest data center project in the state, will be dramatically downsized after a wave of resident opposition focused on water and power. At a May 27 Pinal County Board of Supervisors hearing, the developer requested a continuance to submit smaller plans, deferring the rezoning decision to August 26, 2026.

• Building count cut from 59 to 11 data centers (about an 80 percent reduction)

• Site spans roughly 3,300 acres; energy demand capped near 1 gigawatt

Source: KJZZ

Goldwater Institute Sues Phoenix to Block Discounted Downtown Land Sale - AZ Free News (June 2026) The Goldwater Institute filed suit against the City of Phoenix in Maricopa County Superior Court to stop the sale of a city-owned parcel at 1016 N. 2nd Street, just north of Roosevelt Row, to developer Pennrose, LLC. The complaint argues that selling land appraised at about $4.8 million for roughly $1.5 million violates the Gift Clause of the Arizona Constitution, which requires governments to receive a direct and proportionate return on public assets. Pennrose's proposal pairs about 60 affordable housing units with a Bezos Academy early childhood education program as the offered public benefit. The outcome could reshape how Phoenix municipalities use discounted public land to underwrite affordable and workforce housing.

• Proposed sale price: about $1.5 million (~$86/SF), against a 2023 appraised value of roughly $4.8 million (~$274/SF, an approximate $3.3 million discount)

• Site: city-owned downtown parcel at 1016 N. 2nd Street

Source: AZ Free News

Multifamily

Longbow Luxury Apartments in Mesa Trades for $95.3 Million - AZ Big Media (June 3, 2026) The 339-unit Longbow Luxury Apartments at 2950 N. Recker Rd. sold in one of May's five biggest deals, commanding a premium for its position adjacent to the Longbow Golf Club and within Mesa's Falcon Field aerospace and advanced-manufacturing employment corridor.

• Sale price: $95,250,000 for 339 units (about $280,973 per unit)

• Seller: DR Horton; buyer: Millburn and Company

Source: AZ Big Media

IKONIC Scottsdale Secures $141 Million Construction Loan for 245-Unit Tower - GlobeNewswire (June 3, 2026) Developer The Hampton Group closed a $141 million construction financing package for IKONIC Scottsdale, a 14-story ultra-luxury rental tower at 16640 N. Scottsdale Rd. near The Promenade and Kierland Commons. The financing, anchored by a senior mortgage and a mezzanine tranche, signals continued lender conviction in the North Scottsdale high-net-worth renter base. Completion is targeted for 2028.

• Financing: $141,000,000 for 245 units (about $575,510 per unit)

• Residences average roughly 1,062 SF across one-, two-, and three-bedroom plans

Source: GlobeNewswire

Colliers Q1 Report: Phoenix Multifamily Enters a 'Rebalancing' Phase - AZBEX (June 2, 2026) Colliers' Q1 2026 United States Multifamily report describes a market shifting from recalibration to rebalancing, with Phoenix absorbing its heavy delivery pipeline better than many bearish models predicted. Easing supply, slowing construction starts, and persistent for-sale affordability gaps continue to support renter demand.

• Phoenix inventory: 461,783 units; occupancy 94.4 percent (up 0.4 points year over year)

• Average effective rent: $1,479 per month (down 4.8 percent year over year)

Source: AZBEX

Industrial

Machine Investment Group Joint Venture Buys The Hub @ 202 for $135 Million - AZ Big Media (June 2, 2026) A joint venture led by Machine Investment Group, with Miramar Capital and Axonic Capital, acquired The Hub @ 202, a 10-building, 1.27 million SF industrial park in Mesa's Southeast Valley, from Affinius Capital. The group plans to invest further to build out move-in-ready suites, capturing demand driven by nearby projects including TSMC's expansion and LG Energy Solution's $5.5 billion Queen Creek battery complex.

• Sale price: $135,000,000 for 1,271,390 SF (about $106 per SF)

• Ten buildings ranging from roughly 65,000 to 270,000 SF

Source: AZ Big Media

US Merchants Pays $63.9 Million for West Summit at Surprise Warehouse - AZ Big Media (June 3, 2026) Consumer-goods manufacturer US Merchants purchased Building One at West Summit at Surprise (13401 W. Sweetwater Ave.) for its second Metro Phoenix location. The fully air-conditioned, 36-foot-clear facility sits along the BNSF Railroad with rail-spur potential and a Foreign Trade Zone designation, features that command a premium over standard dry warehouse product.

• Sale price: $63,887,560 for 453,960 SF (about $140.73 per SF)

• Seller and developer: Mohr Capital

Source: AZ Big Media

Belkorp Acquires Phoenix Industrial Building Near Sky Harbor for $44.2 Million - AZ Big Media (June 3, 2026) Belkorp purchased a 129,528 SF industrial property at 3809 E. Watkins St., within the Sky Harbor International Airport logistics corridor, in another of May's five largest deals. The trade underscores continued liquidity for core infill industrial assets despite elevated borrowing costs.

• Sale price: $44,150,000 for 129,528 SF (about $340.85 per SF)

• Seller: Oxford Properties Group

Source: AZ Big Media

Retail

SimonCRE Buys 10 Acres in Surprise for Whole Foods-Anchored Prasada East - REBusinessOnline (June 1, 2026) Developer SimonCRE acquired roughly 10 acres in Surprise to build Prasada East, a 98,000 SF open-air center complementing the adjacent Village at Prasada and Prasada North. The defensive, necessity-driven tenant mix is anchored by a 35,100 SF Whole Foods Market, with additional confirmed tenants including Barnes and Noble, Paddy O' Furniture, Flower Child, and Hammer and Nails. Groundbreaking is planned for this spring.

• Land price: $3,783,200 for about 10 acres (roughly $378,320 per acre, about $8.69 per land SF)

• Center size: 98,000 SF; grocery anchor 35,100 SF

Source: REBusinessOnline

STK Steakhouse Opens 500-Seat Downtown Phoenix Location - Business Wire (June 3, 2026) The ONE Group Hospitality opened STK Steakhouse at 201 E. Washington St., Suite 114, steps from downtown's sports and entertainment corridor. The high-energy "vibe dining" concept, with a central bar, private dining spaces, and indoor-outdoor design, illustrates the continued strength of experiential retail in the increasingly dense urban core.

• Capacity: up to 500 guests

• Located adjacent to the downtown arena and convention district

Source: Business Wire

Office

University of Phoenix Riverpoint Campus Sells for $103 Million - AZ Big Media (June 3, 2026) A 628,192 SF, multi-building Class A office campus on S. Riverpoint Pkwy., leased to the University of Phoenix and located adjacent to Interstate 10, sold to LXP Industrial Trust. Ranking as the largest Phoenix office sale by price since 2022, the deal pairs in-place income with long-term redevelopment optionality on the 37-acre infill site, a textbook covered-land play.

• Sale price: $103,000,000 for 628,192 SF (about $163.96 per SF)

• Site: approximately 37 acres adjacent to I-10

Source: AZ Big Media

SkySong Signs More Than 28,000 SF in New Leases and Expansions - AZ Big Media (May 29, 2026) SkySong, the ASU Scottsdale Innovation Center, posted another wave of leasing across its office buildings as it marks its 20th anniversary, reinforcing the flight to quality in amenitized, university-affiliated environments. Colliers represented NexGen Financial in its 5,351 SF lease of a new speculative suite in SkySong 2.

• More than 28,000 SF across new leases and extensions

• Tenants include Flare (13,487 SF extension), NexGen Financial (5,351 SF), and New American Funding (4,699 SF)

Source: AZ Big Media

Fairmount Place Midtown Office Building Sells for $11.5 Million - Connect CRE (June 1, 2026) Albuquerque SNF LLC acquired Fairmount Place, an 87,030 SF, four-story multi-tenant garden office building at 4001 N. 3rd St. in Midtown Phoenix, from First & Center LLC. The seller had built out nearly all of the building's 31 suites as move-in-ready spec suites in batches following its 2019 acquisition, a strategy credited with driving rapid lease-up and keeping occupancy in the 90 to 100 percent range. The asset was about 92 percent leased at closing.

• Sale price: $11,500,000 for 87,030 SF (about $132 per SF)

• 31 suites, four stories; small-tenant focus

Source: Connect CRE

George Oliver's Bond Hits 98 Percent Committed on the Camelback Corridor - AZ Big Media (June 1, 2026) Developer George Oliver's experiential office redevelopment Bond, at 3200 E. Camelback Rd., reached 98 percent committed after more than 137,000 SF of new leasing, underscoring the flight to quality in amenitized Class A office. The largest commitments came from Banner Health, which expanded its headquarters lease by 12,000 SF to a total 80,000 SF (relocating from Phoenix Plaza in Midtown), and RSM US LLP, taking roughly 25,000 SF (relocating from within the Camelback Corridor). The activity also included more than 33,000 SF of additional mid-sized leases, exhausting the project's latest round of spec suites.

• More than 137,000 SF of new leasing, bringing the project to 98 percent committed

• Anchors: Banner Health (80,000 SF total) and RSM US LLP (about 25,000 SF)

Source: AZ Big Media

Mixed-Use

Diversified Partners Closes on McCormick Ranch Site for The Lakefront at Scottsdale - AZ Big Media (June 3, 2026) Diversified Partners closed on a roughly 100,000 SF waterfront property just east of Scottsdale Road off McCormick Parkway, originally developed in 1978, to create The Lakefront at Scottsdale. The two-phase redevelopment will deliver signature restaurants, boutique and experiential retail, wellness tenants, and Class A office around an activated waterfront. Construction is expected to begin in the third quarter of 2026.

• Property size: approximately 100,000 SF (reported at about $25.5 million, roughly $255 per SF)

• Phase two anticipated to begin in early 2027

Source: AZ Big Media

Hotels

No Phoenix Metro hotel or resort transaction meeting this brief's reporting threshold closed during the week. The marquee hospitality project on the radar remains the downtown Atari Hotel, a 91-room, gaming-themed concept from developer Intersection Development at 840 N. Central Ave., which continues to advance toward a 2026 construction start.

• Projected cost: about $124 million for 91 rooms (roughly $1.36 million per room, a figure inflated by the integrated 60,000 SF immersive entertainment, esports, and event complex)

Source: AZ Big Media

Connect With Us

We connect with landowners and developers across the Phoenix Metro every day. Whether you are recalibrating land basis in the far West Valley or Pinal County, weighing a covered-land or office-to-industrial redevelopment play, underwriting a stabilized industrial or multifamily acquisition, or working through entitlement, power, and water friction on a mixed-use site, we are available for confidential conversations about how the activity in this brief may affect your business and your pipeline. Reach out to start the conversation.