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March 4, 2024

21-Year Legal Battle Winds Down With 17,000-Unit Portfolio Broken Up, $2.5B In Damages Awarded

A two-decade legal battle between five brothers has resulted in a jury finding that Haresh Jogani should portion out ownership stakes in a roughly 17,000-apartment portfolio and pay his brothers Shashikant, Rajesh, Chetan and Shailesh Jogani more than $2.5B in damages. 

21-Year Legal Battle Winds Down With 17,000-Unit Portfolio Broken Up, $2.5B In Damages Awarded

The five-month trial and 21-year legal saga concerning allegations that Haresh breached an agreement with the other brothers isn't over, Bloomberg reported. A punitive damages hearing scheduled for Monday will add to the award, though the amount to be added will be decided during the hearing. "The jury gave us everything our client asked for," Steven…

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San Diego County Case Could Throw Wrench In Using CEQA To Stop Development

San Diego County Case Could Throw Wrench In Using CEQA To Stop Development

Earlier this month, a state appellate court issued a ruling that could make it much more difficult to use the California Environmental Quality Act to stop projects that meet local zoning rules, CalMatters reported.For years, the commercial real estate industry has said that the law, which was created to mitigate…

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Blackstone Liability To University Of California Reaches $560M

Blackstone Liability To University Of California Reaches $560M  

After writing down the values of some properties in its investment portfolio, Blackstone's returns on its Blackstone Real Estate Income Trust, or BREIT, have fallen below the threshold it promised the University of California

Blackstone owes UC Investment, the university system's investment arm,  double what it did last quarter, according to the Financial Times.  BREIT recorded a 0.5% loss in 2023, "its first annual loss since its launch in 2017," and well behind its promised returns for the university system, FT reported. Blackstone’s liability to…

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Weekend Interview: DC Blox CEO Jeff Uphues On AI And the Next Data Center Boomtowns

Weekend Interview: DC Blox CEO Jeff Uphues On AI And the Next Data Center Boomtowns  

This series goes deep with some of the most compelling figures in commercial real estate: the deal-makers, the game-changers, the city-shapers and the larger-than-life personalities who keep CRE interesting.

As a boy in the town of Jefferson, Iowa, the first job Jeff Uphues ever had was with a local electrician, digging trenches for power lines.

In a sense, digging trenches for cabling is what Uphues has been doing ever since across a 35-year career in communications infrastructure that, since 2017, has seen him at the helm of Atlanta-based data center developer DC Blox.

Since its founding eight years ago, DC Blox has focused primarily on building colocation data centers in small markets across the Southeast in places like Birmingham and Huntsville in Alabama and Chattanooga, Tennessee. The firm also has a significant footprint in the optical fiber business, building and operating networks to send data from smaller Southern markets into Atlanta, as well as developing its own subsea cable landing station in Myrtle Beach, South Carolina. 

With record leasing demand spurring an acceleration of the data center development pipeline in the coming years, the industry is expanding beyond its traditional hubs and attracting new investors. Uphues and DC Blox stand to benefit from that expansion, and the firm is making its first push into a larger market by building a pair of campuses near Atlanta. 

Uphues spoke to Bisnow about the flood of new data center development in small markets, how artificial intelligence is redrawing the data center map and what CRE professionals dipping their toes into data centers need to know before taking the plunge.

This interview has been edited for length and clarity.

Bisnow: DC Blox has a distinct model within the colocation data center space. You build and operate facilities almost exclusively in small markets in the Southeast, but a significant part of your business is focused on building out optical fiber network infrastructure. How do these two pieces fit together? 

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With Permanence Pending, ED1 Faces Familiar Affordable Housing Roadblocks

With Permanence Pending, ED1 Faces Familiar Affordable Housing Roadblocks  

In a little over a year, Mayor Karen Bass’ first executive directive, ED 1, has facilitated the approval of more than 9,000 units in 100% affordable projects around the city.

The temporary measure has expanded the pool of developers submitting fully affordable projects, engaging private developers who aren't using public funds. 

The directive dramatically cuts the time it takes to approve these projects, creating certainty and cost savings that make affordable projects attractive to develop. But as the city looks to make the directive permanent, familiar challenges and complications to building housing in the city of Los Angeles are rearing their heads. 

As of October, 119 projects containing 9,093 units had been proposed through ED 1, the Los Angeles Department of City Planning reported, a stark contrast to the roughly 4,850 units proposed during the same period the prior year. There were approximately  16,000 units proposed as of…

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