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Real Estate & Construction News Roundup (8/19/26) – Single-Family Housing Investors Worry, Confidence in Multifamily REITs and Construction Backlog Falls

September 08, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, U.S. Chamber of Commerce creates Housing Advisory Council, a legal battle develops over new federal rules related to mortgage escrow accounts, hospitality dealmakers pursue ‘bigger, higher-conviction’ M&A, and more!

• In the wake of the 21st Century ROAD to Housing Act becoming law, the U.S. Chamber of Commerce has created a Housing Advisory Council with the goal of advancing market-driven policies that help increase housing supply and promote affordability. (Julie Strupp, Multifamily Dive)
• Investors in the single-family housing market are increasingly concerned about interest rates, rising insurance and home costs, and the ongoing war with Iran. (Diana Olick, CNBC)
• A legal battle is brewing over new federal rules related to accounts that hold money to pay homeowners’ property taxes and insurance payments. (Sarah Agostino, CNBC)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Balancing the Right to Repair With Evidence Preservation in Construction Defect Litigation

April 20, 2026 — Benton Wheatley & Anna Spicer - Construction Executive
Every major construction project comes with risk, whether it’s a warehouse build, a multifamily development or a major renovation. Parties tend to be aligned when things are proceeding as planned. But when something goes wrong—cracked concrete, water intrusion, systems that don’t perform as expected—those interests can quickly diverge. Property owners are often caught in the middle when construction defects surface. They’re expected to act quickly to limit damage and costs. But they also have legal obligations to preserve evidence and allow potentially responsible parties, such as contractors or designers, to observe testing, demolition and repairs. Additionally, owners often have duties to lenders and investors to fix problems promptly and pursue claims against those responsible. Meanwhile, contractors and other parties have obligations of their own—not to interfere with repairs and not to delay mitigation efforts while investigations are underway. What follows will examine how those competing responsibilities play out in construction defect disputes. Reprinted courtesy of Benton Wheatley & Anna Spicer, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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The Construction Defect Litigation Podcast: Navigating Multi-Party Construction Defect Litigation

September 08, 2026 — Ivette Kincaid & Thomas McCarrick - Kahana Feld
Kahana Feld Construction Defect Practice Group Chair Ivette Kincaid and attorney Thomas McCarrick recently joined the Construction Defect Litigation podcast to discuss the challenges—and strategies—behind complex construction defect matters involving multiple stakeholders. Drawing on their experience, Ivette and Thomas explore practical approaches to:

• Identifying key parties and understanding how claims and crossclaims develop
• Working with experts to evaluate defects, causation and damages
• Managing procedural challenges, including scheduling, document management and depositions
• Applying thoughtful case management strategies to position complex matters for successful resolution

Reprinted courtesy of Ivette Kincaid, Kahana Feld and Thomas McCarrick, Kahana Feld Ms. Kincaid may be contacted at ikincaid@kahanafeld.com Mr. McCarrick may be contacted at tmccarrick@kahanafeld.com Read the full story...

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Arizona Court Enters $323 Million Judgment Against ZOM Living Following Unanimous Jury Verdict

May 26, 2026 — Gray Development Group
PHOENIX, May 19, 2026 /PRNewswire/ -- A Maricopa County court has entered a $323 million compensatory damages judgment in favor of Gray Development Group against ZOM Holding Inc., doing business as ZOM Living, following a 12-day trial, a unanimous jury verdict and post-trial proceedings related to a proposed business transaction. The jury found ZOM liable on claims of breach of contract and breach of the implied covenant of good faith and fair dealing stemming from a proposed joint venture tied to a planned pipeline of luxury multifamily and commercial projects in Phoenix and Scottsdale. The lawsuit centered on a 13-project, $1.4 billion development pipeline originated and planned by Gray Development Group over more than a decade. In 2019, Gray invited Florida-based ZOM to participate in a joint venture involving the completion of five projects, which would have marked ZOM's entry into the Arizona market. According to court findings presented at trial, the companies entered into a mutual confidentiality and non-circumvention agreement before Gray shared extensive sensitive and proprietary information related to the projects, including planning, market analysis, costs, financial data, local business relationships and operational strategies developed by Gray over decades in Arizona. Evidence presented during trial showed that over a 10-month period while under contract, ZOM made hundreds of requests for confidential project and market information before circumventing Gray and pursuing the projects independently, ultimately displacing Gray from projects it spent years planning and developing. ZOM Living, headquartered in Orlando, develops multifamily and senior housing communities across the United States and operates regional offices in Boston, Dallas, Fort Lauderdale, Nashville, Phoenix, and Raleigh. ZOM is owned by Timeless Investments, the Amsterdam-based family office of Dutch businessman Hans van Veggel, which acquired the company in 1997. About Gray Development Group Gray Development Group was founded by architect Bruce Gray in 1991. The Phoenix-based company was the top-ranked multifamily developer in Arizona for more than a decade. The company designed and developed more than 15,000 apartment and condominium units throughout metropolitan Phoenix. Two Gray-designed developments — a Tempe midrise and a San Diego high-rise — received National Apartment Community of the Year awards.

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How AI Turns Construction Documents Into Procurement Intelligence

May 05, 2026 — Aarni Heiskanen - AEC Business
MEP equipment accounts for up to 40% of costs on data center or hospital projects, has lead times ranging from 20 weeks to over a year, and has historically been the most underserved area in construction software. In this episode, I speak with Victor Muchiri from BuildVision about what it actually takes to make AI useful in construction procurement, not as a pilot, but in production. We dig into why you cannot simply upload a set of construction drawings to ChatGPT and trust the output. Construction documents are complex, cross-referenced, and consequential. Without deep domain context, such as manufacturer ontologies, equipment taxonomies, and engineering expertise, AI produces plausible results, not reliable ones. BuildVision’s approach is to act as a harness around AI models, wrapping them in construction-specific knowledge so the output can be trusted for real procurement decisions. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Vacant Building Negates Coverage for Broken Pipe

September 01, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The Michigan Court of Appeals found the insured was not covered for water damage because the commercial space was left vacant. Cherry Hill Recreation Center, Inc. v. Conifer Ins Co., 2026 Mich, App. LEXIS 5099 (Mich Ct. App. June 18, 2026). Alan Abbas purchased a bowling alley. Due to the onset of the COVID-19 pandemic and executive orders issued by the governor, Abbas was unable to operate the bowling center for several months. During the winter, Abbas allowed the thermostat to drop significantly, with the building expected to be around 43 degrees Fahrenheit. He later admitted the sprinkler system’s pipes were not protected against freezing. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Federal Court Strikes Down New York’s Climate Superfund Act: What It Means for the “Polluter Pays” Movement

September 28, 2026 — Amanda G. Halter, Ashleigh K. Myers & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law Blog
A federal judge in the Northern District of New York has struck down New York’s Climate Change Superfund Act, ruling that the “polluter pays” climate law is preempted by federal law and “simply beyond the limits of state law.” The court concluded that the Clean Air Act (CAA) does not authorize New York’s compensation scheme, which calculates liability based on greenhouse gas (GHG) emissions attributable to worldwide fossil fuel extraction and refining. It separately held that any cost-recovery demand against a foreign producer would be preempted under the constitutional foreign affairs doctrine, which limits state intrusion into matters committed predominantly to the federal government. The court directed the parties to file a status report by September 14, leaving the form of further relief unresolved. In practical terms, the court has decided that the Act is preempted and cannot be enforced but has not yet determined the precise terms of its final order, including whether to formally enjoin its enforcement. The decision in West Virginia v. James, Case No. 1:25-cv-00168 (N.D.N.Y. Aug. 31, 2026), issued by Chief U.S. District Judge Brenda K. Sannes, who was appointed by President Obama, marks the first judicial invalidation of a state climate superfund statute and carries significant implications for the climate superfund landscape and the three remaining lawsuits challenging these laws. Reprinted courtesy of Amanda G. Halter, Pillsbury, Ashleigh K. Myers, Pillsbury and Jillian Marullo, Pillsbury Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com Read the full story...

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Best Lawyers Recognizes 33 White and Williams LLP Lawyers

August 24, 2026 — White and Williams LLP
White and Williams LLP is pleased to congratulate our attorneys recognized among the 2027 Best Lawyers in America® rankings. Best Lawyers® has recognized Michael W. Horner, Chair of the Healthcare Group and Managing Partner of the Cherry Hill, NJ Office, as a 2027 "Lawyer of the Year” in the area of Litigation - Insurance for Cherry Hill. Michael Horner’s has extensive experience litigating, mediating and arbitrating complex catastrophic cases throughout multiple jurisdictions in the Northeast, with litigation and counseling experience that spans several decades in the areas of healthcare, catastrophic loss and employment matters in multiple state and federal jurisdictions. Read the full story...
Reprinted courtesy of White and Williams LLP

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