Happy Friday to all!

Slow headline day, but plenty of deals below. United Auto Workers began their strike at midnight triggering walk outs at various manufacturing plants. Crude oil prices break past $90 a barrel, possibly impacting gas prices. Companies warn recent wage hikes and rising fuel costs will impact profits in Q3. In real estate news, the higher than expected CPI triggered a drop in brokerage share prices as deal volume is expected to remain low. And a recent Newmark report shows a decline in sales volume in the multifamily space along with rising operating costs.

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Capital Markets

Market News

• United Auto Workers began strike Thursday at midnight against GM, Ford, and Stellantis across three plants in the midwest (nbc)

• US oil prices climb to over $90 a barrel for first time in 10 months threatening to push up cost of gasoline and further increase inflation (cnn)

• Companies warn higher fuel costs and employee wage hikes will impact profits in Q3 (cnbc)

• UK: mortgage delinquencies jump by 13% in Q2, to the highest level since 2016 according to Bank of England. Total value of mortgages with delinquencies at £17bn (theguardian)

• European Central Bank raised interest rates by 0.25% on Thursday to 4% and hinted it was done with rate hikes but would maintain current rates for a prolonged time period. Inflation across the 20 countries that make up the euro remains at 5.3%, well above the 2% ECB target (cnn)

CRE Headlines

• Commercial real estate brokerage stocks dropped on Wednesday after news of CPI growing faster than expected in August triggers low deal volume expectations. CBRE, JLL, and Cushman & Wakefield all dropped between 7-8% (Bisnow)

• City of Fort Worth approves special taxing districts on 5,300 acres of land in Veale Ranch. the creation of Tax Increment Financing and Public Improvement Districts would be used to fund infrastructure that could help attract industrial tenants (FortWorthReport)

• Life Sciences material lead times range from weeks to nearly two years for critical components according to Cushman & Wakefield (GlobeSt)

• Multifamily expenses increased 8.3% YoY, sales volume dropped by 72% YoY, and debt originations fell by 58% according to Newmark research (connectcre)

• Australian REIT with nearly 500 single family, 1-4 unit homes across NYC exploring a sale of its portfolio (citylimits)

Deals Deals Deals

Sales

• Office/R&D/Industrial: Blue Owl Capital executes sale-leaseback with Western Digital’s Campus in Milpitas, CA for $193mm. Western Digital signed a 580k sf lease that runs through 2039 (isp)

• Office: Penzance acquires 240k sf office building for $25mm from UBS Realty Investors in Arlington, VA. The building was reported to be 60% occupied (Bisnow)

• Industrial: CapRock Partners buys 165k sf single-tenant industrial building outside Los Angeles, CA (connectcre)

• Hotel: Highline Hospitality Partners acquires 131-key hotel under the Homewood Suites flag in Eaton, NJ (connectcre)

Debt

• Senior Housing: Grandbridge Real Estate Capital provided $427mm agency financing for a seniors housing portfolio owned by an undisclosed healthcare REIT (REBusinessOnline)

• Multifamily: Northwind Group provides Southern Land Company with a $70mm senior secured condo inventory loan collateralized by unsold for-sale residential condos. The loan will provide capital and time to sell the remaining condos at The Laurel Rittenhouse Square, a 48-story luxury residential building, in Philadelphia, PA (Yahoo)

• Industrial: CrossHarbor Capital Partners funds $38mm loan for Glenstar Properties’s first building in a $415mm industrial park. The distribution building will measure 555k sf and feature 232 dock doors (commercialsearch)

• Multifamily: Northwind Group provides $35mm loan for Carmel Towers, a 216-unit multifamily building, in Newark, NJ. The owner, Urban Reneawal LLC, plans to use the funds for renovations (Yahoo)

• Industrial: Bravera Bank provides $25mm senior loan for The Wideman Company’s acquisition of a FedEx distribution center in Bismark, ND (CommercialObserver)

Developments

• Office: JV between Carr Properties, The HYM Investment Group, and National Real Estate Advisors completes 1mm sf office project in downtown Boston, MA. The asset is fully preleased with anchor tenants State Street Corp occupying 510k sf and InterSystems Corp. a respectable 420k sf (REBusiness)

• Industrial: BBX Logistics Properties and PCCP are planning to build a 593k sf industrial park Palm Beach, FL. They will initially build a 200k sf facility and then two buildings on a later phase (Bisnow)

• Industrial: UPSIDE Foods, a meat cultivating company, to build a 187k sf production plant in Chicago Suburbs (PRNewswire)

Distress

• Office: City National Bank of Florida is suing the owners of 1 Northeast First St in Miami, FL after failing to pay back a $27mm construction loan. TC Metro Mall Investments, an affiliate of Time Century Holdings, was listed as the primary borrower (Bisnow)

• Office: Bridgeton Holdings defaults on San Francisco, CA office asset with $45mm loan outstanding. WeWork had occupied 75% of the building up until August 2021 (Bisnow)

• Office: CBRE arranges $29mm sale of 435k sf office building in Milwaukee, WI. The buyer purchased the 46.5% occupied office building from the court-appointed receiver (connectcre)

• Hotel: Two Brothers purchase Aloft-branded, 155-key hotel in suburban Chicago, IL for $17mm from a $26mm foreclosure lawsuit (TheRealDeal)

Leasing

• Office: Lacoste signs 10-year, 18k sf lease at 136 Madison Ave in New York, NY for its US HQ (CommercialObserver)

Meme Summary