Good Morning!

L.A. fire damage estimates continue to rise, Bank of England cut rates, Brandywine reported a net loss, AvalonBay is building, and Atlanta restuarants are struggling with slower than expected foot traffic

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Capital Markets

Headlines

• Los Angeles Fires Could Cost Up To $164BN

  A new study by UCLA estimates damages from the L.A. fires at $164bn, making it second costliest disaster after Hurricane Katrina ($200bn). The estimate includes direct property losses as well as cleanup costs and damages to infrastructure such as roads, bridges and sewer systems

• Bank of England Cut Rates to 4.50%

  The Bank of England cut rates on Thursday, due to concerns over slow growth in the British economy. The bank expects the British economy to grow by 0.75% in 2025

• AvalonBay Targeting $1.6BN In Development Starts In 2025

  On Wednesday the multifamily REIT announced Q4 earnings with Core FFO growing by 3.6% year-over-year in 2024. The company’s Q4 presentation materials also include plans to allocate $1.6bn for new development in 2025, bringing their total development pipeline to $3.5bn for the year when taking into account existing construction

• Brandywine Post Net Loss In Q4, Records 2.3MM SF of Leasing in 2024

  The Texas and East Coast focused office REIT posted a net loss for $0.25/share for Q4, however it still notched a positive FFO of $0.85/share for the quarter

• West Midtown Atlanta Restaurants Shuttering Do To Low Foot Traffic

  Restaurants in the cite high rents, low population, and tough parking leading many establishments to shutter despite the influx of new developments in the area. New office space has not increased foot traffic thanks to work from home policies and a vast majority of the space sitting vacant

Deals Deals Deals

Sales

• Hospitality: Kolter Group and BH Group seek to sell Crystal Beach Suites Miami Oceanfront Hotel for $110mm after originally planning to redevelop site

• Multifamily: Harbor Group International LLC acquires Livano Canyon Falls, a 300-unit multifamily asset in Northlake, TX, from Northlake Residence LLC

• Multifamily: Inland Real Estate Acquisition acquired Wheaton 121, a 306-unit multifamily asset in Wheaton, IL. The price and seller were undisclosed

• Multifamily: Beachwold Residential acquired The Forge at Glassworks, a 170-unit multifamily community in Aberdeen, NJ, for $57mm from Ingerman Group

Debt

• Office: Irvine Company to refinance the $1.5bn CMBS loan on the MetLife Building in New York. Bank of America and Wells Fargo will lead the securitization with an interest expected to come in at 6.25% on the interest-only, fixed-rate, 10-year loan

• Multifamily: DSF Group secured a $166mm loan 70% LTV, and 35-year amortization for Town Square at Market Center, a 678-unit multifamily community in Alexandria, VA

• Multifamily: LCOR’s Charlie, a 386-unit multifamily development in Hoboken, NJ, secured a $155mm five-year floating-rate loan through insurance accounts managed by KKR

• Multifamily: CSL Partners and Presidium Real Estate secured $65mm of acquisition financing for a 260-unit multifamily asset in Miami, FL. Newmark’s agency lending arm provided the Freddie Mac-backed loan

• Multifamily: Roers Companies secured a $43mm bridge loan from Thorofare Capital to refinance Risor of St. Louis Park, a 170-unit mid-rise multifamily property in Minneapolis, MN

Developments

• Multifamily: Legion Investment Group and Gindi Capital planning to develop a condo high-rise in New York City’s Gramercy Park

• Multifamily: Russell Square and Jackson Square Properties broke ground on a 576 unit multifamily project in Sacramento, CA’s Delta Shores. The project is expected to be completed in 2026

• Office: Cypress Equities and Lauricella Land Co. are developing a 124K SF office building at 1600 Convention Center Blvd, a development in the River District, a 39-acre $1bn mixed-used neighborhood in New Orleans, LA. Shell will fully lease the 118K SF office space

• Multifamily: The Boston Planning Department board approved the following multifamily projects totaling 577 units, 251 of which will be income-restricted:

  • Drexel Village at 175 Ruggles Street in Roxbury: 217 units

  • 250 Everett Street in Brighton: 240 units

  • 101-109 Boston Street in Dorchester: 53 units

  • 3458 Washington Street in Jamaica Plain: 34 units

  • 23-25 N. Beacon Street in Allston: 25 units

• Multifamily: PCCP and Balcara Group to develop a 196-unit single-family rental community in Wimauma, FL

• Industrial: RAF Pacifica Group delivered Escondido Logistics Center, a two-building,147K SF $60mm industrial property in Escondido, CA

Meme Summary

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