Good Morning!

Office leasing activity is up (if you’re a well capitalized REIT), industrial vacancy rose in 2024, the U.S. trade deficit rose again, and a federal funding freeze directive momentarily sent various agencies into chaos

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Capital Markets

Headlines

• BXP Closes On Over 5.6MM SF of Office Leases In 2024

  BXP’s total leasing activity in 2024 included 291 leases for a WALT of 9.8 years and 5.6m SF. Q4 made up 2.3mm SF and had a WALT of 10.3 years

• ExchangeRight Reports an Increase to Essential Income REIT’s NAV

  Yesterday Essential Income REIT reported its Net Asset Value per share increased to $27.37/share in Q4 2024. The REIT boasts 362 net-leased properties and has had four consecutive quarters of NAV growth

• Rental Assistance Exempt From Federal Aid Freeze

  U.S. District Judge Loren AliKhan stepped in to block a directive issued on Monday which said all federal grants, loans and assistance would be subject to an “across-the-board” funding freeze while the administration reviewed the programs to ensure that they were “consistent with the president’s policies and requirements.” The directive presented “the specter of irreparable harm” and the judge suspended its enforcement until February 3rd. The Department of Housing and Urban Development released a statement on Tuesday saying it had confirmed the funding freeze would not impact rental assistance programs even if it went through

• US Trade Deficit Widens

  The Commerce Department's Census Bureau reported the goods trade gap increased 18.0% to $122.1bn in December. Goods imports rose $10.8bn to $289.6bn, while exports fell $7.8bn to $167.5bn

• US Industrial Vacancy Climbing In Costal Markets

  U.S. national industrial vacancy rate increased by 126 basis points to 6.8% in 2024. Costal markets reported the highest increases in vacancy year-over-year

  YoY Change in Industrial Vacancy By Market

  

  Source: Colliers Research

Deals Deals Deals

Sales

• Retail: Acadia Realty Trust acquires the remaining stake in The Georgetown Renaissance Portfolio, a 318K SF, 22-building retail and residential portfolio in D.C., from Jamestown at an undisclosed price

• Industrial: Nuveen Real Estate purchased a 498K SF infill industrial portfolio in Reno, NV from an undisclosed seller. The asset was fully leased at sale

• Office: Galium Capital purchased Lockton Place, a 187K SF office building in Houston, TX, from Triten Real Estate Partners and Affinius Capital. The asset was 96% leased at sale

• Multifamily: JRK Property Holdings sold Courtney Park, a garden-style 248-unit multifamily property in Fort Collins, CO to ColRich Multifamily for $64mm

• Industrial: BKM Capital Partners acquired West Belt Business Park, a five-building, 261K SF multi-tenant industrial asset in Houston, TX with a sub 3-year WALT

• Retail: Centro Property Management LLC acquires a 336K SF shopping center in Altamonte, FL from Sagard Real Estate for $29mm. The asset was 55% occupied

Debt

• Industrial: Overton Moore Properties and Invesco Real Estate secured $68mm in construction financing from AEW Capital Management to build a 689K SF, three-building industrial park in Tempe, AZ 

• Multifamily: The Related Group and 13th Floor Investments secure a $58mm loan to purchase Arium Lincoln Pointe, a 285-unit multifamily property in Aventura, FL from RMR 

• Multifamily: Melo Group secured a $30mm fixed-rate loan from Ocean Bank to refinance The 25 Mirage, a multifamily property in Miami, FL

• Multifamily: Lincoln Avenue Communities secured $19mm in LIHTC and a $26mm Fannie Mae loan for a 188-unit multifamily community in Scranton, PA.

Developments

• Retail: NewQuest breaks ground on the retail portion of Texas Heritage Marketplace, a planned $400mm mixed-use development in Katy, TX. The shopping center portion is expected to span 750K SF

• Industrial: Bridge Logistics Properties acquired a 5.6-acre site in Los Angeles, CA with an existing 122K SF building that will be marketed for lease while they pursue entitlements for a 127K SF distribution building

Distress

• Retail: 130 Bowery, a 33K SF Manhattan landmark, is up for auction after a sale fell through. The Bowering Savings Bank is expected to fetch over $50mm

Capital Raising

• Data Centers: Harrison Street raised roughly $600mm across its HS Digital Fund and associated vehicles

Leasing

• Office: Amazon signs a 50K SF lease at L&L Holding Co. and Oak Row Equities’ Wynwood Plaza, a 1m SF mixed-use development in Miami, FL

Meme Summary

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