Good Morning!

Chicago sees a sizeable chunk of industrial delivered in Q4, the NAR president resigns, and Boston office ends the year with 22% vacancy. Markets rally on Monday, Boeing drama continues with loose parts on jets, European unemployment falls slightly with Spain at nearly 12% (is this by choice?), and a gaming company starts the year with layoffs

Due to time constraints (I fell asleep early) the Debt Survey will be released later today

If you enjoy the newsletter, then help us out by sharing with friends and colleagues. Click the referral link below to share the newsletter, hit milestones, get rewards!

Interested in advertising? Then get in touch with us

Capital Markets

Market News

• Stock Market Rallies on Monday

  Tech stocks led a rally a on Monday after trading began mixed following Boeing making headlines. The rally helped the S&P and Nasdaq make up for poor trading last week. Futures are down Tuesday morning with all three major indices down ~0.3%

• Loose Parts on Boeing Jets

  According to Federal Investigators, last week a door panel slid up before flying off an Alaska Airlines jet as a result of loose bolts. Alaska and United Airlines also independently found loose parts in their Boeing 737 Max 9 jets. The airlines have canceled hundreds of flights since the incident because of grounded planes. Alaska has 65 Max 9s, and United has 79

• Eurozone Unemployment Falls to 6.4%

  The seasonally-adjusted jobless rate in the Eurozone hit 6.4% in November, unemployment fell by 99,000 month-over-month to 10.97M. Meanwhile, the youth unemployment rate, those under 25 seeking employment, fell to 14.5% from 14.8%. Spain reported the highest jobless rate at 11.9%

• Unity Software to Lay Off 25% of Staff

  Unity Software, a gaming technology company, said Monday that it’s cutting 1,800 jobs. The company had previously held a round of layoffs in May 2023 that affected 600 employees

CRE Headlines

• National Association of Realtors President Resigns Citing Blackmail Threat

  President Tracy Kasper notified NAR’s leadership team “that she recently received a threat to disclose a past personal, non-financial matter unless she compromised her position at NAR.” Kasper’s predecessor as president, resigned last summer after The New York Times published a story detailing claims he sexually harassed women he worked with

• Boston CBD Office Market Ends 2023 With 22% Vacancy

  Q4 leasing activity was down to roughly 700K sf, down 500K sf from the prior quarter. Sublease space continues to grow with 4.2M sf available, up 20% YoY. A bright spot is that the growth rate of sublease space has slowed down. Asking rents declined by 3.5% YoY driven by sublease availability

  

  Source: Savills

• Chicago Sees 12.4M Sq. Ft. of Industrial Delivered In Q4

  The Chicago industrial market saw 32 new buildings, consisting of 12.4M sf, delivered in Q4 2023, the third highest amount ever recorded in the market. 26 of the developments accounted for 91% of the space and were delivered on a speculative basis

Deals Deals Deals

Sales

• Industrial: Denholtz Properties acquires an 18-building, 724K sf industrial portfolio in Pennsylvania’s Lehigh Valley from PennCap Properties

• Multifamily: Buccaneer Redevelopment LLC acquires a 342-unit multifamily community in Corpus Christi, TX from Fuso Investment Inc.

• Industrial: TA Realty acquires a 108K sf warehouse in Miami, FL for $26M from GLP Capital Partners

• Office: The Las Vegas Valley Water District acquires Meadowview Corporate Center, a 166K sf office building in Las Vegas, NV for $21M from J.A. Tiberti Construction

• Multifamily: reVerb Century Station, a 52-unit mixed-use multifamily asset in Chicago, IL, sells for $10.4M

• Multifamily: Holly House Apartments, a 57-unit apartment complex in Miami, Florida, sells for $9.8M

Debt

• Multifamily: A JV between MAG Partners and Safanad, secure construction financing from Bank OZK and additional financing led by MetLife Investment Management for 188-unit mixed-use building development in New York, NY’s Chelsea neighborhood. The $151M capitalization was sourced by JLL

• Multifamily: Zale Properties secures a four-year, fixed-rate loan through Principal Asset Management to develop a 396-unit mixed-use development in Dallas, TX

• Hospitality: A JV between Newbond Holdings and Apollo Global Management secures a $100M loan from Monarch Alternative Capital to refinance 309-key Westin Tampa Waterside hotel in Tampa, FL

• Multifamily: The Wisconsin Housing Preservation Corp. secures a $13 million construction loan and a $41.6 million tax-exempt bond loan from Associated Bank and Johnson Financial Group for the development of Rise Madison, a two-building, 187-unit income-restricted development in Madison , WI

• Retail: Kitson & Partners secures a $17M loan through a regional bank for the refinancing of Galt Ocean Marketplace, a 106K sf, Winn-Dixie-anchored shopping center in Fort Lauderdale, FL

Developments

• Multifamily: The Altman Cos. delivers 318-unit multifamily community outside Fort Lauderdale, FL

• Multifamily: Northland Living plans to develop a 35-story, 286-unit multifamily tower in downtown Austin, TX

• Student Housing: Mississippi State University announced plans to develop an $80M, 400-bed student housing asset in Starkville, MS. Construction is expected to start next month and completion is scheduled for spring 2025

Distress

• Office: The $111M nonperforming senior loan tied to Meringoff Properties’ 462 Broadway in New York, NY hits the market after the owner defaulted on the loan

Leasing

• Office: DoorDash signs a 115K sf lease at BXP and JPMorgan’s 200 Fifth Ave. office in New York, NY

• Office: Flagstar Bank leases 55k sf at Mutual of America Financial Group and Munich Re’s 320 Park Ave in New York, NY

Meme Summary

Interested in advertising? Then get in touch with us