Good Morning!

Short week but packed with deals already. Newmark reported strong Q4 revenue growth, JPMorgan Asset Management is jumping into the BTR space, a BoA survey shows investors are “risk-on”, and CMBS activity is picking up

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Capital Markets

Headlines

• J.P. Morgan and Georgia Capital Launch A Build-To-Rent Company

  J.P. Morgan Asset Management in partnership with Georgia Capital, and its affiliated production homebuilding company, Paran Homes, announced the launch of Laseter Development Group ("Laseter"). This newly created, vertically integrated build-to-rent (BTR) development company will look to increase the housing supply by building single-family rentals in high-demand areas across the Southeast

• Bank Of America Survey Shows Investors Are Risk-On In 2025

  A survey by Bank of America showed fund managers’ cash levels fell to the lowest since 2010, while 34% of participants said they expect world equities to be the best-performing asset in 2025

• CMBS Issuance Headed For Record Year

  According to Kroll (formerly Duff & Phelps), CMBS issuance grew every quarter in 2024 and ended the year at roughly $115bn in raised capital, 150% ahead of 2023. In January and the first half of February of 2025 there have already been $17bn of deals that have hit the market

• Newmark Reports ~19% Increase In Revenue In 2024

  In Q4 Newmark’s capital activity increased by 20% marking the fifth consecutive quarter of double-digit growth. In Q4 the company saw capital markets, leasing, and management services all grow by at least 15%

Deals Deals Deals

Sales

• Office: Highline Real Estate Capital, Square2 Capital, and Lone Star Funds acquired 401 E. Las Olas Blvd., a 411K SF office asset in Fort Lauderdale, FL, for $220mm from DWS

• Retail: Tanger acquired Pinecrest Mall, a 640K SF open-air, grocery-anchored, mixed-use mall in Orange, OH, for $167mm from Fairmount Properties

• Office: First Mile Capital, an affiliate of Crown Acquisitions, acquired a 439K SF office asset in Morristown, NJ from Onyx Equities and PCCP. The asset was 94.5% leased at sale. The price was undisclosed.

• Multifamily: Roundhouse acquired Rafter Apartments, a 283-unit, 26-story multifamily community in Minneapolis, MN, from Mortenson, The Excelsior Group, and an institutional partner. The deal was financed with a Fannie Mae loan

• Student Housing: GMH Communities acquired The Stretch, a 170-unit, 533-bed student housing community in Lexington, KY, serving the University of Kentucky, from Campus Advantage and Tramview Capital Management

• Multifamily: Laramar Group acquire a 294-unit multifamily community in Downers Grove, IL for $72mm from FPA Multifamily. The acquisition was funded by a $47mm Freddie Mac loan from JLL Real Estate Capital

• Industrial: LBA Logistics acquired a 491K SF industrial building in Port Wentworth, GA via sale-leaseback from Lowe’s for $46mm

• Retail: PCP Binghamton Associates LLC acquired a 120K SF Fresh Market-anchored shopping center in Latham, NY for $27mm from Shaker Loudon Associates, an affiliate of Benderson Development

• Multifamily: Elevate Commercial Investment Group acquired Camden Crossings, a 144-unit multifamily community in Burleson, TX, for $23mm. The company expects the asset to stabilize at a 7.6% cap and exceed a 17% IRR

Debt

• Office: KBS refinances two loan facilities totaling $803mm. The first loan facility was extended through November 2026 for Accenture Tower, a 1.5mm SF office building in Chicago, IL, and increased commitments to $322mm with an additional $16mm available and a 1-year extension option. The second loan facility extended an existing $481mm loan through January 2027 and provided an additional $15mm in future funding

• Retail: Brookfield Properties secures a $215mm refinancing package for The Parks Mall in Arlington, TX

• Multifamily: Calta Group secured a $54mm loan from Forman Capital to develop a 251-unit multifamily community in Hollywood, FL

• Retail: 21 Alpha Group and Intelligent Design Real Estate secure a $32mm three-year, floating-rate senior loan from Forbright Bank for Crenshaw Plaza, a 147K SF grocery-anchored retail center in Los Angeles. CA

• Retail: Common Bond Development Group secured $17mm in senior financing for a Safeway-anchored retail center in Surprise, AZ

Developments

• Data Centers: Atlas Development LLC seeking approvals to develop a 6-building, 2.3mm SF data center campus outside Atlanta, GA. Target completion date is 2031

• Life Sciences: The New York City Council has approved the Science Park and Research Campus (SPARC) Kips Bay and Innovation East projects. SPARC Kip Bay is expected to generate around 15,000 jobs and add 2m SF of life sciences-related buildings

• Data Centers: Blackstone’s QTS developing a $750mm data center campus on 612 acres in Cedar Rapids, IA

• Data Centers: Amazon acquiring 400 acres in Arlington, OR to develop into data centers. The company acquired 376 acres for $10mm and is acquiring another 30 acres for $3mm

• Retail: The Ratkovich Company secures a $62mm refinance from Oceanview Life and Annuity Company for West Harbor development in Los Angeles, CA

Distress

• Office: Landrock LP and Pendulum Property Partners acquired a 329K SF office tower in Glendale, CA for $56mm from Goldman Sachs Asset Management and Cruzan. The asset last traded in 2018 for $94mm

• Office: Jamison Properties’ $32mm CMBS loan on 600 South Commonwealth, a 350K SF office asset in Los Angeles, CA, sent to special servicing

Capital Raising

• Diversified: KKR raised over $850mm for its opportunistic real estate credit fund II (ROX II) dedicated to investments in senior loans and real estate securities in the US and Western Europe

• Diversified: Fairview Partners Investment Management, LLC announced the initial close of Fairview Investment Fund VIII, LP (Fund VIII), with $75mm in anchor commitments toward its $250mm target. Fund VIII will target a diversified portfolio of senior secured private real estate loans, focusing on distressed debt and small- to mid-balance loans

• Office: Cannon Hill Capital Partners completed a $200mm recapitalization of 888 Broadway, a 220K SF office asset in New York’s Flatiron district, with the addition of Global Holdings and Williams Equities as equity partners

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