Happy Wednesday!

On Tuesday Lineage Logistics, a cold storage and logistics provider, reported it was pursuing a $30bn IPO for early to mid 2024. Amazon is seeking a new Miami office following Bezos’ relocation from Seattle. Logistics leasing activity is down in the Mid-Atlantic region following two years of above average activity. A real estate data provider and various landlords are fighting price-fixing allegations from the DOJ. Q3 GDP is revised upward, home prices hit a new high across cities for September, and mortgage rates climb but remain below 8%. And in sad news to the investing world, Charlie Munger passes away at 99.

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Merch Spotlight

Capital Markets

Market News

• Q3 GDP Data Revised up to 5.2% Annual Rate

  The annual GDP growth rate for Q3 2023 was revised from 4.9% to 5.2%. The revision shows the economy vastly accelerated from 2.1% in Q2. Consumer spending, private investment, and growth in inventories all fueled GDP growth

• Home Prices Rise in September

  U.S. home prices rose 0.7% in September up from the previous month despite higher interest rates. The small inventory of homes available for sale has continued to drive prices up 3.95 from a year prior. Home prices were at all-time highs in the following cities: Atlanta, Boston, Charlotte, Chicago, Cleveland, Detroit, Miami, New York, and Tampa

• 30-Year Mortgage Rates Rise, Remain Below 8%

  On Monday the 30-year mortgage rate average rose to 7.72%, well below last month’s high of 8.45%

  

• Billionaire Charlie Munger Passes Away

  The Vice Chairman for Berkshire Hathaway and investing guru passed away on Tuesday at 99. Munger was Warren Buffett’s right-hand man at Berkshire which he joined in 1978

CRE Headlines

• Lineage Logistics Pursuing a $30bn IPO for 2024

  Lineage Logistics, a cold storage and logistics provider, hired Goldman Sachs and Morgan Stanley as lead underwriters to help it pursue an IPO in the first half of 2024. The company has the largest cold storage portfolio with 2.5bn cubic feet globally and over 400 facilities. It also provides end-to-end logistics across its warehouses. The company has raised over $13bn, with two rounds raising over $2.4bn in 2022. Lineage drastically eclipses its only public comp, Americold (NYSE: COLD), which only has 1.5bn cubic feet of cold storage across 243 facilities and as of November 3, 2023 had a $10.8bn valuation

• Amazon Seeking Miami Office Space After Bezos Relocation

  Amazon is looking to lease 50k sf of office space in Miami, following Bezos buying Mansions near Miami Beach. Amazon has 400 corporate and tech employees in Miami operating out of serviced office space but no official office. The 50k sf lease would be well above the 20k sf average of new leases in the Miami market

• 3PL Leasing Activity Down in 2023 for the Mid-Atlantic Region

  YTD 3PL leasing activity sits a 2.9mm sf for the Mid-Atlantic, far below the ~6mm sf seen over the last two years. Shipping traffic and containers volumes have declined causing retailers to shed costs by outsourcing their logistics solutions nationwide and boosting 3PL leasing activity. However, in the Mid-Atlantic region retailers and wholesaler remain the most active leasing sector, with 3PLs falling in second

  3PL Leasing Volume And Regional Distribution

  

• RealPage and Landlords Fighting Price-Fixing Allegations from the DOJ

  RealPage and group of major REIT and multifamily property managers are defending themselves against a class-action lawsuit that alleges RealPage’s rent-setting algorithm allows landlords to collude and set rent higher than they would in a competitive market. Landlords listed as defendants include Bozzuto, Brookfield, Trammell Crow Residential, Camden Property Trust, and others

Deals Deals Deals

Sales

• Multifamily: Fourth Avenue Capital acquires an 80-unit multifamily community in Portland, OR for $15mm

Debt

• Multifamily: LCOR secures a $92mm construction loan for Parcel H, a 354-unit luxury apartment building to be built in Washington D.C. metro area

• Data Centers: Safanad secures a $54mm loan from Thorofare Capital to refinance a pair of data centers in Chicago, IL

• Multifamily: Rubik Build, Wright Equities, and The Grupe Company land a three-year, $51mm bridge loan from MF1 for their 204-unit Mossdale Landing Apartments in Lanthrop, CA near the Bay Area

• Hospitality: Ascent Hospitality secures a $50mm construction loan from Peachtree Group for a 338-key dual branded hotel in Birmingham, AL

• Senior Housing: Merchants Capital secures a $17mm LIHTC equity financing for a 187-unit senior affordable housing development in Fort Wayne, IN

Developments

• Student Housing: American Campus Communities is developing a 2,300-bed, $631mm student housing project at the University of Michigan in Ann Arbor, MI

• Multifamily: JV between Green Street Housing and TM Associates Development breaks ground on the Sligo Apartments, a 98-unit, $56mm affordable housing development, in the Washington D.C. area. The asset is being financed with $26mm of LIHTC equity sourced by Capital One and an $11mm Freddie Mac loan

• Multifamily: McShane Construction Company completes construction of Signal, a 285-unit mixed-use development in Atlanta, GA

• Multifamily: Ascendant Development Associates completes a 257-unit multifamily asset in the Ft.Worth-Dallas, TX area

Leasing

• Office/Life Sciences: Weill Cornell Medicine signs 200k sf lease at 1334 York Avenue in New York, NY. Labs in the new space are set to open in 2026

• Office: Marcum Asia, an accounting firm, signs a 10-year, 15k sf lease at The Feil Organization’s 7 Penn Plaza in New York, NY

Meme Summary

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