Happy Friday!

Data centers are hot right now, unemployment reaches a 3-month high, new home sales fall by more than expected in January, and lifestyle hotels are trending in the hospitality space

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Capital Markets

Headlines

• Unemployment Filings Rise To Highest In 3 Months

  The number of Americans filing for jobless benefits rose by 22,000 to 242,000 for the week ending Feb. 22 according to the Labor Department. Analysts had projected that 220,000 new applications would be filed. The impact of government layoffs is expected to be seen reflected in the coming weeks

• New Home Sales Drop 10.5% In January, Fall By More Than Expected

  Despite new housing inventory being at its highest since late 2007, new home sales dropped in January. The extreme cold temperatures, along with high interest rates, likely influenced the drop in sales

• Lifestyle Hotels Make Up 18% Of New Hotel Openings Globally

  While traditional hotels generate 90% of their revenue from guestrooms, lifestyle hotels generate ~60% from guestrooms, with the rest being generated through F&B, spa, retail, and entertainment services. Lifestyle hotels’ rise comes from the various experiences they offer that cater to non-travelers. JLL’s recent outlook report for hospitality predicts additional M&A activity will lead to consolidation in the space

• Redfin Reports 1 In 7 Pending Home Sales Are Getting Canceled

  According to Redfin, Atlanta, Las Vegas, Houston, and areas in Florida are seeing the highest share of deals falling through on record, with supply piling up. In January 14.3% of home-purchase agreements fell through, the highest since 2017. Los Angeles is among the metro areas with the biggest increase in canceled sales, due largely to January’s wildfires.

• U.S. Data Center Supply Grew By 34% In 2024

  A report by CBRE shows data center supply in primary markets increased by 34% YoY to 6,922.6 MW, beating the 26% increase in 2023. Primary markets had a record 6,350 MW under construction at the end of 2024, over double the 3,077.8 MW at year-end 2023. Virginia and Atlanta had the highest amount under construction at the end of 2024

Deals Deals Deals

Sales

• Multifamily: AvalonBay Communities under contract to acquire two Texas portfolios from BSR REIT. The Austin, TX portfolio consists of two multifamily communities totaling 857 units and is under contract for $187mm with a March closing expected. The Dallas, TX portfolio consists of six multifamily assets totaling 1,844 units and is under contract for $432mm

• Industrial: SL Industrial Partners acquired a 294K SF industrial asset in Greensboro, NC for $30mm from Tectonic

• Office: G Wealth Management acquired The Wynwood Sky’s office component, a 44K SF office on the top two floors of the mixed-use building in Miami, FL’s Wynwood neighborhood. Doug Levine, founder of Crunch Fitness, sold the office condos for $24mm

• Student Housing: Tailwind Group acquired Commons on Kinnear, a 166-unit, 534-bed student housing community in Columbus, OH for $22mm from the Arizona State Retirement System. The deal was financed with a $21mmloan from America National Bank

• Office (Listing): KPG Funds is marketing its newly completed Le Gallerie. a seven-story 62K SF boutique office building in New York’s Greenwich Village

Debt

• Data Centers: Meta in talks to secure a $35bn financing package to develop a $200bn data center campus. The investor group is being led by Apollo, with KKR in the mix as well

• Multifamily: Adam Tancredi secured a $116mm loan for the development of 214 build-for-rent homes across 17 acres in Paso Robles, CA

• Multifamily: Metropolitan Realty Group secures a $90mm Fannie Mae loan to refinance Cromwell Towers Apartments, a 317-unit affordable community in Yonkers, NY. The non-recourse, fixed-rate loan carries a five-year term with two-year, interest-only payments and a 35-year amortization period

• Multifamily: The owners of Belmont at Park Ridge Apartments in Alpharetta, GA secured a $26mm, 15-year, fixed rate, interest-only loan from a life company to refinance the 344-unit multifamily community

• Multifamily: PH Development LLC secured a $16mm, two-year, bridge loan through AGP Capital for a 120-unit hotel-to-multifamily conversion in Gresham, OR

Developments

• Hospitality: Kalahari Development has been given tentative approval to build a $1bn waterpark in Allen, TX that will include 900 hotel rooms, an indoor and outdoor waterpark, a convention center, and a family entertainment center. The city would lease 108 acres to the developer under a 20-year lease in exchange for the town’s convention center

• Multifamily: Flournoy Development Group broke ground on District South, a luxury mixed-use community with 365 apartments, 90 for-rent townhomes, six carriage homes and retail space in Greenville, SC

• Senior Housing: Bushrod Investments and Birchwood Capital Partners have acquired a 31-acre site in Hunt Valley, MD for the development of 52 villa-style homes and a 158K SF assisted living component

Capital Raising

• Multifamily: Primestor Development raises $215mm for Urban Vision Fund I to invest in multifamily near transit hubs ahead of 2028 Olympics

Meme Summary

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