Good Morning!

Spicy day today. The DOJ aims to bring the hammer down on anyone involved with the RealPage allegations, private payroll growth slows down in December, medical debt will no longer come on your credit report, Meta to end fact-checking, and the D.C. office market is still abysmal

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Capital Markets

Headlines

• DOJ Accuses 6 Major Multifamily Landlords of Anticompetitive Behavior

  The RealPage investigation continues as the Department of Justice adds Greystar, Livcor, Camden Property Trust, Cushman & Wakefield, Willow Bridge Property Co., and Cortland to an amended complaint. The complaint comes from the alleged use of RealPage’s software to maintain high rental prices and keep concessions low

• Private Payroll Growth Slows Down in December

  Private payrolls rose by 122,000 in December, missing the forecast of 140,000 by economists polled by Reuters and below the 146,000 jobs added in November

• Medical Debt Banned on Credit Report

  On Tuesday the Consumer Financial Protection Bureau issued rules that ban credit agencies from including medical debts on consumers' credit reports and prohibit lenders from considering medical information in assessing borrowers

• Meta to End Fact-Checking

  Meta will eliminate 3rd-party fact-checking and replace it with “community notes” similar to those used on X (Twitter)

• DC Office Market Still Down

  The recent Collier’s market report showed vacancy remains above 20% and net absorption continues to be negative. Leasing activity has picked up with law firms taking up the majority of deals and rental rates hovering around $55/sf/year. Despite the large amount of vacant sq.ft. there are still 400K SF under construction (600 5th Street NE - Crowell & Moring)

DC Office Demand & Supply

Deals Deals Deals

Sales

• Multifamily: Palladius Capital Management acquired a portfolio of 9 multifamily assets for $579mm totaling over 2,500 units. The markets and seller were undisclosed

• Hospitality: Dynamic City Capital acquired two Marriott hotels near Disneyland in Anaheim, CA for $303mm ($647K/key)

• Hospitality: Dynamic City Capital acquired a Springhill Suites and Residence Inn in Anaheim for $207mm

• Industrial: LaSalle Investment Management acquired Tempe Commerce Park, a five-building industrial portfolio totaling 536K SF in Tempe, AZ from BKM Capital Partners

• Multifamily: OTH Capital and Pearlmark acquire a 230-unit multifamily asset in San Antonio, TX. The price was undisclosed with Prime Finance providing a $32mm acquisition loan

• Multifamily: An affiliate of Wingate Multifamily, LLC acquires a 133-unit apartment community, known as Baker Chocolate Factory, from Makor Capital, LLC in Lower Mills, MA

• Medical Office: UDLR Healthcare acquired a 114K SF medical office building in Rochester, MI from KIRCO on the Henry Ford Health Rochester Hospital campus

• Industrial: A California investor acquired a 75K SF industrial facility in North Las Vegas, NV for $17mm from a local development group

Debt

• Multifamily: Neutral secures a $133mm construction financing package to develop a 378-unit in Milwaukee, WI. Bank OZK provided the senior debt and Pearlmark the mezz financing

• Industrial: Forefront Commercial Real Estate and Ares Real Estate secure $77mm in construction financing from Affinius Capital for a 1mm SF, four-building industrial development in Fort Worth, TX

• Multifamily: Neology secured a $64mm loan from Starwood to develop a 237-unit multifamily project in Miami, FL

• Hospitality: TPI Hospitality secured $33mm in floating rate debt to refi a two Homewood Suites (125-key and 124-key) hotels in Minneapolis, MN

• Multifamily: The Calta Group secures a $30mm construction loan from Banesco to develop 10 townhomes in Coral Gables, FL

• Multifamily: Dwight Mortgage Trust provided a $28mm bridge loan to refi a multifamily asset in Tulsa, OK

Developments

• Multifamily: Developer Eric Schmitz received approval for a mixed-use development on 200 acres that will include 278 townhomes and 472K SF of retail in Flower Mound, TX

Meme Summary

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