Happy Monday to All!!!

Busy week ahead as the market awaits information on Consumer Confidence, New Home Sales, and GDP. Estes' $1.5bn stalking horse bid was the winning bid for Yellow Corp's portfolio of terminals. Signature Bank’s Loan sale is set to provide pricing guidance for the market. Construction for industrial remains strong and absorption for multi stays relentless. California tries to lure back insurers with legal changes to premium pricing. The writer’s guild gets closer to ending its strike while UAW’s strike intensifies. And in a surprise to few, NFTs are now mostly worthless.

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Capital Markets

Market News

• The Federal Reserve is cutting roughly 300 jobs this year. The job cuts are primarily aimed at IT and payroll related roles (Reuters)

• Some strategists see 10-year Treasury yields breaking 5% (Barron’s)

• Oil prices rose as Moscow issued a ban on exports. Brent crude oil futures climbed to $93.75 a barrel (Yahoo)

• Bill to prevent Gov. shutdowns gains traction. The bipartisan bill would require lawmakers and relevant officials to stay in D.C. until a bill is passed (Yahoo)

• United Auto Workers union expanded its strike to include all 38 distribution centers operated by GM, Jeep, and Ram. The walk-outs sparred Ford for now (AP)

• Writer’s Guild of America reaches tentative deal with entertainment companies. Guild members will vote over the next few days on whether or not to accept the deal. The deal does not include Hollywood actors, who will remain on strike and prevent shows which require actors from restarting (NYTimes)

• Consumer Confidence, New Home Sales, and GDP reports are all due this week. Consumer confidence could impact the market as a weak confidence number would potentially trigger selling (NASDAQ)

• Vast Majority of NFTs are now worthless according to DappGambl report. The weekly traded value of NFTs in July 2023 was roughly 3% of its peak in August 2021 (DappGambl)

CRE Headlines

• Signature Bank’s loan sale could be a price indicator for multifamily. private equity and publicly-traded institutions are likely to bid on the portfolio and give insight on how New York multifamily is valued (Bisnow)

• Multifamily construction was down 41% in August from a year prior (down 26% from July) while manufacturing construction starts were up 285% month-over-month in August (Bisnow)

• Estes wins bid for Yellow Corp.’s portfolio of owned terminals with a stalking horse bid of $1.525bn. The bid sets the price floor. A bid deadline is set for Nov 9, with an auction to take place on Nov 28 if needed (FreightWaves)

• Renting has become cheaper than owning for many Americans as rates stay over 7% (MarketWatch)

• Nearly 200k multifamily units were delivered in the first half of 2023, with total deliveries for 2023 expected to rise 51% year-over-year. Despite the heavy anticipated deliveries in 2023-2025, absorption is expected to outpace 2018-2022 annual averages (Newmark)

• California will now allow insurance companies to asses future climate changes when setting prices. The move is an effort to prevent insurers from fleeing the state amid fears of losses related to wildfires (AP)

Deals Deals Deals

Sales

• Office: An entity of Presson Corp. bought two office buildings from Lincoln Property Company’s LPC Desert West II for $72mm in Phoenix, AZ. The two buildings total 296k sf and feature an onsite garage (AZBigMedia)

• Student-Housing: 11 Capital sells two student housing projects with a total of 94 units and 178 beds for $36mm in Bellingham, WA (REBusinessOnline)

• Retail: SITE Centers sells 225k sf grocery-anchored center, Larkin’s Corner, in Boothwyn, PA. The property has a reported 17.4 WALT (commercialsearch)

• Retail: Regency Centers buys 87k sf grocery-anchored shopping center in Chicago, IL from Principal Life Insurance Fund for $27mm (CoStar)

Debt

• Multifamily: Mill Creek Residential secured a $83mm construction loan for a 361-unit apartment building with 24k sf of retail space in Coral Springs, FL (CommercialObserver)

• Hotel: Synergy Hospitality Management secures $44mm refi from an undisclosed debt fund for a 220-key Hampton Inn hotel near LaGuardia Airport in New York, NY (REBusinessOnline)

• Senior Housing: Poppy Bank provided a $43mm refi for an 86-unit assisted-living and memory care facility owned by Westlake Senior Living Center in Westlake Village, CA (Yahoo)

• Multifamily: Haussmann Development secures $39mm construction loan from Urban Standard Capital for 76-unit multifamily development in Brooklyn, NY (CommercialObserver)

Developments

• Healthcare: HealthPartners breaks ground on $51mm medical center in Woodbury, MN. The 55k sf center is expected to be completed in winter 2024 (REBusinessOnline)

• Multifamily: Blue Vista Capital acquires site north of New Haven, CT for a 300-unit multifamily development inside of the Stone Bridge Crossing master-planned community (REBusinessOnline)

• Multifamily: Empire Group breaks ground on 276-unit build-to-rent project outside of Austin, TX. The construction is being financed by a $63mm loan form Arbor Realty Trust (NYSE: ABR) (REBusinessOnline)

• Multifamily: The Signorelli Co. announces plans for Phase I of Austin Point, a 4,700-acre master-planned development southwest of Houston, TX. Construction on 400 homes is set to start in 2024 (REBusinessOnline)

• Multifamily: StreetLights Residential begins construction on a 20-story, 56-penthouse unit style apartment building outside of Dallas, TX (REJournals)

Distress

• Multifamily: Xin Development Group’s 92-unit condo building in New York City’s Hell’s Kitchen is headed to foreclosure auction on Oct. 11

Capital Raising

• Infrastructure: Maryland State Retirement and Pension System commits $150mm into Stonepeak Opportunities Fund and $200mm into GIP Fund V (RealAssets.IPE)

• Diversified: Meadow Partners Real Estate Fund VI secures $125mm commitment from Virginia Retirement System (RealAssets.IPE) 

• Industrial: Verdion, an investor in logistics assets across Europe, obtains €75mm in initial commitments for Verdion European Logistics Fund II, out of €400mm target (PERENews)

Leasing

• R&D: Atreca, a cancer drug company, will pay a $5mm termination fee to end its ~100k sf lease nearly 10 years early in one of Alexandria Real Estate’s buildings in San Carlos, CA (Bisnow)

• Retail: New York Department of Corrections renews 39k sf lease for training academy in Queens (an NYC neighborhood) (CommercialObserver)

Meme Summary