Good Morning!

Lots of capital raising going on, GSA is looking to sell 440 government offices, Governor Newsom is taking a page out of Jaime Dimon’s book and ordering employees back to the office, and foreclosures are starting to hit borrowers of Signature Bank’s loan portfolio that was sold off nearly 2 years ago

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Capital Markets

Headlines

• Basis Investment Group and Lion Creek Form Partnership

  Basis Investment Group announced a new partnership with Lion Creek Real Estate Capital to form BIG Lion. The newly formed strategic alliance will have Lion Creek originate commercial real estate debt and equity investments for Basis across the firm’s diversified lending and investment strategies

• GSA Potentially Selling Hundreds Of Federally-Owned Properties

  The GSA is now looking at selling hundred of underutilized properties. On Tuesday, the GSA posted a list of 440 non-core (relative to government operations) assets that could be sold. The properties total almost 80mm SF and mostly offices with a combined $8.3bn in recapitalization needs, per the GSA. The agency said it plans to retain courthouses, ports of entry and properties critical to our national defense and law enforcement. The List can be found here (page shows “coming soon” currently)

• California Governor Orders State Employees Back Into Office

  The governor signed an executive order Monday requiring state workers to return to the office four days a week by July 1. The governor’s office cited the it as a way to foster faster and more effective decision-making, ensure public resources are managed effectively

• Foreclosures Filed By Buyers Of Signature Bank’s Rent-Stabilized Portfolio

  Community Preservation Corp., Neighborhood Restore Housing Development Fund Corp. and Related Fund Management filed filed six foreclosure actions against eight buildings owned by Madison Realty Capital. Experts think this could be the first of many filings from the $5.8bn loan portfolio tied Signature Bank

Deals Deals Deals

Sales

• Senior Housing: Welltower acquires Amica Senior Lifestyles from Ontario Teachers’ Pension Plan for $4.6bn CAD (~$3.18bn USD). The portfolio includes 38 senior housing communities and 9 development parcels

• Multifamily: The Bascom Group acquired Highridge Apartments, a 257-unit multifamily community in Ranchos Palos Verdes, CA, for $127mm

• Retail: CTO Realty Growth acquired Ashley Park, a 559K SF retail center in Newnan, GA, for $80mm from Apollo Global Management

• Multifamily: SPI Advisory acquired Encore 380 Apartments, a 416-unit garden-style community Aubrey, TX from Starwood Capital Group 

• Office: Highwoods Properties Inc. to acquire Advance Auto Parts Tower, a 346K SF office tower in Raleigh, NC, from Lionstone Investments

• Senior Housing: Green Courte Partners acquired 55 Resort at Water Valley, a 120-unit active-adult community located in Windsor, CO

• Industrial: TruCore Investments acquires a 82K SF FedEx facility in Baton Rouge, LA for an undisclosed amount. The 81,589-square-foot building sits on a 10.8-acre site

Debt

• Office: A JV between Rockpoint and Brooksville Co. secured a $275mm refinancing from Apollo Global Management for 63-67 Wall Street, a two-tower, 816-unit multifamily asset in Manhattan, NY

• Multifamily: A JV between Rockefeller Group, MRP Realty, and Asana Partners secured a $140mm construction loan Bank of America for Brooklyn & Church, a 778K SF office-to-residential project Charlotte, NC. The $251mm conversion will have 460-unit at completion, which is estimated for early 2027 at the latest

• Multifamily: Prime Group secures a $65mm, two-year, floating-rate, bridge loan from MF1 to refinance The Orchard at Portofino Vineyards, a 264-unit, garden-style multifamily property located in Fort Myers, FL

• Multifamily: Article Student Living secured a $38mm, three-year, floating-rate loan from PPM America to refinance HERE Reno, a 182-unit, 636-bed student housing community in Reno, NV

• Retail: Lotis Group secures a $28mm construction loan from Amerant Bank for the retail component of The Square & Residences at Lotis Wellington, a mixed-use development in Weillington, FL

Developments

• Industrial: Ridgecut Road to break ground on I-84 Orange County Logistics Center, a 146K SF industrial project in Montgomery, NY

Capital Raising

• Multifamily: Cantor Fitzgerald and Silverstein Properties, Inc. announced the close of Cantor Silverstein Opportunity Zone Trust II, Inc. with more than $470mm of equity raised. CSOZ Trust II includes four planned multifamily and mixed-use developments, totaling 1,932 units across Tempe, AZ, Richmond, VA, Summerville, SC, and Huntsville, AL

• Diversified: New Mexico State Investment Council commits $200mm to Sculptor Capital’s Sculptor Real Estate Fund V, a closed-end fund focusing on diversified properties across Europe and the U.S. New Mexico State Investment Council also recently approved $715mm across PE investments

• Multifamily: Teachers’ Retirement System of the State of Illinois committed $200mm to Pretium Residential Credit Fund III, a core, debt and closed-end fund investing in residential mortgage loans that fall outside the traditional mortgage system

• Multifamily: Maryland State Retirement and Pension System commits $100mm to TruAmerica’s TruAmerica Multifamily Worforce Housing Fund II, a value-add closed-end fund investing in multifamily across the U.S.

• Industrial | Retail: The Indiana Public Retirement System commits $15mm to Longpoint Partners’s Longpoint South Florida Logistics Portfolio and $52mm to Adrian Project Egide for high street retail investments in New York and Paris

Meme Summary

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