Good Morning!

Investors expect a Fed rate cut this week, record levels of Holiday travel are expected this Holiday season, a PWC survey shows investors are optimistic about real estate returns in 2025, student loan payments could spike, and Healthcare real estate is having a solid comeback in 2024

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Capital Markets

Headlines

• Investors Expecting a Fed Rate Cut on Wednesday

  With inflation remaining above 2%, investors believe a rate cut is expected this week but are eyeing the projected rate cuts for 2025

• Record Holiday Number of Holiday Travelers Expected

  AAA projects 119mm people will be traveling for year-end between Dec 21st through Wednesday Jan 1st. An increase of over 3mm people from last year

• Real Estate Poised for Profitability in 2025

  PWC’s investor survey for 2025 sees strong optimism for real estate’s profitability in 2025. Top markets for growth are expected to continue to be in Texas and Florida

• Student Loans Could See Payments Spike in 2025

  A number of Biden’s policies and programs which reduced payments for borrowers based on income or family size could expire next year setting up borrowers to pay higher monthly installments

• Healthcare Real Estate Sees 92.8% Occupancy in 2024

  Transaction activity picked up 62% year-over-year in 2024, with cap rates showing compression, and expense growth showing signs of slowing down. A physician shortage continues to grow as retirements grow

Deals Deals Deals

Sales

• Office: A JV between Cross Ocean Partners, Neuberger Berman Special Situations, and Onward Investors acquired Wells Fargo Center, a 1.2mm SF office asset in Minneapolis, MN from Starwood Capital Group

• Multifamily: The Beach Co. acquired a 264-unit, $49mm apartment community from Proffitt Dixon Partners in Greer, SC. The deal was financed with a $32mm Fannie Mae loan

• Retail: CIM Group acquired District La Brea, a 82K SF retail strip along La Brea Avenue in Los Angeles, CA

• Retail: Winstanley Enterprises and Surrey Equities acquired Chelmsford Mall, a 225K SF open-air center, in Chelmsford, MA for $28mm

• Multifamily: BRIDGE Housing acquires a 94-unit community in Berkeley, CA and a 248-unit apartment community in Gersham, OR. The apartments will remain or be converted to affordable housing

Debt

• Hospitality: The Loren Group secures a $57mm refi from Southern Realty Trust and TCG for The Loren at Lady Bird Lake, a 108-key luxury hotel in Austin, TX 

• Multifamily: Material Capital Partners secured a $38mm construction loan for a 170-unit, build-to-rent development in Brunswick, GA from Builders Capital

• Multifamily: Zale Properties secured construction financing for The Monarch, a 325-unit luxury apartment community in Allen, Texas

• Industrial: Consolidated Investment Group secured a $18mm, fixed-rate, five-year loan for a 236K SF two-building industrial portfolio in Aurora, CO

• Office: BentallGreenOak and Urban Renaissance Group LLC secured a refi for Plaza 600, a 210K SF office building in downtown Seattle, WA

Developments

• Data Centers: A JV between Blue Owl, Chirisa, and PowerHouse Data Centers secure $600mm in construction financing to build a datacenter in central Virginia

• Multifamily: Shorewood Real Estate Group acquired a 31K SF site in the Bronx, NY for $29mm from Atlantic Development & Investment. The site will be used for a mixed-use development

• Self Storage: A JV between DXD Capital and Olympus Ventures complete a 774-unit self-storage facility in Miami, FL

Capital Raising

• Industrial: BKM Capital Partners recapitalized a $550mm, nine-property portfolio totaling 2.1mm SF with Kayne Anderson Real Estate

Leasing

• Logistics: Logistics Property Co. signs a 1.1mm SF lease with CJ Logistics in Wilmer, TX

• Industrial: A JV between Constellation Real Estate Partners and Crow Holdings Capital signed a 303K SF lease with US ELogistics Service Corp. at Constellation Post Oak in Houston, TX

• Office: Nuveen signs a 104K SF lease with Merit Energy Co. at Estate’s Tow Lincoln Centre, a 620K SF office building in Dallas, TX

Meme Summary

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