Happy Thursday to All!

Invesco Real Estate acquires a minority stake in Faropoint, a real estate investment manager that focuses on last mile industrial real estate. Retailers are mostly seeking to expand in 2024. Major apartment REITs with a Sun Belt heavy portfolios get a downgrade following supply data. And the return to office movement is slowly growing as companies see a noticeably shift to more days in the office. Markets are pricing in a rate cut sooner and sooner as 10-year treasury rates keep dropping daily. Unionizing fever has started to spread across companies with more workers seeking to unionize.

NEW!!! Recently launched the referral program below. Share the newsletter, hit milestones, get rewards!

Merch Spotlight

Capital Markets

Market News

• Markets Are Pricing in a Rate Cut by May According to CME

  U.S. Treasury yields fell on Wednesday, with the 10-year on track for the largest drop since December 2008. Softening economic data, and slowing inflation has increased expectations the Fed has completed its rate hike cycle and will need to cut rates in the coming months

• Workers at Amazon’s Largest Air Hub Allege Retaliation from Amazon for Trying to Unionize

  Employees at Amazon’s 882-acre air hub in Hebron, KY have been confronting their managers to demand an end to union busting, which they allege includes write-ups and other disciplinary actions against workers. Workers at the facility are seeking a starting pay of $30 an hour, free on-site childcare, overtime pay, professional translation and union representation

• UAW Launches Campaign to Unionize 13 Non-Union Automakers in the U.S.

  The United Auto Workers union launches efforts to get nearly 150,000 workers across BMW, Honda, Hyundai, Lucid, Mazda, Mercedes, Nissan, Rivian, Subaru, Tesla, Toyota, Volkswagen, and Volvo to unionize after record contracts with Detroit automakers. Workers are signing electronic cards in support of the union efforts to potentially organize U.S. plants. Workers would still need to vote in support of UAW representation before a formal push is made to organize every plant or automaker

• Chinese Investment Bank Bans Analysts From Wealth Displays and Negative Economic Commentary

  China International Capital Corp sent an internal memo to its research department banning analysts from publishing bearish research views on China’s economy. The memo also told staff not to wear luxury brands, disclose pay, and to make sure families adhered to social and ethical standards

CRE Headlines

• Three Major Apartment REITs Downgraded Due to Rent Growth Concerns

  Camden Property Trust, MAA, and UDR were downgraded by Bank of America and Piper Sandler citing record supply growth, negative rental growth for the Sun Belt, and increased concessions

• Most Organizations Expect Employees In Office 2-4 Days a Week

  Research from CBRE shows 95% (out of the 278 reviewed) of companies expect workers in office in some capacity with only 4% claiming to be fully remote. Companies are shifting to an office-centric attendance policy with those who require workers in office three or more days per week increasing from 13% in Q1 to 32% in Q3. Tech companies remained most likely to be fully remote, while companies in the life sciences and industrial logistics were most likely to be fully in-office due to equipment dependencies

  Shift in Attendance Policies

  

• Retailers Planning to Expand in 2024

  The retail sector has seen low vacancy, limited new development, and rising rents, and is now seeing retailers planning expansions after surviving the pandemic and seeing a surge in consumer spending. In addition to expansion plans. retailers plan to invest in omnichannel customer engagement, automation in their warehouses, and artificial intelligence as the top 3 items for 2024

  Retailer 2024 Plans

  

• Invesco Real Estate Acquires a Minority Stake in Industrial Real Estate Firm Faropoint

  Faropoint, a real estate investment manager that focuses on last mile industrial real estate, secured a minority investment from Invesco. Faropoint has acquired over 400+ warehouses consisting of over 20mm sf. Its acquisition criteria is focused on small to medium last mile logistics assets with an average deal size of $5mm and 60k sf per asset

Deals Deals Deals

Sales

• Multifamily: Acacia Capital acquires a 124-unit multifamily community in San Jose, CA for $62mm

• Retail: Ziff Real Estate Partners acquires Wando Crossing, a 214k sf power center in Charleston, SC from SITE Centers for $46mm. Anchor tenants included HomeGoods, Marshalls, TJ Maxx, Ashley HomeStore, Total Wine & More, Michaels, Petco, and Five Below

• Retail: Carter Properties acquires a 147k sf grocery-anchored shopping center in Cleveland. OH from Heritage Development for $42mm. Goldman Sachs provided a $29mm loan for the acquisition

• Hospitality: Innisfree Hotels acquires a 94-key hotel for $21mm south of Jacksonville, FL. Pharos Sharpvue Vilano Beach Hotel LLC sold the Hampton Inn & Suites by Hilton-branded hotel after acquiring it in 2018 for $15mm

• Office: Alturas Capital Partners LLC acquires a 121k sf office from Nuveen Real Estate in Salt Lake City, UT. Alturas took out $13mm, five-year loan from Symetra to acquire the asset

• Medical Office: Stage Equity Partners acquires a two-building, 92k sf, 80% leased, medical office portfolio in Libertyville, IL from Hollister Inc.

Debt

• Data Centers: DataBank secures a $345mm loan from First Citizens, MUFG, and CoBank for the construction of ATL4 an Atlanta, GA data center project set to open in Q3 2024

• Multifamily: Affinius Capital and Clarion Partners secure a $158mm loan from Bridge Investment Group and Lowe Property Group to refinance Post District, a three-phase project in Salt Lake City, UT consisting of 580 multifamily units and 26k sf of retail.

• Multifamily: A JV between MWest Holdings and BentallGreenOak received a $48mm loan from a CIM Group-managed fund to refinance The View, a 168-unit luxury multifamily asset in Los Angeles, CA

Developments

• Industrial: Hines begins work on a 684k sf four-building industrial business park in Austin, TX. The building is set to deliver in Q4 2024

• Industrial: LGE Design Build, Creation, and Crow Holdings complete a 556k sf spec industrial development in Dallas, TX spanning 38 acres

• Multifamily: Sander and Amos, and MEB Management Services open a 194-unit BTR community in Tucson, AZ. The $50mm project spans 19 acres and features an outdoor pool and spa

• Multifamily: Riverside to build a 300-unit apartment project in Austin, TX. Development is expected to begin in 2024 with construction expected to last 24 months

Capital Raising

• Data Centers: DataBank raises $188mm in equity via a pre-emptive right offering for existing investors and capital from new investors

Leasing

• Office: Xcel Energy pre-leases the entire 220k sf mass timber office building, T3 RiNo, being developed by Ivanhoe Cambridge, Hines, and McCaffery in Denver, CO

• Office: Current, a mobile banking app company, signs a 72k sf direct lease with RXR’s 620 Avenue of Americas building following WeWork’s exit

• Office: ESET and Northwestern Mutual sign 10-year leases for 24ksf and 22k sf at MetLife Investment Management’s 655 Broadway in San Diego, CA

• Office: Benson Industries Inc., a construction engineering company, signed a 20k sf lease at Unico’s 114k sf MachineWorks building in Portland, OR

Meme Summary

Interested in advertising? Then get in touch with us