Good Morning!

The stock market continues to tank, the Nightingale Properties’ saga continues, HUD cancels a couple section 4 contracts in New York, and nearshoring is triggering an industrial boom south of the border

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Capital Markets

Headlines

• Investor Group Suing CrowdStreet

  An investor group is suing the real estate crowdfunding platform CrowdStreet over Nightingale Properties’ $130mm acquisition of 200 W Jackson Blvd in Chicago, IL. The investor group alleges CrowdStreet failed to do its diligence on Nightingale and effectively assisted Nightingale in defrauding investors by offering the investment through its platform

• HUD Cancels Section 4 Housing Contracts

  Enterprise Community Partners and Local Initiatives Support Corp. received notices from The Department of Housing and Urban Development ending all Section 4 funding, planned engagements and previously approved projects. The funding totaled over $60mm in funds

• The Rise Of Calexico and Mexicali In The Industrial Space

  South of the border, Tijuana and Otay Mesa on the U.S. side have seen an industrial boom in recent years with inventory growing from ~16.4mm SF in 2020 to ~24.4mm SF in 2024, driven largely by nearshoring trends and a shift of investor interest. Now Calexico and Mexicali are starting to see similar growth with Mexicali growing from 25mm SF to 40mm SF between 2018 and 2024

• Stock Selloff Continues

  Last week, the S&P 500 lost 3.1% for its worst weekly mark since September. The Dow fell 2.4%, while the Nasdaq shed 3.5%. In an interview that aired Sunday, President Donald Trump responded to a question on Fox News about the possibility of a recession by saying the economy was going through “a period of transition.” and subsequently triggering recession fears

Deals Deals Deals

Sales

• Multifamily: A private Canadian investment firm acquired two Nebraska multifamily properties, The Vue and Lakeview Park totaling 566 units, from a JV between Vantage Capital Advisors and Cherry Tree Capital Partners

• Multifamily: LeCesse Development Corporation disposed of Slate at Merrimack, a 224-unit apartment community in Merrimack, NH. The price and buyer were undisclosed

• Multifamily: Carter Multifamily acquires Palm Bay Grand, a 166-unit garden-style multifamily community in Melbourne, FL, from TrimCor

• Senior Housing: Nelson Tuchman, through the entity Tuchman Associates II, sold the Rego Park Health Care, a nursing home in Queens, NY, for $56mm to S&A Re Acquisitions LLC, a potential subsidiary of Pinnacle Group of Hudson Valley.

Debt

• Multifamily: Savanna secured a $380mm construction loan for a Olara, a two-tower luxury waterfront residential project in West Palm Beach, FL. The financing came from One Investment Management, Sculptor Capital Management, Octo Capital Management and Zeckendorf Development

• Multifamily: Hillpointe, secures a two-year, floating rate, interest-only, $50mm bridge loan from NewPoint Real Estate Capital for Pointe Grand Plant City in Plant City, FL, a 300 unit garden-style multifamily community

• Hospitality: Chartwell Hospitality secured a $48mm loan from Citibank to refinance the Residence Inn New York JFK Airport, a 182-key hotel in New York

• Multifamily: Related Group seeking to redevelop the Claude Pepper Tower public housing site in Miami, FL into a new 14-story, 398-unit apartment tower

• Retail: Apartment Income Investors secured a 10-year, $24mm, 6.82% fixed-rate CMBS loan from LMF Commercial to refinance The Village at Moorpark, a 130K SF grocery-anchored shopping center in Moorpark, CA

• Industrial: DH Property Holdings secured a $19mm construction loan from Voya to develop 270 Billerica, a 92K SF industrial building in Chelmsford, MA

Developments

• Data Centers: An undisclosed developer proposed a $2.1bn data center campus in Archbald, PA. The proposed project would span 17mm SF across 14, three-story centers on 400 acres

• Data Centers: RadiusDC to develop a 103K SF, 12 MW data center in Nashville, TN. The company acquire the site for $5mm with Blue Owl Capital providing financing for development

• Data Centers: Armbrust & Brown PLLC, on behalf of Highlander SM One LLC, proposed a data center on 199 acres in San Marcos, TX

• Mixed-Use: A 29-acre oceanfront redevelopment project located in Huntington Beach, CA obtained a $61mm, 18-month non-recourse refinancing package. Details on the California developer were undisclosed. The development plan includes over 200 for-sale single-family homes, a 50-unit affordable housing community, a 215-key boutique hotel,19K SF of retail space, and 4.4 acres of public parks

• Multifamily: Skansa planning a 31-story apartment tower in Houston, TX

• Self Storage: Bakke Development and BCDC break ground on TalleyBak Storage, a 774-unit self storage facility in San Antonio, TX

Capital Raising

• Diversified: Blackstone announced it closed on Blackstone Real Estate Debt Strategies V, an $8bn real estate debt fund targeting corporate credit, liquid securities, global scale lending and structured solutions for banks, insurance and mortgage companies in North America, Europe and Australia

• Multifamily | Student Housing: The Teacher Retirement System of Texas committed $100mm to CS Bevo I, managed by Core Spaces 

Meme Summary

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