Good Morning/Afternoon!

Limited deal activity to report today. As we close out 2024 we’ve gathered a couple of the 2025 predictions for CRE below. Let’s hope some of those predictions (the positive ones) come true next year.

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Capital Markets

Headlines

• Post-2019 CRE Funds Show Negative IRR

  A study tracking 281 CRE funds showed continued negative IRR for funds launched at the start of the pandemic and post-pandemic. The study is tracking 15 vehicles which closed post-2019 and 266 vehicles pre-2019

• 2025 Outlook - Avison Young

  AY’s 2025 outlook is positive with key focus on higher leasing velocity as tenants move on from election uncertainty and begin making leasing decisions. Overall they predict rents and cap rates staying flat, with an uptick in investor interest for opportunistic deals

• 2025 Outlook - Colliers

  Collier’s expects significant headwinds in 2025 for CRE as rate cuts have failed to bring down SOFR down significantly. Insurance premiums are expected to rise 80% by 2030, construction costs are also predicted to continue rising, and investing into tech is expected to take priority. Alternative capital sources are expected to continue to rise as borrowers seek to refinance in a higher interest rate environment

• 2025 Outlook - JLL

  JLL’s 2025 outlook is cautiously optimistic with its recent investor survey showing the most optimism since 2022. Supply is expected to become constrained for infill markets as construction deliveries drop, 2025 is predicted to be the market bottom for investors with key investments to be made, companies are expected to begin growing their footprint, obsolete assets will trigger capital spending, and tackling rising energy costs will be the key themes in 2025

Deals Deals Deals

Sales

• Industrial: Bridge Industrial acquires two industrial facilities for 343K SF in Kent, WA from Link Logistics for $64mm

• Student Housing: Virtu Investments acquires a 133-unit student housing asset for $55mm in Bellingham, WA serving Western Washington University

• Multifamily: Osso Capital acquires a 240-unit multifamily asset in Lowell, MA from SMC Management Corp 

• Multifamily: Taylor Morrison acquired a 26-acre land site for build-to-rent homes in Tampa, FL from Brookfield Residential

Debt

• Multifamily: Bank of America to acquire $990mm of multifamily CRE loans from HomeStreet

• Multifamily: Sioni Group secures a $96mm bridge loan from Starwood to refinance a 163-unit multifamily asset in the Bronx, NY

Developments

• Multifamily: BR Companies to develop a $250mm 300-unit multifamily asset in Kansas City

• Multifamily: Preston Development Company to launch its next phase at Chatham Park outside Raleigh, NC. The next phase will include over 600 residential units via single-family homes and townhomes. Sales are expected to launch early 2025

• Multifamily: Thompson Thrift to develop a 324-unit multifamily building in Boulder, CO. The building is expected to be delivered in winter 2026

Meme Summary

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