Happy Labor Day Weekend!

Jobs report for August was just released with the U.S. economy adding 187,000 jobs and unemployment creeping up to 3.8%. Yesterday showed consumer spending increased in July by the highest in 6 months as Americans continue to spend while tapping into savings. Mortgages fell to their lowest in 3-weeks (still above 7% so don’t get excited) and Wall Street called upon its employees to fully return to the office. New York state launched a program to provide up to $650mm to fund housing by reward communities that prove they have created an increase in housing. Investor home sales decreased by 45% in Q2 as investors were priced out of the market by rising rates.

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Capital Markets

Market News

• Jobs Report: U.S. economy adds 187,000 jobs in August, beating expectations, unemployment increased to 3.8%, and wages grew by 0.2% in August (MarketWatch)

• U.S. consumer spending increased by 0.8% in July as households draw down on savings (Yahoo)

• 30-Year mortgage rates fall to 3-week low of 7.48% (Investopedia)

• Wall Street cracks down on return to office (Bloomberg)

• FASB approves proposal for increased tax disclosure standards for U.S. companies to provide additional information on local, federal, and foreign levels (thefactcoalition)

• List of salaries for a single worker to support themselves by state (CNBC)

CRE Headlines

• New York State launches Pro-Housing Community Program that will fund up to $650mm to localities that are committed to created housing (6sqft)

• Investor home purchases fell by 45% year-over-year in Q2 2023 (Redfin)

• CLO lenders are working on loan modifications to avoid write-offs (GlobeSt)

• JCPenney to spend over $1bn to remodel stores, upgrade online shopping, and improve supply chain capabilities (CSA)

• Green Street upgrades 145 malls as a result of improvements in vacancies (Bisnow)

Deals Deals Deals

Sales

• Carr Properties sells pair of high rise multifamily assets for $220mm. The pair consisted of 456 units in Bethesda, MD (Bisnow)

• Carlyle Group sells 75K sf office building in Long Island City (NYC) to Montperia Group and JLS Construction for $49mm (Crains)

• Azora Exan buys 62k sf Boston, MA office building from Nuveen Real Estate affiliate for $41mm. The asset was originally purchased for $43.5mm in 2021 (Bisnow ,NEREJ)

• Transwestern Investment Group and Acento Real Estate Partners sell 89k sf office building in Farifax, VA (CommercialSearch)

Debt

• Ballast Investments to buy Veritas Investments’ $800mm mortgage portfolio backed by 75 buildings consisting of 2,149 units in San Francisco, CA (TheRealDeal, SFChronicle)

• Trammell Crow Residential secured a construction loan for its 210-unit luxury multifamily development in Waltham, MA (Yahoo)

Developments

• Castle Hill Partners begins development of master planned community which will include over 2,000 home sites near Houston, TX (Bisnow)

Distress

• Vella Group Defaults on $79mm loan tied to portfolio of four industrial and office properties in Los Angeles, CA. The Lender Madison Realty Capital is doing a workout (CommercialObserver)

Leasing

• Umoja Supply Chain Solutions and Sungrow USA Corp. sign a 176k sf and 180ksf leases at distribution center owned by Trammell Crow and Clarion Partners in Houton, TX (HoustonChronicle)

• DSV Air & Sea signs 115k sf lease at Prologis Facility in Houston, TX (HoustonChronicle)

• Sprouts Farmers Market signed a 25k sf lease at Battlefield Shopping Center in Leesburg, VA (Commercial Observer)

Meme Summary

Job Report Summary:

Home Buyers celebrating getting a 3-week low interest rate in 2023

Wall Street Banks to their employees