Good Morning Everyone!

KKR announces the sale of over 50 industrial assets for over $560mm. GI Partners extends a $450mm term loan facility to Vantage Data Centers to fuel its data center portfolio expansion. A Japanese developer acquires a Texas-based developer to expand its presence in California. Redfin instructs its agents to resign from National Associate of Realtors. And finally, The Midwest outperforms all other markets in August with higher YoY rental growth.

No meme summary today because I stayed up late watching football…

If you are a follower and like this newsletter then please share with work friends and any other CRE professionals. If you have feedback then feel free to fill out the feedback form or slide into the DMs on Instagram (@propmemo_ra)

Interested in sponsoring? Then get in touch with us

Capital Markets

Market News

• 30-Year mortgage rates drop after breaking the 8% barrier on Thursday last week (Investopedia)

  30-Year Mortgage Average

  

• 10-Year Treasury surges to 16-year high on Monday. Stronger than expected manufacturing and construction data boosted odds of another the Fed rate hike before year end (Investors)

• Major banks are sounding the alarm on further stock declines following prolonged interest rate hikes (Yahoo)

CRE Headlines

• Redfin instructs brokers to resign from National Association of Realtors stating NAR policies require a fee for the buyer’s agent on every listing and a pattern of alleged sexual harassment. Redfin had given up their national board seat in June (Redfin)

• Sumitomo Forestry, a Japanese housing developer, will acquire 90% of JPI, a Dallas, TX - based apartment developer for up to $215mm. The group aims to capture growing housing demand in California (Nikkei)

• BREIT fulfills only 29% of the $2.1bn in repurchase requests in September. The $2.1bn in repurchase requests was down 28% form August. BREIT has sold $15bn in real estate, generating $3bn in profits since January 2022 (Bisnow)

• Midwest outperforms all other markets with a 3.1% YoY asking rent growth in August. With the exception of the East Coast, all other markets showed a decline in asking rents (RealPage)

Deals Deals Deals

Sales

• Industrial: KKR sells over 5mm sf of warehouse and distribution properties for over $560mm. The company announced the sale was carried out via five separate transactions to five separate undisclosed buyers and were primarily from assets held in KKR’s Real Estate Partners Americas II fund (BusinessWire)

• Multifamily: MIG Real Estate buys 456-unit apartment community in San Diego, CA from MG Properties Group for $174mm. The sale is the second largest multifamily transaction in San Diego in 2023 (connectcre)

• Hotels: Dynamic City Capital acquires Canopy by Hilton in Scottsdale, AZ for $102mm. Miller Global Properties sold the 177-key, 128k sf hotel (connectcre)

• Multifamily: Landmark sells two Miami, FL affordable housing communities for $54mm. The two building portfolio was made up of 259-unit Malibu Gardens and 109-unit Sunrise Commons (connectcre)

• Office: Kingbarn Realty Capital acquires GoldCoast Logistics HQ in suburban Chicago, IL. The building was a build-to-suit for GoldCoast Logistics in 2022. The logistics company entered into a 20-year triple net lease with 2.5% annual increase at the time of the sale (NewWire)

• Retail: RK Centers acquires a 415k sf power center outside of Providence, RI from Union Realty Partners. The center is anchored by Market Basket, Home Depot, T.J. Maxx, Burlington, Hobby Lobby, Edge Fitness, Bob’s Discount Furniture, and Party City (REBusinessOnline)

• Multifamily: Pedcor Cos. sells a 208-unit apartment community in suburban Indianapolis, IN (REBusinessOnline)

• Industrial: JV between Dalfen Industrial and Centerbridge Partners acquires two industrial outdoor storage properties located in the Inland Empire of California and in Old Bridge, NJ (connectcre)

Debt

• Data Centers: GI Partners extends a $450mm term loan facility to Vantage Data Centers to support its portfolio expansion (Bisnow)

• Hotels: Stockdale Capital Partners secures a $58mm loan from Varde Partners for the $87mm acquisition of the InterContinental in Houston, TX (CommercialObserver)

• Office: FoxRock Properties refinanced One Heritage Dr in Boston, MA securing a five-year, fixed-rate $27mm loan from Metro Credit Union. The 173k sf building is fully leased to Granite Telecommunications (REBusinessOnline)

• Multifamily: The Illinois Energy Conversation Authority closes on $16mm of financing for a 402-bed student housing C-PACE development in Champaign, IL. Nuveen Green Capital supplied the capital (connectcre)

Developments

• Medical Office: Stockdale Capital Partners unveils 145k sf medical office and life sciences project in West Los Angeles, CA. The project is expected to be completed in 2026 (connectcre)

• Industrial: Street Realty plans to build a 140k sf light industrial business park in Forth Worth, TX. The 14 small-bay buildings are expected to be delivered in Q3 2024 (REJournals)

Distress

• Office: SL Green and RXR’s $940mm loan backed by Worldwide Plaza placed in watchlist due to upcoming lease expiration (TheRealDeal)

Capital Raising

• Diversified: PIMCO closes its Commercial Real Estate Debt Fund II on $3bn after previously reporting $2.8bn over the summer (PERE)

Leasing

• Industrial: Silfab Solar, a solar panel maker, plans to establish a $150mm manufacturing facility in York County, SC. The company will lease a 785k sf building with operations starting in Q3 2024 (connectcre, Reuters)

• Office: TikTok parent company, ByteDance, expands in Los Angeles, CA with a total of nearly 143k sf in buildings owned by Northwood Investors, and JMB Realty (Bisnow)

• Office: Canvas Worldwide, a marketing and media agency, signs a 18k sf lease at One Hudson Square in Manhattan. The 1mm sf office is owned by Hudson Square Properties (REBusinessOnline)

• Office: Alzeheimer’s Association signs 6k sf lease at National Gateway II in Arlington, VA (CommercialObserver)