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Happy Friday!

The Bay Area saw cap rates rise across the multifamily market, Blackstone is looking at office deals again, Billionaire family offices are opening up the coffers in 2025, and VC funding for life sciences picked up in 2024

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Capital Markets

Headlines

• Average Multifamily CAP Rates Increase for San Francisco Bay Area

  According to Colliers research, average multifamily cap rates have increased in 2024 from 5.11% a year prior to 5.51%. The average price per unit has also decreased by 8.1%. Transaction volume did increase across the board for both 5-9 unit buildings and 10+ unit buildings

• Blackstone: Office Is Back!

  During an interview with Bloomberg John Gray (COO ) said “Office has bottomed, particularly in stronger markets and better-quality buildings,”. The COO now believes the asset class is underpriced following a 50% to 70% drop in value

  (Disclaimer: Blackstone did not explicitly say “Office Is Back!”, please don’t sue us)

• Billionaire Family Offices Investing in AI, Health Care

  Private investment firms kicked off 2025 with bets on startups and company acquisitions. 24 investments were reported in January so far

• 2024 Life Sciences VC Funding Up 16%

  According to C&W research, VC funding for life sciences reached $30.5bn, up 16% year-over-year. This number was far from the peak in 2021, when life sciences VC funding reached $49.6bn. Total deal volume was down in 2024 with a stronger focus on early- and late-stage companies, with angel investment making up a tiny amount

  2024 Total U.S. Life Sciences VC Funding

  

Deals Deals Deals

Sales

• Multifamily: S&S Properties acquired a 360-unit luxury apartment community in Jeffersonville, IN from Denton Floyd Real Estate Group, LDG Development, and a private investor. S&S also secured a seven-year, fixed-rate $43mm Fannie Mae loan

• Industrial: Goldman Sachs Alternatives and Dalfen Industrial acquired a 21-building, 2.1mm SF last-mile logistics portfolio from Blackstone for $293mm

• Office: Blackstone nearing agreement to acquire 1345 Avenue of Americas, a 1.9mm SF office asset in New York, NY

• Office: Reign Capital acquires eight obsolete AT&T utility properties in Miami-Dade County for a combined $44mm

Debt

• Multifamily: J. Fisher Companies secures a $60mm construction loan from PCCP for the development of The Edison, a seven-story, 201-unit multifamily community in downtown Salt Lake City, UT

• Multifamily: Core Spaces secures a construction loan from QuadReal Property Group to develop Hub Packard, a student housing development for the University of Michigan in Ann Arbor, MI

• Multifamily: The District of Columbia Housing Finance Agency issued $63mm in tax exempt bonds, underwrote $47mm in federal and $10mm in DC LIHTC equity for the construction of phase II of Barnaby & 7th, a 229-unit affordable housing community in DC. Gilbane Development Company, MED Developers, Equity Plus Manager LLC and Housing Help Plus are the developers

• Multifamily: The Benoit Group and The Housing Authority of the City of Atlanta secured a $28mm FHA/HUD loan to develop Englewood Multifamily, a 200-unit five-story mixed-income and mixed-use property in Atlanta, GA

• Multifamily: Roers Companies secured $76mm in senior proceeds from Kayne Anderson and $12mm in mezz financing from SteepRock Capital for the construction of Bennett Apartments and Harlow Apartments, two adjacent multifamily projects in Chanhassen, MN

• Office: APF Properties secures a $22mm debt package from LoanCore Capital to recapitalize 183 Madison Ave in New York, NY

Developments

• Retail: Simon to develop Nashville Premium Outlets, a 325K SF luxury shopping and lifestyle destination in Thompson’s Station, TN. Construction is expected to begin in 2026

Distress

• Office: Realm acquired Parkway Towers and Court Square Building in Nashville, TN for $15mm. Wheelock Street Capital sold the two buildings for a combined loss of approximately $26mm. Realm intends to convert the buildings to apartments or a hotel

Meme Summary

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