Good Morning!

A very choppy start for the market yesterday as a result of the tariffs announced over the weekend. Residents in Los Angeles deal with the idea of rebuilding or selling off their damaged sites/buildings, the retail sector in L.A. had pretty low availability at the end of Q4, and Manhattan office metrics put it at the head of the pack for office markets

If you enjoy the newsletter, then help us out by sharing with friends and colleagues. Click the referral link below to share the newsletter, hit milestones, get rewards!

Capital Markets

Headlines

• Trade Wars Have Begun

  Over the weekend Canada and Mexico ordered retaliatory tariffs on the U.S. after Trump imposed 25% tariffs on Canadian and Mexican goods. Canada initially placed a 25% tariff before backtracking on Monday. Both nations have agreed to negotiate and stalled the tariffs

• L.A. Real Estate Owners Weigh on Rebuilding

  In the wake of the fires, smaller investors weigh on selling off sites vs. dealing with clean-up, remediation, and development of their buildings

• L.A. Retail Market Vacancy Unchanged In Q4

  According to CBRE, The Los Angeles retail market closed Q4 2024 with an availability rate of 5.9%.The overall vacancy rate was unchanged from Q3 2024. Net Absorption was positive in the market, with lifestyle and neighborhood centers benefitting from 175K SF and 122K SF. Power centers saw the highest average rent at $4.46/sf/month

  L.A. Retail Market by Product Type (Q4 2024)

  

• New York Leads the Office Recovery (by A Lot)

  According to Colliers, Manhattan office saw 3.9mm SF of positive net absorption in Q4, eclipsing the other 14 top office markets. Manhattan also held the highest rents at $80.13/sf/year and second lowest vacancy rate (second to Miami)

  

  Source: Colliers Research

Deals Deals Deals

Sales

• Hospitality: Henderson Park acquired the PGA National Resort in Palm Beach Gardens, FL from Brookfield Asset Management for over $400mm. The resort features 360 guest rooms, 99 holes of golf, a 40,K SF spa

• Life Sciences: Breakthrough Properties, a JV between Tishman Speyer and Bellco Capital, acquired MUSE, a 3-building, 186K SF, life science campus in San Diego, CA, $159mm from Diversified Healthcare Trust

• Student Housing: BDC Holdings acquired two New York student housing communities, 192-unit, 640-bed Block 20 Buffalo in Amherst and the 182-unit, 358-bed The Hill at Rochester, for $90mm from OC Ventures

• Multifamily: Penzance and TriWest Multifamily, completed the off-market acquisition of Stoney Trace Apartments, a 380-unit multifamily community in Charlotte, NC

• Industrial: MAG Capital Partners acquired two logistics facilities in Weslaco, TX totaling 360K SF via a sale-leaseback transaction with Commodities Integrated Logistics

• Medical Office: Remedy Medical Properties and Kayne Anderson Real Estate acquired a 61K SF medical facility via a sale-leaseback with New England Orthopedic Surgeons for $27mm

• Industrial: Stonelake Capital Partners acquired a 123K SF industrial building in Charlotte, NC from Steins Fiber for $14mm

• Retail: A national REIT acquired a 92K SF BJ’s Wholesale Club in Bangor, ME for $12mm. The parties were undisclosed

Debt

• Self Storage: Prime Group Holdings secured a $108mm CMBS loan for a 15-property self-storage portfolio. Citigroup and Société Générale secured the 5-year, interest-only loan

• Multifamily: StreetLights Residential and MetLife Investment Management secured an $82mm floating-rate refinancing loan from PGIM Real Estate for Mira at Midtown Union, a 355-unit multifamily building in Atlanta, GA

• Multifamily: Thylan Associates, secures a $46mm loan from Naftali Credit Partners for a 132-unit multifamily development in Philadelphia, PA

• Senior Housing: Redstone Group Management Inc. secures a 10-year, fixed-rate Fannie Mae $26mm loan with three years of interest-only payments for a 152-unit senior living community in Grand Rapids, MI

Developments

• Mixed-Use: Jamestown, North American Properties, and Nuveen Properties are looking to rezone a property at Birkdale Village in Charlotte, NC to allow a $180mm project that would include a 125-key hotel, 150 multifamily units, 122K SF of office and 26K SF of retail

• Industrial: A JV between Trammell Crow Co. and Clarion Partners broke ground on the final phase of Weiser Business Park, a 1.7mm SF industrial park in Cypress, TX. The final phase is expected to be completed in October 2025 and adds 628K SF

• Industrial: Trammell Crow Co. and CBRE Investment Management completed Phase One of Jackson 85 North Business Park, a two-building spec warehouse totaling 1.6mm SF in Pendergrass, GA

• Industrial: Ben E. Keith Foods has started construction on a 707K SF distribution center in Alachua, FL. The project is expected to reach completion by fall 2026

• Multifamily: Dominium planning to build Anson Crossing, a 312-unit affordable housing community in Maxwell, TX

• Industrial: Lincoln Property Co. and HIMCO have completed Maverick Distribution, a 436K SF industrial facility in Houston, TX

• Student Housing: LV Collective and Culpepper Realty Co. are developing a luxury student-oriented multifamily housing development in College Station, TX. The master plan calls for 316 units and 953 beds

• Self Storage: Snapbox Self Storage opened a 80K SF self storage facility in Owings Mills, MD. Asset Realty & Construction Group is the owner of the facility

Distress

• Multifamily: A&E Real Estate facing pre-foreclosure on a $506mm CMBS loan tied to a NYC multifamily portfolio consisting of 3,531 units

• Office: Onward Investors acquired Ameriprise Financial Center, a 960K SF office building in Minneapolis, MN, for $6.3mm from GHR Foundation. The price is a 97% discount to its $200mm price in 2016. GHR assumed control in 2023, following the previous owner’s execution of a deed in lieu of foreclosure

Capital Raising

• Diversified: Heitman announced the close of Heitman Real Estate Debt Partners III with $806mm in commitments to provide financing to high-quality sponsors executing real estate projects in traditional and alternative property sectors

Leasing

• Life Sciences: The Chan Zuckerberg Institute for Advanced Biological Imaging signed a 226K SF lease at IQHQ’s Elco Yards in Redwood City, CA

• Office: A&E Networks renews its 152K SF lease at Republic Investment Company’s 227 East 45th Street in New York

Meme Summary

Interested in advertising? Then get in touch with us