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Net lease investment volume was up in 2024, Asian 3PLs expanded their port presence in 2024, U.S. housing market added ~5% in value in 2024, and retail rents in Southwest Florida grew by nearly 20%

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Capital Markets

Headlines

• Net-Leased Investment Volume Up 13% In 2024

  According to CBRE, Net-lease investment volume increased by 19% quarter-over-quarter and 57% year-over-year in Q4 to $13.7bn. For full-year 2024, net-lease investment volume increased by 13% to $43.7bn, while total commercial real estate volume rose by 8% to $392bn

• Asian 3PL Companies Targeted Leases Near Ports In 2024

  Of the 428 lease over 100,000 sq. ft. signed by 3PL providers last year 18% were by Asian-based companies with over 80% of their signings for facilities within 100 miles of a U.S. seaport. Asian 3PLs also took advantage of lower-rent sublease space with 21% of new leases being subleased. The top 3 markets for Asian 3PLs included Inland Empire, Philadelphia, and Northern-Central Jersey

• U.S. Housing Gains $2.5TN In Value In 2024

  According to Redfin, the combined value of U.S. homes gained $2.5tn in 2024 to reach $49.7tn. The total value of homes owned by millennials grew to nearly $10 trillion, representing more than 20% of the U.S. market

• Southwest Florida Maintains 3% Vacancy

  A new report from Colliers shows net absorption climbed to 200K SF in Q4, with vacancy dropping from 3.2% to 3.0% in 2024. Limited construction and tight vacancy has pushed overall retail rents up on average from $21.52/sf/year to $25.75/sf/year in 2024

Deals Deals Deals

Sales

• Hospitality: DiamondRock Hospitality completes the disposition of Westin Washington, D.C. City Center, a 410-key hotel, for $92mm. The price represented a 11.9x 2024 EBITDA multiple and a 7.0% cap rate on 2024 NOI, excluding one-time adjustments

• Multifamily: West End Capital Group acquired Barracks West Apartments & Townhomes, a 324-unit multifamily community in Charlottesville, VA from

  Willow Creek Partners for $57mm. The asset last traded for $45mm in 2021 multifamily property in Greenville, SC, for $45mm from Urban Realty Partners

• Multifamily: Hathaway Cos. acquires Water Tower Apartments, a 233-unit

• Hospitality: Manga Hotels acquired SoHo 54 Hotel, a 160-key hotel in New York City for $56mm from Lam Generation

• Retail: New Gen Hospitality, Inc. acquires Mall Plaza, a 154K SF shopping center in South Portland, ME, for $20mm from GMG LLC

• Office: Listing: Office Properties Income Trust via Eastdil Secured is marketing 20 Massachusetts Ave. NW, a 428K SF office and 274-key hotel project near Union Station in Washington, D.C.

Debt

• Hospitality: Cain International secures a $300mm mezz loan from VICI Properties for its $5.2bn One Beverly Hills development in Los Angeles, CA. Cain International, VICI, and Eldridge Industries announced they formed a partnership to invest in high-growth, experience-driven real estate

• Student Housing: Capstone Collegiate Communities secured a $76mm construction financing package from Cadence Bank for a 165-unit, 532-bed student housing community in Tucson, AZ. Completion is expected in fall 2027

• Multifamily: Sweetwater secured a $30mm financing package for Madison Station, a 360-unit multifamily development in Rexburg, ID, with $15mm in the form of C-PACE loans from Nuveen Green Capital

Developments

• Data Centers: Microsoft submit filings with Texas to develop two data centers in San Antonio, TX. The centers will total 490K SF with total project cost estimate at $700mm and delivery expected in June 2027

• Data Centers: Teton Digital has received approval for a 100MW data center development in Dry Fork Township, ND

• Data Centers: Aligned Data Centers announced its planning a new 430K SF data center campus in Mansfield, TX on a 27-acre site

• Office: Buccini Pollin Group and F.N.B. Corp. deliver FNB Financial Center, 469K SF $300mm office tower in Pittsburgh, PA that will serve as First National Bank’s new HQ

• Industrial: Provident Industrial is developing Phase 4 of Gateway Logistics Park in El Paso, TX, with three industrial buildings totaling 497K SF

• Industrial: Standard Real Estate Investment Partners and Brennan Investment Group to develop Laredo Pinnacle Development II, a 433K SF industrial project in Laredo, TX

• Hospitality: Driftwood Capital secures a three-year, floating-rate, $43mm bridge loan form Peachtree Group as part of the recapitalization of a dual-branded Home2 Suites/Tru by Hilton in Fort Lauderdale, FL

• Multifamily: Echelon Resources Inc. and LBD Investments are converting Showplace West/One Plaza Center, a 135K SF office in High Point, NC, into a multifamily asset

Distress

• Hospitality: The Moinian Group’s Hilton Garden Inn in Midtown Manhattan’s $175mm CMBS loan has transferred to special servicing. The loan, originated in 2015 by Morgan Stanley, is on course to default at its March 2025 maturity date

• Office: WestPark Partners acquires 111 Westwood Place at a foreclosure auction for $6mm, marking an $19mm loss from 2013. WestPark acquired the asset from First National Bank of Tennessee, who acquired the property from Crestview Funds through foreclosure

Capital Raising

• Data Centers: American Real Estate Partners closed AREP Strategic Opportunity Fund IV focused on data center investments with $309mm in commitments

• PropTech: Henry AI, a proptech platform helping broker’s with marketing, raises $4mm in seed round

Meme Summary

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