Good Morning!

New housing starts spiked in February, a study showed a large number of banks will need to raise capital to stay afloat due to losses on CRE loans, FCC reviewing proposal to ban bulk internet deals in residential buildings, all eyes on the Fed today, BTC plummets, car values are also dropping, and Nordstrom is looking to go private

The salary survey submission form is extended for another week!!! We’ll be collecting info for one more week and post results via PropMemo and Real Assetzz in the following weeks. We have nearly 300 submission so far, so keep filling out the form and telling your friends, coworkers, bosses, and anyone in CRE

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Capital Markets

Headlines

• Fed Expected To Keep Rates At Current Levels, Market Awaits Commentary on Future Rate Cuts

  Recent inflation data has the market concerned over the outlook of rate cuts in 2024

• Bitcoin Selloff

  After breaking past $73,000 last week, BTC dropped below $61,000

• Falling Car Values Has Many Americans Owing More Than Cars Are Worth

  Edmunds' reported the the average amount consumers owe on upside down loans is at a record high of $6,064

• Nordstrom Looking To Go Private

  Reuters reported that Nordstrom has asked investment banks Morgan Stanley and Centerview Partners to reach out to private equity firms and gauge their interest for a potential deal

• New Home Construction Surged In February

  According to data released by the Census Bureau and the Department of Housing and Urban Development, new housing starts rose by 10.7% in February, up from January

• FCC Contemplating Bulk Internet Deals In Apartment Buildings

  The FCC is considering a proposal that would restrict residential landlords and condo boards from providing broadband service from a single provider under a blanket contract with a fixed price

• Study Shows Some Banks Will Need A Capital A Large Infusion To Survive

  A Study done by consulting firm Klaros Group looked at 4,000 institutions and found 282 with high levels of commercial real estate exposure and large unrealized losses from the recent interest rate hikes. The analysis reveals these lenders may be forced to raise fresh capital or merge

Deals Deals Deals

Sales

• Industrial: Westfield and Reinsurance Group of America acquired Centerpark, a 431K sf industrial park in Denver, CO from Prologis for $73M

• Life Sciences: Dollinger Properties acquired a 90K sf R&D and lab portfolio in San Diego, CA, for $31M from Montana Avenue Capital Partners

• Office: Chinese-American Planning Council acquires a 40K sf office condo at Gotham Organization’s 45 Suffolk Street in New York, NY for $20M

• Retail: Vista Property Co. acquires Lake Worth Marketplace, a 198K sf retail power center in Fort Worth, TX from Principal Real Estate Investors

Debt

• Industrial: CBRE Investment Management and Hillwood Investment Properties, secured a $756M financing package from Bank OZK for the construction of the first phase of Speedway Commerce Center, a logistics park that will support up to 6.6M sf in Los Angeles, CA

• Mixed-Use: Jacob Chetrit and Stellar Management secure a three-year extension for their $370M CMBS loan on the retail and commercial portion of their five property portfolio known as Columbus Square in New York, NY

• Industrial: Bridge Industrial secures a $150M mezzanine loan from funds managed by Mesa West Capital and Morgan Stanley Real Estate Investing, along with a $263M construction loan from Bank OZK, to finance a 2.5M logistics campus in Tacoma, WA

Developments

• Industrial: SCHOTT Pharma to develop a $371M syringe manufacturing facility east of Raleigh, NC with a target completion date in 2027

• Multifamily: A development group led by Erwin and Issac Sredni secured a $59M construction loan from City National Bank of Florida for a 145-unit apartment community in Coral Gables, FL

• Multifamily: Tishman Speyer acquired the land for its 2,000-unit mixed-use development in Jersey City, NJ which will feature two towers

Capital Raising

• Industrial: Investcorp launching new $526M Industrial Fund

• Industrial: Bixby Land Co. recapitalized five industrial assets with a $200M note through Bixby Industrial Fund 1. The proceeds will also allow for future investments. Goldman Sachs Alternatives and Ares Management Real Estate Secondaries are equity investors in the newly established fund

Distress

• Hospitality: $130M CMBS backed by the 1,004-key Los Angeles Airport Marriott is placed on the servicer’s watchlist after a drop in its DSCR

Leasing

• Life Sciences: Pfizer Oncology leased 230K sf for 15 years at Tishman Speyer and Bellco Capital’s Torrey View, a 520K sf life science development in San Diego, CA

• Office: Chemonics lists 153K sf for sublease, out of its 287K sf HQ space at Brookfield’s Navy Yards office in Washington D.C.

• Office: Citizens Bank signs a 74K sf lease at Paramount Group’s 1301 Avenue of the Americas in Midtown Manhattan, NY

• Office: Quadrant Inc. signs a 23K sf lease at TF Cornerstone’s 246K sf office asset in Reston, VA outside of D.C.

Meme Summary

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