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The Fed did not cut rates yesterday, CMBS delinquencies are being driven by massive office loans, Boston passes a net-zero emissions requirements on new buildings, the federal funding freeze is still in effect??, EQT to focus on industrial, and New York and Miami office attendance is about 20% down from 2019

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Capital Markets

Headlines

• No Fed Rate Cut

  Fed officials struck a cautious tone on inflation saying it “has made progress toward” a goal of 2%. Consumer prices averaged 2.9% higher in December than the same period a year earlier — an annual rate that has hovered for months above the Fed’s 2% target

• Trepp Deep Dive Into CMBS Delinquencies

  Trepp research previously showed CMBS delinquency rose to 6.57% in December. A recent article does a deep dive into the newest delinquencies and loan modifications. Some of the newest CMBS deals to become delinquent include:

  • $670mm loan on 230 Park Avenue in Midtown Manhattan

  • $267mm out of the $400mm debt on Bank of America Plaza in Los Angeles

  • $505mm loan on Natick Mall in Boston

• Boston Zoning Commission Passes Net-Zero Requirement

  The city's zoning commission on Wednesday approved, 8-to-3. the net-zero zoning proposal, which will require future large developments to meet net-zero carbon emissions standards once complete. Hospitals and general manufacturing buildings are exempt until 2045, and labs are until 2035

• White House Says “Federal Funding Freeze” Remains in Effect

  The White House formally rescinded a memo that ordered a freeze on federal grants and loans, but on Wednesday a spokesman said the rescinded memo was simply a rescinding of the memo but not the freeze itself.

• EQT Exeter Focusing on Industrial

  EQT is pulling out of U.S. multifamily and halting life sciences and office investments to focus on industrial activity. The firm cited a tough fundraising environment as the reason for pulling out of multifamily

• Return To Office Strongest in Miami and New York

  New York and Miami once again led the regional return to office with December office visits down 19.6% and 20.9% from December 2019 levels. Nationwide office visits were down 39.2% from December 2019 levels

Deals Deals Deals

Sales

• Industrial: MDH Partners acquired a 1mm SF industrial asset in Dallas, TX from Hillwood 

• Multifamily: TA Realty acquires a 300-unit apartment property in Pembroke Pines, FL for $118mm

• Industrial: Taurus Investment Holdings acquired a 636K SF shallow-bay industrial portfolio in Minneapolis, MN. The building was 96% leased by 71 tenants at sale

• Student Housing: Provident Resources Group acquired a mixed-use 644-bed student housing and academic building in Orlando, FL for $105mm. Halstatt Real Estate Partners, Development Ventures Group, and Ustler Development sold the asset

• Office: First Mile Capital acquired 340 Mount Kemble Ave., a 439K SF office in Morristown, NJ, from Onyx Equities and PCCP. The price was undisclosed

• Multifamily: Habitat acquires Seasons Villas, a 214-unit multifamily community in Woodbury, MN from Boston Capital Group

• Industrial: Hines acquired the Titusville Logistics Center. a 247K SF logistics warehouse in Titusville, FL, for $42mm from Reich Brothers 

• Multifamily: Investors Capital Group acquired Table Rock, a 100-unit multifamily community in Flagstaff, AZ, for $26mm from Aultas

Debt

• Retail: DLC secured $42mm in acquisition financing from Webster Bank for Danada Square West, a 31K SF grocery-anchored shopping center in Wheaton, IL

  The firm had purchased the asset from PGIM Real Estate for $62mm

• Multifamily: Fairfield secured a $26mm Freddie Mac loan for a 212-unit apartment community in Portland, OR

Developments

• Mixed-Use: Hines and Aubrey Corp. to develop Aubrey Village, a mixed-use project spanning over 2,390 acres in Bartow County, GA. The industrial component is expected to cover 1,200 acres and another 600 acres will be for retail and residential uses

• Multifamily: Damac Properties has launched sales at The Delmore, its 37-unit luxury condo development on the site where the Champlain Towers South collapsed in Miami, FL

• Industrial: Tractor Supply Co. to develop a 865K SF distribution center in Nampa, IA

• Industrial: Nestle USA opened its new $675mm 630K SF beverage factory and distribution center in Glendale, AZ. The company broke ground on the project in 2022

• Senior Housing: The Clear Blue Co., Urban Campus and Core and Born Again Church raised over $100mm to start construction on a 254-unit affordable senior housing community in Nashville, TN

Distress

• Multifamily: S2 Capital placed $60mm of rescue capital through a structured preferred equity investment in a new joint venture with Trinity Investors for a five-building multifamily portfolio. S2 also secured a new 5-year, $170mm senior loan through ACORE Capital

Capital Raising

• Hospitality: AVANA and IHG launch $250mm co-lending construction program for U.S.-based projects primarily across the EVEN Hotels, avid hotels, Atwell Suites and Holiday Inn brands

• Multifamily: Middle Street Partners completed a $69mm recapitalization with Inceptiv Management that will allow the firm to target $1 billion of early cycle multifamily developments and acquisitions over the next two-to-three years

Meme Summary

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