Good Morning!

Lots of distress in the office sector today. Bitcoin blows past $100,000, CEOs are no longer safe on the streets, OPEC+ delays oil production increase (remember most construction materials depend on oil…), office conversions are up, and Dollar stores will continue to open despite yesterday’s news of a slowing in sales.

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Capital Markets

Market News

• Dollar General to Open 575 New Stores

  The company revised its earnings down due to unexpected hurricane-related expenses and laid out a plan to remodel and open stores

• United Healthcare CEO Fatally Shot in NYC

  On Wednesday morning, the CEO was shot outside of the Hilton hotel in midtown Manhattan. The gunman was using a silencer and rode an electric bike into Central Park. The company was scheduled to have an investor event on Wednesday

• Office Conversions Pick Up

  In cities where new construction costs are high and office vacancy remains elevated office-to-residential conversions have picked up

• Nightingale CEO Charged With Wire Fraud

  The NYC-based CEO was charged on Wednesday in Atlanta for allegedly embezzling over $50mm from investors

• Bitcoin Blows past $100,000

  On Wednesday night Bitcoin broke past $100,000 something that crypto bulls had anticipated for years

• OPEC+ To Delay Oil Output Hike

  OPEC+ was originally set to increase production in January and will likely delay the move by 3 months

Deals Deals Deals

Sales

• Office: Wilks Development acquired One Ridgmar Centre, a 178K SF office tower in Fort Worth, TX with plans to invest up to $9mm over the next 5 years

• Multifamily: A JV between Joyland Group and Prospect Development acquired a site at 133 Kent Ave in New York from L3 Capital for $48mm to develop a 6-story, 43-unit condo building. The deal was financed by S3 Capital with a $85mm loan

• Industrial: IDEC Corp., a manufacturer, acquires a 233K SF industrial flex building in Carlsbad, CA from Hill Cos. for $50mm

• Office: Wells Fargo to sell its 409K SF San Francisco office and focus on the East Coast. Eastdil Secured was hired as an advisor on the sale

Debt

• Office: SL Green secures a $1.3bn loan extension on One Madison Ave in Manhattan. The loan extends the maturity through November 2027 with an interest rate of SOFR+3.10%

• Industrial: A JV between Related Fund Management, Onyx Equities and Russo Development lands a $135mm construction loan from Ares Commercial Real Estate for a 584K development pre-leased to RealCold

• Multifamily: Spinnaker Pointe Apartments secures $18mm for a 540-unit portfolio in San Francisco, CA. The deal was funded with a two 5-year loans, with 30-year amortization, mid-5% rate, and no recourse

Developments

• Industrial: A JV between Ryan Cos. US Inc., Namdar Realty Group, and Mason Asset Management will begin construction on a 160K SF industrial asset in Chicago, IL Delivery is expected August 2025

• Industrial: A JV between Realterm and Titan Development will build a 440K SF in Laredo, TX

Distress

• Office: A Pre-foreclosure lawsuit was filed on Tuesday against RXR for the Helmsley Building in New York following its default on the $670mm loan the year prior

• Hospitality: Blackstone’s 4-Hotel, 1,228-bed Portfolio hit with foreclosure. The company acquired the hotels for $283mm in 2016 with $275mm in senior debt and $61mm in a mezz loan

• Office: RFR facing foreclosure following failing to pay off the $180mm loan on its 42-story office tower in Battery Park City (New York)

• Office: Rising Realty Partners surrenders Civic Center Plaza, a 22-story office tower in Denver, CO, to its lender Heitman Capital. The company had spent nearly $125mm in the acquisition

Capital Raising

• Multifamily: Aion Partners announces $1bn JV partnership with Goldman to acquire value-add multifamily assets

Leasing

• Industrial: Power Systems signs a 10-year lease at Foundry Commercial’s 185K SF South Florida Gateway Distribution Center in Stuart, FL

• Office: Family-owned distiller William Grant & Sons leased 27K SF at 902 Broadway in New York

Meme Summary

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