Hello to my handful of subscribers!

Foreclosures continue to plague the CRE world with Nightingale and American Landmark Properties both facing foreclosures on office assets. Industrial is still king with national vacancy reaching 4.4% and Prologis committing $500mm to its U.S. and E.U. funds. China Logistics Group continues its diligence of GLP’s portfolio in China, as they review $7bn in assets to attempt to strike a deal. Kimco scoops up RPT in a strategic purchase aimed at increasing its grocery-anchored portfolio. Home prices continue to rise while new construction for multifamily units drops. In the search for recession-proof investments, investors have turned to student housing once again. Caution is in the market as rates continue to rise, fear of housing bubble gains traction, and consumer spending patterns trend in the wrong direction.

If you are a follower and like this newsletter then please share with work friends and any other CRE professionals. If you have feedback then feel free to fill out the feedback form or slide into the DMs on Instagram (@propmemo_ra)

Interested in sponsoring? Then get in touch with us

Capital Markets

Market News

• All 3 major indices on pace for losses in August with various labor stats, GDP, and home sales data due this week (CNBC)

• Regulators force regional banks to issue debt (CNBC)

• Employers could offer workers up to $5,250 tax free as part of educational assistance benefits (CNN)

• Americans are spending less on retail and more on travel and leisure (CNN)

• Chinese steel prices could drop as demand decreases due to decline in housing sales (Bloomberg)

• U.S. job openings and resignations drop to lowest level in 2.5 years (Reuters)

• Economist David Rosenberg warns of further rate hikes, housing bubble, credit-card delinquency, and numerous other reasons to be bearish on the current market (Yahoo)

CRE Headlines

• The President of The National Association of Realtors resigns amid sexual harassment allegations (CNN)

• GLP offers state-backed China Logistics Group $7bn in assets, as due diligence for a potential deal (Bloomberg)

• Industrial real estate remains resilient with national vacancy at 4.4%, and in-place rents at an average of $7.39psf (REJournals)

• Chinese steel prices could drop as demand decreases due to decline in housing sales (Bloomberg)

• Dave Ramsey warns of the dangers of ARMs in a rising interest rate environment after survey from Rocket Mortgage shows 40% of Americans considering adjustable rate mortages (Yahoo)

• Goldman estimates vacant office space will increase by 267mm square feet in next decade (Yahoo)

• Chicago lead the nation in year-over-year home price gains in June with 4.2%, followed by Cleveland and New York (Morningstar)

• Multifamily permits down 32% from 2022 (GlobeSt)

• Investors target student housing as rent growth outpaces apartments (Bisnow)

• Zillow Co-Founder says we’re likely at the peak of mortgage rates (CNBC)

Deals Deals Deals

Sales

• Kimco (NYSE: KIM) buys RPT in stock deal valued at $2bn, expected to close in 2024 (KIM)

• QIA buys Park Lane Hotel for $623mm in NYC (ConnectCRE)

• Atlas Capital Group buys 51% interest in struggling multifamily portfolio from Blackstone for $142mm, with $90mm in mezz debt (TheRealDeal)

• JV between Dakota Pacific Real Estate and Landmark Companies sells 227-unit, mid-rise multifamily asset for $75mm in Edina, MN (REJournals)

• Loyola University buys $35mm 58-unit mixed-use student housing building in Chicago (Bisnow)

• Prologis (NYSE:PLD) buys 240k sf industrial asset in Bolingbrook, IL for $23mm (REJournals)

Debt

• Carmel Partners obtains $360mm in construction financing for redevelopment of Wardman Park Hotel in Washington D.C. (Bisnow)

• Penn-Florida Companies. secured $303mm loan from Madison Realty Capital for development of Mandarin Oriental Hotel in Boca Raton, FL (Bisnow)

Developments

• 5 World Trade Center in New York approved by Governor. Tower will be a mixed-use development with both office and 1,200 residential units (Urbanize)

• Blackstone, Hudson Pacific, and Vornado to build $350mm studio project in Manhattan (Bisnow)

• Wildhorn Capital to develop 2,000-units in Austin (bizjournals)

• Clear Blue Company begins construction of a $65mm, 238-unit, affordable housing community in East Nashville, TN (REJournals)

• TWG begins construction of Reserve at Spencer, a $43mm affordable housing project in St. Peteres, MO (REJournals)

• Sterling Bay closes on industrial site in Chicago Suburbs, plans to build 148k sf industrial asset (Urbanize)

• Renovation of Pershing Square in L.A. kicks off (Urbanize)

Distress

• Capstone Equities forecloses on Nightingale Properties’ 500k sf office building in Brooklyn, NY (TheRealDeal)

• American Landmark Properties defaults on $96mm mortgage for 890k sf suburban Chicago office asset (TheRealDeal)

Capital Raising

• Prologis (NYSE:PLD) commits $500mm to U.S. & E.U. funds (Prologis)

Leasing

• Relativity, a Chicago-based legal tech company, to stay at 231 S. LaSalle in Chicago and design new HQ offices in what is to be largest lease in the submarket this year (REJournals)

• CDW offering 200k sf of office for sublease in Chicago suburbs (Crains)

• Harbinger Motors leases 165k sf in manufacturing and distribution facility in Grove, CA (Bisnow)

Meme Summary