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Office preleasing activity is being driven by finance, insurance, and real estate tenants, L.A. ports expecting a drop in activity thanks to the current trade war, Virginia’s governor punts on a data center reform bill, and stocks rally after Treasury Secretary announces trade talks in progress with Japan.

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Capital Markets

Headlines

• Virginia Governor Punts On Data Center Reform Bill

  Youngkin rejected legislation passed by the commonwealth’s General Assembly earlier this year that would have required data center developers to perform site studies and disclose a range of environmental impacts to local authorities before projects could be approved. Youngkin sent the bill back to lawmakers with a recommendation that it not go into effect unless it is reenacted by next year’s General Assembly, once he is out of office.

• Finance, Insurance, and Real Estate Tenants Dominate Preleasing Activity

  According to Colliers, across 14 markets 53% of the office construction pipeline is pre-leased. Of 10.4mm sq.ft. under development, finance, insurance, and real estate tenants make up 61% of the preleasing activity

• Los Angeles Ports Expecting A 10% Drop In Cargo

  The Los Angeles and Long Beach port complex, which handles about a third of the nation’s container shipments, expect to see a 10% drop in cargo thanks to the ongoing tariff war. The ports saw an uptick in cargo volumes in anticipation of the tariffs at the end of 2024

• Stocks Rally On Hopes Of Talks With Japan, China

  Treasury Secretary Scott Bessent triggered a rally on Tuesday morning after announcing the start of bilateral trade talks with Japan. The news alleviated fears that the White House wasn't prepared to cut deals on tariffs, after trade adviser Peter Navarro's comment to the Financial Times that Trump's tariffs were "not a negotiation."

Deals Deals Deals

Sales

• Office: Easterly Government Properties acquired an office building in D.C.’s NoMa neighborhood for $119mm from Principal Financial Group

• Multifamily: Famh Group acquired the BW, a 78-unit apartment complex in the Brentwood neighborhood in Los Angeles, CA for $58mm from California Landmark Group 

• Office: Braun Enterprises acquired 3040 Post Oak Blvd., a 426K SF office building in Houston, TX from MetLife Real Estate Investment

• Office: Rivington Company acquired 185 Marcy Avenue, an 81K SF partially vacant office building in Williamsburg, NY, for $29mm from One William Street Capital Management. Rivington plans to convert the top three floors into residential space

• Retail: Fidelity Investments acquires Independence Square, a 140K SF shopping center in Plano, TX from Head Capital Partners

• Retail: Gazit Horizons paid $34mm to acquire Galt Ocean Marketplace, a 106K SF a grocery-anchored shopping center in Fort Lauderdale, FL

Debt

• Industrial: Ares Industrial Real Estate Income Trust secured $564mm CMBS SASB loan to refinance a 37-property, 7.4mm SF industrial portfolio. Morgan Stanley, Deutsche Bank and Goldman Sachs originated the five-year, floating-rate CMBS loan

• Multifamily: A JV between Sioni Group and AB & Sons secured $275mm in construction financing to build a 72-story, 311-unit multifamily and condo development at 986 Sixth Avenue in Midtown, New York. Affinius Capital and InterVest Capital Partners provided the loan

• Multifamily: A JV between Blue Vista and Cabot, Cabot & Forbes secured $212mm debt package to refinance the Overlook at St. Gabriels, a Boston, MA 555-unit multifamily asset. Affinius Capital and Kennedy Wilson provided the senior loan while Siguler Guff & Company supplied mezzanine debt

• Industrial: Arden Logistics Parks secured a $99mm floating-rate refi loan form an Ares Management Real Estate fund for five multi-tenant industrial parks in three states with a total of 11 buildings spanning over 765K SF

Developments

• Data Centers: Diode Ventures received approvals by local officials for a 620-acre data center campus outside Boise, ID

• Data Centers: Red Wolf DCD Properties LLC filed plans to build a 400-acre, 600MW data center campus outside Kansas City, KS

• Data Centers: Oppidan filed to develop a 5 MW data center in Temple, TX

• Multifamily: Advenir Azora break grounds on first 4 built-to-rent projects under $3bn U.S. housing platform

• Industrial: DSV to start work on a 905K SF distribution center in Laredo, TX. The city offered a $1.25mm tax rebate over eight years

• Industrial: Creation Equity to build MC820 Logistics, a three-building 451K SF industrial park in Fort Worth, TX

Capital Raising

• Data Centers: PGIM Real Estate has completed the fundraise for its first Global Data Center Fund with $2bn of capital allocated to the strategy. The Fund has a build-fill-sell investment strategy focused on the low latency hyperscale segment of the global data center sector, targeting opportunistic investment returns

Meme Summary

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