Happy Friday!

Hoping everyone out in L.A. is staying safe. Payrolls in December blew past estimates, Macy’s and Kohl’s announce multiple store closures to start the year, Office REITs had some healthy returns in 2024, and a large amount of commercial real estate is at risk as the fires in L.A. continue to expand

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Capital Markets

Headlines

• U.S. Payrolls Rise by 256,000 in December

  Nonfarm payrolls were expected to grow by 155,000 in December, unemployment dropped to 4.1%

• Macy’s to Close 66 Stores in 2025

  Macy’s plans to close 66 stores in 2025, with liquidation sales to start in January. The retailer plans to lean into its high-end brands

• Kohl’s To Close 27 Stores by April 2025

  Kohl’s announced plans to close 27 underperforming stores, with California making up 10 of the 27

• Office REITs Outperforming Private Investment

  Office REITs yielded a total return of 21.5% in 2024 and averaged a 86.3% occupancy at the end of Q3 2024. This is contrast to the broader office sector, largely due to REITs owning newer, high-amenity, well-located properties

• Properties Backing $1.3bn in CMBS in L.A. Evacuation Zones

  Around $1.8bn in commercial real estate backing $1.3bn are within the evacuation areas of Los Angeles. Trepp identified 152 commercial properties, mostly multifamily, in the evacuation path

Deals Deals Deals

Sales

• Office: RXR acquires a 49% stake in Ivanhoe Cambridge’s 1211 Avenue of the Americas, a New York office asset now valued at $1.2bn

• Multifamily: Hines acquires a two-building, 356-unit multifamily community in Evanston, IL for $148mm from Northwestern Mutual

• Retail: Kimco acquires a 254K SF shopping center in Jacksonville, FL for $108mm from Big V Property Group. The property last traded in 2021 for $93mm

• Industrial: Miramar Capital acquires a three-building 333K SF industrial park in Jurupa Valley, CA for $86mm from PreZero

• Multifamily: Kushner Cos. sells a four-building New Jersey multifamily portfolio for $80mm

• Multifamily: Tower 16 Capital Partners acquired Yardly McDowell, a 167-unit multifamily property in Phoenix, AZ for $47mm

• Retail: KPR Centers acquired Eagle Plaza, a 230K SF shopping center in Voorhees Township, NJ for $42mm from an undisclosed seller

• Multifamily: Spyglass Capital Partners acquires a 480-unit apartment complex in Brooklyn Park, MN from The Doran Group. The deal was financed through Fannie Mae

• Self Storage: SmartStop Self Storage REIT acquired a two-property portfolio in Clifton and Hillside, NJ, totaling 228K SF from RXR Realty

• Multifamily: Beal Properties acquired a 94-unit multifamily high-rise in Chicago, IL for $27mm from Ravinia Capital Group

• Industrial: MDH Partners acquires a 70K SF industrial asset in Laredo, TX

Debt

• Self Storage: KKR secures a 5-year $185mm bridge loan from Blackstone to refi its self-storage portfolio

• Industrial: SkyREM secured a $170mm financing for 10-building, 2.5mm SF warehouse and distribution portfolio across 7 states. Apollo provided a five-year, fixed-rate loan

• Industrial: North Palisade Partners secures a $65mm construction loan from Affinius Capital to develop an industrial asset outside Los Angeles, CA

Developments

• Data Centers: A JV between Provident Data Centers and PowerHouse Data Centers are set to develop a 768 acre, 1.8 gigawatt campus in Grand Prairie, TX

• Industrial: Prologis exploring redevelopment options for its $120mm ExxonMobil site in New York’s Greenpoint

• Medical Office: Cincinnati Children’s Hospital to expand is Liberty Campus with a $365mm expansion that will include a new 150K SF medical office building, and a four-story hospital with 72 beds and various specialty rooms

• Industrial: Stotan Industrial to develop three warehouses totaling 933K SF in Laredo, TX. Stotan acquired 70 acres and the project is expected to cost $100mm to develop

• Industrial: Alliance Industrial Co. plans to develop two buildings on 67 acres outside of Atlanta, GA. The two buildings will measure 114K SF and 427K SF

• Industrial: Investment & Development Ventures and Standard Real Estate broke ground on Patriot Business Park, a three-building 463K SF industrial campus outside of Houston, TX. Delivery is expected in Q3 2025

Meme Summary

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