Good Morning!

The construction industry is short on workers, to the tune of nearly half a million. California pushes forward a massive aid package, CRE outstanding debt increased by $48bn in Q3, and over 35% GSA leases are on the chopping block over the next 4 years.

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Capital Markets

Headlines

• Construction Industry Needs 439,000 Workers in 2025

  Estimates from Associated Builders and Contractors indicate the construction industry will need to add 439,000 workers to keep up with demand

• Over 35% of GSA Space Will Have Termination Rights Over Next 4 Years

  Over 53mm SF or 35.50% of all GSA-leased space across 2,532 properties has the option to terminate in the next 4 years, representing $1.87bn of total annual GSA-paid rent

• California Approves $2.5bn Aid Package

  On Thursday, a $2.5bn fire relief package was approved by the California Legislature. As part of the approval, $4mm was awarded for local governments to streamline approvals for rebuilding homes

• Commercial and Multifamily Debt Increased by $48bn in Q3 2024

  The Mortgage Bankers Association’s latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report revealed outstanding debt increased by $47.7 billion, or 1%, in Q3 2024. Every major capital source increased its holdings of mortgages

Deals Deals Deals

Sales

• Office: AT&T executed a $850mm sale-leaseback with Reign Capital for its 74 central office facilities that house its legacy copper networks. AT&T is only leasing back space required for its network operations

• Office: The Wideman Co. acquired the 530K SF Citigroup Office Campus in Jacksonville, FL, a 73-acre office park, from Citigroup. Citigroup will continue to lease 230K SF with the remaining space to be marketed

• Multifamily: Pacific Urban Investors acquires a 188-unit multifamily building in Williamsburg in New York for $128mm from UDR

• Multifamily: Fairfield acquires a 321-unit multifamily property in Redmond, WA

• Multifamily: DVO Real Estate acquired Sweetwater at Buckingham, a 312-uit apartment community in Richardson, TX from REM Finance

• Retail: Apple acquires its Boylston Street store in Boston, MA for $88mm from Tribeca Holdings. The property last traded for $28mm

• Industrial: Basis Industrial acquires a 473K SF flex industrial portfolio made up of 18 buildings for $72mm

• Multifamily: Standard Real Estate, Arrow Street Development, and Belay Investment Group dispose of a 244-unit luxury multifamily building in Indianapolis. IN. The buyer and price were undisclosed

• Hospitality: TPI Hospitality disposed of a 225-key two-hotel portfolio in Rochester, MN. Terratron acquired a dual branded Homewood Suites by Hilton and Courtyard by Marriott for $30mm, while Second Street Hotel Group LLC and Empire Hotels acquired a Springhill Suites by Mariott for $8mm

• Retail: Younger Partners Investments acquired Longview Towne Crossing, a 151K SF shopping center in Longview, TX from Weber & Co

• Multifamily: Shore Drive Apartments, a 71-unit multifamily community in Winthrop, MA, trade for $11mm. Buyer and seller were undisclosed

Debt

• Multifamily: DSF Group secures a $166mm loan for the acquisition of Town Square Mark Center, a 678-unit in Alexandria, VA

• Multifamily: NuVerse Advisors LLC and Sunlight Development secured a $99mm construction loan to convert The Emmet Building, a 17-story office building at 95 Madison Ave. in New York City, to 65 residential condos across 108K SF, with the remaining 20K SF to be used for retail. BHI is the senior lender in the financing

• Multifamily: A Life Company provided a 10-year, fixed-rate $23mm loan, with no recourse terms and 30-year amortization to refinance Mission Hills Apartments in Vancouver, WA

Developments

• Mixed-Use: Hensler Development Group, Stiles Corp, and PGIM Real Estate to build a 354-unit multifamily tower in downtown Nashville, TN. The asset will also have a 6-story 250K SF office building and 50K SF of retail

• Student Housing: Mortenson Development, Northwestern Mutual Real Estate, and PeakMade Real Estate broke ground on Theory Madison, a 717-bed student housing development near the University of Wisconsin-Madison campus

• Multifamily: Dominium seeking to redevelop 44 acres of the Raleigh Golf Association Golf course into 350 to 500 affordable townhomes

• Multifamily: Phoenix Property Co to develop a 342-unit $57mm multifamily building in San Antonio, TX’s La Cantera Town Center.

Capital Raising

• Industrial: BKM Capital Partners provided StepStone Real Estate a $154mm recapitalization of Pacific Business Center, a 10-building 749K SF industrial project in Las Vegas, NV

Leasing

• Industrial: Scannell Properties secures a 691K SF lease with a packaging manufacturer for Legacy Park East in Rock Hill, SC

• Office: Hobbs Brook Real Estate secures a 152K SF lease with Commonwealth Financial Network for its 300K SF office at 275 Wyman Street in Waltham, MA

Meme Summary

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