Morning!

The market sell-off continues, Wells Fargo sues JPM over a defaulted CRE loan, OpenAI signs a major deal with CoreWeave ahead of its IPO, medical outpatient centers seeing healthy growth, and Rocket to acquire Redfin for $1.75bn

If you enjoy the newsletter, then help us out by sharing with friends and colleagues. Click the referral link below to share the newsletter, hit milestones, get rewards!

Capital Markets

Headlines

• Wells Fargo Sues JPMorgan Over $481mm CRE Loan

  Wells Fargo sued JPMorgan Chase on Monday to recover losses for investors in a $481mm commercial real estate loan made to Chetrit Group in 2019 to acquire a $522mm portfolio of 43 multifamily assets consisting of 8,671 units across the U.S. Wells Fargo alleges that JPMorgan and Chetrit learned the seller had inflated NOI prior to acquisition. The borrower defaulted on the loan in 2022

• Rocket Companies To Acquire Redfin For $1.75bn

  Rocket Companies announced it would acquire real estate listing platform, Redfin, in an all-stock deal valued at $1.75bn, seeking to boost its lending business. The deal is expected to close by Q3

• OpenAI Signs 5-Year $12bn Deal With CoreWeave

  CoreWeave, a provider of data centers, signed a five-year deal with OpenAI worth ~$12bn. As part of the deal, OpenAI will receive a stake in CoreWeave worth about $350mm, ahead of its IPO

• Medical Outpatient Buildings Experiencing Growth

  Absorption for medical outpatient buildings accelerated in Q4 2024, reaching 19mm sq.ft. for the top 100 markets, a 15% increase from the previous year

  Medical Outpatient Buildings (New Supply, Absorption, Occupancy)

  

Deals Deals Deals

Sales

• Multifamily: Bender Companies acquires Haven Hoffman, a 550-unit garden-style community located in Hoffman Estates, IL, for $77mm from Tricap Residential Group and Wolcott Group

• Multifamily: Bridge Investment Group acquired Bridges at Crosstown, a 344-unit community in Tampa, FL, for $76mm from Starwood Capital Group

• Multifamily: Bridge Investment Group acquired The Mirage on Kernan, a 361-unit property in South Jacksonville, FL, for $70mm from Element Property Company

• Multifamily: FPA Multifamily acquired Cascade at Town Center, a 204-unit multifamily community in Eden Prairie, MN, from a JV between Harbert Management and Magellan Investment Partners

• Multifamily: Confluence Cos. acquired West 8th, a 99-unit multifamily property in Golden, CO, from MIG Real Estate for $48mm

• Medical Office (Updates): Hammes Partners acquires Tosa Health Center, a 101K SF medical office building in Wauwatosa, WI, [for $53mm from Montecito Medical Real Estate]. The asset was fully leased to the Medical College of Wisconsin. [CIBC Bank provided a $29 million acquisition loan]

• Office: City Realty Group acquired 313 Washington St, an 81K SF office and retail building in Newton, MA, from City Realty Group

• Industrial: Leon Industrial acquired a 120K SF industrial property in Rock Hill, SC for $12mm from Graham Capital

Debt

• Industrial: Zenith IOS and institutional investors advised by J.P. Morgan Asset Management closed a $120mm refinance with Washington Capital Management for two regional industrial outdoor storage portfolios totaling 30 assets across the U.S.

• Multifamily: Up Campus Student Living secured $87mm in construction financing from CIBC Bank USA along with Trustmark and Republic Bank, for the development of Leo Tallahassee, a 277-unit, 782-bed luxury student housing project in Tallahassee, FL

• Multifamily: Linc Housing was awarded up to $79mm in bonds from the Housing Authority of the City of Los Angeles toward the building of 17100 Victory Boulevard, a 194-unit affordable complex in Lake Balboa, CA

• Multifamily: Adam Neumann’s Flow secured a $51mm loan from Ladder Capital to acquire a 16-acre site in Miami, FL zoned for 2,380 housing units. The site is being acquired for $71mm

Developments

• Multifamily: Park Tower Group filed plans to add three buildings consisting of 1,025 units to its 11-building Greenpoint Landing residential development in New York’s Greenpoint

• Multifamily: High Street Residential broke ground on The Henley, a 370-unit multifamily development in Apex, NC

• Multifamily: P3 Foundation breaks ground on The James of Irvine, a 350-unit luxury senior living community in Orange County, CA

• Multifamily: Atlanta Housing and its public-private partners broke ground on Bowen Homes Phase I, a $63mm 151-unit redevelopment project in Atlanta, GA

• Multifamily: Porter Kyle, broke ground on The Wayne, a $60mm 100-unit multifamily Build-to-Rent project in Chandler, AZ

Distress

• Office: RG Real Estate acquired TownPark Commons, a 350K SF four-building office campus in Kennesaw, GA, for $42mm. Special servicer KeyBank National Association facilitated the sale on behalf of a trust. TownPark Commons was part of Adventus Realty Services’ portfolio, tied to a $350mm commercial mortgage that had been securitized. The trust representing the loan’s investors foreclosed on the properties in December

Meme Summary

Interested in advertising? Then get in touch with us