Good Morning!

RXR and Ares have combined to launch a $1B distressed office fund, an Atlanta-based firm has $200M for distressed opportunities in the southeast, and a healthcare REIT is looking to go public. Hedge funds have a record year in 2023, Cal State faculty get a wage increase after a walkout, a popular gaming company to layoff 11% of staff, and a new proposed bill would make it a felony to invest taxpayer money into ESG funds

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!

Interested in advertising? Then get in touch with us

Capital Markets

Market News

• Hedge Funds Have Record Year In 2023

  The 20 leading fund managers made $67B in profits in 2023, up from the $65B during 2021. The top funds accounted for roughly one-third of annual profits in 2023, despite managing less than 19% of the industry’s assets

• Cal State Faculty Return to Work After One-Day Strike

  After 30,000 faculty members walked out on Monday, California State University came to an agreement with California Faculty Association. and will see members return to work on Tuesday. The agreement will see faculty have a 5% pay raise, followed by another 5% pay raise on July 1st. The minimum wage will also be increased for the lowest-paid faculty

• Riot Games Cutting 11% of Global Staff

  The video game developer behind games like “League of Legends” and “Valorant” is cutting roughly 530 jobs due to spiraling costs and failed gambles on new sources of growth. The company plans to focus on its “core” games

• New Hampshire Bill Could Make Knowingly Investing in ESG Funds A Felony

  A bill introduced by New Hampshire legislators would make it a felony to "knowingly" invest state or taxpayer funds using ESG criteria that violates what legislators define as fiduciary duty. According to legislators the state’s retirement system should be seeking the highest return on investment for the state’s taxpayers and retirees and not using ESG criteria. The proposed bill’s prohibited interests include limiting investments or divesting from gun manufacturers, reducing or disclosing greenhouse gas emissions and providing "access to abortion, sex or gender change or transgender surgery."

CRE Headlines

• American Healthcare REIT Seeking $700M IPO

  The private REIT focused on senior housing and assisted living is looking to raise $700M for an IPO. The REIT is internally managed and would use proceeds to pay down debt and fund new acquisitions. The REIT is working with Bank of America, Citigroup, Morgan Stanley, and KeyBanc Capital Markets to go public

• RXR and Ares Launching A $1B Distressed Office Fund

  RXR and Ares have combined to seed the fund with $500M and are seeking an additional $500M from investors. The fund is already in talks to acquire $1B of office loans from banks at a discount

• ANiMAL Has A $200M Budget For Distressed Assets

  An Atlanta-based investment firm has $200M to invest in opportunistic investments across the southeast. The firm is seeking high-density urban infill locations with value-add potential and development upside

Deals Deals Deals

Sales

• Retail: Kering acquiring 717 Fifth Ave retail space in New York, NY for $963M from Wharton Properties

• Hospitality: Henderson Park to acquire Blackstone’s Biltmore Hotel in Phoenix, AZ for $705M. Blackstone acquired the hotel nearly six years ago from GIC for $400M and spent over $150M in renovations

• Multifamily: Elan West End, a 164-unit, newly built multifamily community in Minneapolis, MN, trades for $53M. The asset was financed with a $26M loan from a life company. Buyer and seller were undisclosed

• Office: Mission Companies acquires a 117K sf office asset in Houston, TX. The asset was 74% leased and financed via a CMBS loan

Debt

• Industrial: Stoltz Real Estate Partners secures a $102M loan from PCCP LLC to acquire a five-property, 1.6M sf industrial portfolio across the Atlanta, Charleston, Charlotte, Louisville and Nashville MSAs. The portfolio had a 4.6 year WALT

• Multifamily: Bela Flor Communities obtains a $66M bridge loan from MF1 Capital for a 212-unit BTR community in Mesa, AZ. The 65% LTC, 24-month term loan has no recourse, is full-term interest-only, and has three extension options

• Hospitality: Ohana Real Estate Investors has secured a $59M senior loan facility from Slate Asset Management to refinance a The Tillary Hotel in Brooklyn, NY

Developments

• Industrial: A partnership between Cummins’ EV division, Daimler Trucks & Buses, and PACCAR announced plans to build a $1.9B battery plant to manufacture lithium-iron-phosphate batteries for commercial electric trucks. The plant will be in Marshall County, MS on the border with Memphis, TN

• Data Centers: American Real Estate Partners and Harrison Street, announced plans for a 900K SF, 65MW powered shell data center campus in Reno, NV

• Hospitality: Development Ventures Group Inc., Mainsail Lodging & Development and Trilith Development open Trilith Guesthouse, a 193-key hotel outside of Atlanta, GA

• Multifamily: American Housing releases plans for three affordable housing properties in Washington D.C. The announcement comes as the Amazon Housing Equity Fund announced they will provide $27M in below-prevailing-rate financing to assist the $100M preservation project

• Industrial: Bridge Industrial acquired a 22-acre site in suburban Chicago, IL and plans build two spec industrial facilities totaling 292K sf

Distress

• Office: Brookfield Properties’ $148M CMBS loan tied to One Pierrepont Plaza, a 192K sf office asset in Brooklyn, NY, went to special servicing after Brookfield failed to pay it off

• Multifamily: Greystar facing foreclosure on its $127M loan from Ares Commercial Real Estate tied the Gabriella apartments in Dallas, TX. A jury had recently awarded $860M to the family of a woman who died during the collapse of construction crane at the asset in 2019

• Multifamily: Realm and Bascom Group default on a $33M loan tied to a planned 36-story, 422-unit apartment tower development in Los Angeles, CA. Terracotta Group provided the loan in 2021

• Retail: Elysee Investment acquires Time Century Jewelry Center Metro Mall, a 225K sf retail asset in Miami, FL, for $28M just before a scheduled foreclosure auction

Leasing

• Industrial: Little Buddy Toys signs a 95K sf lease a The Bradmore Group’s 270 East Palais Rd distribution center in Anaheim, CA

• Office: Mesirow, a financial services firm, signs a 10-year lease extension at Heitman and Tishman Speyer’s 1.2M sf 353 N Clark. The lease saw a reduction from its previous 165K sf footprint

Meme Summary

Interested in advertising? Then get in touch with us