Good Morning and Happy Friday!

Jobs report is out with a spike in jobs in November following October. Unemployment crept up in both the U.S. and Canada, multifamily rents drop in November, Goldman exits coalition for climate change, office fundamentals look to be getting better despite an increase in distressed assets

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Capital Markets

Headlines

• Jobs Report Shows 227K Jobs Created in November

  Nonfarm payrolls increased by 227K in November up from 36K in October. The overall trend has been downward since early 2022. Unemployment crept up to 4.2%, the broader measure showing discouraged workers and part-time jobs rose to 7.8%

• Multifamily Asking Rents Drop in November

  Rents were cut by 0.4% in November, the change was in line with prior years as winter months tend to soften asking rents in the multifamily sector. Most rent growth takes place in the spring and summer months

• Goldman Exits Global Climate Coalition For Banks

  Goldman has quit a coalition aimed at aligning bank lending and investment activities with efforts to fight climate change

• Canada Jobless Rate Jumps to 6.8%

  Canada’s jobless rate hit a near 8-year high. The increase has bolstered predictions of 50bps rate cut from Canada’s Central Bank

• CRE Distress Rate Rises

  CRED IQ research shows overall distress in the CRE loans rose in November with the office sector rising to 15.5%, a 70bps increase over October. Multifamily and retail follow closely behind

  

• Office Market Stabilizing

  A survey from CBRE indicates office users may be looking to increase their office footprint. Absorption has turned positive in some major markets and leasing activity has increased in 2024 with the average lease size growing from 10K SF to ~30K SF

Deals Deals Deals

Sales

• Multifamily: Essex Property Trust acquired a 344-unit community in Seattle, WA for $136mm from MG Properties

• SFR: Berman Enterprises acquires a 97-unit single-family rental community in Laurel, MD for $54mm from Couloir Ventures 

• Multifamily: Harvest Equities acquires a 680-unit asset in San Antonio, TX from MC Cos.

• Multifamily: AHV Communities acquires a 330-unit luxury multifamily asset in San Antonio, TX

• Multifamily: Equity Residential acquires a 227-unit Class A apartment community in Highlands Ranch, CO from Century Living

• Industrial: Foxfield acquires a 169K SF industrial facility in Duluth, GA via sale-leaseback. The seller executed a 6-year, NNN lease at closing

Debt

• Diversified: Brookfield Asset Management acquires $925mm of CRE loans from Valley National Bank 

• Senior Housing: A JV between Harbert South Bay Partners, LAMB Properties, P3 Foundation and Momentum Senior Living obtained $473mm in tax exempt and taxable bond financing with a 35-year term to build a 350-bed senior housing project in Irvine, TX

• Multifamily: Greystone completes a $160mm Series A bond offering on the Tel Aviv Stock Exchange. The proceeds will be used for new bridge loans within its Senior Debt Fund

• Multifamily: One Real Estate Investment secures a $47mm construction loan for a 360-unit multifamily asset in Millington, TN. City National Bank provided a 4-year, floating-rate loan

• Multifamily: RB Realty secures a $27mm mezz loan from Pearlmark for a 186-unit multifamily building with 87K SF of retail in Queens, NY

Developments

• Data Centers: Meta to build a $10bn, 4mm SF data center campus outside Richmond, VA

• Mixed-Use: RXR Realty breaks ground on its 1,100-acre mixed-use project in Apex, NC . The $3bn project will include 1,500 multifamily units, 1,100 single-family homes, 150K SF of retail, 213K SF of industrial space, and a 340K SF college campus

• Industrial: Premier Design + Build Group begin construction on two industrial facilities totaling 225K SF in Irvine, CA

• Student Housing: LV Collective and Harrison Street set to build a 1,009-bed luxury student housing asset in Ann Arbor, MI

Meme Summary

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