Good Morning!

CPI came in mostly in-line with expectations today, Starwood announced a SPAC deal, Choice Hotels abandons its $8B offer for Wyndham, appraisers are between a rock and a tight place when it comes to valuations in 2024, Biden calls for tax credits for first-time homebuyers, and Airbnb bans security cameras indoors

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Capital Markets

Headlines

• CPI Comes In At 0.4% For February

  Federal Reserve will most likely wait until summer before any rate cuts following CPI increasing 0.4% in February and 3.2% year-over-year. Food and energy prices pushed prices up. Core CPI on a monthly and annual basis came in 0.1% above expectations

• Biden Calls For $10K First-Time Home Buyer Tax Credit

  The President is pushing for legislation offering middle-class families a one-year, up to $10,000 tax credit if they sell their starter house valued below the county median. Other proposed initiatives include $25,000 in down payment assistance for first-generation home buyers, eliminating mortgage insurance on federally-backed mortgages, and legislation to encourage building and renovation of the housing supply

• AirBnb Bans Use Of Indoor Security Cameras

  Airbnb previously allowed indoor security cameras in common areas like hallways and living rooms, but only if they were disclosed on the property listing and were clearly visible. The ban was made to prioritize privacy

• Appraisers At Center Of Market Pricing

  Appraisers face challenges in setting new valuations as they rely on lagging historical data and can influence values greatly as a very pessimistic or optimistic outlook can greatly impact appraisal values used for loans, tax appeals, and reporting purposes

• Choice Hotels Abandons $8B Deal To Acquire Wyndham

  Choice Hotels announced it was abandoning its $8B hostile takeover bid for Wyndham Hotels & Resorts that was made public five months ago. Prior to the offer being made public, Wyndham had rejected four offers from Choice

• Starwood To Take Hotels Public Via SPAC Merger

  Starwood Capital Group announced plans to take 1 Hotels properties in Manhattan and Brooklyn, and the De Vere Portfolio in the United Kingdom public via a business combination with Jaws Mustang Acquisition Corp (NYSEA: JWSM), a special purpose acquisition company ("Jaws")

Deals Deals Deals

Sales

• Industrial: Equus Capital Partners acquired a 1.4M sf, nine-building, industrial portfolio near Charlotte, NC and Greensboro, NC for $124M from Investcorp

• Multifamily: H&R Real Estate Investment Trust acquired a 75% interest in a residential development in Brooklyn, NY from All Year Management for $77M

• Land: United Construction & Development Group has acquired a development site in New York, NY’s Long Island City, located at 42-50 24th Street, from Fisher Bros. for $57M

• Retail: Stiles Corporation acquired Shopper’s Haven, a 216K sf strip mall in Pompano Beach, FL, for $28M from Partridge Equity Group. The asset sold for $22M less than its 2016 sale price

Debt

• Office: Empire State Realty announces new credit facility of $715M consisting of a $620M revolver and a $95M term loan facility

• Multifamily/Office: Oak Row Equities secured a $181M construction loan from Bank OZK for a 41-story office and residential tower in Miami, FL’s Edgewater neighborhood

• Multifamily/Office: RXR secures $118M from Starwood to refinance an office asset in Brooklyn, NY and a multifamily asset in New Rochelle, NY

• Multifamily: Ytech secured $104M in financing for the Residences at 1428 Brickell, a 189-unit luxury residential development in Miami, FL. Linkvest Capital provided $78M in refinancing of a first mortgage and Banesco contributed an additional $26M in first mortgages

• Multifamily: Horizon Realty Partners secured a five-year $81M to refinance a 536-unit multifamily housing community in Eugene, OR

Developments

• Data Centers: A 181-acre data center campus linked to Google gets approval to be developed in Bristow, VA

• Multifamily: Woodmont Properties and Canoe Brook Development have broken ground on 199-unit rental community in Randolph, NJ

• Medical Office: Hackensack Meridian Health breaks ground on a $200M, 60K sf health and wellness center in Woodbridge, NJ

• Multifamily: Bozzuto begins preleasing of apartments at Alder, a 165-unit residential development over a 67K sf Stop & Shop in Boston, MA

Capital Raising

• Medical Office: AXSYS Capital closed on AXSYS Capital Fund I, LP. A spokesperson for the company confirmed it has raised $10M. The fund will focus on acquiring medical office buildings in the Midwest in the $2M to $6M bracket and not sought after by institutional investors

Leasing

• Office: Grubhub to sublease 90K sf from Paypal’s offices at Vornado’s Merchandise Mart in Chicago, IL

Meme Summary

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