Good Morning!

Q4 GDP growth estimates remained at 2.3%, Federal agencies have until mid-April to submit relocation plans out of D.C., new CRE funds are holding onto distributions, and Houston is seeing huge growth in multifamily and population growth

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Capital Markets

Headlines

• Trump Sets Deadline For Agencies To Propose Move-Outs From D.C. Offices

  Trump administration told agencies to submit any plans for relocating offices out of the National Capitol Region by April 14. The memo says agencies should report “any proposed relocations of agency bureaus and offices from Washington, D.C. and the National Capital Region to less-costly parts of the country” . The federal government leases 17.3mm SF and owns 36.7mm SF of offices in D.C.

• Distribution Rates For Recent Real Estate Funds Underperforming Prior Vintages

  According to MSCI, distributions from private-capital funds have slowed across most asset classes. With the exception of private credit, distribution rates are currently at their lowest since the global financial crisis

• Houston Sees Multifamily Rents Grow By 0.7% In 2024

  The Houston market had absorbed 20,291 Class A units in 2024, a 35.2% increase over 2023. The Houston market currently has 12,350 units under construction, with the bulk of construction focused in the North and Western suburbs

• U.S. Economy Grows By 2.3% In Q4

  The Bureau of Economic Analysis's second estimate of Q4 US GDP remained at 2.3% annualized growth, in line with consensus estimates. The estimate is below the 3.1% seen in Q3 and signals a slowdown in growth. The growth was driven by an increase in consumer spending and government spending, offsetting a decrease in investment activity. The final estimate for Q4 GDP will be released by end of March

Deals Deals Deals

Sales

• Retail: RCG Ventures Holdings, LLC to acquire a 100 non-core retail properties from Global Net Lease for $1.8bn at an 8.4% cap rate. The deal is expected to be finalized by end of Q2 2025

• Industrial: Investcorp acquires two industrial portfolios in Minneapolis and Baltimore for $335mm across 27 properties and 2.7mm SF. Seller details were not disclosed

• Retail: Federal Realty Investment Trust acquired Del Monte Shopping Center, a 673K SF grocery-anchored retail center in Monterey, CA, from American Assets Trust Inc. for $124mm

• Life Sciences: Shorenstein Investment Advisers and Tritower Financial Group acquired The XChange, a 480K SF R&D office park in Bedford, MA, for $96mm from Jumbo Capital Management. The deal was financed with a $50mm loan from Barings

• Industrial: MDH Partners acquired a two-building industrial portfolio in Las Vegas, NV from Link Logistics for $94mm. The portfolio consisted of Sunrise Industrial Park One and Two totaling over 509K SF

• Retail: The Georgetown Company acquired Waterside, a 157K SF grocery-anchored retail center in Fort Worth, TX, from Trademark Property Company. The price was undisclosed

• Multifamily: GMC Properties acquired Topaz Gardens, a 216-unit multifamily property in Jacksonville, FL, from Topaz Capital Group

• Multifamily: City Urban Realty acquired 244 West 72nd Street, an 88-unit multifamily property in New York’s Upper West Side, for $40mm Empire Management

• Industrial: LBA Logistics acquired a 220K SF industrial facility in Glendale, AZ leased to Hubstarr Logistics. Echo Real Estate Capital and Grandview Partners sold the asset for $39mm (Note: This is a correction from Tuesday)

• Office: Pacific Tree Capital acquired 2525 Main, a 143K SF office property in Irvine, CA, from J+R Group for $38mm

• Multifamily: Tesseract Capital Group disposed of Summerview Apartments, a 136-unit gated community in Modesto, CA for $38mm

Debt

• Data Centers: Rowan Digital Infrastructure announced it closed a further $1.24bn of construction financing to build phase II of a flagship hyperscale data center campus in Maryland. Sumitomo Mitsui Banking Corporation and MUFG Bank, Ltd. led as co-structuring agents. SMBC, MUFG, Mizuho, and TD Securities served as coordinating lead arrangers and joint bookrunners. Fourteen lenders took part in the financing, with additional banks expected to join through a secondary syndication in March, The financing brings the total debt raised (phase I+II) to $2.2bn

• Hospitality: Ashford Hospitality Trust secured a $580mm financing package from Bank of American and Sculptor Capital Management to refinance 16 hotels valued at $861mm. The nonrecourse financing has a two-year term with three one-year extension options with a floating interest rate of SOFR+4.37%

• Multifamily: RiseBoro Community Partnership, Inc., L+M Development Partners, LLC and Apex Building Group secure $316mm in financing for Alafia, a 634-unit affordable housing development in Brooklyn, NY. The financing consisted of $49mm in Freddie Mac Unfunded Permanent TEL Forward financing form Merchants Capital and NYSHFA, $193mm construction loan from Bank of America and Merchants Capital, and $175mm in 4% LIHTC equity closed on by Merchants Capital

• Multifamily: Alpine Residential secured a $143mm four-year, floating-rate construction loan from Bank OZK to build Scholars Village, a 500-unit multifamily complex in Jersey City, NJ. EOS Residential Investors provided an equity investment of an unknown amount

Distress

• Office: Aurora Capital Associates secured a restructuring and extension for $200mm of CMBS debt on its Prince Building, a 355K SF office and retail property at 568 Broadway in New York. The loan had previously hit special servicing in before defaulting in November 2024

Capital Raising

• Diversified: Neuberger Berman announced the final close of NB Real Estate Secondary Opportunities Fund II LP, the firm's second commingled real estate private equity secondary fund. RESOF II closed at $1.05bn and will focus on mature real estate funds from LPs desiring liquidity, and to recapitalize seasoned real estate funds and investments alongside incumbent third-party managers

• Multifamily: Eastham Capital launches Eastham Capital Fund VII, LP, its seventh multifamily investment fund targeting value-add properties in A&B locations throughout the U.S.. The fund is targeting to raise $500-750mm in equity commitments

• Student Housing: Maslow's Campus Communities, LLC and Pennybacker Capital Management, LLC form a strategic partnership that will provide Maslow's with capital to pursue Public Private Partnerships (P3s) with universities to modernize on-campus student housing infrastructure and the acquisition and development of off-campus communities

Meme Summary

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