Goooood Morning!

Noticeable pickup in deal-related headlines after a slow week. Vail Resorts agreed to acquire Crans-Montana Mountain Resort in Switzerland from CPI Property Group. L.A. City Council places additional hurdles for short-term rentals. Leaked reports allege Amazon’s AI chatbot is leaking data. U.S. hotels see decline in RevPAR for October. This week all eyes will be on the jobs reported slated for release on Friday. The report will provide more insight on the Fed’s future economic policy.

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Merch Spotlight

Capital Markets

Market News

• November Jobs Report Scheduled for Friday

  The November jobs report will have investors looking for signs of a cooling labor market. A report with job growth that is in line with expectations will support a “soft landing” where inflation returns to 2% without a major economic downturn

• Bitcoin Shoots $41,000 for First Time in 18 Months

  Bitcoin was above $41,600 as of 1:30am ET on Monday

• U.S. Treasuries Decline Despite Fed Tapering Rate Cut Expectations

  The 10-year dropped by more than 13bps on Friday despite Fed Chairman Jerome Powell tapering expectations for aggressive interest rate cuts. The Fed will next decide on rates on Friday, December 13th. The Fed will begin it’s blackout period this Friday

• Two Chinese Execs Linked to Shadow Bank Zhongzhi Enterprise Group Go Missing

  The Chairman for bio-engineering firm, and chairwoman for a education technology company with ties to the Chinese shadow bank Zhongzhi have gone missing. Both companies attempted to contact their chairpersons through various means, including via family members. On Saturday the Beijing Public Security Bureau announced mandatory measures have been taken against people linked to Zhongzhi Enterprise Group. Measures can include placing people under surveillance, detention, or arrest

CRE Headlines

• U.S. Hotel RevPAR Declines by 2.1% in October

  RevPAR declines were driven by a 3.2% decrease in occupancy, partially offset by a 1.1% increase in ADR. While domestic demand for hotels has largely reached 2019 levels, inbound international travel has yet to fully recover. Short term rentals continue to eat into hotel demand with short-term rental demand rising by 15% in October, while hotel demand growth declined 2.4%

• L.A. City Council Approves Law Requiring Airbnb Hosts to Get a Police Permit

  The Los Angeles City Council approved a law requiring hosts of short-term rentals and hotels to obtain a police permit. The law will allow City Council and neighborhoods to challenge issuance of the permits in hopes of cracking down on party houses and those which draw illicit behavior

• Amazon’s Newly Launched A.I. Chatbot Leaks Location of AWS Data Centers

  Leaked internal documents say Amazon’s newly launched A.I. chatbot, Amazon Q, is leaking confidential data including the location of Amazon Web Services data centers, internal discount programs, and unreleased features

• Vail Resorts to Acquire a Ski Resort in Switzerland

  Vail Resorts agreed to acquire Crans-Montana Mountain Resort in Switzerland from CPI Property Group. Vail will acquire an 84% ownership stake in the company which operates the resort’s lifts and mountain operations, it will also acquire an 80% ownership stake in one of the ski schools on the mountain, and also acquire a 100% ownership stake in 11 restaurants on the mountain. The valuation of the of the resort operation is expected to be 119mm Swiss Francs (approximately $136mm USD). Vail plans to invest 30mm Swiss Francs over the next five years

Deals Deals Deals

Sales

• Industrial/Office: Basis Industrial acquires four office & industrial properties across Florida and Texas and refinances two existing assets for a total of nearly $220mm. The transaction was financed by a $110mm loan from Bank United, Banesco, and Thorofare along with a $70mm preferred equity/mezz piece from Beach Point Capital. Individual asset details were as follows:

  • $25mm for the acquisition of a 92k sf office park in Orlando, FL from Westminster Capital 

  • $49mm for another 272k sf office asset in Orlando, FL from Taurus Investment Holdings

  • $57mm for a 422k sf warehouse in Ft.Worth, TX from Tillar/LanCarte

  • $24mm for a 162k sf in industrial business park from PHP Capital in Ft.Worth, TX

  • $60mm refinance of two industrial assets in Florida totaling 351k sf

• Retail: Tanger acquires Bridge Street Town Centre, a 825k sf, 93% leased, open-air center in Huntsville, AL from Centennial for $194mm

• Multifamily: Jonathan Rose Companies acquires The Grove, a 331-unit multifamily asset in San Jose, CA for $102mm from Nuveen Real Estate. At closing, the company recorded a 55-year rent restriction regulatory agreement with the Bay Area Housing Finance Authority

• Office: PNH Properties acquires 211 Commerce, a 233k sf office tower in Nashville, TN from Velocis and Lincoln Property Co. for $75mm. The asset last traded for $50mm in 2021 and has since undergone $16mm in renovations

• Retail: A JV between CBRE Investment Management and Fairbourne Properties acquires Paddock Shops, a 354k sf shopping center in Louisville, KY from an undisclosed seller. The asset was 88% leased at sale

Debt

• Office: Stiles Corporation and Las Olas Capital obtained a $55mm debt package to refinance The AutoNation Building, an office building in Fort Lauderdale, FL

• Industrial: Waterloo Partners and ICM Management secure $40mm in construction financing to develop a 825k sf spec industrial building 50 miles south of Atlanta, GA. The loan was funded via a syndication between Trustmark National Bank and Coastal State Bank 

• Multifamily: Howard University obtains a $31mm loan from Amazon Housing Equity Fund to acquire Howard Manor, a 80-unit multifamily asset in Washington D.C.

• Industrial: Echo Real Estate Capital secures $29mm construction loan for a four-building, 183k sf industrial project 20 miles outside of Phoenix, AZ

Developments

• Medical: Swedish Health Services begins $1.3bn expansion project on its First Hill Campus in Seattle, WA. The project consists of a 750k sf medical tower which will have a new acute care facility, office space, 24 advanced operating suites, an emergency department with 31 rooms, and an additional outpatient and imaging services building

• Gaming: Gaming and Leisure Properties, Inc. (subsidiary of PENN Entertainment Inc.) breaks ground on $360mm Hollywood Casino project in suburban Chicago, IL

• Mixed-Use: Presidium to redevelop a 28-acre former cotton mill site outside of Dallas, TX. The project will feature 1,200 multifamily units, 200k sf of office, retail space, and a boutique hotel. The development is expected to break ground in mid-2024

• Multifamily: Madison Communities breaks ground on Madison Canton, a 252-unit multifamily community outside of Atlanta, GA. The first units are scheduled for completion in Q2 2025

• Self Storage: NitNeil Partners and Seamless Capital to develop a 923-unit self-storage facility in Austin, TX. LifeStorage will operate the asset which is expected to be completed in late 2024

Leasing

• Office: Workbox, a co-working firm, and Iron Galaxy Studios, a video game studio, sign a 29k sf and 33k sf lease at Commerz Real’s 125 South Clark Street in Chicago, IL

Meme Summary

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