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Good morning. Commercial real estate lending surged in Q4 2024, with CBRE’s Lending Momentum Index up 37% year-over-year, driven by abundant capital, strong fundamentals, and increased bank activity.

Today's issue is sponsored by AirGarage—maximize parking revenue at your property.

🎙️New Episode: Adaptive reuse is reshaping real estate as cities turn underused office spaces into housing—on No Cap, co-hosts Alex Gornik and Jack Stone talk with Victrix Investment’s Anoop Dave and Tim Gordon about the challenges, opportunities, and future of office-to-apartment conversions.

Market Snapshot

*Data as of 02/10/2024 market close.

Capital Flows Into the Market

TOGETHER WITH AIRGARAGE

How AirGarage Improves the Tenant Parking Experience | Buccini Pollin Group Case Study

One of the main reasons real estate owners bring AirGarage in to manage their parking operations is to create a great experience for retail and office tenants.

We specialize in helping properties with complicated parking situations—like dozens of tenants and nuanced parking rules—create a source of truth that can be trusted.

For example, in February 2024, we partnered with Buccini Pollin Group, an integrated real estate acquisition, development, and management company with over $6B in assets across the USA.

Prior to AirGarage, they were dealing with a complex web of accounting and tenants, many of whom weren't paying their parking invoices on time.

Over the past 6 months, AirGarage has successfully streamlined its accounting and operations and increased revenue across the portfolio by over 20%.

Check out this video to hear directly from the Buccini Pollin Group team about their experience, and let us know if you'd like a custom proposal!

*Disclaimer: This is a paid advertisement. See full disclosure at the bottom of the newsletter.

• CRE is picking up steam: The LightBox CRE Activity Index surged to 81.2 in January, signaling renewed investor confidence and rising deal flow amid stabilizing market conditions. (sponsored)

• Secured Series B: Real estate investment platform InvestNext raised $15M in Series B funding, led by Beringea, to enhance compliance automation, investor relations, and capital raising capabilities.

• BTR rankings: Dallas-Fort Worth has nearly 8.5K build-to-rent homes under construction, trailing only Phoenix, as Texas leads the U.S. in BTR development with 22K units.

• Optimize your deals: Managing CRE syndications is easier with the right software. We’ve researched the best investment management platforms to help you track deals, engage investors, and optimize performance.

• Trump targets loophole: President Trump renews efforts to eliminate the carried interest tax break, facing opposition from PE and hedge fund lobbyists despite bipartisan support for reform.

• Tenants fight back: Detroit renters accuse crypto real estate platform RealT of neglecting repairs, mismanaging properties, and issuing eviction threats as tax delinquencies and vacancies mount.

• In the DOGEhouse: The US Department of Government Efficiency’s lease exits put $12B in CMBS loans at risk, with DC facing the largest exposure amid rising office vacancies.

• Union Station deal: Amtrak agreed to pay $505M to control DC’s Union Station, ending a legal battle with Rexmark and advancing plans for a $10B redevelopment.

• Loan secured: The Atlanta Housing Authority and Benoit Group got $28.3M to fund Englewood Multifamily, a mixed-income redevelopment replacing public housing in Chosewood Park.

• Landing financing: Carr Properties and Barings secured funding to redevelop a former suburban DC office site in Alexandria into a mixed-use complex with 200+ apartments and retail.

• New hire: Multifamily expert Jay Parsons will serve as an economic advisor for Dallas-based JPI, bringing data-driven insights to enhance the firm’s strategic approach to apartment development.

• Mixed outlook: Equity Residential’s (EQR) 2025 FFO guidance fell short, due to challenges in expansion markets like Atlanta and Denver, while coastal cities like NYC and DC stayed strong.

• For the kids: Cal Poly San Luis Obispo and FullStack Modular will develop 4.2K student housing beds using modular construction, with the $1B project ready by 2030.

• Listed for sale: Blackstone’s ShopCore (BX) is selling a 480.7 KSF industrial campus in San Leandro, 78% leased and zoned for advanced manufacturing, amid growing investor interest.

• Amazon to invest in AI: Amazon (AMZN) plans to spend $100B on cloud computing and data centers in 2025, joining tech giants in a growing AI arms race amid soaring infrastructure demands.

• New facility: Industrial cable maker Southwire began construction on a 1.2 MSF distribution center near Bremen, Georgia, consolidating operations from its Villa Rica facility.

• Biting the dust: Parent company Authentic Brands Group will transfer operations after Liberated Brands filed for bankruptcy, citing inflation, supply chain issues, and declining demand.

• Revamping San Jose: Hines plans to transform nearly 180 KSF of mostly vacant storefronts into a vibrant shopping and dining hub, enhancing pedestrian engagement and revitalizing the area.

• Casino lease: Simon Property Group (SPG) signed Live Casino to fill a vacant Lord & Taylor space at The Mall at Rockingham Park, increasing occupancy to 86% as a $262M loan nears maturity.

• Betting $1B: Cousins Properties (CUZ) invested nearly $1B in trophy office acquisitions in late 2024, boosting occupancy to 89.2% as demand for high-quality office space strengthens.

• Third foreclosure: Lender HTLF Bank sued Shaya Prager for defaulting on a $47.5M loan tied to a Minneapolis office tower, marking his third foreclosure in the Normandale Lake complex.

• Coworking grows: Denver’s coworking market expanded 14% YoY in Q4, with smaller, flexible spaces in demand, while traditional office distress continues to rise.

• Deal of the day: Hyatt Hotels (H) is buying Playa Hotels & Resorts (PLYA) to expand its all-inclusive resort footprint, with plans to sell assets and raise $2B by 2027 to maintain an asset-light strategy.

• Back in hand: Santikos Enterprises reacquired a 5.9-acre site in San Antonio’s Legacy community after a failed hotel project, lifting restrictions and opening the door for potential redevelopment.

📈 CHART OF THE DAY