Together with

Good morning. Welcome to the weekend edition of CRE Daily.

• 📰 Feature: CRE transactions start to show some signs of recovery

• ⏪ Catch up: The most-read stories from the week

• 👍️ Reviews: 3 new product reviews coming soon

• 📈 Chart: $20.6B worth of apartments traded across the U.S. in Q1

Today’s issue is brought to you by Calvera Income & Growth Fund.

⚡️ You currently have 0 referrals, only 1 away from receiving B.O.T.N Multifamily Deal Screener .

CAPITAL MARKETS

TOGETHER WITH CALVERA PARTNERS

This free report shows how multifamily can be the best growth strategy in today's market

Learn how multifamily real estate can outperform other asset classes, deliver better dividends than stocks, offer significant appreciation, diversify your portfolio, and reduce your taxable income. Get your free report now!

Past performance is not indicative of future results. This material does not consider your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in the material. Before acting on information in the material, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser.

Catch up on the most clickworthy stories of the week.

• Hotels > office: Adaptive reuse projects jumped 17.6% last year, converting more outdated buildings to apartments than in 2022.

• Assessments: Big city landlords and office owners are rushing to appeal property taxes due to plunging office values, dropping up to 75% in D.C. and 50% in NYC.

• Follow the money: Blackstone is on track to refinance $12B in commercial mortgage-backed securities (CMBS) this year. $7.5B of those loans tied to industrial properties.

• Market pulse: Starwood CEO Barry Sternlicht offers his insights into multifamily rent growth and his take on how the Fed is doing to stabilize the economy.

• Record high: Manhattan apartment rents hit a new high in April, reaching $4,250 per month. Landlords are busy capitalizing on low vacancies, driving tenants to accept higher rent prices.

• Policy changes: The 421a tax abatement update is nearly finalized. Romain Sinclair outlines key changes and what developers and investors need to know.

• Mounting debt: 1440 Broadway exemplifies the current challenges in office real estate: lower rents, struggling tenants, and rising interest rates.

• Let’s make a deal: Healthcare Realty Trust (HR) and KKR & Co. (KKR) join forces for a $1B partnership focusing on medical outpatient properties.

• Apartment occupancy: Nationwide, rising apartment occupancy rates signal a potential rebound following years of declines. In fact, it’s the first time occupancy has shot up since early 2022.

• Bullish billionaire: A strategic alliance between Eldridge Industries and AECOM Capital brings a $3B investment into distressed properties amid market-wide challenges.

• Widening gap: The disparity between rent growth and wages has created a growing affordability gap for renters across the U.S., with rents outpacing wage growth in 44 of the 50 largest metros.

• Growing distress: Commercial property foreclosures rose a staggering 117% between March 2023 and 2024.

• Misleading: BREIT, Blackstone's private real estate fund with $114B in assets, faces renewed scrutiny over potentially inflated returns and questionable financial stability.

• Signs of relief: Mortgage rates dropped to 7.18%, breaking a streak of four consecutive gains, as purchase-loan applications rose 2%.

• Earnings report: Brookfield (BN) alumnus Brookfield Asset Management reported its first quarterly profit drop since its spin-off in 2022, blaming reduced fees in some key business segments. 

👍 Product Reviews

📈 CHART OF THE DAY