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Good morning. The single-family rental (SFR) market shows signs of gradual recovery, with rent growth climbing in March. Plus, from 2019 to 2023, rents in ten U.S. cities increased by 20% more than wages.

Today’s issue is brought to you by QC Capital. Become an investor in the booming car wash industry.

Market Snapshot

*Data as of 5/22/2024 market close.

Property report

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*Cash Distributions and any specific returns are not guaranteed. Past performance and past distributions to investors may not be indicative of future results. An investment in real estate is speculative and subject to risk and as such there can be neither any assurance as to the final results of any such specific investment nor can there be any assurance that any investment strategy into securities offered by FNRP will achieve specific investment goals. Securities are only available to verified accredited investors who can bear the loss of their investment.

• Lending kingdom: Andover Properties launched its lending arm with $300M in funding, offering $600M in self-storage loans as the fledgling sector takes flight.

• Rolling into recession: RealPage warns of a potential ‘rolling recession’ with slowing employment growth in interest rate-sensitive sectors, which may point to deeper economic instability.

• Broken compass: The now-notorious SoftBank Vision Fund reduced its Compass (COMP) stake to 15% after selling $74.5M in shares as part of a larger divestment plan.

• Inflation forecast: JP Morgan’s (JPM) Jamie Dimon warns of persistent inflation amid rising deficits, and seriously doubts that we’re in for a soft landing.

• Real estate Renaissance: Commercial Observer just released its 2024 Power 100 list, honoring top real estate leaders who drove record transactions.

• Capitalizing on growth: Northmarq expands into investment management by acquiring Morrison Street Capital, boosting its assets to $5.4B across diverse real estate sectors.

• Too damn high: Slightly more than 1 in 3 NYC apartments is currently considered affordable for tech workers, while entry-level professionals can afford just 2.1%.

• Senior success: South Florida developer Terry Salzman secured site plan approval for a 6-story, 245-unit senior living facility in Weston designed by Synalovski Romanik Saye LLC.

• Houses all day: Multifamily rents cooled by 0.8% in April, with the national median rent at $1,396. Meanwhile, single-family rents went up by 3.4%.

• Rate hike headache: Crystal Asset Management is behind on a $49M loan for a Riverside County property, as rising rates squeeze profits.

• New wind, old deal: Four Winds Real Estate bought The Knox and its 110 units in Murray Hill for $68M. The property had been used since the pandemic as a temporary housing provider.

• Storage loan: Self-storage developer 1784 Holdings, led by Shane Albers, secured $36M in bridge financing for a Life Storage (LSI) facility in LA.

• Futuristic facility: A new JV between Hines (ZHGIIX) and Oaktree broke ground on a 267KSF advanced manufacturing facility in Fremont, CA.

• Garden State glow-up: Matrix Development Group secured $93M in financing for a nearly 782KSF industrial project in Budd Lake, NJ.

• Institutional confidence: ERS of Texas plans to invest $200M in industrial real estate funds in fiscal 2024 to balance its CRE portfolio.

• Balancing the scales: Two Amazon-anchored (AMZN) warehouses totaling nearly 3MSF have hit the market for $225M, with a 10.2-year lease term.

• Happier hours: Downtown restaurant and bar traffic during happy hours now exceeds pre-pandemic levels, despite ongoing remote work preferences.

• Retail rebound: TZ Capital paid $180M for a Madison Avenue property from Thor Equities, or 35% less than the property’s 2013 sale price.

• Welcome wisdom: Weston developer Terry Salzman secured approval for a 6-story, 245-unit senior living facility on Racquet Club Road.

• Thanks, Joe: Trader Joe’s plans to open a full-service grocery store in DC’s Monroe Street Market development, filling a neighborhood gap.

• Location navigation: WeWork nears the end of its bankruptcy period, sorting leases across 170 locations nationwide and keeping most spots in major markets.

• Delinquent deluge: The Trepp CMBS Delinquency rate rose 40 bps to 5.07% in April, driven by large newly delinquent loans, particularly in the office, retail, and lodging sectors.

• Rent standoff: Santa Monica’s Third Street Promenade is staring down a 25% vacancy rate, with just 73 of 97 storefronts occupied, as landlords resist lowering rents.

📈 CHART OF THE DAY