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Good morning. Student housing pre-leasing for Fall 2024 shows continued growth but at a slower pace than in previous years. Plus, Arbor Realty Trust is under investigation by the FBI for its lending practices.

Today’s issue is brought to you by Pine Peak Partners—be the bank with bridge debt and earn consistent cash flow.

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Market Snapshot

*Data as of 7/12/2024 market close.

STUDENT HOUSING

TOGETHER WITH PINE PEAK PARTNERS

Be The Bank with Bridge Debt & Earn Consistent Cash Flow

At Pine Peak Partners, we aim to deliver strong risk-adjusted returns to our investors by directly accessing first-lien transactions through bridge lending opportunities, ensuring immediate cash flow on a monthly basis.

Strong Alignment: 50% of the capital in each opportunity is our own, creating a direct alignment between our investors and our firm.

This alignment removes the typical investment firm’s focus on fee generation and emphasizes attractive, downside-protected returns.

• Rate cut rally: Real estate stocks soared as much as 3.1% Thursday, their biggest gain of 2024, driven by cooling inflation and expectations of Federal Reserve rate cuts in September.

• DOJ probe: Arbor Realty Trust is under investigation by federal prosecutors and the FBI over its lending practices and loan portfolio performance following short-seller allegation.

• Banking squeeze: Fed rate cuts may initially hurt banks by squeezing interest earnings amid rising deposit costs and slow loan growth before potentially boosting lending and earnings.

• Historic sale: Miami’s nearly 100-year-old Dade County Courthouse is for sale at $52.3 million, marketed as an adaptive reuse project amid downtown redevelopment efforts.

• Policy changes: Starting Feb. 28, 2025, new multifamily mortgage loans from Fannie Mae and Freddie Mac will require a 30-day notice for rent increases, lease term expiration, and a five-day grace period for late rent.

• Oversupply: Florida’s four biggest metro areas saw significant rent declines, with Jacksonville reporting the largest drop in median asking rent in five years.

• Rent Cap: President Biden’s proposal to cap rent increases at 5% has sparked confusion and controversy, leading to speculation about a potential national rent control policy.

• Workforce housing: Ron Simon donates $100M to build housing in Orange County through RSI Dream Communities, partnering with local employers to expedite development.

• Managing expenses: Multifamily property owners are grappling with skyrocketing operational costs, particularly in insurance, utilities, and maintenance, threatening NOI.

• Make it affordable: Atlanta Housing is exploring better collaboration methods with developers to create 10,000 affordable housing units within five years.

• Conversion: Asana Partners and MRP Realty will convert Duke Energy’s former HQ in Charlotte into 448 apartments and 55,000 square feet of retail, with a $250 million investment.

• Warehouse sale: Darielle Singerman sold a Boca Raton industrial building for $18.7 million to investor Serge Abecassis, marking a significant return on her 2021 purchase price of $10.5 million.

• Pullman Park: Ryan Companies secured $16.3M to develop a 170,000 sq ft industrial building in Chicago’s historic Pullman Park.

• Fully leased: Bixby Land Co. and a global investment manager sold a fully leased, 104,500 sq ft industrial property in San Bernardino to Overton Moore Properties.

• Going small: According to a new Colliers report, U.S. retail growth is mostly being driven by smaller tenants leasing stores in shopping centers.

• Acquisition: Finmarc Management Inc. bought Riverview Plaza, a 185,275 sq ft shopping center in Frederick, Md., from EDENS and JPMorgan Chase & Co. for $30 million.

• Doubling down: Boston Properties proposes increasing its office development at Reston Town Center from 645,000 to 930,000 square feet, aiming to capitalize on high-end office demand.

• Special servicing: Brookfield’s $400M loan on LA’s Bank of America Plaza has moved to special servicing due to falling occupancy rates, ahead of the loan’s September maturity.

• Chicago Casino: Bally’s (BALY) has secured $940M in construction financing for a 34-story hotel tower at its Chicago casino project.

• Trading hands: Hotel property trades surged from $4.3 billion in Q1 to over $5.7 billion in Q2, matching last year’s Q2 total, driven by key motivations for buyers and sellers.

• Hiking fees: Oakland increases hotel fees to 2% of room rates to fund Visit Oakland’s marketing efforts, aiming to double revenue and boost tourism despite the city’s ongoing challenges.

📈 CHART OF THE DAY