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Good morning. In the U.S., self-storage providers are increasingly converting industrial and retail spaces into storage facilities, contributing 191 million square feet—around 9%—of the total self-storage inventory nationwide.

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Market Snapshot

*Data as of 10/31/2024 market close.

MARKET REPORT

TOGETHER WITH SPI ADVISORY

314-Unit Class A Value-Add in Limited Supply Dallas Submarket

SPI Advisory invites accredited investors to invest in Winsted at White Rock, a 314-unit Class A value-add multifamily property in the affluent Lakewood neighborhood of Dallas. The property is within walking distance of White Rock Lake and Trails. 

This 506(c) offering is currently accepting investments on a first-come, first-served basis. 

Investment Highlights:

• Seasoned Sponsor: $2.5B+ Texas multifamily experience with $1.3B+ AUM; principals investing significant personal capital

• Discounted Price: Significantly below recent sales comps due to Seller’s 2024 loan maturity

• Value-Add Upside: $300+ renovation premiums

• Bonus Depreciation: Estimated 40-50% of investment in 2024 Depreciation Tax Loss

*Please see the advertising disclosure at the bottom of this newsletter.

• Texas housing crunch: The Texas housing boom has only intensified the state’s housing shortage, which stood at 320K homes in 2022 due to rising prices and higher rents in major Texas cities.

• Under pressure: With declining demand for traditional office spaces, regional banks are seeing a rise in non-performing office loans, while smaller community banks are faring better.

• Revitalizing real estate: REITs will allocate $120.9B for property reinvestment in 2023, focusing on upgrades that boost value and revenue streams.

• Investor influence: Wall Street landlords are upping their stake in US single-family housing, leading to rising home prices and rents in some neighborhoods.

• Builder setback: D.R. Horton's (DHI) underwhelming 2025 revenue forecast, coupled with high mortgage rates and consumer uncertainty, spurred a steep drop in homebuilder stocks.

• Empire building: Kushner Companies' value has nearly tripled since 2016 to $2.9B, surpassing Trump's, due to rapid growth in its real estate ventures.

• Art world assist: Sotheby’s secured a $1B investment from Abu Dhabi's sovereign wealth fund, ADQ, to reduce debt and expand, giving the Emirati fund significant strategic influence.

• Rent rumble: A Manhattan judge allows Cooper Union to collect rents from the Chrysler Building amid a lease dispute with RFR Holdings.

• Affordable dreams: Boston Financial raised $170M for an affordable housing fund, aiming to create 1,418 homes in 16 communities across 13 states.

• Senior housing deal: Bow River Capital sold two senior housing properties in Colorado, The Lodge at Greeley and The Lodge at Grand Junction, totaling 140 units, for $30M.

• Infrastructure innovation: Industrial occupancy correlates with infrastructure investments. Experts predict speculative development will slow as occupied space grows amid changing freight patterns.

• Hyper-growth: Equinix (EQIX) posted its 87th consecutive quarter of revenue growth, driven by a $15B hyperscale data center expansion in partnership with GIC and Canada Pension Plan.

• Data evolution: Data center Asset-Backed Securities (ABS) are projected to reach $75B by 2027, providing a new securitization pathway for income-generating data center assets.

• Bay Area exit: JLL Income Property Trust (JLL) sold Pinole Point Distribution Center in Richmond, CA, for $132.5M, yielding a 50% gain.

• Motoring forward: Four Springs TEN31 Xchange acquired a fully leased 1.1 MSF industrial asset in Monroe, MI, for $139.5M, financed by Colliers (CIGI) for $76.7M.

• Recipe for expansion: Chipotle (CMG) is planning a record-breaking expansion, aiming for 300 new restaurants by year-end and reporting strong Q3 revenue growth.

• Mall marvel: Queens Center Mall, a 968 KSF shopping mall in Elmhurst, NY, and a decades-old icon of Queens retail, secured a $525M loan at a 5.37% fixed interest rate.

• Farewell, Big Lots: 255 Big Lots (BIGGQ) leases are up for auction as the retailer plans to close over 500 locations.

• Insurance innovates: American International Group (AIG) leased 180 KSF at Perimeter Summit, creating a 1.2K-employee innovation hub, signaling a resurgence in large office leases in Atlanta.

• Conversion boom: Office-to-residential conversions in Manhattan are ramping up, with these projects set to add around 7.5K rental units by 2028, representing over 40% of new rental inventory.

• Pricey purchase: The Orange County Transportation Authority bought a 220.5 KSF office building in Santa Ana for $54.5M, paying around $247 PSF.

• Making waves: Mattel (MAT) secured a new 60 KSF lease in El Segundo for studio ops, boosting its beachside presence despite a recent sales dip.

• Southern kickoff: BD Hotels secured a $75M construction loan for the first Florida hotel in West Palm Beach's NORA district, featuring 201 rooms.

📈 CHART OF THE DAY