Together with

Good morning. After scaling back, Amazon may be gearing up for another big industrial push—this time with partners and a long-term game plan.

Today's issue is sponsored by USREM—unlocking liquidity in private real estate syndicates.

📢 You’ve asked for in-person events—and we’re making it happen. But before we lock in the details, we want your take. Your feedback will help us create experiences that are relevant, engaging, and genuinely valuable to you.

Market Snapshot

*Data as of 04/09/2024 market close.

BACK ON OFFENSE

TOGETHER WITH USREM

Do you have LPs seeking liquidity before your fund's maturity?

Life happens. Locked-in LPs sometimes need liquidity before the end of the syndicate. Managing these requests can be a headache for GPs.

That’s where USREM comes in. 

USREM is a pioneering real estate marketplace that gives existing and new LPs more flexibility in how and where they invest—while keeping liquidity on the table. USREM helps connect investors with otherwise off-market new and secondary investment opportunities in commercial and residential real estate from leading sponsors across the U.S.

Their unique model taps into the $2 trillion market of privately owned, professionally managed real estate syndicates and portfolios in the U.S. With a straightforward business model and innovative double-blind marketplace, LPs can buy and sell on their own terms —not under duress and under value.

If you are a GP looking to provide valuable optionality for your investors or an LP in need of liquidity, USREM can help. 

*USREM Securities, LLC is a broker-dealer registered with the SEC, a member of FINRA and SIPC, and operates an Alternative Trading System (“ATS”). Private placements are intended for qualified purchasers (pursuant to US rules and regulations) and for persons residing abroad in jurisdictions where securities registration exemptions are available. Securities sold in private placements are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment.

• Free events for RE investors: Neutral — a Midwestern wellness multifamily developer— just announced new investor events: webinars, building tours, and more. Register for free. (sponsored)

• Recession watch: CRE debt just got downgraded. JPM CEO Jamie Dimon sees recession risks rising, and landlords could be caught in the middle.

• Deal momentum: NYC investment sales jumped 38% YoY in Q125, driven by smaller players and a wave of development site trades ahead of rezoning and tax incentive deadlines. 

• Credit shift: Private credit has grown into a $1.7T force in CRE finance, increasingly challenging traditional banks while creating new synergies in a reshaped lending landscape. 

• Record raise: Blackstone raised €9.8B for its latest European real estate fund, matching its prior record despite a turbulent market.

• Tariff twist: Trump paused broad tariffs at 10% for most countries but slapped China with a steep 125% rate, sparking market optimism and a 7% S&P 500 surge.  

• Paper wealth: US homeowners now hold a record $35T in housing wealth, but rising property taxes, borrowing hurdles, and limited access to that equity are leaving many feeling strained.

• Fraud fallout: Fannie Mae has fired over 100 employees amid fraud allegations, while broader workforce cuts and leadership overhauls reflect a sweeping government push to restructure housing finance. 

• Cautious pipeline: Developers are growing hesitant in Westchester hotspots like New Rochelle and White Plains as thousands of new units flood the market, raising concerns about oversupply, concessions, and long-term viability. 

• High stakes: Crescent Heights has acquired the 350-unit Skyline at MacArthur Place in Santa Ana for $240M—one of the priciest per-unit multifamily deals in Orange County this cycle. 

• Neumann returns: Adam Neumann secured a $155M loan for his 466-unit Flow House condo tower in downtown Miami, pushing forward plans to open the short-term rental-friendly project later this year. 

• HUD headache: Infinity Real Estate Advisors is suing property manager RPM Living for $19M, alleging mismanagement of four affordable housing properties in Chicago.

• Amazon expansion: Amazon is exploring a $15B expansion plan to build nearly 80 new logistics sites, signaling a return to growth mode after its pandemic-era pause.

• Power premium: In the AI-driven data center boom, power-ready land has become one of the hottest commodities in real estate, turning early-risk investors into overnight millionaires. 

• Earnings pressure: Prologis was downgraded by Scotiabank as tariffs and rising vacancies weigh on industrial REITs, pushing its stock to a five-year low.

• Retail uptick: Manhattan’s retail leasing surged in Q125 with over 3.5 MSF leased, a 14% YoY jump. 

• Flagship bet: Zara has reversed course on exiting San Francisco, signing a lease for a 40K SF, four-story flagship store in Union Square—nearly doubling its footprint in the struggling shopping district.

• Tech revival: San Francisco’s office market roared back in Q125, hitting a 10-year leasing high, led by major tech deals from Google, JPM, and others. 

• HQ shuffle: Fidelity is subleasing its entire 803 KSF Boston headquarters at as it prepares to relocate to a new, smaller space in the Seaport’s Commonwealth Pier redevelopment. 

• Office slowdown: Office construction in the top 14 US markets has fallen to a multi-year low, with only 20.7 MSF underway as developers hold off without strong preleasing commitments.

• Hotel acquisition: Partners Capital has acquired the Courtyard by Marriott in Atlanta’s Buckhead neighborhood, marking the second purchase under its new hospitality fund.

A MESSAGE FROM BOXABL

Homes in 4 Hours? Assembly Line Revolution Hits Housing

BOXABL is the home construction company bringing assembly line automation to the home industry. With their patented technology and 53 patent filings, BOXABL believes they have the potential to disrupt a massive and outdated trillion dollar building construction market.

The company is offering shares at $0.80 per share, with a $1,000 minimum investment and extended their round due to investor demand.

The closing date 4/14 is the last day to invest in BOXABL on StartEngine.

Disclosure: This is a paid advertisement for Boxabl’s Regulation A offering. Please read the offering circular here. This is a message from Boxabl. *Reserving a Nasdaq ticker does not guarantee a future listing on Nasdaq or indicate that BOXABL meets any of Nasdaq's listing criteria to do so.

📈 CHART OF THE DAY