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Good morning. Despite a nationwide oversupply, US apartment investors continue building, expecting rental demand to recover by 2026, as strong SFR growth and high absorption rates support long-term optimism.

Today's issue is sponsored by BOXABL—revolutionizing factory-built, foldable homes for a smarter, more efficient future.

📈 Take the Q125 Fear & Greed CRE Survey—just 5 minutes to share your outlook and track investor sentiment across all sectors + unlock MF Stress Test.

Market Snapshot

*Data as of 02/13/2024 market close.

MULTIFAMILY

TOGETHER WITH BOXABL

BOXABL Announces New $20,000 House

When the biggest names in your industry take an interest, you know you're onto something.

That's the story with BOXABL. They've rethought housing by bringing assembly lines to new home construction. Not to mention, the company has gained the attention of investors like D.R. Horton. Where traditional homes take over 7 months to build, BOXABL factories can produce their signature Casita home in nearly four hours.

And they’re just getting started. BOXABL just announced a new $20,000 house called Baby Box. It’s a turnkey home designed for affordability, flexibility, and versatility. Perfect for disaster relief, workforce accommodations, community projects, or you just need extra space, the Baby Box is another great solution added to their product line. 

Now, everyday investors can join them too. When BOXABL last opened a Reg A investment opportunity, they maxed out the $75M regulatory limit, and they believe their new $20,000 house is the key to unlocking even greater potential.

*Disclosure: This is a paid advertisement for Boxabl’s Regulation A Offering. Please read the offering circular. This is a message from Boxabl.

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• Q4 surge: CBRE beat expectations with 28% higher US office leasing revenue, strong property sales, and expansion into data centers and flexible workspaces, signaling growing market confidence.

• Big budget cuts: The Department of Government Efficiency (DOGE) is eyeing deep cuts at HUD and GSA, potentially slashing budgets, consolidating offices, and impacting federal CRE operations.

• Tax cut plan: House Republicans proposed $4.5T in tax cuts and $1.5T in spending reductions, while the Senate GOP focused on border security and military funding in a separate package.

• China REIT boom: The China Universal Jointown REIT was just oversubscribed by 1,192x, signaling a very strong appetite for dividend-yielding assets in the Middle Kingdom.

• Texas launch: The NYSE rebranded its former Chicago branch as NYSE Texas in Dallas, expanding its presence amid the Lone Star State’s push to become the nation’s #2 financial hub.

• Selling the Bronx: PIMCO sold a $61M rent-stabilized loan portfolio for $28M, at a 45% discount, as PH Realty and Rockledge pursue a loan-to-own foreclosure strategy in the Bronx.

• Hall of Shame: Nightingale Properties CEO Elie Schwartz finally pled guilty to wire fraud, admitting to misusing investor funds. He now faces up to 20 years in prison.

• Still too damn high: The NYC rental market remains strong with rising rents in January thanks to high demand, limited supply, and elevated mortgage rates, signaling continued price pressure.

• Betting on Austin: CSW Development began demolishing the former Strait Music Company site in South Austin to build a 5-story apartment complex, despite local oversupply concerns.

• Proposed senior housing: Amcal is planning a 64-unit affordable senior housing project in Eagle Rock, featuring two 4-story buildings with community spaces, using fast-track approval.

• Empire acquisition: Invesco Real Estate (IARAX) acquired a nearly 262 KSF light industrial portfolio in Valley Cottage, NY, for $63M. The complex is fully leased to 17 tenants across various industries.

• Sector shifts: The industrial market transitions as supply growth slows, with a shift to more manufacturing and data centers, while vacancy rates rise and construction activity cools.

• Ambitious redevelopment: The Boca Raton City Council approved a mixed-use redevelopment of the Office Depot campus, including 500 apartments, 43 KSF of retail, and a 36 KSF Equinox.

• Store closures: Joann (JOANQ) announced plans to close 500 stores nationwide, over half of its footprint, amid its second Chapter 11 filing, as part of its strategy to downsize and restructure.

• Garden sale: Urban Edge Properties (UE) sold a $25M portion of Bergen Town Center East in Paramus, NJ, for multifamily development, joining a growing trend of housing in retail spaces.

• Seattle strength: Despite a 26.3% vacancy rate, Seattle's office sector grew to $599M in sales and a strong pipeline of new projects, while conversions to residential are gaining momentum.

• Fort Lauderdale sale: Bradford Allen bought the 76%-leased Las Olas Centre I & II for $208M, with plans for $25M in renovations.

• SWAMP Act proposal: Bipartisan lawmakers are pushing to relocate federal agencies from DC to reduce costs and decentralize government, with exceptions for national security agencies.

• Big, beautiful plans: MGM Resorts (MGM) aims to lead the industry in 2025 with over 2.2M room nights booked, driven by strong convention and meeting bookings.

• Travel rebound: Wyndham (WH) predicts stronger domestic performance in 2025, fueled by infrastructure projects and growing leisure traveler confidence.

📈 CHART OF THE DAY