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Good morning. Blackstone Real Estate Partners X will acquire Retail Opportunity Investments Corp. (ROIC) in an all-cash deal valued at $4 billion, marking another strategic expansion into grocery-anchored retail.

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Market Snapshot

*Data as of 11/6/2024 market close.

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• Crystal ball: Famed economist El-Erian warns Americans that low inflation doesn't mean price drops are imminent. The risk of a deflation spiral could even harm the US economy.

• Raise 3x the equity: Accelerated capital raising is within reach. Like Helu Capital, who increased equity raised by 300% with Agora, you can streamline communication, centralize documents, and gain the operational efficiency needed to focus on growth. (sponsored)

• Welcome news: JLL’s Q3 earnings were a welcome surprise for shareholders. Revenue from its market advisory segment was up 34% YoY, while a strong office leasing rebound drove growth.

• Rate cuts: The Federal Reserve is anticipated to announce a 0.25% interest rate cut today, with attention shifting to Chair Jerome Powell’s guidance on future monetary policy.

• Trump triumphs: Donald Trump's return to the White House signals potential positive developments for CRE, though challenges loom from proposed tariffs and TBD immigration policies.

• Credit growth leader: Former JPMorgan Chase (JPM) executive Steven Schwartz was just appointed EVP at RXR to lead its real estate credit arm. He aims for $1B in loans in his first year.

• Denver's delight: Downtown Denver voters approved borrowing $570M for DDDA expansion without a tax hike, with an option to reach $847M, including interest.

• Blocked: California voters overwhelmingly rejected Proposition 33 (again), which means the state will retain its current rent control limits. Real estate groups raised $66M to prevent it from passing.

• Positive momentum: The US multifamily market saw a 20 bps vacancy decrease in Q3 and 153K units absorbed, although flat rents pose challenges.

• Money moves: A JV between Davean Holdings and Meadow Partners secured $110M to refinance an NYC multifamily portfolio with 18 properties and 112 units.

• Foreclosure frenzy: Houston's multifamily market faces deepening distress, with $340M in loans tied to just 12 properties at a recent foreclosure auction.

• Back to campus: Landmark Properties plans to transform a surface lot near Georgia Tech into a 2K-bed student housing tower, capitalizing on strong demand in Atlanta’s student housing market.

• If you can’t keep it, store it: TPG (TPG) and Andover Properties secured a $315M loan for a 43-property self-storage portfolio, featuring 3.1 MSF of storage space across 24 markets.

• Warehouse wealth: Stonepeak purchased the Independence Logistics Park in the Houston area for $244M, making it the city's largest warehouse trade since 2010.

• Unveiling the outdoors: The industrial outdoor storage (IOS) sector has seen impressive growth in the last five years, attracting institutional investors with high demand and low vacancy rates.

• Back to Suburbia: Despite recent challenges, malls are seeing renewed foot traffic thanks to a shift toward entertainment, dining, and unique experiences that are reshaping their appeal.

• Search for safety: Office tenants are flocking from Downtown Los Angeles to Pasadena, Century City, and El Segundo for safety reasons.

• Manhattan boom: Vornado Realty Trust (VNO) anticipates the highest Manhattan office leasing since 2014, with average starting rent hitting all-time highs soon.

• Default drama: Chateau Group allegedly defaulted on a $2.1M debt for the Le Meridien Pasadena Arcadia, despite steady occupancy rates and strong average daily hotel rates in the LA area.

• Hotel refinancing: Mesa West Capital issued a $50M, 5-year loan to refinance the 193-key Thompson Savannah hotel, allowing its owners to retire previous construction debt.

A MESSAGE FROM REAP CAPITAL

Reap Capital's 2024 Recap

As we welcome new leadership to guide our nation forward, we take a moment to reflect on a phenomenal year of growth and opportunity for our firm. Today, we are reminded that the future of our country is built upon unity, patriotism, pride, and the American Dream.

Let the coming years be a story of progress for all Americans as we continue to uphold the values and rights so many have died to protect. Together, we chart the path forward. We, the People, decide our nation's future. —David Lilley, CEO

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📈 CHART OF THE DAY