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Good morning. Welcome back to CRE Daily! We hope you had a great holiday break. Let’s dive into the news: Multifamily investment in Maryland’s D.C. suburbs has dropped 13% this year as strict rent caps push major investors to the sidelines.

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*Data as of 12/23/2024 market close.

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• CRE’s 2025 outlook roundup: Gain perspectives from 22 leading research and brokerage companies on CRE in 2025.

• Rental slowdown: In October, single-family rental growth slowed to its lowest pace since mid-2020, with annual increases at 1.7% as detached homes and high-end rentals saw stronger demand.

• Affordable transformation: LA approved entitlements for the redevelopment of Rancho San Pedro, paving the way for 1.5K new homes—66% affordable—along with commercial space and parks.

• Zoning for growth: San Antonio's updated transit-oriented zoning encourages high-density mixed-use developments along the Green Line bus rapid transit corridor.

• Transforming DC: Momentum is building to redevelop underutilized federal buildings near the National Mall, with proposals to offload aging properties and create a vibrant mixed-use district.

• Partners no more: Houston's Midway and Orlando-based Parkway Property Investments ended their brief collaboration, with Parkway taking full control of their JV, Parkway Ventures.

• Modest gains: Multifamily rents are expected to grow by 1.5% in 2025, with the Northeast and Midwest driving gains while Sun Belt markets face headwinds from oversupply and high inventory.

• Big CA bets: San Diego continues to attract major multifamily investments, capturing 10% of US trades over $150M since 2023, as investors bank on long-term growth despite flat rents.

• Miramar deal: FCP acquired the 250-unit Alexan Miramar in Broward County, FL, for $67.5M (at around $270K per unit), with JP Morgan (JPM) financing $53M for the newly built complex.

• Chelsea bargain: Prime Group Holdings and Empire Capital secured the Ironworks office complex in Chelsea for $50M, at a nearly $100M discount from its previous valuation.

• Industrial sale: TA Realty acquired the 509.5 KSF Ironwood Commerce Center in Opa-Locka, FL, from Blackstone (BX) for $160M.

• Party over: After nearly 40 years, Party City will shutter over 700 stores by February 2025, citing $800M in debt, sluggish sales, and rising costs, part of a wider trend of retail downsizing in 2024.

• SoFlo’s top leases: Strong demand and low vacancies shaped South Florida's retail market in 2024, with Floor & Décor (FND) leading the region's biggest leases at 66 KSF, followed by Macy’s (M), Nordstrom Rack (JWN), and Eataly.

• Curbside REIT debut: David Lukes' Curbline Properties REIT (CURB) revolutionized retail by institutionalizing unanchored convenience centers, leveraging geolocation data and low capital expenditures.

• Medical intervention: With high office vacancies persisting, more landlords are embracing medical tenants, who offer stability and demand suburban and retrofitted spaces.

• Silicon Valley discount: A former tech college campus in Santa Clara sold for $16M, a 20% loss from its 2018 purchase price, despite its proximity to Nvidia's (NVDA) headquarters.

• Funding secured: Landau and Taubco clinched a $74M loan for the One Kane Concourse in South Florida, which will offer waterfront access and luxury amenities by 2026.

• Leaving the Capitol: JBG Smith sold 2101 L Street NW for $110M, marking one of its last office divestments in Washington, DC.

• Hot, hellish potato: Capstone and Leyad acquired the Ink48 Hotel in NYC’s Hell’s Kitchen for $58M at a $25M discount from its 2019 sale price.

📈 CHART OF THE DAY