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Good morning. Stephen Ross is stepping back from his New York-based company, Related Companies, to lead a newly formed, independent entity called Related Ross.

Today’s issue is brought to you by GSH Group—a concierge approach to owning multifamily real estate.

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Market Snapshot

*Data as of 7/11/2024 market close.

Second Act

TOGETHER WITH GSH GROUP

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The GSH Group has a proven track record of nearly 10,000 multifamily units and an average of 22% IRR across 15 full-cycle deals.

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Deal highlights include:

✅  High returns: Targeted 18% ROI annually.
✅  Short timeframe: Expected 2-3 years.
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Ready to maximize your returns with GSH?

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• Deal flow surges: The June LightBox Monthly CRE Activity Index rose to 93.9 from 87.2 in May, showing growing momentum.

• Biggest hotspot: Miami’s RE market has surged, capturing 5.3% of all US job listings, with average salaries hitting $130K in 2023.

• Growing another arm: Tishman Speyer (TSIB) expands into debt by hiring Amit Rustgi, targeting CRE loans for major US metros.

• Where biz blooms: Virginia is now the top state in the country for business growth, thanks to an excellent education system and infrastructure, earning it a record sixth win on CNBC’s rankings.

• New record: Manhattan renters faced more competition than ever in June, with a record-high 24% of listings leased faster than ever—and after bidding wars, with average rents stable at $4.3K.

• Defaulted deals: Goldman Sachs (GS) and Ballast Investments defaulted on $687.5M in loans, with RBC set to take over 82 buildings in San Francisco.

• Luxury loophole: Greystar plans to exploit a legal loophole to add 140 units to a 355-unit apartment complex near Google’s offices in San Francisco.

• Affordable Bay Area: The Pacific Companies is set to develop 781 low-income tax credit housing units in San Jose and Concord with Safehold.

• Data center dilemma: Data center rents and power costs have surged, with average rents in major North American markets up 20%.

• Chilling expansion: Vertical Cold Storage is ready to acquire its 10th facility, a 109 KSF USDA-certified frozen distribution center in Dothan, AL.

• Denver’s delights: Adler Real Estate Partners bought a nearly 205 KSF Denver industrial property for $37.7M, fully leased long-term at 98%.

• Atlanta expansion: Alterra IOS acquired 3 industrial outdoor properties spanning 28 acres in Atlanta for $22.4M, expanding its regional portfolio to 23 assets.

• Charging into the future: By 2026, BP Pulse will add over 900 ultra-fast charging stations at 75 Simon properties nationwide, supporting all EV models.

• Legal battle unfolds: Union Station in DC is seeing a retail revival as Starbucks returns, with foot traffic up 94% amid a court battle over control of the property.

• Loan default woes: Brookfield Properties defaulted on a $66.4M loan on Town East Mall in Mesquite, TX, representing 40% of the total pool.

• Mega-merger: Albertsons is selling 63 California supermarkets to C&S Wholesale Grocers for $2.9 billion ahead of its merger trial with Kroger.

• Reviving retail: Aspen Real Estate bought the Renaissance III shopping center in Las Vegas for $24.7M and plans to renovate the 40% leased property for $7M.

• E pluribus unum: Miami’s office market bucks the national trend with a low vacancy rate, while the rest of the nation faces a 20.1% vacancy rate, which is only expected to rise.

• Denver defaults: Denver’s CRE market has a delinquency rate of 10.5%, exceeding the national average, and office buildings contribute significantly to the figure.

• Looping in LaSalle: Namdar acquired a distressed LaSalle St. office tower in Chicago’s Central Loop for a little under $20M, a 73% discount from its debt balance.

• Google downsizes digs: Google (GOOGL) is reducing its office space in San Francisco by 54%, leasing 64 KSF compared to its previous 140 KSF footprint.

• Sky-high dispute: Friends of the High Line in Manhattan opposed plans for a development that includes a casino and skyscraper, risking city views.

• Regulatory rumble: The US Supreme Court’s Loper Bright ruling ends a 40-year Chevron (CVX) deference, impacting federal agency regulations, including labor and OSHA.

📈 CHART OF THE DAY