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Good morning. A sweeping shake-up at the FHFA signals a potential pivot toward privatizing Fannie Mae and Freddie Mac, with high-stakes implications for U.S. housing finance and federal revenues.

Today’s issue is brought to you by Lev—the data and workflow platform for CRE financing.

🎙️ No Cap Podcast – In this week's episode of the No Cap podcast, Jack and Alex chat with Albert Lojko, President of LightBox, about the necessity for standardization in commercial real estate to drive real innovation.

Market Snapshot

*Data as of 03/24/2024 market close.

privatization in motion

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• Smarter deals: Nuvos is building an AI-powered platform to automate deal screening and presentations, helping you move faster and work smarter. Fill out the form and get 1 month free at launch. (Sponsored)

• Bank squeeze: Rising CRE delinquencies and looming loan maturities are pressuring regional banks, forcing them to extend troubled debt while private lenders fill the gap.

• Bessent's bet: Treasury Secretary Scott Bessent's push to cap 10-year bond yields through debt issuance control and fiscal policy is forcing Wall Street to rethink its forecasts.

• Fifth Avenue coup: Gary Barnett has finalized a $175M site assemblage for a 33-story office tower on Fifth Avenue, featuring Manhattan’s first Ikea superstore.

• Wellness destination: Therme Group is set to deliver a massive health and recreation complex in Southeast Washington, D.C., marking a major step in transforming Poplar Point.

• Debt trouble: Houston tops WalletHub’s list of U.S. cities in financial distress, with TX and FL dominating the top 10 as residents struggle with high debt and bankruptcy.

• Foreclosure threat: A storm-battered Houston apartment complex lost over half its value, with owner Kalkan Capital defaulting on a $54M loan as occupancy plunged and foreclosure looms.

• Prime view: Naftali Group is set to acquire the upscale 800 Fifth Avenue rental tower overlooking Central Park for over $800 million, marking one of Manhattan’s priciest multifamily trades amid surging investor demand.

• Miami deal: Ivan Herrera’s Unicapital paid $72M for 850 Living, an apartment complex tied to the late Sergio Pino, resolving a foreclosure lawsuit and ongoing estate disputes.

• Building big: Denver-based Avanti Residential is launching a development arm led by industry veteran Kyle Henderson to focus on ground-up multifamily and BTR projects.

• Supply slows: Apartment completions fell nearly 16% YoY in Feb, while new multifamily starts remain subdued, setting the stage for potential rent growth later in 2025.

• EV push: Hyundai (HYMTF) is set to invest $20B in U.S. manufacturing, including a $5B steel plant in LA and a new automotive plant in GA.

• Storage play: SROA Capital acquired its 12th South Florida self-storage facility for $17M, expanding its footprint in a high-demand market with some of the nation’s highest rental rates. 

• Industrial sale: Stonemont Financial Group sold a 348KSF Lakeland industrial facility to a MetLife Investment Management client after securing LG Electronics as a full-building tenant.

• Shaky recovery: While the retail sector has rebounded, consumer confidence is slipping in 2025 as economic uncertainty, tariffs, and shifting shopping habits reshape the industry.

• Retail shuffle: Big-box closures are reshaping the D.C. retail landscape, but strong demand and creative leasing strategies are keeping vacancies short-lived.

• Big Lots buyout: Ocean State Job Lot is acquiring 15 Big Lots leases across the Mid-Atlantic and Northeast as part of its expansion strategy fueled by bankrupt retail takeovers.

• Park Ave Power: While much of NYC’s office market struggles, Park Avenue thrives with low vacancies, high rents, and continued demand from top financial firms.

• Federal sell-off: The GSA has restarted federal property sales with a scaled-back list of 8 buildings, following backlash over its earlier, more aggressive 443-property sell-off plan.

• SF office revival: San Francisco’s office market is showing signs of recovery, with AI firms driving leasing demand and the city finally shedding its last-place ranking for return-to-office rates.

• Chicago's hotel boom: Developers are pushing major hotel projects in Chicago, from Fulton Market to the South Side, while distressed properties change hands and lenders grapple with troubled debts.

📈 CHART OF THE DAY