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Good morning. Investor appetite is heating up again in the industrial sector, with over $33B in deals closed in just the first half of 2025—despite soft leasing fundamentals and sluggish rent growth.

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*Data as of 08/29/2025 market close.

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• Get your free guide: $7T in retail capital is flowing into alternatives by 2032 — and real estate is high on the list. So why are most mid-sized GPs still chasing institutions? (sponsored)

• Capital Rx: Hammes Partners surpassed its fundraising goal by nearly $100M, closing $445M to invest in stable, cash-flowing healthcare assets—targeting acute care and ambulatory facilities nationwide.

• Tech moves in: NYC’s FARE Act has shaken up the rental scene—AI-powered firms like Spotlight Realty are jumping in with discounted models as landlords adjust to paying commissions for the first time.

• Flipping failure: Overinflated appraisals in Baltimore are rattling the $140B private mortgage sector, where fast-paced lending to small investors is now exposing systemic risks—and catching the attention of Wall Street.

• US GDP: Stronger consumer spending and early signs of AI-driven investment pushed U.S. GDP growth to 3.3% in Q2, up from the initial 3% estimate, per the Commerce Department.

• Green REITs: Fund manager Samuel Adams says discounted REITs—especially in data centers and multifamily—offer strong upside as green buildings gain tenant and investor demand.

• Columbus supply surge: Despite record new supply, Columbus’ multifamily rents jumped 2.6% YoY to $1,389 in H1 2025, while vacancy dipped to just 3.8%—a rare double-win in a high-supply market.

• NYC dealflow: Multifamily transactions in NYC surged in Q2 2025, but average deal size dropped nearly 20%—signaling that investors are chasing value, not volume.

• Breaking records: San Jose’s 948-unit Park Kiely sold for $370M—the largest Silicon Valley apartment sale since 2018, boosted by a state tax break.

• Small bay, big moves: SoCal’s industrial market is turning a corner as tariff uncertainty eases—July port volumes hit records and small-bay assets lead performance, driven by tight supply and resilient tenant demand.

• SoCal sizzle: MetLife offloaded its Golden Coast Portfolio—three industrial assets across L.A. and San Diego counties—in separate sales, signaling continued investor appetite despite a softening market.

• AI infrastructure: Nvidia forecasts global AI infrastructure spending to hit $4 trillion by 2030, even as its revenue growth cools—Q2 data center sales surged 56% to $41.1B, fueling aggressive U.S. real estate expansion.

• Broadway block up for grabs: Site Centers is selling its fully leased, 132K SF Mariano’s-anchored retail property in Chicago’s Lakeview as it pivots away from grocery-anchored centers.

• Beautiful earnings: Ulta’s Q2 sales hit $2.8B, up 9.3%, as fragrance boomed and the Space NK deal boosted growth—pushing the retailer to raise its full-year forecast.

• Legacy Park: Vestar is planning a massive 200-acre mixed-use project in Mesa with 2,400 units, 300K SF of retail, a resort, and 3.4M SF of office space.

• Classical mandate: President Trump has signed an executive order requiring new federal buildings to default to classical architecture—reviving sidelining brutalist and deconstructivist designs.

• High rise, hard fall: One California Plaza—once valued at $465M—is now in receivership after dropping to $121M in value, marking another major office distress case in downtown L.A.’s 33% vacancy environment.

• Back for another: Portland’s Menashe Properties is under contract to buy the 31-story tower at 125 S. Wacker—its second Loop deal in two years—as office pricing continues to slide.

• Refi secured: MetLife and MDM Group secured a $79.3M refi for the 357-key JW Marriott Marquis Miami, following a recent $16M renovation and with more upgrades planned for 2026.

• Points for experiences: Hyatt is partnering with Way to power on- and off-property experiences, letting loyalty members earn and redeem points on everything from cabana rentals to wine dinners.

A MESSAGE FROM GREYSTEEL

DFW Multifamily Forum: Insights & Networking

Join Greysteel on Thursday, September 18 at Sidecar Social in Addison for a morning of market insights and industry connections. Start with breakfast and networking, followed by a keynote address and an expert panel covering existing inventory and new developments in DFW multifamily.

Gain diverse perspectives, strengthen relationships, and leave with actionable takeaways on ownership and investment trends shaping the region.

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