$4.3B Bet on Beverly Hills Megaproject Moves Forward

J.P. Morgan and Vici back a landmark Beverly Hills project with billions in fresh capital.

Nina Dale
March 25, 2026

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Good morning. One Beverly Hills just landed $4.3B in financing, another sign that ultra-luxury development is still commanding big capital.

Today’s issue is sponsored by Bullpen—see how asset management salaries and bonuses are holding up in 2026.

💻 Webinar Tomorrow: Learn how flood zone risks can derail deals, and the strategies owners are using to cut insurance costs, protect refinances, and unlock hidden NOI. Register to attend or watch the replay.

CRE Trivia 🧠

What type of tenant is increasingly filling vacant retail space?

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Market Snapshot

S&P 500

GSPC

6,556.37

Pct Chg:
-0.37%

FTSE NAREIT

FNER

767.46

Pct Chg:
-0.60%

10Y Treasury

TNX

4.368%

Pct Chg:
-0.024

SOFR

30-DAY AVERAGE

3.66%

Pct Chg:
-0.00

*Data as of 3/24/2026 market close.

Deal Spotlight

$4.3B Bet on Beverly Hills Megaproject Moves Forward

View of One Beverly Hills from Santa Monica Boulevard | Foster + Partners

A massive financing package is fueling one of the most ambitious mixed-use luxury developments in the U.S.

By the numbers: Cain and Eldridge Industries secured $4.3B in financing for the $5.2B One Beverly Hills project, including a $2.8B J.P. Morgan loan and $1.5B from Vici, signaling strong demand for trophy assets.

What’s being built: The 17.5-acre project will combine luxury residences, hospitality, and retail, including two towers, a revamped Beverly Hilton, and a new Aman hotel and condos. About 10 acres will feature landscaped gardens, creating a destination-style lifestyle hub.

Luxury demand: Developers cite strong early sales and commitments from luxury brands like Dolce & Gabbana and Casa Tua Cucina, with residences ranging from 2,550 SF units to 25,000 SF penthouses targeting ultra-wealthy buyers.

Economic impact: Construction began in late 2024, with completion slated for 2027–2028. The project is expected to generate about $40 billion in economic activity over 30 years and create thousands of jobs.

Capital confidence: Backers like Vici, which also invested $300 million earlier, are doubling down on high-end experiential real estate in top-tier markets. CEO Ed Pitoniak said the firm has strong “conviction in the strength of high-end experiences in world-leading destinations.”

➥ THE TAKEAWAY

Elite investments: In a market still facing uncertainty, capital is concentrating at the top where scarcity, branding, and global demand align, making projects like One Beverly Hills a key signal of where institutional money feels safest.

TOGETHER WITH BULLPEN

Asset Management Comp Isn’t What You Think

Most CRE professionals think asset management is the “safe” seat.

And right now, they’re not wrong.

Asset management bonuses are holding up better than acquisitions—but much of that compensation is tied to performance hurdles set in a very different rate environment.

So what does pay actually look like?

We analyzed real compensation data across major markets, from Analyst to Head of Asset Management—plus bonus trends and how firms are hiring in 2026.

Access the full report below.

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✍️ Editor’s Picks

REITs vs. Rental Properties: Both can generate income—but they serve very different roles in a portfolio. Understand the trade-offs between liquidity, control, and long-term growth. (sponsored)
Refi reality: March 2026 CMBS maturities total $3.18B with limited distress but mounting refinancing risk concentrated in retail, office, and mixed-use assets.
Agency expansion: Zions agreed to buy Basis’s agency lending business, adding Fannie Mae DUS and Freddie Mac Optigo programs plus related mortgage servicing rights.
New diligence standard: Data rooms shouldn’t slow you down. Tower cleans, organizes, and structures messy uploads instantly so your team can focus on underwriting, not file cleanup. (sponsored)
Cash disclosure: A federal judge struck down the Treasury rule requiring disclosure of residential all-cash buyers, halting a new anti-money-laundering reporting regime.
Parking premium: A UCLA survey found parking construction costs vary sharply by city, with structured and underground stalls becoming a major urban development expense.
Reporting blueprint: Large LPs and consultants launched an investor-led real estate data model to standardize reporting.

🏘️ MULTIFAMILY

Conversion pipeline: Office conversions reached 90,300 future apartments in 2026, representing 47% of all adaptive reuse units in the pipeline.
Senior momentum: Senior housing entered 2026 with high occupancy and low inventory growth, supporting continued occupancy and NOI gains.
Tourism foothold: Tourism-heavy states are emerging as strongholds for single-family rentals.
Bankruptcy auction: A bankrupt developer’s 14,000 lots and development sites are headed to auction.

🏭 Industrial

Corridor growth: Inland markets are taking the lead in industrial growth as global trade dynamics reshape demand.
Garden state: EQT bought the 2M SF Forest Park Corporate Center in South Jersey for $309M, expanding its East Coast industrial footprint.
Moratorium push: Orange County and Apex are weighing one-year moratoriums on large data centers as local officials revisit zoning and land-use rules.
Trader swap: Ares is nearing a $650M purchase of a 36-property industrial portfolio from EQT.

🏬 RETAIL

Elite retail: Top-tier malls are outperforming the broader retail sector with surging sales and occupancy driven by affluent consumers and Gen Z demand.
Pentagon refi: Simon and IMI are preparing to close a $465M refinancing for Pentagon City mall, office, and hotel assets.
Wynwood leasing: H&H Bagels, Sanguich, and three others pushed Wynwood Plaza’s 26,000 SF retail component to more than 40% leased.

🏢 OFFICE

Campus commitment: OpenAI leased a five-building, 450K SF office campus in Mountain View, deepening its Bay Area footprint.
Vintage pressure: Office distress is building around five-year 2021 and 10-year 2016 CMBS vintages as extension-era loans face 2026 workouts.
Market foreclosure: Rialto is pursuing foreclosure on the 35,000 SF office building at 580 Market Street after a $15.7M loan matured unpaid.

🏨 HOSPITALITY

Hotel trouble: CIM filed a $150M foreclosure suit against the Goodtime Hotel, alleging the celebrity-backed property’s owner failed to repay the loan.
Fraud setback: A New York judge dismissed Core Club’s fraud claims against Michael Shvo, finding the allegations did not meet the legal definition of fraud.

A MESSAGE FROM WHITE LABEL STORAGE

Is Self Storage at an Inflection Point in 2026?

White Label Storage's 2026 Industry Report reveals where the market stands and what separates the operators winning in it:

92.6% same-store REIT occupancy vs. 87.2% at independents, and what’s driving the gap
$875B in CRE debt matures in 2026, creating a major acquisition window
New supply projected to drop from 78M sq ft to 20M by 2027, easing pipeline pressure

Get the insights you need for smarter acquisitions and operational investments this year.

*This is a paid advertisement. Please see the full disclosure at the bottom of the newsletter.

📈 CHART OF THE DAY

Cap rates across the 10 largest industrial markets have largely stabilized and converged since the post-pandemic trough, with previously wide pricing gaps narrowing over time.