Together with

Good morning. Self storage is back in the spotlight. Q1 saw a surge in sales volume and pricing as investors zeroed in on supply-starved suburbs and growth markets across the US.

Today’s issue is brought to you by FarmTogether—diversify your portfolio with income-producing farmland.

🎙️This week on No Cap Podcast, RockStep Capital CEO Andy Weiner breaks down why the retail apocalypse was overblown and how his team is turning forgotten malls into durable cash flow machines.

Market Snapshot

*Data as of 07/10/2025 market close.

SMART STORAGE

TOGETHER WITH FARMTOGETHER

This California Farmland Investment Targets a 9.4% Net Cash Yield

FarmTogether’s latest offering, Landmark Mandarin Grove, is an 80-acre citrus orchard in California’s Central Valley with a strong operating track record and subject to extensive due diligence.

Key deal terms:

• Target Net IRR: 11.1%

• Target Net Cash Yield: 9.4%

• Leverage: None

• Target Hold Period: 10 years

• Investment Minimum: $15K

Structured through a crowdfunded model, this opportunity is open to accredited investors seeking stable income and long-term appreciation potential outside traditional commercial real estate.

Farmland generates income from crop production and operator agreements, offering exposure to a hard asset with fundamentally different return drivers than traditional rent-based real estate. Landmark Grove is now live and accepting investments.

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

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• Capital strength: REITs weathered early 2025 volatility and tariffs, maintaining strong balance sheets and eyeing growth as transaction activity picks up.

• DTLA comeback: Downtown Los Angeles is showing early signs of recovery as investment returns and civic cleanup efforts gain traction ahead of the 2028 Olympics.

• Motorhome mansions: High-end RV parks now feature $1M+ lots and luxe amenities like casitas, pools, and wine cellars, attracting affluent full-time travelers.

• Funding fixes: To combat rising costs and stalled projects, some states have launched new tax credits and financing tools to jump-start affordable housing development.

• Tech titans: The US, China, and India dominate global tech talent, emerging as top hubs for innovation and workforce strength.

• Hard assets: Hines is doubling down on CRE, forecasting stagflation over the next 5–10 years.

• OZ overhaul: Opportunity Zones are now permanent, but with new rules and delayed rollout until 2027, investment is expected to slow in the meantime.

• Soft market: Asking rents fell 0.5% YoY in June as high supply gives renters more negotiating power.

• Faith flip: Vanbarton Group secured a $250M loan from Eldridge to turn the former NYC Archdiocese HQ into a 26-story residential tower.

• Live local: Midtown Capital Partners is proposing a 348-unit, 22-story tower in Miami’s Little River under Florida’s Live Local Act.

• Rent-controlled buy: Ballast Investments paid $26M for two rent-controlled San Francisco buildings, signaling confidence in long-term fundamentals.

• Rising vacancies: US warehouse vacancies hit an 11-year high at 7.1% as trade uncertainty and excess inventory stalled leasing demand.

• Drone deal: Anduril Industries secured a $310M grant from Ohio to build a 5M SF defense manufacturing hub near Rickenbacker Airport.

• Belt tightening: 77% of US consumers say tariffs are straining household budgets, with many trading down to cheaper brands and bracing for more price hikes ahead.

• Space squeeze: Prime Manhattan retail availability hit an eight-year low as leasing surged, though rising costs and tariff fears may slow momentum.

• Retail softens: US retail vacancy ticked up to 4.3% in Q2 as store closures hit, leasing slowed, and demand shifted toward scarce modern space.

• Snack attack: Ferrero is buying WK Kellogg for $3.1B, uniting Nutella and Froot Loops as it expands its US footprint.

• Retail exit: Blackstone is listing Flushing’s fully leased Shops at Skyview for $425M, nearly a decade after buying it for $400M.

• Leasing lift: Kimco’s automated vacancy pages drove 2,300+ leads and 10 direct deals, delivering a 6,566% ROI in year one.

• Fading legacy: Sears is down to just eight U.S. stores and could soon shrink to five, as more locations close or are repurposed for redevelopment.

• Office momentum: US office vacancies fell again in Q2 as sales hit $40.8B, with investors favoring high-quality assets despite subdued leasing demand.

• Offer rejected: Orion Properties turned down Kawa Capital’s $126M buyout offer, calling it undervalued, as the REIT bets on an office sector rebound.

• Firm footprint: Law firm office leasing hit a record 4.6M SF in Q1 2025, up 25% YoY, as firms prioritize premium space. 

• Epic campus: Epic’s 13K-person HQ in Wisconsin channels Disney-like charm with treehouses, themed paths, and even AirTagged sheep.

• Amazon expansion: Amazon has increased its lease at Miami’s Wynwood Plaza to 75K SF, reinforcing demand for high-end office space.

• Bay Area bargain: Invesco acquired the Oakland Marriott City Center for $70.2M in a foreclosure auction, down 51% from its 2017 price. 

• Paris purchase: Amancio Ortega, founder of Zara, bought Paris’s Hotel Banke for $113M, his second property acquisition in the city in a year.

📈 CHART OF THE DAY