Brookfield Eyes $10B Bet on Manufactured Housing Giant Yes! Communities

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Good morning. A potential mega-deal could make Brookfield a dominant force in America’s affordable housing market. Plus, Blackstone is acquiring up to $869M in single-tenant lease loans from First Internet Bancorp.

Today’s issue is brought to you by InvestNext—learn how to capture retail investor capital.

🎙️This week on No Cap: Season 4 opens with Owen Thomas, Chairman & CEO of BXP, on leading through crisis, the future of offices, and how AI and gateway cities are reshaping CRE.

Market Snapshot

Deal of the day

TOGETHER WITH INVESTNEXT

Raising Capital from Retail Investors

$7 trillion in retail capital is entering alternatives through 2032, and many of these investors are looking to invest in real estate.

Yet most mid-sized GPs are still focused on institutional fundraising.

Here's what the data shows:

• 70% of high-net-worth individuals would invest in alternatives if properly approached

• Retail investors represent only 16% of alternative AUM despite holding 50% of global investable assets

• Industry reports show mid-market funds demonstrating stronger momentum with retail investors than mega-funds

The firms that understand retail investor expectations and act accordingly will capture new capital sources while those that don’t will miss out on this massive opportunity to acquire new investors.

Download your copy of How to Capture Retail Investor Capital

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• Property pulse: August 2025 saw retail rising, office lagging, industrial cooling, and multifamily steady.

• Loan squeeze: CRE CLO distress rose in August 2025 as delinquencies and special servicing needs increased under refinancing pressure. 

• Net lease love: Blackstone is acquiring up to $869M in single-tenant lease loans from First Internet Bancorp, bolstering its net lease portfolio.  

• Term tradeoff: CRE investors are favoring shorter loan terms as a steepening yield curve, looming maturities, and tighter underwriting push borrowers toward flexibility over long-duration debt. 

• Builder strain: Tariffs, labor shortages, and financing woes are pushing builders and developers into tighter partnerships to keep projects moving. 

• Yield drop: 10-year Treasury yields slipped to 4% for the first time since April, boosting hopes for Fed rate cuts.

• Dimon says: Jamie Dimon flagged major job revisions as a sign of economic softening, though economists remain split on whether slowing hiring points to recession.

• Portfolio strategy: Multifamily REITs posted steady Q2 results, leaning on strong occupancy and cautious capital deployment while doubling down on Sun Belt growth. 

• Inflation check: August CPI rose slightly, but with weakening labor data, markets still expect multiple Fed cuts this year, offering potential borrowing relief for multifamily developers. 

• Retirement risk: NYC pension funds lost heavily on rent-stabilized apartment bets after 2019 rent reforms slashed property values, leaving retirees with steep losses. 

• Project scrapped: JBG Smith dropped plans for 1,400 apartments in National Landing, citing soaring costs, tariffs, and financing challenges. 

• German buy: German investor Pamera bought a NoHo mixed-use building from Acadia Realty Trust for $49.5M, marking its fifth U.S. acquisition. 

• Density push: NYC rezoning plans in Long Island City, Midtown South, and Jamaica could deliver 36K new homes.

• Storage shift: Q2 self-storage REITs show pricing power returning, narrower gaps between street and achieved rates, and steady discounting amid competition. 

• Pension play: Ontario Teachers’ Pension Plan partnered with Sagard Real Estate on its first U.S. industrial deal, buying a 163K SF Houston-area facility.

• Retail strain: Inflation, tariffs, and falling tourism are dragging down U.S. retail foot traffic, though live events and dollar stores offer rare bright spots. 

• Location premium: LA retail demand is clustering in Class A and experiential spaces, while weaker assets struggle.

• Chapter 11: Eatertainment chain Pinstripes filed for Chapter 11, closing most locations as debt, inflation, and weak spending eroded revenues.

• Talent shift: AI hiring is booming, driving tech job growth and office demand in key markets like San Francisco, Seattle, Toronto, and New York.

• Hints of stability: Cap rates for lower-tier offices eased slightly in early 2025, hinting that capital markets may finally be warming after years of deep freeze. 

• Staying put: OpenAI denied reports it may leave California, reaffirming its San Francisco base while regulators review its for-profit restructuring plans.

• Office refi: SL Green and PGIM secured a $1.4B loan to refinance Manhattan’s 11 Madison Avenue and fund tenant upgrades.

• Market softness: U.S. hotels saw RevPAR fall for the 19th week in 2025, with weak occupancy driving declines despite holiday and sports boosts in select markets. 

• Match point: The U.S. Open drove Queens hotel demand and rates higher, with local bars and restaurants cashing in on the tennis buzz.

• Value disconnect: Hotel REITs are shedding assets as rising capex costs and low stock valuations widen the gap between real estate values and market pricing.

📈 CHART OF THE DAY