Brookfield Raises $16B for Distressed Real Estate Fund

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Good morning. Brookfield's massive Q1 fundraising haul highlights the early-year rebound in CRE and multifamily capital markets—but Q2 may tell a different story.

Today’s issue is sponsored by LendingOne—the nation’s fastest-growing build-to-rent (BTR) and SFR portfolio lender for institutional investors.

Market Snapshot

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• Texas multi-family values are rising: Are you overpaying on taxes? Discover trends, assessment gaps, and opportunities in our 2025 report. Download now to protect profits. (sponsored)

• Policy impact: A proposed repeal of the carried interest tax break could cost up to 1.2M jobs and shrink the private equity, venture capital, and real estate sectors.

• OZ anticipation: Opportunity zone funds raised $810M in Q125 as investors await a likely program extension, which could unlock a wave of capital. 

• Holding steady: The Federal Reserve kept interest rates unchanged despite economic uncertainty, citing the need to wait for clearer data amid ongoing trade tensions and tariff impacts.

• Upscale vision: El-Ad paid $20M for a North Bay Village site entitled for a 94-unit condo tower, quadrupling its 2022 value amid rising luxury development in the area.

• Tech tailwinds: Blackstone President Jonathan Gray sees soaring demand for AI-driven data centers and a looming CRE rebound.

• Brickell bust: Trump’s immigration crackdown is deepening Miami’s real estate slump, with foreign buyers pulling back and home sales falling over 17%.

• Investor momentum: Multifamily investment jumped 33% in Q125 to $28.8B, the sector’s strongest first-quarter showing since 2022. 

• FEMA failure: FEMA declined to activate its Direct Lease program after LA’s wildfires, arguing that sufficient rentals exist despite thousands of survivors being unable to secure housing. 

• Loan refresh: Clipper Equity secured a $160M refinance from MF1 Capital for its newly completed 240-unit Crown Heights development.

• Tax boost: Pending federal tax legislation, including bonus depreciation and pass-through deductions, could benefit apartment owners, though tariffs may challenge new development. 

• Local override: A North Carolina bill aims to curb local zoning authority and fast-track multifamily development, echoing national efforts to boost housing supply.

• Entitlement play: RK Centers is listing its Miami Sears site for over $100M after securing approvals for a 1,050-unit Live Local Act project.

• Supply disruption: New tariffs are cooling industrial construction and reshaping leasing dynamics, as developers pull back amid cost spikes. 

• Funding secured: Holder Properties and Tamarack Investments have landed $71M in financing for a major new industrial park in metro Atlanta. 

• Second chance: As billions in clean energy factory plans are shelved due to tariff and policy uncertainty, pharma, data center, and auto sectors are stepping in to repurpose these rare, infrastructure-ready sites.

• Retail whiplash: Retail saw early 2025 softness with rising vacancies and negative absorption, but limited supply and strong demographic trends point to solid long-term investor potential. 

• Redevelopment risk: Washington Prime’s sale of its Westminster Mall stake could stall Shopoff Realty’s 1,100-home, mixed-use project. 

• Luxury listing: A fully leased luxury retail space on Chicago’s Mag Mile is hitting the market, offering a rare pricing benchmark as the corridor eyes recovery from pandemic-era struggles.

• Campus expansion: NYU signed a 70-year lease for 1M+ SF at 770 Broadway to create a tech and research hub, marking Manhattan’s largest office deal since the pandemic.

• Chicago shift: Holcim will relocate the headquarters of its upcoming North American spinoff, Amrize, to downtown Chicago with a $19M investment.

• Sliding sales: Sales of both single- and multi-tenant office properties dropped in Q125 as high rates, hybrid work, and rising vacancies dragged down demand.

• Unpaid dues: The condo board at 75 Wall Street is suing the Hyatt Centric hotel owner, alleging nearly $490K in unpaid charges that threaten the building's financial stability.

• Blackstone bet: Blackstone bought the 292-room Kimpton Hotel Eventi in Midtown for $175M, betting on NYC’s travel rebound and limited new hotel supply.

📈 CHART OF THE DAY