FHFA Ups 2025 Multifamily Loan Caps by 4%

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Good morning. Fannie Mae and Freddie Mac are set to support even more rental housing in 2025, with the FHFA raising their loan purchase caps by over 4% compared to 2024.

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• Dynamic duo: Cushman & Wakefield (CWK) appointed Marla Maloney and Brad Kreiger as co-CEOs for the Americas, aiming to boost growth after a strong Q3.

• Landlord dispute: Medical Properties Trust moves to assert control over three California health care units after Prospect Medical defaults on rent payments.

• Rate relief: Miami developer Jorge Perez urges "badly needed" interest rate cuts to offset soaring construction costs and sustain commercial real estate demand.

• Debt surge: US blue-chip bond issuance hit $1.4T in 2024, the second-highest figure ever recorded, as firms race to lock in favorable borrowing conditions.

• Market climb: Goldman Sachs (GS) predicts the S&P 500 will hit 6,500 by the end of 2025, driven by ongoing economic recovery and steady earnings momentum.

• A tale of two markets: CoStar reported that while annual multifamily rent growth remained steady at 1.2% in Q3, there were significant rent growth variations in local submarkets across the country.

• Privatization push: Discussions about privatizing Fannie Mae (FNMA) and Freddie Mac (FMCC) intensified under a second Trump administration, with complex affordable housing reforms in focus.

• Strong demand: Thompson Thrift sold the 214-unit Citadel at Castle Pines near Denver to RREEF Property Trust (ZRPTAX) for $101M, highlighting a booming market despite a dip in per-unit prices.

• Sunny financing: Clearline Real Estate secured $95M in loans for Excel Miami Apartments, led by Jenny Bernell in the Arts District.

• Doubling down: EQT Exeter expanded across the US with 33 new distribution buildings totaling 5MSF and is poised for rapid industrial sector growth.

• Construction slump: Industrial construction completions hit a low, with just 76 MSF completed in Q3, and there are expectations of further declines in the coming quarters.

• Storage gold rush: Buchanan Street Partners bought a medical office site in Inland Empire and plans to repurpose it for a 123 KSF self-storage facility, part of its $500M portfolio.

• Franchise frenzy: Blackstone (BX) will acquire a majority stake in Jersey Mike’s Subs, bringing the fast-casual chain’s valuation to $8B, while boosting the brand’s global presence.

• Sales slowdown: Lowe’s (LOQ) Q3 sales dipped 1.1% as high interest rates curbed big home projects, though strong online and professional sales softened the blow.

• Java jolts: Smaller coffee chains are challenging Starbucks (SBUX) in the net lease market, with new locations near Syracuse offering both drive-up and walk-up services.

• For the next generation: Vanderbilt University spent $66.9M on a Park Place shopping center in Nashville, part of its $260M in land acquisitions for a campus expansion.

• Taking the L: A  new NYC office building at 799 Broadway sold for 6% below its current $255M debt, highlighting steep hurdles in the office market amid a broader 71% occupancy.

• High-rise expansion: Balyasny Asset Management secured 164 KSF at 767 Fifth Ave in NYC, occupying the 12th, 21st, 23rd, 34th, and 35th floors.

• DC drama: A foreclosure auction has been set for a 580 KSF Washington, DC office building with a $302M loan after a major tenant departure, and amid high vacancies.

• Kentfield splurge: California Governor Gavin Newsom bought a Kentfield mansion from Hyatt heir Daniel Pritzker for $9.1M, or 7% over asking.

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