Floyd Mayweather Strikes $402M Affordable Housing Deal in NYC

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Good morning. Boxing legend Floyd Mayweather is dropping $402M on a massive affordable housing deal in Manhattan. Plus, Prologis beat Q3 earnings expectations as the logistics market shows signs of improvement.

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• Pointing the bipartisan finger: Both Kamala Harris and JD Vance agree that large corporate investors are behind the current housing crisis, though experts argue the real issue lies elsewhere.

• Inflation insights: Goldman Sachs (GS) forecasts a September PCE inflation rate of 2.04%, potentially meeting the Fed's 2% target, pending an official data release.

• Private equity pouncing: The $200B US disaster-restoration industry has seen exponential growth, with predictions it will reach $92B by 2029.

• Mortgage trends: Life insurance CRE mortgages saw a 0.68% total return in Q2, with a 1.17% income return offset by a -0.49% appreciation return.

• Tax trade-offs: New York’s 485x developer incentive faces challenges as rising labor costs and affordability mandates reduce its appeal despite significant tax abatements.

• Reaching new heights: A Harvard report suggests changing codes to allow 6-story buildings with single staircases, potentially adding 130K housing units in MA.

• Paying the price: Suffolk Construction is suing Behring for $20M over delays at a luxury apartment complex, with multiple breaches alleged.

• Property troubles: Aby Rosen's RFR Holding is in contract to sell a Gowanus site for over $160M, turning a third profit.

• Embracing nuclear: Amazon Web Services (AMZN) is partnering with Dominion Energy to invest $500M in small modular reactors (SMRs) to power data centers.

• Outlook narrows: Industrial property giant Prologis (PLD) raised its earnings and revenue but trimmed its 2024 outlook due to tighter warehouse supply amid slowing construction.

• Vacancy surge: The Dallas-Fort Worth industrial vacancy rate rose 11%, and search availability for projects delivered in the past two years topped 30%.

• Holiday spending forecast: The NRF forecasts that this year’s holiday spending will reach $979.5B to $989B, up 2.5–3.5% from 2023, citing inflation concerns as a factor.

• Mall money makeover: URW's Westfield Montgomery mall received a $350M loan extension, which now values the mall at $353M with an outstanding balance of $333.5M.

• Manhattan's resurgence: Manhattan's office market is enjoying a strong rebound, with 5.7 MSF of net absorption in 3Q23, a 17.8% availability rate, and $76.55 PSF rents.

• Coworking collaboration: WeWork partners with Vast Coworking Group, offering WeWork Workplace users access to 75+ locations in 50+ new markets.

• Suburban shuffle: Magna Hospitality Group is selling its Skokie & Evanston hotels acquired during the pandemic, reflecting post-pandemic suburban market trends.

• Hotel harmony: A new licensing bill exempts small hotels under 100 rooms and allows for the subcontracting of "highly technical" work.

📈 CHART OF THE DAY