Grocery-Anchored Retail Holds Firm Amid Trade Tensions

Together with

Good morning. Grocery-anchored retail continues to outperform the broader sector, even as tariffs and economic uncertainty rattle consumer spending. Investors are leaning in as grocers once again prove their resilience.

Today’s issue is sponsored by Equity Institutional Services—unlock IRA capital for your next raise.

Market Snapshot

Grocery Gold

TOGETHER WITH EQUITY INSTITUTIONAL SERVICES

Tap into More Capital with IRA Investing

Many capital raisers don’t realize they’re missing out on a significant source of funding.  IRAs hold trillions in investable assets,* and a growing number of investors are ready to put them to work. 

Equity Institutional Services was built to get investors set up, funded, and invested in your fund quickly and without distractions. 

We’re transparent and supportive throughout the process, so you’re never left guessing. You’ll have a direct line to our team, quick response times, and clear communication every step of the way. 

Raise more capital faster and get more time back to focus on your next opportunity. 

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

• Get a Quote: A Class-A office in LA received a $22.4 million C-PACE loan to refinance improvements completed during construction. The loan amortizes over 30 years, and proceeds were used to recapture part of the developer’s original investment. (sponsored)

• Executive unwind: Newmark is buying back $127M worth of shares from Commerce Secretary Howard Lutnick as he follows through on his pledge to fully divest from his private business interests.

• Adaptive reuse: Vanbarton Group is buying a Midtown Manhattan office building for $140M with plans to convert it into residential units.

• BTR boom: As homeownership costs skyrocket, Wall Street is doubling down on the BTR market, fueling billions in SFR investments.

• Prison sentence: Nightingale CEO Elie Schwartz was sentenced to over seven years for misusing $54M in investor funds raised through Crowd Street.

• Downtown divide: DTLA kicked off 2025 with rising retail and office vacancies, but the housing and hotel sectors showed surprising resilience in an otherwise mixed market.

• Commuter boom: Brooklyn, Queens, and Jersey City led the nation in apartment construction over the past decade, as renters sought relief from Manhattan prices without giving up urban access.

• Multifamily focus: Mesirow closed its latest real estate value fund at $1.25B, marking a 66% increase from its predecessor and doubling down on discounted Class A multifamily assets.

• Suburban spike: Multifamily sales in suburban Chicago spiked 65% YoY in March, as family offices and non-local investors target the area’s strong fundamentals and less volatile tax environment.

• Regional risk: AvalonBay is closely monitoring job market uncertainty in its home market of Washington, DC, even as its core coastal portfolio benefits from limited new supply and strong occupancy.

• Storage sentiment: Self-storage REITs saw flat Q1 performance but remain cautiously optimistic for stronger results later in 2025 as seasonal demand and rental rates begin to rebound.

• Tax catalyst: A proposed expansion of bonus depreciation could supercharge US manufacturing by allowing companies to deduct full real estate costs upfront.

• Bio bet: Eli Lilly is eyeing a $5.9B biomanufacturing facility in Houston’s Generation Park, a potential economic windfall that hinges on tax incentives and infrastructure readiness.

• Data deal: 26North is in late-stage talks to acquire DigitalBridge, the $100B digital infrastructure fund manager, in a move that could reshape the data center investment landscape.

• Prime offering: Miami Worldcenter’s fully leased retail component has hit the market, with developers seeking over $300M for the 273 KSF open-air shopping center.

• Change in leadership: Bath & Body Works has named former Nike executive Daniel Heaf as CEO amid a broader effort to accelerate growth and transformation.

• Grocery grab: Longpoint has purchased Grand Covina Plaza for $25M, a 112 KSF grocery-anchored retail center near LA.

• Sale speculation: Paramount Group is exploring a potential sale or restructuring amid executive exits and scrutiny over millions in undisclosed payments tied to its CEO.

• Trophy refi: Carr Properties and National Real Estate Advisors secured a $650M SASB loan for Boston’s One Congress tower, highlighting a comeback for single-asset, single-borrower deals.

• Federal footprint: Despite only a slight reduction in square footage, federal office rent obligations ticked up in April, reflecting a cautious and complex GSA lease strategy.

• Distress signal: Portland’s tallest office tower, once a premier address, is now half-empty and up for sale at an 80% discount, symbolizing the city’s deep downtown distress.

• Wynn withdraws: Wynn Resorts has officially dropped its bid for a NYC casino license, citing political headwinds, rezoning challenges, and better capital uses.

• Breaking ground: Eric Trump is heading to Vietnam for the groundbreaking of a $1.5B resort development—the Trump Organization's latest international play.

• Wine country: Boutique hospitality brand Appellation is rolling out four new hotels across Northern California, with a local-first, culinary-forward twist.

Top Investors Are Buying This “Unlisted” Stock

• SoftBank and Maveron invested in homeownership disruptor Pacaso

• They’ve made $110M+ with luxury real estate co-ownership

• Now, after reserving the Nasdaq ticker PCSO, they’re letting investors get a piece for $2.80/share.

Invest before May 29.

_{This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals. Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC.}

📈 CHART OF THE DAY