Kamala Harris Takes on Housing in Latest Economic Plan

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Good morning. On Friday, Kamala Harris unveiled her economic agenda. At the center of her speech was the housing market and a plan to boost supply and curb Wall Street’s increasing control. But will it work?

Today's issue is sponsored by InvestNext—raise capital without limits.

The Holy Trinity: Sanjay Chandra on Leading Investors to $7B Deals

Sanjay Chandra is one of Texas's most-followed investment managers, but his entrepreneurial journey didn’t begin in real estate.

In this episode of No Cap, he shares how his engineering background led him to found American Leather and Trinity Capital.

Market Snapshot

Retailer Bankruptcies

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• Rate speculation: Mohamed El-Erian warns that market optimism surrounding potential Fed rate cuts may be overblown.

• PE fundraising: 1,000+ real estate private equity firms raised $6.5B in H1 2024. Get the full list here. (sponsored)

• Airport revival: A $22 billion plan aims to transform Toronto's former Downsview Airport into a small city.

• Safe haven: Gold reached a record $2,500 an ounce as increased demand was driven by expectations of imminent Fed rate cuts.

• Steep decline: New U.S. home construction plunged in July to its slowest pace since the early pandemic.

• Shedding debt: Medical Properties Trust sold 11 Colorado facilities to UCHealth for $86 million, continuing its strategy of reducing debt.

• Condo crisis: Florida's aging condo market is facing a "catastrophic" downturn as new inspection regulations drive a surge in listings and deter buyers.

• Downsizing: Proptech firm VTS lays off 20% of its staff to focus resources on key growth areas.

• Teacher salaries: A Redfin study reveals that teachers can only afford 47.9% of rental apartments within a reasonable distance from their schools, a slight improvement from last year.

• High-value acquisition: SCS Development Company has purchased Paragon at Old Town, a 163-unit multifamily property in Monrovia, California, for $87.25 million.

• Hot market: Irvine, CA, has become the hottest residential market in the U.S., with home prices soaring 21% amid strong population growth and housing development.

• Boomtown: Cypress Equity Investments plans a $30 million, 700-unit apartment complex in rapidly growing Celina, Texas.

• Housing agenda: Kamala Harris pledges to build 3 million homes and crack down on rental algorithms if elected president.

• Data deal: JK Land Holdings has acquired a 25.29-acre site in Loudoun County, Virginia, for $60 million.

• Hefty bets: Prologis acquires Verizon subsidiary TracFone's headquarters near Doral for $54.5 million, planning to redevelop the site into modern logistics spaces.

• Steady space: The State of Florida purchased a 423,000-square-foot warehouse in Auburndale for emergency supply storage from Dalfen Industrial.

• Bargain shoppers: As inflation drives up costs, consumers are increasingly turning to dollar stores, resulting in a notable rise in foot traffic and repeat visits.

• Grocery-anchored: Longpoint Realty Partners acquires Palm Aire Marketplace in Pompano Beach for $33.1 million, expanding its South Florida retail holdings.

• Extension: 1HWY1, the developer behind the 2.7 MSF Seaport mixed-use project in San Diego, now has until October 2027 to secure necessary approvals and raise capital

• Luxury expansion: Hermès is set to open its first Tennessee store in Nashville’s Wedgewood Village, enhancing AJ Capital's artsy district development.

• Market bottom? Moody's Analytics reports signs of stabilization in the US office market, with seven recent sales over $100M below previous values, offering key price clarity as volumes steady.

• Strong tenant demand: Finmarc Management has purchased a 500,000-square-foot Class A office portfolio in Centreville, Virginia, for $39.36 million.

• Rising rates: The CMBS special servicing rate climbed to 8.30% in July 2024, driven primarily by distress in the office sector, which now stands at 11.25%.

• Seeking alpha: As department stores struggle, Saks Fifth Avenue’s parent company, HBC, is shifting focus to luxury real estate, capitalizing on its $7B property portfolio.

📈 CHART OF THE DAY