Private NAV REITs Regain Momentum Amid Public Market Turbulence

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Good morning. After a slow 2024, capital is flowing once again into private NAV REITs, led by a new wave of top-performing vintages. Plus, Amazon has made its first New York City office acquisition since 2020.

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Market Snapshot

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• Capital push: Harwood is teaming with Newmark to recapitalize its Uptown Dallas district amid Y’all Street’s rapid rise.

• Fund expert: Current tariff policies could chill non-US investment into American real estate, potentially raising the cost of capital and impacting fundraising strategies.

• Broker battle: NY real estate groups are suing to block a law requiring landlords to pay broker fees, arguing it will raise rents and disrupt long-standing leasing practices. 

• Equity move: Bill Ackman's Pershing Square is investing $900 million into Howard Hughes Corp., boosting its stake to 46.9% in a move to transform the real estate firm into a Buffett-style diversified holding company.

• Park closure: Six Flags will shut down its Maryland theme park after the 2025 season and market the 500-acre site for redevelopment.

• Sales slump: Florida home prices saw their sharpest drop in over a decade, as high insurance costs, mortgage rates, and condo fees strain affordability.

• Vacancy dip: Multifamily rents rose 0.9% YoY in Q125 as net absorption hit a 25-year high, pushing vacancy down to 4.8% amid slowing new deliveries. 

• Development delays: Trump’s 25% tariffs on key building materials may slow Texas multifamily construction, raising costs and potentially halting rent declines. 

• Housing hack: Developers are creatively converting underused homes into small apartments, bypassing traditional zoning limits to add affordable housing.

• Price gap: Multifamily projects in California cost twice as much as in Texas, driven by longer timelines and steep development fees.

• Unmet demand: Austin leads the US in affordable housing construction, but despite a booming pipeline and strong policy support, it still falls short of serving its lowest-income residents.

• Facility upgrade: Kimberly-Clark will invest $2B to expand US manufacturing with major projects in Ohio and South Carolina, creating over 900 jobs in automation and advanced production. 

• Tenant trends: Single-tenant industrial sales dropped sharply QoQ in early 2025, while multi-tenant assets showed stronger YoY gains and investor resilience. 

• Tech bet: Big Tech is doubling down on data center investments, with Microsoft, Amazon, Google, and Meta all signaling rising capital spending to meet soaring AI demand.

• Mall makeover: Sterling Organization has listed Golf Mill Town Center for sale after securing approvals for a $440M redevelopment, offering a new buyer a shovel-ready, mixed-use opportunity in suburban Chicago. 

• Foot traffic: Retail sales climbed 4.2% YoY in March 2025, buoyed by tax refunds and early shopping ahead of tariff hikes. 

• Flat growth: Wayfair’s Q1 revenue held steady at $2.7B, but its customer base shrank 5.4% as it faces tariff pressures and slower home goods demand.

• Amazon acquisition: Amazon has purchased the 600 KSF 522 Fifth Avenue office tower from RFR Realty, adding to its growing Manhattan footprint amid a broader RTO push. 

• Tenant exit: Temple University plans to vacate its 130 KSF lease at 1515 Market in Philadelphia ahead of schedule, which could push the troubled office tower’s occupancy below 50%.

• Tech takeover: NVIDIA has acquired the 251 KSF Santa Clara Commerce Park from Blackstone for $123M, further expanding its AI-driven footprint.

• Record month: MGM Resorts is projecting a record-breaking April for its Las Vegas properties, driven by strong Marriott-partnered bookings and resilient travel demand. 

• Lot for sale: A fully permitted South Boston site approved for a 72-room hotel is now on the market for $6.5M.

📈 CHART OF THE DAY