In the News

Miami developer Ytech has begun construction on The Residences at 1428 Brickell, an 860-foot luxury high-rise partially powered by solar energy through a “solar backbone” of 500 photovoltaic-integrated windows. This innovative 70-story tower will generate up to 175 megawatts of clean energy annually, reducing carbon emissions by 4,700 tons without relying on tax incentives. Featuring 195 fully furnished units priced from $3 million to $60 million, the project caters to Miami’s growing demand for larger, high-end condominiums. With over 50% of units presold, the building will include wellness-inspired amenities and is set to open in 2028, contributing to Miami’s status as a “vertical city.”

Blackstone, a major private equity firm, has agreed to acquire a majority stake in Jersey Mike’s Subs for around $8 billion, aiming to accelerate the sandwich chain’s expansion. Jersey Mike’s, the second-largest U.S. sandwich chain with over 3,000 locations, plans to leverage Blackstone’s expertise in growing franchise businesses to enhance U.S. and international growth, as well as invest in technology and digital transformation. Despite challenges in the restaurant industry, franchisors like Jersey Mike’s continue to attract investors due to their strong cash flow and growth potential. Founder and CEO Peter Cancro, who has led the company since 1975, will retain a significant stake and continue managing operations. The deal reflects Blackstone’s broader strategy of investing in high-growth franchises, adding to its recent acquisitions in the dining and hospitality sectors. Completion is expected in early 2024.

The Washington Post has announced a return to a five-day in-office workweek starting next year, ending its remote and hybrid policies established during the pandemic. Publisher Will Lewis emphasized the importance of in-person collaboration, stating that the company thrives on “great office energy.” Managers are required to return by February 3, 2025, while all other employees will follow by June 2. This shift aligns with similar policies from major companies like Amazon, which also recently mandated full-time office attendance. The move has faced criticism from the Washington Post Guild, which argues that it may disrupt productivity rather than enhance it.

Voters across several states and cities made significant decisions regarding housing and property taxes during the recent Election Day. In Charlotte, North Carolina, residents approved a $100 million bond for affordable housing and an additional $62 million for neighborhood enhancements. Meanwhile, North Dakota voters rejected a proposal to change local funding structures for public services, and Arizona passed a measure allowing homeowners to seek tax refunds if local governments fail to address nuisances associated with homelessness. Additionally, Rhode Island voters approved a $120 million allocation for affordable housing, while Florida homeowners supported an amendment to adjust property tax exemptions annually for inflation. In Denver, however, a proposed $100 million bond for affordable housing did not gain enough support.

The U.S. office market shows signs of stabilizing as more companies, including Amazon and Dell, call employees back to the office, with one-third of firms now requiring in-office attendance five days a week. This shift has benefited landlords, particularly as newer, amenity-rich spaces attract higher occupancy. Although office vacancies remain high, at 13.8%, and distressed office loans are rising, the demand for well-located and modern properties is improving. Some firms, like HSBC, report increased attendance in newly upgraded spaces, while investor interest in distressed properties is also growing amid a modest recovery in the sector.

Hurricane Milton threatened over $1 trillion worth of commercial property in Florida, with more than 235,000 properties at risk of exposure to dangerous winds. The storm’s path included 44,122 industrial spaces, 78,916 retail properties, 42,387 office buildings, 64,857 apartment buildings, and 5,056 hotels. While initial worst-case estimates projected up to $175 billion in losses, the actual damage was less severe, with preliminary estimates forecasting losses and cleanup costs of $75 billion. The storm’s impact was particularly significant for the lodging sector, with many hotels forced to shut down temporarily and offer free cancellations.

Glenstar Logistics and Columnar Investments have sold Tri-County 75, a 72-acre industrial park in Fort Myers, Florida. The park consists of four buildings totaling 818,000 square feet and is 95% leased to multiple Fortune 500 tenants, including American Bottling Co., Ferguson Enterprises, and Costco Wholesale. The development was completed in late 2023 and quickly leased due to its easy access to I-75 and Southwest Florida International Airport. While industrial demand remains positive in the Fort Myers area, recent completions have outpaced absorption, though vacancy rates are still below the national average.

About $749 million of its general office loans are for properties in the New York City market, representing about 14% of its total office loan book. The New York loans are about evenly split between offices located downtown and in the suburbs. The bank’s second-largest market for general office loans is Washington, D.C., where all properties are in the suburbs. Citizens holds $467 million of general office loans in the Washington market.

Hurricane Milton made landfall on October 9 near Sarasota, causing heavy rainfall and flooding across Tampa Bay, particularly in Pinellas and Hillsborough Counties. This followed the devastation from Hurricane Helene, which brought significant storm surges less than two weeks earlier. The multifamily housing sector appears to be the most affected, with numerous properties experiencing flood damage, particularly on first floors. Construction delays are expected, and short-term spikes in leasing may occur as displaced residents seek temporary housing. However, these gains could be temporary, similar to trends observed after Hurricane Ian in 2022.

Invitation Homes, the largest U.S. single-family rental landlord, settled a $48 million case with the FTC over allegations of deceptive practices, including hidden fees, unfair eviction policies, and improperly withholding security deposits. The settlement, aimed at refunding harmed renters, requires the company to improve transparency in lease pricing and security deposit handling. The FTC alleged Invitation Homes overcharged renters with undisclosed fees and engaged in unfair eviction practices during the COVID-19 pandemic. Despite the settlement, Invitation Homes maintains it committed no wrongdoing and continues to focus on improving customer experiences. This case highlights growing scrutiny of corporate landlords amid rising housing costs.

Miami is experiencing a surge in supertall skyscraper development, with seven towers over 984 feet high under construction, marking a historic first for the city. The Waldorf Astoria Hotel and Residences Miami, at 1,049 feet, is the furthest along, driven by an influx of wealth and companies into South Florida. Despite environmental and geographic challenges, such as limestone terrain, high water tables, and FAA height restrictions, developers are eager to capitalize on the booming real estate market. The concentration of supertall projects within a small area could transform Miami’s skyline, rivaling New York and Chicago in height. However, the complexities of building on unstable ground and preparing for storms make these projects particularly costly and difficult.

Invitation Homes, the largest single-family home landlord in the U.S., reported over $200 million in investment activity in the third quarter of 2024. The company entered agreements to acquire 580 homes in Tampa, Denver, and the Carolinas, most of which were already completed. The acquisitions underscore the company’s strong relationships with homebuilders, as it continues to grow its build-to-rent portfolio, with plans to invest $1 billion in home purchases in 2024. Additionally, Invitation Homes secured a new $3.5 billion credit facility to refinance previous debt at a lower interest rate. Despite potential slowdowns in build-to-rent construction, Invitation Homes sees ongoing demand in its markets, driven by a lack of housing supply.

By Louis Llovio Summary: Publix Super Markets has acquired a seven-property grocery-anchored portfolio for $223.85 million, including the Gladiolus Gateway shopping center in Fort Myers. SVN Saunders Ralston Dantzler brokered $26 million in conservation easements...

Parkland, a Canadian fuel supplier and convenience store owner, is selling its Florida business, including 100 retail locations, as part of its strategy to divest non-core assets. This move aligns with the company’s broader goals of organic growth, cost reduction, and supply chain optimization. Despite challenges in the U.S. market, particularly in fuel volume declines and job cuts, Parkland aims to focus on higher-return opportunities and maximize shareholder value. The Florida sale is expected to be completed over the next 12 to 18 months, with no broker yet identified. Parkland’s U.S. retail portfolio will be cut in half following the sale.

By Moira Ritter CoStar News   Summary: The residential real estate industry is quickly adapting to new compensation rules, which have disrupted traditional practices. These changes, stemming from a legal settlement, require buyer brokers to have signed agreements...

By David Holtzman CoStar News   Summary: Critics argue that the federal home loan banks are not doing enough to address the housing crisis, despite generating $725 million last year for affordable housing. The 11 banks resist efforts to increase their...