Hello Brick Brief readers, 

Thank you for your continued support! Today we’re seeing February housing showing mixed signals, fundraising in retail and niche assets, Amazon scaling its in-house logistics network to new heights, a potential JCPenney retail REIT emerging, and activist pressure pushing Six Flags toward a sale.

🏠 Housing Market Showing Mixed Signals
US February pending home sales unexpectedly rose 1.8% thanks to improved affordability conditions, but remain down 0.8% YoY; US median asking rents fell 1.7% YoY to a four-year low of $1,667 in February after 30 straight months of declines. A Reuters poll is forecasting US home prices to rise 1.8% in 2026 and 2.5% in 2027, with mortgage rates expected to stay near 6% through 2028, as affordability constraints and a 2.5M housing shortage continue to limit a full recovery.

🛒 Fundraising Targets Grocery Retail And Niche Assets
Grocery-anchored retail continues to attract institutional capital, as Nuveen raised $330M to target necessity-based centers supported by low vacancy and rent premiums. Madison Capital launched a $200M fund targeting car washes and c-stores to leverage bonus depreciation, while AWH Partners raised a $100M hospitality income fund focused on stable, cash-flowing hotel assets across growth markets.

Other key news today includes:

Fed faces renewed inflation shocks complicating rate path – Oil surge and overlapping supply disruptions keep inflation above target, delaying or jeopardizing rate cuts (WSJ)

Traders dial back bets against Fed cuts as growth worries build – Markets reprice toward at least one 2026 rate cut as oil-driven inflation fears and softer labor signals collide (Bloomberg)

US private employers added ~9,000 jobs per week in four-week period ending February 29 – Hiring slowed after earlier gains (ADP)

86% of CRE executives view 2026 as year of opportunity – Industry adapts to elevated rates as baseline; investors move forward despite geopolitical and cost pressures (ConnectCRE)

Massachusetts rent control proposal could wipe ~$300B from property values statewide – Tufts analysis shows potential 7.5% tax revenue drop and up to 18% long-term decline (TheRealDeal)

Reuters poll forecasts US home prices to rise 1.8% in 2026 and 2.5% in 2027 as mortgage rates stay near 6% through 2028 – Affordability constraints and 2.5M housing shortage to keep sales muted and delay recovery (Reuters)

US pending home sales rise 1.8% in February, beating expectations – Gains driven by improved affordability conditions; pent-up demand persists despite YoY decline and risk of higher mortgage rates from rising oil prices (WSJ)

US median asking rent falls to four-year low at $1,667 in February – Rents decline 1.7% YoY across all unit types with 30 straight months of declines; Sun Belt markets see deepest drops as multifamily supply catches up while some metros near peak signal potential rebound (Realtor.com)

Zillow launches pre-market listings platform Zillow Preview with Keller Williams, RE/MAX, HomeServices of America and Side – Tool allows agents to market homes before MLS and boost early buyer demand (TheRealDeal)

Compass and Redfin recently announced a partnership to expand distribution of Compass’ pre-market and off-MLS listings across platforms. Zillow is responding with its own platform and brokerage partnerships with Keller Williams, RE/MAX, HomeServices of America and Side to keep that inventory and demand within its ecosystem. Over the last year, Compass and Zillow have been fighting in court over these pre-market and off-MLS listing practices, as both compete to control listing visibility and buyer flow while pushing deeper into each other’s territory

Build-to-rent operators shift from rent concessions to amenities and pricing strategies – Landlords focus on perks and transparency as free rent incentives lose traction (Inman)

Apartment concessions hit 16.6% of units, highest level in over a decade – Discounts average 10.7% or five weeks free rent; rising supply and weaker renter demand pressure multifamily fundamentals (CNBC)

JPMorgan signs 250K SF office lease at South Station Tower from Hines in Boston, MA – Deal brings tower to ~65% leased as bank expands footprint and anchors downtown recovery (Bisnow)

OpenAI subleases 280K SF office space at 1800 Owens Street from Dropbox in San Francisco, CA – Deal pushes firm’s footprint past 1M SF in Mission Bay as AI-driven demand accelerates (TheRealDeal)

Amazon plans to cut USPS package volume by two-thirds – E-commerce giant shifts deliveries in-house as Postal Service faces revenue pressure and potential underutilized capacity (WSJ)

Hybrid work keeps downtown retail traffic below pre-pandemic levels – Visits remain 11.7% below 2019 as weak weekday office demand continues to drag foot traffic (Placerai)

Amazon launches 1-hour delivery across US cities – Service spans 90K products in major metros to boost frequency and compete with Walmart (Reuters)

Amazon is continuing to shift its logistics network in-house, which allows it to continue pushing the limits on efficiency and delivery speed as a competitive advantage

Derailed $947M JCPenney portfolio sale may lead to new REIT – Onyx Partners deal collapses amid lawsuit dispute; trust is considering REIT for ~220 retail properties (Bisnow)

BMO plans to open 130+ California branches as part of US expansion – Bank targets growth in high-value markets following branch sales and Bank of the West acquisition (Reuters)

T5 Data Centers plans to raise $2B equity for new sites – Developer with 22 facilities and 3GW capacity plans to expand footprint (Bloomberg)

Data center operators adapt as power constraints tighten – Developers turn to alternatives like natural gas as electricity costs rise and grid capacity limits expansion (CoStar)

Lenders pull back from mega data center financing amid insurance gaps – Limited coverage leaves investors exposed to power and disaster risks, forcing some to walk away from AI infrastructure deals (WSJ)

Crusoe to invest $200M in Brighton modular data center facility – 352K SF plant to manufacture prefabricated AI infrastructure units as demand for scalable capacity grows (Bisnow)

Lululemon forecasts softer 2026 outlook below expectations – Weak North America demand and rising competition pressure growth amid board overhaul tensions (Reuters)

Jana pushes $1.8B-listed Six Flags to pursue sale and board overhaul – Company agreed to sell $342M seven-park portfolio to EPR Properties; urged to engage with potential buyers (Bloomberg)

Nuveen raises $330M for grocery-anchored retail fund – Capital targets necessity-based centers as low vacancy and rent premiums drive institutional demand (Bisnow)

Madison Capital launches $200M fund targeting car washes and c-stores – Strategy leverages bonus depreciation under OBBBA to drive tax-efficient real estate returns (Bisnow)

AWH Partners closes first round of $100M hospitality real estate income fund – Fund targets stable cash flow through income-producing hotel assets across diverse growth markets (IREI)

Mattress retailer Sleep Number warns it may file for bankruptcy – Sales decline and rising competition pressure liquidity as retailer plans more store closures (CoStar)

Mack Real Estate markets $100M nonperforming loan tied to office building 301 Battery Street owned by RFR in San Francisco, CA – Debt backed by 208K SF FiDi asset could trade near $90M as lender explores sale amid weak leasing (TheRealDeal)

Madison Capital and PGIM buy debt tied to office building 123 Mission Street from Affinius in San Francisco, CA for $90M – Debt purchase at <25% of prior value sets up potential deed-in-lieu as building sits largely vacant (TheRealDeal)

ICE launches AI voice and chat agents for mortgage servicing platform MSP – Tools automate borrower interactions and reduce servicing costs through exception-based workflows (HousingWire)

JAUST launches automated underwriting platform for jumbo mortgages – Cloud-based system applies lender guidelines in real time to speed decisions and reduce underwriting costs (HousingWire)