Hello Brick Brief readers, 

Thank you for your continued support! In recent news, institutional investors are expanding into affordable housing and BTR, the data center buildout is continuing at a rapid pace, and U.S. hotels are struggling with softer demand.

🏡 Brookfield Expands as Renters Priced Out
Global investors are increasing bets on single-family and manufactured housing as high mortgage rates and record prices keep millions from buying. Brookfield’s talks to acquire GIC’s $10 billion stake in Yes! Communities show how large affordable-rental platforms have become prime targets for institutions seeking stable income growth.

⚡ Data Centers Drive Power Investment
AI infrastructure growth is fueling a race for both computing capacity and electricity supply. CoreWeave’s $6.3 billion contract with Nvidia secures long-term cloud infrastructure while Blackstone’s $1 billion purchase of the 620-MW Hill Top gas plant reflects the drive to meet rising data center energy demand.

🏨 Hotels Struggle in a Tighter Market
U.S. hotel fundamentals softened in August as RevPAR fell 0.6 % YoY and occupancy declined 1 % YoY. The bankruptcy of budget operator LuxUrban shows how higher borrowing costs and growing competition from short-term rentals are pressuring the hospitality sector.

30Y Mortgage: 6.25% (-4 bps)

10Y Treasury Yield: 4.04% (-3 bps)

WSJ Prime Rate: 7.50%

FTSE NAREIT Index: 777.69 (-0.47%) 

30-day SOFR Average: 4.37%

Markets brace for Fed rate cut as stocks hit records – Investors price in a quarter-point move and deeper 2026 easing, but sticky inflation and tariff effects may prompt a cautious Fed signal (Bloomberg)

JPMorgan’s David Kelly warns Fed rate cut could backfire – He sees political pressure behind easing and says frothy markets may face weaker demand, hurting stocks, bonds, and the dollar (Bloomberg)

Institutional investors are accelerating moves into affordable housing as high mortgage rates and record home prices keep millions of Americans from buying. Demand for stable rental assets is surging, pushing global funds toward large portfolios that can deliver reliable income and meet the need for lower-cost homes.

🧱 Singapore sovereign wealth fund GIC is in talks to sell its majority stake in Yes! Communities to Brookfield Asset Management in a potential $10 billion deal. Yes! Communities owns and operates nearly 300 manufactured-housing neighborhoods across the Southwest, Midwest and Southeast, offering naturally affordable housing and steady cash flow.

🧱 U.S. homeownership affordability fell to 12.7 % in Q2 2025, leaving about 1.8 million renter households priced out of a median-priced home. Elevated borrowing costs and limited supply continue to push multifamily occupancy and rents above historical norms, reinforcing the appeal of manufactured housing.

🧱 GIC purchased a 71 % stake in Yes! in 2016 when the company was valued at just over $2 billion. A sale near $10 billion would be one of the largest sovereign wealth fund real estate exits and would lock in a sizable gain while reducing GIC’s U.S. exposure.

🧱 Brookfield, which manages more than $1 trillion, has been expanding in rental housing. It acquired single-family landlord Conrex in 2020 and has raised significant capital for residential strategies, calling rental housing including single-family and manufactured homes its highest conviction real estate theme.

🧱 Other institutions are also moving into affordable rentals. Manulife and TruAmerica recently launched Anchor Point Residential, a $1 billion joint venture with 51 properties and 6,000 units across California, Texas and Washington to capture growing demand for lower-cost housing.

Takeaway: GIC’s potential $10 billion sale of Yes! Communities and Brookfield’s expansion into single-family and manufactured housing show how affordability pressures are drawing global investors deeper into U.S. rental housing. Institutional capital is converging on manufactured-home portfolios and workforce apartments to secure stable returns as millions remain priced out of homeownership.

1.8M renters priced out of homeownership – CBRE says Q2 2025 affordability fell to 12.7% as high mortgage rates and prices push multifamily occupancy and rents higher (CBRE)

U.S. homeowner real estate value hits $49.3T in Q2 2025 – Home equity climbs to a record $35.8T as mortgage debt rises to $13.5T, reinforcing household financial cushions despite higher borrowing (Realtor.com)

U.S. apartment market softens in August – National occupancy slipped to 95.4% and effective asking rents fell 0.2% YoY, led by supply-heavy South and West markets like Austin, Denver, and Phoenix (RealPage)

Bank of New York Mellon leases 192K SF at One World Trade Center in Manhattan, NY – Takes four-floor sublease from Condé Nast for four years while renovating its headquarters (CommercialObserver)

New York manufacturing index plunges 20.6 points to -8.7 – First contraction since June as new orders and shipments slide amid trade uncertainty and slowing demand (WSJ)

Port of Long Beach posts second-busiest August on record – 902K TEUs moved as a U.S.–China tariff ceasefire spurred import demand despite a 3.6% drop in imports and 8.3% drop in exports (FreightWaves)

U.S. retail and dining traffic falls for third straight month – Broad state-level declines and tariff-driven budget pressures signal a potential consumer slowdown heading into the holiday season (Placer.ai)

Nvidia signs $6.3B cloud contract with CoreWeave – Deal runs through 2032 and ensures excess AI computing capacity to support startups and mid-sized companies amid surging infrastructure demand (Bloomberg)

Blackstone to buy 620-MW Pennsylvania gas plant for $1B – Acquisition of Hill Top Energy Center supports rising U.S. electricity demand driven by AI data centers and digital infrastructure growth (Reuters)

Insight: This deal extends Blackstone’s push into AI-driven electricity demand and builds on its $1.6B acquisition of electrical equipment services provider Shermco last month (Bloomberg)

The hospitality sector continues to struggle as August RevPAR fell 0.6 % YoY and occupancy dropped 1 % while short-term rentals gain market share and financing tightens

U.S. Hotels See RevPAR and Occupancy Decline in August 2025 – RevPAR fell 0.6% YoY as occupancy dropped 1% and ADR growth slowed to 0.4%, marking five straight months of weaker demand (CBRE)

Hotel Financing Slows in July 2025 – CMBS issuance dropped to $1.1B from $2.5B a year earlier, with average loan size down to $78.8M and rates rising to 7.3% amid tighter credit (CBRE)

Short-Term Rentals Gain Share in July 2025 – STR demand reached 16% of lodging share with RevPAR up 6% YoY and ADR at 140% of 2019 levels, intensifying competition for hotels (CBRE)

Sunroad Enterprises secures $1.1B acquisition financing with Fairfield for a 15-property multifamily portfolio – 3,830 units across AZ, NV, CO, NC, SC and GA include $415M Freddie Mac debt and $250M from KKR (ConnectCRE)

Nuveen Green Capital provides record $290M C-PACE loan for Pendry Hotel & Residences in Tampa, FL – Financing pairs with $230M senior loan to fund the 38-story riverfront project slated for 2027 completion (CommercialObserver) 

Mavrek Development and Acres secure $90M financing for 65 East Wacker Place in Chicago, IL – Funding includes a $62.4M senior loan and tax credits to convert the 24-story office tower into 252 apartments with 20% affordable units (TheRealDeal)

Stonebridge and Bernstein secure $53M construction financing for 1990 K Street NW in Washington, DC – 14-story office-to-residential conversion will create 453 apartments, (CommercialObserver)

SL Green and PGIM secure $1.4B office refinance from Computershare for 11 Madison Ave in Manhattan, NY – Full-block tower hosts major tenants including UBS, Sony, and Suntory (CoStar)

Tyko Capital provides $220M refinance for Namdar Group’s 626 Newark Avenue in Jersey City, NJ – 27-story mixed-use tower with 576 units secures funding to recapitalize construction debt and support lease-up (CommercialObserver)

Axos Bank provides $180M refinance for 34-property industrial outdoor storage portfolio – Criterion Group and Columbia Pacific Advisors secure five-year floating-rate loan covering 15.4M SF across 12 East Coast states (CommercialObserver)

GIC plans $10B sale of manufactured-home landlord Yes! Communities to Brookfield – Deal fits Brookfield’s strategy to grow U.S. rental housing through student and single-family acquisitions (Bloomberg)

Stockbridge buys Whole Foods-anchored Uptown Boca retail center in Boca Raton, FL for $118M – 205K-SF property is fully leased with a 12.5-year average term and strong tenant mix including Life Time, Sephora, and Chick-fil-A (CommercialObserver)

Insight: Recent deals highlight rising investor interest in Whole Foods–anchored retail centers (and for good reason). These centers attract a wealthy, health-conscious, and loyal shopper base that maintains steady traffic and appeals to other premium retailers. The Uptown Boca property illustrates this strength with its 100% occupancy and a robust tenant mix.

Bridge Housing launches $1B affordable housing fund – San Francisco nonprofit targets acquisition and conversion of 20 West Coast properties with 3,500 units to preserve and expand affordable and workforce housing (CommerciaObserver)

Tim Tebow, John Elway, and Blake Bortles’ Momentous Sports targets $100M for mixed-use stadium developments – Venture plans projects anchored by sports venues starting with Jacksonville, FL (Bisnow)

Griffin Capital launches build-to-rent platform – New division will acquire and develop purpose-built rental communities in high-growth U.S. markets (IREI)

Retail bankruptcies drive West Coast industrial shakeout – Space availability in Los Angeles logistics hubs hits decades-high as tenants like Rite Aid vacate massive distribution centers (CoStar)

LuxUrban Hotels files for Chapter 11 bankruptcy – Budget hotel chain with under $10M in assets and over $37M in debt plans to restructure as a private company (Bisnow)

Pinnacle’s $500M debt and 80-building bankruptcy deepen NYC rent-regulated crisis – Soaring rates, 2019 rent caps, and mounting violations leave tenants in unsafe conditions amid a court fight with lender Flagstar (Bloomberg)

Rudin’s $425M CMBS loan on 32 Avenue of the Americas in Manhattan, NY enters special servicing – 1.2M-SF Tribeca tower faces 57% occupancy and a 49% cash flow drop ahead of November 2025 maturity (CommercialObserver)