Hello Brick Brief readers, 

Thank you for your continued support! Yesterday we saw Zohran Mamdani win the NYC mayoral race, CBRE expand into the digital infrastructure boom, and major shake-ups hit the pizza industry.

🍕 Pizza Chains Face Shake-Up
Building on yesterday’s $620M private equity bet on a turnaround of Denny’s as value-focused dining faces pressure, Yum Brands is exploring a potential sale or partnership for Pizza Hut after its U.S. market share fell from 22.6% in 2019 to 18.7% in 2024. Meanwhile, Apollo withdrew its $1.7B offer for Papa John’s, ending take-private talks with Qatar’s Irth Capital and sending the pizza chain’s shares down 10%.

⚡ CBRE Expands in the Digital Infrastructure Boom
CBRE reports that data center supply rose 43% this year across primary markets even as vacancy tightened to a record-low 1.6%. The real estate brokerage is also expanding into digital infrastructure through a $1.2B acquisition of data center maintenance firm Pearce Services to broaden its reach across telecom, renewables, and mission-critical facilities.

🏙️ Mamdani Wins NYC Mayoral Race
Zohran Mamdani won the New York mayoral race to become the city’s youngest mayor in over a century. He defeated Curtis Sliwa and Andrew Cuomo in an outcome that disappointed many of NYC’s real estate developers.

30Y Mortgage: 6.33% (-1 bps)

10Y Treasury Yield: 4.07% (-4 bps) 

WSJ Prime Rate: 7.25%

FTSE NAREIT Index: 759.62 (+0.18%) 

30-day SOFR Average: 4.20%

U.S. consumer confidence falls 9% in November – The RCM/TIPP Economic Optimism Index dropped to 43.9, marking its third straight month below neutral amid inflation, tariff, and shutdown concerns (RealClearMarkets)

Zohran Mamdani wins New York mayoral race – He becomes NYC’s first Muslim mayor and youngest in a century (AP)

US appeals court upholds Florida’s property ban on Chinese citizens – The ruling allows the 2023 law restricting foreign land ownership to take effect, despite ACLU claims of discrimination (Reuters)

US home prices fall 0.2% MoM and rise 1.2% YoY in September – Cotality reports cooling prices as inventory hits a six-year high and affordability pressures mount across major metros (Cotality)

Insight: Redfin reported a 0.2% rise in home prices in September, so what explains this difference? Methodology. Redfin’s MLS-based index reflects recent urban sales activity, while Cotality’s appraisal-driven data includes broader markets and mortgage valuations that lag slightly and capture softer trends in slower regions. Therefore, Redfin’s index is better if you’re looking for real-time insights and a clearer read on housing market sentiment.

US median first-time homebuyer age hits record 40 – NAR reports soaring prices and high mortgage rates have delayed ownership, with first-time buyers now just 21% of the market, the lowest share since 1981 (Bloomberg)

Gen Z drives home equity growth as mortgage originations rebound – TransUnion reports an 8.8% Q3 rise in lending, led by strong Gen Z demand despite higher delinquencies (GlobeSt)

International home shopping demand dips to 1.5% – Realtor.com reports Miami, New York, and Los Angeles led global buyer interest in Q3, though foreign shoppers viewed fewer high-end homes as currency volatility and policy shifts cooled demand (Realtor.com)

US multifamily forecast revised lower – CoStar now expects rent growth to remain muted as new supply continues to outpace absorption until late 2025, delaying the sector’s recovery despite easing construction pipelines (CoStar)

Multifamily operators warn of fragile stability – Minneapolis Fed interviews with 32 landlords cite rising expenses and insurance, Class A concessions, tighter lending, and flat-to-slower construction despite recent rate cuts (GlobeSt)

Sigma Computing expands lease by 28K SF at One Madison Avenue in New York, NY with SL Green – The 11-year deal brings its total footprint to 92K SF amid strong Midtown South leasing (CommercialObserver)

Industrial cap rates rise 20 bps to 6.3% – Savills reports $15B–$25B in quarterly sales as investors stay active, with values up 47% since 2020 and minimal loan distress across the sector (GlobeSt)

Industrial rent growth cools at U.S. port markets – CommercialCafe reports double-digit gains have faded across key hubs like Los Angeles, New Jersey, and Miami as new lease premiums narrow and tenant leverage increases (GlobeSt)

CNH Industrial to invest $5B in U.S. operations – The company will modernize factories and expand R&D while closing its underused Iowa plant in 2026 amid weaker demand

CAVA expands suburban reach – The chain’s customer base has shifted from wealthy urban diners to middle-income suburban households, with faster visits and rising traffic from city-edge neighborhoods (Placer.ai)

AI-driven data center demand surges 43% in 2025 – CBRE reports record-low 1.6% vacancy across primary markets as hyperscale and neocloud firms race to secure high-capacity power sites exceeding 1 GW (CBRE)

Microsoft commits over $60B to neocloud data center firms – The company is securing AI computing capacity through deals with Nscale, CoreWeave, Nebius, and others amid a global shortage of power and GPUs (Bloomberg)

Bain Capital avoids US data center boom – The firm is focusing on Europe and Asia instead, while rivals Blackstone, KKR, and Apollo pour billions into US infrastructure (Bloomberg)

Hotels surpass offices as top targets for residential conversions nationwide – Hotel properties accounted for 37% of 2024 housing conversions versus 24% for offices as developers favor easier layouts and lower retrofit costs (TheRealDeal)

Marriott beats Q3 earnings as luxury RevPAR rose 4% YoY as high-end travelers continue to prioritize leisure spending despite global economic uncertainty (WSJ)

Yum Brands, the owner of Taco Bell, KFC, and Pizza Hut, saw its shares rise 7% after beating Q3 earnings and revenue expectations, with same-store sales up 3% YoY driven by Taco Bell’s 7% growth. The chain’s strong value perception and consistent menu innovation have helped it stand out among budget-conscious diners (CNBC) 

Irgang Group and Pramukh Realty secure $70M construction loan for multifamily tower in Harlem, NY – Dwight Mortgage Trust provided financing for the 180-unit project at 33–35 West 125th Street with 30% affordable housing (CommercialObserver)

Hillridge Capital and Broad Creek Capital secure $70M acquisition loan for LoftOne35 in Charlotte, NC – Mesa West Capital provided financing for the 298-unit multifamily community at 135 West Morehead Street (CommercialObserver)

TF Cornerstone secures $347M refinancing for 2-20 Malt Drive multifamily tower in Long Island City, NY – M&T Realty Capital provided Fannie Mae–backed financing for the 575-unit Bud South property that opened in 2024 with 173 affordable units (CommercialObserver)

Sonida Senior Living in talks to acquire CNL Healthcare Properties for $1.8B – The merger would create one of the largest senior housing operators in the U.S. and mark the sector’s biggest deal since 2021 (WSJ)

CBRE acquires digital infrastructure firm Pearce Services for $1.2B – The move expands CBRE’s presence across data centers, telecom, and renewable energy markets (Bloomberg)

Apollo withdraws $1.7B bid to acquire Papa John’s – The private equity firm ended its planned take-private deal with Qatar’s Irth Capital, which would have valued the pizza chain well above its current $1.3B market cap (Bloomberg)

MCB Real Estate proposes $730M acquisition of retail-focused Whitestone REIT – The all-cash bid values the Sunbelt shopping center owner at a 21% premium (PRNewswire)

Yum Brands to explore strategic options for Pizza Hut – The company is considering a sale, stake divestiture, or joint venture after the chain’s U.S. market share slid from 22.6% in 2019 to 18.7% in 2024 amid weak sales (CNBC)

Blackstone sells 399 Boylston St office in Boston, MA to DivcoWest for $125M – The 13-story Back Bay property sold at a rare premium amid 18% submarket vacancy (Bloomberg)

Lincoln Property acquires 123K-SF office building in Manhattan Beach, CA for $70M from Continental Development – The firm secured $45M in seller financing and plans to redevelop the site into apartments (TheRealDeal)

Menashe Properties acquires 125 South Wacker office tower in Chicago, IL for $51.5M from La Caisse – The 547K-SF Loop property sold at a 65% discount to its 2017 price as Menashe bets on a downtown office rebound (TheRealDeal)

Lincoln Property acquires 191K-SF data center in Chandler, AZ for $130M from CBRE Global Investors – The facility currently provides 28 MW of power, and Lincoln plans to expand capacity by 16 MW (TheRealDeal)

Namdar Realty acquires Southland Mall in Hayward, CA for $70M from Brookfield Properties – The firm paid cash for the 1.1M-SF retail complex as it expands its national mall portfolio (TheRealDeal)

Carlyle Management acquires 212K-SF shopping center Royal Eagle Plaza in Coral Springs, FL for $61M from Washington Prime Group – The property is anchored by Aldi, Hobby Lobby, and Petco and financed with a $40M Wells Fargo loan (TheRealDeal)

StepStone Real Estate increases StepStone Real Estate Partners V program to $5.3B – The GP-led secondaries fund finalized total commitments at $5.3B (IREI)

TPG closes $2.1B real estate credit fund exceeding target by $600M – The TRECO fund will target broken multifamily and industrial capital structures as banks retreat from CRE lending (CommercialObserver)

CIM Group launches $1B venture for affordable rentals – The Los Angeles firm partnered with Bryant Group Ventures, Flagstar, and Truist to acquire and develop affordable multifamily housing across major U.S. markets (CBRE)

Continental Properties launches Development Fund IV targeting $200M-plus in equity – The fund will back market-rate multifamily projects in undersupplied housing markets across the Southeast, Midwest, and Mountain states (IREI)

HCI-backed property-focused insurtech Exzeo Group raises $168M in IPO – The Tampa-based firm provides cloud software that powers quoting, underwriting, and claims analytics for homeowners and property insurers (Bloomberg)