The Brick Breakdown

Hello Brick Brief readers, 

Thank you for your continued support! Today we’re seeing tariffs reshape trade flows and cloud the Fed’s outlook, hotels gain pricing power as new supply slows, and lenders target resilient multifamily assets for large-scale refinancing.

Stay tuned for our next edition of Concrete Intel on Sunday, where we will analyze which retailers and retail properties are holding up best amid rising tariffs and shifting consumer demand!

📉 Tariffs widen economic fault lines
The U.S. trade deficit narrowed by nearly half to $61.6B in April as imports collapsed, led by a $26B plunge in pharmaceuticals. While Trump and Xi agreed to resume trade talks, Fed officials warn tariffs are fueling inflation, complicating the case for near-term rate cuts despite softening labor data.

🏨 Hospitality gains pricing power
Hotel occupancy, ADR, and RevPAR have surpassed pre-pandemic highs, supported by limited new supply and firm demand for higher-end travel. Luxury and Upper Upscale segments are outperforming as construction slows, pushing valuations higher for existing assets in strong markets.

🏦 Refinancing targets resilient, income-generating assets

Lenders are actively refinancing a mix of Class A and stabilized Class B properties, with billions flowing to multifamily and industrial portfolios in Sunbelt and gateway markets. These deals suggest strong institutional appetite for assets with proven rent rolls and experienced operators, even as credit conditions remain selective.

This Week in Real Estate: Key Events & Data

Quick Markets

30Y Mortgage: 6.87% (-9 bps)
10Y Treasury Yield: 4.37% (-8 bps)
FTSE NAREIT Index: 769.19 (+0.16%)
30-day SOFR Average: 4.31%

Market Pulse

The sharp drop in imports and fragile trade truce signal that tariffs are already reshaping global supply chains, while rising jobless claims and Fed pushback highlight growing policy uncertainty as inflation risks clash with weakening labor data

Trade deficit cut in half to $61.6B in April – Imports plunge 16% post-tariff, led by $26B drop in pharma goods (WSJ)

Fed officials warn of inflation risks – Tariffs seen pushing up prices as Kugler and Schmid argue against near-term rate cuts (Reuters)

Jobless claims hit 7-month high at 247K – Tariff uncertainty and holiday distortions weigh on labor market (Reuters)

Trump and Xi agree to more trade talks – 90-day tariff rollback remains fragile amid rare earth tensions (Reuters)

Brick by Brick: Multifamily Refinancing Activity Picks Up Across U.S.

Despite high interest rates, institutional players are securing large-scale refinancings for stabilized multifamily portfolios, signaling lender confidence in Class A and Sunbelt assets.

• Nitya Capital landed a $700 million refinance from Citi for an 18-property portfolio across Sunbelt markets including Nashville, Phoenix, the Carolinas, Las Vegas, and Dallas. The assets span Class A student housing and Class B market-rate rentals, with participation from global investment firms underscoring demand for scale and geographic diversity.
• Thompson Thrift secured a $549 million refinancing from Barings for nine recently delivered multifamily properties across six states including Arizona, Colorado, and Florida. The 2,500-unit luxury portfolio received backing from JLL Capital Markets and highlights strong lender appetite for new construction with experienced sponsorship.
• Redwood Development obtained a $126 million package from Regions Bank for 350 units in North Miami-Dade. The firm refinanced a mix of townhouses and mid-rise apartments, many of which accept rent vouchers or target workforce tenants, with terms including a 10-year maturity and sub-5.5 percent blended rate.
• Vornado Realty Trust completed a $675 million refinance of Independence Plaza in Tribeca, locking in a fixed 5.84 percent rate through 2030. The deal replaces a prior loan set to mature in 2025 and reflects steady lender support for large, stabilized urban assets in premier locations.

Takeaway: While construction financing remains tight, stabilized multifamily portfolios are drawing major refinancing activity from institutional lenders. The deals reflect renewed lender confidence in rental fundamentals and a flight to quality across urban, suburban, and workforce housing segments. Sponsors with scale and experience continue to lead in securing capital despite macro headwinds.

Residential

Rising inventory, slowing price growth, and falling luxury sales point to mounting buyer fatigue and tariff-driven uncertainty, pressuring the housing market even as rent inflation begins to ease

U.S. home price growth slows to 2% YoY in April 2025 – Florida, Texas, Hawaii, and D.C. post annual declines as affordability and tariffs weigh on demand (Cotality)

New U.S. home listings up 6.3% YoY – Growth slows as high costs and weak demand trigger steepest late-May listing drop in a decade (Redfin)

U.S. housing inventory up 31.5% YoY in May – Active listings hit post-pandemic high as price cuts rise and pending sales fall 2.5% amid 7% mortgage rates and buyer fatigue (Realtor.com)

Luxury home market cools despite price gains – U.S. luxury home values rose 2.7% YoY in May, but pending sales fell 12% from March as high rates and uncertainty slow activity in Austin, Tampa, and Miami (Zillow)

Multifamily

Zillow lowers shelter CPI forecast for May – Owner’s equivalent rent expected to rise 0.29% MoM and 3.5% YoY by year-end as rent growth slows, especially for multifamily leases (Zillow)

Office

Manhattan tech office leasing hits 25-year high with 1.67M SF YTD – CBRE cites AI growth and return-to-office mandates as drivers behind strongest start since 2000 (CoStar)

Leasing

Power Home Remodeling expands by 65K SF in Chester, PA, bringing HQ to 250K SF – 12-year lease at Wharf at Rivertown marks largest Eastern PA office deal since 2022 (TheRealDeal)

Samsung expands NYC’s Penn 1 lease by 35K SF to 71K SF total – Tech giant adds full 25th floor in Midtown Manhattan and extends original 26th floor lease in Vornado’s 2.5M SF tower (CommercialObserver)

Evoke Advisors leases 24K SF for new HQ in Century City, CA – Firm signs 10-year deal for full floor at Irvine Company’s 2121 Avenue of the Stars tower. (TheRealDeal)

Industrial

Container rates show signs of peaking after 117% surge – Tariff-driven spike moderates as demand weakens (Reuters)

Market Mix

U.S. commercial dealmaking rebounds after tariff pause – Owners resume projects and financing activity picks up as investors adjust to higher rates and stabilize around existing asset valuations (Bloomberg)

Retail

Shopping center REITs extend strong performance into 2025 – Open-air retail centers see resilient occupancy and steady leasing despite store closures and shifting consumer habits (CoStar) 

Coach visits up 7.5% YoY in May – Affordable luxury positioning drives foot traffic and revenue growth as brand attracts younger, middle-income shoppers amid broader luxury slowdown (Placer.ai)

Regional

Boston office value slump may cost city $1.7B – Tufts study warns of 45% drop in valuations by 2029, slashing tax revenue and shifting burden onto homeowners amid persistent vacancies and hybrid work (Bloomberg)

Hospitality

Limited new supply and rising development costs are boosting hotel valuations, with Luxury and Upper Upscale segments outperforming as budget travel demand softens

U.S. hotel metrics surpass pre-COVID highs – Occupancy, ADR, and RevPAR continue rising as limited new supply supports valuations (Colliers)
Luxury and Upper Upscale hotels show resilience – These segments outperform as softening travel demand hits Economy and Midscale properties harder (Colliers)
New hotel construction slows – Rising costs curb development, boosting pricing power for existing assets in a cautious investment climate (Colliers)

Earnings & Real Estate Impact

Lululemon’s stock drop signals that rising tariffs and consumer uncertainty are prompting shoppers to pull back on premium spending

Lululemon shares fell ~22% despite beating Q1 earnings and revenue expectations due to cutting full-year guidance, as planned price hikes and rising consumer uncertainty from tariffs weighed on sentiment  (CNBC) 

Financings

Loans

Blackstone lends $231M to Jadian Capital for 43-site industrial outdoor storage portfolio – 293-acre deal spans 13 states with tenants including United Rentals and Waste Management (ConnectCRE)

Mavik Capital provides $180M first mortgage for Seattle-area mixed-use project – West Edge to develop 516-unit Cedarside Commons in Stanwood, WA with apartments, townhomes, and 27K SF of retail (CommercialObserver)

Related Group and Merrimac secure $160M loan for Waldorf Astoria Residences in Pompano Beach, FL – Bank OZK backs 70% pre-sold 92-unit luxury oceanfront condo project (TheRealDeal)

Refinancings

Nitya Capital secures $700M refinancing from Citi for 18-property multifamily portfolio – Assets span Sunbelt markets including Dallas, Phoenix, Nashville, and Carolinas, with a mix of Class A student housing and Class B rentals (GlobeSt)

Vornado completes $675M refinancing of 1,328-unit Independence Plaza in Tribeca, NY – New five-year loan carries 5.84% fixed rate, replacing 2025 maturity at 4.25% (Vornado)

Barings provides $549M refinancing for nine-property multifamily portfolio – Thompson Thrift recapitalizes 2,500 luxury units across AZ, CO, MO, MN, MI, and FL delivered since early 2024 (CommercialObserver)

Redwood Dev Co secures $126M refinancing in Miami-Dade, FL for 350-unit rental portfolio – Regions Bank backs townhouse and apartment properties (TheRealDeal)

LoanCore provides $54M refinancing for Blue Origin-leased industrial facility in Huntsville, AL – Reich Brothers recapitalizes 650K SF rocket engine site near Huntsville International Airport (CommercialObserver)

Structured Finance

Brookfield to invest $400M in Midtown NYC office recap – Preferred equity deal for 860K SF 63 Madison Avenue building, 76% leased to American Eagle, CBS, and New York Life (CommercialObserver)

M&A

Company M&A

Colliers to acquire controlling stake in investment bank Astris Infrastructure – Deal expands investment banking capabilities into renewable energy project finance (CoStar)

Building & Portfolio M&A

Kering in talks to sell stake in $1B NYC retail property – Luxury group seeks to raise cash by offloading part of 715 Fifth Avenue after 2024 purchase, as debt nears $12B (Reuters)

SL Green lists two NYC office assets for $300M – 110 Greene St. in SoHo and 690 Madison Ave. in Midtown hit the market as office leasing jumps 59% YoY and investor interest rebounds (Bloomberg)

Blackstone sells Miami, FL industrial complex for $90M to East Capital Partners – 372K SF Airport Trade Center includes three warehouses on 13.8 acres near Miami International Airport (CommercialObserver)

Institutional Fundraising

Barings acquires minority stake in lender Crebrid and provides $500M credit facility – Plano-based RTL lender targets Texas, Ohio, and Tennessee with AI-driven fix-and-flip and bridge loans (ConnectCRE)

Distress Watch

The Blue Owl portfolio’s sharp occupancy drop underscores the risk of tenant concentration in retail-heavy assets, as bankruptcies from Big Lots and Conn’s trigger widespread distress and CMBS downgrades

$1B retail-heavy Blue Owl portfolio hit by bankruptcies – Occupancy plunges to 36% after Big Lots and Conn’s defaults trigger CMBS downgrade and special servicing transfer (Bisnow)