Making sense of the multifamily market; WeWork, reworked... and more

The best national real estate stories from The Real Deal Jul 07, 2024 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In this week’s newsletter, we look at what an uptick in South Florida’s multifamily market means. Plus, WeWork comes out of bankruptcy with a new plan, Kevin Garnett’s Malibu home sale is anything but a slam dunk and a major NYC developer looks to take over an embattled Brooklyn megaproject. These and more below.   Making sense of the multifamily market With sky-high rates and a tight lending landscape, the once-hot multifamily market has cooled down. But lately in South Florida, the temperature has been rising. The past few weeks have seen an uptick in pricey multifamily investment sales, from [Sunrise]( and [Plantation]( up to [Delray]( and [West Palm](. Elevated interest rates, skittish bank lending and a slowdown in apartment demand in the region led to a drop in sales during the early portion of the year. The [few players still buying]( multifamily properties in South Florida usually have closed discretionary funds that provide more equity for purchases, and tend to rely on insurance firms for better financing terms. Brookfield is one player that’s still in the game. The giant is the buyer in the West Palm deal, which is part of a $1.6 billion purchase of a 7,300-unit portfolio of 23 properties from Barry Sternlicht’s Miami Beach-based Starwood Capital Group. The complexes are primarily in Florida and Texas, as well as Arizona, Colorado, Georgia and Utah, records show. South Florida’s apartment market was supercharged over the past four years due to an influx of out-of-state residents. But leasing and rent growth have slowed this year, complicating the story for multifamily investors. The rent growth narrative is different in other markets. For instance, in New York [rents are still growing]( and lenders are [still putting in money](, especially into luxury rentals. But it’s unclear whether the new housing deal will [spur new development](. In Los Angeles, however, Measure ULA is still [weighing heavily]( on the market, and the industry has [few avenues]( to unburden itself. Meanwhile, the [suburbs are hot]( around Chicago, and we’re still seeing [trades]( and [new construction]( in Dallas. A [report]( from Avison Young suggested that though sales volume has slipped for multifamily trades, it’s still investors’ top bet in asset classes. But money has gotten harder to find, especially as [preferred lenders]( face [mounting distress](. That’s especially true for syndicators, who helped fuel the multifamily market boom over the past few years. Some of these investors, who [pooled equity]( from family, friends, and like-minded businesspeople to invest in projects, found themselves underwater as rates rose. But the Brookfields of the world may not have the same problems. So we’ll be watching to see who snags what next.   Together with Leyster Capital Flexible Financing For Real Estate and Beyond [Leyster Capital]( Leyster Capital meets the global liquidity needs of families, private individuals, and other substantial asset owners. We creatively and efficiently leverage multiple classes of real estate, collectibles, and financial assets. Our expertise and global resources give our borrowers the advantage of timeliness, certainty and flexibility.   [I'm an image]( WeWork, reworked: How the co-working firm emerged from bankruptcy WeWork slashed $4 billion in debt, gained an equity partner and emerged from bankruptcy proceedings in June. [I'm an image]( Bank failures are coming. Here’s how it could play out Experts say a wave of commercial real estate defaults could collapse the small regional and community banks that have been bread-and-butter lenders to the industry. [I'm an image]( Kevin Garnett sues title, escrow firms in Malibu mansion dispute The NBA star’s complaint stems from a $16 million deal for partly completed property.   Advertisement   [I'm an image]( [Brand Studio At Bentley Residences, Even Your Kitchen Is a Convertible]( [I'm an image]( Related in talks to take over Pacific Park megaproject The Related Companies is in talks to take over Pacific Park, a $5 billion Brooklyn mega-project that’s struggled to stay on track over its two-decade history. [I'm an image]( Inside the fallout from Shaya Prager’s “contrarian” 2022 office investments Investor Shaya Prager is facing multiple lawsuits that allege he conjured up loans for more than his investments were worth. [I'm an image]( Arson, hit-and-run, fentanyl poisoning? What we know about allegations against Sergio Pino Prominent South Florida developer Sergio Pino has been accused of poisoning his wife with fentanyl and bath salts. [I'm an image]( Patrick Carroll charged with gun possession and evasion of LA police Multifamily investor Patrick Carroll faces charges of carrying a loaded firearm in public and evading police.     [The Real Deal Logo]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters]( | [Unsubscribe]( | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2024 TheRealDeal. All rights reserved. [View Online](