Editors’ Weekly News Roundup February 5 – February 9

A record 416,500 apartment units were delivered in 2023. CBRE

No matter where they may be in the U.S., Connect CRE readers have their eyes on the Sun Belt. That’s the conclusion to be drawn from the roster of most-read stories for the week ending Feb. 10, with three of the five stories focusing on commercial real estate in the Southeast. 

With strong readership both in the Atlanta region and nationwide, our top story for the week was either an acquisition and leasing opportunity or a commentary on the current state of office, depending on your perspective. Empty Atlanta Office Tower Up for Sale told about 14th + Spring, a 12-story property that was delivered in the third quarter of 2022 and has remained unoccupied ever since.  

Given its 100% vacancy, the wide range of possible sale prices—anywhere from $81 million to $130 million—makes sense, as does the fact that the per-square-foot range comes in well below the price paid for a comparable property in 2022. 

On the subject of new construction, CBRE reported that the fourth quarter of 2023, and the year in general, reached a high-water mark for multifamily. New Apartment Deliveries Reach Record Highwas the week’s second most-read story, and it informed Connect CRE readers that renters nationwide gravitated toward the newly delivered units at the expense of a slight increase in vacancies overall. The current pace of deliveries is likely to continue into this year and next. 

The week closed with the third most-read story, which detailed the fundraising success of New York City-based DRA Advisors. DRA Growth & Income Fund XI was the basis of this success story, DRA Exceeds Target with $2.3B Value-Add Fund.  

Although the fund’s investors came from all over the world, the fund itself is focused strictly on U.S. CRE. “We have a three-year acquisition period, and during this period we expect to see many compelling opportunities to capitalize on distressed situations and motivated sellers,” said CIO Matt Shore. 

A pair of multifamily success stories out of South Florida completed the week’s top five. In fourth place was JV Sells Out 32-Story Miami Condo Tower Before it’s Built. A joint venture of Merrimac Venturesand Aria Development Group has sold all 606 units of their 600 Miami Worldcenter residential condominium project, which won’t be ready for occupancy until sometime in 2026.  

Elsewhere in Miami, Mast Capital reached new highs with another condo tower. The 80-story Cipriani Residences Miami received the largest single-tower residential construction loan in Florida history, a feat described in Mast Capital Secures Record $600M Loan for Brickell Condos. 

Speaking of financing, the third of a four-part series on capital and CRE is featured in the latest edition of Weekender. This installment focuses on what lenders are requiring from would-be borrowers in exchange for a loan being granted. Spoiler alert: the terms are more stringent than they were a few years ago, let alone the easy-money days before the global financial crisis. 

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).