398. CRE’s New Math: Multifamily Cap Rates, Office Recovery Bets, & Capital Costs

In this week’s episode of The TreppWire Podcast, we discuss elevated rates, inflation concerns, and surprisingly resilient equity markets as capital costs continue to shape commercial real estate. We cover JPMorgan’s plan to liquidate its 24-year-old real estate fund, new NYC hotel labor agreements ahead of the World Cup, and Chicago multifamily sales surging 117%. We then break down the proposed Equity Residential and AvalonBay merger, including how to derive an implied cap rate from deal financials, and what that may signal about the disconnect between public and private market pricing in multifamily today. We also highlight key office activity, from the recapitalization of 600 California Street to a downtown Dallas departure and Braven Office Commons hitting the market. We close with two office-to-residential conversion stories, including a $114 million HUD loan from Dwight Capital for a Milwaukee project and a controversial conversion in downtown Denver. Tune in now.Episode notes: Economic Update (2:19) Chicago Multifamily Sales Up 117% (7:44)JP Morgan Liquidating Real Estate Fund (11:34)NYC Hotel Labor Agreement Ahead of the World Cup (14:08)Equity Residential & Avalon Bay Merger Analysis (18:50)Harvest Properties & Lone Star Form JV (32:00)Fifth Third Leaving Downtown Dallas (35:23)Braven Office Commons Up for Sale (39:04)Two Office-to-Resi Conversion Headlines (41:14)Programming Notes (51:00)Shoutouts (52:44) Questions or comments? Contact us at [email protected]. Follow Trepp: X: www.x.com/TreppWire LinkedIn: www.linkedin.com/company/trepp