Term Sheet: Trump’s enacted tariffs; Wellington’s debt launch; Madison Realty’s Brooklyn backing

Real estate market participants brace for volatility and potential near-term inflation from President Donald Trump’s tariffs; Wellington Management hires former PIMCO team to roll out its own private real estate credit platform; Madison Realty Capital expands its New York City lending portfolio with $140 million deal in Brooklyn; and more in this week's Term Sheet.

Tips & feedback to Samantha Rowan or email [email protected]

They said it

“The windshield has never been murkier”?

Barry Sternlicht, chairman and chief executive at Miami-based manager Starwood Capital Group , commented this week on the firm’s earnings results call about the inflation he expects from federal tariffs

PERE Credit Awards 2024

Results are in?

The stateside lending environment had no shortage of headwinds in 2024, but results from the PERE Credit Awards 2024 show there were still opportunities and wins to be had throughout the market. Earlier this week, our winners across 23 categories were revealed. The full list and selection logic is available here.

What’s new

Real world impact

President Donald Trump’s move to implement tariffs this week on Canada and Mexico is already having real world impacts on commercial real estate. The biggest effects so far are in connection with development projects under construction, said Davis Powell, a partner at New York-based law firm King & Spalding . Continue reading...

Big data

The digital real estate sector commanded significant financing bandwidth this week. A joint venture between Los Angeles-based manager CIM Group and data center operator Novva Data Centers secured $2 billion of construction financing from J.P. 摩根 and mortgage real estate investment trust Starwood Property Trust to complete a fully preleased data center project in West Jordan, Utah.

Trending

Bank loan buying

Bank loan book sales are on the agenda again this week. Lone Star Funds purchased eight sub-performing loans totaling $343 million from Flagstar Bank Financial. The manager acquired the loan portfolio, which is backed by New York City office and retail properties, at a small discount to par. Dive in the detail...

Data snapshot

Gradual decline in delinquencies

Delinquencies across asset classes in the US commercial real estate market continued to gradually decline in February, a report published this week from New York-based data provider Trepp, Inc. shows. The overarching decrease was driven by the office sector, which saw its rate drop 45 basis points to 9.78 percent.

The PERE Podcast

Scale matters?

This week’s instalment of The PERE Podcast is live now, featuring a dive into Apollo Global Management’s $1.5 billion acquisition of Utah-based Bridge Investment Group. As detailed in last week’s edition of Term Sheet and coinciding commentary, the deal shows a need for managers to opt for inorganic if they intend to scale at pace in the current market environment.

Loan in focus

Brooklyn Nets debt

New York City remains a prime residential financing target, especially as more projects near completion in development-heavy boroughs such as Brooklyn. The Rabsky Group LLC , a Brooklyn-based developer, has secured $140 million in financing from New York-based Madison Realty Capital to take out construction debt on its multifamily conversion project in Brooklyn’s Fort Greene neighborhood.

Get the details of this week's Term Sheet here.