February delivered continued momentum in the high-end CRE transactions market, with 31 deals valued at $100 million or more at closing, and another 49 deals in the $50 million–$100 million range. While macroeconomic uncertainty loomed over financial markets, these big-ticket transactions were a strong sign of early-year investor confidence across asset classes and geographies and particularly from major REITs
As in previous months, multifamily, office, and retail assets dominated major dealmaking. Investors continue to focus on properties in states like Florida and Texas, a reflection of strong demand in the Sun Belt region as well as high-growth metros in California, New Jersey, and New York. It’s also worth noting that the buyer mix last month reflected deals by a very diverse group of investors with very few repeats from recent months. This suggests a new round of investors that are re-engaging after a slow 2024.
Retail and Office Transactions Gain Traction
In retail, the Del Monte Shopping Center in Monterey, CA, traded hands for $123 million, a 7% increase over its prior purchase price 20 years ago. This open-air shopping center, anchored by a diverse mix of high-performing retailers like Whole Foods, Apple, Macy’s, Sephora, Lululemon, Pottery Barn, Anthropologie and Century Theatres, reflecting the continued investor appetite for well-located retail properties with strong tenant mixes.
The office sector continues to attract interest from a wide range of investors. February’s largest office deals were in Fort Lauderdale:
- Two major office sales in Fort Lauderdale surpassed the $200 million mark for the first time in over a decade. Las Olas Centre I & II sold for $208 million, marking a slight appreciation over its 2014 sale price of $204 million. Meanwhile, Bank of America Plaza at Las Olas City Centre changed hands for $220 million. Chicago-based Bradford Allen’s purchase of the 470,810-square-foot Las Olas Centre I & II could signal a stabilizing office market, even as high interest rates and shifting demand continue to shape the sector.
- BayCare Health System has acquired three medical office buildings in Tampa, Florida—LakePointe One and LakePointe Two—from Highwoods Properties for $145 million. This strategic acquisition aims to consolidate BayCare’s services from leased offices and support the expansion of its BayCare Medical Group physician practice.
- In San Diego, CA, MUSE, a 186,000-square-foot trophy life-sciences campus, traded for $156 million. The buyer was Breakthrough Properties, a joint venture between Tishman Speyer and Bellco Capital.
Multifamily, Industrial, Portfolio Sales Drive Volume
Multifamily assets remained a key driver of February’s nine-figure transactions, with notable deals spanning several major markets.
- In Alabama, Ridge Crossings Apartments—a 720-unit community—sold for $111 million, marking a 54% increase from its previous $72 million sale in 2015.
- Avalon Bay Communities acquired an eight-property Texas apartment portfolio for $618.5 million, featuring 2,700 units at an average price of $228,989 per unit.
- In Bethesda, MD, 8001 Woodmont Ave., a 322-unit trophy multifamily asset, was purchased for $194 million. The building also includes 19,500 square feet of ground-floor retail space, anchored by Trader Joe’s.
However, not all multifamily deals reflected price appreciation. In Nashville, TN, Cortland West, a 435-unit apartment community, sold for $101 million—a 35% loss compared to its prior sale. This underscores the challenges of assets purchased at market peaks and the deep discounts seen in today’s environment compared to five or ten years ago.
Meanwhile, several portfolio deals in the industrial sector also made headlines in February. Investcorp acquired a mix of Minneapolis and Baltimore industrial properties for $335 million, continuing a trend of institutional investors targeting stable, high-yielding logistics assets.
One of the highest-priced transactions of the month was 15450 Washington St. in Thornton, CO, a cold storage facility that sold for $231 million. While details remain limited, the price suggests a major industrial or mixed-use redevelopment play.
CRE’s Big-Ticket Deals Persist Despite Market Uncertainty
Despite ongoing economic crosswinds, a wide range of investors like REITs, private capital buyers, and developers, are actively looking at major deals across a range of asset classes, size, and geographies. Some are traditional investment deals at prices higher than the previous purchase price, while others reflect discounted prices on assets that were purchased in days of lower interest rates and higher valuations.
Download the full list of February’s nine-figure buyers and explore the $50 million–$100 million transactions. Plus, tune in to our podcast, The CRE Weekly Digest, for expert analysis on evolving deal trends.
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