Real Estate Sector

bisnow.com reports that public backlash against data center development in Illinois is mounting as elected officials face mounting pressure over energy and resource consumption. Chicago Mayor Brandon Johnson issued an August executive order requiring city reviews of data center developments to include air pollution-control permits, noise regulations, and assessments of power demand and water use. The state-level incentive program committed more than $650 million in tax exemptions to 34 projects before Governor J.B. Pritzker paused applications earlier this summer. Meanwhile, Chicago has slipped from ranking second or third for total data center capacity between 2017 and 2022 down to seventh in 2025 according to JLL. Cook County currently tracks 114 data center facilities with 11 more in the development pipeline.

Parts Town Unlimited has leased a 538,400-square-foot facility at Jackson 85 North Business Park in Pendergrass, Georgia, according to bisnow.com. The new space serves as the appliance and HVAC parts supplier's largest global fulfillment center outside its Chicago, Phoenix, and Munich locations, supporting more than 140 local jobs. Trammell Crow Co. and CBRE Investment Management own and developed the building, with Wilson Hull Neal representing the landlords and SK Commercial Realty brokering for the tenant. CEO Bill Geary noted that placing mission-critical original equipment manufacturer parts closer to customers in the Southeast will reduce transit times and shipping costs.

commercialobserver.com reports that Meridian Group and Harrison Street Asset Management have acquired a five-building office portfolio totaling 431,000 square feet in Chantilly, Virginia. The joint venture, which also includes HLM Associates, bought the Stoneleigh and Newbrook campuses in the Westfields submarket of Fairfax County from an affiliate of the RMR Group. Bisnow reported the sale price at approximately $67 million, though the buyers did not officially disclose pricing. The buyers plan to invest additional capital to modernize infrastructure and expand secure-facility capabilities across the properties. The portfolio serves defense, intelligence, and national security tenants. Harrison Street manages approximately $109 billion in assets.

Bisnow.com reports that Chicago-based private equity firm Manna Capital has filed an application to build a 40-story multifamily tower at Eighth and Stevenson streets in San Francisco. The 433-foot skyscraper will rise on a 0.2-acre surface parking lot owned by the Aslanian 2006 Revocable Trust of Napa, adding 288 residential units to the city's Mid-Market neighborhood. The project is projected to cost upwards of $125 million and will include 38 affordable housing units to qualify for the city's Family Zoning Plan incentives. Manna Capital is also utilizing California Senate Bill 330 to freeze local zoning rules and expedite the permitting process. Designed by Handel Architects, the 303,000-square-foot tower features a six-story podium parking garage with 107 spaces, backed by downtown occupancy rates that reached 97.4 percent in the second quarter of 2026 alongside average rents of $4,007.

housingwire.com reports that sales of new single-family homes fell to a seasonally adjusted annual rate of 607,000 in July 2026, down 10.5% from June and 6.3% from a year earlier. The median sales price fell to $393,800, its lowest level since July 2021. Inventory rose to 488,000 homes, representing 9.6 months of supply at July's sales pace. Calculated Risk analyst Bill McBride notes that 117,000 completed homes were for sale in July, nearly four times the record-low 31,000 in February 2022. Another 256,000 homes were under construction, leaving builders with standing inventory that accumulates carrying costs and taxes. Builders are using price cuts and mortgage-rate buydowns to clear units, bringing the national median price 14% or more below its 2022 peak. Smaller and less well-capitalized builders face intense margin pressure as expensive land, municipal impact fees, and labor costs remain elevated.

Commercialobserver.com reports that a joint venture between Stratford Partners and LLJ bought the Pacifica Palms Apartments in Escondido for $33.6 million. The 189-unit complex spans 20 buildings across eight acres at 1861 East Washington Avenue. Pacifica Palms LLC, managed by David J. Snodgrass and Barbara Snodgrass, sold the property in a transaction brokered by Institutional Property Advisors. The purchase price breaks down to approximately $178,000 per unit for the asset, which was completed over 60 years ago. Institutional Property Advisors representatives Chris Zorbas and Alexander Garcia Jr. handled the deal. Garcia notes that Escondido home prices have increased 19 percent since 2021, widening the cost gap between renting and owning. Marcus & Millichap data indicates San Diego vacancy stood at 4.2 percent earlier in the year with average effective rents of $2,832 per month.

Americanbanker.com reports that Chase Home Lending is set to raise $378.7 million through a residential mortgage-backed security designated as Chase Home Lending Mortgage Trust 2026-AGY2. The transaction is backed by a pool of 651 first-lien residential mortgage loans originated and serviced by JPMorgan Chase Bank. The asset pool consists entirely of fully amortizing, fixed-rate, prime, agency-eligible mortgages with original terms between 25 and 30 years. All underlying loans comply with the new general Qualified Mortgage rule, with roughly 99.7% designated as QM safe harbor. Citibank acts as the securities administrator and Delaware trustee, while Pentalpha Surveillance serves as the representations and warranties reviewer. Morningstar DBRS assigns a preliminary AAA (sf) rating to the senior certificates, supported by a 7.25% credit enhancement from subordinated tranches.

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