Real estate brokers, owners and tenants pushed through big multifamily, office, industrial and retail deals in the first quarter of 2023, a period marked by disruptions to capital markets, diminished debt availability and curtailed transaction activity.

The sale and lease deals recognized in the latest CoStar Power Broker Quarterly Deal Awards for the first three months of the year stood out as some of the biggest of the past year.

The deals reflected trends shaping the overall economy as higher interest rates, inflation and layoffs slow buyer and renter demand across the United States.

Big office and retail leases in New York, for instance, provided a shot in the arm to the sluggish recovery of the nation's largest commercial real estate market, and a big warehouse deal in Georgia highlighted the steady business demand for industrial space, especially near U.S. ports.

Investment Firm Buys Apartments Near San Francisco

Carmel Partners paid $925 million to buy a pair of apartment complexes just south of San Francisco in one of the few large multifamily portfolio sales this year.

The San Francisco-based institutional investment manager bought the the nearly 3,000-unit Westlake Village and the 122-unit Terrace View apartments in Daly City from Gerson Bakar & Associates, also based in San Francisco.

The sale was the largest by total price in the United States in the first three months of 2023 as U.S. apartment sales fell to one of the lowest levels of the past decade, CoStar data shows.

Demand began slowing last year when the Federal Reserve pushed up interest rates to tame inflation, making financing numbers unworkable for some potential apartment buyers.

Carmel assumed just under $250 million in debt as part of the acquisisition and purchased the portfolio with the biggest multifamily investment fund it has raised to date since its 2003 inception, which closed this year with a total of $1.58 billion.

Joseph Smolen and Jeffrey Weber of investment brokerage Eastdil Secured listed the portfolio for sale, CoStar data shows.

Housewares Firm Leases Giant Warehouse Near Georgia's Port of Savannah

Bradshaw Home, a privately owned housewares distributor, signed one of the biggest warehouse leases of the year by square footage as industrial properties remain commercial real estate's hottest property type.

Southern California-based Bradshaw signed a first-quarter lease to take over a 1.2 million-square-foot warehouse under construction at the 160-acre Savannah Portside Industrial Park, east of Georgia's fast-growing Port of Savannah.

Panattoni Development Co., a developer based in Irvine, California, is building the warehouse in Bloomington, Georgia. The development is slated to finish construction this year.

Bradshaw describes itself as “the largest gadget supplier in the world,” shipping over 200 million devices from kitchen tools to cookware and cleaning supplies. The company reports combined annual sales of over $450 million and has 400 employees in the United States and Asia, according to its website.

Hillary Shipley and Danny Chase, based in the Savannah office of Colliers, brokered the lease.

Hedge Fund Renews Lease in New York's Soho District

A hedge fund that uses artificial intelligence and other technology as part of its investment strategy renewed its lease in the latest sign of confidence in New York, the nation's biggest office market.

Two Sigma Investments, based in New York, signed a seven-year renewal for its more than 265,000 square feet at 100 Avenue of the Americas near the SoHo District and Hudson Square.

Two Sigma, which also leases more than 100,000 square feet next door at 101 Avenue of the Americas, has about $60 billion in assets under management, according to its website.

The amount of available sublet space recently reached an all-time high in New York, where some tenants have been slow to return to their offices after adopting hybrid work arrangements. The city's office availability rate of more than 16% is well above the 11% average just before the pandemic, according to a CoStar Market Analytics report.

Newmark's Peter Shimkin, David Falk and Jonathan Franzel represented the building owner, a joint venture of Trinity Real Estate, Norges Bank Investment Management and Hines, according to CoStar data. Peter Trivelas and Christian Helgesen of Cushman & Wakefield represented the tenant.

Louis Vuitton Signs Deal To Move Manhattan Flagship Store

Louis Vuitton signed a deal for store space in Midtown Manhattan in the latest sign of confidence by luxury retailers in one of the world's most exclusive shopping districts.

The French luxury brand recently announced that it would relocate its store from 1 East 57th Street, a 16-story building where it also has offices, to 6 East 57th Street in the Plaza District submarket.

The buildings are in New York's so-called "Billionaires' Row," an area noted for its high-end condominiums, stores and offices. LVMH, the French multinational holding and conglomerate that owns Louis Vuitton, moved to 6 East 57 while it redevelops 1 East 57th Street as its new flagship store, according to reports by multiple media outlets.

Digby Management Co., a New York-based real estate company, owns the five-story building at 6 East 57th Street, according to New York City records. Former President Donald Trump's real estate company, The Trump Organization, owns the land under the building in a long-term ground lease.

The space had been occupied by Tiffany & Co., another subsidiary of LVMH. The jewelry story is moving next door so Louis Vuitton can take the space.

Manhattan's Plaza District, including Fifth Avenue, has long been an international flagship location for many of the world's top luxury fashion retailers.

Louis Vuitton's lease is among several recent deals in the Plaza District by a range of businesses, including Harry Winston, Chopard, Gucci, Valentino, AllSaints and Aritzia. The stepped-up activity suggests that luxury retailers have long-term confidence in the area as more tourists and office workers return to Midtown Manhattan, according to CoStar Market Analytics.

Robin Zendell of New York-based Robin Zendell & Associates represented Louis Vuitton in the five-year lease. Joann Podell of Cushman & Wakefield has been a primary listing broker for the building.