KeyBank Real Estate Capital (KBREC) secured a $28 million Freddie Mac floating rate loan for Presidium, a Texas-based real estate developer, to refinance existing debt on a multifamily property in Harlingen, Texas.

Valor at Harlingen is a 288-unit, garden style apartment complex that consists of 13, three-story residential buildings. Built in 2013 and situated on 16.40-acres, the property includes a clubhouse, maintenance and storage buildings, and seven garage buildings.

The $28,020,000 ($97,292/unit) non-recourse, first mortgage loan is structured with a five-year term, and subsequent to a three-year interest only period, amortizes on a 35-year schedule.

Patrick McFarland and Benjamin Baxter of KeyBank Real Estate Capital arranged the financing.

Cinnaire closed a $340 million Low-Income Housing Tax Credit (LIHTC) multi-investor fund (Fund 43)—the largest investment fund in the organization’s 32-year history.

Designed to create housing that provides people a safe, stable place to call home, this fund will finance 33 developments across 11 states, providing 2,455 affordable housing units supporting more than 5,400 individuals and generating more than $844 million in local economic activity.

This milestone closing reaffirms the critical role the LIHTC program plays in addressing the nation’s housing crisis and highlights the commitment of both developer and investor partners to creating communities that serve families, seniors, and people with special needs. Fund 43 demonstrates Cinnaire’s strong regional partnerships and national impact. Notably, 90% of the investments are with repeat developer partners.

“For nearly four decades, the Low-Income Housing Tax Credit has been the cornerstone of affordable housing development,” said Ryan Robinson, President, Cinnaire Equity Partners. “The support from our developer and investor partners in Fund 43 reaffirms the important role LIHTC plays in addressing our nation’s housing crisis. By investing in affordable housing, we’re simultaneously creating new jobs, stimulating local economies, and promoting long-term stability in our communities.”

Fund 43 will support transformative developments including:

Haven on Main – La Crosse, WI (Rendering attached)

Haven on Main is a 70-unit mixed-income community including 59 affordable units and 11 market-rate units. Eighteen units are reserved for individuals with intellectual and developmental disabilities, veterans, and those experiencing chronic homelessness. Half of the total units are designed to support independent living for adults on the autism spectrum, addressing the pressing housing need identified by Haven for Special People. The development will offer safety features, green space, therapy and fitness rooms, and job opportunities nearby. Full supportive services will be provided by CouleeCap, a trusted regional leader in housing and anti-poverty work, in partnership with Invista and Haven for Special People.

Imani Village Phase IV – Wilmington, DE

Located in New Castle County, Imani Village IV will deliver 84 new units—57 affordable and 27 market-rate—serving families as part of the Riverside community revitalization effort in Wilmington. Developed by Pennrose Properties in partnership with REACH Riverside and Wilmington Housing Authority, this project is aligned with Purpose Built Communities’ mission to transform neighborhoods of concentrated urban poverty. Supportive services will be offered through Kingswood Community Services. Imani Village IV is the fourth phase of Cinnaire’s partnership with Pennrose and a key component of Wilmington’s inclusive redevelopment plan.

Wellspring Recovery – Farmington Hills, MI

Wellspring Recovery will provide 72 affordable units in Oakland County, Michigan, including 60 units of permanent supportive housing (PSH) dedicated to individuals recovering from opioid addiction. The PSH units will be housed in a separate building divided by a natural green space and supported by project-based rental assistance from Maryland State Housing Development Authority (MSHDA). Developed by MiSide and Southfield Nonprofit Neighborhood Corporation, the project will feature wrap-around recovery services and comprehensive support for residents. Wellspring marks Cinnaire’s third syndicated opioid recovery housing project and responds to Michigan’s urgent need for housing solutions in the wake of nearly 3,000 overdose deaths in 2023.

With the successful close of Fund 43, Cinnaire has now raised nearly $5.6 billion in LIHTC equity and leveraged more than $11.7 billion in community investment, strengthening its legacy of building thriving communities through mission-driven investment.

In recent months, the real estate sector has been swept up in a surge of legal challenges, particularly surrounding pricing practices and allegations of anti-competitive behavior. Three significant cases have emerged, shedding light on the potential risks and costs associated with these lawsuits for landlords and property management companies.

As a multifamily owner and operator, it is imperative to grasp the implications of these legal battles, especially concerning insurance coverage and the financial burdens they may impose.

Price-fixing

On December 5, 2024, a U.S. judge ruled that Yardi Systems, a leading software provider for property management, must confront a price-fixing lawsuit. The case alleges that Yardi conspired with landlords to manipulate rental prices through its widely used software. This lawsuit not only raises questions about the practices of software providers but also subjects the landlords who utilize these systems to intense scrutiny

The implications of such a lawsuit are profound. Even if the claims are ultimately deemed frivolous or unfounded, the legal fees associated with defending against such allegations can be exorbitant. For many real estate companies, these costs can escalate rapidly, straining financial resources and diverting attention from core business operations. The potential reputational damage can also deter prospective tenants, further complicating recovery efforts.

Antitrust

In a parallel development, the U.S. Department of Justice (DOJ) recently filed a lawsuit against six large apartment owners/managers, accusing them of engaging in an algorithmic pricing scheme that allegedly harmed millions of renters. The DOJ claims that these landlords used sophisticated algorithms to coordinate pricing strategies, effectively stifling competition and inflating rental prices.

This case underscores the increasing scrutiny of pricing practices in the multifamily sector, particularly as technology becomes more integrated into property management. The potential for hefty fines and legal repercussions looms large, and the financial burden of defending against such claims can be crippling for landlords. The stakes are high, and the need for robust legal and insurance strategies has never been more critical.

Hidden fees

Adding to the legal landscape, the Federal Trade Commission (FTC) has accused one of the largest property management companies in the U.S., of imposing hidden fees on tenants. The FTC’s lawsuit alleges that these fees are not transparently disclosed, leading to consumer deception and unfair business practices.

The financial implications here could be significant. The costs associated with legal defense, potential settlements, and reputational damage can have lasting effects on a company’s bottom line. As public awareness of these practices grows, the pressure on property management companies to maintain transparency and ethical standards intensifies.

The insurance coverage gap

For many real estate companies embroiled in these lawsuits, the financial ramifications extend beyond immediate legal fees. A critical concern is the lack of adequate insurance coverage to address these specific legal challenges. Most casualty insurance policies contain exclusions for antitrust claims, meaning that carriers may deny coverage for legal fees or defense costs associated with these lawsuits.

This exclusion poses a significant risk for landlords, apartment owners, and property management companies. As legal challenges become more prevalent, the potential for financial loss increases, and many companies may find themselves unprotected against the very lawsuits that threaten their operations. Understanding the nuances of insurance policies is essential to safeguarding against these emerging risks.

The recent legal challenges facing landlords and property management companies highlight the complex interplay between technology, pricing practices, and regulatory scrutiny in the real estate sector. As these lawsuits unfold, the financial implications for the companies involved can be severe, particularly in light of the potential for high legal fees and the lack of insurance coverage for antitrust claims.

As commercial risk advisors, it is essential to educate clients about these risks and the importance of understanding their insurance policies. In this evolving landscape, proactive risk management strategies will be crucial in navigating the challenges posed by legal disputes and ensuring financial stability in an increasingly litigious environment.

If you are a multifamily owner or operator, now is the time to assess your insurance coverage and ensure you are adequately protected against these emerging legal challenges. Reach out to a specialist in commercial real estate insurance today to discuss your options and develop a risk management strategy tailored to your needs. Don’t wait until it’s too late—protect your investment and secure your future in this dynamic market.

The opinions and thoughts expressed here are those of the individual authors and should not be taken as legal advice. They are providing them based on their professional and personal experience. They do not represent the views or opinions of Marsh & McLennan Agency, its parent companies or any of its affiliated companies

Marshall Ballard is advisor, real estate, and Stephen McCord is executive vice president, real estate, with the Marsh McLennan Agency, a provider of business insurance with locations across the United States.

JLL Capital Markets completed the $26 million sale of University Park, a 206,657-square-foot, mixed-use building in Austin, Texas.

JLL represented the seller, Lionstone Investments, in the sale of the property to the City of Austin.

Located at 3300 N. Interstate Highway 35, University Park is just north of the University of Texas and adjacent to St. David’s Medical Center. The property is close to a variety of restaurants, retail shops and entertainment options at The Triangle, The Drag, Mueller and Manor Rd. In addition, University Park is just 2.5 miles north of downtown Austin and 1.6 miles from the burgeoning Innovation District, Austin’s emerging life sciences hub.

University Park was built in 2008 and offers eight stories of Class A office space with collaborative workplaces and views of downtown and Western Hill Country. The property was approximately 20% leased at the time of closing.

The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Managing Directors Ryan Stevens and Drew Fuller.

For the first time in 16 quarters, more retail space was vacated in the first quarter of this year than was occupied, according to JLL.

In its first quarter U.S. retail outlook, JLL reported that net absorption in the country’s retail sector fell to negative 2.7 million square feet in the first three months of 2025.

JLL also reported that announced retail closures from 2024 through early 2025 totaled more than 9,900 locations, with big names such as Party City, Big Lots and JOANN leading the way.

These closures might result in higher leasing activity, with JLL saying that they are returning millions of high-demand square feet back into the market in the second quarter of this year.

Freshly vacated space often gets leased quickly by retailers that are expanding. According to JLL, nearly one-third of the 17,248 new leases signed in the first quarter of the year sat on the market for less than five months. More than half of the new leases were signed within 10 months of the space being listed.

A good example of this can be found in the bankruptcy auction of Party City space. Nearly one-third of Party City’s 695 leases were bought by other retailers. Value stores like Five Below and Dollar Tree led this buying spree.

JLL reported that U.S. retail investment volume in the first quarter grew 13% on a year-over-year basis. Compared to the fourth quarter of 2024, though, retail investment volume dropped 7%.

Despite challenges, the U.S. retail market remains resilient. JLL reported that the sector’s vacancy rate stood at 4.1% in the first quarter of the year, while average market rent hit $25.51 a square foot.

A total of 44.7 million square feet of new retail space was under construction as of the end of the first quarter.

Provident Industrial announced the successful closing of Eastex 59, a planned four-building industrial park in North Houston, Texas.

Eastex 59 will be located just east of George Bush Intercontinental Airport. The site totals 740,404 square feet of industrial space, offering unit sizes ranging from 148,000 to 224,000 square feet.

The project features ample trailer storage & car parking, efficient circulation, and coveted visibility, making it highly attractive to prospective tenants.

Strategically positioned with direct access and frontage on Highway 59, Eastex 59 presents a unique opportunity for businesses seeking efficient logistics in an attractive location. The North Houston submarket consistently ranks as a top performer within the Houston MSA, with year-over-year rents, net absorption, vacancy rates, and sales volume all outperforming the overall Houston market.