Today, we’re coming at you rapid-fire with a few M&A announcements, as the real estate industry made sure Elon Musk’s X-to-xAI merger didn’t get all the headlines.

First comes word that Donald Trump Jr. and Eric Trump are merging their American Data Centers business into American Bitcoin, taking a 20% stake in the bitcoin miner. ADC was only launched a month ago. American Bitcoin is majority-owned by Hut 8, which owns 11 data centers and has said finding ways to build low-cost data centers is the key to its success. 

Though there is political backlash against crypto mining, developers say it can actually help states’ power woes. 

Then, over in the residential mortgage world, Rocket Cos. is buying Mr. Cooper Group for $9.4B. The combined company will handle 1 in 6 U.S. mortgages with a book of $2.1T, and the deal comes hot on the heels of Rocket’s acquisition of Redfin earlier this month in a deal valued at $1.75B. 

Home sales cratered in January to record lows, but NAR sees hope on the horizon: “The momentum for home sales is flashing encouraging signs,” NAR Chief Economist Lawrence Yun said this month.

— Kayla Carmicheal, Jay Rickey, Catie Dixon and Mark F. Bonner

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CRE News Quiz

In 2015, this REIT was formed to sell off Sears department stores as the company folded. Why is it making headlines 10 years later?

(Answer at the bottom.)

On Our Radar

• EXCLUSIVE: Appraisal Institute hit with explosive fraud suit over test scores. A former education director at the Appraisal Institute has filed a lawsuit alleging the organization has submitted fraudulent appraiser test results to state regulators since at least 2020. The suit claims the nonprofit used a standardized pass-fail threshold nationwide, ignoring differing state requirements, causing some candidates to be wrongly licensed or denied. The whistleblower says she was fired in retaliation for raising the issue. A former CEO also echoed concerns, describing internal resistance to reform.

• Sigh … new tariffs are coming. Markets are on edge again as President Donald Trump readies a volley of novel “secondary tariffs” targeting “all countries” on Wednesday. Peter Navarro claimed on Sunday that tariffs will beget a $6T revenue windfall. If true, that would be the biggest tax hike since WWII. But rising consumer pain is palpable. Global markets don’t like any of it and are deeply ruffled. With the Dow sliding and recession odds rising (Goldman upgraded its recession risk to 35%), Trump’s so-called “Liberation Day” is fueling anything but calm. That said, CRE might still be sitting pretty.

• Pension funds are bucking the climate pullback. As the SEC scales back its climate disclosure rules and major U.S. banks exit net-zero alliances, NYCERS joined the UN-backed Net Zero Asset Owner Alliance days after Trump’s reelection, citing fiduciary duty over politics as climate risks threaten long-term returns. In October, NYCERS’ head of real estate told Bisnow the $274B fund avoids short-term reactions, maintaining a roughly 8% CRE allocation focused on multifamily and industrial. Only a third of the top 25 real estate lenders have set decarbonization goals, despite the sector driving 40% of global emissions.

• The madness is nearing an end. The top two entries in Bisnow's First Draft bracket challenge are tied and have Duke beating Florida in next Monday's Championship game. The tiebreaker between Barry Regenstein and David Crowley is the championship game's total points. Crowley predicted 168 points, Regenstein predicted 7. Unfortunately for Regenstein, this isn't the Price is Right Showcase Showdown — you don't lose if you go over. 

Today’s Deep Dive: What CoreWeave’s Lackluster IPO Means For Data Center Demand

The underwhelming initial public offering of artificial intelligence cloud provider CoreWeave has been framed within a broader narrative of uncertainty about whether bullish demand projections for AI computing and data center capacity will ever come to fruition.

“There’s not a lot of factual points where you can say it’s a clear indication of less demand in the system, but there’s clues popping up all over to tell you it’s a little different than it was three months ago,” said David Guarino, managing director of data centers and towers at Green Street Advisors.

“The public market is clearly saying that the risk related to AI demand has increased and that the future is less clear than it was three months ago, and prices are adjusting accordingly.”

Read the full story here.

This Morning’s News

FINANCE — CFPB Wants To Return ‘Redlining’ Fines (Yahoo Finance and Bloomberg): The Consumer Financial Protection Bureau is attempting to return penalties collected from a lender accused of “modern-day redlining” as it prepares to roll back its reforms to the Community Reinvestment Act. Read more here and here.

PEOPLE — Nuveen Names New Global Head Of Real Estate (Nuveen): Nuveen has promoted Chad W. Phillips to oversee its $150B global real estate platform, succeeding Chris McGibbon, who is retiring in June. Read more here.

LEGAL — Alexandria Sues Former Executive, Claiming Stolen Trade Secrets (Bisnow): The life sciences REIT sued William DePippo, a former senior vice president, alleging he stole confidential information about its properties and finances. Read more here.

TARIFFS — Screws Already Disrupting Manufacturers (WSJ): New tariffs on steel screws and fasteners are pushing up input costs for American manufacturers, who warn of price hikes and project delays as they scramble to adjust supply chains. Read more here.

INVESTMENT — Affordable Housing Fund Raises $2.5B (NYT and Vistria): An affordable housing fund launched by The Vistria Group has surpassed $2.5B in commitments, which it said makes it the largest dedicated affordable housing strategies in the U.S. Read more here and here.

RETAIL — Retail Availability Rises For First Time Since 2022 (Chain Store Age): Available retail space ticked up for the first time in two years even as leasing activity remains elevated in some categories. Store closures more than doubled in 2024 compared to 2023. Read more here.

PEOPLE — Newmark Valuation Settles Document Use Lawsuit (Bisnow): Newmark's valuation and advisory group alleged former Newmark employee Bryan Younge misappropriated confidential information when he left the company to start a commercial appraisal business at the end of 2024. Read more here.

INVESTMENT — CRE Investors Pivot Toward Smaller Deals (CoStar): With large property vacancies on the rise, investors are favoring lower-dollar deals — particularly in industrial, flex, and neighborhood retail, according to the latest CCRSI report. Read more here.

ENTERTAINMENT — Billionaire Exits Paramount Board Amid Turmoil (Crain’s New York): Katharina Otto-Bernstein, the billionaire filmmaker and producer who has served on Paramount's Board since it went public in 2014, controls 5.6% of Paramount shares. Paramount has been under fire for undisclosed perks to its CEO. Read more here.

OFFICE — Top-Tier Office Rents Slip Across Major Markets (TRD): Full-service Class-A CBD rents in the U.S. fell 2.4% after at least five consecutive years of rent growth. Read more here.

HOUSING — Rents Rise For Second Straight Month (Apartment List): A typical rent today is 20% higher than it was in January 2021. The national vacancy index now sits at 6.9%, the highest reading since the data started being measured in 2017. Read more here.

POLITICS — Fertitta’s Disclosure Reveals Real Estate Holdings — And Debt (TRD): Tilman Fertitta’s disclosure forms to become U.S. ambassador to Italy show a portfolio heavy with hospitality holdings and serious debt. Read more here.

MULTIFAMILY — Permitting Slows In High-Supply Metros (Real Page): Several cities with large pipelines — like Austin, Phoenix and Salt Lake City — are pulling back on new multifamily permits. Read more here.

OZs — Toxic Sites Into Opportunity Zones? (KXXV-Central Texas): A proposed federal measure would extend QOZ tax incentives to Superfund and brownfield sites. Read more here.

FINANCE — BXP Expands Credit Capacity To Nearly $3B (BXP): Boston Properties has upsized its unsecured credit facility to $2.95B and increased its commercial paper program to $750M. Read more here.

RETAIL — Boscov’s Is Department Stores’ 'Last Man Standing' (Bisnow): Boscov's, the nation's largest family-owned department store chain, plans to open its 51st store at The Mall at Greece Ridge near Rochester, New York, this fall. Despite widespread closures among competitors like Macy's and JCPenney, Boscov's continues to thrive. Read more here.

CONSTRUCTION — Muted Spring For Homebuilders Amid Rate, Tariff Headwinds (Yahoo Finance): Builders are preparing for a soft spring selling season as mortgage rates hover near 7% and tariff uncertainty weighs on buyer confidence and construction costs. Read more here.

FINANCE — Hudson Pacific Secures $475M CMBS Loan (Hudson Pacific): Hudson Pacific Properties has closed on $475M in CMBS financing backed by six office assets. Read more here.

REITs — Innovative Industrial REIT Looks To Overhaul Tenant Roster (Innovative): Following a series of tenant defaults, cannabis-focused IIPR says it's eyeing a “substantial refresh” of its tenant base. Read more here.

HOTELS — Boutique Hotel Channels Howard Johnson’s Vibe (CoStar): A new hotel project in Iowa is drawing inspiration from Howard Johnson’s, a hotel chain from the 1950s through the 1970s that generated a cult following among design fans. Read more here.

***

So You’ve Come For An Answer

Its chief executive is stepping down.

Andrea Olshan is leaving Seritage Growth Properties effective April 11 as the company winds down operations. Olshan took over the position in 2021, leaving the same role at Olshan Properties, where she still serves as chairman. Seritage still has 15 Sears properties to sell. 

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The First Draft is produced by Director of Newsletters Jay Rickey, Managing Editor Catie Dixon, Editor-in-Chief Mark F. Bonner and Deputy Newsletter Editor Kayla Carmicheal, with an assist from AI. We’d love your feedback! Email us at firstdraft@bisnow.com.