Norway’s sovereign wealth fund is going local with its latest investment in U.S. real estate.

Norges Bank Investment Management invested $500M with Asana Partners to buy high-quality neighborhood retail assets, the Charlotte-based retail investment firm announced Tuesday. It is at least the second — and a relatively small — bet on U.S. retail real estate from Norges this year.

Asana Partners, which has more than $9B in assets under management, and Norges are creating a fund called Asana Partners Strategic Partners I to hold the investments. The strategic partnership is starting with a 50% stake in a portfolio of grocery-anchored retail centers but will also target unanchored centers, street retail and mixed-used assets for investment.

“Forming APSP I reflects our shared conviction in the strength and resilience of neighborhood retail real estate and expands our existing capability to capitalize on attractive investment opportunities across the country,” Asana partner Reed Kracke said in a statement.

Asana and Norges didn’t disclose the properties the sovereign wealth fund bought into and declined a request from Bisnow to provide additional details Tuesday morning. Asana’s portfolio spans 10.3M SF in 25 cities, according to its website.  

The partnership with Norges is running alongside Asana’s existing Asana Partners Select Fund, and Asana has acquired at least two assets separately since the start of the year. It paid $151M for a Huntington Beach, California, shopping center in February, the same month it cut a deal to acquire a 197K SF retail center called The Arboretum in Austin.

The investment comes after Norges announced a strategic pivot to diversify its real estate investments across sectors and geographies.

The manager of some $2.2T in assets as part of the Norwegian Government Pension Fund Global said in December that it would invest up to 7% of its capital in global real estate, with a focus on buying into platforms and funds. Norges is looking to hold a diversified portfolio spread across the globe, with 30% to 70% of its portfolio allocated to North America. 

The three-year strategic plan aims to create a more balanced portfolio after the firm told the Norwegian government in a November letter that its real estate investments had underperformed its equity and bond holdings. 

Norges has already been putting some of that capital into grocery-anchored retail. Last month, it partnered with TPG, PSP Investments, La Caisse and others to buy Echo Realty and its 230 retail centers across the Midwest and Southeast in a deal valued at around $2B. 

Grocery-anchored retail and other necessity-based asset classes have become popular investment targets for institutional capital, including a $1.6B fund launched in December by Bain Capital Real Estate and 11North.

AV Management, a private New York based investment firm, completed the acquisition of 73-75 Sullivan St. in SoHo from a longtime SoHo developer for $43,333,000. Cushman & Wakefield’s Dylan Walsh and Nico Nicolaou represented the seller. Citizens Private Bank provided $21.6 million in competitive acquisition financing under significant time constraints.

73-75 Sullivan St. was completed in 2016 as a ground-up construction project. It features expansive layouts, modern construction vintage and long-term commercial tenancy, according to AV Management.

“This special situation transaction represents the robust opportunity set to purchase investment-grade assets at historically high yields by taking advantage of early-cycle market dynamics,” said AV Principal Ahcene Ouldsaada. “73-75 Sullivan St. capitalizes on the dislocation caused by the 2022’s historically unprecedented hike in domestic base rates. The asset was acquired at an opportunistic basis and will be held long-term as a permanent income vehicle with an option for attractive liquidity as markets normalize.”

Aerospace materials provider ATI is considering a $300 million expansion in Monroe. ATI hopes to make a site selection decision in time for the new capacity to be online in the second half of 2027.

The Charlotte Business Journal reports Project Seven would see ATI invest $200 million to build and equip a new 172,000-square-foot production facility on its Monroe campus off Goldmine Road. That facility would create 70 precision manufacturing jobs. 

Monroe City Council approved a $3.74 million economic development incentive grant for Project Seven at its April 28 meeting.

ATI is also investing $100 million in a new 100,000-square-foot facility through Project Nickel. That facility would create 60 precision manufacturing jobs. It would go on its existing Bakers campus off North Rock River Road in Monroe. 

Council approved a $1.87 million economic development incentive grant for the project at the same meeting. It also approved an annexation request for that project. 

Hilltop Residential, a Houston-based multifamily investment manager, closed its largest fundraise to date, raising $288M in commitments and planning to acquire up to $2B in assets. 

Hilltop Growth Fund VI will be used to acquire properties at “compelling bases” created by today’s capital markets dislocation, the company announced Tuesday. 

“Our strategy remains consistent: Acquire high-quality assets in growth markets where we can create value through operational improvements, capital enhancements, and disciplined asset management,” Hilltop Residential Managing Partner Greg Finch said in a news release.

Hilltop expects the fund to acquire about $1.5B to $2B in gross asset value and to fully deploy the fund within two years. Hilltop has already acquired nine assets with the fund and identified additional opportunities, according to the press release.

Finch, former president and co-founder of Venterra Realty, launched Hilltop Residential in 2017 with his sights set on multifamily value-add opportunities in Texas and other Southern states. The investment and development firm now manages a $3B portfolio of 13,000 units, including 12 properties in the Houston area.

Hilltop has invested in 15 Sun Belt markets, including Atlanta, Nashville, Charlotte and Orlando, Florida. In January, the firm acquired a 292-unit community in the Houston Heights, the Houston Business Journal reported.

Hilltop also acquired a 308-unit community in St. Petersburg, Florida, in November, according to the Tampa Bay Business Journal.

The investor base for Hilltop Growth Fund VI includes endowments and foundations, financial institutions, insurance companies and family offices. 

“Closing our largest fund to date in one of the most challenging capital formation environments we’ve seen reflects the trust our partners have in our platform and our ability to capitalize on today’s multifamily opportunity set,” Hilltop Residential Managing Partner David Wylie said in the release. 

Capital Group is opening a major East Coast operations hub in Charlotte, the company announced in a release Thursday.

An aerial view of Charlotte

The new hub will be a base for the investment firm’s legal, compliance, technology and data work, and it will also support its domestic and international growth, according to the release. The firm said it had selected Charlotte due to the metro area’s “strong and growing talent pool” in the financial services space and its thriving business scene. 

“Charlotte stood out as a natural fit for Capital Group’s next phase of growth,”  Capital Group Chief Operating Officer Rob Klausner said in a press release from the city of Charlotte.

Capital didn’t disclose the exact location of the hub, but Axios reports it will be in Uptown Charlotte. 

The hub will bring in an additional $5.2B in state tax revenue over 12 years, according to the North Carolina governor’s office. The state is making available up to $17M in reimbursement funds through the state’s job development investment grant program because of the firm’s estimated $60M investment in the state. 

As part of the move, the firm will close its office in Virginia’s Hampton Roads area by the end of 2027, Bloomberg reported. 

In the same announcement, Capital said it would invest in its newly purchased Los Angeles headquarters. This past week, the company entered an agreement with a Brookfield Properties entity to purchase the Bank of America Plaza office tower at 333 S. Hope St. in Downtown Los Angeles. It previously leased 320K SF of office space at the tower in a long-term lease that was set to expire in 2030. 

Capital boasts more than 9,300 associates in 33 offices across the world, including Asia-Pacific, Europe and North America. Sixteen of those offices are in the U.S., with four in California.

What do a multifamily community in Florida, a Class-A retail center in Alexandria, Virginia, and a large mixed-use parcel outside of Austin have in common?

Those three developments are representative of the diverse investment opportunities in the top commercial real estate markets in the United States, as identified by Avison Young’s new U.S. Investment Sales platform, known as USIS, which it established earlier this year.

James Nelson, head of U.S. investment sales for the global real estate advisory firm, said USIS is focused on multifamily, office, retail and other development projects in 12 CRE markets that generate roughly 40% of the average annual sales volume for the entire country. 

“If you really want to move the needle as a company or as an investor, you need to focus on these dozen markets,” Nelson said. “Our investment sales group is well positioned to expand our client relationships and identify new business opportunities in these metropolitan areas, leveraging our uniquely integrated teams.”

Nelson said Avison Young’s goal is to drive its sales volume in these markets for transactions worth $25M or more through dedicated research and business development efforts. Opportunities outside these markets are also presenting themselves as Avison Young professionals in other markets seek to leverage the national USIS presence. 

“Multifamily is the most desirable asset class right now, accounting for over a third of the dollar volume year to date,” Nelson said. “As for office, once you start getting more billion-dollar sales, like 590 Madison in New York, that’s really going to start pushing up the numbers.”

USIS partner and principal Erik Edeen added that there were 10 transactions worth more than $100M in Manhattan in the third quarter, at least one in each of the asset classes. It was the first time this has happened in five years.

“This highlights the availability of capital chasing larger deals across the sector spectrum and presents as a vote of confidence for the market in general,” Edeen said.

Despite their impressive performances so far in 2025, USIS’ 12 target markets aren’t even reaching their full potential, Nelson said. On average, these markets are performing at only about half the level they were in 2021 due to the CRE disruptions of recent years, such as higher interest rates.

“You look at these cities and you start to ask, for example, if Dallas is currently a $24B market, does that mean it could be close to a $50B market?” he said. “Or I can tell you that the 10-year average in New York was around $30B and right now it’s two-thirds that. These are big markets with a lot of growth potential.”

Nelson said Avison Young’s approach will appeal to investors who are looking for diversification across asset classes, geography or both. With its local expertise and 60 offices across the country, USIS can locate deals that meet clients’ unique needs and risk profiles, he said. This is particularly important for out-of-town investors who might be interested in growth cities such as Dallas or Charlotte. 

“With all the capital flowing to these major markets, we can help make introductions with our local boots on the ground to win more large-scale business,” he said. “Likewise, if you’re looking to sell, you certainly want someone who has expertise in the local market but who can also put it on a national or even global stage, and that’s what we’re really good at.”

Nelson said the representative developments — the Florida multifamily community, Northern Virginia retail center and suburban Austin mixed-use parcel — exemplify Avison Young’s ability to find and bring local opportunities to the attention of global investors. 

In Florida, 2211 Grand Isle is a 390-unit multifamily community on about 25 acres. Less than a 15-mile drive from Tampa, its garden-style apartments provide much-needed housing.

“There’s always going to be demand for this type of housing and occupancy numbers at 2211 Grand Isle are in the high 90s,” he said. “It’s a really solid investment for someone who’s looking for cash flow with upside potential.”

In Alexandria, 5900 Kingstowne Village Parkway features 88K SF of 100% occupied Class-A retail. As a key component of a much larger mixed-use property, the center also presents significant cash flow with further potential.

“Real estate investors like that theme,” he said.

Meanwhile, Revelry, a master-planned community near Austin, offers more than 200 acres of multifamily, mixed residential and commercial development parcels for sale.

Nelson said the USIS platform gives clients the opportunity to easily invest in projects like these in any of its principal 12 markets, with Avison Young providing seamless support across the country.

“In the brokerage world, especially at a lot of the big shops, there are a lot of silos where, if you want to invest in a dozen markets, you have to meet with a dozen different teams,” he said.

“The nice thing about Avison Young is we’re a principal-owned company with 750 owners and one database. If an investor wants to invest in particular markets, we all have access to that information here. That’s what we’re solving for, and with the traction we’ve already seen out of the gate, I couldn’t be more excited for the future.”

This article was produced in collaboration between Avison Young and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com. 

Real estate investors hoping to lessen their tax burdens next year are putting the pedal to the metal in a race to buy gas stations.

Since 100% bonus depreciation became law in July, gas station, convenience store and car wash investment sales have surged.

National gas station and convenience store investment sale activity has spiked 27% since the law passed, compared to a 17% increase in overall retail investment sales, according to data from net lease-focused real estate firm The Boulder Group. 

The assets’ equipment-heavy requirements make them especially tax-beneficial, sending investors rushing to get deals closed by the end of the year, driving up prices and compressing cap rates.

“It’s really at a fever pitch,” said Jim Ceresnak, a vice president in Northmarq’s Charlotte office specializing in car wash sales.

Demand is coming from new investors, repeat buyers, new investment funds and REITs, he said. 

Bonus depreciation allows investors to deduct the full value of equipment improvements or purchases upfront instead of throughout the lifetime of the investment.

The tax break was originally set to be reduced by 20% annually and would have settled at 40% this year, but the One Big Beautiful Bill Act reinstated permanent 100% bonus depreciation for properties purchased and placed into service after Jan. 19, 2025.  

Unlike other retail, gas stations come with significant equipment like underground storage tanks and submersible pumps. Investors can deduct full depreciation for everything except the land from their taxable income the first year, rather than over the typical 39 years, said Navjeet Chahal of Chahal & Associates, a Northern California-based tax and accounting firm that works with hundreds of gas stations.

“Even though they know that the interest rates are still slightly higher, they do want to take advantage of the bonus depreciation to be able to offset their tax liability, especially toward the end of the year,” Chahal said. 

There has also been a renewed interest in gas stations since the likely timeline of electric vehicles dominating the market has been pushed out. Electric vehicle battery production tax credits will now end in 2028, and Biden-era transition mandates were overturned. 

“No one’s thinking electrical cars aren’t a part of the future,” The Boulder Group President Randy Blankstein said. “They’re just thinking that the day that they take over isn’t 2028. It’s 2035 and later.” 

Hybrid vehicles are likely to be more common before fully electric vehicles, giving the gas station model more longevity, Blankstein said. Gas stations are also seen as recession-proof in an era of slower job growth and rising inflation.

“People understand the essentialness of gas stations day to day,” he said. “You don’t need to make economic predictions as to where we are in a cycle. It’s a pretty essential business for most people.” 

Ceresnak said the demand environment is similar to what it was in 2021 and 2022, the last time there was 100% bonus depreciation from the Tax Cuts and Jobs Act of 2017.

But now there is more inventory available and more operators entering the market, increasing the number of buyers and sellers. 

“It’s a healthier transaction environment,” he said. 

REITs, funds and individuals who bought car washes over the past five to seven years are now looking to exit, some by doing a 1031 exchange into another asset class, Ceresnak said.

“So you’ve seen inventory come from the operators as well as legacy holders that bought sale-leasebacks four or five years ago,” he said. 

Bonus depreciation allows buyers to get more aggressive on pricing, driving up competition for assets, compressing cap rates and making more willing sellers, Northmarq investment analyst Sage Chaffin said. 

“If we’re underwriting something for an operator, our exit cap rate for them is now more aggressive because we’re taking bonus depreciation into account, and so are buyers,” Chaffin said. “Both sides are more aggressive.” 

The frenzy of activity has led more gas station operators to explore sale-leasebacks, which they can use as a financing tool. It has also drawn private equity attention and driven further consolidation in the car wash industry. 

Blankstein said he has seen demand from high net worth investors, mostly those with other existing real estate businesses. The sector is especially appealing for investors with older portfolios that have already taken their full depreciation.

“We’re selling a bunch to a senior housing developer, some multifamily developers,” he said. “Usually you have an existing portfolio of income, and this is kind of a one-time tax benefit.”

But it isn’t a straightforward process, and the tax code can be tricky. About a quarter of gas stations use a ground-lease structure, which doesn’t qualify for bonus depreciation, Blankstein said. 

Convenience stores must derive more than 50% of revenue from petroleum sales to be classified as property that depreciates in 15 years rather than 39 under IRS code, meaning they can qualify for full depreciation in Year 1. Self-serve or tunnel-style car washes without retail on-site can also be classified as 15-year properties. 

But if a convenience store has food service, retail or other revenue that pushes its fuel sales below 50%, only a portion of the property may qualify for 100% bonus depreciation. There is also risk of inaccurate purchase price allocation between the land, building and site improvements, which could trigger an audit, according to Northmarq.

Investors should consult with advisers very familiar with gas station real estate and tax codes, Chahal said, adding he has even had to educate auditors on depreciation rules.

“Just find somebody who understands this business, because not everybody does, and then they end up doing a disservice to you,” he said. 

Gas stations and convenience stores are innovative and ever-changing, providing a long runway for this investment market into the future, said Sai Thakor, Houston-based vice president at CBRE specializing in the sector. Gas stations can adjust their business models based on fuel contract variables, tenants, management and offerings, he said. 

“It gives a blend of real estate and business value, so you get a bang for your buck,” Thakor said.

Some of the activity today is normal cyclical behavior — transactions tend to pick up in the fourth quarter. But that is especially true this year, and there are numerous transactions happening right now, Thakor said.

“A lot of people are scrambling to close before the end of the year because they have a high allocation of taxes,” he said.

Le Investment Group closed the sale of The Mango Tree Apartments, a 56-unit multifamily property located at 8021 Mango Ave., Fontana. The property was sold for $10,850,000, equating to $193,750 per unit.

The all-cash sale closed within 14 days at a 4.50% cap rate, with a GRM of 13.09 and a Pro Forma CAP rate of 6.86%. The property was a value-add play, with low existing rents and renovations required, presenting significant potential for increased revenue and asset appreciation. Le Investment Group represented both the seller and the buyer.

“We are proud to have successfully facilitated this transaction with such efficiency,” said Albert Le, managing partner at Le Investment Group. “This sale helps demonstrate the momentum of the current commercial real estate landscape. Investors are eager to re-enter the market after a period of hesitation, and this transaction highlights the demand for well-located, income-generating properties.”

U.S. net-lease investment surged in 2024, led by the industrial & logistics sector, CBRE reported. On a dollar-volume basis, 2024 saw a 13% year-over-year increase to $43.7 billion, boosted by an especially strong fourth quarter.

Industrial & logistics increased its share of net-lease investment activity to 64% in Q4 from 54% a year earlier. In 2024, investment volume for industrial increased 87% from a year earlier.

“The net-lease sector demonstrated remarkable resilience and growth in 2024, driven by its stability and appeal to investors seeking compelling risk-adjusted returns,” said Will Pike, vice chairman of net lease properties for capital markets at CBRE. “We anticipate continued momentum in net-lease investment, especially in retail and the industrial & logistics sector, as investors prioritize low-risk opportunities amid potential capital markets volatility in the first half of 2025.”

The average cap rate rose by nine basis points quarter-over-quarter and 56 bps Y-O-Y to 6.8% in Q4 2024.

Pictured: A net-leased FedEx facility in Portland, OR, which traded for $32 million in 2024. Courtesy B+E.

Blackhawk, LLC recently completed the $1.7 million investment purchase of a medical office building located at 4702-4706 NE Glisan Street in Portland, Oregon.

Tim Pfeiffer with Portland-based Norris & Stevens, Inc. represented the Buyer, and John Fezler, Nathan Oakley, and Nathan Sasaki with Apex Real Estate Partners, LLC represented the Seller, Providence Health & Services – Oregon, in the transaction.

Constructed in 1912, the approximately 7,815 square-foot single-tenant office building features a mix of open space, private offices, and a conference room. The property includes an ADA entrance and multiple ADA restrooms, as well as off-street parking.

The two-story property is located on NE Glisan Street across from Providence Portland Hospital, with convenient access to I-84, I-205 and Portland International Airport.