RXR’s $475 million financing package to convert 61 Broadway into 796 apartments marks a striking reversal for a tower that fell into default just three years ago. Rather than surrender the asset, the firm is betting that repositioning distressed offices into housing can unlock more value than waiting for office demand to recover.

The deal reveals how conversions at this scale are being made possible. Private credit is stepping in where traditional banks have retreated, tax equity is monetizing historic preservation value, and public incentive programs are closing the remaining gaps. Together, they are forming a financial structure that is rapidly becoming the standard model for large office-to-residential projects.

RXR is not treating this as a one-off rescue but as a repeatable strategy. With multiple major conversions underway and the same capital partners returning, the firm is positioning itself to capitalize on the structural reset in office demand and redefine what happens to aging towers in prime locations.

Traditional grocery stores are under renewed pressure, and the latest research from JLL makes it clear that their challenges are now a seemingly permanent part of the U.S. retail landscape rather than a short-lived cycle. Same-store sales and foot traffic are soft, format economics are under stress from e-commerce and discount competition, and the capital intensity of maintaining fresh-food operations is squeezing margins. In markets where grocers once anchored shopping centers and drove consistent weekday traffic, landlords are increasingly asking whether those leases still deliver the spill-over benefits they once did.

JLL’s data shows that traditional supermarkets are losing share to a mix of hard discounters, specialty formats, and online fulfillment models. Big-box and dollar stores have carved out price-value niches, while e-grocery and delivery services have chipped away at convenience shopping. Even grocers that have expanded non-food assortments or added prepared-food offerings face higher labor and supply costs, making it harder to sustain leases at rents consistent with historical center economics. This has real implications for real estate owners who once counted on grocers to reduce vacancy, stabilize income streams and pull customers into their centers.

If this trend continues, property owners might rethink of how grocery fits into broader retail strategies. The category will not disappear, but its role as the retail anchor is eroding. Many owners are exploring hybrid uses like medical clinics, entertainment, logistics outposts or flexible space in grocery-anchored spaces. What was once a dependable draw of foot traffic, and a lifeline during the pandemic, is now slowly becoming a less valuable piece of a shopping center's tenant mix.

Blackstone’s Blackstone BREIT has recorded net inflows for the first time since 2022. That marks an important turning point for one of the largest private real estate vehicles in the world. For the past two years, the focus was not on how much new money was coming in, but on how much investors were trying to pull out. The shift suggests that concerns about liquidity are starting to ease.

In late 2022 and into 2023, BREIT faced heavy redemption requests as interest rates climbed and commercial property values came under pressure. Because BREIT is a nontraded REIT that holds long term assets, it limits how much money investors can withdraw in a given period. When those limits were triggered, it raised broader concerns about private REITs. Critics questioned whether investors fully understood the liquidity constraints. The episode became a case study in the mismatch between daily or monthly redemption expectations and assets that can take months to sell.

The return of net inflows does not erase those structural issues, but it changes the tone. Investors appear more comfortable with lockups and gating provisions than they were during the height of the rate shock. Property pricing has adjusted, transaction markets are slowly reopening, and income yields look more attractive relative to other assets. This is also a sign that capital is moving from defensive positioning back toward measured risk taking. Large private REITs are not being treated as redemption traps anymore. Instead, they are again being viewed as long-term income vehicles. That shift in perception could help stabilize fundraising across private real estate, especially for managers that can demonstrate liquidity discipline and portfolio resilience.

Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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