San Diego, CA – July 25, 2025 – As we wrap up the first half of 2025, we’re excited to share highlights from the second quarter and provide a look into what’s ahead for Equity Street Capital. Despite a complex economic landscape, our focus remains clear: executing on strategy, protecting investor capital, and identifying opportunities for long-term value creation.
In Q2, our team made significant strides across our portfolio, underscoring our proactive asset management and long-term vision. Key accomplishments this quarter included:
Refinancing two properties to optimize debt structures
Extending a loan on one of our office assets
Successfully closing on the sale of two assets and two outparcels
We are now one year into a focused effort to restructure debt and capital across multiple assets, and we anticipate sharing meaningful updates with our partners in the next 90 days.
Operationally, we continue to execute on property-level business plans, drive leasing activity, and conserve capital where appropriate. Our teams are deeply engaged in maximizing performance across all sectors.
Retail
Leasing momentum remained strong, with over 150,000 square feet of new and renewal leases executed during the quarter. Notable tenant signings included H&R Block, Skechers, UPS, Subway, and Lululemon.
Florida Office
Despite broader office sector headwinds, we’re seeing strong performance in select Florida markets. Two of our properties signed leases at record rental rates, reflecting the ongoing flight to quality.
Multifamily
Our multifamily assets ended the quarter at 93% occupancy on a weighted basis, holding steady despite increased supply pressures in several of our core markets.
Texas Development
We’re on track to refinance a unique development opportunity in Anna, Texas—one of the five fastest-growing towns in the U.S. The project will be 70% pre-leased at the time of refinance.
We continue to closely monitor macroeconomic developments—particularly U.S. Federal Reserve policy—as they impact commercial real estate markets and investment strategies.
The Fed has maintained rates in the 4.25% to 4.50% range since December 2024, a level higher than the post-2008 norm but aligned with historical averages. While there’s growing discussion among Fed officials about potential cuts, Chair Jerome Powell remains cautious.
Markets are currently anticipating two rate cuts (50 basis points) by year-end. However, with inflation and federal deficit concerns in the spotlight, clarity may not come until after the Fed’s next meeting on July 29–30, following the release of updated inflation data.
While broader financial markets await clearer signals, our team remains active, disciplined, and focused. We continue to source new opportunities while preserving a conservative approach in this evolving environment.
At Equity Street Capital, our mission remains unchanged: to protect and grow investor capital through strategic acquisitions, expert asset management, and a commitment to long-term value.
For our investor partners, to see more in-depth updates on your specific investments, please log in to your Equity Street Capital Investor Portal to access detailed Quarterly Reports.
About Equity Street Capital: Equity Street Capital (ESC) is a San Diego-based commercial investment firm renowned for its focus on achieving attractive risk-adjusted returns while maximizing long-term capital appreciation. Founded by real estate investors and entrepreneurs Than Merrill and Paul Esajian, Equity Street Capital is dedicated to providing transformative real estate investment opportunities to it’s investors.
