Effective rents in Beantown fell during the pandemic, but have fully recovered and then some in the past two years.

Ortega’s holding firm Pontegadea has reached an accord to acquire the 64-floor luxury apartment complex for about $500 million. The building was sold by Carmel Partners.

Some buyers are trying to renegotiate prices, but a net result of recent moves could be a tightening in the spread between multifamily cap rates and yields on 10-year Treasuries.

Rents are soaring across the country as would-be homebuyers get priced out by the fastest-rising mortgage rates in decades and slide back into the overcrowded rental market.

With a shrinking delta in cap rates between assets of different vintage, many investors opt to go with lower risk newer properties and fewer capital expenditures.

After surging 11.4 percent over the past 12 months, the median national rent for a one-bedroom apartment rose just 0.5 percent in June, according to data from rental marketplace Zumper.

The Grand LA will include a 28-floor Conrad hotel and a 45-story apartment tower that will open this summer. The retail section will debut in 2023.

Multifamily and industrial continue to be in demand among commercial real estate investors, in spite of the new challenges. But the investment environment is changing and with it the calculus for which assets to invest in.