Real estate remains a top-performing asset and in robust demand among institutional investors and high-net-worth investors. This best-in-class asset comprises nearly $300 trillion in global value and continues to climb as demographics fuel international demand. From REITs to capital flows, from private equity strategies and value creation to booming demand for luxury properties, the DailyAlts Real Estate channel covers the top news and insights in the space
According to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, home prices surged 7% annually in September, up from a 5.8% annual gain in August. For perspective, this gain is the largest seen since September 2014. Moreover, home prices are now ruling 23% higher than their previous peak in 2006.
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“We desperately need income, but we are in a yieldless world,” writes analyst Jussi Askola in “The New Gold Rush.” Zero or negative interest rates are going to push investors into real assets.
REAL ESTATE MANAGEMENT GOES DIGITAL. Samsung and Microsoft are teaming up to transform the property management industry through smart appliances and digital cloud technologies. The goal of this partnership is to improve operations for buildings and maintenance and residents. Samsung’s SmartThings platform will assist in building operations, asset management, and energy efficiency. Samsung’s smart home…
The pandemic sparked whole new trends including a massive jump in online ordering and digital payments, the wholesale conversion to “work-from-home,” and the decimation of business prospects for movie theaters and restaurants. But homebuilders may be in clover.
A report by Globe St. com quoted a survey result by RCLCO Real Estate Advisors. The survey said that real estate industry leaders thought the worst of COVID-driven real estate market declines sustained during the first six months this year may be behind us.
Kayne Anderson Capital Advisors is seeking to secure its sixth real estate fund by raising $2 billion. The goal of this fund is to focus on investments in student housing, and has received support from the Teachers’ Retirement System of Louisiana. This includes a $50 million investment in the fund. Strategy As a result of…
Angelo Gordon, a global alternative investment firm, raised more than $1.5 billion for a real estate fund. After surpassing the $1.2 billion target, the real estate fund will focus on undervalued assets to add to its portfolio. Angelo Gordon currently manages $35 billion reaching across credit and real estate markets. Since 2009, Angelo Gordon has…
Real estate investors at Blackstone Group are getting into show business. As one of the world’s leading investment management firms, Blackstone is looking to expand its portfolio in the real estate sector. Specifically, the company is keeping a close eye on production sites and warehouses used by companies like Netflix and Disney for production. One of…
Granite Real Estate Investment Trust (GRP-UN) announced it will acquire eight income-producing properties in the United States. The deal comprises approximately 4.0 million square feet at a combined purchase price of approximately $246.1 million.
The Acquisitions represent an in-going weighted average yield of approximately 5.5% and are fully leased with a weighted average lease term of 5.1 years to a diverse range of strong tenants.
The impact of COVID-19 has been drastic at many real estate investment trusts. Rents are not being paid in offices, malls, and other commercial real estate properties across the country. Many REITs have reduced or eliminated their dividends as cash flow began disappearing when the economy began to shut down to prevent the spread of the coronavirus.
Blackstone Mortgage Trust (NASDAQ: BXMT) announced the pricing of an underwritten public offering of 10,000,000 shares of its class A common stock.
The underwriters have been granted a 30-day option by the Company to purchase up to an additional 1,500,000 shares. The offering is expected to close on June 11, 2020, and is subject to customary closing conditions. The total estimated gross proceeds of the offering are approximately $282.0 million or roughly $324.3 million if the underwriters exercise their option to purchase additional shares in full.
Trepp, a leading data provider and analytics firm serving the commercial real estate industry, issued a report on the state of the commercial real estate mortgage security (CMBS) markets this week.
Net leased real estate continued to attract investor attention in the first quarter of 2020. According to the latest report from commercial real estate services and investment company CBRE Group (CBRE), Net-lease investment volume increased by 34.6% to $78.9 billion from the first quarter of 2019 to the first quarter of 2020. That is the highest increase on record, according to CBRE. While volumes may decline in the second quarter due to the economic shut down caused by the COVID-19 pandemic, investors are still clearly favoring this asset class.
Vacasa, the property management service for vacation rentals, said Tuesday it had raised $108 million in investment led by existing investor Silver Lake, with Riverwood Capital and Level Equity also taking part. Silver Lake first invested in the vacation rental firm back in October.
Green Street Advisors has released a new report titled U.S. Commercial Real Estate Cross-Sector Overview Amid Covid-19. The real estate advisory and research firm takes a look at which segments of the commercial real estate and Real Estate Investment markets have experienced the most damage from the economic shutdown caused by halt the coronavirus spread.
Financial technology specialist Black Knight Inc. (NYSE: BKI) reported robust earnings during the first quarter. Earnings per share of $ 0.34 beat estimates by $ 0.08. Revenue of $ 290.8 million, which was up 2.7% year-on-year, beat estimates by $ 4.21 million. However, the fintech factored in the impact of COVID-19 and lowered its annual guidance.
The COVID-19 pandemic could mean the end of the line for many malls around the United States. Green Street Advisors, one of the best real estate and REIT research and investment firms in the country, says that more than half of all the department store anchored malls could be closed by the end of 2021. More than 60% of the anchor tenant space in these malls will likely empty by then as well.
This is the perfect storm for commercial real estate markets in the United States.
As 2020 started, the consensus opinion was that commercial real estate might see a slowdown in growth rates. However, thanks to an economy that was growing slowly but growing and low-interest rates, CRE would still be an attractive investment opportunity.
San Francisco based startup Noah allows homeowners to cash their home equity in these difficult times. The startup just received $150 million in the form of platform capital which it will use to invest in homes as a portion of their equity.
Commercial real estate markets have been severely impacted by the economic shutdown caused by the coronavirus. Barbara Corcoran, Shark Tank judge and founder of the Corcoran Group, a New York-based residential brokerage, told Yahoo Finance today that some of these changes may be permanent.
Blackstone’s non-traded real estate fund (BREIT) faces the most challenging environment since its 2017 inception.
BREIT has $34 billion in total assets. The group has been a big part of the firm’s real estate fundraising efforts in the past few years. Concerns exist that non-traded REITs like Blackstone’s offering are currently over-inflating their asset value. Publicly-traded REITs have seen their asset values fall by 20% or more in the past month. The REIT is priced once a month with the help of outside sources.
The continued spread of the COVID-19 outbreak is creating significant hurdles for many sectors of the commercial real estate development industry.
In New York City, the epicenter of the current crisis, development has slowed to a crawl. The Real Estate Board of New York’s Q1 2020 Quarterly Real Estate Broker Confidence Index shows very low sentiment.
“The survey found that, overall, for the first quarter of 2020, commercial broker confidence was 3.23, representing a 56% decrease since REBNY surveyed brokers in the fourth quarter of 2019, a decline directly attributable to the impact of the pandemic,” writes Erika Morphy of GlobeSt.com.
Leading real estate and REIT research firm Green Street Advisors has recently commented on the impact of the coronavirus on commercial real estate markets.
They note that that as recently as five weeks ago, no one was all that concerned with what the virus might do to real estate investment trusts balance sheet. That has changed quickly as the economic shut down to prevent the spread of the virus has altered both public and private real estate markets in a material fashion.
Aby Rosen, the co-founder and principal of RFR Realty, is dropping out of two previously announced deals in Manhattan. RFR is backing out on a deal to buy 900 Third Avenue in Midtown from Paramount Group (PGRE) for $400 million. It is also walked away from a plan to buy property at 1600 Broadway in Times Square that listed at roughly $200 million. There are reports that Mr. Rosen is willing to consider closing the deal for 900 Third Avenue when the pandemic has passed.
Tom Barrack, the head of Colony Capital (NYSE: CLNY), has hired several lobbyists to help assist the commercial mortgage industry. Barrack has been warning for weeks about the challenges the industry faces due to late or unpaid rents tied to the lack of economic activity.