iStar has spun off some of its ground leases into another REIT called Safety, Income and Growth. It is expected to raise $250 million from an initial public offering and private placement.
Campgrounds have become an attractive alternative investment for REITs, according to Jim Westover, vice president of operations at Jellystone Park, who says a growing number have been investing in its operations. Equity LifeStyle Properties focuses on the related sector of mobile home and RV parks, and it's performing well.
The US vacancy rate for apartments rose to 4.4% in the second quarter, from 4.3% in the previous quarter, while asking rent rose 1.3% and effective rent increased by 1.1%, according to Reis. "Total inventory is expected to increase significantly in 2017, however, construction in the second quarter was lower than expected in a quarter that tends to see the highest activity," the Reis report said.
TIER REIT has acquired a 319,000-square-foot office building in Plano, Texas, for $123.3 million. It also sold its Louisville, Ky., office portfolio for $71.5 million.
Demand for apartments in the Dallas area is far outpacing the supply, with the metro area expected to have to almost double the pace of construction to meet estimated demand, according to the National Multifamily Housing Council and the National Apartment Association. Between 2000 and 2015, the Dallas area built 144,000 units.
Three must-have features for student housing today are technology capabilities; areas for group and individual study and related tasks; and health and wellness facilities, says American Campus Communities CEO Bill Bayless. "You're seeing an immersion of the academic experience coming together with the real estate to where it's really creating these living-learning communities," he says.
The increase in US home prices slowed somewhat in April, with the average price in 20 metropolitan areas rising 5.7% compared to a year ago, according to the S&P CoreLogic Case-Shiller composite index. Experts say prices have nowhere to go but up as long as inventory remains scarce.
So far, the Senate is short of the votes necessary to pass its healthcare legislation, which is worrisome to health care REITs. This bill is seen as being friendlier to the industry than the version passed in the House of Representatives.
Retail experts don't anticipate the demand for online shopping dissipating soon, especially with retailers closing shop. However, many are seeing now as a time to change business models to better address the changing needs of the millennial generation.
West Haven, Conn., residents are hoping the development of a 90,150-square-foot mixed-development building called The Atwood will bring revitalization to the city. The developer is hoping to also build two similar properties nearby; the developer's website calls them University Commons, and they would add up to 240,000 square feet of development, including 179 apartments and 50,000 square feet of retail.
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