It could take years for retail owners to fill the spaces left empty by departing Sears and J.C. Penney stores, says Green Street Advisors' Dirk Aulabaugh. Hotels and apartments are two asset types that landlords such as Simon and PREIT are considering.
Prologis' 2015 sale of a 21-building warehouse portfolio near Facebook's headquarters in Menlo Park, Calf., to the social media giant netted the REIT about $300 million. Facebook is tearing down the buildings to develop more office space.
Sales of existing homes hit a seasonally adjusted annual rate of 5.46 million units last month, a 2.5% decrease, surpassing the 0.2% drop economists had predicted. Sales dropped 1.4% year over year.
This week's ReCon event in Las Vegas emphasizes department stores less and restaurants, hotels and apartments more as property owners look for ways to diversify offerings. Companies are focused on filling vacated department store spaces with nonretail options and mixed-use spaces.
Westwood Financial has acquired Boardwalk at Andersen Springs in Chandler, Ariz., and Decatur Crossing in Decatur, Ga., in a transaction totaling $66.2 million. Both properties are anchored by Sprouts grocery stores.
Crestwood Plaza is now a pile of dirt after UrbanStreet demolished the Crestwood, Mo., retail center, with plans to redevelop the site. However, the company has yet to offer insight into its plans; one city official expects the necessary permit for flattening the piles of dirt left behind to be issued by July.
REIT magazine spoke with five analysts to get their insight on how interest rates, tax reform, valuations and other trends are shaping sentiment, and what investors should focus on in times of uncertainty. Read the interview.
Mergers and acquisitions in commercial real estate are being fueled by private equity's dry powder for investment waiting in the wings, REITs' lower net asset values, deregulation and tax law changes, among other factors. "It's likely that 2018 will see an uptick in investment activity as these big deals tend to add up very quickly," says Rene Circ, director of CoStar Portfolio Strategy.
Although commercial mortgage-backed securities volume is up 30% year over year as of mid-May, the market has lost its grip on conduit deals for properties in secondary and tertiary markets, Paul Fiorilla says. The market is more competitive on single-asset, single-borrower deals, which make up almost half of deal volume this year, he writes.
Kushner Cos. and special servicer LNR Partners are negotiating over the $1.4 billion debt on 666 Fifth Ave. in Manhattan, which comes due in February. Kushner's position is that just $1.1 billion of that debt needs to be repaid in order for it to finalize a deal in which Brookfield Asset Management comes in as a 49.5% partner, allowing Vornado Realty Trust to exit.