Cornerstone Real Estate Advisers has raised $160.8 million of a projected $750 million for its latest value-add investment vehicle, Cornerstone Real Estate Fund X LP. With leverage, the fund would have more than $2 billion of investment capacity.
Oaktree Capital Group, which is in the midst of raising $3.5 billion of equity commitments for a real estate opportunity fund, is looking to get into the value-add business, which it considers to be complementary to its core opportunistic investment business. The decision is driven in large part by investors looking to put more capital to work with it.
Goldman Sachs has provided $815 million of financing against a portfolio of 62 apartment properties in San Francisco owned by a venture of Veritas Investments Inc. and Baupost Group. The financing, arranged by Eastdil Secured, allowed for the refinancing of CMBS debt that was securitized in 2013.
Prudential Insurance Co. of America has provided $245 million of mortgage financing against 1700 Broadway, a 581,354-square-foot office building in midtown Manhattan. The insurer previously had provided $65 million of financing against a leasehold interest in the property. That's been refinanced, while an additional $180 million of debt was placed against it.
Forestar Group, which owns land for residential developments, has decided to call it quits on the apartment sector in order to focus on its oil and gas and single-family home development businesses. It has hired CBRE to sell a 257-unit property in downtown Austin, Texas. It owns a total of nine properties, a number of which are still in development.
Cole Capital has launched its latest non-traded REIT offering, Cole Office & Industrial REIT III Inc. The unit of VEREIT Inc. is aiming to raise $2.5 billion through the entity, its first such offering in years. Its latest offering will adopt a net-asset value pricing model roughly two years after its stock offering launches.
Blackstone Real Estate Debt Strategies has provided $285 million of mortgage financing against Rivertower, a 311-unit apartment property in Manhattan's Sutton Place neighborhood. The 38-story property is owned by a venture of Slate Property Group and GreenOak Real Estate, which recently bought it for $390 million, or $1.25 million/unit, resulting in a low-3 percent capitalization rate.
Boston Properties Inc. plans to use a portion of the proceeds from the sale of $1 billion of unsecured notes to retire $211.25 million of financing that encumbers the Fountain Square office and retail property in the Washington, D.C., suburb of Reston, Va. The REIT plans to retire the debt in April, after it becomes open to prepayment.
Beacon Capital Partners is offering for sale Pentagon Center, a 911,817-square-foot office property in the Washington, D.C., suburb of Arlington, Va. The Boston investment manager has hired Cushman & Wakefield to market the 46-year-old property, which is one of 19 properties that remain in the collateral pool for a $1.1 billion CMBS loan.
Challenging Retail Environment Weights on REITs Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
US REITs Feeling Effects from Turmoil in Greece and China International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...
What Does Increased Construction Mean for Apartment REITs? REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds