Piedmont Office Realty Trust is offering for sale Two Independence Square, a 605,897-square-foot office building in the Southwest market of Washington, D.C. Cushman & Wakefield has the assignment. The property is fully occupied by the National Aeronautics and Space Administration through 2028.
Forest City Realty Trust Inc. has launched a strategic review that might result in it selling most of its retail exposure, which is comprised of 14 regional malls around the country and 19 specialty retail centers in New York. The move is part of an ongoing portfolio refocusing effort by the Cleveland REIT, which would redeploy proceeds into office and apartment properties.
Some 321,200 apartment units are expected to be added to the country's inventory this year, according to RENTCafe, an apartment search site run by Yardi Systems. That would be the biggest annual increase in deliveries in 10 years and compares with the 214,108 units that were added last year. The increase in deliveries is contributing to the overall slowdown in rent growth.
The REIT's decision to adopt a liquidation plan culminates a process that started just more than a year ago as it sought to shore up its lagging share price. In May, it had agreed to merge with JBG Cos., but that deal was terminated earlier this month.
The structured tax-deferred exchange market continues to ramp up, with $706 million of equity having been raised during the first half, putting the year on track to see $1.4 billion. That would compare with the roughly $1.1 billion of equity that was raised last year, according to Mountain Dell Consulting.
Realty Mogul has entered the investment management business, becoming the latest crowdfunding platform to do so. It's launched a non-traded REIT that would invest in commercial real estate debt assets, including subordinate and mezzanine loans, as well as in preferred equity, CMBS and REITs.
John Hancock Life Insurance Co. has provided a $115 million loan against One Biscayne, a 691,783-square-foot office property in downtown Miami. The 10-year loan allowed for the refinancing of an $83 million loan that was securitized through DBUBS Mortgage Trust, 2011-LC3.
Money360 Inc., which started originating commercial real estate loans less than a year ago, has breached the $100 million level. It's now aiming to originate $250 million to $300 million over the next 12 months. To get to that level, the company has been beefing up its staff, adding originators and back-office professionals.
The CMBS financing against Riverchase Galleria in suburban Birmingham, Ala., once again has been transferred to special servicing. But this time it's because the collateral property's owner, a venture led by General Growth Properties Inc., is planning to sell the 1.5 million-square-foot property.
TIAA has provided $400 million of mortgage financing against a portfolio of six office properties with about 1 million square feet in the downtown and East End areas of Washington, D.C. The loan was used by the owner of the portfolio, Tishman Speyer Properties, to prepay $290 million of CMBS that was slated to mature in January.
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