A Korean investment group has struck a deal to pay $321 million, or roughly $455/sf, for Patriots Park, a 705,905-square-foot office property in the Washington, D.C., suburb of Reston, Va. The price it's paying results in a 5.2 percent capitalization rate. It is buying the property from Boston Properties Inc.
A venture of Atlanta Property Group and Angelo, Gordon & Co. has struck a deal to pay roughly $108 million, or $170/sf, for the Palisades Office Park, a 636,701-square-foot property in the Atlanta suburb of Sandy Springs, Ga. The property is being purchased from Shorenstein Properties.
Delaware's Chancery Court has put the kibosh on an attempt by an investor group led by Ralph Dweck to sell Lincoln Square, a 405,978-square-foot office property in Washington, D.C., whose CMBS financing was moved to special servicing late last year. Dweck had struck a deal to sell the property for $300 million to Rockrose Development Corp., but in doing so breached an agreement it had with the property's previous owner.
The buzz is that Cousins Properties Inc. has struck a deal to pay roughly $351.3 million, or $230/sf, for Northpark Town Center, a 1.53 million-square-foot office property in Atlanta. The Atlanta REIT is buying the property from a venture led by AEW Capital Management, which had purchased it in 2007 for $315 million.
Weingarten Realty Investors, looking to wrap up a portfolio repositioning strategy that it began three years ago, is in the market to sell 22 retail centers that it values at $330 million. That would be on top of the $100 million of properties the REIT has already sold this year and the $230 million of pending deals.
Deutsche Bank and SL Green Realty Corp. have provided $150 million of financing against 245 Fifth Ave., a 303,139-square-foot office building in Manhattan's midtown south. The financing, which includes $20 million to cover the costs of upgrades and leasing commissions, was used to retire a $130 million CMBS loan that had been modified.
A total of $6.3 billion of CMBS loans got defeased, or replaced by government securities during the first half, according to Trepp LLC. Given that volume, the thinking is that the full year will see an increase of some $1 billion of defeasance activity over last year, to perhaps $13 billion.
Meridian Group, a Bethesda, Md., investment manager focused on the greater Washington, D.C., market, has registered to raise up to $250 million for its second real estate investment fund. Its first fund raised $160 million of equity commitments and has invested in office and apartment properties in the greater Washington area.
Ramco-Gershenson Properties Trust plans to make up to another $350 million of shopping center acquisitions through the remainder of this year. The Farmington Hills, Mich., REIT already has invested $150 million on two acquisitions this year, and has been targeting a full-year acquisition level of up to $500 million.
A total of nine investors participated in the CMBS conduit B-piece market during the first half of the year, with Rialto Capital Management making investments in more than a quarter of the first-half volume. Eightfold Real Estate Capital, which by this time last year had acquired bonds from seven deals totaling 37.5 percent of the market, so far has bought into only two deals totaling 8 percent of the market.
Non-traded REITs Contribute to Listed REIT Expansion Non-traded REITs, especially those focused on healthcare, lodging, and retail, have been very popular in recent years and have become a notable source of expansion for the listed REIT market. Collectively, they raised $8.8 billion during the first half of 2014 and sales are in line to reach $20 billion by year end...
Leasing for Fall Student Housing Moves Forward Long term growth in college enrollment means good news for REITs that invest in student housing. Although full time enrollment slipped in 2011 and 2012, the Department of Education’s National Center for Education Statistics reports that total enrollment in postsecondary degree-granting institutions is projected to grow 14%...
Timber and Lodging Lead REITs in June As of mid-year 2014, REITs are outperforming other investment sectors. Year-to-date, the FTSE NAREIT All Equity REIT total return was 16.25%, which compares favorably to the S&P 500 (7.14%), DJIA (1.51%), Russell 2000 ( 3.19%), and NASDAQ (5.54%). While year-to-date performance is very strong, the FTSE NAREIT All Equity REIT...