Northstar Center in Minneapolis has been sold to a New York investment firm for $62.7 million. Additionally, United Properties has sold part of its floor space at the Gaviidae Common for $24.5 million; the sold space includes the attached Walgreens building.
Developer Randy Salvatore has proposed a mixed-use space for downtown north in Hartford, Conn., that would include 60,000 square feet of retail with 800 housing units. City leaders are weighing the $200 million project.
High-end retailers saw revenue grow 81% over the previous five years, while discount retailers saw growth of 37%, a stark contrast to the balanced, middle-of-the-road retailers, which grew just 2%, a Deloitte survey has found. A retail apocalypse view is evident only in that middle level, as both premium and priced-based retailers have been opening stores.
Sources say that Industrial Property Trust is exploring options that could include a sale or an equity recapitalization. The REIT, which is valued at $3.3 billion, has retained an investment bank to field offers from potential bidders, according to the sources.
The spread between the cap rates that major ratings agencies use for commercial mortgage-backed securities and those underwritten by the market is widening due in part to the growing number of office loans in the pools. There is some concern about this, as "historically, suburban office buildings have had higher default and loss rates relative to CBD office," says Natalka Chevance, a director in S&P's CMBS group.
Jeffrey Busch, chairman, president and CEO of Global Medical REIT, says the company has quickly grown since its initial public offering in 2016, having acquired more than $500 million in assets. This year the REIT plans to focus on covering the dividend and securing the stock and its liquidity.
REITs have reduced their leverage by raising significant amounts of equity capital to finance their property holdings, according to Nareit economist Calvin Schnure. As a result, REITs are well positioned to handle rising interest rates.
Alexandria Real Estate Equities has a near 100% occupancy across its portfolio. CEO Joel Marcus credits the strong economy plus an active life sciences sector, and says the industry is in the early innings of a biology revolution.
Manhattan apartment landlords cut 2.4% off their asking prices and offered more concessions in February as they sought to fill their buildings, according to a report by Miller Samuel and Douglas Elliman Real Estate. Landlords are "being more aggressive in terms of time," says Jonathan Miller, president of Miller Samuel, as "they just want to get them in."