Commercial mortgage-backed securities holdings rose by 0.8%, or $3.6 billion, in the third quarter over the second quarter, reversing a 10-year downward trend, according to the Mortgage Bankers Association. Commercial and multifamily mortgage debt reached $3.11 trillion in the third quarter, MBA said.
Data center and infrastructure REITs are benefiting from two types of tech trends -- the proliferation of handheld devices and more advanced developments such as big data and driverless cars, says Burl East, manager of the Altegris/AACA Opportunistic Real Estate Fund. "We like investing in business that have secular demand drivers," he says.
A recent injunction by the courts to prevent the closure of Teavana stores in retail shopping centers has more tenants seeking lease clauses that allow them to terminate early. Uncertainty over occupancy and leasing success has led to several disputes between landlords, tenants and lenders.
E-commerce activity accounts for about a third of absorption in the DCT Industrial Trust portfolio, according to president and CEO Philip Hawkins. He also noted that the line in the supply chain between e-commerce and traditional retail is blurring, as "[a]lmost every company is working on e-commerce fulfillment."
Despite the growing competition from banks, Fannie Mae and Freddie Mac remain the major lenders in the multifamily market, holding 37% of all outstanding mortgages in the sector as of Sept. 30, according to Federal Reserve data. Fannie Mae and Freddie Mac "remain the most competitive on the overall package," says CBRE's Brian Eisendrath.
Arneil Pueblo has sold the 54,430-square-foot Pueblo Point Shopping Center in Phoenix to Paradise Valley Ventures for $11 million. The retail center is in an infill location with high barriers to entrance.
Crossroads Market, a 126,895-square-foot retail center in Naples, Fla., has been acquired by Preferred Apartments in a $19 million deal. The property is 98% leased and features a Publix grocery store.
SUPERVALU and Instacart have teamed up to expand grocery delivery services to all of the retailer's stores, the company said Monday. SUPERVALU has also expanded its click-and-collect service to more stores, with plans to grow it further in the future.
European REIT Unibail-Rodamco has agreed to acquire Westfield Corp. for $15.8 billion in a cash and stock transaction that illustrates the ongoing tension between online and physical retail. The Australian company's properties are in London and New York -- including the retail space in the World Trade Center -- and close to 70% of its annual revenue is derived from its US holdings.