Banks are facing increased competitive pressure for business and commercial loans from hedge funds, insurance companies and private equity firms. These nonbanks are less regulated than banks and in many cases are offering longer repayment terms with relaxed requirements.
LaSalle Hotel Properties has agreed to be acquired by Blackstone Real Estate Partners VIII for $4.8 billion in cash, or $33.50 per share. This transaction, which is expected to close in the third quarter of 2018, follows multiple attempts by Pebblebrook Hotel Trust to acquire LaSalle, as well as Blackstone's exit from its stake in Hilton Worldwide Holdings last week.
Funds from operations totaled $15.3 billion in the first quarter, a 6% increase over one year earlier, according to the Nareit T-Tracker®. Total dividends paid were $14.3 billion, a 7.4% gain over the first quarter of last year.
Burland East, portfolio manager of the Altegris/AACA Opportunistic Real Estate Fund, likes the investment opportunities that data centers and wireless towers offer. In general, he is enthusiastic about commercial real estate, saying it "has offered fantastic returns across a variety of cycles, it's a reliable wealth generator."
Office-sharing giant WeWork is getting more competition, as illustrated by Convene's new 93,000-square-foot lease in One Liberty Plaza in Lower Manhattan. According to Mary Ann Tighe of CBRE's New York tri-state region, New York has 65 different flexible-space providers.
An analysis by Crunchbase News turned up a flurry of fundraising for shared and temporary housing startups over the past year or so. Most are in New York City and the San Francisco area, but they are also showing up places like Seattle, Pittsburgh and Los Angeles.
Customers want to be able to use physical stores along with mobile, voice and connected devices to make purchases, writes Jon Bird of VML. Retailers need to focus on convenience in their efforts, such as Walmart buying same-day delivery service Parcel and Target buying same-day delivery company Shipt.
Urban Edge Properties has sold the 47-acre, fully leased MacArthur Commons retail center in Whitehall, Pa., to an affiliate of Abrams Realty & Development. The grocery store-anchored property changed hands for $55.3 million.
Walmart will launch its grocery delivery service across the Chicago market on Tuesday, charging $9.95 for same-day delivery. The addition of Chicago comes as the company strives to cover 40% of American households with grocery delivery services by year's end.