Piedmont Office Realty Trust has sold a Houston office for $48.75 million to Griffin Capital. Griffin acquired the 149,683-square-foot building, which is 100% leased, on behalf of Griffin Capital Essential Asset REIT.
The fundamentals in the commercial real estate space have never been better, and that is doubly true in the retail space, says Milton Cooper, co-founder and co-chairman of Kimco Realty Trust. "There hasn’t been new development for a long time and there isn’t that much space." Retailers, however, need to expand to grow their business.
Certain types of private equity funds are moving forward with opportunistic investments in commercial real estate again. One reason for their resurgence is that conservative investors, such as pension funds, are interested in these investments again, many of which promise to deliver returns upwards of 20%.
Health Care REIT is buying a 75% stake in a senior housing portfolio based in Canada. It is paying about $1 billion in cash and assumed debt for the 47-asset portfolio. Revera is the seller and will continue to operate the properties, which are based in Toronto, Ottawa, Vancouver, Calgary, Saskatoon and Winnipeg.