Kimco Realty is acquiring Weingarten Realty Investors in a cash-and-stock transaction worth about $3.87 billion. The combined company will have a portfolio consisting of 559 open-air grocery-anchored retail centers with tenants including Kroger, Walmart, Whole Foods and certain discount retailers.
Hospitality Investors Trust is close to an agreement with Brookfield Asset Management, its largest investor, that would transfer control to Brookfield as part of a bankruptcy filing, according to sources. Hospitality Investors Trust does not have enough cash for its obligations, according to a 2020 annual report.
Investors are not shying away from bonds backed by offices even though it is still unclear when some employees will return to their workplaces. This year, there have been close to $4 billion of commercial mortgage backed securities tied to office towers in large city centers, according to a Bloomberg analysis.
With the distribution of COVID-19 vaccines continuing, some companies are scheduling a return to the office and planning for potential modifications to their space. This is a positive sign for office demand, although a decline in transactions has made price discovery more challenging, says Andrew Matheny of Transwestern.
Amazon's culture and work model still require face-to-face interactions among employees, according to Roger Wehner of Amazon Web Services, and that could be good news for the areas around the company's HQ2 in Nothern Virginia. There will be more flexibility going forward, "but there is no substitute for Amazonians being together," Wehner says.
The US has a housing shortfall of 3.8 million single-family homes, according to Freddie Mac, equivalent to a 52% increase in the housing deficit compared with 2018. "This is what you get when you underbuild for 10 years," says Sam Khater, chief economist at Freddie Mac.
New Residential Investment Corp. is acquiring Caliber Home Loans in a $1.7 billion cash deal. "With this acquisition, we have significantly strengthened our capabilities to perform across interest rate environments," says New Residential CEO Michael Nierenberg.
Alexandria Real Estate Equities and Mark Development envision building a lab campus on a 13-acre site in Newton, Mass. The city council already approved a previous plan for the site, and the companies pitched updated plans during a meeting this week.
Initial unemployment claims totaled 576,000 last week -- the lowest they have been since March 2020. That was down 193,000 from the previous week.
Retail sales for March rose 9.8%, far exceeding a Dow Jones estimate of a 6.1%. The sporting goods, clothing and food and beverage segments helped drive the increase in spending, and coronavirus relief checks contributed to the gains.
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