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Blackstone Group has been on an aggressive REIT buying spree in the last few years.
The asset manager is buying so aggressively because REIT valuations are significantly below the private market valuations of their real estate.
We take a look at two attractive REITs trading significantly below their net asset values.
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Asset management giant Blackstone (BX) boasts a portfolio of assets under management reaching nearly $1 trillion, made up largely of real estate. The asset manager partners with big money players like pension funds and insurance companies to provide strong returns and steady income.
Though Blackstone sometimes acquires individual real estate properties, such as The Bellagio in Las Vegas, it more often seeks opportunities to scoop up whole portfolios that will move the needle. This year, the company has set its sights, particularly on acquisitions of real estate investment trusts (“REITs”). Click to read more at www.seekingalpha.com.
Uncertainty be damned. The multifamily market in a number of Texas cities continues to be strong – even “white hot,” depending on whom you ask.
“Dallas multifamily vacancies sit at roughly 5 percent with rents roughly 15 percent over pre-pandemic levels,” rental housing experts at Greystar told REDnews. “Dallas has also had considerable amounts of pipeline delivery, which have been absorbed at record levels during the past few quarters at over 25+ units per month despite rising rents.”
Austin, too, boasts one of the strongest multifamily markets in the state.
“It’s important to understand the supply/demand fundamentals,” said Marcy Phillips, vice president of real estate development for Ryan Companies. “Sometimes, there can be booms in other primary Texas markets. Austin has weathered this well and it appears there is a long runway as the MSA continues to grow.”
There’s no shortage of incentive to build here, according to Venkat Avasarala, founder of Stryker Properties. Click to read more at www.rednews.com.
Randy Blankstein, president of the Boulder Group in Wilmette, Illinois, in an interview with Midwest Real Estate News earlier this year referred to higher interest rates as a possible wrench in the net lease market, something that could slow this commercial sector’s long-building momentum.
And it’s true that interest rates were a big topic of conversation during the 8th annual National Net Lease Summit held by REjournals and Midwest Real Estate News July 28 at the University Club of Chicago. But the speakers during this event — and they included the biggest and most successful players in this space — all agreed, too, that the net lease market remains a resilient one, one capable of fighting through the country’s current economic uncertainties.
As Blankstein said during his early summer interview with Midwest Real Estate News, demand remains high for net lease assets. That demand is strong enough that it is so far overcoming the challenges of higher interest rates. Speakers during the summit agreed: Net lease assets are so attractive, demand is not yet waning.
Optimism, then, ruled the day during the summit. Speakers focused on the strength of such net lease products as drug stores, fast-casual restaurants with drive-thru lanes, dollar stores and auto-supply stores. They also pointed out the seemingly endless demand for industrial real estate.
It was a day filled with positive messages. And the biggest? Yes, rising interest rates are a challenge and could scuttle some net lease deals. But this sector remains resilient. And investors still love this asset class.
Despite the economic challenges facing the country, members of the National Net Lease State of the Market panel had plenty of good news to share with attendees. Participating in this panel were Joel Tomlinson, Ares Management; Randy Blankstein, moderator, The Boulder Group; Andres Dallal, Strategic Lease Partners; Gordon Whiting, Angelo Gordon; Richard Hurd, Hurd Real Estate; and Zachary Pasanen, W.P. Carey.
The optimism continued with the Net Lease Capital Markets Overview panel. Speaking on this panel were Joshua Zhang, Four Corners Property Trust; Ralph Cram, moderator, Envoy Net Lease Partners; Caitlin McLaughlin, Prudential Private Capital; Sean Keane, First Savings Bank; and Karly Iacono, CBRE.
Industrial and healthcare real estate remain in high demand from investors. Speaking about the seemingly unquenchable demand for these product types were Industrial and Healthcare Net Lease panel participants Chad Firsel, moderator, Quantum Real Estate Advisors; Tivon Moffitt, Institutional Property Advisors; Robert Vanecko, Brennan Investment Group; and Gino Lollio, Cushman & Wakefield.
Members of the Net Lease Sale-Leaseback panel were Guy Ponticiello, CBRE; Andrew Sandquist, Newmark; Elizabeth Randall, moderator, Randall Commercial Group; David Piasecki, BV Net Lease Capital; Daniel Nyhan, Mesirow Financial; and James Hanson, Avison Young.
Brandon Svec, national director of retail analytics for CoStar, served as the keynote speaker of the summit. He shared the strong activity numbers in the net lease sector with attendees.
Sharing the latest news on the future of the 1031 Exchange program, were Daniel Wagner, Inland Real Estate Group; Tracy Treger, Syndicated Equities; and Matthew Douglas, Accruit, all of whom participated in the summit’s 1031 Tax Exchange Update panel.
Has office work changed forever? Are companies taking a new approach when searching for new office space? Those are questions that JLL asked in its recently released The Future of Work Survey 2022. And according to the opinions of more than 1,000 strategic decision-makers in businesses across the globe, it looks like COVID-19 and the resulting work-from-home movement have brought big, and more than likely permanent, changes to the office world.
The office world of 2019? That’s likely not coming back anytime soon, according to JLL’s report.
In its report, JLL says that hybrid working is here to stay and that companies that want to attract the best workers should focus on investing in quality office space, something that should be a priority over simply expanding their footprints. The report found, too, that companies are ready to create office spaces that focus more on collaboration and less on busy work.
The numbers from JLL’s survey of business decision-makers paint a clear picture of an office environment that has changed rapidly during the last two years.
According to JLL, 53% of organizations will make remote working permanently available to all employees by 2025, while 77% agree or strongly agree that offering remote and hybrid work is now a key to attracting and retaining talent. The survey found, too, that 69% of organizations have already introduced or will introduce this year technology to boost in-office collaboration.
Survey respondents have also taken a new view of the office space, with 45% saying that the primary purpose of this space is to facilitate collaborative working. This means that companies are recognizing that there is some work that employees can do just as well from their homes as they can from a cubicle or conference room. When it comes to working together on projects and ideas, though? Respondents said that working in office is best to promote fresh ideas and brainstorming.
In good news for CRE professionals, the majority of survey respondents said that they expect to maintain at least some office space. JLL’s survey found that 72% of respondents agreed that in the long term, the office will remain central to their organization. The type of office space companies seek, though, will probably change. A total of 77% of respondents to JLL’s survey said that investing in quality office space is more important than expanding their total footprint.
And 73% of respondents said that they have planned or are planning to make all office spaces open and collaborative with no dedicated desk spaces.
San Antonio, TX (August 18, 2022) — Newmark announces the sale of Viva Max, a 240-
unit value-add multifamily asset located in northwest San Antonio, Texas. The property traded from Pradeep Mistry to River Rock Capital, a private multifamily investment firm focused on properties in New Jersey and Texas. Senior Managing Director Jim Young and Director Chase Easley represented the seller. This sale represents the Newmark team’s fourth transaction selling to River Rock Capital over the past year, with the buyer’s other recent acquisitions including Broadstone Oak Hills, Hawthorne House and Alamo Park.
“Viva Max presented investors with an outstanding value-add opportunity that was attractive to both private and institutional buyers,” said Young. “The transaction was completed via a Freddie Mac loan assumption with loan terms superior to current market offerings. This asset will be a great addition to the buyer’s growing San Antonio portfolio.”
Viva Max is a garden-style apartment community located at 3631 Callaghan Road in northwest San Antonio. The property features a mix of one- and two-bedroom units with an average unit size of 733 square feet. Unit interiors offer walk-in closets, framed bathroom mirrors, ceiling fans, window coverings and faux hardwood floors and black appliances in select units. Community amenities include gated entry, pool with sundeck, private clubhouse, picnic area, playground, laundry facility and package service. The property was 98.4% occupied at the time of sale.
Located in northwest San Antonio, Viva Max benefits from a desirable location proximate to the city’s largest employment hubs. The property is surrounded by several major corporate campuses and data centers including Westover Hills, the South Texas Medical Center, UT Health San Antonio, University Health System, Methodist Healthcare Systems and Amazon. Viva Max is also proximate to an abundance of mixed-use, retail and entertainment destinations including the future Vicinia Transit-Oriented Development, Ingram Mall, Westover Marketplace, Alamo Ranch, Culebra Market and multiple theme parks, golf courses and parks.
Following a record 2021, investor demand for multifamily remained robust during the first quarter of 2022 with $63.0 billion in U.S. sales volume, according to Real Capital Analytics data analyzed by Newmark Research. In addition to this volume signifying the largest first quarter on record, year-over-year volume accelerated 65.4%. Trailing twelve-month volume increased to $374.3 billion. Remarkably, major markets in Florida and Texas accounted for 27.3% of total volume over the past 12 months
Happy Pediatric Dental leased a 2,258 square footage space at Cross Timbers Village at 4251 Cross Timbers Rd in Flower Mound. David Levinson with The Retail Connection and Geoff L. Waddell with Xite Realty represented the landlord, Knollwood Cross Timbers LLC.
