Architecture Billings Index Upticks in November

WORLD PROPERTY JOURNAL | December 19, 2019

According to the American Institute of Architects (AIA), demand for design services in November 2019 increased at a modest pace for the second month in a row. AIA's Architecture Billings Index (ABI) score of 51.9 for November reflects an increase in design services provided by U.S. architecture firms (any score above 50 indicates an increase in billings). During November, both the new project inquiries and design contracts scores were positive, posting scores of 60.9 and 52.9 respectively. "The uncertainty surrounding the overall health of the economy is leading developers to proceed with more caution on new projects," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD.  "We are at a point where there is a potential for an upside but also a potential for things to get worse."

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Ed Fritsch, President and CEO, stated, “We had another solid quarter, generating 18.5% year-overyear growth in net income per share and 6.5% year-over-year growth in FFO per share. We leased 907,000 square feet of second generation office space with robust GAAP rent growth of 15.4% and an average term of 5.6 years. Compared to the second quarter of 2015, same property cash NOI was up 4.5% and same property average occupancy was up 60 basis points.

Spotlight

Ed Fritsch, President and CEO, stated, “We had another solid quarter, generating 18.5% year-overyear growth in net income per share and 6.5% year-over-year growth in FFO per share. We leased 907,000 square feet of second generation office space with robust GAAP rent growth of 15.4% and an average term of 5.6 years. Compared to the second quarter of 2015, same property cash NOI was up 4.5% and same property average occupancy was up 60 basis points.

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REAL ESTATE TECHNOLOGY

KKR is growing its Texas real estate industrial portfolio with new acquisitions in Dallas and Houston.

businesswire | December 04, 2020

KKR, a main worldwide speculation firm, today declared the securing of two mechanical appropriation properties in Texas adding up to around 1.8 million square feet at a total buy cost of roughly $171 million. The recently obtained properties are situated in the significant business sectors of Dallas and Houston. Both are best in class satisfaction focuses with a normal vintage 2019. The properties were 100% rented at securing to two distinctive speculation grade occupants on a drawn out premise. The properties were obtained from Hines, the worldwide land firm, which built up the resources. The two properties are the most recent mechanical resources procured by KKR's center in addition to land system, developing its all out modern land portfolio to around 7.2 million square feet. Over its assets, KKR claims more than 20 million square feet of mechanical property in key areas across significant metropolitan regions in the U.S. “As more consumers migrate to shopping online and expect a seamless delivery experience, the demand for modern logistics real estate in major markets continues to grow,” said Roger Morales, KKR Partner and Head of Commercial Real Estate Acquisitions in the Americas. “We are excited to help meet that demand by increasing our footprint in the Dallas and Houston markets with the addition of these two high-quality, stable assets.” Since dispatching a devoted land stage in 2011, KKR has developed land AUM to roughly $14 billion over the U.S., Europe and Asia as of September 30, 2020. The worldwide land group comprises of more than 90 committed venture experts, traversing both the value and credit organizations.

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REAL ESTATE INVESTMENT

Swift Real Estate Partners Announces 1111 Broadway Acquisition

Swift Real Estate Partners | August 17, 2021

Swift Real Estate Partners ("Swift"), a San Francisco based real estate investment manager and operating company, announced today, the successful purchase of 1111 Broadway in Oakland, CA. 1111 Broadway is a "best-in-class" office building located in the heart of Oakland's dynamic CBD and situated directly atop the 12th Street BART station. The 24 story Class-A office building totaling 565,877 square feet features 24,000 square foot floor plates. Tenants also benefit from panoramic views, destination dispatch elevators, onsite parking, and a recently renovated lobby. The asset is 91% leased to a premier roster of diverse tenants. Swift was represented by Jack Machalow with Orrick. "We celebrated our eleventh anniversary in July and are continuing to grow and expand in our target West Coast markets. 1111 Broadway has been one of the best performing assets in Oakland since it was built and we're excited to add this marquee building to our expanding East Bay portfolio," said Christopher Peatross, President of Swift Real Estate Partners. Swift is currently investing on behalf of its third institutional value-add fund focused on West Coast office and industrial assets. About Swift Real Estate Partners Founded in 2010, Swift Real Estate Partners is headquartered in San Francisco, and has regional offices in Orange County, Portland, the San Francisco East Bay and the Silicon Valley. Swift is a vertically-integrated real estate investment firm which seeks to generate superior risk-adjusted returns for its partners. Swift acquires and repositions office and industrial assets in select West Coast markets, identifying unique opportunities and executing well-defined business plans while providing real-time, day-to-day oversight for each investment. Since inception, Swift has owned and operated real estate valued in excess of $4 billion across more than 10 million square feet. Swift is currently investing on behalf of its third institutional investment vehicle, Swift Fund III. Swift's professionals bring experience encompassing all aspects of real estate investment and management, including acquisition, financing, leasing, disposition, construction management, property management and marketing services.

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REAL ESTATE TECHNOLOGY

UCASU announces the appointment of leadership and $1 million in initial capital for SHOC investment based on Airbnb

prnewswire | December 29, 2020

UC Asset, an Atlanta-based worldwide land investment firm, reported the organization has invested introductory capital of roughly $1 million into SHOC Holdings LLC, and named Greg Bankston, who right now serves as an overseeing individual from UCASU's overall accomplice, as CEO of SHOC. The organization believes Bankston's twenty-year land foundation and information on the city's history make him the ideal applicant. SHOC, a completely possessed investee of UCASU, will obtain and create properties under UCASU's Airbnb-based imaginative property investment strategy. The new strategy will focus on home office innovation for voyaging professionals. SHOC aims to profit by another industrial pattern, i.e., the switch of business travelers from customary business lodging to shared convenience by means of platforms such as Airnbnb and Vrbo. UCASU's administration projects a $60 billion market in the coming years for this new pattern. "It is a revolution happening across the board," shares Larry Wu, founding partner of UC Asset, "Just like conventional taxi businesses are being taken over by shared-ride companies like Uber and Lyft, we believe conventional hotels will be taken over by technology driven shared-accommodation spaces." Shared convenience properties have pulled in investors in the past year, yet Wu claims there are no institutional investors who specialize in shared convenience properties furnished with home-office facilities, which will be almost exclusively promoted to business travelers. "Shared accommodations have replaced a fair share of vocational resorts. But conventional hotels who serve business travelers have held their grounds," explains Wu. "Before COVID-19, conventional hotels in central business districts or around airport hubs were still doing extremely well. Occupancy rate of these hotels stayed about 80% even 90% in major metros like Atlanta." Yet, COVID-19 has assisted a transition in work habits and numerous individuals will forever spend additional time in home office spaces. This pattern, as per the UCASU, will incite travelers to choose home-office style shared-accommodations over customary hotels. As of late, UCASU held a top-level research firm to lead market survey, and the results seemingly affirmed UCASU's conviction that business travelers will use more shared-accommodations, if those share-accommodations are furnished with home office facilities. UCASU claims that its supervisory crew is "past energized" at this first round of research information. "While we will retain our other investments, we are very committed to this new investment strategy because of its brilliant prospect," says Wu. "The initial $1 million will allow us to test this new strategy on a practical scale. Meanwhile we will explore all options to expand on this new strategy. Our goal is to form a $10 million portfolio of shared home office properties over the next 12 months." UCASU, through its other investees, has made successful investments into home renovations. It believes the new strategy, brand-named SHOC (Share-Home Office Community) will add cash pay to benefit from house redesign, and possibly improve the complete ROI to a level astoundingly higher than market normal. About UC Asset: UC Asset LP is a limited partnership formed for the purpose of investing in real estate for development and redevelopment, concentrating in metropolitan areas of Atlanta, GA and Dallas, TX. For more information about UC Asset.

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