Mortgage Rates Hover Near Historical Lows in U.S.

Freddie Mac | August 20, 2019

According to Freddie Mac's latest Primary Mortgage Market Survey for mid-August 2019, the 30-year fixed-rate mortgage rate in the U.S. averaged 3.60 percent, unchanged from last week. Sam Khater, Freddie Mac's chief economist, says, "The sound and fury of the financial markets continue to warn of an impending recession, however, the silver lining is mortgage demand reached a three-year high this week. The decline in mortgage rates over the last month is causing a spike in refinancing activity - as homeowners currently have $2 trillion in conventional mortgage loans that are in the money - which will help support consumer balance sheets and increase household cash flow. On top of that, purchase demand is up seven percent from a year ago."

Spotlight

Architects may design environments to improve the quality of life, but it’s the construction industry that makes those concepts a reality. A fundamental aspect to sound construction is selecting the correct materials, and one that has been gaining more attention for its strength and versatility is expanded metal. Although there are similar materials that can be used, this narrative will explore and illustrate how it is an excellent choice to protect, safeguard, and enhance.

Spotlight

Architects may design environments to improve the quality of life, but it’s the construction industry that makes those concepts a reality. A fundamental aspect to sound construction is selecting the correct materials, and one that has been gaining more attention for its strength and versatility is expanded metal. Although there are similar materials that can be used, this narrative will explore and illustrate how it is an excellent choice to protect, safeguard, and enhance.

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INVESTMENTS

Columbia Property Trust to Be Acquired by Funds Managed by Pacific Investment Management Company LLC in a $3.9 Billion Transaction

Columbia Property Trust, Inc. | September 07, 2021

Columbia Property Trust, Inc.announced that it has entered into a definitive agreement to be acquired by funds managed by Pacific Investment Management Company LLC, one of the world’s premier global investment management firms, for $3.9 billion including Columbia’s proportionate share of consolidated and unconsolidated debt. Under the terms of the agreement, which has been unanimously approved by Columbia’s Board of Directors, PIMCO will acquire all of the outstanding shares of Columbia common stock for $19.30 per share in cash. This represents a premium of approximately 27% over Columbia’s unaffected closing share price on Friday, March 12, 2021. During this time period the high barrier office sector has traded down 5%. This transaction with PIMCO is the culmination of a comprehensive strategic review process undertaken by Columbia’s Board of Directors which was publicly announced in the spring of this year. As part of this process, Columbia’s Board and advisors invited nearly 90 potential counterparties to participate, including strategic acquirers, private equity firms and other investment management firms. Constance Moore, Chair of the Columbia Board of Directors, said, “The Board of Directors is pleased to have reached this definitive agreement with PIMCO. This transaction provides Columbia shareholders with immediate and certain cash value at a significant premium to the Company’s public market valuation, and we are confident it represents the best outcome for all Columbia shareholders.” “We continue to believe that high-quality office buildings in major U.S. cities offer long-term value for our clients and Columbia has assembled a modernized, well-located portfolio of assets that we expect will perform well in the years ahead,” said John Murray, PIMCO Global Head of Private Commercial Real Estate. Francois Trausch, PIMCO Managing Director and Chief Executive Officer of Allianz Real Estate, added, “This is an exciting transaction and a great example of the strength of relationships within PIMCO’s global real estate platform.” The transaction is expected to close as early as year-end, subject to approval by Columbia’s shareholders and the satisfaction of other customary closing conditions. Upon completion of the transaction, Columbia’s common stock will no longer be listed on the New York Stock Exchange. Columbia shareholders will be entitled to receive the previously announced third quarter dividend of $0.21 per share payable on September 15, 2021. Thereafter, Columbia will not pay additional quarterly dividends during the pendency of the transaction. Due to the pending acquisition, Columbia will not be holding a conference call for its third quarter 2021 business results after it releases earnings information. Morgan Stanley & Co. LLC is serving as lead financial advisor to Columbia and Wachtell, Lipton, Rosen & Katz is serving as legal advisor. Eastdil Secured LLC and J.P. Morgan are also acting as financial advisors to Columbia. Goldman Sachs & Co. LLC is serving as lead financial advisor to PIMCO and Latham & Watkins LLP and Milbank LLP are serving as legal advisors. Deutsche Bank Securities Inc. is also acting as a financial advisor to PIMCO. Cushman & Wakefield is acting as a real estate consultant to PIMCO. About Columbia Columbia creates value through owning, operating, and developing storied properties for legendary companies in New York, San Francisco, Washington D.C., and Boston. The Columbia team is deeply experienced in transactions, asset management and repositioning, leasing, development, and property management. It employs these competencies to grow value across its high-quality, well-leased office portfolio of 15 properties that contain more than six million rentable square feet, as well as four properties under development, and also has more than eight million square feet under management for private investors and third parties. Columbia has investment-grade ratings from both Moody’s and S&P Global Ratings. About PIMCO PIMCO is one of the world’s premier fixed income investment managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the 50 years since, it has continued to bring innovation and expertise to its partnership with clients seeking the best investment solutions. Since launching its first opportunistic credit vehicles over 15 years ago, PIMCO has significantly expanded in alternative credit and private markets. The firm invests globally across commercial and residential real estate equity and credit, performing and distressed corporate credit, and specialty finance markets – actively managing investments across the capital structure. In 2020, PIMCO and Allianz Real Estate combined their commercial real estate platforms, making it one of the largest in the world. On a combined basis, PIMCO manages over $180 billion in commercial real estate assets globally. Today PIMCO has offices across the globe and professionals united by a single purpose: creating opportunities for investors in every environment. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.

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Diligence Capital Advisors Managing Partner Named Top 40 Under 40 Mid Atlantic Real Estate Journal

prnewswire | August 02, 2020

The Mid Atlantic Real Estate Journal has named Jared Cobert, Managing Partner of Diligence Capital Advisors, as a Top 40 under 40 in the Real Estate Industry. The Mid Atlantic Real Estate Journal has named Jared Cobert, Managing Partner of Diligence Capital Advisors as a Top 40 under 40 in the Real Estate Industry. The Mid Atlantic Real Estate Journal has consistently been voted as the Most Comprehensive Source for Commercial Real Estate News in the Mid Atlantic Region (New Jersey, Pennsylvania, Delaware, Maryland, Virginia and DC). The Mid Atlantic Real Estate Journal's Top 40 under 40 is an award given out to the Real Estate Industry's Top 40 performers under the age of 40.

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Ontario Teachers’ Bond Gain Helped Offset Real Estate Losses

yahoo | August 26, 2020

Ontario Teachers’ Pension Plan said gains in its bond portfolio helped offset losses in infrastructure and real estate, allowing the fund to nearly break even in the first half of the year. The C$205 billion ($155 billion) pension fund lost 0.4% in the six months through June despite a stock market correction and economic upheaval sparked by the Covid-19 pandemic. “Some of our hardest hit investments were among our private assets. Heavily-impacted segments were leisure and travel, including our five airports, and assets where consumer spending declined, which is our shopping malls and Cadillac Fairview,” Jo Taylor, the chief executive officer, said in a conference call with journalists Tuesday.

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