New Home Mortgage Applications in U.S. Spike 18 Percent Annually in June

WORLD PROPERTY JOURNAL | July 15, 2019

The Mortgage Bankers Association Latest Builder Application Survey for June 2019 shows U.S. mortgage applications for new home purchases increased 17.9 percent compared from a year ago. Compared to May 2019, applications decreased by 14 percent. This change does not include any adjustment for typical seasonal patterns. "Ongoing concerns about economic growth and trade policy likely kept some potential buyers out of the market despite lower mortgage rates," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Our seasonally adjusted estimate of new home sales was down in June after two of the strongest months in the survey's history dating back to 2013, but remained higher than a year ago. The average loan amount for new home purchase applications fell slightly to its lowest level since November 2018, as home price growth continued to slow in many markets and purchase transactions have shifted away from the higher end of the price spectrum." MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 646,000 units in June 2019, based on data from the BAS. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.

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The recent explosion of the tech sector has led to increasing competition between countries and cities.

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The recent explosion of the tech sector has led to increasing competition between countries and cities.

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REAL ESTATE INVESTMENT

Capital Square Acquires Multifamily Community in Knoxville, Tennessee, for DST Offering

Capital Square | June 07, 2022

Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced the acquisition of Village at Westland Cove, a Class A, 240-unit multifamily community in Knoxville, Tennessee. The community was acquired on behalf of CS1031 Village of Westland Cove Apartments, DST. This is Capital Square's sixth acquisition of a multifamily community in Tennessee for the DST/1031 exchange program. Village at Westland Cove is located in one of the hottest housing markets in the nation for 2021.1 Employment in the area is exceptionally strong, with the Oak Ridge Reservation and National Laboratory, operated by the U.S. Department of Energy, only 19 miles away, generating 14,667 full-time jobs and wages totaling over $1.3 billion." Louis Rogers founder and chief executive officer of Capital Square Completed in 2019, Village at Westland Cove is located at 9635 Westland Cove Way along Interstate 140. The 28.2-acre luxury multifamily community sits on the shore of scenic Fort Loudoun Lake. It offers one-, two- and three-bedroom units averaging 1,147 square feet with best-in-class amenities. The community features include a state-of-the-art fitness center, Amazon lockers and coolers for grocery deliveries, car care center, two pet play areas, coffee bar, business center, food truck nights, gaming patio with bocce ball court, outdoor firepit, outdoor kitchen, club house, swimming pool, kayaks available to residents, as well as lake access via a resident dock. Village at Westland Cove is located within close proximity of The Pinnacle at Turkey Creek, a 650,000-square-foot shopping center that includes more than 65 retail stores and restaurants. The property is in the 10th hottest housing market in the country for 2021,1 with a 5-year value increase of 55%, according to Zillow Group. Turkey Creek Medical Center, a Level III trauma center that is part of Tennova Healthcare, lies within two miles of the property. Situated further along the I-140 and I-40 are attractions such as Knoxville Museum of Art, Market Square and Zoo Knoxville. The Oak Ridge Reservation, operated by the U.S. Department of Energy and home to Oak Ridge National Laboratory, is approximately 19 miles from the Village at Westland Cove and is the largest employer in the area. According to the East Tennessee Economic Council, approximately 14,667 full-time jobs were directly provided by the DOE and its major contractors within Tennessee in 2020, with annual wages and salaries totaling nearly $1.311 billion.2 WBIR.com reports that Bill Lee, Tennessee's governor, recently announced a $72 million budget for the UT-Oak Ridge Innovation Institute, a collaboration between the University of Tennessee and Oak Ridge National Laboratory, in a bid to attract and maintain science, technology, engineering and mathematics (STEM) talent in the Knoxville area.3 "Village at Westland Cove is an exceptional multifamily property located in an idyllic setting with luxury amenities throughout," said Whitson Huffman, chief strategy and investment officer. "The local economy is thriving, with low unemployment, high average household income and growing demand for high-end apartment living such as that provided to the residents of Village at Westland Cove." Data from Esri shows the average household income within a three-mile radius of the property reaches approximately $130,000. According to Yardi Matrix, Knoxville's rental rates are rising along with demand, with 18% year-over-year rent growth and 98.1% average occupancy as of March 31, 2022. The Bureau of Labor Statistics reports that Knoxville witnessed an increase of over 19,000 job opportunities since February 2021, with unemployment rates reaching 2.8%. According to the BLS, job opportunities in the area should continue to grow with 3M Company announcing plans to invest approximately $470 million to expand their manufacturing facility in the Knoxville MSA, creating 600 new jobs by 2025.4 Taylor Bird, Nelson Abels, Robert Stickel, and Alex Brown of Cushman & Wakefield represented the seller. Bird, executive director of Cushman & Wakefield, noted, "The Village at Westland Cove offers a truly unique asset coupled with an unrivaled amenity package, interior finishes and beautiful water views." CS1031 Village of Westland Cove, DST seeks to raise $52.8 million in equity from accredited investors and has a minimum investment requirement of $50,000. Since its founding in 2012, Capital Square has acquired 146 real estate assets for approximately 6,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation. About Capital Square Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $5.6 billion in transaction volume. Capital Square's executive team has decades of experience in real estate investments. Capital Square's related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic 50" reports in 2019 and 2020.

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MARKET OUTLOOK,REAL ESTATE ADVICE

Ventas’s Outlook Revised by Fitch Ratings to Stable

Ventas | July 19, 2022

Ventas, Inc. (NYSE: VTR) today announced that Fitch Ratings (“Fitch”) has revised its rating outlook for Ventas to Stable from Negative and affirmed Ventas’s issuer credit rating of ‘BBB+’. In revising Ventas’s outlook, Fitch highlights that operating performance in Ventas’s senior housing operating portfolio is expected to continue to gain momentum as evidenced by steady gains in rent growth and occupancy. Fitch believes that the senior housing portfolio is positioned for a strong recovery driven by attractive 80+ population growth leading to higher move-ins and a favorable supply backdrop. Fitch notes the benefits of Ventas’s diversified portfolio, approximately 30% of which consists of high-quality, principally on-campus medical office buildings and life science properties anchored by over 17 top-tier, high credit research universities. Fitch also cites Ventas’s strong liquidity position with minimal debt maturing through 2023 and management’s commitment to a strong financial policy. About Ventas- Ventas Inc., an S&P 500 company, operates at the intersection of two large and dynamic industries – healthcare and real estate. Fueled by powerful demographic demand from growth in the aging population, Ventas owns a diversified portfolio of over 1,200 properties in the United States, Canada, and the United Kingdom. Ventas uses the power of its capital to unlock the value of senior living communities; life science, research & innovation properties; medical office & outpatient facilities, hospitals and other healthcare real estate. A globally recognized real estate investment trust, Ventas follows a successful long-term strategy, proven over more than 20 years, built on diversification of property types, capital sources and industry leading partners, financial strength and flexibility, consistent and reliable growth and industry leading ESG achievements, managed by a collaborative and experienced team dedicated to its stakeholders.

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REAL ESTATE INVESTMENT

JRW Realty Facilitates the Acquisition of Six Walmarts in Louisiana

JRW Realty | May 27, 2022

JRW Realty, a nationwide commercial real estate brokerage dedicated to finding and delivering net-leased properties, has facilitated the acquisition of six Walmart Neighborhood Markets in Louisiana on behalf of its client for a total price of $84 million. The six stores account for approximately 43,000 square feet each and are located in the southern or coastal Louisiana towns of Meraux, Houma, Prairieville, New Iberia, Opelousas, and Thibodaux. All purchases have single-tenant net leases in place, with individual prices ranging from $11.8 million to just under $16.5 million. The total square footage of the six stores is 257,427. JRW Realty's Jennifer Rodriguez Ventura facilitated the deal on behalf of an institutional buyer with a demand for specific net-leased properties. JLL's Alex Sharrin represented the seller in the transaction. Jennifer worked diligently to bring this transaction to fruition. We always seek the right kinds of properties for our clients' private real estate investment firms. As they have solid backing and resources, they are actively engaging in deals of this size and higher." Melinda Marston,JRW Realty's president of single-tenant net lease Walmart Neighborhood Markets were designed in 1998 as a smaller-footprint option for communities in need of a pharmacy, affordable groceries, and merchandise. Each location employs up to 95 associates. "Our clients have specific criteria for purchasing real estate," Marston said. "One such criteria is net-leased properties tenanted by creditworthy clients. These Walmart Neighborhood Markets fit that description as well as anything could, and we are delighted to have been able to bring this deal to our clients and to help them complete a successful closing." About JRW Realty JRW Realty is a commercial real estate brokerage firm that has closed on more than 900 properties valued at more than $3.6 billion on behalf of its clients. JRW Realty's team places special focus on due diligence, reviewing over 100 properties each week and only choosing to source for clients the best 3-4% according to their rigorous acquisition criteria.

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