Real Estate Investing Expands with The Rise of New Technology and 5G

Pacer ETFs | October 15, 2019

Real Estate Investing Expands with The Rise of New Technology and 5G
The United States technology and industrial real estate sectors continue to evolve in preparation for the rapid expansion of new technologies like e-commerce, the Internet of Things, streaming, and 5G. The rise of artificial intelligence, autonomous vehicles, online streaming and e-commerce services stand to fundamentally change how businesses interface and communicate with consumers. Before this takes place, however, Sean O’Hara, president of Pacer ETFs Distributors, says the “backbone of tech” must expand.

Spotlight

Consumer demand for energy efficient homes that feature lower energy costs, greater comfort, and other benefits, has been growing steadily during the past decade. The success of energy efficiency programs in markets across the country has contributed to a growing inventory of improved existing homes.

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MARKET OUTLOOK

Starwood Increases Offer to Acquire Monmouth Real Estate Investment Corp. to Net Consideration of $19.20 Per Share in Cash

Starwood Real Estate Income Trust, Inc | August 19, 2021

Starwood Real Estate Income Trust, Inc., an affiliate of Starwood Capital Group, a leading global private investment firm focused on real estate and energy investments, today submitted an enhanced all-cash, fully financed, fully actionable proposal to acquire Monmouth Real Estate Investment Corporation for $19.93 per Monmouth share reduced by the termination fee owed to Equity Commonwealth ("EQC") of $72 million or $0.73 per share. Starwood’s enhanced proposal would provide net consideration of $19.20 per share to Monmouth shareholders after payment of the EQC termination fee, which was increased by $10 million by the Monmouth Board on August 16, 2021. Starwood’s proposal offers Monmouth shareholders a premium to EQC’s revised offer with 100% cash-certain value (versus EQC’s offer, where approximately 35% of the aggregate consideration would be paid out in cash1), and does not subject Monmouth shareholders to the uncertain and unsubstantiated future value creation from the EQC transaction, which is already worth less to shareholders given the decline in EQC shares since its revised proposal was announced. Ethan Bing, Managing Director of Starwood, said, "Our increased all-cash offer is superior to EQC’s revised proposal given the higher certain value that is not exposed to market risk or dependent upon unproven execution. The EQC offer requires Monmouth shareholders to forego the certainty of our higher cash offer in exchange for speculative value creation from a merged entity with no synergies and no obvious competitive advantages in the highly competitive industrial sector where EQC has not actively participated.” Bing added, “The Monmouth Board, whose initial process was led by a strategic alternatives committee that ISS rightly criticized as ‘not fully independent,’ appears committed to the interests of Monmouth insiders rather than its fiduciary duty to maximize value for all Monmouth shareholders. The Monmouth Board’s decision to increase the termination fee for EQC, without having engaged in a single conversation with a committed all-cash bidder already at a significant premium to EQC, is yet another disappointing breach of faith to its shareholders – a clear effort to protect EQC from competing bidders willing to offer superior and more certain value to Monmouth shareholders. In contrast, Starwood has not raised its termination fee in connection with its revised offer.” Bing concluded, “We stand ready to sign the already-negotiated merger agreement with Monmouth. We urge the Monmouth Board to act in the best interest of all its shareholders by immediately declaring our increased offer superior, foregoing any future actions which would deprive shareholders from realizing maximum value, and proceeding quickly to finalize our proposed transaction for the benefit all Monmouth shareholders.” About Starwood Capital Group Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,000 employees. Since its inception in 1991, Starwood Capital Group has raised over $60 billion of capital, and currently has approximately $90 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust, the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $69 billion of capital since inception and manages a portfolio of over $18 billion across debt and equity investments. Over the past 29 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets

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REAL ESTATE INVESTMENT

Dalfen Industrial Acquires Industrial Property in Winston Salem

Dalfen Industrial | December 13, 2021

Dalfen Industrial announced the acquisition of a 304,200 square foot industrial property in Winston Salem, NC. Built in 2006, Union Cross Distribution Center has features sought after by modern e-commerce tenants, including being strategically located one mile off of I-74 with convenient access to I-40 and I-85. This location provides an excellent last mile distribution opportunity to reach Winston Salem, Greensboro, and High Point's 1.7 million population base. The Piedmont Triad's industrial market continues to be very tight with limited available inventory, coupled with high tenant demand and absorption from last mile tenants. Located in the Union Cross submarket, this area provides a distinct advantage with accessibility, and a high-quality tenant base with institutional ownership. The building is 100% occupied by one tenant who is currently paying below market rent, providing a significant upside during renewal as well as during exit. Other tenants in the area include Fedex, Amazon, Caterpillar, Proctor & Gamble, and PepsiCo. "Sourced off-market and below replacement cost, Union Crossing Distribution Center is a great addition to our North Carolina portfolio. The vacancy rate in this market is a tight 2.3% due to continued and strong tenant demand which is expected to continue." -Kevin Caille, Market Officer at Dalfen Industrial "The demand for industrial properties in North Carolina continues to outpace supply. We have had tremendous success in the Carolinas and are always looking for the next opportunity to expand our footprint in this market." -Sean Dalfen, President and Chief Investment Officer at Dalfen Industrial Dalfen Industrial currently owns close to 3 million square feet of industrial properties in North Carolina.

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Anycurb Continues to Leverage Data to Improve the Homeownership Experience and Increase Your Home's Value

AnyCurb | August 10, 2020

AnyCurb will begin offering the ecobee SmartThermostat with voice control for free to homebuyers with the purchase of a home with an AnyCurb real estate agent. The Data-Driven Real Estate Brokerage, which seeks to increase housing supply by making off-market homes attainable for homebuyers, announced the incentive program earlier this week. The goals of this program are to promote sustainability, increase homebuyer savings, and incorporate the benefits of data into households. According to ecobee: "Heating and cooling costs account for between 40% and 50% of a typical home's overall energy costs, and an ecobee smart thermostat can save a homeowner an average of 23% on those costs."

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Spotlight

Consumer demand for energy efficient homes that feature lower energy costs, greater comfort, and other benefits, has been growing steadily during the past decade. The success of energy efficiency programs in markets across the country has contributed to a growing inventory of improved existing homes.