Reversing Course: U.S. Commercial Investment Capital Outflows Now Exceed Inflows

WORLD PROPERTY JOURNAL | February 14, 2020

With the longest global economic expansion on record, international commercial property investors now face an increasingly complex calculus in identifying cost-effective opportunities for potential downturn protection, and slowing cross-border capital flows. Because of such, CBRE is reporting this week that inbound capital to the U.S. dropped 54% in 2019, largely due to a sharp decrease in entity-level sales that tend to be highly volatile from year to year. In 2018, rising U.S. interest rates and discounted REIT share prices contributed to entity-level sales' unprecedented 51% share of total inbound volume. But as these trends reversed in 2019, this share dropped to just 6%. Excluding entity-level transactions, 2019 inbound investment decreased by a more moderate 12.1%.
With U.S. capital outflows down by just 1% from 2018, the amount of capital that U.S. investors deployed in foreign real estate markets exceeded inbound capital by nearly $18 billion in 2019. Sovereign wealth funds, insurance companies and pension funds (SWIP) together accounted for 30% of inbound volume in primary markets during H1 2019 compared with just 3% in secondary markets.

Spotlight

The mortgage industry has been struggling since the implementation of the TILA-RESPA Integrated Disclosure (TRID) Act to produce and deliver accurate documents to consumers on a significantly shortened timetable. It seems that adopting electronic closing (e-closing) procedures should have become mainstream procedure by now, yet it remains on the fringe of common practice. Consumers and investors have played a role in this delay, along with lenders themselves, despite the Consumer Finance Protection Bureau's (CFPB) advocacy for using e-closing procedures. Why would the mortgage industry and its consumers resist a change that will produce more efficient closings with better accuracy?

Spotlight

The mortgage industry has been struggling since the implementation of the TILA-RESPA Integrated Disclosure (TRID) Act to produce and deliver accurate documents to consumers on a significantly shortened timetable. It seems that adopting electronic closing (e-closing) procedures should have become mainstream procedure by now, yet it remains on the fringe of common practice. Consumers and investors have played a role in this delay, along with lenders themselves, despite the Consumer Finance Protection Bureau's (CFPB) advocacy for using e-closing procedures. Why would the mortgage industry and its consumers resist a change that will produce more efficient closings with better accuracy?

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NAS Investment Solutions Acquires New Class-A, Indiana Office Property

NAS Investment Solutions | December 22, 2021

NAS Investment Solutions (NASIS), a national sponsor of high-quality real estate investment properties with a nationwide reputation for acquiring elite commercial real estate with investment grade tenants, has acquired a prime Class-A, office property in South Bend, IN. Newly constructed in 2021, the 82,064 square-foot office building serves as the national headquarters for Press Ganey, the area's fifth largest employer and a leading provider of performance measurement and improvement services to U.S. healthcare providers. The company currently has 1600+ employees in 23 locations across the U.S. and over 41,000 customers, including over 80% of the largest U.S. hospitals and medical service providers. Press Ganey has a 98% customer-retention rating. Assuming responsibilities for asset management and property management for the newly acquired investment is National Asset Services (NAS), one of the Nation's leading commercial real estate companies. Since 2008, NAS has served over 2,500 investment clients and has established an impressive track record for investment property management. The track record includes generating over $585 million in cash distributions to property investors and managing a commercial real estate portfolio of 169 diverse commercial properties, comprised of 24.422 million square-feet, in 30 states. The overall value of NAS' managed portfolio in the company's 12-year history, totals over $3.325 billion. We are extremely proud to have delivered an elite, trophy-class property to our investment clients while expeditiously closing the transaction for our 1031 Exchange investors, This property acquisition is the direct result of our tenacious acquisitions team, our exhaustive underwriting process and our transactions management expertise." Karen E. Kennedy, President and Founder of NAS Investment Solutions and National Asset Services. NASIS was represented by Paul D. Rubenstein, Attorney in Los Angeles, CA for the acquisition of the property. Located less than two miles southwest of downtown South Bend, the Press Ganey property's structure and design were recognized by the Indiana Kentucky Associated Builders and Contractors with the 2021 Award of Excellence in Construction. The 6.8-acre site consists of approximately 408 surface parking spaces and features a unique 4,800 square-foot rooftop employee patio lounge. About NAS Investment Solutions (NASIS) NAS Investment Solutions was established to leverage National Asset Services' vast experience in investment property management by identifying, acquiring, and enhancing commercial real estate investments across all sectors of the real estate industry. About National Asset Services (NAS) Headquartered in Los Angeles, California, NAS manages a wide range of diverse commercial real estate: Office, medical office, multifamily, retail, student housing, assisted living and industrial flex properties. The company manages sole-owned and multi-owner properties. NAS offers a wide range of asset management capabilities. They include property management; project management; lease administration; acquisition and disposition services; real estate strategy analysis; long-range business objectives; monitoring changing market conditions; investor relations; real estate and investor accounting; loan modification and workout solutions; exit and hold strategies; leasing & marketing; tenant retention plans; research studies; site selections; feasibility studies; insurance risk management; capital improvement planning and tracking; property tax appeal services and cost segregation services.

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REAL ESTATE INVESTMENT

VENTERRA REALTY ACQUIRES ORANGE PARK MULTI-FAMILY COMMUNITY

VENTERRA REALTY | December 20, 2021

Venterra Realty has purchased The Villages at Oakleaf, a 512-unit, garden-style multifamily, located within the Oakleaf Plantation master-planned community and consisting of Gemstone, Fieldstone, Cobblestone, and Village at Oakleaf Plantation in suburban Jacksonville, Florida. The Villages at Oakleaf was built in five different phases between 2008 and 2018. It is the only apartment community in Oakleaf Plantation, giving it unique access to the centralized multi-million-dollar community recreational amenity center, which includes swimming pools, a water park, picnic areas, sports fields, tennis courts, basketball courts, and indoor fitness centers Located in Clay County, an area known to have a superior school system, the community provides a desirable living choice for families. With the presence of large unit sizes and many floorplans offering 3- and 4- bedroom options, as well as many kid-friendly amenities including a playground, The Villages at Oakleaf can provide families with an exceptional living experience. All three schools to which The Villages at Oakleaf are zoned are highly rated and within walking distance. We are pleased to announce the acquisition of these premier assets and add another high-quality property to our Florida portfolio,Demand for family-centric rental options is strong in today's housing market. The Villages at Oakleaf stood out to our acquisition team due to its extensive amenity package across the property sure to appeal to all types of renters, with families at the forefront." John Foresi, Venterra CEO Jacksonville was ranked as the fastest-growing Florida city by the U.S. Census Bureau in 2020, ranking 9th in the country in terms of highest in-migration in the U.S. Before the pandemic, Jacksonville averaged 2.6% annual job growth between 2011 and 2019, compared to the U.S. average of 1.7% for the same period. The Jacksonville MSA is one of only a handful of major markets in the country that has recovered all jobs lost during the pandemic. Jacksonville's booming population and demand was a key driver in this acquisition, We look forward to optimizing the operations at this community, creating value for our investors, and providing an exceptional living experience for residents of Jacksonville." Venterra Chairman, Andrew Stewart. Venterra will implement its resident-focused programs such as the Live it. Love it. Guarantee.™, the 48-Hour Maintenance Guarantee, SMARTHUB, as well as their overall commitment to providing a world-class living experience for which Venterra has become known. About Venterra: Founded in 2001, Venterra Realty owns and manages approximately 70 communities and more than 20,000 apartment units across 13 major US cities that provide housing to over 40,000 people and 12,000 pets. The organization has completed $7.2 billion in real estate transactions and currently manages a portfolio of multi-family real estate assets valued at approximately $4.0 billion. Venterra is committed to improving the lives of its residents by delivering industry-leading customer experience.

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Brennan Completes Acquisition Of Surplus Corporate Real Estate Asssets

prnewswire | October 20, 2020

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