Small Assets Account for 37 Percent of U.S. Multifamily Property Sales in 2019

CBRE | September 26, 2019

According to global real estate consultant CBRE, there were 1,531 small U.S. property acquisitions in H1 2019, representing 36.7% of all multifamily asset purchases and revealing the scope of small asset buying. However, this purchase count is conservative since a notable number of transactions were under $2.5 million and therefore not included in the total. The percentage of small asset purchases in 2019 is on pace to exceed the 35% annual average since 2010. The expected gain is attributable to several factors, including healthy property market fundamentals, investors' search for new investment opportunities, new buyers entering the market and attractive financing options, says CBRE.

Spotlight

Property manager can work for a larger property management firm or independently. Property managers serve as go-betweens when issues about property maintenance occur, and the manager will then handle the problem by contacting the appropriate people Landlords are responsible for finding, screening.

Spotlight

Property manager can work for a larger property management firm or independently. Property managers serve as go-betweens when issues about property maintenance occur, and the manager will then handle the problem by contacting the appropriate people Landlords are responsible for finding, screening.

Related News

New Jersey Real Estate Private Equity Firm Launches Lucern Philadelphia Value Fund I

prnewswire | October 08, 2020

Lucern Capital Partners ("LCP"), a real estate private equity firm based out of New Jersey, announces the launch of Lucern Philadelphia Value Fund I, L.P. ("LPVF I"), a real estate investment fund focused on multifamily and mixed-use investments in the Philadelphia MSA. LPVF I is targeting a minimum equity capital commitment of $25 million, with a targeted deployment of $75 million in asset value with leverage. The firm's principals have been active in the Philadelphia MSA for the last decade, completing a multitude of transactions, the most recent of which was the acquisition of Del Campo Apartments in late 2019.

Read More

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.

Read More

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

Read More