Low rates fuel ‘explosion’ of property deals

commercialrealestate | January 21, 2020

Lower interest rates are set to fuel more complex and creative property deals at record prices as asset-starved investors target companies in areas such as healthcare, food production, logistics and even not-for-profit sectors that are looking to offload real estate from their balance sheets. One of the biggest deals to round out 2019, Charter Hall’s pre-Christmas acquisition of $840 million worth of BP fuel and convenience retail properties, has set the scene for more large-scale portfolio sales. The flood of capital into real assets is forcing discerning buyers to look beyond the traditional scope of property deals to satisfy demand. The economists of all four big banks expect the RBA to cut the official cash rate to a record low of 0.5 per cent in February, which could trigger an even bigger rush into Australia’s commercial real estate market.

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REAL ESTATE INVESTMENT

EVERNEST ACQUIRES TULSA PROPERTY MANAGEMENT

EVERNEST | December 22, 2021

Evernest, a full-service real estate and property management company, headquartered in Birmingham, Alabama, that specializes in the brokerage and management of single-family homes and small multifamily properties, announced today that they have acquired the property management assets of Tulsa Property Management, based in Tulsa, Oklahoma. We could not be more excited than to be in Oklahoma – particularly in the amazing community of Tulsa. We've wanted to be here ever since we began our expansion into new markets. The founder of Tulsa Property Management, Luke Westerfield, built a great company and we will, by virtue of this acquisition, be managing some of the best homes in the Tulsa metro area. We plan to use the acquisition as a platform to offer investment opportunities in Tulsa to current clients and future clients with a desire to invest in a solid market." Evernest Founder and CEO, Matthew Whitaker Evernest has grown from a small Birmingham-based property manager into a full-service real estate company and one of the nation's largest single-family and small multifamily investment property management service providers. They currently have offices in Atlanta, Birmingham, Boulder, Chattanooga, Colorado Springs, Columbus (OH), Denver, Detroit, Fort Collins, Jackson (MS), Little Rock, Memphis, Murfreesboro, Nashville, Toledo, and now, Tulsa. Evernest manages about 6,000 homes with its almost 150 team members and has been on the Inc5000 list 5 out of the last 6 years. Evernest was a great fit for my clients. They are obviously doing something right with the amount of growth they've had over the last 5 years. For me, it provides an opportunity to focus on the large multifamily and development side of the real estate business." Westerfield We've acquired 16 companies over the past several years and will continue to focus our efforts on growth through acquisitions in thriving markets like Tulsa. We're most successful when we acquire a great company like Tulsa Property Management and infuse it with our distinctive culture and what we call our 'Three Uniques' - 1. Our national brand with local team. 2. Being an investor's real estate partner, and 3. Running all application underwriting in-house." Whitaker

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REAL ESTATE INVESTMENT

EMPIRE STATE REALTY TRUST SIGNS PROGYNY, INC. FOR 70,573 SQUARE FEET ACROSS THREE FULL FLOORS AT 1359 BROADWAY

Empire State Realty | March 03, 2022

Empire State Realty Trust, Inc. (NYSE: ESRT) today announced a new lease with Progyny, Inc. a leading fertility benefits management company, at 1359 Broadway. Progyny has committed to occupy 70,573 square feet across three floors, which includes one floor that it previously subleased, one floor that Progyny will occupy in late 2022 and a third floor that they will occupy in early 2024. We are growing rapidly as more and more employers recognize the value of Progyny's comprehensive fertility and family building solution, We look forward to expanding our presence in our corporate office in New York City with Empire State Realty Trust." Pete Anevski, CEO of Progyny. Located along the updated Broadway Pedestrian Plaza, 1359 Broadway offers convenient access to major transportation hubs, subway lines, dining, lodging, and shopping. The fully modernized office building features industry-leading energy efficiency and indoor environmental quality measures at a fraction of the cost of newer buildings. Our premier indoor environmental quality measures and energy-efficient practices continue to attract high-quality tenants who appreciate our value proposition, Progyny is a welcome addition to our excellent tenant roster at 1359 Broadway after a successful sublease." Thomas P. Durels, executive vice president, real estate at Empire State Realty Trust. David Falk, Kyle Ciminelli, and Dylan Weisman of Newmark Knight Frank represented Progyny, Inc. in the lease negotiations. Property owner representation was provided by Shanae Ursini and Jordan Berger of ESRT, and Paul J. Amrich, Emily Chabrier, Neil V. King III, and Meghan Allen of CBRE. About Empire State Realty Trust Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and manages a well-positioned property portfolio of office, retail, and multifamily assets in Manhattan and the greater New York metropolitan area. Owner of the Empire State Building, the World's Most Famous Building, ESRT also owns and operates its iconic, newly reimagined Observatory Experience. The company is a leader in healthy buildings, energy efficiency, and indoor environmental quality, and has the lowest greenhouse gas emissions per square foot of any publicly traded REIT portfolio in New York City. As of Dec. 31, 2021, ESRT's portfolio is comprised of approximately 9.4 million rentable square feet of office space, 700,000 rentable square feet of retail space and 625 units across two multifamily properties.

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REAL ESTATE INVESTMENT

Titan Development Announces First Speculative Industrial Building at Westpointe40 Business Park in Albuquerque

Titan Development | March 26, 2022

Titan Development is moving forward with its first speculative building at Westpointe40, a business park located at I-40 and 98th Street in Albuquerque. Building 1 is a Class A, institutional-grade facility with 150,574 square feet of space targeted for completion in the second quarter of 2023. Westpointe40 will be ideally located within a one-minute drive of Interstate 40, a major thoroughfare for warehousing and distribution users, and Titan will target these users in addition to light manufacturing companies. Many major cities – including Phoenix, Denver, Las Vegas and Oklahoma City – are within an eight-hour drive of Albuquerque, making the city and Westpointe40 an important hub for commerce. The park is also in close proximity to Interstate 25, Albuquerque International Airport and within close driving distance to most of the city's labor force. Building 1 at Westpointe40 has been designed to accommodate a wide variety of warehousing, distribution, light manufacturing and services users, with a rear-load configuration, 32' clear height, dock-high and grade-level doors and ample trailer parking. The building is designed for users between 40,000 and 150,000 square feet. Wilger Enterprises is the general contractor for the project, GBA is the architect, Tierra West is the civil engineer, and Consensus Planning serves as an entitlement consultant. NAI SunVista's Riley McKee, Alex Pulliam, Jim Wible and Jim Hakeem are currently marketing the property for lease. This building is part of Westpointe40, a master plan business park containing 100 acres of shovel-ready sites. Titan's efforts at Westpointe40 follow its strong successes over the last several years in the Texas markets of Austin and San Antonio where demand is surging. Titan has received strong support and interest from the Albuquerque Regional Economic Alliance (AREA) in exploring options and opportunities to create new jobs for the community. We believe – and our data shows – that Albuquerque is ready for speculative industrial development, and we're already seeing strong interest in the Westpointe40 project from prospective tenants and buyers. Paired with the city's booming residential market and its renewed focus on recruiting non-local businesses and growing local businesses, we anticipate that our industrial park will attract new jobs and employment opportunities for both current residents and newcomers to our great state." Brian Patterson, PE and Senior Vice President at Titan "Titan and our local land partners are excited to bring industrial development to Albuquerque, especially along the critical I-40 corridor," said Sal Perdomo, Director of Acquisitions and Development. "Several major companies already have distribution centers in this area, and as national demand for ecommerce continues to grow – and as private developers as well as the city and state continue to recruit and retain economic base employers – we expect that Westpointe40 will serve as a key southwestern hub for other manufacturers and logistics warehouses looking to expand or relocate their operations." About Titan Development Titan Development is a leading Southwest full-service development and real estate investment firm. Titan has developed 13 million square feet of real estate totaling more than $2.5 billion in project cost since the firm was formed in 1999. Titan Development has a wealth of real estate development experience in many asset classes including private equity fund investment and management, and has offices in Austin, TX, and Albuquerque, NM. Titan Development's first private equity fund Titan Development Real Estate Fund I (TDREF I) raised $112 million and invested in a variety of real estate asset classes. Titan Development Real Estate Fund II (TDREF II) raised $95 million and commenced in November of 2020. TDREF II focuses on industrial and multifamily development in secondary and tertiary markets. TDREF II has identified all fund projects, has committed 80% of the total fund equity to eleven projects and has identified the remaining projects which will commence construction in early 2022.

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REAL ESTATE INVESTMENT

FAIRSTEAD ACQUIRES 200-UNIT PORTFOLIO IN JACKSONVILLE, FLORIDA

FAIRSTEAD | December 17, 2021

Fairstead, a purpose-driven, vertically integrated real estate company committed to sustainable development and the creation and preservation of high-quality housing, today announced it has acquired the Sable Palms Apartments in Jacksonville, Florida. The acquisition will preserve and extend the affordability of the 200 units and enable investments in improvements to the apartments, buildings, and outdoor space. Preserving our affordable housing stock is a critical strategy to supporting our neighborhoods and ensuring that families can stay in the communities they love, Fairstead's acquisition of Sable Palms Apartments will extend the affordability of 200 homes and bring improvements to enhance the lives of residents." -Jordan Capellino, Director, Development at Fairstead The Sable Palms Apartments features 200 one- to four-bedroom units across 29 residential buildings. The campus includes one community building, where the management office is located, as well as two playgrounds, laundry facilities, and parking. Fairstead will preserve and extend the affordability of these units and provide upgrades to the buildings including improved kitchens, bathrooms, appliances, and common areas. Fairstead recently announced a new $500 million equity commitment to strategically grow the company's operations, including expanding its multi-family housing portfolio and enhancing the firm's prop tech, sustainability, and community impact programming. Fairstead works with community leaders, advocates, and residents to provide programming and services that improve resident health outcomes, provide financial literacy, offer job training, bolster internet access, and provide opportunities for civic engagement. This purchase is part of Fairstead's ongoing commitment to creating and preserving affordable housing across the nation. This week, Fairstead announced the largest affordable housing deal of the year in New York City with the acquisition of 48 buildings in the Bronx. Last week, Fairstead announced the acquisition of Gateway, 160 apartments in Lake Jackson, Texas, where it will preserve and expand its affordability. In Virginia, the Alexandria Redevelopment and Housing Authority (ARHA) recently announced that it had selected Fairstead in partnership with Mill Creek Residential and The Communities Group to redevelop the Samuel Madden Homes in Old Town Alexandria, nearby the new Amazon HQ2, where the company will create a sustainable mixed-use community with affordable, workforce, and market-rate housing. About Fairstead: Fairstead is a purpose-driven vertically integrated real estate developer specializing in creating sustainable, high-quality housing. The firm's national footprint includes more than $6 billion in assets and identified pipeline. With offices in New York, Maryland, and South Carolina, Fairstead's team manages 90+ communities across the country and runs its comprehensive real estate platform, which includes acquisitions and development, venture capital investments in prop tech, design and construction, energy and sustainability, property management, marketing, and leasing. The firm also administers one of the industry's most proactive community impact programs to provide on-site support services to residents.

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