Property prices fell in March, cancelling out gains in February, latest index shows

Halifax | April 08, 2019

House prices in the UK fell by 1.6% in March to an average of £233,181, correcting the rise recorded in February, the latest lender index shows. But on a quarterly basis they increased by 1.6% and year on year prices are 2.6% above where they were in March 2018, according to the figures from the Halifax index. Russell Galley, managing director of the Halifax, said that the focus should not be on monthly figures as these can be too volatile to give a true picture of what is happening in the property market.

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REAL ESTATE INVESTMENT

Cadre Hires Dustin Cohn as CMO to Boost Awareness of Commercial Real Estate Among Main Street Investors

Cadre | April 21, 2022

Cadre, the technology-driven commercial real estate investment platform, announced the hire of Dustin Cohn as Chief Marketing Officer to continue driving awareness around the accessibility and advantages of real estate investing. With decades of experience across brand development and performance marketing, Cohn will report to Cadre Founder and CEO Ryan Williams to support Cadre's mission of democratizing commercial real estate (CRE) investing, a traditionally exclusive asset class. According to a recent survey, 73% of consumers earning $75k - $500k are interested in CRE, but only 14% are invested in it.1 This may be due to a number of misconceptions about the asset class. Many consumers assume CRE is exclusive to the ultra wealthy, institutions, or requires at least $100k to invest. There is also a knowledge gap about the benefits CRE can provide – by and large, consumers are worried about inflation (86%), they want to diversify their portfolios (68%), but many do not recognize CRE's potential for inflation-hedging or historically high risk-adjusted returns.2 Cadre, now with the help of Cohn, is working to dispel misconceptions by providing and promoting unprecedented access to CRE. At Cadre, we are keen to educate individuals about the financial opportunities the commercial real estate market can provide. I founded Cadre to serve those typically excluded from accessing high-quality assets and opportunities to build wealth. Dustin's proven experience reaching individuals and raising awareness is unparalleled, and I am eager to work with him as we bring the transparency, accessibility and liquidity of our platform to more people." Ryan Williams, Cadre Founder and CEO Cohn joins Cadre following its most successful quarter to date, as platform users rose by more than ~20% and the firm raised nearly as much capital from individual investors as it had throughout all of 2021. Cohn's experience helping consumers access wealth-building tools will help build off that momentum. Prior to Cadre, Cohn served as Head of Brand and Marketing for Marcus and Wealth Management at Goldman Sachs, leading the development of the Marcus brand—notably inventing its name—and launching a number of firsts for the storied firm, including its first-ever consumer advertising campaign and athlete sponsorship. He also led brand and marketing efforts for the firm's Asset Management division. "Cadre's platform already disrupted the status quo by giving individuals access to institutional-quality real estate," stated Cohn. "Commercial real estate is no longer just for the uber wealthy and institutions. For many consumers, the remaining barrier is simply awareness. A modern wealth-building tool is already available to individual investors right now, a few clicks away. I am honored to join the firm's mission to not only deliver this access, but also educate more investors that it exists." Cohn also has experience leading marketing for a number of global consumer brands. Prior to joining Goldman Sachs, he served as CMO for Jockey International, CMO for Optimer Brands, and spent several years at PepsiCo as Marketing Director for Gatorade and Propel. About Cadre Cadre is a groundbreaking technology-driven commercial real estate investment platform that offers both institutional and individual investors the opportunity to access expertly curated real estate assets with lower minimums, low fees, and unprecedented potential for liquidity. Via its data-driven and transparent approach, Cadre opens participation in a historically opaque and illiquid asset class. Along with its traditional investment offerings, Cadre also provides investors with the ability to pursue highly vetted commercial real estate opportunities and the opportunity to seek liquidity through its proprietary secondary market, a unique offering within the industry. Since Cadre's founding, Cadre has closed more than $4.5 billion in real estate transactions across 23 U.S. markets and delivered an 18+% average net IRR across all completed property sales,3 resulting in the return of more than $300 million of capital to Cadre investors to date.

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REAL ESTATE INVESTMENT

Walker & Dunlop Structures $70 Million in Financing for Manhattan's 21 West Street Apartments

Walker & Dunlop, Inc. | April 12, 2022

Walker & Dunlop, Inc. announced that it has arranged $70,000,000 in permanent financing for 21 West Street in New York, New York. The 33-story tower includes 293 carefully designed studio, one-, two-, and three-bedroom apartments. Located in the Financial District of Manhattan, the property is proximate to the offices of major financial firms, including Goldman Sachs and American Express. Jonathan Schwartz, Adam Schwartz, Aaron Appel, Keith Kurland, Michael Ianno, and Triston Stegall led the Walker & Dunlop team in arranging the financing for Rose Associates, a repeat client. Based in New York, Rose Associates is a leading multifamily and mixed-use real estate developer and operator that has overseen the successful residential and retail leasing at the property for nearly 30 years. The 12-year loan, provided by MetLife features an attractive fixed rate and interest-only payments for the entire term, which will ensure continued operating performance for years to come. The Rose Associates team was led by Marc Ehrlich, Chief Investment Officer and Michele Bengelsdorf, Head of Asset Management. Though the New York City rental market experienced headwinds during the COVID-19 pandemic, the market has successfully absorbed more than 60,000 new units that were delivered over the past four years. With vacancies at near record lows, this lending opportunity was very attractive to the capital markets." Walker & Dunlop's Jonathan Schwartz 21 West Street blends modern convenience and a classic landmark style with luxurious residences. The property's amenity offerings include a roof deck, fitness center, resident lounge, and children's playroom. With excellent transit access, residents enjoy convenient access to the rest of Manhattan as well as to Brooklyn, Queens, and New Jersey. New retail offerings, including West of Broadway, Brookfield Place, and Westfield's World Trade Center mall dramatically increase area residents' shopping and dining options. Walker & Dunlop is the third largest provider of capital to the U.S. multifamily market, originating $49 billion in transactions and lending over $42 billion for multifamily properties in 2021. With one of the strongest networks in the industry, the firm's 2021 brokered loan originations totaled $30 billion, a 170% increase over 2020. About Walker & Dunlop Walker & Dunlop is one of the largest providers of capital to the commercial real estate industry, enabling real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology makes us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With over 1,000 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune's Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities. About Rose Associates, Inc. Established in 1925, Rose Associates is a premier real estate firm specializing in multifamily rental properties in New York City and the tristate area. Focused on the development, acquisition and management of the highest quality assets, the firm is currently developing six properties in the New York City metropolitan area. Rose's management platform incorporates state-of-the-art services to maximize revenue and enhance asset value, ensuring that Rose properties consistently outperform the market. Under the leadership of CEO and President Amy Rose, the firm is a certified Women's Business Enterprise that is currently pursuing a diverse and aggressive growth strategy.

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REAL ESTATE TECHNOLOGY

National Association of Realtors: Why Industrial Spaces Lead Commercial Real Estate in Bouncing Back From COVID

National Association of Realtors (NAR) | March 28, 2022

Commercial real estate took a hit during the COVID-19 pandemic, as did many industries. But the market is starting to bounce back this year, largely due to increased investments in industrial properties. According to research by the National Association of Realtors (NAR), commercial real estate transactions of less than $2.5 million fell by 1% in the beginning of 2021 and the value of commercial real estate properties fell by 6% compared to 2020. Still, there is hope for the future as certain types of commercial properties are driving sales and seeing positive growth from the year before. Here's a closer look at how industrial spaces are helping commercial real estate bounce back from COVID-19. Spend on industrial properties and land increased Sales for all types of commercial real estate decreased in 2021, with the exception of three categories: land (+3%), industrial warehouses (+2%), and industrial flex spaces (+1%). That means, while businesses were shying away from commercial real estate lending for apartment buildings, offices, retail shops, and hotels, they were still spending money on industrial properties and land on which they could build their own structures. Prices rose for industrial properties, land, and apartments The number of commercial real estate transactions may have dropped, but sales prices increased by 2% on average. Specifically, prices for land increased by 6%, industrial flex spaces and warehouses by 5%, and certain types of apartment buildings by 5%. Meanwhile, sales prices declined for retail shops, offices, and hotels. Industrial and residential construction projects grew Commercial development projects are also on the rise for industrial and residential properties. Construction activity is up 1% from last year with a whopping 12% jump in construction for industrial warehouses, a 6% increase for industrial flex spaces, and a 6% growth for certain types of apartment buildings. Vacant malls, for example, are being converted into new types of commercial spaces, such as mixed-use buildings for residential, retail, and office purposes, as well as industrial buildings for distribution and fulfillment processes. Construction activity for retail spaces, offices, and hotels, on the other hand, dropped. Survey respondents noted certain obstacles to reaching their construction goals, including accessing materials, obtaining permits, and hiring workers. Office real estate activity shrunk due to remote work Office spaces, in particular, saw a decrease in real estate activity, largely due to an increase in remote work during the pandemic. Even though some people are heading back to the office, vacancy in these spaces continued to increase, reaching 16.4% from 13% in 2021. What's more, 70% of survey respondents said their companies are moving into smaller offices. Vacancy in industrial properties, however, declined to 4.9%. 2022 promises more growth This year may continue to be rocky for the commercial real estate market, with industrial and land investments pulling their weight. Specifically, businesses predict a 5% increase in land sales, a 3% increase in industrial warehouse sales, and a 1% increase in sales of certain types of apartments. By 2022, however, commercial real estate activity is expected to recover across all categories as more businesses reopen, travel resumes, and people return to the office. Still, sales for land and industrial properties are expected to lead this recovery process, proving their value as part of the commercial real estate market.

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REAL ESTATE INVESTMENT

Nuveen Real Estate, Taconic Partners & North American Properties Acquire Ridge Hill Shopping Center

Nuveen | May 06, 2022

Nuveen Real Estate, Taconic Partners and North American Properties have acquired Ridge Hill for $220 million, a mixed-use lifestyle center in Yonkers, NY, with the intention of rebranding and transforming the 74-acre property into the preeminent outdoor lifestyle center serving the northern New York City metropolitan area. Renovation plans for the 1.2 million square foot complex are still in development, but the partners will look to incorporate state-of-the-art initiatives that enhance Ridge Hill's public spaces, street design and parking amenities. They will also draw on their combined network of retailers to attract top-tier local and NYC inspired food and beverage concepts, and national luxury apparel and boutique fitness providers, building on Ridge Hill's existing experiential features to create the leading lifestyle center in the tri-state region. We see this as an attractively priced asset in an evolving sector that fits within our well-diversified New York property focused real estate fund. The acquisition of Ridge Hill reflects a generational opportunity to re-position an already dominant lifestyle center that sits in the heart of one of the country's most affluent and densely populated regions." Nadir Settles, Managing Director at Nuveen and Head of the New York Property Fund "This unique retail asset will be a great addition to our Fund and we look forward to being a part of its successful redevelopment," said Chris Balestra, President and Chief Investment Officer at Taconic Partners. Lifestyle Centers Generating Strong Foot Traffic, Superior Rental Revenues As the retail economy continues to re-open, lifestyle centers may be one of today's most undervalued retail asset classes. Conceived as a modern-day interpretation of the shopping mall, lifestyle centers are characterized by outdoor settings and multiple uses, including office, multi-housing and hospitality in addition to upscale, national-chains and specialty retail. Research has shown the top 20 lifestyle centers in the highest population U.S. markets reported nearly 8.1 million visits in August 2021, compared with 1.3 million visits in April 2020. During 2021's second quarter, lifestyle centers drew 46 percent higher rents than regional malls and 11.5 percent higher rents than super regional malls.1 Developed in 2011, Ridge Hill features a wide variety of local and national retailers, including Apple, Banana Republic, Sephora, H&M, The Container Store, and Uniqlo. The center is also home to LEGOLAND® Discovery Center; a 12-screen National Amusements Showcase Cinema de Lux; Whole Foods; LA Fitness, and several full-service restaurants. Ridge Hill is located at Exit 6A off the New York State Thruway and at the Tuckahoe Road West exit from the Sprain Brook Parkway, making it easily accessible to all residents and visitors from Westchester and Putnam counties and the New York City metropolitan area. Growing Partnerships As a part of the partnership, North American Properties (NAP) will begin operations and repositioning of the property in May 2022. NAP is a boutique, full-service real estate owner/developer notable for projects such as Avalon in Alpharetta, GA; Birkdale Village in Charlotte, NC; Colony Square in Atlanta, GA; and, Newport on the Levee in Newport, KY. The partnership between Nuveen and NAP continues to grow, with Ridge Hill representing their third project together. The partners recently acquired the open-air lifestyle center The Forum on Peachtree Parkway in Peachtree Corners, GA. "Over the last decade, Ridge Hill has become a core component of the Yonkers community and we are thrilled to have the opportunity to enhance it by applying our high-touch, hospitality-driven approach toward management. We coined the term ExperienceMakers for our team years ago because making an impact on the lives of every guest we serve is in our DNA, and we can't wait to introduce ourselves to the market," said Tim Perry, Managing Partner at NAP. "We've already started working to enhance the public realm, bring technology forward in the guest and parking experience, as well as longer term unlocking the full development potential of the site. Helping to design and define this will require community engagement to determine what's missing, from a retail, as well as experiential, perspective." Nuveen Real Estate and Taconic Partners have collaborated since 2015, collectively investing more than $2 billion across over 2 million square feet in New York. The partners completed a $260 million fundraising round for their jointly sponsored value-add New York City Property Fund II in 2021. The acquisition of Ridge Hill reflects the partnership's first investment into value-add retail and an opportunity to diversify beyond its existing life science, office and industrial holdings. Together, Taconic Partners and Nuveen Real Estate will continue to capitalize on unique opportunities to reposition underutilized assets or build best-in-class products for the future. About Nuveen Real Estate Nuveen Real Estate is one of the largest investment managers in the world with $152 billion of assets under management. Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing. With over 85 years of real estate investing experience and more than 725 employees located across 30 cities throughout the United States, Europe and Asia Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise. About Taconic Partners Since 1997, Taconic Partners has acquired, redeveloped and repositioned over 12 million square feet of commercial office and mixed-use space, as well as over 6,500 units of luxury and workforce housing. As a fully integrated real estate company with a keen eye for uncovering value, its diverse capabilities are evidenced by its multifaceted success with luxury properties, as well as adaptive reuse and urban revitalization projects. In New York City, Taconic is currently developing 619 West 54th Street—the Hudson Research Center, 125 West End Avenue, 817 Broadway, 312 West 43rd Street and Essex Crossing on the Lower East Side. The firm also manages various real estate funds on behalf of institutional and pension fund investors. About North American Properties Founded in 1954, North American Properties is a privately held, multi-regional real estate operating and development company that has acquired, developed and managed more than $7 billion of mixed-use, retail, multifamily and office properties across the United States. Rooted in its purpose-driven approach to development, North American Properties is creating great places that connect people to each other; cities to their souls; partners to opportunities; and individuals to experiences that move them. Headquartered in Cincinnati, with offices in Atlanta, Dallas and Fort Myers, Florida, the company has developed 22 million square feet of commercial space and 19,000 residential units in 15 states and 67 cities. In the past three years, North American Properties has launched 36 projects totaling $2.2 billion in total capitalization. In metro Atlanta, North American Properties led the turnaround of Atlantic Station and the ground up development of Avalon. Currently, the company's mixed-use portfolio includes Avalon in Alpharetta, Georgia; Avenue East Cobb in Marietta, Georgia; Birkdale Village in Huntersville, North Carolina; Colony Square in Midtown Atlanta; Newport on the Levee in Newport, Kentucky; Riverton in the New York metro area; and The Forum on Peachtree Parkway.

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Spotlight

Construction, an industry sector that has not evolved over the past 25 years, experience production & demolition processes with a awful ratio of output to inputs. Discover the initial steps towards the creation of regenerative cities.

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