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16 Jun, 2023
By Karl Angelo Vidal
S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.
Warehouse rent growth for several markets along the US East Coast has been positive year to date through May despite slowing demand, according to Jefferies analyst Jonathan Petersen.
Eastern and central Pennsylvania saw the highest year-to-date rent growth at 10.0%, while Atlanta saw a 7.3% improvement, Petersen said in a June 14 research note. Los Angeles recorded the biggest year-to-date market rent decline at 6.3% in May, followed by Phoenix and Houston where rents declined 4.3% and 2.7%, respectively.
In the top greater Los Angeles submarkets, South Bay had the largest rent decline at 25.3%. Other submarkets saw single-digit rent declines ranging from 1.9% to 7.3%.
CHART OF THE WEEK: US equity REITs' average short interest up in May
⮞ US equity real estate investment trusts in May booked an 11-basis-point increase in average short interest to 3.7% of shares outstanding.
⮞ Across all property types, the energy infrastructure segment tallied the biggest gain with 73 basis points from the month prior to 1.7% of shares outstanding.
⮞ The advertising sector had the biggest decline, with short interest falling 62 basis points from a month prior to 2.7% of shares outstanding.
Property trades
– Alexandria Real Estate Equities Inc. sold five life science properties in Cambridge and Waltham, Mass., to a joint venture of Anchor Line Partners LLC and Alloy Properties for an undisclosed amount, according to data from S&P Global Market Intelligence. The transaction involved assets spanning approximately 425,000 square feet across the Boston area.
– Northview Fund agreed to buy three multifamily portfolios across Canada for about C$742 million. The fund will buy more than 3,300 multifamily suites and 119,000 square feet of commercial space from Starlight Investments, KingSett Capital-managed funds, DD Acquisitions Partnership and two institutional investors.
– The Moinian Group Development Corp. is selling an apartment tower in Miami for about $300 million, The Real Deal reported June 14, citing sources. The 42-story Bezel building at the Miami Worldcenter complex comprises 434 units and was completed in 2021.
Financing for NY projects
– A joint venture between Property Markets Group Inc. and The Carlyle Group Inc. secured $520 million in capitalization for the construction of a two-tower mixed-use community in Brooklyn. The 21-story Sackett Place and Society Brooklyn towers will have 517 residential units and 10,000 square feet of retail space and are set to open in 2025.
– Innovo Property Group secured $354 million in debt provided by Axos Bank and Cerberus Capital Management for an industrial development in Queens, Commercial Observer reported. The warehouse facility at 28-90 Review Avenue is set to be completed in 2025.
– Lonicera Partners and Rabina Properties LLC secured a $128 million loan and joint venture equity for a luxury multifamily development in Brooklyn, Commercial Observer reported. The property at 55 Willoughby in the borough's downtown will total 268,000 square feet and comprise 295 units and 3,500 square feet of retail space.
See key people moves in North America real estate.
Median implied cap rate for US REITs inflates another 45 basis points in Q1 2023
REIT Replay: REIT share prices tick upward during week ended June 9