| IN THE June 6, 2011 ISSUE |
Institutional Investors Lead 2011 Retail, Office Buying Wave
| By Ben Johnson, NREI Contributing Writer |
As we approach the halfway mark of 2011, institutional investors have increased their appetite for commercial real estate, overtaking publicly traded real estate investment trusts (REITs) as the leading purchasers of retail and office properties in the first quarter of 2011.
Institutions pumped nearly $14 billion into the retail sector from January through April of this year, according to New York-based real estate research firm Real Capital Analytics. That compares to just $3.2 billion invested in retail properties for all of 2010.
In particular, institutional investors grew their share of the single-tenant retail market from just 5% for all of 2010 to a 25% market share in the first four months of 2011. Their acquisitions totaled $427 million from January through April compared with $161 million for all of last year.
Mexico Is Rife With Opportunity for Farsighted Real Estate Investors
| By David Lynn, NREI Contributing Columnist |
The Mexican economy grew 5.5% in 2010, higher than the general consensus predicted. Following a 6.1% decline in 2009, the 2010 growth rate was the strongest showing since 2000.
During the fourth quarter of 2010, gross domestic product (GDP) grew at an annualized rate of 4.4%, exceeding the pre-recession peak of total output achieved in the second quarter of 2008.
With the United States accounting for 80% of Mexican export sales, growth in the Mexican economy remains closely tied to U.S. performance. Strong GDP growth in the U.S. during the second half of 2010 was largely responsible for Mexico’s surprise performance.
PCCP Provides $23.2 Million Loan to Acquire and Redevelop Office Condo in Washington, D.C.
A $23.2 million senior loan commitment from PCCP LLC (formerly Pacific Coast Capital Partners LLC) has paved the way for the acquisition and redevelopment of 2055 L Street NW, an office condominium located in Washington, D.C.’s central business district (CBD).
The borrower/property owner is a joint venture between Monument Realty and Angelo Gordon & Co., which acquired the asset in December 2010 in an all-cash deal. PCCP’s financing will replace equity used for the acquisition.
The loan also will enable the joint venture to begin a six-month rehabilitation of the 102,000 sq. ft. condominium office portion of the seven-story, 237,000 sq. ft. building.
Rexford Industrial Fund V REIT Acquires 48,350 Sq. Ft. Building Leased to Los Angeles Times
Rexford Industrial has acquired a 48,350 sq. ft. industrial building in Pasadena, Calif. for $5.1 million. The facility is 100% leased to The Los Angeles Times. The all-cash purchase is for the firm’s Rexford Industrial Fund V REIT.
“This acquisition aligns with our strategy of acquiring stabilized and value-add industrial properties in strong infill markets,” says Howard Schwimmer, co-founder and senior managing partner of Rexford Industrial, a privately held real estate firm based in Los Angeles.
Rexford operates a portfolio of more than 5.5 million sq. ft. of industrial property and seeks to purchase more than $500 million in infill markets throughout Los Angeles, Ventura, Orange and San Bernardino counties.
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