| IN THE June 8, 2011 ISSUE |
REITs Ramp Up Acquisitions as Portfolio Fundamentals Improve
| By Elaine Misonzhnik, Retail Traffic Associate Editor |
Publicly traded REITs continue to lead the recovery in the commercial real estate sector judging from the presentations made at this week’s NAREIT conference in New York City.
Last year, most companies were focused on shoring up portfolio metrics and getting rid of non-core assets. Today, the focus for many REITs has switched to making opportunistic acquisitions, particularly through off-market transactions with private owners.
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.
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.
Hines’ Pan-European Core Fund Acquires Schlossstrasse 20, a Retail Property in Berlin
Hines Pan-European Core Fund (HECF) has acquired Schlossstrasse 20, a retail property with ancillary office space in Berlin, from the German developer Sedlmayr-Investa Immobilien GmbH. The corner building, located in the Berlin borough of Steglitz, was completed in 2010 and comprises 6,250 square meters (67,274 sq. ft.) on six floors.
The retail part of the property is 100% leased to SportScheck, a major German sporting goods retailer, and serves as their Berlin flagship store. Hines Immobilien GmbH assisted in the acquisition process and will be responsible for asset management. Kemper’s Jones Lang LaSalle Retail GmbH acted in an advisory capacity.
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.
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