DAILY READS: DEC. 31, 2019
- Dec 31, 2019
“According to (WashREIT’s President and CEOO Paul) McDermott, with the sale, WashRIET has reduced its exposure to single tenant assets from 26 percent to 7 percent of office square footage over the past two years which supports its strategy to improve its risk profile and strengthen cash flows and FAD growth.”
“’Since the rent laws changed, the majority of the multifamily buildings we have sold or put under contract have had a smaller component of rent regulated units and those with a larger rent regulated component are trading at lower metrics,’” said (Marcus & Millichap National Multi Housing Group senior director Matt) Fotis.
—Real Estate Weekly
There’s been a series of recent high-end closings, including some in the $60 million range, at the new 70-story development, but a number of those deals had been in the works since 2015. For instance, hedge funder Daniel Och recently closed on his $93 million penthouse, a deal that also had gone into contract more than four years ago.
—The Real Deal
“I’ve met many investors who believe that the smart way to enter the multifamily market is to start small and then “graduate” to buying larger multifamily properties. From my experience, that is a misconception that should be addressed because it prevents those investors from enjoying the many benefits associated with larger multifamily assets. I skipped the small multifamily properties and single-family homes and went straight to large multifamily properties, and I have learned that these are the three most common misconceptions that prevent others from doing the same.”
“The Pinecrest-based commercial real estate agency MMG Equity Partners listed this year’s top 25 transactions of commercial centers across South Florida based on sales volume. Low interest rates meant buyers were willing to pay higher-than-average prices, said Marcos Puente, the director of acquisitions at MMG Equity Partners. With low interest rates expected to continue in 2020, he said, shopping centers will continue to sell at similar prices.”
“’Seniors used to move into senior housing in their 70’s and now they aren’t moving until into their 80’s. So developers need to be astute to that,’” says Laura Dietzel, partner and real estate senior analyst at RSM, an audit, tax and consulting services firm, tells GlobeSt.com. “’Due to current technology which an adult child can use to monitor the day-to-day life of their elderly parents, developers certainly have a problem in the short term.’”
“2020 will inevitably bring with it more bankruptcies, analysts say. But the filings from the likes of Payless ShoeSource, Destination Maternity and Shopko in 2019 also have their own consequences for the coming year.”
“In this age of rising rents and social isolation, the economics and built-in community aspects of roommate living hold an undeniable appeal, a fact not lost on developers. So it’s no wonder Boston’s most anticipated residential projects — including 7INK, the seventh and final building under construction at Ink Block in the South End — are slated to include co-living rentals.”