- Public Storage to acquire Simply Self Storage for $2.2 bln “Demand for storage space has waned from the heights of the pandemic, as people return to offices, and some analysts expect more consolidation in the sector. The acquisition reflects Public Storage's continued execution of its opportunistic growth strategy, the company said, adding it will deepen its presence in fast-growing markets.” (Reuters)
- REIT Trends in Property Sector Allocations by Actively Managed Real Estate Funds “In a recent analysis of quarterly data, Nareit looked at the 28 largest actively managed real estate mutual funds and how their allocations have changed from the beginning of 2010 to the first quarter of 2023. The funds have $44 billion in assets under management as of the first quarter of 2023, and 96.6% of assets were in REITs.” (Nareit)
- Is Work-from-Home Threatening Commercial Real Estate and U.S. Banks? “This figure conceals a two-pronged situation: on the one hand, in category A buildings, the average rate is 15.9%, while in category B buildings, it is 22.7%. On the other hand, some cities have rates as high as those in the U.S., including 32% in Calgary, 25.7% in London, and 23.3% in the Waterloo region.” (Morningstar)
- New REITs Proliferate in Anticipation of Further Decline in Property Values “Four major investment firms have taken steps this month to set up nontraded real estate investment trusts so they can swoop in when property values finally adjust to a new economic reality of significantly reduced prices.” (CoStar)
- Company behind KW Advisors files for Chapter 11 “R&LS Investments, helmed by Rick Cunningham, filed for voluntary protection from creditors in U.S. Bankruptcy Court’s Central District on July 18. In the filing, the company states it owes less than $7.5 million, but the estimated assets are between $500,000 and $1 million.” (The Real Deal)
- CrowdStreet Seeks Takeover Of Another Nightingale Asset As Fraud Concerns Spread “CrowdStreet is seeking to appoint an independent manager to take over the entity that controls 200 West Jackson Blvd., a 480K SF office tower in downtown Chicago for which Nightingale raised $25M on the platform to acquire last year.” (Bisnow)
- Student Housing Sector Poised for Strong School Year “The universities that have struggled with rent growth faced both a decline in enrollment in fall 2022 as well as an increase in new supply. This includes the University of Southern California, with annual rent growth at -11.8% This is attributed to a 0.8% loss in enrollment as well as the completion of Hub LA Coliseum, which added 230 beds last year.” (Multifamily Executive)
- The 23 Cities With The Most Expensive Rent in America, Ranked “Cities are ranked by their affordability rank from the report, which largely corresponds to the percentage of renter households that paid 35% or more of their gross income on rent in 2020. Only the 23 cities where at least 40% of households pay 35% or more of their income on rent are included.” (24/7 Wall St)
- Report: Investor Interest in SFR Ebbing “Investor interest in the single-family rental market is waning, especially in places where the sector has been the strongest, according to a new report from First American Financial Corp.” (Multi-Housing News)
- Opportunities Open Up for Investors Looking for CRE Distress “This presents a unique and interesting opportunity for astute distressed investors, who are experienced in acquiring mortgage notes secured by commercial property and in the arduous foreclosure and bankruptcy process, which may follow, to obtain a clean title to the property.” (GlobeSt.com)
- Commercial Property Distress Hits $71B In Q2, Led By Office “The total amount of distress increased by just over $8B from the first quarter. Not since the pandemic panic of Q2 2020 has distress grown by as much in a single quarter, the company reported. The second quarter also marked the fourth consecutive quarter in which distress increased.” (Bisnow)
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