- Blackstone Raises $2.6 Billion for Real Estate Secondaries Deal “Blackstone has finished fundraising for its largest vehicle yet dedicated to acquiring stakes in funds of other private investment firms focused on real estate and aims to take advantage of a growing need for cash among investors in the sector. The New York-based private-equity firm collected $2.6 billion for its Strategic Partners Real Estate VIII fund and related vehicles, around 37% more than the $1.9 billion raised for a predecessor program that wrapped up in 2020, the firm said.” (The Wall Street Journal)
- Overdue Office Loans Are New Pain Point for Banks in FDIC Report “Bank profits fell in the third quarter despite the booming economy, according to data from a top US regulator, which flagged risks that include inflation, rising interest rates, geopolitics and a shaky office real estate market. The Federal Deposit Insurance Corp. said Wednesday in its Quarterly Banking Profile that the 4,614 banks it supervises are financially strong as a group, and profits are still historically high, even with the period’s 3.4% decrease from the prior quarter to $68.4 billion. The agency’s watch list of the weakest lenders rose by one to 44.” (Bloomberg)
- Adams Administration Backs Related Signature Bank Bid “New York City Hall backed a bid submitted by Related Fund Management, the Community Preservation Corp. and Neighborhood Restore.” (The Real Deal)
- Cold Storage Giant Looks to Go Public “One of the largest owners of cold storage real estate is reportedly preparing an initial public offering that could be one of next year's biggest stock market splashes. Michigan-based Lineage Logistics, which owns 400 temperature-controlled facilities amounting to 2 billion cubic feet globally, could go public as early as the first half of 2024 and is eyeing a $30B valuation, Bloomberg reported, citing anonymous sources.” (Bisnow)
- Invesco Real Estate Buys Minority Stake in Faropoint “Invesco Real Estate (IVZ) has inked a strategic investment with Faropoint aimed at scaling its industrial portfolio into more last-mile warehouse properties. The deal announced Wednesday involves Invesco Real Estate acquiring an undisclosed minority stake in Faropoint’s platform. The transaction was led by Andrew Lane, senior director at Invesco Real Estate.” (Commercial Observer)
- Jeff Bezos-Backed Real Estate Company Is Launching a New Fund to Acquire More Single-Family Homes Across the U.S. “Many of the world’s largest investment firms have launched new funds over the past couple of years aimed at acquiring or building single-family homes to use as rentals. This comes as no surprise considering that the increased cost of buying a home has forced many Americans into being tenants instead of homeowners. Arrived, a young real estate company backed by Amazon.com Inc. founder Jeff Bezos, has just announced its entry into the single-family rental fund space. Arrived currently operates a fractional real estate investing platform that has attracted nearly half a million retail investors since its launch in 2021.” (Benzinga)
- CRE Pricing Forecast Is Down, Down Down “To summarize Colliers’ Q3 capital markets snapshot is done by looking at one graphic. Their quarterly pricing forecast for office, industrial, multifamily, retail, and hospital is down, down, down, down, and down. The company explained the overall results through a number of factors.” (GlobeSt.com)
- He Bought a Piece of the Chrysler Building. Now His Empire Is Falling Apart. “The property slump sweeping the globe has claimed a new high-profile victim: René Benko, an Austrian-born retail and department-store magnate who also co-owns New York’s Chrysler Building. Benko’s main holding company, Signa Holding, said Wednesday it is filing for insolvency in Austria. The move, similar to U.S. bankruptcy procedure, puts billions of dollars of company debt at risk and casts uncertainty over a property empire that includes stakes in the largest department store chains in Europe, upscale British retailer Selfridges and a now-stalled Hamburg tower that would have been among the tallest in Germany.” (The Wall Street Journal)
- Another Month of Negative Multifamily Rent Growth “According to Apartment List, November marks the fourth month that multifamily properties have seen negative growth in the national median rent: down 0.9% month over month to $1,340. Low demand during the holiday season likely means that rent growth will continue its downward path for another month or two. Year-over-year growth is at -1.1%.” (GlobeSt.com)
- SEC Says WeWork Options Plot Failed on Botched Press Release “The US Securities and Exchange Commission accused a strip mall owner of a botched attempt to profit by manipulating the price of WeWork Inc. shares and using client funds to pay for his lavish lifestyle. The real estate investor, Jonathan Larmore, was behind an entity called Cole Capital that made an offer to buy WeWork stock at a large premium earlier this month, in the days before the coworking company filed Chapter 11 bankruptcy. The move briefly sent the shares soaring, according to the SEC complaint filed in Arizona.” (Bloomberg)
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