The deal reinforces the appeal of physical stores and will likely bring up the value of centers currently anchored by Albertsons, according to brokers.
Once a niche play, DSTs have drawn the interest of institutional-grade sponsors to offer as an option to retail investors managing their real estate plays.
“We know firsthand from deals we’ve been working on that buyers have pulled back and lenders are more conservative,” says one broker. Nevertheless, the medical office sector is still considered a favored asset class among investors.
Harbor Group International’s David Rosenberg sees an investment opportunity thanks to a disconnect that’s developed between REIT equity prices and underlying net asset values.
While property damage from the storm is already second only to Katrina, the impact to business operations and cargo movement may double or triple total losses. However, logistics providers are getting better at minimizing the scale of disruption.
Institutional investors favor multifamily and industrial, but they are investing across the spectrum of risk profiles and showing an interest in non-gateway markets and alternative property sectors.