Government Properties Income Trust is acquiring Select Income Real Estate Investment Trust and intends to rename the combined REIT Office Properties Income Trust. Once the deal closes, the renamed company plans to sell up to $750 million in properties.
Institutional buyers of single-family rental homes are using machine learning and other proprietary technology provided by such companies as Entera Technology to assess thousands of potential homes and identify the ones that best meet their criteria. "The financial crisis created a catalyst for a lot of institutional capital and minds to tackle the opportunity, but technology is what really transformed this into a business," Amherst Residential President Drew Flahive says.
Contrarian investor Dan Rasmussen, founding partner of Verdad Capital, is bearish on three popular asset classes: private equity, venture capital and private real estate. He excludes the REIT from that list, calling it "a pretty efficient asset class, since rental income is a fixed contract."
Office REITs may start to see merger-and-acquisition activity as investors continue to place capital and are drawn to the discounts at which REITs are trading, some experts say. There are reasons why demand for office assets might remain muted, according to Danny Ismail, an analyst at Green Street Advisors, who pointed to the low returns offered by office assets, among other factors.
Palisades Village, a 125,000-square-foot outdoor development located along Sunset Boulevard in Los Angeles, will compete head-to-head with Westfield Corp.'s updated Century City mall and Taubman Centers' Beverly Center. Palisades Village, which is being developed by Rick Caruso, will differentiate itself in a number of ways, including a focus on small-scale retail.
Ares Management is selling its stake in the Gaylord Rockies Resort and Convention Center project underway in Aurora, Colo., to its JV partners Ryman Hospitality Properties and RIDA Development. The transaction values the property, which is set to open shortly, at $900 million.
Amazon is launching a subset of its websites called Amazon Storefronts. It aims to promote nearly 20,000 small- and medium-sized US businesses, allowing customers to search for products in 25 categories and company owners to share their stories with customers through videos.
Bengaluru, India-based Prestige Estates Projects says it's planning to aggressively acquire retail centers in Mumbai and Pune. It aims to purchase properties with 800,000 to 1 million square feet of retail space and plans to have 13 locations across seven cities by 2020.
A 51,642-square-foot mall space in Holyoke, Mass., will be transformed into a Round1 Bowling & Amusement to open in early 2019. The facility will feature a 16-lane bowling alley, an arcade, karaoke, and food and beverage options.
Sears will continue closing underperforming stores after shuttering 384 locations over the past year, as it continues to work to turn around sliding sales and profits. "[W]e are hopeful that we can stabilize our store base at a meaningful level in the near future," Chief Executive Edward Lampert said.
- Page 1