September 3, 2014

Wednesday Wrap: Sept. 3, 2014

Each Wednesday, The Wrap presents a compilation of recent noteworthy commercial real estate stories from a variety of publications. Below are links to five stories that caught our eyes in recent days.

Commercial Real Estate Executives Eyeing Secondary Markets, Mid-Tier Assets, Survey Shows by Sarah Borchersen-Keto of

Key excerpt:

“According to the survey, 25 percent of executives expect to invest in class-A assets located in primary markets this year, down from 48 percent in 2013. At the same time, investment in class-A assets in secondary and tertiary markets is expected to rise to 16 percent, up from 12 percent the previous year. Investment in class-B and class-C assets is forecast to increase to 14 percent from 3 percent in 2013.”


Summer Surge for Apartment Stocks: Are They Overheated? by Diana Olick of

Key excerpt:

“‘We are not worried about supply,’ said Alexander Goldfarb, a REIT analyst with Sandler O'Neill. ‘Right now we have homeownership rates depressed, as renters are still hesitant to move out to buy homes, and thus the demand for apartments continues to grow. Additionally, banks and lenders remain cautious on construction lending, and apartment developers are driven by economics. If they can't make the numbers pencil, they won't build.’”


Foreign Investment in U.S. Real Estate Widely Underreported by Real Estate Weekly.

Key excerpt:

“However, despite the focus on foreign investment and the splashy headlines, the media have only managed to report on the tip of the iceberg – the actual amount of foreign capital pouring into U. S. real estate is vastly underreported. Data companies such as Real Capital Analytics look primarily at deed transfers to determine transfers to foreign investors, and therefore typically miss the substantial investments by foreign investors who partner with domestic operators.”


NAR Forecast for Commercial Real Estate Remains Positive by Darren Currin of The Journal Record.

Key excerpt:

“‘In their quarterly commercial real estate forecast, Lawrence Yun, NAR chief economist, says after many false starts, the economy finally appears to be turning a corner to firmer ground. ‘The job market has been the bright spot of the economy this year as employers are feeling more confident about their growth prospects and adding to their payrolls,’ he said. ‘This gradual turnaround from being overly cautious to more optimistic should slightly boost the demand for leasing and purchase activity as well as new construction projects in the upcoming year.’”


Non-Listed REITs by CPExecutive.

Key excerpt:

“As fall approaches, supersize deals are starting to show up on the real estate calendar. Before the year is out, NorthStar Realty Finance Corp. expects to close on its $4 billion acquisition of Griffin-American Healthcare REIT II Inc., a non-traded vehicle co-sponsored by American Healthcare Investors and Griffin Capital Corp. Also scheduled for a fourth-quarter closing is Ventas Inc.’s $2.6 billion acquisition of American Realty Capital Healthcare Trust Inc., which was announced in June.”

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