Phoenix-based Vestar recently spent $125.5 million to buy about 65 percent of Orchard Town Center in Westminster, Colo., from Forest City Enterprises Inc., and the buyer plans to upgrade, rebrand and expand the open-air retail property.
Cincinnati emerged as one of the most desirable secondary industrial markets in 2013 due to increased foreign investment, its central location and a pro-business atmosphere, pushing the region to nearly 5.2 million sq. ft. of absorption in 2013 and shutting off availability almost entirely in some submarkets.
The success of the U.S industrial market has attracted major attention for new distribution centers and manufacturing facilities. It's also generated interest from foreign investors, particularly Canada and South Korea.
In terms of supply and demand, the U.S. office market will hit its sweet spot in 2014. A strengthening economic rebound, coupled with still-constrained construction, will result in increased absorption and higher rents, according to recent market reports.
KBS Real Estate Investment Trust III recently made a big bet in the Chicago market, closing the purchase of the 1.5-million-sq.-ft. Citigroup Center building, which sits atop the Ogilvie train station in the city’s West Loop, for $425 million.
The flurry of large acquisitions by U.S. REITs in the United Kingdom continued through 2013, most recently with the Griffin-American Health Care REIT II purchase of a 44-property portfolio for $472.2 million. There are signs that, going into 2014, there may not be any more deals to make across the pond for some time—there are just not many quality portfolios left.
Memory care seniors housing has, as they say, “unfortunately” become one of the biggest business models in commercial real estate today, and the recent G8 Dementia Summit recognized that the increasing demand for better dementia care and facilities must catalyze investment at the global level.
With the expected demand surge for medical office in the next few years, developers such as Duke Realty say a major trend for medical office this year would be the buy-up of vacant retail property for renovation, particularly the ghost buildings that defunct chains vacated due to the recession and obsolescence.
Most mall companies such as Simon Property Group, Taubman, Macerich and General Growth Properties (GGP) are already well into five-year plans of perfecting ways to conserve water and recycle waste, as well as using centralized management systems to save electricity and generate energy.
Ivanhoe Cambridge, a subsidiary of a large Canadian institutional fund, has partnered with Callahan Capital Properties to continue its large bet on the Chicago market, recently closing the $361 million purchase of Riverside Plaza in the West Loop.