1. Canada Pension Adds Student Housing with Joint Venture “Canada’s largest pension-fund manager made its first foray into U.S. student housing, forming a joint venture with the Scion Group LLC and Singapore’s GIC Pte. to purchase a group of properties for $1.4 billion. Canada Pension Plan Investment Board and its partners acquired University House Communities Group Inc., through a subsidiary of the joint venture, from InvenTrust Properties Corp., according to a statement Monday.” (Bloomberg)
  2. What Markets are Totally Missing about Inflation and Interest Rates “After months of media hysteria and several head fakes, the Federal Open Market Committee finally raised interest rates in December. Markets appear to be quite sanguine about this turning point in monetary policy. This is mostly because inflation has been very subdued lately and the FOMC has made assurances the pace of future increases will be gradual. In fact, the anemic performance of inflation over the last year seems to have lulled markets into a false sense of complacency around inflation risks and the threat of interest rates rising sharply.” (The Street)
  3. U.S. Real Estate to Draw More Foreigners in 2016, Survey Says “Most foreign investors expect to put more money into U.S. property this year than they did in 2015, with New York remaining the top target market worldwide, according to a survey by the Association of Foreign Investors in Real Estate. Sixty-four percent of respondents said they intend to make modest or major increases to investments in U.S. real estate this year, while 31 percent expect to maintain their holdings or reinvest sales proceeds into other U.S. assets, according to the 24th annual survey by the group, known as AFIRE.” (Bloomberg)
  4. New Year’s Pledge: Automatic Wealth through Rental Real Estate “I love real estate. It's not without its problems, but it's the best way I've found to accumulate a good deal of wealth on a part-time basis. In the many years I've been actively investing in real estate, it has given me returns much better than the stock market. In fact, my average return has been between 5% and 8%, without leverage. When I use bank financing, those numbers are in the 12%-15% range. I've tried all sorts of real estate investing.” (Daily Wealth)
  5. Will Macy’s Cut Any Hometown Stores? “Macy's is taking a hard look at its real estate portfolio, including nearly 800 stores nationwide, as it seeks appease impatient shareholders concerned about sliding retail sales. The Cincinnati region's seven Macy's stores won't escape scrutiny, as the Downtown-based retailer decides what 40 stores it plans to shutter in early 2016. The move, for which details could be revealed as early as this week, is part of the company's plan to eliminate weaker performing stores and make its operation more efficient.” (Cincinnati.com)