- Why Barrack, Sternlicht Joined Forces in U.S. Home-Rental Merger “By combining, Starwood Waypoint and Colony will gain ground on Blackstone Group LP, with its roughly 50,000 houses, and American Homes 4 Rent, the biggest publicly traded home-rental real estate investment trust, with more than 37,000 properties. They estimate cost savings of $40 million to $50 million and greater benefits from scale in places like Florida, where it will have about 10,000 homes.” (Bloomberg)
- Managers Expecting Lower Returns from Real Estate Sector “At this later stage in the real estate cycle, investors are even more selective in view of an expectation of lower returns in the future, which is adding further momentum to the mergers and acquisitions trend, real estate managers say. As the real estate investment cycle matures, Deutsche Asset & Wealth is recommending more of a portfolio weighting toward office and industrial.” (Pensions & Investments)
- It Looks Like the Next Recession Will Start in March 2019 “S&P 500 forward earnings is highly correlated with the US index of coincident economic indicators (CEI). The latter rose to another new record high during August. Previously, I have observed that based on the past five cycles in the CEI, the next recession should start during March 2019. That’s not based on science, but rather on a simple average of the length of the previous expansions once the CEI had rebounded back to its previous cyclical peak.” (Business Insider)
- Trump, Bush Attack Tax Break, But Not GOP Lawmakers “Donald Trump and Jeb Bush might be against them, but advocates for the so-called carried interest tax break believe they’re safe – for now. GOP lawmakers currently are showing no interest in including one of Wall Street’s favorite tax breaks in looming budget negotiations, despite new pleas from Democrats and the opposition from perhaps the two most prominent Republican presidential candidates.” (The Hill)
- The Rent Crisis Is About to Get a Lot Worse “The number of U.S. households that spend at least half their income on rent—the "severely cost-burdened," in the lingo of housing experts—could increase 25 percent to 14.8 million over the next decade. More than 1 million households headed by Hispanics and more than 1 million headed by the elderly could pass into those ranks. Households shouldn't spend more than 30 percent of income on housing, by the general rule of thumb.” (Bloomberg)
- GE Capital Sheds Sizeable Mortgage Portfolio “GE Capital has sold a national portfolio of performing, sub-performing and non-performing mortgage loans with an unpaid principal balance totaling $2.3 billion, it was announced Monday by CBRE Capital Markets’ National Loan Sale Advisory Group, which was the exclusive advisor to GE Capital. The portfolio consisted of 313 loans secured by more than 450 properties throughout the United States.” (Commercial Property Executive)
- Five Floors of Midtown Building Sell for $36 Million “A partnership between MRP Realty and Long Wharf Real Estate Partners has purchased a midtown office condo for $36.25 million. The pair is buying the 55,000-square-foot space at the base of a new 47-story residential condo property that real estate investor Joe Chetrit is constructing at 135 W. 52nd St. They are buying the space, which covers floors two to six and will have its own entrance and lobby on the ground floor.” (Crain’s New York Business)
- InterContinental Share Price: Hotel Group Closes In On 1.9Bn Pound Acquisition “The InterContinental Hotels Group (LON:IHG) is closing in on a £1.9 billion deal to buy Canada-based rival Fairmont, the Sunday Times has revealed. According to inside sources cited by the newspaper, the blue-chip company is likely to seal the deal within weeks.” (Invezz)
- Westbrook, Invesco Eye Position in Huge Brooklyn Property “Westbrook Partners and Invesco Real Estate are among the investors bidding on a massive industrial building near the Brooklyn Navy Yard in a deal that could value the property north of $300 million. The institutional investors are vying for what is most likely a minority stake in 47 Hall Street, a 550,000-square-foot warehouse in Clinton Hill owned by partners Bruce Federman, Rubin Schron’s Cammeby’s International and Eli Fruchthandler , sources told The Real Deal.” (The Real Deal)
- King Street, Carlyle Invest in Beantown Suburb “The big boys bring the big bucks to Boston. A joint venture involving affiliates of King Street Properties and Carlyle Realty Partners VII L.P., have acquired 830 Winter St., a premier office/lab property in Waltham, Mass., and commercial real estate services provider HFF, helped the team close the deal by arranging approximately $74.2 million in first mortgage financing for the $104.2 million purchase.” (Commercial Property Executive)
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