HCP confirmed this month that Apollo Global Management is the investor acquiring its 22-asset portfolio managed by Brookdale Senior Living. A source says that Apollo plans to invest further in this asset class and that it plans to bring in a new operator or operators.
Convene, which debuted nine years ago to provide conference and meeting spaces, is beginning to provide short-term, flexible office space, challenging WeWork in this area. These companies and others are having a significant effect on the office market, and JLL predicts that flexible space could take as much as 30% of office space demand by 2030.
As new self-storage supply comes online, developers are reducing rents to stay competitive, according to Yardi Matrix. Demand is still robust, and occupancy rates remain strong even in overbuilt markets.
C&R Elton Hills has purchased a 10,741-square-foot retail center in Rochester, Minn., for $2.67 million; the center is home to a GameStop. In addition, the recently vacated Trade Mart Furniture Center in the city has been sold to WSP Rochester for $1.95 million and is likely to become a self-storage facility.
E.B. Development is still working to develop a 50-acre site in Columbia, S.C., into a retail destination, and modifications to the initial plans are likely due to changing consumer habits. The current plan is to use the 170,000 square feet for about 60 retailers, as well as family-oriented entertainment centers, restaurant space, a brewery and a hotel.
A 5,146-square-foot retail center in Lee's Summit, Mo., has been purchased for $2.8 million by a 1031 exchange buyer represented by Marcus & Millichap. The property features Aspen Dental and The Good Feet Store.
Retailers fared better than expected in the first half of the year amid higher consumer confidence and low unemployment, prompting NRF to raise its forecast for 2018, NRF President and CEO Matthew Shay said. The forecast now calls for sales growth of at least 4.5% this year, up from an earlier prediction of between 3.8% and 4.4%.
Treasury Department data show the US government's budget deficit rose 21% to $684 billion in the first 10 months of fiscal 2018, compared with $566 billion during the same time frame in fiscal 2017. One factor behind the increasing deficit is that government spending has risen while business and individual tax rates have decreased.
The Committee on Foreign Investment in the US reportedly has informed China's HNA Group Co. that it must sell its stake in Manhattan's 850 Third Ave. office tower, which houses a police precinct that protects Trump Tower, sources say. HNA acquired a 90% stake in the building in 2016, valuing the 21-story property at $463 million.