New Orleans loses about 40% of its drinking water because of aged, leaky pipes and has been ordered by federal officials to fix its sewer system. The city's Sewerage & Water Board plans to spend $347 million next year to fix pipes, drainage canals and pumping stations. Residents saw a 10% increase in sewer and water rates last year, something that will continue until 2020 to fund $2.6 billion in capital improvements during the next decade.
Commercial and multifamily mortgage debt rose by $24.5 billion in the second quarter, with $10.9 billion of that attributed to the multifamily sector, according to the Mortgage Bankers Association. The overall rise in debt was attributed to a strong appetite among investors, including pension funds and REITs.
Columbia Property Trust is planning to list shares on the New York Stock Exchange in October under the symbol CXP. The company said it will purchase as much as $300 million of its newly issued common shares.
Multi-Employer Properties Trust has sold Burlington Centre in Burlington, Mass., for $109 million. The buyers of the 47-acre master-planned office campus are a joint venture of the Davis Cos. and Principal Real Estate Investors.
REITs may slow down their pace of acquisitions for the remainder of the year even as they have expanded transaction activity from 14% to 20% year over year during the first six months of 2013, according to EY's annual global REIT report. "[M]any REIT teams see challenges ahead in identifying suitable targets, both in terms of the quality of asset and pricing," Howard Roth, EY’s global real estate leader says.