American Realty Capital Properties' acquisition of Cole Real Estate Investments earlier this year is giving the REIT a boost, thanks to asset manager Cole Capital's broker-dealer network. Cole Capital is expected to raise $3.1 billion of equity and acquire $4.9 billion of real estate assets.
Businesses with appreciating real estate assets are increasingly looking to unlock and redeploy that value, and buyer demand for these deals is strong, said Phillip Owens, vice president with Green Street Advisors' advisory and consulting team. American Reality Capital's deal to acquire Red Lobster assets is one example. "[T]here's about four times the capital in the space today, as there are deals to go around," he said.
A hypothetical 40.5% decline in Asian emerging-market equities is part of a scenario the U.S. Federal Reserve will use to test the resilience of six leading U.S. banks deemed systemically vital. The test also includes a 29.4% plunge in U.S. stocks and envisions high volatility in foreign-exchange markets, sovereign credit, private equity portfolios and commodities as well as 11.25% unemployment and a 25% drop in housing prices.
Lehman Brothers Holdings' bankruptcy filing has left a murky outlook for its real estate holdings in the Washington region. The uncertainty could affect the future sales of Lehman's commercial buildings. "D.C. was certainly one of [Lehman's] main targets," said Dan Fasulo, managing director at Real Capital Analytics.