Shelter Growth Capital Partners is exploring the sale of a US portfolio of 18 mezzanine and senior mortgage loans secured by a wide array of commercial real estate, according to sources. The portfolio has a face value of $711 million.
Optimism is growing for some off-campus student housing properties as universities look for ways to promote social distancing and avoid crowding in freshman dorms.
Welltower is selling a $1 billion portfolio consisting of seven senior housing and 29 outpatient medical properties. The REIT has also closed on a sale of six senior housing assets in the Midwest in a $300 million transaction; Welltower will retain minority stakes in some of the properties.
It's "not inconceivable" that a significant percentage of shopping centers should shut down as a result of the pandemic, says Scott Crowe, chief investment strategist at CenterSquare Investment Management. Thousands of tenants are being notified they are in default, and this could cause a ripple effect due to co-tenancy agreements.
The health care and education industries could fuel investment in data centers. These sectors have not been huge sources of data center demand in the past, says CBRE's Pat Lynch, but COVID-19 has increased their need for modern infrastructure, according to Jackson Metcalf with architecture firm Gensler.
Equinix has reached a definitive agreement to acquire 13 Canadian data center sites for $750 million. BCE Inc. is the seller of the portfolio, and the deal could close in the second half of the year.
Many of the world's largest co-working providers have formed an organization called the Workplace Operator Readiness Council, and the group will release a playbook this week with specific steps the industry has agreed to take to promote workplace safety. "You can compete on other things, but you don't want to get sharp-elbowed about health and safety," says Industrious CEO Jamie Hodari.
REIT CEOs emphasized the importance of increased communication in difficult times during a session at Nareit's 2020 REIT Investor Relations Symposium, co-hosted with the New York Stock Exchange. Separately, panelists at the event praised REITs' outreach and transparency during earnings season. "I think we're all a little bit smarter now to tackle this [uncertainty] on a go-forward basis," said Richard Anderson, managing director at SMBC Nikko Securities America.
Demand for high-quality rental homes "actually is surpassing our expectations," as people look to avoid high-density living, says American Homes 4 Rent CEO David Singelyn. In this interview, Singelyn also addresses the REIT's geographic diversity and its joint venture with J.P. Morgan Asset Management, which he describes as an "endorsement of our strategy."
To survive the immediate effects of the pandemic, mall REITs took several steps including furloughs, layoffs and reduced executive compensation and expenses. For their longer-term viability they are implementing such measures as supporting small businesses, changing space uses and selling land for non-retail purposes.
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