The markets are rebounding this year, which could mean a successful initial public offering season, according to Ron Bohlert, the sector lead in real estate at the New York Stock Exchange. The Federal Reserve's stance toward interest rates means REITs are likely to see IPO activity, he added.
Vornado Realty Trust has agreed to sell a 47.2% stake in Manhattan retail properties in the Fifth Avenue shopping district and in Times Square. Vornado, which will keep a 51% stake in the assets, is selling its stake for $1.31 billion to institutional investors advised by Crown Acquisitions.
New York City officials approved a measure Thursday that sets carbon emissions limits and fines for commercial and residential buildings that are over 25,000 square feet and have no rent-regulated units. The legislation, which Mayor Bill de Blasio promised to sign, is meant to reduce emissions by 40% by 2030 and 80% by 2050.
Global Medical REIT has acquired a portfolio of four inpatient rehabilitation facilities from affiliates of CNL Healthcare for $94 million. The properties are in Nevada, Indiana, Arizona and Oklahoma.
First Republic Bank is taking 211,521 square feet at 460 W. 34th St., a 638,000-square-foot office building near Manhattan's Hudson Yards in which SL Green has agreed to acquire a majority stake valued at $440 million. The deal is scheduled to close in May, after which SL Green will start a comprehensive redevelopment program.
With the average sales price for office space in primary cities reaching $439.05 per square foot, according to CoStar, institutional investors are turning to secondary cities, where the average sales price is $222.63 per square foot. "Essentially, cap rates aren't favorable at this point, at least on aggregate, in most primary markets," said Phil Ryan, research manager at JLL.
Ease of access makes Palmer Park Mall in Palmer Township, Pa., an attractive option for shoppers. While the property recently lost its Bon-Ton anchor, sales for other retailers in the enclosed center have jumped including at the onsite Boscov's.
Eastland Mall, which used to be home to large big box stores, has evolved into a locally focused retail location serving Evansville, Ind. The latest tenants are small boutiques that are locally owned and supported by the community.
WGASA has acquired a portion of Christenbury Crossing in Concord, N.C., including a 7,707-square-foot retail building. The property sold for $4 million and has Tacos for Life, Clean Juice and an ABC store as tenants.
A proposed $250 million water park beside the Mall of America in Bloomington, Minn., received a pledge of $7.5 million from city leaders to get the project moving. The money would come from liquor and hotel sales taxes collected in the city.
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