High Caliber Karting and Entertainment will open a location in a 76,000-square-foot space at Meridian Mall in Okemos, Mich. Scheduled to open by the end of summer, the facility will feature two race tracks, arcade games, ax-throwing lanes, and a bar and bistro.
The 17,833-square-foot Gelson's Market in West Hollywood, Calif., has been sold to Safco Capital for $25.3 million. The sale-leaseback transaction includes the 1.3-acre lot.
Target stores are selling a growing roster of brands including Casper, Quip and Harry's, which began life as online-only offerings but are now pursuing new channels for sales growth. The brands come with established loyal fan bases, and other retailers including Nordstrom and Walmart are also expanding efforts to attract direct-to-consumer brands.
Colony Capital has launched an index in REITs' common stocks and has created a real estate mutual fund managed by DoubleLine Capital. Bill Hughes, portfolio manager and head of liquid strategies at Colony, says the strategy is based on the idea that "quality real estate assets, financed conservatively, will outperform over time."
Eldorado Resorts and Caesars Entertainment are said to be exploring a merger. Investor Carl Icahn has been urging Caesars to sell itself.
Sources report that ARA Asset Management will list its US hotel properties in Singapore in a REIT, which could bring in $500 million. The IPO, which the sources said could value ARA at more than $700 million, would be Singapore's largest this year to date.
BlackRock is making the case that investors in private equity, real estate, infrastructure and other illiquid alternatives earn a premium because of the assets' complexity rather than the fact that they are illiquid assets. Investors have assumed there is a premium because these are less liquid markets and because they are exposed to liquidity risk, according to Jean Boivin, global head of research at the BlackRock Investment Institute.
Cap rates are expected to remain generally steady this year, although they might fluctuate in some sectors. In the industrial asset class, cap rates in gateway markets are rapidly tightening, said Matthew Schreck, quantitative strategist with Ten-X, and retail cap rates rose at a muted pace in the fourth quarter, according to Cushman & Wakefield.
Factors that could affect REITs include technological changes and the growth of Opportunity Zones, says Tim Pire of the Wisconsin School of Business' Graaskamp Center for Real Estate. The latter could shift demand and supply balances, and of the former, he tells his students to "be prepared for change."
Opportunity Zone investors are waiting for the next round of related regulations from the Treasury Department. "The second tranche of regulations is a moment of truth for investors and communities," said John Lettieri, president of the think tank Economic Innovation Group.