SEPTEMBER 7, 2019

Top Stories

Finance & Investment

HUD Reforms Would Allow Affordable Seniors Housing Projects to Access New Capital Sources

By Beth Mattson-Teig, Contributing Writer

Owners of non-profit seniors housing projects are anxiously awaiting a final announcement on reforms that would unlock debt and equity financing alternatives for their segment of the industry. The financing would provide a capital infusion to support much-needed revitalization of aging affordable rental units .

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Alternative Properties

Elite Football Programs Translate to Lower Cap Rates on Student Housing Acquisitions

By Sebastian Obando, Staff Writer

Elite college football programs drive more investment into student housing assets at universities associated with those programs, according to several industry sources. “There definitely is a direct parallel between the two. Enrollment typically continues to grow at universities with winning football programs,” says Sean Baird, director of the national student housing group at real estate services firm Colliers International.

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Industrial

Trade War Increasing Demand for Industrial Space on Both Sides of the U.S./Mexico Border

By Patricia Kirk, Contributing Writer

The U.S. trade war with China is casting a cloud of uncertainty over the U.S and global economies, but it is having a positive impact on industrial real estate on both sides of the U.S./Mexico border. According to ATISA Industrial, a Tijuana-based industrial real estate developer, some U.S. manufacturers operating out of China are seeking relief from tariffs in Mexico.

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Analysis

Alternative Properties

Self-Storage REITs Smell Acquisition Opportunity in Newly-Built Facilities

By John Egan, Contributing Writer

Self-storage REITs are ready to swoop in on an enticing source of acquisitions. As the self-storage industry continues to contend with a glut of supply in many major markets, some developers are nervous. Why? Because they’re wrestling with slower than anticipated lease-ups at new self-storage facilities.

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Office

With Rising Construction Costs, Office Development Might Slow Down

By Patricia Kirk, Contributing Writer

The waning optimism is already being reflected by lenders tightening their purse strings by requiring 10 to 15 percent more equity than a couple of years ago—the requirement is now up to 30 to 45 percent of the project cost, depending on the project risk and the developer. They also want to see 40 to 50 percent of the space pre-leased.

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Multifamily

In Search of Yield, More Multifamily Investors Explore Affordable Housing, Smaller Markets

By Bendix Anderson, Contributing Writer

Many investors are having a hard time finding apartment properties that they can buy at prices low enough to give them an attractive risk-adjusted return. To make these deals work, a growing number of investors are putting their money into higher-yielding property sub-types, including affordable housing and apartment properties in secondary and tertiary markets, according to Brian McAuliffe, president of capital markets with real estate services firm CBRE.

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Research

Whitepaper

Keeping the Capital Flowing

By David Bodamer, Editorial Director

Although there has been consensus for some time that this commercial real estate cycle is long past due for a dip, the move to reduce rates now comes before any serious issues have set in. In all, respondents continue to have a favorable outlook, largely expecting stability when it comes to volumes and lending terms from all categories of commercial real estate lending sources.

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Whitepaper

Senior Housing Properties Are On Solid Ground

By Beth Mattson-Teig, Contributing Writer

Stakeholders across the seniors housing sector have been keeping a careful eye on the robust construction pipeline that has been bringing new supply and increased competition to many metros across the country. Yet results from the sixth annual NREI/NIC seniors housing survey show a positive outlook over the coming year for sector performance and access to capital, along with predictions for a steady pace of transaction activity. A majority of respondents in the latest piece in the NREI Research Series believe the sector will continue to perform well with both occupancy and rent growth in the coming year.

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NREI Wire

In Pricey California, Renters Near Respite From Landlord Gouging

Bloomberg

The housing crisis engulfing California has state lawmakers racing to pass bills that would boost construction and stop corporate landlords from egregiously jacking up rents.

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