A new REIT enters the market, and hotel lending sees a new high
Jun 23, 2014
Here are the news stories you might have missed last week:
The New York Times: New energy rouses Boston’s Downtown Crossing
Boston’s Downtown Crossing has grappled with being a top retail destination in recent years, but that’s about to change as new investment and energy are being pumped into the district. Developers are already bringing restaurant, retail, hotel, and multifamily projects to the long-neglected neighborhood. But the $120 million redevelopment of one of the district’s most iconic buildings is projected to have the greatest impact on the retail sector. The Burnham building, the former site of Filene’s department store, will be preserved as part of a 442-unit, 60-story luxury high-rise project that’s already attracting several major commercial tenants. Click over to NYTimes.com to learn more.
GlobeSt.com: Newcastle will spin off seniors business into REIT
Newcastle Investment Corp., one of the largest publicly traded investment firms in the industry, announced on Monday plans to spin off its senior housing business into a new real estate investment trust (REIT). The new REIT, which will trade under the name New Senior Investment Group, comes as part of Newcastle’s effort to optimize the growth of each company as standalone entities. Newcastle estimates the U.S. population aged 70-plus will grow 89% between 2010 and 2030, and projects the New Senior portfolio will see a 17% annual yield in 2014. Keep reading at GlobeSt.com.
South Florida Business Journal: Jackson Health System unveils $1.4B makeover, expansion
Jackson Health System, Miami-Dade County’s public health provider, revealed a $1.4 billion capital plan to expand and upgrade its services and facilities over the next 10 years. The plan, which builds upon an $830 million bond that Jackson voters approved last year, would comprise more than 200 healthcare projects throughout the county, including a $117.4 rehabilitation hospital, a $115.7 hospital for the Miami Transplant Institute, a $40 million pediatric ambulatory care center, and multiple urgent care centers throughout the county. To learn more about this healthcare revolution in Jackson, click over to BizJournals.com.
The Wall Street Journal: Lenders open vault for hotel deals
Banks have been giving the hotel industry a fresh look lately, with lending for lodging acquisition and debt refinancing reaching some of the highest levels they’ve been since the financial crisis. Lenders like J.P. Morgan Chase and Deutsche Bank AG nearly doubled the number of hotel loans they made in the previous year, totaling $31 billion in 2013. Rising room rates, limited new construction, and an increase in leisure and business travel in major cities all contributed to the spike in lending. While the easy money allows hotel companies and investors to limit the use of their own cash for new projects, some analysts warn that borrowers with floating interest rates could have a difficult time paying back their debt if the economy starts to fade. Learn more at Online.WSJ.com.
Author: Raymond T. Cirz