Net-lease REITs tumble, and Chinese developer targets New York City for $1 billion hotel
Jun 21, 2013
Here are the news stories you may have missed this week:
The Wall Street Journal: Lease REITs take a big turn
With interest rates rising, perhaps no other stock market has suffered as much as net-lease REITs. Since the Federal Reserve suggested last month that there could be coming policy changes that would result in higher interest rates, the stocks of the five largest net-lease REITS have declined 11% to 18.5%, and the All-REIT Index decreased by 9.6%. To see other red flags that experts have noticed, check out the article at The Wall Street Journal.
Reuters: China’s Wanda aims to launch $1 billion NY hotel project this year: chairman
Wanda Group, China’s largest commercial real estate developer, announced on Tuesday that the company is seeking partners to build a five-star hotel and apartment building in New York City for a grand total of $1 billion. The project’s formal announcement is expected in the next few months. This project will be the developer’s third international investment and is part of its plan to construct hotels in eight to 10 international cities. Get all the details on Wanda Group’s latest U.S. investment at Reuters.
NJ.com: Menendez bill would allow foreign money to aid U.S. commercial real estate
In an effort to spur job growth and help business property owners avoid foreclosure, Sen. Robert Menendez (D-N.J.) and Sen. Mike Enzi (R-Wy) have re-introduced The Real Estate Investment and Jobs Act, which withholds taxes on gains achieved by international investment in U.S. assets. Menendez is hoping the bill will relax foreign investment tax rules and prevent foreclosures as $2 trillion in commercial real estate loan payments come due in the next five years. For more on the bill visit NJ.com.
GlobeSt.com: MOB Q1 sales top $1 billion
Medical office building (MOB) sales totaled $1.17 billion in the first quarter of 2013, a 16.7% gain year over year, but a 40% decline from the fourth quarter of 2012. That being said, $380 million of sales from October to December 2012 is attributed to Realty Income Corp.’s acquisition of AR Capital and its 35 medical transactions. Get the full report, complete with cap rates, at GlobeSt.com.