CAPRE’s Commercial Real Estate Headlines for October 4, 2019

Check out the latest deals and developments in commercial real estate for October 4, 2019:

  • LEX to Launch First Marketplace Enabling Everyday Investors to Acquire and Trade Securitized Real Estate Equities: LEX, the first commercial real estate securities marketplace available to retail investors, closed $4M in seed financing co-led by Greycroft and Thor Equities. On LEX’s platform, everyday Americans will be able to buy and sell shares of individual commercial properties, giving retail investors the flexibility to create customized income-producing real estate portfolios, and allowing property owners to unlock equity while retaining operational control of their properties. LEX is democratizing the commercial real estate asset class and redefining real estate investing. Retail investors have had limited access to commercial real estate. The best opportunities have been reserved for real estate private equity funds and high net worth investors. REITs enable public investment in pooled holding companies, but are not customizable and do not pass through many of the tax benefits of real estate ownership to shareholders. Other direct investment platforms are restricted to accredited investors and only offer securities that are not freely tradable. Property owners have had limited ability to realize liquidity on the equity they own. They typically must sell their entire property to liquidate their investments, incurring high transaction costs and losing control of properties they care about.
  • City Office REIT Announces Pricing of Public Offering of Common Stock: City Office REIT, Inc. has priced an underwritten public offering of 6,000,000 shares of its common stock for total gross proceeds of $83.1 Million USD, before offering expenses. The offering is expected to close on October 7, 2019, subject to the satisfaction of customary closing conditions. The Company has granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of common stock. Including the issuance of 8,000,000 shares pursuant to the Company’s at-the-market (“ATM”) program during the third quarter, the Company expects that 53,647,063 shares of common stock will be outstanding immediately following this offering, excluding the underwriters’ option to purchase additional shares. The Company intends to use the net proceeds from the offering for the repayment of amounts outstanding under its unsecured credit facility and for general working capital purposes, including funding future acquisitions, capital expenditures and investments.
  • Reliance Global Group, Inc. Announces Purchase and Sale Agreement to Acquire Contiguous Class A Multi-Family Properties: Reliance Global Holdings has executed the purchase and sale agreement to acquire two contiguous Class A multi-family properties for a total purchase price of $42.5 million, following the signing of the letter of intent, as previously announced on August 19, 2019. The properties consist of approximately 260 apartment units located in a strong market on the East Coast.  The first phase of construction, which consists of 117 units, was completed in 2017, and is 97% occupied.  The second phase of construction, consisting of 143 apartment units, is expected to be completed mid-2020, and all of the completed units have been pre-leased, subject only to total completion of construction.
  • Toll Brothers Apartment Living and The Carlyle Group Launch Joint Venture to Develop 320-Unit Rental Community in Atlanta’s West Midtown Neighborhood: Toll Brothers and an affiliate of global investment firm The Carlyle Group have announced the formation of a new joint venture to develop Osprey, a 320-unit luxury apartment community in Atlanta’s West Midtown neighborhood. The joint venture has secured a construction loan facility from BB&T Real Estate Funding LLC, serving as administrative agent, and Comerica Bank. The debt and equity financing were arranged by Toll Brothers’ in-house Finance Department.  Toll Brothers Apartment Living will manage the development, marketing, leasing and property management of Osprey. Osprey is located on a 2.07-acre parcel within a mixed-use community in the vibrant West Midtown neighborhood of Atlanta, home to a variety of award-winning dining – from fast casual to white tablecloth – upscale boutique shopping, entertainment, and top-of-the-market creative office spaces.
  • JLL Income Property Trust acquires Presley Uptown: JLL Income Property Trust has announced the acquisition of Presley Uptown, a newly developed 230-unit, Class-A apartment community in the Uptown sub-market of Charlotte, NC. The purchase price was approximately $55 Million USD. The main employment center of Charlotte is within walking distance of the property. Uptown is one of Charlotte’s premier live/work/play neighborhoods, with population growth expected to reach 3.4 percent a year within a three-mile radius of the property, notably surpassing the national average of 0.8 percent. The property is conveniently situated with access to numerous retail and service amenities including the addition of a new Whole Foods within two blocks. Presley Uptown achieved National Green Building Standard Bronze Certification, providing healthier homes, achieving energy and water savings, and promoting sustainable lifestyles.