CAPRE’s Commercial Real Estate Headlines for September 13, 2019

Check out the latest deals and developments in commercial real estate for September 13, 2019:

  • Blackstone Announces $20.5 Billion Final Close for Latest Global Real Estate Fund: Blackstone has announced the final close of its latest global real estate fund, Blackstone Real Estate Partners IX (“BREP IX”). BREP IX has $20.5 billion of total capital commitments — the largest real estate fund ever raised. Blackstone is also currently investing two regional opportunistic funds, the €7.9 billion BREP Europe V and the $7.2 billion BREP Asia II. In June, BREP IX committed to its initial investment, the purchase of GLP’s U.S. Logistics Assets for a total of $19 billion, alongside other Blackstone vehicles. This acquisition is expected to close in the coming weeks. Kathleen McCarthy, Global Co-Head of Blackstone Real Estate, said, “This fundraise reflects the excellent relationships we have with our limited partners given the strong results the BREP funds have generated for them since 1991. We are grateful to our investors for their ongoing support and look forward to putting this capital to work on their behalf.”
  • Freddie Mac Prices $1.2 Billion Multifamily K-Deal, K-097: Freddie Mac recently priced a new offering of Structured Pass-Through Certificates, which are backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly 10-year terms. The company expects to issue approximately $1.2 billion in K Certificates (K-097 Certificates), which are expected to settle on or about September 24, 2019. The K-097 Certificates are backed by corresponding classes issued by the FREMF 2019-K97 Mortgage Trust (K-97 Trust) and guaranteed by Freddie Mac. The K-97 Trust will also issue certificates consisting of the Class X2-A, Class X2-B, Class B, Class C, Class D and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-097 Certificates.
  • NewLake Announces $85.5 Million Capital Raise For Newly Formed Real Estate Company: NewLake Capital Partners, Inc. announced today that it closed a private placement of $85.5 million in Preferred Stock, with the first draw of capital having occurred August 28, 2019. NewLake is a newly formed, internally managed, Maryland corporation focused on acquiring specialized industrial and retail properties to be leased to state-licensed cannabis operators. With one of the largest, non-captive, initial capital raises in the cannabis real estate industry, NewLake is focused on serving a diverse group of high-quality cannabis companies. NewLake is a newly formed, internally managed, Maryland corporation focused on acquiring specialized industrial and retail properties to be leased to state-licensed cannabis operators. NewLake intends to elect to be taxed as a real estate investment trust for U.S. federal income tax purposes once it meets all applicable criteria.
  • Lexington Realty Trust Acquires Three-Property E-Commerce Industrial Portfolio for $180 Million: Lexington Realty Trust, a real estate investment trust (REIT) focused on single-tenant industrial real estate investments, today announced that it has acquired a 2.4 million square foot e-commerce industrial portfolio from Atlanta-based developer and manager IDI Logistics for approximately $180 million.   The portfolio consists of three recently constructed, Class A warehouse/distribution facilities located within Park North at Monroe, an established logistics park developed by IDI Logistics along Interstate 75 in a strong industrial submarket of Cincinnati, Ohio. Each property is 100% net-leased to nationally recognized tenants/guarantors, consisting of Amazon, Hayneedle/Wal-Mart, and Blue Buffalo (a division of General Mills). The portfolio has a weighted-average lease term of approximately 9.3 years and average annualized rental escalations of approximately 2%.
  • TD Charitable Foundation Seeks Solutions to Growing Rental Burden Crisis: The increasing shortage of affordable housing creates a multitude of economic issues including the inability of households and individuals to establish financial stability and plan for the future. As housing costs consume a growing share of income, it forces decisions that make it virtually impossible to build credit and pay off student debt. The TD Charitable Foundation, the charitable giving arm of TD Bank, America’s Most Convenient Bank®, today announced it will seek solutions to expanding the stock of affordable rental units. The Foundation will award $3.75 million to 30 local housing non-profit organizations to refurbish existing housing stock and create safe, healthy and affordable rental units.

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