CAPRE’s Commercial Real Estate Headlines for September 20, 2019

Check out the latest deals and developments in commercial real estate for September 20, 2019:

  • Fed Cuts Rates Again: “Information received since the Federal Open Market Committee met in July indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a strong pace, business fixed investment and exports have weakened. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed,” writes the Federal Reserve Bank in an press release. “In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-3/4 to 2 percent. This action supports the Committee’s view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain. As the Committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.”
  • Economist Warns of Dire Consequences for Real Estate from Climate Change at ULI Resilience Summit: “Climate change will have a drastic, disruptive effect on the commercial real estate sector over the next several decades as rising temperatures make some areas less habitable and increasingly intense storms and rising sea levels erode the value of coastal real estate, according to the opening speaker at ULI’s Resilience Summit, part of the 2019 Fall Meeting in Washington DC,” reads a feature story by Urban Land. “Spencer Glendon, a Harvard-trained economist and fellow at Woods Hole Research Center in Falmouth, Massachusetts, gave attendees a blunt warning: in the near future, the rapidly warming planet threatens to alter long-held assumptions about the value of land and buildings and jeopardize the viability of projects in some places, particularly in urban waterfront areas.”

  • Cushman & Wakefield Arranges $71.5 Million USD Multifamily Sale in North Carolina: Cushman & Wakefield recently arranged the $71.5 million sale of The District, a 309-unit apartment community located in Asheville, North Carolina. Jordan McCarley, Marc Robinson and Watson Bryant of Cushman & Wakefield represented the seller, Flournoy Development, in the transaction. Amenities include a 2,300-square-foot clubhouse with a state-of-the-art fitness center, game room, business center, heated salt-water pool, fenced-in dog park and picnic area. The District’s ideal location in the city’s southern infill submarket offers residents unparalleled connectivity to Asheville’s foremost economic centers, as five of the largest 10 employers in Buncombe County – accounting for nearly 20,000 jobs – are within a five-minute drive.

  • Rob Bridges joins Avison Young as Principal and Vice-President of Property Management, TX:  Avison Young has announced  the strategic hiring of highly regarded commercial real estate industry veteran Rob Bridges. Effective immediately, Bridges becomes a Principal of Avison Young and Vice-President of Property Management, Texas. In this newly created role, Bridges will develop a Texas property management service line spanning office, industrial and retail assets, and grow the firm’s overall property management business across the Houston, Dallas and Austin markets. He will be based in Avison Young’s Houston office. Bridges brings 31 years of commercial real estate industry experience to Avison Young, most recently as the executive managing director and leader of national asset services at Transwestern in Houston, where he oversaw more than 235 million square feet of assets under management.
  • Innovative Industrial Properties Acquires California Property Portfolio: Innovative Industrial Properties has closed on the final parcel of a four-property portfolio in southern California, which comprises approximately 79,000 square feet of industrial space in total. The purchase price for the southern California portfolio was approximately $17.3 million in the aggregate (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease at each property with a subsidiary of Medical Investor Holdings LLC (d/b/a Vertical) for continued operation as licensed cannabis cultivation, extraction, manufacturing and distribution facilities in accordance with California regulations.

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