Cap Rate (Capitalization Rate) Ratio between the net operating income (NOI) produced by a property and its capital cost (purchase price or current market value); Does not take into account financing factors or changes in income or costs; Useful, “snapshot” … Continue reading →
The Urban Land Institute estimates that the healthcare industry will expand 19 percent by 2019. Eleven percent of the expansion is attributed to the Affordable Care Act and the rest is due to population growth and the aging of the … Continue reading →
The Commerce Department reported sales of new single family homes at 444,000 (seasonally adjusted annual rate) for October – a 25 percent increase over the previous month’s rate and the highest level in six months. The October median sales price … Continue reading →
Washington Real Estate Investment Trust (WRIT) has entered into four separate contracts (with one buyer) to sell its medical office portfolio, according to Seeking Alpha. WRIT will sell a total of 1.5 million square feet for $500,750,000 ($329PSF). The portfolio … Continue reading →
Investment sales activity in Hawaii totaled $2.2 billion during the first half of 2012 – a 134 percent gain from mid-year 2012 levels, according to Pacific Business News (quoting data from Colliers International Hawaii). The transaction count for commercial real … Continue reading →
In commercial real estate, early repayment of a CMBS loan may entail high penalties. This is because such loans are often bundled together and sold to investors as debt securities with a guaranteed rate of return. An early repayment would … Continue reading →
Sydney-based Westfield Group is negotiating to sell seven of its U.S. shopping malls to Starwood Capital Group for over $1 billion, according to The Wall Street Journal. In 2012, Starwood acquired a 90 percent stake in seven other malls from … Continue reading →
Hines recently sold two Manhattan trophy buildings to separate buyers for a total of over $1 billion, according to Commercial Property Executive. J.P. Morgan Asset Management acquired the 31-story, 750,000sf office building at 425 Lexington. The building has been fully … Continue reading →
In an effort to cool the residential housing market, China implemented a 20 percent capital gains tax on residential property effective March 1, along with higher down payment requirements for second home buyers. The previous capital gains tax rate was … Continue reading →
Inland American has retained the Capital Markets Group of Jones Lang LaSalle to sell its SunTrust net lease portfolio, according to Commercial Property Executive. The 143-branch The treatment method cost as well as other expenses that go along free prescription … Continue reading →