“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “ . ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA, CLICK HERE AND PLEASE CALL ME.
Office: 602-445-4113, Direct : 602-759-1209 , cell: 520-975-5207 or email me walterunger@ccim.net. …. VIEW ALL OF WALTERS LISTINGS. Let me know if you are interested in Apartments: CLICK HERE FOR APARTMENTS FOR SALE
By Mary Diduch, Staff Writer, OCTOBER 16, 2018
WHILE THE NUMBER OF TRANSACTIONS WAS ROUGHLY THE SAME, REIT M&A VALUE ROSE TO $81.75 BILLION FROM $33.37 BILLION LAST YEAR.
There was roughly the same number of M&A deals in the U.S. REIT sector so far this year compared to last year—but they sure are worth more overall, thanks to Brookfield Asset Management Inc.’s two big recent privatization plays.
REIT M&A activity has totaled $81.75 billion year-to-date as of Oct. 3, according to new data from S&P Global Market Intelligence. During the same period last year, deal volume totaled $33.37 billion.
However, the data showed that there have been 13 deals that either represent “definitive agreements” or have been completed between the start of the year and Oct. 3. Last year, there were 15 deals during the same period. There were 18 deals in all of 2017, totaling $35.61 billion, according to S&P. In 2016, there were 17 deals whose transaction value totaled $40.13 billion.
This uptick in total transaction value is part of the REIT cycle, says Daniel LeBey, a partner in the capital markets and M&A practice at law firm Vinson & Elkins LLP. It has been harder for REITs to raise money in the capital markets, causing REITs to seek other alternatives for liquidity and growth, such as M&As, he says. “In the last couple of years, the REIT IPO market has been challenging and REIT equity capital markets in general have been challenging, so it is not surprising that M&A activity picked up,” LeBey says.
There have been four equity REIT IPOs in 2016, 2017 and 2018, and similar figures in 2014 and 2015, according to industry group Nareit. In 2013, there were 13 equity REIT IPOs.
There was roughly the same number of M&A deals in the U.S. REIT sector so far this year compared to last year—but they sure are worth more overall, thanks to Brookfield Asset Management Inc.’s two big recent privatization plays.
REIT M&A activity has totaled $81.75 billion year-to-date as of Oct. 3, according to new data from S&P Global Market Intelligence. During the same period last year, deal volume totaled $33.37 billion.
However, the data showed that there have been 13 deals that either represent “definitive agreements” or have been completed between the start of the year and Oct. 3. Last year, there were 15 deals during the same period. There were 18 deals in all of 2017, totaling $35.61 billion, according to S&P. In 2016, there were 17 deals whose transaction value totaled $40.13 billion.
This uptick in total transaction value is part of the REIT cycle, says Daniel LeBey, a partner in the capital markets and M&A practice at law firm Vinson & Elkins LLP. It has been harder for REITs to raise money in the capital markets, causing REITs to seek other alternatives for liquidity and growth, such as M&As, he says. “In the last couple of years, the REIT IPO market has been challenging and REIT equity capital markets in general have been challenging, so it is not surprising that M&A activity picked up,” LeBey says.
There have been four equity REIT IPOs in 2016, 2017 and 2018, and similar figures in 2014 and 2015, according to industry group Nareit. In 2013, there were 13 equity REIT IPOs.
S&P’s analysis looked at real estate deals where the buyer or target is a U.S. equity REIT and was limited to deals where 100 percent of the total equity of the target company changed control. S&P calculated total deal value by taking whichever value was reported first: transaction value as reported; deal value including debt assumption; or unavailable deal value.
There were four deals where the as-reported transaction value was not available, so SNL calculated the deal value, including debt assumption.
Likely helping to skew the deal volume amount was Brookfield Asset Management’s privatization moves involving diversified REIT Forest City Realty Trust Inc. and mall REIT GGP Inc. Brookfield Property Partners, the real estate arm of Brookfield Asset Management, completed its acquisition of GGP for $27.15 billion—the costliest transaction so far this year which included debt assumption. Brookfield Asset Management has a initive agreement in place to buy Forest City for $11.4 billion.
Even without these two deals, deal volume would be $43.2 billion—still above the year-to-date total deal value for 2017.
Private investment real estate managers still have a lot of capital committed to real estate that needs to be deployed, triggering a wave of privatization in the REIT space, says Brad Case, senior vice president of research and industry information at Nareit. Meanwhile, private real estate is overvalued. “REITs are undervalued, so it’s very appealing to buy a REIT,” he says. “You’re essentially getting the same real estate assets, but at a better price.”
Case says he wouldn’t be surprised if more aggressive privatization offers for public REITs start to come in, as private equity investors look to complete deals before the gap in valuations closes. “That window is likely to close at some time in the next couple of years,” he says.
According to S&P’s data, four diversified REIT deals made up the largest portion of total deal value year-to-date, with Brookfield’s Forest City buy coming out on top in the group.
Matt Kopsky, a REIT analyst at Edward Jones, says he expects shopping center REITs to see more M&A activity in the future. As the perception grows that retail is improving for high-quality retailers in good centers with strong demographics, “you could start to see larger buyers come into the space and try to make a value play and buy some of these shopping center REITs at discounts,” Kopsky says.
The question remains, though, whether these public REITs would be willing to sell at below net asset values. “There still remains that disconnect, but if these valuation disconnects continue for a longer period of time I think you would get some shareholder pressure to do that for one or two of these companies,” Kopsky says.
“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “ . ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA, CLICK HERE AND PLEASE CALL ME.
Office / Direct : 602-759-1209 , cell: 520-975-5207 or email me walterunger@ccim.net. …. VIEW ALL OF WALTERS LISTINGS. Let me know if you are interested in Apartments: CLICK HERE FOR APARTMENTS FOR SALE
Timeline of Arizona from 900 BC – 2017
FROM ME:
Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also internationalClick here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
PLEASE CALL ME – Office: 602-445-4113, Direct : 602-759-1209 , cell: 520-975-5207 or email me walterunger@ccim.net
“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “ . ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA, CLICK HERE AND PLEASE CALL ME.
Office: 602-445-4113, Direct : 602-759-1209 , cell: 520-975-5207 or email me walterunger@ccim.net. …. VIEW ALL OF WALTERS LISTINGS. Let me know if you are interested in Apartments: CLICK HERE FOR APARTMENTS FOR SALE
WEEKLY APARTMENT CLOSING UPDATE THROUGH October 5, 2018, Phoenix Arizona Metro.
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Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
Office: 602-445-4112
Direct: 602-759-1209
Cell: 520-975-5207
Fax: 602-865-7461
8 Reasons You Should Invest in Land
Timeline of Arizona from 900 BC – 2017
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
DOT – LOOP 202 / SOUTH MOUNTAIN FREEWAY / PHOENIX AZ – UNDER CONSTRUCTION
ARIZONA FACTS – YEAR 1848 TO 2013
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
- The average age of the population is 34 years old.
- The health cost index score in this area is 102.1. (100 = national average)
- Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).
PHOENIX PROJECTED AS NUMBER ONE US HOUSING MARKET FOR 2017
LIST OF ECONOMIC DEVELOPMENT PROJECTS IN PINAL COUNTY, REVISED 2-14-17
Reasons to Consider me for Commercial Referrals – I have the Knowledge and Experience
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Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
2016 Official Arizona Visitors Guide
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
Office: 602-445-4112
Direct: 602-759-1209
Cell: 520-975-5207
Fax: 602-865-7461
Check out my professional profile and connect with me on LinkedIn.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
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