US student housing defies commercial real estate downturn; JV gets $330M loan
S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.
The student housing property sector in the US remained resilient amid the downturn in the overall commercial real estate industry, driven in part by limited supply and strong demand at many colleges, The Wall Street Journal reported.
Values of student housing have declined due to higher interest rates, although it fell at a slower pace compared with other property types, given strong rent growth and occupancy, Jaclyn Fitts, national student housing co-leader at CBRE Group Inc., told the publication.
CBRE data shows student housing property sales in 2022 reached a historic high of $22.9 billion despite rising mortgage rates, according to the report. Blackstone Real Estate Income Trust Inc.’s $12.8 billion acquisition of American Campus Communities LLC was the biggest deal recorded during that year.
CHART OF THE WEEK: Higher Q2 home sales expected for 10 US homebuilders
⮞ US homebuilders are expected to see 3.7% quarterly growth in home sales for the second quarter and a 13.2% decline on an annual basis.
⮞ Ten out of 15 select US homebuilders will likely post higher home sales in the second quarter compared with the previous quarter.
⮞ PulteGroup Inc. is the only homebuilder on the list that is projected to book higher home sales quarterly and annually.
Buy and sell
– D.R. Horton Inc. acquired Truland Homes LLC, a private homebuilder along the Gulf Coast, for approximately $100 million in cash. The homebuilding assets acquired by D.R. Horton include roughly 263 lots, 155 homes in inventory and 55 homes in sales order backlog, along with 156 lots and control of about 400 lots through option contracts from Truland affiliates and 201 lots and control of approximately 260 lots through option contracts from third parties.
– BlackRock Inc. listed its Worthing Place apartment building at 32 SE Second Ave. in downtown Delray Beach, Fla., for nearly $130 million, The Real Deal reported. The six-story building contains 217 units, with more than 12,000 square feet of retail space and 301 parking spaces.
– Private investor Richard Meruelo canceled his $200 million buyout of the 350-unit Casablanca on the Ocean Hotel, an oceanfront condominium building at 6345 Collins Ave. in Miami Beach, Fla., Commercial Observer reported.
Financing
– A joint venture between Tishman Speyer Properties LP and Silverstein Properties Inc. secured a refinancing loan worth $330 million for the 32-story Salmon Tower Building, a 960,000-square-foot office property at 11 W 42nd St. in Midtown Manhattan, NY, Commercial Property Executive reported. Bank of America was the largest proportional lender and Taconic Capital was a mezzanine lender for the five-year, fixed-rate loan, according to the report.
– Extell Development Co. secured a $107 million building loan from Bank OZK for the 160-unit development project at 36 W 66th St. in New York City, The Real Deal reported, citing public records.
– An affiliate of Fisher Bros. received $117.5 million in construction financing from an entity affiliated with Canyon Partners LLC for a 312-unit apartment project that will rise at 2200 and 2250 NW First Ave. and 2201 and 2229 NW First Court in Miami, the South Florida Business Journal reported. The eight-story project will include 27,500 square feet of restaurant/retail space and some 120 parking spaces.
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