Hit list of big CRE buys, 7-Eleven buys Speedway, a 15-year mortgage below 2%, unemployment benefits in limbo, and buying Howard Hughes.
In Today's News
Check Out the 10 Biggest Buyers of CRE So Far This Year
The biggest names in private investment and publicly held real estate investment trusts (REITs) stayed active enough in the first half of 2020 to close on deals ranging up to $12.6 billion.
Why it Matters: These buys include apartment portfolios, an Amazon (NASDAQ: AMZN) distribution center, and a pair of iconic Las Vegas casinos. They also include industrial properties, life sciences properties, and more. It all speaks to the resilience that commercial real estate (CRE) is showing through these terrible times.
Marathon Sells Speedway Stores to 7-Eleven's Corporate Owner
The world's largest franchiser of convenience stores is making its biggest-ever acquisition. Seven & i Holdings is paying Marathon Petroleum (NYSE: MPC) $21 billion to add 4,000 Speedway gas stations and convenience stores to the nearly 9,800 locations it already has in the U.S. through its ownership of 7-Eleven.
Why it matters: Analysts note that the Japanese company's model of building franchised stores in urban centers, not necessarily in gas stations, could be followed here. That could add more possibilities for building and franchising among real estate investors in multiple markets.
UWM Now Offering 15-Year Fixed Mortgages at 1.875%
United Wholesale Mortgage is now offering fixed-rate mortgages for 15 years at as low as 1.875%, a new record low that's available for both purchases and refinancing.
Why it matters: UWM is the nation's largest purchase mortgage and wholesale lender, offering its loans through brokers instead of direct to consumers. Once more, they're setting the bar high by daring competitors to go even lower. Investors can only benefit from such cheap rates if the property and price are right.Today on Millionacres
Will Reduced Unemployment Benefits Lead to More Rent Delinquencies?
Reducing the $600 weekly payout to millions of unemployed Americans may be in the next bailout package that Congress passes in response to the COVID-19 pandemic. Will that be enough?
Why it matters: Combined with the expiration of moratoria on evictions and forbearances on mortgages, this may not go well for millions of tenants and the landlords, many of them small investors, who depend on that income.
Is Howard Hughes Corporation a Buy?
Millionacres' Matt Frankel takes a look at this developer of master-planned communities that has taken a serious beating this year because of what it does and where it does it.
Why it matters: The author here is an investor himself in this stock and explains clearly why an issue like this is troubled -- and why it shows enough promise to not only hang on but add a bit.