More housing market records set, CBRE puts $1.3 billion into alternative energy specialist, two apartment REITs in $7 billion deal, Elon Musk and Texas, upgrading life sciences space.
In Today's News
S&P CoreLogic Case-Shiller Index Reports Another Record Home Price Gain of 16.6% in May
The market's strength continues to be broad-based, the data company reported today, as prices in 18 of 20 cities the index tracks now stand at all-time highs, as does the national index.
The Millionacres takeaway: The surge in demand may be an acceleration of purchases that would have occurred in the next several years anyway, along with pandemic-driven changes in where people want to live, CoreLogic Case-Shiller says. "More time and data will be required to analyze this question," the company says. In the meantime, hang on.
CBRE to Buy 60% Stake in Turner & Townsend in $1.3 Billion Deal
The Wall Street Journal reports today [subscription required] that CBRE Group has cut a deal to make one of its largest acquisitions ever, paying roughly $1.3 billion for a 60% stake in Turner & Townsend Holdings Ltd., one of the world's largest managers of infrastructure, natural-resources and real-estate construction projects.
The Millionacres takeaway: The WSJ points out that the deal between the world's largest CRE services firm and the London-based project manager targets alternative energy efforts. From the investor perspective, going green just keeps looking greener.
Independence Realty Trust and Steadfast Apartment REIT Merger to Create $7 Billion Multifamily Owner
Philadelphia-based Independence Realty Trust (NYSE: IRT) has agreed to acquire Steadfast Apartment REIT (OTCMKTS: STFR) of Irvine, California, in a deal that will result in a $7 billion organization real estate investment trust (REIT) with 131 apartment communities in 16 states.
The Millionacres takeaway: The deal is expected to close in the fourth quarter and would make Independence Realty Trust the 26th largest apartment owner, according to 2021 rankings by the National Multifamily Housing Council. See our Matthew DiLallo's take on the deal here.
Today on Millionacres
What Elon Musk's Development Plans Could Mean for Texas
Some billionaires have their every move breathlessly reported by gossip columnists and business writers, but Elon Musk is one of the few who also makes big real estate news. Wherever he and his companies move, jobs -- and housing issues -- follow.
The Millionacres takeaway: Our Deidre Woollard notes that little fish can find plenty of benefit in following the whale. However, when the whale is making big waves and has a tendency to change course suddenly, small investors would be wise to use some caution before going all in.
Life Sciences Are So Hot, the Industry Now Commands Fancy Mixed-Use Space
People who work in this field used to be relegated to spending their days in boring labs, which were often housed in nondescript strip malls or maybe in the basement of buildings. But now, in no small part because of the pandemic, that's no longer the case.
The Millionacres takeaway: Our Laura Agadoni describes the digs that big landlords seeking to attract a new generation of researchers are seeking to provide. She also notes that life science buildings are hot investment opportunities now and should continue to be so for a while, at least until the supply of life science space has been met.