Tag Archives: purchase

Hines, Oaktree Purchase of Beckman Campus Sets Local Record, Spotlighting Surging Need in Brea, California

Biggest Brea Offer of 2018 Shows Competitors for Property Near Los Angeles, Orange County and the Inland Empire

Hines and Oaktree-managed funds have been particularly active in Orange County, with the Beckman Coulter school marking their 10th acquisition in the North Orange County submarket alone. Image Credit: Hines.

Hines, a Houston-based investment firm, completed the largest property deal this year in the surging North Orange County market of Brea, California, purchasing the 34-acre Beckman Coulter School workplace and industrial center for $115.25 million amid climbing business rents in the city.

The five-building purchase, which CoStar data states totals $200.01 per square foot, was the 10th acquisition in the North Orange County submarket with funds handled by downtown Los Angeles-based Oaktree Capital Management LP and Hines. The offer surpasses the purchase of a 329,000-square-foot industrial production center at 300 East Cypress St. in March for $50 million for the record as the greatest offer this year in the city of Brea, inning accordance with CoStar data.

As Orange County’s the majority of northern submarket, Brea draws workers from Orange County along with Los Angeles and the Inland Empire, said Anthony DeLorenzo, senior vice president at CBRE Capital Markets.

“It really services three markets, and that’s why it’s been so successful,” said DeLorenzo, who is based in the Newport Beach workplace.

The business real estate need is just the most recent source of economic growth for the city of about 40,000 about a half-hour southeast of Los Angeles. Brea got its start with petroleum production and later ended up being understood for growing citrus. Today, its property popularity has led to regional retail development, consisting of the Brea Shopping center and a redeveloped downtown.

Brea likewise gains from “no new construction, and absorption has actually been robust,” DeLorenzo stated. “There’s lower vacancy, so leas have moved upward considerably in Brea.”

Tight jobs have led designers to provide practically 1 million square feet of new stock in Brea in the previous three years, inning accordance with CoStar Market Analytics. Annual lease growth has also been healthy recently, and vacancies have actually pulled back listed below their long-lasting average where they’re forecasted to remain, inning accordance with CoStar Market Analytics.

The 576,234-square-foot Beckman Coulter Campus, at 250 South Kraemer Blvd., will remain 100 percent rented to Beckman Coulter, a biomedical device manufacturer.

The home includes 1,642 surface parking stalls, outside typical locations, fitness centers, on-campus dining and community living space.

The campus, which is designed to support production, research and development and product training, has worked as Beckman’s headquarters since it was built more than 30 years back, inning accordance with Hines.

Hines Director Drew Huffman said Brea’s place is supporting need that’s resulting in “attractive yields.”

The net rented portfolio for Hines in Orange County amounts to about 1.5 million square feet, according to Huffman. Hines’ portfolio with Oaktree of area homes includes a Raytheon campus in Fullerton, PacSun campus in Anaheim and Volt Details Sciences campus in Orange.

Developers Purchase Previous OfficeMax HQ, Strategy to Bring Trendy Fulton Market Ambiance to West Chicago ‘Burbs.

Franklin Partners, Bixby Bridge Capital Strategy to Provide ‘Unmet Requirement’ for ‘Amenity-Rich Work Environment’ to Naperville

A set of designers is proposing to transform the uninhabited former OfficeMax headquarters in Naperville, IL into a hip, amenity-rich downtown-like office building dealing with millennials in the west Chicago suburban area.

That’s inning accordance with Ray Warner, partner at Naperville-based Franklin Partners, which in a joint endeavor with Bixby Bridge Capital, acquired the 354,000-square-foot office complex at 263 Shuman Boulevard. Formerly an office place for AT&T and, later on, the head office of OfficeMax, which was purchased out by Workplace Depot in 2013, the purchasers plan an extensive building remodeling designed by Chicago-based Wright Heerema Architects.

“There’s an unmet need to provide an amenity-rich workplace experience in the heart of Chicago’s western residential areas,” Warner said. “We are redeveloping this premium Class An office complex that’s been under-utilized for several years to provide an unique, millennial workforce-friendly location.”

The task will bring some required pizazz to the Western East/West corridor, which is dotted with primarily 2- and 3-Star residential or commercial properties, according to CoStar research. The last 15 years have actually seen numerous new structures spring up, however few have the heft of a significant office building, which could be adding to vacancies and weak absorption numbers.

Franklin and Bixby Bridge, based in Northbrook, purchased the 263 Shuman building, located in the Naperville Workplace Park off I-88, last week for a concealed quantity. In 2016, it was examined at $9.86 million, according to CoStar research. The 5-story home, which was integrated in 1986 and remodelled in 2006, has actually been vacant because OfficeMax moved out 3 years earlier.

The developers plan to upgrade the full-height atrium lobby with a grand staircase and arena seating, a full-fitness center, co-working lounges and “other facilities more normal of a Chicago high-rise than the surrounding rural offices,” according to the companies.

“Contrary to popular belief, there are plenty of rural millennials – and they are starting to require the very same kinds of work environment facilities as their more metropolitan equivalents,” stated Wright Heerema primary Roger Heerema. “From the baristas and health facilities to a foodie-friendly marketplace, we’re bringing Fulton Market to Naperville.”

Building and construction is set up to start later on this year and wrap up in early 2019.

For the record:

Francis Prock and David Florent of Colliers International’s workplace advisory group have actually been tapped to market the renovated workplaces on behalf of ownership.

To learn more on the sales transaction, please see CoStar Comp # 4235065.

Chipotle provides purchase one, get one offer for Earth Day

Chipotle Mexican Grill is offering free food with purchase on Earth Day (Chipotle).
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Chipotle Mexican Grill is providing complimentary food with purchase in the world Day( Chipotle). LAS VEGAS( FOX5) – Fast-casual Mexican restaurant Chipotle is providing a mouthwatering offer for Earth Day. Diners who display their multiple-use water bottles or tote bags to cashiers can score a free burrito, taco, salad or bowl with the purchase of one of the previously mentioned items on April 22 from 10:45 a.m. to 10 p.m. at any Las Vegas Chipotle area, a media release stated.

Chipotle recently revealed their dedication to divert half of its dining establishment waste from land fills by 2020; a 10 percent increase from the restaurant chain’s present diversion rate, a release said.

Display your totally free food by sharing your images with FOX5 on Facebook, Twitter, or Instagram. Copyright 2018 KVVU( KVVU Broadcasting Corporation ). All rightsreserved.

Bon-Ton Landlords Namdar Realty, Washington Prime Deal to Purchase Struggling Seller Out of Insolvency

$128 Million Quote Would Keep Dept. Store Chain as Going Issue

A financier group composed of DW Partners, Namdar Realty Group (including its partner Mason Asset Management) and Washington Prime Group has actually provided to buy The Bon-Ton Stores Inc. (OTCQX: BONT) from personal bankruptcy for $128 million money in a quote to keep the seller as a going concern.

The having a hard time, Milwaukee-based outlet store chain filed for Chapter 11 bankruptcy reorganization this previous February. The financier group, which includes 2 of Bon-Ton’s current property owners, proposes to acquire Bon-Ton through a personal bankruptcy court-supervised sale procedure.

Because the retailer declared insolvency, other groups have actually shown interest in purchasing up and liquidating the firm.

Bon-Ton and the investor group still have to settle a possession purchase agreement in advance of an auction, now arranged to be hung on April 16.

The financier group had actually conditioned its desire to proceed with settlements on a deposit of $500,000 to cover the expense of due diligence. The court authorized the work cost.

The financier group would get all of Bon Heap’s assets with one exception– a 743,600-square-foot warehouse at 115 Business Pkwy in West Jefferson, OH (Columbus). That home would be offered separately to AM Retail Group Inc., which operates retail store areas owned by G-III, including Wilsons Leather, G.H. Bass & & Co., Calvin Klein Efficiency, Karl Lagerfeld Paris and DKNY stores.

Bon-Ton is a renter in 15 of Washington Prime Group’s properties, totaling 1.48 million square feet. DW Partners is an alternative asset manager and Namdar Real estate Group is an independently held commercial realty investment and management firm that owns and runs more than 30 million square feet of industrial property in the U.S. Bon-Ton is a tenant in 13 of its homes.

Neither Washington Prime nor Namdar have actually commented yet on the deal.

Bon-Ton runs 250 stores, which includes 9 furniture galleries, in 23 states in the Northeast, Midwest and upper Fantastic Plains under the Bon-Ton, Bergner’s, Boston Shop, Carson’s, Elder-Beerman, Herberger’s and Younkers brands.

This would not be the first time landlords have teamed to purchase up a struggling however significant occupant in their home portfolios.

In September 2016, Simon Property Group (NYSE: GGP), GGP (NYSE: GGP) and Genuine Brands Group LLC got Aeropostale Inc. through a personal bankruptcy court monitored sale for $80 million. And so far, that relocation seems to be working out for the REITS.

GGP broke in $20.4 countless cash for its part. At the end of in 2015, GGP offered a 54% share of its interest in the joint endeavor to Authentic Brands Group LLC for $16.6 million, which led to a $12 million gain to GGP.

Namdar’s and Washington Prime’s quote makes good sense for a few reasons, inning accordance with Morgan Stanley Research experts Richard Hill and Ronald Kamdem.

If they were to lose Bon-Ton as a renter, cap rates fortheir malls would likely widen if given the risk of co-tenancy and capex requirements to redevelop.

But it could likewise be somewhat of an offensive relocation. It’s possible that the property managers might position Bon-Ton stores in shopping malls where they have a huge box vacancy.

“We can’t help but think this would be a competitive benefit for these 2 shopping mall landlords relative to their peers,” the two analysts said. “Initially, they could opt to keep open shops at their properties while closing others at completing areas. Second, it could offer them an opportunity to purchase shopping malls from their rivals at more attractive evaluations if there is a threat of losing a major renter.”

Blackstone REIT Expands '' Last-Mile ' Warehouse Holdings with $1.8 Billion Portfolio Purchase

22 Million-SF Canyon Industrial Portfolio Consists Of Amazon, DHL, FedEx and Coca-Cola Amongst 377 Tenants

Blackstone Realty Earnings Trust, Inc. (BREIT) revealed it has successfully closed on a $1.8 million transaction to obtain a 22 million-square-foot portfolio consisting of 146 infill storage facility and circulation properties throughout the country.

Referred to as the Canyon Industrial Portfolio, the properties were offered by a set of funds sponsored by Boston-based Cabot Properties: Cabot Industrial Worth Fund IV, L.P. and Cabot Industrial Worth Fund IV Manager, LP. Blackstone had previously put the portfolio under contract in late December.

The gotten properties includes 146 “last-mile” structures, with the biggest concentration in Chicago at 4 million square feet accounting for 18% of the portfolio’s aggregate base rent; followed by Dallas (3.22 million SF, 12%), Baltimore and Washington D.C. (1.86 million SF, 12%), Los Angeles and Inland Empire, CA (1.12 million SF, 7%), South-Central Florida (1.12 million SF, 7%) and Denver (1.07 million SF, 6%).

The portfolio’s 377 occupants consist of Amazon, Federal Express, DHL, Coca-Cola, Fiat Chrysler and the U.S. federal government, according to a securities filing.

BREIT noted that the industrial job rates throughout the portfolio’s markets has actually continued to decline over the previous seven years and is presently just 4.6%, while rents have actually increased 5.7% year-over-year.

“The ongoing market lease development in the portfolio’s markets resulted in leas on brand-new leases surpassing leas on expiring leases by 9% in the portfolio during the third quarter of 2017,” Blackstone stated, adding that the portfolio has some leasing upside as it’s presently 90% inhabited.

“BREIT’s portfolio, with its emphasis on steady, income-producing warehouse and apartment or condo assets, is well placed to take advantage of continued tailwinds in these sectors,” stated A.J. Agarwal, Blackstone REIT president and head of U.S. core-plus real estate for the private-equity giant.

The Blackstone-sponsored non-traded REIT buys supported U.S. industrial realty homes, including multifamily, industrial, retail and hotel possessions.

BREIT’s portfolio now amounts to $7 billion over 272 properties, consisting of 33 million square feet of commercial area and 17,200 multifamily houses, with some select-service hotels and grocery-anchored shopping centers.

Blackstone has re-entered the U.S. commercial market in a huge way considering that last year, when it acquired a 38-property portfolio totaling 4.4 million square feet in Southern California from Principle Realty Investors for about $500 million.

In January, the private-equity business consented to buy Canada-based Pure Industrial Real Estate Trust, which owns and operates industrial residential or commercial properties throughout The United States and Canada, in an all-cash offer valued at about $2 billion.

Host Hotels Consents To Purchase Trio of Hyatt Hotels in Hawaii, CA, FL for $1 Billion

The 301-room Andaz Maui is amongst a trio of resort hotels under contract to be acquired by Host Hotels & & Resort in a $1 billion transaction.

credit: Hyatt Hotels Corp.Bethesda, MD-based

Host Hotels & Resorts, Inc. (NYSE: & HST) revealed an arrangement to buy the 301-room Andaz Maui in Wailea, Hey There; the 668-room Grand Hyatt San Francisco in the city’s Union Square district and the 454-room Hyatt Regency Coconut Point in Bonita Springs, FL for $1 billion.

Host Hotels posted a $25 million deposit in contracting to acquire the three residential or commercial properties, according to Host Hotels President and CEO James Risoleo, who announced the transaction Wednesday afternoon in the company’s fourth-quarter and full-year 2017 earnings report.

“These possessions are fee-simple and situated in what the company believes are some of the leading growth markets in the United States, consisting of Maui and San Francisco, which are taking advantage of strong accommodations need and restricted supply development,” Risoleo said.

Host Hotels currently owns 10 Hyatt homes. Hyatt will continue to manage the hotels post-sale.

Host Hotels likewise revealed on Wednesday it closed the $190 million sale of the Secret Bridge Marriott in Arlington, VA, on Jan. 9 and is under agreement to sell the W New York for $190 million in a separate deal anticipated to close in the second quarter. Capstone Equities and Highgate are reported to be the unofficial purchasers.

Host Hotels reported fourth-quarter revenues of $0.42 per share on profits of $1.34 billion. For the year, HST reported $5.39 billion in incomes, about 0.8% below 2016
“By opportunistically generating income from a terrific piece of property in Washington, D.C. and reducing our direct exposure in New york city, we are using essential pillars of our modified strategy that our company believe will develop additional worth for stockholders gradually,” Risoleo stated in a release.

Updated: Rent-A-Center'' s Board Weighing Purchase Alternative for 2,500-Store Chain

Retailer’s Chairman Steven Pepper Resigns Over Dispute with Board’s Decision

Rent-A-Center Inc. (NASDAQ/NGS: RCII), among the nation’s largest rent-to-own shop operators, which revealed early today plans to think about alternatives consisting of a sale of the chain which runs around 2,500 stores now has an at least one proposition to think about.

Vintage Capital Management LLC, an Orlando-based personal equity fund, made a nonbinding offer today to get all of the outstanding shares of the company for $13 per share in money.

Financiers don’t appear too fired up about the offer. Rent-A-Center’s stock leapt onlu about $1 per share to about $10.90/ share on news of the offer.

Rent-A-Center encouraged its shareholders not to take any action at this time however said it would review the offer.

[Editor’s Note: This story was upgraded Friday Nov. 3, 2017 at about 1:15 pm EST with news of the deal]

The Plano, TX-based company revealed earlier today that its chairman, Steven L. Pepper, resigned from his position efficient instantly. Pepper notified the company that his resignation was an outcome of his dispute with the board’s choice to start a tactical evaluation process for the retailer.

Rent-A-Center will suspend its stock dividend payments until it completes its review. The board’s choice follows calls from activist financiers to put the business up for sale after apparently decreasing buyout offers from a handful of private equity companies this year, consisting of an $800 million offer from private equity company Vintage Capital in June.

Engaged Capital, a Newport Beach financial investment company with a stake in the company, commended the board’s choice calling it long overdue.

“Engaged Capital thinks that Rent-A-Center stays an appealing acquisition opportunity. Our company believe the company’s strong cash flow generation, liquidity and management position in the appealing rent-to-own market integrate to underpin prospective transaction cost varieties that would permit both investors and a potential acquirer to realize considerable worth,” the business stated.

Engaged Capital also claimed Rent-A-Center previously cannot pursue reputable quotes at significant premiums to its stock cost earlier this year, including, “Engaged Capital reminds the board that our analysis shows that a strategic acquirer could recognize $300 million or more of synergies and operational enhancements.”

The firm has actually engaged J.P. Morgan as its financial advisor and Winston & & Strawn LLP as legal advisor. Rent-A-Center reported a loss this week the three months ended Sept. 30 of $12.6 million vs a $6.2 million profit for the same quarter last year.

Foreign Capital Eager to Purchase US Mezz Debt to Fill Building Loaning Space

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Korean, Chinese Groups Institutional Groups Lead the Charge as New Players Rush to Deal Mezz, Preferred Equity Platforms

The Moinian Group, one of the developers of Hudson Yards, earlier this year launched Moinian Capital Partners, in part to tap into the hot market for subordinated debt.
The Moinian Group, one of the designers of Hudson Yards, previously this year introduced Moinian Capital Partners, in part to tap into the hot market for subordinated financial obligation. Non-bank lending institutions are hurrying into the commercial realty financial obligation market to fulfill need for mezzanine and preferred-equity loans from designers piecing together building funding for new tasks while the existing property growth still has legs. With triggering from regulators, banks are ending up being more careful when it comes to building and construction and acquisition loaning, and there are fewer funding options offered in the downsized CMBS market. As an outcome, developers have actually relied on a broadening number of personal lenders and funds, consisting of foreign capital groups in Asia and the Middle East excited to buy U.S. realty through bridge and mezzanine financial obligation rather than higher-risk direct equity investments.

” Financiers have pertained to feel that the subordinated financial obligation space might be a good location to go as we’ve gotten deeper into the cycle, on a relative-risk basis,” said Brian Ward, CEO of Atlanta-based property manager and loan servicer Trimont Property Advisors.


Brian Ward, CEO of Atlanta-based possession supervisor and loan servicer Trimont Property Advisors, stated low capital costs has actually been a significant chauffeur of CRE’s long upcycle.

” There’s certainly more chance and that’s reflected in the expanding variety of personal financial obligation suppliers who are raising mezz or preferred-equity funds,” Ward included.

Competition is strong for financing deals of all kinds as investors continue to flood the marketplace with capital, even as tighter regulatory oversight and warnings from federal regulators about possible getting too hot in the CRE advancement, especially in the multifamily sector, has caused banks to tighten underwriting requirements and reduce building and construction loan volumes.NYC Designer Launches Debt Platform” As we move later in the
cycle, it makes sense for banks to be more cautious and draw back on specific development lending,” said Jonathan Chassin, a former Morgan Stanley executive who now heads Moinian Capital Partners, a lending division introduced by respected New York City designer The Moinian Group to offer senior mortgages, mezzanine loans, preferred equity and building and construction loans for big institutional hotel, office, retail, land and domestic possessions. Such loans typically bridge the’ gap’ in between exactly what a traditional loan provider wants

cover and the equity that the designer wants to invest.Click to Broaden. Story Continues Listed below< a href=" http://www.costar.com/webimages/mezzexample.JPG

” target= “_ blank “>” We’re seeing a significant number of chances for advancement deals with excellent sponsors in great markets, either through whole loans or mezz capital structures, where a bank might be only going to fund 45% of construction loan to value (LTV), where in the past they would fund up to 65 %,” Chassin added. Moinian Capital Partners chief Jonathan Chassin stated players that weren’t extremely active in the financial obligation space in the current past are getting back into the mix. In addition, most mezz loans have shorter terms than a typical 10-year channel loan, increasing their opportunity of being secured through a recapitalization or refinancing and more reducing danger to the loan provider, Chassin said. With a major influx of capital from sovereign wealth funds, insurance provider and other foreign capital sources driving down yields,” We see relative value in financing on tasks instead of buying equity at 4% or below cap rates,” keeps in mind Chassin. “We’re perfectly comfortable financing on building offers, as we have experience managing all the intricacies of building

financing,” he included. Moinian is presently developing 3 Hudson Blvd., a 66-story, 2 million-square-foot tower in Hudson Yards, along with a number of Manhattan residential projects under building or in the pipeline.More SWFs Targeting Personal Financial obligation Nearly 40% of sovereign wealth funds now buy personal debt in an effort to boost returns, with 70 %of participants in Preqin’s 2017 Sovereign Wealth Fund Evaluation mentioning mezzanine debt as the most attractive instrument over the next 12 months. About 63 %of wealth funds plan to target distressed financial obligation, with 53 %looking for direct loaning. The rising appeal of mezz financial obligation is shown in this year’s fundraising and joint venture transactions with foreign investors from China and South Korea excited to make lower-risk financial investments in U.S. realty projects. Och-Ziff Realty Credit Fund raised $735 million from financiers, consisting of the Industrial Commercial Bank of China Asia, in the final round of capital raising for the fund which invests in mezzanine debt related to distressed land, casinos and senior real estate, according to recent published reports. TH Property, a department of pension fund investment manager TIAA Global Asset Management, previously this year announced strategies to broaden its U.S. property financial obligation platform through a brand-new joint endeavor with the Korean Teachers’ Credit Union targeting financial investment of as much as

$ 1 billion in CRE loans.” The low rates of interest environment has financiers looking for yield and for defensive investments at this mature phase in the realty cycle. We continue to see strong demand from foreign capital trying to find opportunities in the U.S.,” kept in mind Jack Gay, worldwide head of debt for TH Realty.” Mezzanine loans in specific hold the prospective to use returns that are extremely near to equity returns. “Personal equity firm KKR & Co., global alternative funds supervisor TPG and alternative investments consultant Franklin Square Holdings likewise launched initial public offering to form publicly traded home mortgage REITs to tap into demand for non-CMBS and non-bank debt capital by developers or over-leveraged financiers wanting to take out growing home loan in the latter stages of the real estate cycle.Benchmarking High-Yield Mortgage Financial obligation With a lot financial investment activity in the mezz area, mortgage lender John Levy and financial investment supervisor Michael Giliberto just recently developed a brand-new benchmark to track subordinated debt efficiency. After assembling the Giliberto-Levy Commercial Home loan Performance Index for first-mortgage loans over the past 25 years, they are now rolling out a new index for evaluating and comparing returns on mezz loans, chosen equity and B-notes, in addition to high-yield senior home mortgages.” All of a sudden, the high-yield debt organisation has actually gotten type of trendy. People want to purchase mezzanine debt or chosen equity,” stated Levy, head of John B. Levy & Co., a Richmond, VA-based brokerage and advisory organisation.” The market is maturing fairly quickly and investors want a high-yield index.” Levy said his index is currently tracking$ 8.5 billion in 250 separate high-yield business mortgage

debt transactions involving popular cash managers, insurer and other institutional financiers.” This has been 4 years in the making, “Levy & stated. “Tracking mezz financial obligation, which is generally part of a bigger funding structure, is extremely hard. There are more moving parts in high-yield

home mortgages. We happened to launch this index at a time when everyone wants to do high yield, but don’t know ways to raise the money. Now they have a criteria.”

Golden Home entertainment to purchase Stratosphere, Arizona Charlie'' s and Aquarius residential or commercial properties

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displayed in an undated image.( FOX5 FILE)” border=” 0 “width=” 180″/ > The Stratosphere is shown in an undated image.( FOX5 FILE). LAS VEGAS( FOX5 )-. Golden Home entertainment announced Monday that it will purchase three Las Vegas gambling establishments, including the Stratosphere

, and a resort in Laughlin. The business will obtain American Gambling establishment and Home entertainment Properties LLC which owns the Stratosphere Gambling establishment, Hotel, and Tower, Arizona Charlie’s Decatur, Arizona Charlie’s Boulder and the Aquarius Gambling establishment Resort in Laughlin.

Golden Entertainment purchased the properties for $850 million. The deal is anticipated to close by the end of 2017.

Golden Entertainment currently owns and runs properties in Nevada, Maryland, and Montana. Its portfolio includes four casino properties, 56 taverns, including PT’s, and 1,000 gaming locations.

Copyright 2017 KVVU (KVVU Broadcasting Corporation). All rights scheduled.

Debt consolidation Continues in SFR Sector as Nest Starwood Agrees to Purchase GI Partners' ' 3,106 Rental Houses for $815 Million

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Portfolio Deal Represents 13% Growth in Possession Size for Colony Starwood, Which Currently Handles the Characteristics

Nest Starwood Homes( NYSE: SFR) consented to acquire a portfolio of 3,106 single-family rental houses from Waypoint/GI Venture LLC for $815 million.

Colony Starwood currently manages the portfolio for the sellers, which is located in southern and northern California, Chicago, Atlanta, Tampa, Phoenix, Miami and Orlando.

As of March 31, 2017, the GI portfolio was 95.8% occupied with an average monthly lease per unit of $1,703, which the company stated was, “meaningfully greater than the average of the other public single-family rental REITs.”

Waypoint/GI got the single-family rental homes at approximately $262,395 per home.

Fred Tuomi, CEO of Colony Starwood Residences, said the deal represents another important action in industry debt consolidation amongst the greatest players, with Nest Starwood wanting to increase scale and recognize incremental operational effectiveness throughout its SFR platform.

” The GI portfolio acquisition provides an appealing opportunity for the business to efficiently convert a large portfolio of homes from handled to entirely owned possessions, all within our present market footprint with concentration in the high development California market,” included Tuomi.

Nest Starwood Houses prepares to fund the acquisition by offering shares of its typical stock.

GI Partners was one of the earliest financiers to move into the single-family rental area through its 2011 financial investment in Waypoint Property Group (WREG). WREG combined its property management operation with an affiliate of Starwood Capital Group to manage its portfolio of SFR assets, which were later on combined with Nest American Homes in 2016 to create Colony Starwood Houses.

” As an early institutional investor in the SFR industry, we are pleased in playing a function in turning a cottage market into a permanent property class within the $30 trillion U.S. real estate market,” said Hoon Cho, handling director at GI Partners.

Paul Hastings served as special legal advisor to GI during the deal.

The single-family rental market remains highly fragmented with only 1% of the around 15.8 million single-family rentals in the United States owned by institutional owners, according to John Burns Real Estate Consulting.

American Homes 4 Rent (NYSE: AMH )stays the top dog in the industry with more than 48,300 rental homes in its portfolio. Blackstone’s Invitation Houses (NYSE: INVH), which completed a public offering earlier this year, can be found in a close second with more than 47,900 houses. Following the GI portfolio acquisition, Nest Starwood Houses will own more than 34,400 SFR rental properties.GI Portfolio Details Market– # Houses– Occupancy– Average Month-to-month Rent Southern California– 1,043– 96.30%–$ 1,794 Northern California– 825– 97.30 %–$ 1,921 Chicago– 395– 93.50%– $1,648
Atlanta– 312– 94.40%– $1,406
Tampa– 221– 94.50%– $1,383
Phoenix– 157– 97.40%
— $1,400 Miami– 143– 96.10 %– $1,735 Orlando– 10– 90.00 %– $1,539.