Foreign purchase of US homes down for 5th year; Blackstone gets $24B for RE fund

S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.

International buyers snapped up fewer U.S. homes but paid much higher prices in the 12 months to March, The Wall Street Journal reported, citing a report from the National Association of Realtors.

Some 98,600 homes in the U.S. were sold to foreign buyers during the period, down 7.9% year over year and continuing the downward trend of the past five years. Transaction volume rose 8.5% to $59 billion. Chinese buyers accounted for the largest share of this at $6.1 billion, while Canadian investors bought the most number of homes, according to the report.

Florida, California, Texas, Arizona and New York were the most preferred home locations of international investors.

U.S. home prices were up 20.6% in March, the highest yearly increase in over 35 years.

Foreign investment, which comprised 1.6% of existing home sales in the 12-month period, is expected to rise as domestic buyers are priced out by higher mortgage rates and as travel restrictions ease in the U.S. and the supply of homes in the market increases, Lawrence Yun, National Association of Realtors' chief economist, told the publication.

CHART OF THE WEEK: REITs expected to report YOY funds from operations per share gain for Q2

⮞ Consensus S&P Global Market Intelligence estimates point to a median 6.3% annual gain in U.S. real estate investment trusts' FFO per share for the second quarter.

⮞ Self-storage and residential REITs are forecast to report the largest increase in FFO per share for the period.

⮞ Malls are the only sector forecast to report a year-over-year decline.

Property funding

* Blackstone Inc. secured $24.1 billion for Blackstone Real Estate Partners X fund, Dow Jones Newswires reported July 21, citing a regulatory filing. The real estate fund is expected to have $30.3 billion in capital once finalized, people familiar with the matter told the news outlet.

* A joint venture between ZG Capital Partners LLC and Rialto Capital Management LLC secured $175 million in capitalization to complete its purchase of a boutique office tower in Manhattan, N.Y., Commercial Property Executive reported. The Park 53 building at 45 E. 53rd St. spans 129,000 square feet across 20 stories.

Property transactions

* Rexford Industrial Realty Inc. paid a combined $660.9 million for seven industrial properties in infill Southern California submarkets. The industrial real estate investment trust funded the acquisition using cash on hand, proceeds from forward equity settlements and its line of credit.

* A&E Real Estate acquired an apartment building in Manhattan from Equity Residential for $415 million, Multi-Housing News reported. The property at 160 Riverside Boulevard comprises 455 luxury units.

* An affiliate of L+M Fund Management bought a community in Atlanta from Hudson Capital Partners for $143.5 million, REBusiness Online reported. The Hudson Ridge Apartments in the Cumberland-Galleria submarket of Atlanta spans 424 apartments.

US REIT average short interest flat in 2nd half of June

Cap rates rose for some real estate deals in H1, expected to edge higher