Interest in seniors housing stays solid; $220M Los Angeles tower on the block

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

Investor interest in seniors housing remains strong in 2023 amid rising occupancy and rents, JLL's valuation advisory group said.

According to the firm's Seniors Housing Investor Survey and Outlook, 44% of the participating investors said they would increase their seniors housing exposure this year, and another 44% said they would retain their existing holdings.

Occupancy in seniors housing facilities in primary markets has begun recovery, tallying 84.4% in the fourth quarter of 2022 from a historic low of 80.3% during the height of the pandemic.

Rent in seniors housing facilities is also climbing. By the end of 2022, rents in primary and secondary markets grew 4.9% year over year, coming from 1.5% at the beginning of 2021.

CHART OF THE WEEK: U.S. equity REITs' capital offering activity down in 2022

⮞ U.S. equity real estate investment trusts raised a total of $42.69 billion through capital offerings in 2022, down from $79.91 billion in 2021, according to S&P Global Market Intelligence data.

⮞ Most of the $25.52 billion of capital raised last year came through senior debt offerings.

⮞ Specialty REITs raised the largest amount at $17.34 billion.

Property transactions

* Shorenstein is looking to sell the 62-story Aon Center in Los Angeles for $220 million, Commercial Observer reported. The 1.1 million-square-foot tower at 707 Wilshire Blvd. last traded in 2014 for $268.5 million, according to the report, citing property records.

* Stonehenge NYC acquired an apartment tower in New York City for about $115 million, Commercial Observer reported. The RiverEast property on the city's Upper East Side spans 194,000 square feet and has 196 units.

* Avanath Capital Management LLC acquired a high-rise community in Brooklyn, N.Y., from The Brodsky Organization LLC for $101.3 million in an off-market transaction, Multi-Housing News reported. The 18-story building at 7 DeKalb Ave. comprises 251 units.

Leases

* Vornado Realty Trust and Rudin Management Co. Inc. closed a series of transactions with Citadel Enterprise Americas LLC and an affiliate of Citadel's Kenneth Griffin regarding the master lease of two properties in New York City. The transactions included Citadel's agreements to master lease Vornado's 585,000-square-foot office building at 350 Park Ave. with an initial annual net rent of $36 million, and to master lease Rudin's 390,000-square-foot adjacent property at 40 E. 52nd St., according to a December 2022 press release.

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