Remote work slows senior housing recovery; Colo. office campus sells for $205M

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

The rise of the hybrid work setup, one of the key causes of the office property sector's recent slump, may also be hurting the recovery of the senior housing sector, The Wall Street Journal reported.

The occupancy rate for senior housing facilities across the US was 83.7% in the second quarter, up from the pandemic bottom but below the 87.1% logged in the first quarter of 2020, according to the report, which cited the National Investment Center for Seniors Housing & Care.

Flexible work schedules provide Americans more time to tend to their aging parents, delaying their transition to expensive senior care homes.

Markets with high levels of work-from-home adoption tend to have lower senior housing occupancy rates, the publication reported.

CHART OF THE WEEK: 4 all-stock REIT deals recorded in Q2

⮞ Four mergers involving public US equity real estate investment trusts totaling $24.27 billion in transaction value were announced in the second quarter.

⮞ M&A transaction value was $25.13 billion in the first half, down 62.4% from $66.86 billion in the first six months of 2022.

⮞The $16.04 billion all-stock acquisition of Life Storage Inc. by Extra Space Storage Inc. was the largest REIT M&A announcement year to date.

Property trade

– Goodman Group agreed to pay over $206 million to purchase a 350,512-square-foot processing, manufacturing and warehousing property in Vernon, Calif., from Smithfield Foods, Commercial Observer reported, citing sources familiar with the deal.

– Construction company Kiewit Corp. divested its office campus in Lone Tree, Colo., to entities associated with CGA Capital and Benderson Development Co. LLC for $205.2 million, the Denver Business Journal reported, citing property records.

– Bell Partners Inc. acquired The Lansbrook Village community, a 774-unit fractured condominium community in Palm Harbor, Fla., from Osso Capital Management LP for $201 million, the Tampa Bay Business Journal reported, citing property records.

– MDH Partners LLC paid $112.3 million to acquire Harvill Logistics Center, an industrial property that spans 333,570 square feet in Perris, Calif., from Blumenfeld Development Group and CH Realty, Commercial Property Executive reported, citing public records.

– The Premiere Residential LLC acquired a luxury apartment community in Gilbert, Ariz., from Leon Capital Group LLC for $140 million, the Phoenix Business Journal reported. The Soltra at SanTan Village property has 380 units and was built in 2021.

– Sabert Corp. hired Cushman & Wakefield to market a portfolio of eight warehouses spanning over 2.7 million square feet, which includes its Sayreville, NJ, headquarters, Greenstreet's Real Estate Alert reported. The food-packaging manufacturer is taking offers in a sale-leaseback offering that could value at $350 million.

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