US home prices near-record highs in June; Extra Space-Life Storage merger closes

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

US homes sold near record highs in June on the back of increasing demand and a record low number of homes on the market, real estate brokerage Redfin Corp. said in a report.

The median home sale price in June was $426,056, 1.5% below the all-time high of $432,397 recorded in May 2022. On an annual basis, median home sale price was down 0.6%.

"More buyers are starting to come out of the woodwork as they get used to elevated mortgage rates, which is making the market feel even hotter," Redfin Chief Economist Daryl Fairweather said.

Among the metropolitan areas Redfin surveyed, Rochester, NY, saw the largest increase in median sale price in June at 13.1% year over year. Milwaukee and Omaha, Neb., came next with 11.6% and 10.4%, respectively.

Pandemic boomtowns Boise, Idaho; Austin, Texas; and Las Vegas saw the biggest declines in median home sale price.

CHART OF THE WEEK: REIT short interest average down slightly in June

⮞ Short interest in US equity real estate investment trusts was relatively unchanged in June, down 4 basis points from a month ago.

⮞ The regional mall sector recorded the biggest increase in short interest at 53 basis points to 5.0% of outstanding shares.

⮞ The "other" retail sector, which covers outlet centers and single-tenant real estate investment trusts, recorded the largest decline at 92 basis points to 3.1% of outstanding shares.

M&A

– Self-storage REITs Extra Space Storage Inc. and Life Storage Inc. completed their merger after obtaining approvals from their respective shareholders. The combined entity is the largest storage operator in the US in terms of number of locations.

– Special meetings of stockholders will be held on Sept. 8 in connection with the merger of Global Net Lease and The Necessity Retail REIT Inc. The deal is expected to close in September.

Financing

– Caruso obtained a $450 million loan from Morgan Stanley and Goldman Sachs to refinance its Americana at Brand mall in Glendale, Calif., The Real Deal reported.

– Property Markets Group Inc., or PMG, and Greybrook received a loan worth $226 million from Related Fund Management and Lubert-Adler for an apartment building in Fort Lauderdale, Fla., The Real Deal reported, citing a release.

– JSB Capital Group and BLD Group obtained $217 million to recapitalize a multifamily portfolio in Florida, Commercial Observer reported. The portfolio features a 300-unit 400 North luxury midrise property and the 403-unit M2 at Millenia gated community in Orlando, and the 437-unit The Venetian Apartments rental property in Fort Myers.

– Namdar Group LLC secured a $160 million bridge loan from Slate Property Group's lending arm for 9 Homestead Place, a mixed-use building in Jersey City, NJ, Commercial Observer reported. The property comprises 432 units, 21,000 square feet of office space and 10,000 square feet of retail space.

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