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CorePoint to be acquired by Cerberus JV; CoreSite fields takeover offers

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CorePoint to be acquired by Cerberus JV; CoreSite fields takeover offers

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

Many real estate sectors have a supportive environment for M&A, including shopping center real estate investment trusts and possibly office REITs. This is due to a discount to private market values, cheap debt and improved institutional demand, according to Mizuho's Nareit takeaways. Nareit is the U.S.-based trade association for REITs and publicly traded real estate companies. The report noted that perception has improved around shopping centers and cap rates are trending above other core real estate sectors. For office REITs, the ongoing steep discounts to NAV could be highly enticing to private investors.

Supply chain and labor market issues as well as inflation were also in focus at the recent Nareit Industry conference. Industrial rents and warehouse demand continue to stay strong. Rising labor and utility costs could lead to higher rents in other segments as well, including healthcare.

Merging lanes

* CorePoint Lodging Inc. agreed to be acquired by affiliates of real estate investment and hospitality management company Highgate and private equity firm Cerberus Capital Management LP in a deal worth about $1.5 billion, Dow Jones Newswires reported.

* Data center operator CoreSite Realty Corp. is fielding takeover offers from REITs American Tower Corp. and Digital Realty Trust Inc. as well as private equity firms, Reuters reported, citing people familiar with the matter.

Portfolio sales

* Physicians Realty Trust agreed to buy 15 medical office buildings totaling roughly 1,460,000 net leasable square feet from Landmark Healthcare Cos. LLC for $764.3 million.

* Morgan Properties LLC bought two portfolios totaling 18 apartment communities in Georgia, Florida, North Carolina and South Carolina for a total of $780.5 million.

* Greystar Real Estate Partners LLC intends to sell its flagship U.S. multifamily value-add fund for roughly $3.6 billion. The fund consists of 30 multifamily properties.

* The multifamily division of RREAF Holdings LLC, along with DLP Capital Partners LLC and 3650 REIT, bought a portfolio of 21 multifamily assets in the U.S. Sun Belt region for $534 million, REBusinessOnline reported.

Big-ticket deals

* CommonWealth Partners LLC agreed to buy the Hudson Commons office building at 441 Ninth Ave. in New York City for more than $1 billion, The Real Deal reported, citing unnamed sources. The 700,000-square-foot property is being sold by Cove Property Group LLC and Baupost Group LLC.

* Vornado Realty Trust received a $950 million loan to refinance the 1290 Avenue of the Americas office tower in Manhattan, N.Y., that it co-owns with former President Donald Trump, Bloomberg News reported, citing a report from Kroll Bond Rating Agency.

* The South Korean National Pension Service and real estate company Tishman Speyer Properties LP formed a $1.5 billion separately managed account aimed at real estate properties across major U.S. markets.