Inner ring assets lead multifamily rent growth; housing tower sold for $128M

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

Multifamily assets in neighborhoods just outside the downtown have seen annual rent growth of 3% since the first quarter of 2022, outpacing the downtown and suburban submarkets, CBRE said in a report.

The strong demand for properties in inner ring neighborhoods has been driven by renters seeking walkability and proximity to entertainment and other amenities, the real estate services provider said.

The compound annual growth rate of suburban multifamily properties stood at almost 2.5%, while downtown assets recorded annual growth of more than 1.5%.

"The traditional suburbs have also benefited from millennials — an urban-inclined generation — forming families and seeking more space," CBRE said.

CHART OF THE WEEK: US REIT indexes slightly down in week ended June 7

⮞ US real estate investment trust indexes closed the first week of June mostly flat, with the Dow Jones Equity All REIT and the MSCI US REIT (RMZ) indexes falling slightly from a week ago.

⮞ The Dow Jones US Real Estate Office index was down 2.76% week over week, the largest sector decline for the week, while the Dow Jones US Real Estate Hotel index fell 1.94%.

⮞ The self-storage index recorded the highest increase during the week, up 2.10%.

Property lane

– Strategic Facility Partners acquired The Henry, a 23-story student housing tower with 537 beds in Tampa, Fla., from an undisclosed joint venture partnership for $128.1 million, the Columbus Business First reported, citing Hillsborough County property records.

– Timberlane Partners LLC acquired the apartment and office property at 1280 Harrison St. in Seattle for $115 million, the Puget Sound Business Journal reported. The deal includes an approximately 32,000-square-foot building partially leased to Amazon.com Inc.

– Douglaston Development LLC purchased the 90-unit apartment building at 1450 Third Ave. in New York City for $114.5 million, Commercial Observer reported, citing property records. The seller of the six-story property was a subsidiary of Valeray Real Estate Co. Inc.

US hotel performance

US hotel performance was up year over year across two key metrics during the week ended June 8, STR reported, citing data from CoStar, which provides information and analytics on property markets.

Revenue per available room (RevPAR) was $111.26, up 1.7% from the comparable week in 2023. Average daily rate (ADR) rose 1.8% to $160.90. However, occupancy fell 0.1% to 69.1%.

Among the top 25 markets, Houston took the No. 1 spot for occupancy and RevPAR growth, while New York City reported the highest year-over-year increase in ADR. Detroit and Atlanta reported the steepest declines in RevPAR.

Explore key people moves in North American real estate.