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REIT Replay: Works like a charm

The broader markets and real estate investment trusts capped the week off with solid gains Friday, Dec. 8, as the latest jobs report showed that U.S. employment growth surpassed expectations in November.

The MSCI US REIT Index (RMZ) rose 0.66% to 1,163.13. The Dow Jones Industrial Average jumped 0.36% to 24,298.22, while the S&P 500 gained 0.52% to end the day at 2,651.61.

Federal Realty Investment Trust is offering $175 million of its 3.25% senior unsecured notes at a price equal to 99.404% of the principal amount, with a 3.323% reoffer yield. Part of the net proceeds will be used to redeem certain notes.

Federal Realty shares rose 0.33% to close at $130.27.

Seritage Growth Properties plans to raise $70.0 million in a series A preferred stock offering slated to close Dec. 14. The company's operating partnership will use the net proceeds in part to fund its redevelopment pipeline.

Seritage Growth shares increased 0.45% to close at $40.36.

Life Storage Inc. expects roughly $443.8 million in net proceeds from a just-completed $450 million senior notes offering. The offering was conducted by the company's operating partnership, which will use part of the net proceeds to repay certain debt.

Life Storage shares edged 1.18% higher to close at $90.54.

Prologis Inc. sold a portfolio of industrial buildings in Florida to Blackstone Group LP affiliate Equity Office for more than $110 million. Equity Office funded the acquisition with an $83.5 million loan from Wells Fargo, according to The Real Deal.

Prologis shares climbed 0.35%, closing at $66.05.

MG Properties Group paid $117.5 million to acquire the 456-unit Waterleaf Apartments community in Vista, Calif.

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Waterleaf Apartments in Vista, Calif.
Source: MG Properties Group

Gramercy Property Trust's Redondo Beach Business Court property in California changed hands for $36.7 million. The transaction included the 124,400-square-foot office building and a separate daycare facility.

Gramercy shares declined 0.07% to close at $27.84.

Northview Apartment REIT wrapped up its C$196.8 million acquisition of a 1,250-unit Canadian property portfolio and the C$37.7 million sale of a 216-unit noncore asset in Kitchener, Ontario.

Northview Apartment shares jumped 1.20%, ending the day at C$25.40.

In macro news, the Pension Real Estate Association's latest Consensus Forecast survey predicted that average total returns in the U.S. commercial real estate market, including income, will reach 6.9% across all property types in 2017 but decline to 5.6% in 2018.

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The Week in US Real Estate: 2 IPOs advance; Colony NorthStar, sponsored REITs merger slated for votes: The Dec. 8 weekly news roundup in the North American real estate space also features legal developments, a slew of companies increasing their dividends and more updates on the financing and property fronts.

Conference Chatter: Single-family rental sector not threatened by rise in millennial homeownership: At the IMN Single Family Rental Investment Forum West in Phoenix, industry observers said they remain bullish on the sector given, among other things, millennials' favorable perception of renting.

Market prices and index values are current as of the time of publication and are subject to change.