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Omega Healthcare, MedEquities merger closes; WeWork parent forms $2.9B fund

S&P Global Market Intelligence offers our top picks of U.S. real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

Mergers & acquisitions

* Omega Healthcare Investors Inc. closed its merger with fellow healthcare real estate investment trust MedEquities Realty Trust Inc. in a deal that represents an enterprise value of approximately $600 million for MedEquities.

* The California State Teachers' Retirement System acquired Fairfield Residential Co. LLC from Brookfield Asset Management Inc. for an undisclosed amount, Pensions & Investments reported, citing people with knowledge of the matter. Brookfield bought Fairfield, which manages about 43,000 apartment units across the U.S., out of bankruptcy in 2010.

Coworking matters

* WeWork Cos. Inc. parent The We Co. is forming an investment fund, called ARK, with an initial investment of about $2.9 billion, that will buy stakes in properties where the company leases space, Bloomberg News reported. Canadian investment firm Ivanhoé Cambridge Inc. is contributing $1 billion to the fund, which will be operated separately from the office leasing business of WeWork.

* The coworking giant is also in talks to buy a 20-story office building at 600 California St. in San Francisco where it leases space, the San Francisco Business Times reported, citing sources familiar with the talks. The owner, Bentall Kennedy, purchased the property for about $216.5 million in 2014.

* Also during the week, WeWork announced its first lease in Orlando, Fla., where it agreed to take more than 70,000 square feet at Piedmont Office Realty Trust Inc.'s SunTrust Center property.

Property-heavy transactions

* Healthcare REIT Welltower Inc. completed its nearly $1.25 billion acquisition of 55 medical office and outpatient facilities from CNL Healthcare Properties Inc., which raised net cash proceeds of approximately $550 million from the sale.

* Jamestown LP is in talks to purchase the 850,000-square-foot Levi's Plaza at 1155 Battery St. in San Francisco for an estimated $820 million, the San Francisco Business Times reported, citing unnamed sources.

* Westbrook Partners LLC and Korea Investment Corp. are in discussions to sell the 259-key Ritz-Carlton New York Central Park hotel to Qatar's Katara Hospitality Ltd. and private equity firm Trinity White City Ventures for about $600 million, Bloomberg News reported, citing unnamed sources.

* Piedmont Office Realty is looking to sell the 46-story, 967,000-square-foot tower at 500 W. Monroe St. in Chicago's West Loop district for between $470 million and $490 million, Crain's Chicago Business reported, citing an unnamed source.

* Diversified real estate firm Thor Equities LLC is selling the retail condominium at the base of the Carlton House at 680 Madison Ave. in Manhattan, N.Y., with a price tag of $370 million, The Real Deal reported, citing sources.

Hyatt's Canadian hunt

* Hyatt Hotels Corp. plans to open more than 20 new hotels in Canada, tripling its portfolio in the country by the end of 2022, including the first Hyatt House and Hyatt Centric hotels in the country, as well as the first three Hyatt hotels in Niagara Falls, Ontario.

To the public

* Postal Realty Trust Inc., a real estate investment trust that owns and manages properties leased to the United States Postal Service, completed its IPO of 4.5 million shares of class A common stock, priced at $17.00 apiece. The company's shares started trading on the NYSE on May 15 under the symbol PSTL.

* Equity International Management LLC is planning to take four of its businesses public, including Mexican mall operator Grupo Acosta Verde SA de CV, Bloomberg News reported.

Bearish outlook on global CRE investment

* In a report published by Jones Lang LaSalle Inc., the real estate and investment management services firm said global investment in commercial real estate is expected to decline by up to 10% in full-year 2019 to approximately US$690 billion, due largely to weaker activity in the Americas and Europe, the Middle East and Africa.

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