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REIT Replay: 2 to tango

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REIT Replay: 2 to tango

REITs traded down and the broader markets edged higher Wednesday,March 30, as Regency Centers and AvalonBay were tipped to be teaming up to acquirea mixed-use development in Northern Virginia.

The MSCI US REIT Index (RMZ) dropped 0.31% to 1,151.58, and theSNL US REIT Equity Index declined 0.22% to finish at 306.36. The Dow Jones IndustrialAverage added 0.47% to close at 17,716.66, while the S&P 500 gained 0.43% toend the day at 2,063.95.

A mixed-use development on the market for sale in Northern Virginiais reportedly being eyedby Regency Centers Corp.and AvalonBay Communities Inc.

The companies are said to be partnering to acquire the MarketCommon in Clarendon for an estimated $410 million. The asset is being sold by TIAA-CREFand includes an office tower and a retail-and-apartment building on Clarendon Boulevard,according to GlobeSt.com, as cited in a March 29 report in the Washington Business Journal.

Shares of Regency Centers slid 0.41% to $75.07 on Wednesday,while AvalonBay shares dipped 0.41% to $188.83.

In other property news, PennsylvaniaReal Estate Investment Trust soldfour noncore malls across three states.

The company said March 30 that the Lycoming Mall in Pennsdale,Pa., sold for roughly $26.4 million, while the Gadsden Mall in Gadsden, Ala.; NewRiver Valley Mall in Christiansburg, Va.; and Wiregrass Commons Mall in Dothan,Ala., were sold in a packagedeal worth $66 million.

The transaction is part of the company's ongoing effort to reposition its portfolio, according tothe company.

Pennsylvania REIT shares gained 0.70% to $21.71 on March 30.

Further, GramercyProperty Trust Inc. soldthe four-building Pacific Corporate Park in Sterling, Va., as part of its plan todispose of select single and multitenant office properties.

The company said March 30 that it pulled in $142.1 million innet proceeds from the transaction, which had a gross sale price of $145.5 million.

Gramercy shares declined 1.06% on Wednesday to $8.40.

In capital offerings, Oaktree Capital Management LP affiliateSTORE Holding Co. LLC is looking to shed its remaining stake in

Specifically, the selling stockholder launched a secondary of all 33,336,144 STORECapital common shares it owns at a priceto the public of $25.25 apiece.

STORE Capital said after market close March 29 that it will notreceive any proceeds from the offering, which is expected to be completed on orabout April 1.

STORE Capital shares dropped 1.04% on March 30 to $25.71.

In Europe, CBREGroup Inc. inked a deal to acquireAtrium AS, its affiliate based in Norway, for an undisclosed sum.

The company said March 30 that the transaction, which shouldbe finalized by April-end, will allow it to strengthen its foothold in the Nordicregion.

CBRE shares ticked up 0.38% to $28.69 on Wednesday.

On the macro front, the Mortgage Bankers Association reportedMarch 30 that U.S. mortgage applications fell1.0% week over week, on a seasonally adjusted basis.

The market composite index, which measures mortgage loan applicationvolume, slipped 1% week over week on an unadjusted basis, according to the report.

Now featured

Data Dispatch:March state of the housing market: Data released in March showed a generallypositive picture of conditions in the U.S. housing market.

Real Estate Rundown:Lessons to be learned from J.C. Penney's bounce back: The departmentstore lost roughly 20 million customers when it implemented radical changes in 2012,but it has clawed its way back by restoring and expanding its product mix and implementingnew strategies to target millennial tastes.

The Short Report:US REITs see decline in short interest in March 1st half: The U.S. REITsector experienced a 6-basis-point drop in average short interest to 3.28% of outstandingshares during the first half of March.

The Short Report:US homebuilders post short-interest gains in March 1st half: WilliamLyon Homes posted the largest drop in short interest and topped the most-shortedhomebuilders list during the first half of March.

The Short Report:US gaming short interest slips in March 1st half: Monarch Casino loggedthe biggest short-interest gain in the gaming sector, while Wynn Resorts was themost-shorted gaming stock during the first half of March.

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