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REIT Replay: Red October

REITsand the broader markets reversed their Friday gains Monday, Oct. 3, while Red Lion Hotelsclosed its acquisition of Vantage Hospitality one month ahead of schedule.

TheMSCI US REIT Index (RMZ) fell 1.84% to 1,173.61, and the SNL US REIT EquityIndex shed 1.69% to finish at 314.62. The Dow Jones Industrial Average lost0.30% to close at 18,253.85, while the S&P 500 declined 0.33% to end theday at 2,161.20.

saidMonday that it wrappedup its purchase of Vantage Hospitality Group Inc. on Sept. 30, onemonth ahead of schedule, accelerating its transformation into an "asset-light"franchised hotel company. Following the cash-and-stock transaction worth about$27.8 million, Red Lion bought roughly 1,000 franchise hotel agreementsnationwide and added more than 59,000 rooms to its select service portfolio.

RedLion shares dropped 1.44% to close at $8.22.

said in a Monday filing that it is pursuing legal action to deny its former external manager, anaffiliate of Behringer Investments, a profitable payday if the REIT is soldafter mid-February 2017. At issue are terms in Monogram Residential's charterthat granted preferred shares to the former manager. The shares have little parvalue, but convert to common stock if the company's share price increases abovea certain threshold within a certain period.

MonogramResidential shares dropped 1.50% to end the day at $10.48.

acquired 4,262 single-family properties in a seller-funded valued at $652.3 million. Thecompany said Friday that the deal more than doubles the size of itssingle-family rental portfolio and expands its footprint in markets such asFlorida, Georgia, Tennessee, Texas, North Carolina and South Carolina. Theseller financing for the deal, which made up 75% of the purchase price, wasprovided under a loan agreement with a term of up to five years and a one-monthLIBOR floating interest rate plus a fixed spread.

Sharesof Altisource Residential fell 0.83%, closing at $10.81.

OnFriday, Milestone Apartments RealEstate Investment Trust said it closed the internalization of its asset managementfunction by acquiring its asset manager, TMG Partners LP, through its operatingpartnership in a deal worth US$106.5 million. The transaction value is based onthe company's volume weighted average unit price of C$20.20 on the TorontoStock Exchange for a 10-day period ended July 25 and an exchange rate of US$1to C$1.3225 based on the Bank of Canada's noon U.S. dollar exchange rate as ofJuly 25.

Sharesof Milestone Apartments fell 1.66% to close at C$18.98.

said Monday that it concluded the sale of the Park Plaza 80 class A office property in Newark, N.J.,to Nightingale Properties for gross proceeds of $174.5 million, as part of itsplan to divest up to $1 billion of noncore assets. The downtown property, whichis 85% leased and totals 973,000 square feet, serves as the headquarters ofelectric and gas service provider PSEG.

ColumbiaProperty Trust shares went down 0.89%, closing at $22.19.

said Fridaythat it completed anoffering of $600.0 million of its 2.250% senior unsecured notes due 2022 and$400.0 million of its 3.125% senior unsecured notes due 2027 for aggregate netproceeds of $990.6 million. The company intends to use the proceeds torepay debt under its October 2013 term loan.

Sharesof American Tower fell 0.95% to close at $112.25.

Privatelyheld retailer Bass Pro Shops agreed to acquire Cabela's Inc. for $65.50 pershare in cash, representing a total deal value of roughly $5.5 billion. "Adriving force behind this agreement is the highly complementary businessphilosophies, product offerings, expertise and geographic footprints of the twobusinesses," the American outdoor companies said in a joint statementreleased Monday.

Accordingto SNL data, Bass Pro Shops is a tenant in 12 REIT-owned properties based ontop tenant data reported by the company at a property level. owns four ofthose properties. Cole CreditProperty Trust V Inc. and Forest City Realty Trust Inc. also list Bass Pro Shopsas a top tenant on an aggregate basis. Cabela's, meanwhile, is a tenant in oneMacerich Co.-ownedproperty.

Cabela'sshares surged 15.02% to close at $63.18.

Onthe macro front, Reis said Monday that the national office vacancy rateremained flat at16.0% in the third quarter after dropping for eight straight quarters,indicating "lackluster" performance in the subsector. On a yearlybasis, the vacancy rate fell 40 basis points, representing a deceleration inthe office market recovery relative to recent quarters.

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: The U.S.' population isexpected to hit 337.4 million in 2022, with the oldest demographic making up ahigher percentage of the total, according to Nielsen's latest demographicprojections.

: TheOct. 3 edition of the North American property news roundup also featuresStrategic Storage Trust II's purchase of its third facility in Las Vegas.

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