March marks the end of 2015’s first quarter, and, based on REIT activity, we expect to see enormous transaction volume in both the multifamily and mixed-use sectors.
For major multifamily REITs, it will be a time of both acquisitions and dispositions, as well as rising rents. Meanwhile, several significant mixed-use developments will open this month.
For apartment REIT MMA, the end of the first quarter will be highlighted by a slew of sales. During its Q4 conference call, MMA executives said that they hope to have completed $250 million in dispositions by the end of March due to low interest rates and strong demand for assets in the sector. Additionally, about $90 million in acquisitions have been planned for the first quarter.
REIT Camden Property Trust also anticipates a healthy buying market for the duration of the quarter. As of the end of January, the firm had sold $29 million in assets, with an additional $85 million planned for March.
AvalonBay Communities is expecting rental rates to rise about 1.7 percent, executives said during AvalonBay’s quarterly conference call.
On the mixed-use front, there are several monumental projects coming online across the country.
San Diego’s City Council just gave approval for the massive One Paseo in Carmel Valley. The Kilroy Development project will comprise 1.5 million square feet, including 600 housing units, retail, and offices. One Paseo is expected to take up 23.6 acres.
In Charlotte, N.C., a public hearing is set for a proposed mixed-use development in the North Davidson neighborhood from Crescent Development that would have about 350 apartment units and potentially a hotel, boutique grocer, and for-sale condos.
Finally, Tree House Development’s 70,000-square-foot Lumina opened in Denver’s Lower Highlands neighborhood at the beginning of the month. The project has 61 apartment units, as well as retail on the ground floor.
Given all of the movement in both mixed-use and multifamily development as of late, it looks as if the end of March and April will be a continuation of a very strong commercial real estate market.
Image Source: Architecture, Food; Flickr