Christiana Mall in Delaware 100% Full and Firing on All Cylinders

Good little article on Christiana Mall adding 11 new stores this year. Underscores the strength of the local economy in Delaware - the mall is one of the best performers in the nation. From the article: Christiana Mall announced the renovation of several existing stores, and the addition of 11 new retailers that will open their doors before the end of the year. Retailers to be remodeled and expanded include Kay Jewelers, Michael Kors, Pandora and Spencer’s Gifts, while AT&T, Build-A-Bear, and Dairy Queen will move to new locations within the mall. New tenants include The Art of Shaving, Chipotle, Deja Vu/BioXage, Eddie Bauer, Fabletics, Garage, Kiehl’s, and Villa, Join the Movement. The

Rental Property Investment ‘Continues to be a Brilliant Strategy’

This is an article aimed at smaller owner/operators, but the takeaway is clear: there is good value in the smaller properties. At PGP, we agree and are pursuing deals that are in the $1,000,000 to $5,000,000 range, and then we are packaging them and presenting them to our investors as exempt securities with non-recourse debt, great cash flow, and solid IRR's. Essentially, we are working hard to present an institutional grade product with superior returns, but one that is created from acquisitions in an asset class that is currently overlooked. From the article: Single-family rental investors should find more predictable, steady returns going forward as home price appreciation stabilizes an

$15M bond for Wilmington stock exchange OK’d

Many of our investments are in the greater Wilmington Delaware area. We like this area for many reasons: we have a great property manager there (Pabian Properties), we have a fantastic real estate consultant (Location Realty Advisors), and we feel like there is great value in the deal sizes we are looking at - mainly the $1,000,000 to $5,000,000 properties. The other reason is because the area is growing, it is home to many financial and legal professionals, it has a great quality of life, and its location between Philly and Washington is a draw for all kinds of businesses. We are not the only ones attracted to Delaware: The head of a startup company preparing to create a stock exchange he

Impressive chart on vacancies

Just saw this article on vacancies - wow. This will support the multi family marketplace for quite a long time. And, if the Fed raises more quickly, that will only exacerbate the problem by reducing construction lending and thereby decreasing supply coming online. Since rental rates are one of the biggest components of the CPI, it is actually counterproductive for the Fed to make money overly "expensive" by raising rates. From Bloomberg: If the monthly rent check is already painful to write, brace yourself. The Census Bureau's U.S. rental vacancy rate, which tracks the share of properties that are unoccupied, fell to 6.8 percent in the second quarter. That's the lowest level using compara

Soaring Commercial Real Estate Volumes

Commercial real estate volumes are back, and note the last paragraph of the article - strong activity in the office space with average cap rates around 7.00% - and it certainly looks like rotation out of multi family and into other asset classes (office and retail), which is where we see value as well. Also notice that there is movement into the secondary markets - which is also where we are seeing opportunities in smaller sized deals. From the article: For the first half of 2015, volume in U.S. commercial real estate – properties like office buildings, shopping malls, and apartment complexes priced above $2.5 million – grew 36% compared to the same time last year, according to data compiled

Demand for Office Space strong in Delaware

Good piece in the News Journal on Regus' opening of a second location in New Castle County, Delaware. The real story is the strength in the office market in New Castle County. We are watching this area closely and looking for more opportunities to get into good office investments with great tenants. From the article: The area is ideal for Regus’ new space, Patichel said, citing abundant startup companies, small businesses and entrepreneurs, along with the county’s status as a major hub for financial, credit and insurance industries. The Luxembourg-based company opened in Wilmington about eight years ago in the 23,000-square-foot space 12th floor of Brandywine Building downtown on North Wes

Sometimes a vacancy is a positive

The A&P bankruptcy news turns out to be a bit of a mixed bag: it will be difficult for those in second tier markets, but for many retail center owners, it provides an opportunity for a fresh lease with a higher paying tenant. From the Shopping Centers Today article: Landlords of A&P’s top supermarket locations are likely to benefit from the new industry blood that fills the voids, “though secondary locations may be a challenge,” according to Harding. Candidates will include specialty grocers, fitness chains and large off-price retailers, he says. “A&P has a legacy of established and proven real estate, which is the biggest asset it has right now,” said retail consultant Jeff Green, who head

Boomers to support rental demand

Great article in Bloomberg on the impact of retiring baby boomers on rental demand. We are all familiar with the millenial story: kids coming out of college in debt and who value the ability to move for life or work are going to favor renting over owning. But now we have another story to add: baby boomers who want less overhead, less maintenance, and the ability to travel and not worry about keeping the landscaping maintained. From Bloomberg: The number of renters who are 65 or older will reach 12.2 million by 2030, more than double the level in 2010, according to research by the Urban Institute in Washington. While the millennial generation born after 1980 has driven demand for apartmen

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