Your Daily Digest for Real Estate Investing, 09/25/2020

Preferred punches out on student housing, apartment communities adapt amenities, open-air centers see clearer skies, what IKEA buying malls means, and some realities around reshoring.

In Today’s News

Preferred Sells Its Student Housing to TPG Real Estate

Preferred Apartment Communities (NYSE: APTS) is selling its 6,000-bed student housing portfolio to TPG Real Estate Partners for $478.7 million and exiting that segment.

Why it matters: As reports here, student housing is in a rough state right now, for obvious reasons. Investors who closely track their real estate investment trusts’ (REITs’) holdings may find this good news if this is one of them.

Apartment Communities Optimize Services, Amenities for Life Under a Pandemic

National Real Estate Investor says multifamily owners and managers have adjusted to long-term life under COVID-19 by adapting how they offer amenities to residents.

Why it matters: Read on for multiple perspectives on the challenges and opportunities that property managers face as they accommodate this new normal. It might inspire you, if you’re in that position, or at least assure you you’re not alone.

Preference for Open-Air Retail Could Survive Well Past the Pandemic

Bisnow Los Angeles reports that one of the lasting effects of the coronavirus pandemic on the retail sector may be a bias against indoor shopping experiences among customers and developers.

Why it matters: The retail experts quoted here are tracking such things as consumer visits, and they’re finding outdoor shopping centers recovering much faster than indoor malls. The latter’s travails are already well known to investors, and the situation may last well after COVID-19 is a bitter memory.

Today on Millionacres

Can IKEA Save U.S. Malls?

The iconic Swedish retailer has already swept up a vacant San Francisco mall and has designs on others in several U.S. markets.

Why it matters: Millionacres’ Maurie Backman points out that it’s good news that such a well-heeled, accomplished retailer is jumping into such a troubled market, but that it’s also competition for REITs already struggling to revive their deeply troubled properties. In sum, for investors, the Ikea news may be a mixed bag, and hopefully not one full of angry badgers.

What Is Reshoring? And How Does It Affect Industrial Real Estate?

Reshoring is simply bringing production and manufacturing back to the U.S. (or whatever country you’re talking about). Besides being a hot political topic, that can create good jobs and boost the local economy.

Why it matters: Millionacres’ Liz Brumer lays out how both President Obama and President Trump have encouraged the trend and that many more domestic companies are planning to join in in the next few years. And they’ll need a place to go. That could mean a boom in both new facilities and repurposing of now-empty factory space. And long-term leases for a lot of them.

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