Real estate developers are betting big on U.S. housing for the elderly, preparing for a surge in demand as the population of senior citizens almost doubles in the next 35 years. They may be building too fast.
CommonWealth REIT owns office buildings throughout the U.S., yet employs no one. Cole Credit Property Trust III Inc., which leases about a thousand stores around the country to retailers such as CVS, Lowe’s and Wal- Mart, also had no workers until a recent acquisition.
When General Growth Properties Inc. bought Rouse Co. for $11.3 billion in 2004, then-Chief Executive Officer John Bucksbaum said the deal amounted to “five years worth of acquisitions in one fell swoop.” Now the challenge will be keeping those assets.
American Realty Capital Properties Inc., an owner of U.S. single-tenant buildings, is poised to own eight times the properties it had at the end of 2012 after a buying spree that included two major deals this week.
CommonWealth REIT’s clash with shareholders over a stock sale is putting a spotlight on the company that manages it and four other real estate investment trusts after investors complained the structure erodes value.
Commercial real estate investors are moving to smaller markets and buying suburban properties as they search for higher returns after snapping up the most desirable buildings in the biggest U.S. cities.
Nicholas Schorsch, who in seven years built the top company in the $10 billion industry of nonlisted U.S. real estate investment trusts, is leaving behind the types of properties that made the firm No. 1.
Joy Global Inc., the world’s second-largest maker of mining equipment, refuted allegations made about its International Mining Machinery Holdings Ltd. unit and said it has a “high level of comfort” in the reported results of the business it bought in China last year.