INDUSTRY NEWS & NOTES
HEALTH CARE, SENIOR
SALES ACTIVITY ON RISE
Health care and senior housing real estate companies are
ramping up investment in medical office and senior housing facilities, according to a report from CoStar Realty
The report cited information from Jones Lang LaSalle’s
Fall U.S. Capital Markets Outlook bulletin indicating
interest in seniors housing and health care assets is
According to the Jones Lang LaSalle report, senior
developments are now more easily able to secure financing, particularly through the HUD 232 program, and the
number of seniors housing companies seeking development sites for 2012 and 2013 product deliveries has
Most recently, one of the largest deals—occurring in
October 2010—involved Chicago-based Ventas Inc. It
agreed to acquire 118 senior housing properties, or 13,500
units, across the country from Atria Senior Living Group,
for $3.1 billion in stock, cash and assumed debt.
Further, of the 10 health care REITs with Moody’s ratings, eight have stable outlooks and two have positive
outlooks for 2011, according to CoStar information.
>> For more information, visit http://www.costar.com.
Commercial real estate sectors appear to be stabilizing,
said Lawrence Yun, chief economist for the National
Association of Realtors in an NAR news release.
“The basic fundamental of rising commercial leasing
demand, resulting from a steadily improving economy,
means overall vacancy rates have already peaked or will
soon top out,” he said.
He said the multifamily market will likely perform best
in 2011, with apartment rents potentially rising 1 to 2
percent. Multifamily vacancy rates are forecast to decline
from 6. 4 percent in the fourth quarter of 2010 to 5.8 percent in the fourth quarter of 2011, according to the NAR’s
Commercial Real Estate Outlook.
Slow & Steady
Green & Gold
Affordable housing in Florida is going green…and gold.
Carlisle Development Group and Broward County
Housing Authority have commenced construction on the
first LEED for Homes, gold-certified affordable housing
development in Florida.
The $33 million townhouse development called East
Village will target very low and low-income families
earning between $15,000 and $49,500 annually in
Davie, Florida. Monthly rents at the 155-unit complex
will start at $416. Average unit size will be more than
1,000 square feet.
Amenities will include a community lake surrounded
by walking paths, a swimming pool, children’s splash
fountain, exercise facility, playground/tot lot, library and
computer lab. On site education and training will also be
offered to further develop residents’ life and work skills.
Funding for the project stems from federal stimulus
funds, Low Income Housing Tax Credit (LIHTC) equity,
a Town of Davie SHIP Loan, a Broward County HOME
Loan and conventional financing from Citi Community
>> For more information, visit http://www.frej.net.
Still, office vacancy rates are also expected to decline,
although annual office rent is anticipated to decline
another 1. 6 percent in 2011, according to the outlook.
Industrial vacancy rates are expected to fall from 13. 9
percent to 13. 2 percent in the closing quarter of 2011, and
rents are expected to decline 3. 4 percent in 2011.
Little change is forecasted for the retail market in 2011,
according to the outlook, with vacancy rates dropping
from 13. 1 percent in the fourth quarter of 2010 to 13 percent in the fourth quarter of 2011 and average rent falling
0.3 percent in the coming year.