With Berkshire Hathaway’s 9.8% purchase of Store Capital Corp.’s REIT stock, Warren Buffet makes his stance on retail real estate more clear. The REIT says it is “the leader in middle-market net lease solutions.” Mizuho Securities USA Inc. analyst Haendal St. Juste says that “Store doesn’t compete on the beaten path. They are targeting more experiential retail, trying to provide a buffer against risk.” A majority of the single-tenant properties in its portfolio target retail and service providers—health clubs, preschool facilities, and pet-care sites, for instance. (Via Bloomberg)
Sens. Bob Corker (R-TN) and Mark Warner (D-Va) are considering plans to separate federal housing agency giants Fannie Mae and Freddie Mac, including splitting the single-family and multifamily finance businesses. Discussions are preliminary, according to a Senate aide, and there have been no decisions finalized on how to handle the agencies. Fannie and Freddie hold more than $4T in securities. (Via Bloomberg)
Dallas-based Tier REIT paid near-record price to acquire a Plano tower located adjacent to four acres of land it already owns. Tier snagged the 12-story office building at 5851 Legacy Circle for $123.3M, nearly $386 per sq. ft. Tier has already drawn plans for the four neighboring acres to become part of the Legacy District development, adding two towers totaling 570,000 sq. ft. of office space. (Via Dallas News)
More News to Note:
April U.S. Homes Prices Don’t Meet Expectations
New York City Office Real Estate a “Relatively Thin Market”
Canadian REIT Pays $407M for 18-Property Branded U.S. Hotel Portfolio
Berkshire Group Buys Coral Gable Apartment Community for $100M
