Call Girls in Inderpuri Delhi 💯Call Us 🔝8264348440🔝
2015 Q1 U.S. Capital Flows Report
1. US Research &
Forecast Report
CAPITAL FLOWS
Q1 2015
Q1 Investment Up 45 Percent
Industrial, Apartment and Hotel sectors see strongest gains over the same period in 2014
Pete Culliney Director of Research | Global
>> Cross-border investment more than doubled (111%) this quarter
over one year prior, capturing $22.2 billion in properties across all
major types.
>> Traditionally tops in cross-border investment into the U.S.,
Canadian investors were edged out by sovereign wealth funds
from Asia, including GIC’s acquisition of the huge IndCor industrial
portfolio from the Blackstone Group.
>> Entity-level transactions made a significant jump in Q1 2015, with
$21.5 billion worth of properties acquired. This was nearly equal to
the 2014 full-year total.
Key Takeaways
>> Commercial property investment in the United States is off to a
strong start so far in 2015, with Q1 sales up 45% year-over-year
(y-o-y) on volume of $129 billion.
>> Office and apartment sales led the way with quarterly sales of
$33.5 billion and $33.0 billion, respectively. Apartments saw
stronger gains, up 68% over the same period in the prior year,
whereas office saw a 43% increase. Both types saw declines from
their Q4 2014 levels, however.
Sources: Real Capital Analytics, Colliers International
Key Colliers Transactions in Q1 2015
DATE TYPE METRO PROPERRY PRICE ($M) BUYER SELLER
Mar 15 Office Boston 100 Cambridge Street $279.8
InterContinental
Developers Inc
Commonwealth of
Massachusetts
Mar 15 Office Manhattan Two 25th Street Office Buildings $210.0 Jowa Holdings
Brickman Associates JV
DivcoWest
Feb 15 Apartment Houston
2 Communities: Avenues at
Northpointe & Avenues at Cypress
$76.0
Preferred Apt
Communities
Davis Development
Mar 15 Retail Seattle Lakeland Town Center $51.6 Donahue Schriber Loja Group LLC
Jan 15 Office East Bay Civic Center Place $39.3 Healthcare Realty Trust Berkeley Land Company
Mar 15 Industrial Gulfport Huntington Ingalls $32.0
Mississippi State Port
Authority
Avondale Enterprises Inc
Apr 15 Apartment Daytona Beach Grandeville on Saxon $30.3 Northland
LNR Partners
OBO Wachovia
2006-C24
Feb 15 Dev Site San Francisco 321-323 Fremont St $28.5 R&F Properties Crescent Heights
Feb 15 Industrial Los Angeles 1201 South Grand Avenue $26.0
Shanghai Shenglong
Investment Group Co Ltd
Rafi & Katrin & Danny &
Emanuel Shaoulian
Mar 15 Retail Las Vegas Rhodes Ranch Town Center $25.3
Del Mar
Partnership Inc
Warmington Group
Jan 15 Apartment Stillwater, OK Campus Park Student Housing $24.5 Scion Group Campus Crest
Feb 15 Retail Atlanta Sandy Springs Crossing $23.4
RCG Ventures OBO DRA
Advisors
Coro Realty Advisors JV
Pope & Land Enterprises
Jan 15 Industrial Philadelphia fmr Oxford Bookbinding $22.5 TPA-Eastland LP
Keystone Industrial
Properties
Jan 15 Office Minneapolis fmr Ameriprise Operations Center $22.4
DCI Technology
Holdings
KanAm Grund
Mar 15 Industrial Chicago Kellog's Distribution Facility $22.0
Metropolitan Life Insurance
Company
Conor Commercial.
Jan 15 Apartment Los Angeles 615-617 Ocean Avenue $15.6
Optimus Properties OBO
All West
Holdings LLC
Robert Eroen,
Successor Trustee to the
Jan 15 Retail Morgantown, WV Pierpont Centre $13.9 Wheeler REIT DDR
2. Investment Volume by Type
Investment by Type Over Time
Sources of Capital
Sources for all charts: Real Capital Analytics, Colliers International
$-
$20
$40
$60
$80
$100
$120
$140
Q1
2012
Q2 Q3 Q4 Q1
2013
Q2 Q3 Q4 Q1
2014
Q2 Q3 Q4 Q1
2015
Billions
Investment Volume by Type
Office
Industrial
Retail
Apartment
Hotel
Land
$-
$10
$20
$30
$40
$50
$60
Cross-Border
Inst'l/Eq Fund
Listed/REITs
Private
User/other
Billions
Q1 2014 Q4 2014 Q1 2015
$-
$20
$40
$60
$80
$100
$120
$140
Q1
2012
Q2 Q3 Q4 Q1
2013
Q2 Q3 Q4 Q1
2014
Q2 Q3 Q4 Q1
2015
Billions
Investment Volume by Type
Office
Industrial
Retail
Apartment
Hotel
Land
$-
$10
$20
$30
$40
$50
$60
Cross-Border
Inst'l/Eq Fund
Listed/REITs
Private
User/other
Billions
Q1 2014 Q4 2014 Q1 2015
$-
$20
$40
$60
$80
$100
$120
$140
Q1
2012
Q2 Q3 Q4 Q1
2013
Q2 Q3 Q4 Q1
2014
Q2 Q3 Q4 Q1
2015
Billions
Investment Volume by Type
Office
Industrial
Retail
Apartment
Hotel
Land
$-
$5
$10
$15
$20
$25
$30
$35
$40
Office Industrial Retail Apartment Hotel Dev Site
Billions
Q1 2014 Q4 2014 Q1 2015
$-
$10
$20
$30
$40
$50
$60
Cross-Border
Inst'l/Eq Fund
Listed/REITs
Private
User/other
Billions
Q1 2014 Q4 2014 Q1 2015
0%
20%
40%
60%
80%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Domestic vs. Foreign Capital in Top
Six Markets
Domestic Foreign
2 U.S. Capital Flows Research and Forecast Report | 1Q 2015 | Colliers International
Liquidity Events Refresh Coffers
>> Industrial transaction volume, which totaled $21.0 billion in Q1
2015, saw by far the largest jump this period, up 97% from $10.6b
in Q1 2014 and 23% from $17.1 billion in Q4 2014, due entirely to
an unprecedented spike in entity-level deals. At $9.2 billion, Q1
2015 was the biggest quarter for industrial mergers since RCA
started tracking the market. The bulk of this was due to GIC’s
acquisition of the IndCor portfolio.
Private Equity Takes Profits
>> Looking to cash out, Blackstone was said to be working on an
$8 billion IPO for its industrial subsidiary IndCor Properties. But
when the Singapore Govt. Investment authority GIC Group came
knocking with $8.1 billion, the deal was done. The IndCor portfolio
consisted primarily of 360 warehouse-distribution properties
that were acquired since 2007 through over 18 transactions but
also contained a few properties that came under the Blackstone
umbrella as part of the Equity Office acquisition.
Private to Public REIT Shift
>> Private, non-traded REIT CCIT, managed by Cole Capital, also
found an exit strategy. Seemingly amassed for bulk sale, CCIT
acquired its portfolio of industrial and office properties between
2012 and 2014, including over $2 billion in property acquisitions in
2013. The bulk of these were single properties and small portfolios
purchased from local developers. Once critical mass was
achieved, buyer Select Income REIT stepped in for the entity-level
acquisition. They were able to bring the ownership to the public
market with the assistance of $1.45 billion in unsecured senior
notes due between 2018 and 2025.
3. 3
Sources for all charts: Real Capital Analytics, Colliers International
Investment into the Top Six Metros
3 U.S. Capital Flows Research and Forecast Report | 1Q 2015 | Colliers International
Volume in Millions of $
Volume in Millions of $
*2015 YTD
Cross Border Investors Jump In
>> Cross-border investors drove investment gains so far this year,
capturing $22.2 billion in properties across all major types. This
was up 111% from $10.5 billion a year prior.
>> While representing just 17% of deal activity this quarter, the $22.2
billion in transaction volume was well above the cross-border
segment’s historical 10% share of the total pie. However, this may
have reflected deals being worked on in late 2014 that did not
close before year’s end, as the Q4 2014 share was unusually low
at only 7%. Combined, the foreign share over the last two quarters
amounted to 12.3%, down just slightly from the 12.5% share
registered over the same period a year ago.
>> Approximately 50% of the $8.2 billion invested in Manhattan
by cross-border investors came from two transactions: the
$2.0 billion purchase of the Waldorf-Astoria Hotel by Chinese
insurance company Anbang and the $2.2 billion acquisition of
1.1 million square feet (MSF) at 1095 Sixth Avenue in Midtown
Manhattan by the institutional investment manager of the Quebec
government.
>> The bulk of the investment in Hawaii was by the Australian
Superannuation Fund purchasing a 25% share of the Ala Moana
Center, the largest mall in Hawaii, in something of a value-add
play. This transaction valued the entire center at $5.5 billion, with
the fund paying $907 million now and another $236 million in
2016 following the completion of a redevelopment that will add
66,000 SF to the current 2.2 MSF of retail and office space.
>> Despite historically averaging only about 10% of property
investment in the U.S., cross-border investors tend to have
a higher profile and seem to create a bigger splash than this
proportion would indicate. We attribute this to the focus that
these investors have on the biggest markets. On average, foreign
investors place more than 60% of their investments in the top six
metros – New York City, Boston, Washington, D.C., Chicago, San
Francisco and Los Angeles – compared to domestic investors who
place on average approximately 40% of their funds into these prime
metros. Additionally, foreign investors often target trophy assets for
which high pricing often brings outsized press coverage and media
attention that heightens the perception of a cross-border takeover.
Top Market Destinations
MARKET TOTAL PROPS TOTAL VOLUME
Manhattan 27 $8,198.70
D.C. 7 $1,662.30
Hawaii 5 $1,390.40
Atlanta 32 $985.90
Los Angeles 28 $888.00
San Francisco 13 $854.80
Houston 14 $823.10
Miami 18 $781.90
Chicago 26 $761.40
Other 561 $15,314.10
Total 731 $31,660.50
Top Countries of Origin
COUNTRY TOTAL PROPS TOTAL VOLUME
Singapore 361 $8,218.50
Canada 134 $6,659.60
China 19 $2,983.00
Germany 14 $1,812.10
Australia 15 $1,804.40
UAE 35 $1,788.40
Brazil 11 $1,140.00
Norway 2 $937.00
Switzerland 23 $834.40
Other 117 $5,483.10
Total 731 $31,660.50
2
Q2 Q3 Q4 Q1
2013
Q2 Q3 Q4 Q1
2014
Q2 Q3 Q4 Q1
2015
estment Volume by Type
Office
Ind
Retail
Apartment
Hotel
Land
$-
$5
$10
$15
$20
$25
$30
$35
$40
Office Industrial Retail Apartment Hotel Dev Site
Billions
14Q1 14Q4 15Q1
$-
10
20
30
40
50
60
Cross-Border
Inst'l/Eq Fund
Listed/REITs
Private
User/other
14Q1 14Q4 15Q1
0%
20%
40%
60%
80%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Domestic vs. Foreign Capital in Top
Six Markets
Domestic Foreign
2015*
*till 5/28/15