5 at 5: Your Daily Digest for Real Estate Investing, 12/14/2020

© Provided by The Motley Fool 5 at 5: Your Daily Digest for Real Estate Investing, 12/14/2020

Blackstone bets billions more on life sciences CRE, unsold hotel rooms near a billion, multifamily loans reflect pandemic stress, Redford’s Sundance exit plan, and three reliable REITs for income.

In Today’s News

Blackstone Raises Wager on Life Sciences With $3.5 Billion Buy

The Wall Street Journal reports today that The Blackstone Group (NYSE: BX) is amping up its bet on biotechnology lab space and other life-sciences real estate, agreeing to pay $3.45 billion for a portfolio of buildings primarily in the active Cambridge, Massachusetts, market.

Why it matters: With a $341 billion portfolio, Blackstone is one of the world’s largest real estate investors. Its Americas real estate chief says life science is one of the firm’s “high-conviction” bets — property types Blackstone believes are among the biggest beneficiaries of emerging macroeconomic trends. Much smaller investors can buy real estate investment trust (REIT) shares to get involved, too.

Unsold U.S. Hotel Rooms Near 1 Billion As Lodging Crisis Deepens

Bloomberg says that as spiking COVID-19 cases further derail travel, the U.S. hotel industry is closing in on a bleak marker: 1 billion empty rooms for the year.

Why it matters: The article quotes industry stakeholders who don’t expect to see 2019 levels until 2024. That doesn’t bode well for many hotels and resort properties — or the REITs that own them.

More Multifamily Loans Showing Signs of Vacancy Distress

Manhattan is seeing its highest apartment vacancy rate in more than a decade, one report says, and another says the borough’s malaise is reflected in a growing number of troubled mortgage-backed loans nationwide.

Why it matters: This piece on GlobeSt.com says it’s too early to tell if this is a temporary dip or if the effects will linger after the pandemic is beaten back. Either way, it’s a tough market for residential landlords of all sizes who have space to rent and no tenants to rent it.

Today on Millionacres

An Exit-Planning Lesson from Robert Redford’s Sundance Sale

A half-century after he bought the resort, 84-year-old Robert Redford is selling the iconic Utah site to Broadreach Capital Partners and Cedar Capital Partners. While we don’t know for how much, the structure of the sale shows how this Hollywood legend built a successful exit strategy.

Why it matters: Millionacres’ Deidre Woollard explains that while most investors don’t have the luxury of waiting years to find the right buyer, the Redford deal does show that planning ahead may be crucial to building a structure that supports the vision for the property.

3 Income REITs to Buy Now

Three great REITs for those seeking a dependable income stream right now are Duke Realty (NYSE: DRE), Realty Income (NYSE: O), and Medical Properties Trust (NYSE: MPW).

Why it matters: Millionacres’ Matthew DiLallo gives a top-line rundown on why these three issues are good investments for steady yield in an unsteady market.

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