Blackstone buys data center REIT, Fundrise pivots big bucks to single-family rentals, eviction relief extended while rent relief dribbles out, and a think piece about the labor market.
Today on Millionacres
Funds managed by private equity giant Blackstone Group (NYSE: BX) have agreed to acquire real estate investment trust (REIT) QTS Realty Trust (NYSE: QTS). The all-cash transaction values the data center REIT at $10 billion.
The Millionacres takeaway: Our Matthew DiLallo says this deal is notable for a couple reasons. First, it continues the blistering pace of M&A in the REIT sector this year. It also shows that Blackstone sees a bright future for data infrastructure.
The Millionacres takeaway: Our Deidre Woollard says the firm is now targeting $150 million to finance nearly $500 million commitment to building new single-family rentals. Fundrise is not alone. Deidre also explains why this is such a hot market.
On Moratoriums and Rent Relief
The Federal Housing Finance Agency has extended the eviction moratorium until September for Fannie Mae and Freddie Mac-backed multifamily properties that had sought forbearance during the pandemic, GlobeSt.com reports today.
The Millionacres takeaway: That can gets kicked down the road while court battles over the CDC’s national moratorium eviction continue. Landlords and tenants are inextricably tied together in this turmoil, and only time will tell how it plays out.
That aid is being distributed at the state level — and to say the states have been slow in getting that money sent out would be an understatement, our Maurie Backman writes. Unfortunately, that’s doing delinquent tenants and landlords alike a major disservice.
The Millionacres takeaway: At this point, there’s not much to do about the sluggish nature of the rent relief program other than waiting it out. But for some renters, that could spell the difference between homelessness and a roof over their heads. And that doesn’t do much for the property owners, either especially those mom-and-pop investors who depend on that income for their own livelihoods.
Also in Today’s News
It’s not just retailers feeling the pain around finding workers, and it began happening before the pandemic, this New York Times piece says. Some businesses may need to raise prices or retool how they operate; others may be forced to close entirely.
The Millionacres takeaway: Read this analysis piece to get a broader perspective of what’s happening in the labor market in this country, and as you do, think about how that might affect real estate investments in multiple segments. There’s a lot here to digest.
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