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RCA: Megadeals Take Bigger Share of Sales Volume
Although not representing quite as large a share of commercial property sales volume as they did in late 2015, megadeals captured a bigger slice of the market in the third quarter than they did six months ago, Real Capital Analytics (RCA) reported. These jumbo-sized deals, including both portfolio and entity-level transactions, represented 32% of Q3’s volume, compared to 22% in Q1.
RCA’s Jim Costello writes that although entity-level sales weren’t as plentiful in Q3 compared to a year ago, the market did see notable, large portfolio sales. In two different transactions that closed in September, Blackstone vehicles purchased portfolios of industrial assets from GLP.
“One of these portfolios was priced at $13.4 billion, marking it as the largest portfolio transaction in history,” writes Costello. “Normally, deals of this size are M&A-type transactions involving the purchase of the whole entity owning the real estate assets.”
By property type, industrial has been most impacted by megadeals in 2019, with 47% of all megadeal activity for the year so far tied up in such transactions, according to Costello. He notes that preliminary Q3 numbers show a year-over-year decline in dollar volume overall.
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- ◦Sale/Acquisition
- ◦Sale/Acquisition
