- Blackstone Real Estate Income Trust Completes Acquisition of Bellagio Real Estate for $4.25B “Blackstone Real Estate Income Trust (BREIT) and MGM Resorts International have closed on the previously announced 95%/5% BREIT-led joint venture with MGM Resorts to acquire the real estate assets of the Bellagio for $4.25 billion in a sale-leaseback transaction. As part of the transaction, MGM Resorts has leased the property from the joint venture and continues to manage, operate and be responsible for all aspects of the property on a day-to-day basis. The transaction was announced on October 15, 2019.” (Hotel Business)
- Here Are 5 Things to Know About the Surge in Fed Mortgage Bond Buying “The Federal Reserve has dramatically picked up the pace of its mortgage bond purchases in recent months, with this week alone seeing the central bank snap up $1.8 billion. But while the central bank has scaled up its purchase plans through the Federal Reserve Bank of New York, which can be tracked here, that doesn’t mean it has been loading up its balance sheet. Here are five things to know about the near $30 billion of mortgage bonds that the Fed has set out to buy since late May.” (MarketWatch)
- Real Estate Developers Are Slow to Make Buildings 5G-Enabled “Super fast 5G cellular networks are hot as major wireless carriers from Verizon to AT&T deploy the service, but it’s unclear if the infrastructure is in place for in-home 5G to replace current cable-based broadband. The 5G-enabled future seems kind of distant. Real estate developers would need to put fiber-optic cables in homes and office buildings, since 5G doesn’t pass through walls, windows, or people. And most developers are not constructing projects or retrofitting existing properties that would allow 5G to be delivered to homes because it’s simply too expensive to implement.” (Yahoo Finance)
- Amazon to Create 500 New Jobs in Mississippi as it Builds a 2nd Fulfillment Center in the State “Amazon.com Inc. said Monday it will create 500 new full-time jobs in Mississippi as it builds a new fulfillment center in DeSoto County, which is just south of Memphis. The pay for the new jobs will start at $15 an hour. The new fulfillment center, which will be the second in Mississippi, will be more than 1 million square feet, and will pick, pack and ship large items, including sports equipment, patio furniture pet food, bicycles and larger household goods. Amazon's stock, which slipped 0.2% in premarket trading, has lost 3.0% in premarket trading, while the Dow Jones Industrial Average has gained 8.2%.” (MarketWatch)
- What’s Behind Stepped-Up Demand for MOBs “Sure, an aging population is key to the growth of the medical office sector, but it’s a bit more complex than that, according to a new second-half 2019 report from Marcus & Millichap. For example, consider that the 2.7 percent increase in health-care services employment is running up against a shortage of qualified medical services personnel. That in turn favors the expansion of outpatient care—and that trend favors purpose-built medical office facilities, the report explains.” (Commercial Property Executive)
Five Must Reads for the CRE Industry Today (November 18, 2019)
Blackstone closes on its joint venture with MGM Resorts for the Bellagio sale-leaseback transaction, reports Hotel Business. MarketWatch looks at the five things to know about the Federal Reserve’s mortgage bond buying. These are among today’s must reads from around the commercial real estate industry.