Raising capital by offering securities for commercial transactions is highly regulated. However, changes are afoot that might provide ways forward for property deals that would otherwise be held up for lack of access to capital markets. Learn about U.S. Securities and Exchange Commission Rule 506, and recent changes to it, on NAR’s The Source blog.
capital markets
REITs Are Poised to Pick Up the Pieces
The Wall Street Journal reports: Overleveraged private real-estate funds are gasping for money, but public property companies have been chugging down cash from the capital markets. Now, they are poised to emerge as more-dominant players when the commercial-property-market starts to recover.
REITs (real-estate investment trusts) are poised once again to pick up the pieces from the commercial-property bust. This year, they have tapped the stock market for nearly $15 billion in new equity and, this month have raised $2 billion in unsecured debt. The equity deals diluted shareholders’ ownership stakes, but positioned many REITs — such as mall owner Simon Property Group Inc. and warehouse landlord ProLogis — to avoid loan defaults and have buying power when distress hits the market. Read more at Real Capital Analytics.
