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June 20, 2024

New England's Largest Mall Faces Looming Trouble With $505M Loan Maturing

Seaport Hotel To Host Boston Affordable Housing Summit Aug. 1

The Natick Mall, a sprawling suburban shopping center larger than any other in the region, may run into issues this fall. 

Owner Brookfield Properties holds a $505M commercial mortgage-backed securities loan backed by a 1M SF central portion of the Natick Mall. Morningstar Credit has the loan, which matures in November, on its watchlist, and Senior Vice President David Putro said there is “lots of risk” that it could go into special servicing.

This risk comes after Wegmans closed its 134K SF store at the mall a year ago, with the popular grocery chain saying it was “unable to attract enough customers for our business model to work.”

New England's Largest Mall Faces Looming Trouble With $505M Loan Maturing

The grocer is still paying rent and has a lease through 2037, according to servicer commentary in Morningstar’s database, but Putro said the space being dark is one bad sign for the property.Another is that 64 tenants at the mall have leases expiring in the next 12 months, making up about…

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Developer Plans 375 Units On Suburban Site That Could Benefit From Mass. Rezoning Law

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A New Hamphshire-based developer proposed hundreds of housing units on a site that could be part of a rezoning effort to comply with the MBTA Communities law. Dale Development is planning 375 units of housing on several parcels on Elm Street in Amesbury, Massachusetts, according to a May 31 Massachusetts Environmental Policy Act…

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While Life Sciences Leasing Slumps, Evolving Investment Market Gears Up For Turnaround

Structural shifts in who is investing in the life sciences sector — and how much they’re planning to pay — suggest a growing critical mass of backers is preparing to invest after seeing improvement in the larger U.S. financial picture. It offers a sign of confidence in the long-term success of biotech and lab real estate, even as the larger life sciences leasing picture remains challenging.

Institutional actors and public investors are expanding their investments, and new entrants are increasingly using joint ventures as they get into the sector, according to a new CBRE report covering life sciences investment trends.

Over the last decade, investment by institutional players in the so-called alternative assets sector has grown from 1% to 6%, now totaling $56.8B, with the largest single share of roughly 33% going to life sciences. Investment volume in research and development properties was 68% higher between 2020 and 2023 than it was between 2016 and 2019. Even with venture capital drying up, outside investments have maintained a steady flow. 

While Life Sciences Leasing Slumps, Evolving Investment Market Gears Up For Turnaround

“In primary markets, we believe that the life sciences niche is increasingly being viewed as a normalized asset class and, in some states, an important driver of their local and regional economy,” BGO Vice President of Life Science Development Nick Cassaro said in an email. “We expect that there will…

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Asian Investors Always Buy The Dip In London. Not This Time

Asian Investors Always Buy The Dip In London. Not This Time  

Over much of the past two decades, when London real estate prices have dropped and competition reduced, Asian-based investors have stepped in to take advantage of opportunities in the UK capital. But with values falling sharply in 2023 and 2024, they are notable in their absence.

Asian-headquartered investment in London built steadily after the Global Financial Crisis, reaching nearly £8B in 2013, and peaked again in a wider post-Brexit mini slump to hit just shy of £8.3B in 2017, or 29% of all London deals, according to figures provided to Bisnow by MSCI.

But in 2023, as rates rose and investment volumes collapsed, the total was just £2.6B, or 18%. And in 2024, the figure stands at less than £135M to date — less than 2% of the £6.4B total deal volume.

So with repricing of assets across many sectors bringing more value reality to London’s real estate market, plus ongoing political upheaval and signs of interest rates cooling, why has London failed to attract Asia’s big hitters this time around?

The answer lies in macroeconomics, problems at home, challenges common to Europe as a whole and some specific to the UK market, and uncertainty in the sector Asian investors have typically focused on in the UK — offices. “There are multiple factors. Firstly, we’re still waiting for interest rates to come down, while…

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