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Often hidden among the drumbeat of negative office stories in 2024 has been the slow but steady uptick in commercial real estate (CRE) transaction volume and the continued announcements of large CRE sales.
As we noted in June and July, each month brings a few dozen nine-digit sales announcements, underscoring the fact that institutional buyers have been steadily putting money to work over the summer.
A closer look at the data for August indicates that there were 24 sales of $100 million or more, with the average transaction valued at over $250 million. The count was down from 33 such sales the prior month, but the average transaction price was up from $191 million in July.
The August sales represented 22 unique buyers.
In addition to the 24 sales of $100 million or more, there were another seven sales between $90 million and $100 million.
The sustained growth in transaction activity and big-ticket sales is evidence that some buyers are actively deploying capital and are not waiting on Fed rate cuts to acquire assets.
The top announced sales were led by the $1 billion purchase of the Hyatt Regency Orlando by Ares Management and Rida Development. That price was a 42% premium to the 2013 sales price. Another key nine-figure hotel deal was made by Larry Ellison who paid $277 million for the 310-room luxury hotel, Key Eau Palm Beach Resort in Florida. These sales are noteworthy because for much of 2024, hotels have lagged other major property types in sales activity.
Other major sales in August included the Equity Residential purchase of an 11-property, 3,500-unit multifamily portfolio in Dallas/Fort Worth, Atlanta, and Denver as well as their $126 million purchase of a 320-unit apartment building in Atlanta.
Even in the office sector (yes, office), there was a noteworthy nine-figure deals by Fashion Nova, who acquired a Beverly Hills office for $118 million that will serve as its new global headquarters for the fashion retailer.
Download the full list of “big” buyers and tune in to our podcast, The CRE Weekly Digest, for more commentary on early dealmaking news and emerging opportunities.
