Retail Traffic reports: Though sales of significant retail properties have risen over the course of the summer, activity may be set to grow even further in the fourth quarter. Several current conditions allow industry professionals to believe this may be the case. “First, after waiting for more than a year to start dealing with the distressed assets on their books, lenders are feeling healthy enough to begin disposing of some of their troubled assets…institutional and private investors that have amassed war chests are ready to pounce on the deals that may come to light.” Industry experts admit that the “long-predicted tsunami of distress will likely never materialize,” but rather there will continue to be a “continuous trickle of distress assets being put on the market.” This “trickle” of distressed assets is tracked monthly in Real Capital Analytics’ Troubled Asset Radar by market and analyzed frequently in the firm’s weekly US Capital Trends publication. Dan Fasulo, managing director at Real Capital Analytics, cites several large portfolios sales that may be closed in the coming months as additional evidence of the retail sector’s improving position. After all, the summer rise in sales culminated with Simon Property Group’s long-delayed $2.3 billion acquisition of the Prime Outlets portfolio. “Portfolio deals serve as a sign of health because they show that buyers are finally able to secure the large loans necessary to complete portfolio acquisitions…Fasulo expects retail sales activity to accelerate throughout the fall.”
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