2017 Top 50 Property Owners
While geopolitical, macroeconomic and real estate market uncertainty contributed to a modest slowdown in commercial real estate transaction activity to start off 2017, volume picked up as the year progressed, with prices remaining high and cap rates and interest rates still at historic lows. Investors are becoming more selective as the cycle continues to mature, although with ample capital available there are still certain markets and property types attracting investment.
The owners that topped the CPE-MHN 2017 Top 50 Owners ranking remain well diversified, as nine of the top 10 firms operate property in at least 5 separate asset classes. Clarion Partners took the top spot, with one of the highest portfolio values and total square footage in its owned portfolio. Tough competition for high-quality assets in the multifamily and office sectors, and the retail sector struggling with the impact of e-commerce, many real estate owners are looking to diversify their portfolios by investing in asset classes like industrial, self-storage and medical office to capture additional yield and long-term appreciation.
Geographical diversification also played a key role for many of our top-ranked firms in 2017. Most of the top owners operate assets across the United States and internationally. The growing interconnectivity of global markets allows and encourages real estate owners to grow their portfolio overseas.
As the current real estate cycle extends and many industry insiders question when the next downturn will occur, the leading owners should be well positioned to withstand a future market correction.
METHODOLOGY
The 2017 CPE-MHN Ranking of the Top 50 Commercial and Multifamily Owners utilized self-reported data for all firms. The ranking is a weighted formula based on a variety of factors (only a few of which are specified here), including the total square footage and number of units owned, owned portfolio value, historic performance and participation in property sectors, among others. The ranking represents what we feel is a logical balance between firm growth and market share, as well as property diversity.
| Rank | Company Name | Total Portfolio Value ($MM) | Total Owned (MSF)* | Multifamily Units Owned | Average Occupancy | Housing Diversity |
|---|---|---|---|---|---|---|
| 1 | Clarion Partners | 42,791 | 224.4 | 30,477 | 94.5 | M, L, St |
| 2 | Heitman | 34,377 | 154.2 | 33,501 | – | M, L, A, St, Se |
| 3 | Lincoln Property Co. | 16,700 | 135.0 | 59,980 | 90.0 | M, L, St, Mi |
| 4 | Principal Real Estate Investors | 34,920 | 185.0 | – | 91.3 | M, L, A, St |
| 5 | Hines | 44,492 | 123.0 | – | – | M, L, A, St, Se |
| 6 | AEW Capital Management | 23,612 | 96.8 | 33,152 | 85.0 | M, L, Se |
| 7 | CBRE Global Investors | 91,700 | 5,000.0 | – | – | – |
| 8 | AvalonBay Communities Inc. | 33,536 | 75.5 | 83,123 | 95.5 | M, L, A, St |
| 9 | TH Real Estate/Nuveen** | 68,827 | 144.0 | – | – | M, L, St |
| 10 | Invesco Real Estate | 28,600 | 95.0 | – | – | M, L, A |
| 11 | Brookfield Property Partners*** | 43,199 | 391.0 | – | 92.0 | – |
| 12 | Alliance Residential Co. | 15,000 | 86.4 | 96,000 | 94.0 | M, L, Se |
| 13 | Related Companies | 34,000 | 83.0 | – | 98.0 | M, L, A |
| 14 | UDR Inc. | 16,200 | 46.2 | 50,338 | 94.5 | M, L, A |
| 15 | Greystar Real Estate Partners | 17,600 | 72.3 | 80,386 | 82.8 | M, L, St, Se |
| 16 | Hunt Cos. Inc.† | – | 53.9 | 58,781 | 95.2 | M, L, A, Mi |
| 17 | Essex Property Trust Inc. | 23,000 | 54.0 | – | 96.4 | M, L, A |
| 18 | Edward Rose Building Enterprise | – | 54.0 | 60,000 | 91.5 | M, L, A, Se |
| 19 | Vornado Realty Trust | – | 36.0 | – | 96.5 | M, L, A |
| 20 | KBS | 11,003 | 39.7 | 4,165 | 91.0 | M, L, A |
| 21 | Duke Realty | 7,300 | 136.0 | – | 96.2 | – |
| 22 | VEREIT Inc. | 15,000 | 91.0 | – | 98.6 | – |
| 23 | American Realty Advisors | 8,130 | 29.1 | 4,585 | 90.8 | M, L |
| 24 | Kimco Realty Corp. | 13,800 | 84.0 | – | 95.5 | – |
| 25 | The Inland Real Estate Group of Cos. Inc. | 8,900 | 35.0 | 11,098 | 89.0 | M, A, St |
| 26 | Camden Property Trust | 10,200 | 48.4 | 53,771 | 95.2 | M, L |
| 27 | Balfour Beatty Communities | 6,500 | 45.4 | 50,472 | 94.0 | M, St, Mi |
| 28 | WNC | 5,700 | 45.9 | 51,049 | 97.0 | A, Se |
| 29 | AMLI Residential | 7,226 | 20.0 | – | 94.0 | M, L, A |
| 30 | Harbor Group International | 4,453 | 28.1 | 25,691 | 95.0 | M |
| 31 | FPA Multifamily | 3,750 | 22.3 | 24,750 | 95.0 | M, L, A, St, Se |
| 32 | TruAmerica Multifamily | 7,000 | 30.2 | 33,611 | 93.0 | M |
| 33 | Morgan Properties | 5,223 | 34.3 | 38,172 | 95.0 | M, L, A, St |
| 34 | Mack-Cali Realty Corp. | 3,830 | 26.2 | 5,825 | 89.9 | L |
| 35 | Gables Residential | 3,797 | 14.5 | 15,481 | 95.5 | M, L |
| 36 | Northland Investment Corp. | 3,500 | 23.0 | 23,378 | 94.2 | M, L |
| 37 | EdR Collegiate Housing | 3,600 | 14.4 | 15,800 | 92.7 | St |
| 38 | EastGroup Properties Inc. | 1,755 | 37.0 | – | 95.6 | – |
| 39 | Block Real Estate Services | 1,500 | 35.9 | 4,325 | 87.0 | M, L |
| 40 | Bell Partners | 3,327 | 16.6 | 18,145 | 93.1 | M |
| 41 | Bozzuto | 1,750 | 4.9 | 5,442 | – | M, L, A |
| 42 | Carroll Org. | 2,641 | 17.2 | 19,092 | 94.0 | M |
| 43 | Weidner Apartment Homes | – | 41.6 | 46,200 | 95.3 | M, L |
| 44 | MCR | 2,000 | 7.0 | – | – | – |
| 45 | City Club Apartments LLC | 1,661 | 8.9 | 9,636 | 95.0 | M, L |
| 46 | Brixton Capital | 1,000 | 11.6 | 1,800 | 90.0 | M |
| 47 | Passco Cos. | 2,000 | 9.8 | 10,870 | 94.0 | M, L |
| 48 | Taubman | – | 12.0 | – | – | – |
| 49 | Granite Properties | – | 9.0 | – | 82.0 | – |
| 50 | Ashley Capital | – | 24.0 | – | 92.0 | – |
*Total owned square footage includes multifamily units, using a conversion of 1 unit = 900 sf.
**Previously Reported as TIAA, TH Real Estate is an investment affiliate of Nuveen, which is the investment management arm of TIAA.
***Based on 2016 data †Hunt Cos.’ assets include its ownership (partial or complete), including those in which it exercises effective control over the asset.
SOURCE: MULTIHOUSINGNEWS.COM
