The Chicago based firm, Ventas have announced that they will soon be completing the paperwork and official documentation for buying out the real estate property of the science and technology firm, Baltimore based Wexford. The real estate property that is slated to be bought out has been estimated to about 1.5 billion dollars.
The deal includes the real estate that exists with Wexford in St. Louis in the state of Missouri. The real estate deal has been going on for a while now. Wexford plans to shift base as they do not require the large organizational space in terms of real estate anymore.
The billion-dollar deal
There seems to be a common trend amongst many American firms in recent times. Many organizations seem to be moving inland into the deeper heartland of the United States of America. Simultaneously, with the growth of global business and the surge of outsourcing across the world, and the use of robust internet technologies, businesses are now drastically downsizing.
Similarly, Wexford properties in the St. Louis area is calculated at a little over four million square feet. Wexford is still an ongoing and proper business, and will not be shutting down any time soon. The headquarters will still be based in Baltimore, however, the company plans to downsizer their real estate property.
The 1.5 billion dollar deal between Ventas and Wexford will be a cash deal, in order to reduce the red tape formalities around the deal. Additionally, the deal will not be an entire let go by Wexford.
As part of the deal, the management and organization of the real estate property it will be jointly carried out by both Ventas and Wexford. Wexford will still maintain some management rights in the real estate property.
Current real estate trends
In many instances across the United States of America, there have been problems in acquiring large areas of land for the cause of doing business. The rising real estate market prices have turned out to be counterproductive for many American businesses.
This has sparked a new form of a trend, that has encouraged many businesses to share real estate property in order to carry out mutually beneficial business ventures in leased or jointly managed real estate properties. Such real estate market trends have been noticed primarily in the inner heartland of the United States of America.