As we move further into fall, traditionally a heavy activity period for the commercial real estate industry, there appears to be an increase in all kinds of new deals. In the past few days, Goldman Sachs issued a $400 million loan to shopping center REIT Developers Diversified Realty, while Starwood Capital Group agreed to buy billions of dollars in distressed mortgages from the government. Maybe we are about to turn the corner on the recent transaction freeze.
- Business Week provides details on Toys "R" Us' performance, as rumors of a possible IPO continue to spread. There's a video along with the story.
- Bloomberg reports that Goldman Sachs issued a $400 million loan to Developers Diversified Realty. The bank plans to sell CMBS bonds backed by the Federal Reserve Bank as part of the TALF program to finance the transaction.
- Our sister publication NREI notes that private equity real estate funds fell to a five-year low with a useful story and chart. In another NREI story, David Lynn, a high-level researcher with ING Real Estate, discusses the significance of current cap rate spreads.
- The private equity firm in charge of Duane Reade may be looking to buy a California discount grocery chain, according to The New York Post.
- But a focus on value may not be enough to ward off the ill effects of the recession. Another of our sister publications Supermarket News writes that wholesale club operator Costco had a disappointing fourth quarter.
- In another reminder that this is one heck of a downturn, The Wall Street Journal reports on the latest Reis statistics that show that vacancies at malls and shopping centers continue to break records.
- Fortunately, a dramatic pullback on new supply might help alleviate the problem, according to the CoStar Group.
- Still, there is a bit more deal-making going on. The New York Times reports that Starwood Capital Group and partners plan to buy $4.5 billion in troubled commercial real estate loans from the Federal Deposit Insurance Corp.
- Meanwhile, Naked Capitalism reports banks have been slow to acknowledge potential commercial real estate losses.