10 Must Reads for the CRE Industry Today (December 4, 2014)

10 Must Reads for the CRE Industry Today (December 4, 2014)

 

  1. Blackstone Hoping To Repeat Success With Real Estate Investment Strategy “Private equity giant Blackstone Group, long a prototype for finding opportunistic value in commercial real estate, is dusting off its playbook and reverting to an investment strategy it undertook in 2006 prior to the last peak in property values in 2007. The company, which made a fortune buying the former Equity Office Properties Trust and selling off most of its portfolio at the peak of the last office cycle, is adopting a similar arbitrage strategy, seeking to profit from the disparate value it sees in REIT prices and the value of the underlying real estate REITs own.” (CoStar)
  2. NorthStar Realty, Griffin-American Healthcare REIT II Close $4 Billion Merger “On Wednesday, Griffin-American Healthcare REIT II completed its previously announced merger with New York-based real estate investment trust (REIT) NorthStar Realty Finance Corp., a transaction valued at $4 billion. The announcement was made by Griffin Capital Corporation and American Healthcare Investors, both co-sponsors of Griffin-American Healthcare REIT II, which first announced in August that NorthStar Realty would acquire all of its outstanding shares at a price of $11.50 per share.” (Senior Housing News)
  3. ARA Acquisition Gives Brokerage NGKF an Entrée into Multifamily “Since they sold their company to BGC Partners in October 2011, Jimmy Kuhn, president of New York-based Newmark Grubb Knight Frank (NGKF) and Barry Gosin, CEO, have been working to beef up their capital markets team. But the two leaders of NGKF found that to be difficult. ‘It’s not easy to recruit top capital markets brokers,’ Kuhn says. So, when the opportunity came up to buy Atlanta-based Apartment Realty Advisors (ARA) and its 28-city operation, it was something Kuhn and the leadership at BGC couldn’t pass up.” (Multifamily Executive)
  4. RadioShack stocks plummet after lenders claim breach “RadioShack is getting static from its lenders again — and at the worst possible time. The cash-strapped electronics chain said it got a notice from lenders Salus Capital and Cerberus Capital Management that it had breached covenants on a $250 million credit line — an allegation that RadioShack called ‘wrong and self-serving.’” (New York Post)
  5. Dollar General trims sales view; 'committed' to buying rival “Dollar General Corp reined in its full-year sales forecast on Thursday and said it remained committed to buying Family Dollar Stores Inc, which would solidify its place as the No. 1 U.S. discount retailer. Dollar General will lose its top position if it fails to upend a merger agreement between Family Dollar and Dollar Tree Inc.” (Reuters)
  6. Bass Pro Shops to Add a Memphis Pyramid to Its Business Empire “For years, Memphis has been haunted by its Riddle of the Pyramid: What do you do with an empty 32-story glass-and-steel monument that was supposed to be this city’s answer to the Eiffel Tower or the Gateway Arch? That riddle has now been solved: The Pyramid, once a troubled arena for basketball and concerts, will be reborn as a hunting and fishing superstore hawking duck calls and tackle boxes.” (The New York Times)
  7. RCS Capital Remains Biggest Seller of Private REITs, CEO Says “RCS Capital Corp remains the securities industry's leader in raising money for privately traded real estate investment trusts despite a crisis that has hurt its stock and sales relationships, the company's chief executive said Wednesday. When industry rankings are published within the next week on equity raised for private REITs, RCS will remain ‘the industry's biggest fundraiser’ despite a suspension of hundreds of selling agreements, RCS Chief Executive Michael Weil said at a conference in Florida sponsored by Merrill Lynch.” (WealthManagement.com)
  8. Phillips Edison Malls Adopt Universal Loyalty Card “Phillips Edison & Company is making big changes to the loyalty programs of its shopping centers. Last month, the company announced that it is working with LOC Card, a consumer engagement platform from LOC Enterprises that aims to be a universal loyalty card that maximizes convenience.” (Shopping Center Weekly)
  9. Google buys 12 acres in Playa Vista, vastly expands presence in L.A. “Google Inc. is making a bold move to expand in Southern California, the nation's nexus of technology and entertainment. The tech titan has spent nearly $120 million on 12 vacant acres next to a historic hangar where aviator Howard Hughes built his famous ‘Spruce Goose’ airplane in the Playa Vista neighborhood near Marina del Rey. The land is zoned for nearly 900,000 square feet of commercial space that could house offices or studios, vastly more room than Google now occupies in a handful of buildings in Los Angeles County.” (The Los Angeles Times)
  10. InfraRed Fund Reaches $760M “Atlantic-Pacific Capital says it has completed the final closing of InfraRed Active Real Estate Fund III with total equity commitments of $760 million (£475M). The fund exceeded its £400 million target and was oversubscribed at final closing.” (GlobeSt.com)
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