10 Must Reads for the CRE Industry Today (November 6, 2014)

10 Must Reads for the CRE Industry Today (November 6, 2014)

 

  1. $1.22B DTZ sale closes; Cassidy Turley deal expected by year’s end “DTZ, the global  property services firm, today confirmed the close of its sale to the private investment consortium of TPG Capital (TPG), PAG Asia Capital (PAG) and Ontario Teachers’ Pension Plan (the TPG & PAG Consortium), and its beginning as an independent, privately owned global property services company.” (Real Estate Weekly)
  2. Seeing Similarities to 2007, CRE Industry Debates Whether We’re Early or Late in Current Upcycle “The year 2007 still casts a long shadow over today’s commercial real estate market. Nearly every discussion among commercial real estate pros involving cap rates, investment sales volume, price/square foot, loan underwriting, vacancy, etc. ties today’s values back to the previous market peak, just before it all collapsed after the bubble in housing values burst.” (CoStar)
  3. Colorado's Growing Marijuana Industry Creates Real Estate Rush “Jason Thomas with Avalon Realty Advisors, a commercial real estate firm that deals with the marijuana industry’s entrepreneurs, shows off the building’s features: a fully operational HVAC system, fire sprinklers, heavy duty warehouse doors, equipped with locks. It’s a blank slate for a marijuana grower, ready to be outfitted with thousands of lights and complex water delivery systems.” (Iowa Public Radio)
  4. A $495 million IPO in store for STORE Capital; Oaktree-backed REIT IPO sets terms “STORE Capital, a retail REIT formed by Oaktree Capital with 850 single-tenant properties, announced terms for its IPO on Wednesday. The Scottsdale, AZ-based company plans to raise $495 million by offering 27.5 million shares at a price range of $17 to $19. At the midpoint of the proposed range, STORE Capital would command a fully diluted market value of $2.0 billion.” (Nasdaq)
  5. For Schorsch, an Empire Under Siege “Critics say Mr. Schorsch’s model led him to overpay for assets and fall prey to mistakes. At American Realty Capital Properties alone, over the two years ended in December 2013, assets rose nearly 100-fold, to $20.5 billion from $221.6 million. Defenders say he is an innovator who has stood out by returning capital to investors sooner, and with better returns, than rivals.” (The Wall Street Journal)
  6. Pinnacle to Separate Properties After Pressure Orange “Pinnacle Entertainment Inc. (PNK), which owns and runs casino properties, will separate its operating assets and real estate into two publicly traded companies, following pressure from activist investor Orange Capital LLC. The plan will create a real-estate investment trust to be distributed to shareholders in a tax-free spinoff, with the operating assets remaining a separate entity, Pinnacle said. The Las Vegas-based company’s board approved the proposal, which is aimed at maximizing shareholder value, according to a statement today.” (Bloomberg)
  7. The growing popularity of organics is both good and bad news for Whole Foods “The organic grocery business is expected to explode as Americans become increasingly focused on healthy diets and fresh ingredients. And that’s both good and bad news for Whole Foods Market, which has long reigned as the nation’s largest organic grocery chain. While there’s increasing demand for the free-range meat, sustainable seafood and locally-grown fruits and vegetables the Austin, Tex.-based grocer is peddling, Whole Foods is also facing more competition than ever from the likes of Sprouts and Fresh Market and major retailers such as Kroger and Wal-Mart that are taking note of the category’s big growth opportunities.” (The Washington Post)
  8. A Pritzker Sets Out With Ideas of Empire “The SoHo apartment is actually a store, and everything in it is for sale. Called The Line, it is among the first ventures of Assembled Brands, Mr. Pritzker’s holding company. With $200 million under management and nascent operations in retailing and fashion, Assembled Brands is the vehicle for Mr. Pritzker’s sprawling ambitions. His new line of women’s clothing, Protagonist, is sold at Barneys. Next up is a foray into marketing and retailing at boutique hotels, another store in Los Angeles and the creation of new fashion brands.” (The New York Times)
  9. Qatar, Brookfield Make Canary Wharf Owner Takeover Bid “Qatar Investment Authority and Brookfield Property Partners LP (BPY-U) have made a preliminary joint takeover approach for Songbird Estates Plc, the London-based property developer said in a statement today. The board of Songbird, the majority owner of Canary Wharf Group Plc which controls the east London financial center, will consider the approach, the company said in a statement. The Qatar fund, which already owns 28.6 percent of Songbird, and Brookfield, which holds 22 percent of Canary Wharf Group, have until Dec. 4 to make an offer for the company.” (Bloomberg)
  10. Hawaii Employees approves $105m for non-core real estate “The Hawaii Employees’ Retirement System has committed $105m (€84m) to non-core real estate. The pension fund approved follow-on commitments of $40m each to Almanac Realty Investors’ Securities VII and AG’s Core Plus Realty Fund IV, as well as a $25m allocation to Prudential’s Senior Housing Partners V fund.” (I&P Real Estate)
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