10 Must Reads for the CRE Industry Today (October 23, 2015) Photo by Lo Ka Fai/China Photos/Getty Images

10 Must Reads for the CRE Industry Today (October 23, 2015)

 

  1. Starwood Capital, Milestone to Buy Apartment Owner Landmark “Starwood Capital Group and Milestone Apartments Real Estate Investment Trust agreed to buy Landmark Apartment Trust Inc., an owner of multifamily properties in the southern U.S., in a deal valued at $1.9 billion, including debt. A Starwood and Milestone-owned entity called Monument Partners will acquire the landlord for $8.17 a share, Landmark said in a statement Thursday.” (Bloomberg)
  2. Real Numbers on Stuy Town Sale, Office and Apartment Rents “The private-equity giant Blackstone Group is buying the Stuyvesant Town-Peter Cooper Village for $5.3 billion—essentially the same price Tishman Speyer paid for the housing complex in 2006. At least that is one way to look at the transaction. Another measure of the riskiness of the deal is that adjusted for inflation, Blackstone is actually paying less than Tishman, whose 2006 deal would have been worth $6.4 billion today.” (Crain’s New York Business)
  3. Why Your Favorite Retailer Didn’t Come Back from Bankruptcy “It's never good when a company has to resort to bankruptcy as a last-ditch effort for profitability. But for players in the retail industry, things are even more dire. According to a new study by AlixPartners advisory firm, 55 percent of all U.S. retailers that have filed for bankruptcy over the past 10 years have ended up in liquidation. By comparison, less than 5 percent of nonretail filings over that period have had the same result.” (CNBC)
  4. CalPERS is Slowly Digging its Real Estate Portfolio Out of a Big Hole “The Achilles' heel of the vast CalPERS fund has been its real estate portfolio, but there are signs that the long-troubled segment is finally turning around. Investment returns for the California Public Employees' Retirement System have been dragged down by its $27-billion investment in office buildings, housing developments, warehouses and shopping centers. By the fund's own admission, it was nothing short of a disaster area.” (Los Angeles Times)
  5. The Cities With the Highest Rent for Prime Office Space “Hong Kong is the most expensive city worldwide to rent prime office space, according to Knight Frank’s Skyscraper Index. The annual rent for a square foot of office space in one of Hong Kong’s towers amounts to $255.50. In second placed New York City, renting a square foot of high-rise office space would cost $153 – over $100 less than in Hong Kong. Even though rents are expensive in Hong Kong and New York, they grew at a rate of only 2 percent in the six months to June.” (Forbes)
  6. ARC Hospitality Resumes Buying Binge “It has almost seemed like American Realty Capital Hospitality Trust Inc. was buying hotels like were those little red plastic jobbies on a Monopoly board, and now it’s really happening. In the first tranche of what will eventually be a hotel acquisition surge worth nearly three-quarters of a billion dollars, the REIT has closed on a $150.1 million purchase of 10 hotels from Summit Hotel Properties, ARC Hospitality announced Tuesday.” (Commercial Property Executive)
  7. Private Investors Dominate So Far in 2015 “Last month’s Real Capital Analytics analysis of 2015 apartment sales data showed that private investors account for 69% of deal volume in the garden segment. International investors pulled about 9% of these transactions, while institutional investors captured about 10% of all market share. In the mid- and high-rise segment, which tends to attract more professionally managed capital, private investors secured 49% of all transactions.” (Multifamily Executive)
  8. Dunkin’ Brewing Up Impressive Growth “Dunkin’ Donuts isn’t letting lackluster sales in its most recent quarter stand in the way of store expansion. The coffee chain, a division of Dunkin’ Brands Group Inc., on Thursday said it is on track to add between 410 and 440 net new U.S. stores this year. The expansion represents greater than 5% net new locations. Globally, the company -- which also owns Baskin-Robbins -- expects to open between 615 and 750 net new restaurants across the two brands.” (Chain Store Age)
  9. The 11 Largest EB-5 Projects in America “The EB-5 Program allows for foreign investors to have stakes in US developments while also reducing costs for US developers and helping to create regional jobs. So far, $3.7B has streamed into major US cities, such as NYC and San Francisco. Here are 11 of the largest and most important projects funded by EB-5 in the country.” (Bisnow)
  10. Here are the Seven Deadly Sins of Investing—in Cartoon Form “Aberdeen Asset Management has been getting into the Halloween spirit. Mike Turner, the head of multi-asset investment solutions at the $480 billion fund manager, took to the web on Wednesday to caution investors against seven critical mistakes they can make while investing. Turner drove the point home by pairing each lesson with a fun, 30-second cartoon snippet framed around the seven deadly sins: greed, envy, lust, gluttony, sloth, wrath, and pride.” (Business Insider)
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