10 Must Reads for the CRE Industry Today (April 21, 2016)

10 Must Reads for the CRE Industry Today (April 21, 2016)

 

  1. MGM Growth Properties Raises More Than $1 Billion in its IPO “MGM Growth Properties LLC shares climbed in their trading debut Wednesday, the latest sign that the IPO market could be starting to thaw. Shares opened at $22.75, after pricing late Tuesday at $21 each, the high end of its target range. The stock recently climbed 7.9% to $22.66. The real-estate investment trust, which invests in properties such as casino resorts, raised $1.05 billion in its initial public offering and sold 50 million shares.” (MarketWatch)
  2. Cabela’s Shares Spike on Buyout Report “Cabela's stock gained as much as 7.7 percent Tuesday after Reuters reported Bass Pro Shop and Goldman Sachs were teaming up to make a bid for the firm. By partnering with Goldman, Bass Pro receives the equity financing necessary to pursue Cabela's and makes such a deal more likely, given the potential cost savings and synergies a combination of the two U.S. sports and outdoor retailers would bring, Reuters said.” (CNBC)
  3. Jeff Green on Risk and Real Estate Investing “Before the 2008 financial crisis, Jeff Greene made massive bets against the subprime mortgage-backed securities market. He put everything on the line, and reaped hundreds of millions of dollars when the wagers came good. Now, at 61 with three kids, he’s less willing to put his neck on the line financially, but he’s still making a big dent in South Florida and New York City.” (The Real Deal)
  4. Weak Mall Traffic Spells Pain for Abercrombie, American Eagle and L Brands “There's no question that consumers have become increasingly comfortable shopping online. At best, a changing retail landscape has turned shopping malls into showrooms. At worst, online shopping is turning shopping malls into graveyards: As foot traffic in malls decreases, it's not just the malls that are in trouble, it's the stores within them -- particularly the ones that rely on impulse purchases. In its annual report, Simon Property Group (SPG) said that only three of its top 10 tenants in 1993 exist in their same form today.” (The Street)
  5. NHL Eyes New $2.1 Billion West Side Office Tower for HQ “The National Hockey League is in discussions to lease about 160,000 square feet at 1 Manhattan West, a $2.1 billion office tower being constructed by Brookfield Properties in Hudson Yards. Several sources familiar with the deal said the NHL, which has been searching for space for several months, has honed in on 1 Manhattan West in recent weeks. The office tower is rising at the corner of West 33rd Street and Ninth Avenue as part of a bigger $4.5 billion Manhattan West project.” (Crain’s New York Business)
  6. Fundrise Ditches Traditional Crowdfunding to Focus on REITs “Fundrise has abandoned the real estate crowdfunding model it pioneered – at least for now. The company will instead focus on managing its non-traded REITs, new filings with the Securities and Exchange Commission show. The strategic shift by one of the industry’s most visible startups comes as intense competition and an inflow of institutional investment have moved real estate crowdfunding away from the small investor-centric model it started off with.” (The Real Deal)
  7. Your Neighborhood May Have Toxic Air, Land and Water and You Don’t Know It “Southern California may have beautiful beaches and sunsets, but looks can be deceiving. The California real estate market of Los Angeles, Long Beach and Anaheim is the most polluted housing market in the U.S., with 321 zip codes, or 99% in the market having high, or very high levels of exposure to unhealthy air, polluted land or water and, if that wasn’t enough, dangerous drug labs, according to RealtyTrac, a real estate research firm.” (MarketWatch)
  8. Hines, Welltower Plan Seniors Housing in Midtown Manhattan “The New York office of Hines, along with Welltower Inc., a specialist in healthcare properties, have closed on the acquisition of a development site at 139 E. 56th St. The location is on the northeast corner of Lexington Ave. and 56th, which is  Midtown Manhattan. The partners will demolish the existing commercial structures on the site to make way for a new construction, 15-story senior housing property with retail at the base.” (Multi-Housing News)
  9. Buying Real Estate Notes for the Small Investor “There is a lot of information out there about buying notes as a real estate investment niche strategy. It can be very profitable, particularly if you approach it with more than one strategic goal. There are investors doing this now, and some are helping homeowners to keep their homes while profiting in the process. The approach taken most often is to buy a note on a distressed property and to either foreclose on it or to continue to work with the homeowner within the structure of the current mortgage and payments.” (Huffington Post)
  10. The Marijuana Business is Really the Real Estate Business “In the unstable and risky marijuana industry anything can happen--your neighbor could wage a Racketeer Influenced and Corrupt Organizations Act suit against you, your bank can tell you that you need to move your money to another institution, or you could lose your license for a small screw up. But in all of this uncertainty and risk, pot entrepreneurs are making one safe bet: buying real estate.” (Inc.)
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