10 Must Reads for the CRE Industry Today (June 28, 2016) Photo by Drew Angerer/Getty Images

10 Must Reads for the CRE Industry Today (June 28, 2016)

 

  1. How the U.K.’s Exit Benefits U.S. REITs “They are considered safe, and they offer yield. No wonder the stocks of real estate investment trusts ran in the opposite direction of the Brexit-bashed U.S. stock market Friday. Last fall, interest in REITs had begun to wane, as expectations of higher interest rates outweighed solid fundamentals in the real estate market. Now REITs, and the real estate underlying them, are the power play for the anxious investor.” (CNBC)
  2. Analysts Are Saying Fed Rate Hike May Wait Until 2017 “The aftershocks of Britain’s vote to exit the European Union has left Wall Street pondering when the Federal Reserve will raise interest rates — or even if the central bank will raise them at all. Some economists still think the Fed will raise rates this year, but probably not until the central bank’s last policy meeting in December shortly after the presidential election. That will give Fed bigwigs time to gauge the fallout from the votes in Britain and the U.S. Others think the central bank will wait until 2017.” (MarketWatch)
  3. Dick’s Bids for 17 Sports Authority Stores “Dick's Sporting Goods shares were caught up in the Brexit-induced selloff Monday, shedding more than 3.2% on weak volume despite the news that the company submitted bids on 17 Sports Authority stores nationwide. Other retailers bid on only one store, according to Reuters' sources. Sports Authority filed for Chapter 11 bankruptcy protection in March. After efforts to find a buyer who could continue to operate the company as a going concern failed, the Englewood, Colo.-based retailer decided to start liquidating its inventory.” (The Street)
  4. Study: Targeting Hispanics Worthwhile for Grocery Retailers “Hispanic shoppers enjoy grocery shopping significantly more than the average U.S. consumer, in part, because they consider the experience a social endeavor, according to a new study from Acosta Sales & Marketing and Univision, ‘The Why? Behind the Buy U.S. Hispanic Shopper Study.’ Sixty-eight percent of Hispanic shoppers, and 70% of Hispanic millennials, say they enjoy grocery shopping, compared to 59% of total U.S. shoppers.” (Chain Store Age)
  5. Fitch: New U.S. CMBS Supply Is Increasing Risks of Overbuilding “A report released last week from Fitch Ratings says the risk of Class A overbuilding is rising in some submarkets. Overall, the ratings agency says the concentration of high-end construction in 12 metro areas is intensifying and new supply in the student housing sector continues to break records. Despite this, Fitch doesn't expect the stress in multifamily asset performance to have an overall impact on ratings.” (Multifamily Executive)
  6. Airbnb and House-Sharing Firms Reduced New York Housing Stock by 10%--Study “Short-term rental companies like Airbnb are flooding New York City’s housing market, reducing available housing stock citywide by 10%, a new study has revealed. More than 55% of rooms or apartments listed on Airbnb in New York are illegal, according to the report, which is the result of research commissioned by two affordable housing advocacy groups: Housing Conservation Coordinators and MFY Legal Services.” (The Guardian)
  7. ‘Cool Streets’ to Influence Urban Retail “Retail's edgy present — and its mainstream future — are taking shape in a handful of urban neighborhoods across the country where food concepts like Whole Foods' 365 and Ahold's bfresh have taken root, according to a new report. The report, authored by Garrick Brown, VP of retail research for real estate firm Cushman & Wakefield, presents an index of the 100 top ‘Cool Streets’ — hip retail districts where retailers focused on millennial shoppers and their preferences for frugality and experience are "an incubator of sorts for what will be the hottest new retail concepts of tomorrow.’” (Supermarket News)
  8. JV Seals Parcel F Deal in San Francisco “F4 Transbay Partners LLC—a joint venture between Hines, Urban Pacific Development LLC, and Goldman Sachs affiliate Broad Street Principal Investments LLC—has completed the acquisition of the highly coveted Parcel F, a spot of land neighboring the Transbay Joint Powers Authority’s multi-billion-dollar Transbay Transit Center project. F4 paid TJPA $160 million for the high-profile site, where it will erect a mixed-use skyscraper.” (Commercial Property Executive)
  9. Feeling Jilted Over Stilted Skyscraper “A plan to jack a new condo tower 155 feet above its neighbors has sparked a millionaires' catfight over views, values and city building regulations. Manhattan developer JD Carlisle, partnering with Shanghai investor Fosun Group, is using a new and increasingly common trick in the architectural playbook, effectively putting its building on stilts and vaulting the property over the roofline of a neighboring hotel to give each of its apartments a view of the New York City skyline.” (Crain’s New York Business)
  10. $150M Refi for Prime Boston Hotel “Annapolis, Md.-based Chesapeake Lodging Trust recently closed on a $150 million fixed-rate mortgage for the 502-key Hyatt Regency Boston. Provided by MetLife, the 10-year loan carries a yearly fixed interest rate of 4.25 percent, with principal and interest payments based on a 30-year amortization. The Maryland REIT snapped up the downtown asset in 2010 from Hyatt Hotels Corp., for a price tag of $112 million. The transaction closed shortly after Hyatt had acquired the property from Host Hotels & Resorts, in February 2009, for approximately $113 million.” (Commercial Property Executive)
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