Assessing TALF; Dollar General Files IPO (Monday's News & Notes)

There's a bit of a debate in the market about the efficacy of TALF and commercial real estate lending.

First Pacific Advisors LLC's Julian Mann expressed some skepticism about how effecting the TALF program will be for commercial real estate lending, even though it's been extended for another year. In its most recent offering, the Federal Reserve received $2.3 billion of loan requests for bonds. Mann said, “Taking $2.3 billion out of the market is not going to move the needle one iota. Clearly if there was conviction that a recovery was in sight, the availability of cheap nonrecourse financing would be irresistible.”

A story from Finance and Commerce, however, reaches a different conclusion. The story quotes experts that say the program merely needs time to work.

Here are some other retail and retail real estate news and notes from over the weekend.

  • looked at a report from Barclays Capital that sees Term Asset-Backed Loan Facility (TALF) demand outstrip supply.
  • Mish's Global Economic Trend Analysis blog examined the interesting trend of shoppers increasingly leaving items at the checkout counter after having last-minute second thoughts. This is leading to hire restocking costs for both brick-and-mortar and online retailers.
  • ChannelWeb reported that those looking to work at Microsoft's coming stores need to be prepared to do some heavy lifting. That observation is based on looking at job listings for the first couple of Microsoft stores, which will open this fall.
  • Dollar General filed for its initial public offering. Here's another story looking at the move. Our July cover story concluded that Dollar General was arguably the most successful of any of the private equity retail buyouts that occurred in recent years. The fact that KKR is taking the firm public again seems to vindicate that assessment. And speaking of private equity, Advent International is purchasing Charlotte Russe for $380 million.
  • The Miami Herald has a nice update on the trend of landlords finding alternative uses for vacant retail space. We hosted a Webinar on this topic earlier in the year. The Webinar can be accessed on demand.
  • Who would your guess for the most lucrative retailer on Manhattan's posh Fifth Avenue be? If you guessed Apple, you are correct. However, I'm guessing few people would have made that leap given all the pricey luxury retailers lining the retail mecca. The fact that Apple may be the strip's highest gross retailer is a testament to how powerful a merchant the company has become.
  • Speaking of Manhattan, discount department store chain Kohl's may be following competitor JCPenney into the borough. JCPenney opened its first location in Manhattan earlier this summer. Kohl's is reportedly looking a site about 20 blocks north of where JCPenney set up shop.
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