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10 Must Reads for the CRE Industry Today (April 6, 2015)

10 Must Reads for the CRE Industry Today (April 6, 2015)

 

  1. Ventas Jumps After Announcing Ardent Buyout, REIT Spinoff “Ventas Inc. rose the most in three years after agreeing to buy a U.S. hospital company and saying it plans to spin off most of its skilled-nursing and rehabilitation properties into an independent real estate investment trust. The acquisition of Ardent Medical Services Inc. and an affiliate for $1.75 billion in cash will allow Ventas to diversify its holdings, Chief Executive Officer Debra Cafaro said on a conference call Monday.” (Bloomberg)
  2. Moving Beyond Student Housing “A private equity firm that’s been a leading investor in student housing is expanding into developing mixed use projects adjacent to campuses. Chicago-based Harrison Street Real Estate Capital has cut a deal to provide most of the equity capital in a $172 million project being developed next to Texas A&M University that’s slated to include rental apartments, two hotels and retail and office space.” (The Wall Street Journal)
  3. Party City Expects to Raise Up to $372 Million in IPO “Party City Holdco Inc, the largest U.S. party goods retailer, said it expects to raise up to $372 million in an initial public offering of its shares. The company, backed by buyout firm Thomas H. Lee Partners LP, said it expects the offering of 21.9 million shares to be priced at between $15 and $17 per share.” (Reuters)
  4. Real Estate Private Equity Help Returns in 2014 “The median return for six of the 10 largest U.S. public pension funds by assets was 6.36% in calendar year 2014, driven by strong returns in real estate, private equity and U.S. equities and fixed income. That figure is 73 basis points below the 7.09% median return for public plans with more than $5 billion in the Wilshire Trust Universe Comparison Service.” (Pensions & Investments)
  5. Dollar’s Surge Could Delay Fed’s Decision to Raise Rates “The dollar's steep ascent against many of the world's currencies since last summer could help delay the first Federal Reserve rate hike since 2006. In turn, that could affect mortgage and other long-term rates.” (Los Angeles Times)
  6. Brookfield to Up 245 Park Avenue Loan to $1B “Brookfield Property Partners is looking to increase the proceeds of a 2010 Bank of China loan on its block-long office tower at 245 Park Avenue, Commercial Observer has learned. The loan amount will grow to $1 billion from $800 million. The upsize deal, which will provide the borrower with an ‘additional cash-out advance,’ is due to close later this month, according to one person privy to the negotiations.” (Commercial Observer)
  7. The Tale of 2 Cheaply Valued Net Lease REITs “Within my Durable Income Portfolio (provided for subscribers of my Forbes Real Estate Investor newsletter) I have strategically over-weighted my REIT exposure with around 30% Net Lease and 32% Healthcare. Combined, these two asset sectors provide me with an almost equalized ‘income anchor’ in which I can build a solid foundation of sustainable dividend income.” (Seeking Alpha)
  8. The Dirt on NYC’s Soaring Land Values “Judged against almost every real estate measure in the market, land prices are through the roof — and that’s even as values for co-ops, condos, rentals and office space are soaring. But the question now is: How much higher can those prices go before buying land no longer makes sense for developers?” (The Real Deal)
  9. Cetera Gears Up for More Growth “After patching together a network of some 9,500 advisors across 11 broker/dealers and dealing with controversy over its sister company American Realty Capital Properties’ accounting errors last fall, Cetera Financial Group is getting its leadership and operations strategy in place to focus on growth.” (Wealthmanagement.com)
  10. Report Slams Wynn Board, Elaine Wynn “Elaine Wynn has hit a major speed bump in her bid to remain on the board of Wynn Resorts. But she has company in her misery following the report's description of ‘manifest failures of governance’ at the powerhouse hotel and casino operator.” (Bisnow)
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