10 Must Reads for the CRE Industry Today (December 11, 2015)

10 Must Reads for the CRE Industry Today (December 11, 2015)


  1. Buffet Buys Stake in Sears’s Real Estate Spinoff; Shares Jump “Seritage Growth Properties, the real estate investment trust spun off from retailer Sears Holdings Corp., soared as much as 17 percent after billionaire Warren Buffett invested in the company. Buffett reported a passive holding of 2 million shares, representing an 8 percent stake, according to a regulatory filing on Thursday. Seritage began trading this year after Sears created the business to capitalize on its land holdings.” (Bloomberg)
  2. Chinese Invest Billions in Dallas-Area Real Estate “Chinese money has funded recent downtown Dallas tower sales. And capital from China is finding its way into everything from local apartments to single-family homes. Last year Chinese investors pumped more than $3 billion into U.S. commercial real estate investment, according to data from the commercial property firm JLL. And they bought more than $28 billion in American residential properties — more than twice what any other foreign buyer acquired.” (The Dallas Morning News)
  3. Capital Senior Living Told to Seek Sale by Red Alder Fund “Capital Senior Living Corp. is being urged by activist shareholder Red Alder to hire an investment bank to explore “strategic alternatives, including a sale” because the senior-housing provider is undervalued. The Dallas-based company, which has a market value of about $631 million, should take advantage of low interest rates and buyer appetite for cash-flow yielding health-care and real estate-oriented companies, fund co-founder Schuster Tanger wrote in a letter to the board.” (Bloomberg)
  4. CRE Cycle Heading for an End in 2016: Report “There’s been a lot of buzz lately about when, exactly, this current commercial real estate cycle will come to an end – when property values have truly peaked and the game winds down in a manner either gradual or, as seen in 2008, sudden and abrupt. Real estate research and advisory firm Green Street Advisors says the end is not far off, noting market signals that “have become notably more bearish” and calling for commercial property values to drift lower over the course of 2016.” (The Real Deal)
  5. Survey: How Can Retailers Improve the Store Experience? “Retailers looking to make their in-store customer experience more appealing can take a few basic technology-enabled steps. According to a new survey of 1,000 U.S. and Canadian consumers from iVend Retail and CitiXsys Americas Inc., 71% of respondents agree or strongly agree that shopping online is more convenient than shopping in a store, with 24% saying shopping in a store is a letdown after shopping online.” (Chain Store Age)
  6. Wells Fargo Scores a Hat Trick in Stuy Town Deal “What makes Wells Fargo’s involvement somewhat unusual is that it also played a big role under the old ownership. The bank is the master servicer on two CMBS loans totaling $1.75 billion that financed Tishman Speyer and BlackRock’s acquisition of Stuy Town in 2006, meaning it accounted for a large chunk of the $3 billion in debt on the property. After Tishman Speyer and BlackRock defaulted in 2010, special servicer CWCapital took control of the property on behalf of the lenders.” (The Real Deal)
  7. Senate Committee Passes Bill Aimed at Shedding Excess Real Estate “A Senate committee passed legislation Wednesday aimed at helping the federal government shed at least $500 million in excess property, the latest in a string of legislative efforts to help reduce the government's bloated real estate portfolio. The Homeland Security and Government Affairs Committee passed by bipartisan voice vote the Federal Asset Sale and Transfer Act, which if signed into law would establish a commission to identify excess properties for sale, with the proceeds reinvested to fuel additional sales over a six-year period.” (Washington Business Journal)
  8. Madison Marquette Taps RealCrowd for its Napa Valley Real Estate Campaign “Real estate investment firm Madison Marquette today announced the launch of Napa Valley’s ‘first-ever’ crowdfunded real estate investment opportunity on RealCrowd. Founded in 1992, Madison Marquette’s targets infill retail and urban mixed-use real estate in major US gateway markets. Madison Marquette specializes in enhancing the value of its projects through its integrated investment and services platform offering sourcing, acquisitions, asset management, leasing, property management, marketing, and development.” (Crowdfund Insider)
  9. Mayor de Blasio Seeks to Rebuild Momentum for Affordable Housing Plan “Mayor Bill de Blasio declared that affordable housing would be the cornerstone of his second year in office, a sweeping effort to generate tens of thousands of new homes and preserve the fabric of neighborhoods in fast-gentrifying New York. It was a signature issue for a populist mayor determined to make a more equal and inclusive city. But 11 months in, Mr. de Blasio, a Democrat, is struggling to find support for his housing plan from the very middle- and working-class communities that he pledged to help.” (New York Times)
  10. Why Chanel Paid a Record Price for its Rodeo Drive Location “Some analysts said Chanel's decision to buy its 11,500-square-foot store at the corner of Rodeo Drive and Brighton Way was partly about the retailer's long-term strategic goals and not a direct response to any surge in consumer spending on expensive clothes, watches and other luxury goods. Chanel owns another store next door to 400 N. Rodeo, the spot it just purchased, and the privately held company wanted to own both structures.” (Los Angeles Times)
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