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10 Must Reads for the CRE Industry Today (December 15, 2015)

10 Must Reads for the CRE Industry Today (December 15, 2015)

 

  1. Inland Real Estate to be Bought for $1.07 Billion in Cash “Inland Real Estate Corp., a U.S. shopping-center landlord, agreed to be acquired by funds managed by DRA Advisors LLC for about $1.07 billion in cash. DRA Advisors will pay $10.60 a share for the Oak Brook, Illinois-based real estate investment trust, the companies said in a statement on Tuesday. That’s 6.6 percent more than Inland Real Estate’s closing share price on Monday. After the deal -- valued at $2.3 billion, including the assumption of debt -- Inland Real Estate will become a closely held REIT.” (Bloomberg)
  2. Related Companies Raises $1 Billion for Real Estate Fund “Related is expected to report on Tuesday that it had received equity commitments of more than $1 billion, surpassing a target of $850 million, for Related Real Estate Fund II. Included in the investment roster are sovereign wealth funds, public pension plans, endowments and family offices. Unlike some traditional real estate funds, which acquire assets and then pay other firms to develop them, Related does everything from start to finish.” (New York Times)
  3. Commercial Real Estate Boom Won’t End on Higher Rates “The commercial real estate boom that's sent rent prices soaring in places like New York and San Francisco this year won't end even if the Federal Reserve raises rates this week, according to one expert. "There's still massive liquidity. That liquidity is not going away anytime soon, and it's pointed right at the United States, whether it be U.S. investors themselves or foreign investors," said Brian Ward, president of Capital Markets at Colliers International.” (The Street)
  4. New York City Economist Warns of Recession in 2016 “Crain's asked New York City Independent Budget Office Director Ronnie Lowenstein for her outlook on the new year. What's your outlook for the city's economy? The most important indicator for us is job creation, and we go into 2016 with meaningful momentum. My guess is we'll see more than 90,000 new jobs in 2015, which are fewer than the 121,000 we had in 2014, although that was the most in any year on record going back to the 1950s. I think next year should be good, but probably not as strong as this year.” (Crain’s New York Business)
  5. Bernanke Says He Never Expected Rates to be at Zero for So Long “Former Federal Reserve Chairman Ben Bernanke is optimistic the U.S. economy can power through renewed global economic weakness and inflation will pick up, but said Congress has to be the first line of defense just in case the downward pressure is too much. On the eve of the likely first interest rate hike in nine years, Bernanke told MarketWatch the domestic economy is ‘pretty strong,’ resilient enough to withstand the headwinds from the weak global economy.” (MarketWatch)
  6. Millennials Are About to Kickstart a Home-Buying Boom “Investing icon Peter Lynch used to say that some of his best stock ideas came from observing everyday trends in stores and on the streets. Michael Mattioli, a portfolio manager with John Hancock Asset Management, thinks he’s found one. He’s been going to a lot more weddings lately. To Mattioli, a millennial in his early 30s, that means at least one thing: They’re going to buy homes. And demographic experts agree with him.” (MarketWatch)
  7. Developer Preps for Potential Downturn with New, Affordable Housing Arm “Residential developer HAP Investments, known for eye-catching and sometimes pinkish designs by architect Karim Rashid, is launching an affordable-housing arm, in part to offset a potential downturn in the market. The Manhattan-based firm announced Monday it hired Gary Gutterman, the former housing director at the Metropolitian Council on Jewish Poverty, to run its new division.” (Crain’s New York Business)
  8. Caesars May Sink Because of Alleged $3B Typo “Caesars in its 2008 debt agreement set conditions that would need to be met so it could strip the guarantee between the parent company and the gaming-operating subsidiary. In the debt agreement, it says it can strip the gaming subsidiary’s guarantees if: A) it stopped being a subsidiary of the parent, B) the company transferred substantially all of its assets out of subsidiary, “AND” C) it essentially prepaid the bonds.” (New York Post)
  9. Should a Real Estate Company Cash In on Climate Change Awareness “The COP21 conference last week made it clear that climate change is real and that we are passed the point of successfully solving it. Instead, we’re going to have to adapt to it and learn to live in the world with higher temperatures and drastic shifts in weather. While many are now looking at how to solve for less drastic outcomes, there are some looking to cash in on what’s now environmentally inevitable. Case and point – real estate group Higher Tides Realty. Higher Tides touts that they want to ‘turn the tide on global warming.’ In fact, the whole company is a fake.” (PSFK)
  10. AMC Entertainment Names Starwood’s Adam Aron as Chief Executive “AMC Entertainment Holdings Inc., the second-largest U.S. theater chain, named hotel executive Adam Aron as chief executive officer. He replaces interim CEO Craig Ramsey, who remains chief financial officer. Since February, Aron has been interim CEO at Starwood Hotels & Resorts Worldwide Inc., which is being sold for $12.2 billion. The 61-year-old executive starts at AMC Entertainment on Jan. 4, according to a statement on Tuesday. Since August, Ramsey has been filling in for former CEO Gerry Lopez.” (Bloomberg)
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