10 Must Reads for the CRE Industry Today (December 18, 2014)

10 Must Reads for the CRE Industry Today (December 18, 2014)


  1. Darden ‘Exploring Options’ for 1,200-Plus Sites in Real Estate Portfolio “Darden Restaurants Inc. is taking a closer look at ways it might be able to benefit from the more than 1,200 restaurant sites it owns or leases the land under. The Orlando-based restaurant chain in a Dec. 16 earnings conference call said its new board and management team have determined it's time for "exploring options" on the company's real estate portfolio nationwide, in an effort to better maximize its assets to drive shareholder value.” (Orlando Business Journal)
  2. Moody’s Downgrades ARCP Stock to Junk Due to ‘Continued Uncertainty’ at REIT “One day after American Realty Capital Properties Executive Chairman Nick Schorsch and the company’s other two top executives resigned in the wake of an accounting scandal, the REIT giant suffered another blow as Moody’s Investors Service downgraded its credit ratings to junk status because of the ‘continued uncertainty’ from the management shakeup and ongoing investigations and lawsuits.” (Commercial Property Executive)
  3. Rents Rise at Hottest Pace in Six Years “Annual rent inflation hit 3.5% in November — the hottest growth since November 2008 — up from 3.3% in October, the Bureau of Labor Statistics reported Wednesday. Rents blew past total annual consumer inflation, which rose just 1.3% in November, hit by dropping gas prices.” (MarketWatch)
  4. Ackman Says Pershing “Meaningfully” Built Fannie-Freddie Bet “His New York-based hedge fund firm is wagering that Congress or the courts will restore value to Fannie Mae and Freddie Mac securities after the companies were seized by regulators in 2008. Securities in both plunged after a federal judge threw out a lawsuit on Sept. 30 that would have forced the government to share the companies’ profits with private investors.” (Bloomberg)
  5. JPMorgan Buys Aviva’s Asia Holdings “J.P. Morgan Asset Management has acquired Aviva's Asia Pacific real estate platform, a direct real estate investment management platform operating in Australia, Japan and Singapore. The announcement was made Wednesday by both firms. With the transaction, J.P. Morgan Asset Management – Global Real Assets adds deep capabilities in these three markets to its existing presence in India and Greater China.” (GlobeSt)
  6. Larry Silverstein Feels ‘Pretty Damn Good’ About Downtown “The 83-year-old chairman of Silverstein Properties and master leaseholder and developer of the World Trade Center site invited Commercial Observer into his office on the 38th floor of 7 World Trade Center, motioning both in the direction of the existing and rising towers on the Trade Center site and the almost-topped out condo and Four Seasons hotel by Robert A.M. Stern at 30 Park Place. “It’s exciting as hell,” Mr. Silverstein said with his signature enthusiasm.” (Commercial Observer)
  7. Invest in Tiger Stadium Development for $100 “Developer Larson Realty Group intends to raise about 10 percent of the equity in the project through crowdfunding so that Detroiters can invest in their city. The money will be used to build the new residential and retail that is proposed along Michigan and Trumbull avenues and is expected to cost $33 million.” (Crain’s Detroit Business)
  8. San Antonio’s Multifamily Market Steady as More Apartments Under Construction “Texas' multifamily occupancy rates are continuing to climb, which shows apartment units remain popular among Texas renters and therefore, developers. CBRE reports Texas' occupancy rate hit 91.7 percent in the third quarter of this year, slightly up from the same time last year.” (San Antonio Business Journal)
  9. How RadioShack Could Lose 90% of its Value This Year “RadioShack Corp.’s (NYSE: RSH) shares traded at $0.33 Wednesday, down from a 52-week high of $2.79. One more tiny slip by management, lower same-store sales or ongoing fighting with its bond holders could push the shares low enough that the retailer will lose 90% of its value this year.” (24/7WallSt)
  10. Is the Shopping Mall Dead? Not So Fast… “The rise in online shopping may have raised concerns for retail property owners, but the chief executive at First Capital Realty (TSX:FCR) says he doesn't foresee the day brick-and-mortar shops vanish from cities. Although e-commerce will take a bite out of profits at shopping centres, it's unlikely to completely eradicate traditional shopping, Segal said.” (Huffington Post)
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