10 Must Reads for the CRE Industry Today (December 2, 2015)

10 Must Reads for the CRE Industry Today (December 2, 2015)


  1. Here’s How Worried We Should Be about the Manufacturing Recession “The forecast for the U.S. economy calls for mostly clear skies, as analysts see faster economic growth and higher interest rates in 2016. But that doesn’t mean there isn’t a chance of stormy weather, and if it does arrive, its source may very well be the manufacturing sector. U.S. manufacturers are struggling mightily, according to the latest reading of national manufacturing data by the Institute for Supply Management.” (Fortune)
  2. Real Estate Crowdfunding Firm Offers Investors Variable Returns of Up to 10% “A crowdfunding company announced on Tuesday a new program that will offer investors variable rates of return topping out at 10%, based on the amount put into a project. New York City-based CityFunders, which launched in June, is one of several crowdfunding companies focused on real estate. Typically, a developer seeking millions of dollars for a project would never bother collecting something as small as a $5,000 investment.” (Crain’s New York Business)
  3. Moody’s Downgrades RCS Capital’s Debt “Moody’s Investors Service on Tuesday downgraded RCS Capital's (RCAP) corporate credit rating from B3 to Caa1 with a negative outlook. Moody’s cited the firm’s diminished ability to pay down its debt from ongoing activities and the risk that it may not find new investments for the change. ‘RCS has suffered from a series of adverse events that have diminished its franchise value and resulted in significant and ongoing financial difficulties,’ Moody’s said, in a statement.” (Wealthmanagement.com)
  4. Whole Foods Seeking $1B in Debt Offering “Whole Foods Market said it was seeking to raise $1 billion in a debt offering — twice the amount it previously intended to raise. The Austin, Texas-based retailer said it intended to use proceeds from the offering for general corporate purposes including a previously disclosed authorization to repurchase up to $1 billion in its stock. The offering was assigned a ‘BBB’ issue-level rating Monday by Standard and Poor’s — the agency’s lowest rung of investment-grade credit.” (Supermarket News)
  5. Investors Find Bargains at Europe’s Outlet Malls “During the dark days of Europe’s financial downturn, outlet centers outperformed most other retail types as euro-pinching shoppers found it hard to resist their offers of top brands at discount prices. That performance made an impression on institutional property investors. Now, with the European economy showing signs of rebounding, this niche property type is becoming increasingly appealing to institutional-grade investors, who also like the fact that outlet malls are priced below some of the more mainstream types of retail.” (Wall Street Journal)
  6. Delinquency Rates for Commercial Mortgages Dip in Q3 “According to the Mortgage Bankers Association's latest Commercial/Multifamily Delinquency Report, delinquency rates for commercial and multifamily mortgage loans continued to decline in the third quarter of 2015. ‘Commercial and multifamily mortgages are performing very well,’ said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. ‘Delinquency rates for loans held by life companies, Fannie Mae and Freddie Mac are all hovering near zero.’” (World Property Journal)
  7. JLL to Acquire Colliers International Baltimore in Latest Industry Consolidation “Commercial real estate firm JLL is finalizing a deal to acquire Colliers International Baltimore’s management and brokerage firms. The merger will create one of the largest commercial real estate property management and brokerage firms in the local market with at least 110 employees in offices located at 500 E. Pratt St. downtown and in Columbia. The deal is expected to close in January. Financial terms were not disclosed.” (Baltimore Business Journal)
  8. Resource Capital: What Kind of REIT Is This? “Resource Capital (NYSE:RSO) has taken a beating this year. It has historically been an astronomically high-paying dividend machine. However, the loss of capital has in many cases led to losses in the name, at least on paper, for many investors. The only ones who are on top would be those who have held long enough to recoup their entire investment via dividends. Now, I liked this name in the past but cited its incredible risk.” (Seeking Alpha)
  9. Why China Is Buying Into U.S. REITs “When on a consulting assignment a few years ago in Miami, I saw firsthand how Brazilians and Argentinians fleeing eminent currency devaluations in their countries bought condos and commercial buildings in Miami at a dizzying pace to preserve capital. Their efforts changed the skyline of that city, and have kept Miami’s economy humming. And now Chinese investors’ growing appetite for U.S. real estate is more confirmation of how the asset is a major opportunity for wealth preservation and income.” (Investing Daily)
  10. “Sperry Van Ness” Is Now Simply “SVN” “Sperry Van Ness International Corporation (SVNIC), one of the most recognized commercial real estate brands in the world, has announced that it is changing its signature brand name to SVN. The Sperry Van Ness brand was launched in 1987 out of a desire to improve the commercial real estate industry for all stakeholders. The company became a national franchise operation in 2003.” (Commercial Property Executive)
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