10 Must Reads for the CRE Industry Today (December 30, 2014)

10 Must Reads for the CRE Industry Today (December 30, 2014)


  1. Officials Call for WTC, Teleport Property Sales “While officials at the agency that controls 12,000 acres of land and 45 million square feet of office, industrial, retail and technical space have discussed real estate divestment before, the internal reform memo outlines a strategy for trimming the Port’s holdings at the World Trade Center and other sites within and around the five boroughs as part of a broader swath of changes.” (Commercial Observer)
  2. Colony Acquires $1.5B Cobalt Capital Portfolio “Colony Financial has completed the $1.6-billion acquisition of Cobalt Capital’s 256-property light industrial portfolio, and according to analysts at Sterne Agee, the buy will fair well for the company’s 2016 consensus. Colony purchased the portfolio with cash and debt, not new secondary equity as imagined, leading analysts to predict a 10% ROE projection on the new assets that will add $0.25-$0.30 per share to current 2016 consensus.” (GlobeSt)
  3. The Case for Maintaining a Strategic Allocation to Real Estate Assets “As investors continue to look for ways to diversify their portfolios away from traditional long-only stock and bond investments, real assets have become a popular alternative asset class. In fact institutional investors, such as leading endowments and foundations, have long used investments in real assets such as real estate, commodities, timber and energy as both a hedge against inflation and as a core diversifier.” (SeekingAlpha)
  4. CRE Opportunities Enticing More Residential Mortgage REITs “More residential mortgage REITs are looking to find a home in the commercial real estate arena in 2015. The parent company of Two Harbors Investment Corp., among the largest mortgage REITs (mREITs) in the country has hired three executives from Prudential Real Estate Investors to start a CRE division funded with $500 million in capital.” (CoStar)
  5. Shake Shack Files for IPO, Plans Massive Expansion “Shake Shack has some very big plans. The New York gourmet burger chain filed papers to go public on Monday, saying it would use the as-yet-undetermined amount of proceeds from the stock sale in part to grow the number of US stores from 36 to about 450.” (New York Post)
  6. Nicholas Schorsch Takes Another Step Back from Real Estate Empire “Investor Nicholas Schorsch is stepping back from two of the last publicly traded companies where he held leadership posts as disclosures of accounting irregularities continue to reverberate through his real-estate empire.” (The Wall Street Journal)
  7. Time is Running Out for RadioShack “The company is saddled with more than 5,000 stores, many of which it can't afford to keep open. Unfortunately for Radio Shack, the company is so cash-strapped that it can't afford to close them, either.” (CNN Money)
  8. Newark Sees Influx of New Developments “Newark is booming with development. More than half a dozen projects have secured financing, broken ground or have been completed in the former industrial hub in the past year, according to the Wall Street Journal. Newark has about 280,000 residents.” (The Real Deal)
  9. Why American Apparel Inc.’s Dov Charney Isn’t the Next Michael Dell or Steve Jobs “Quirky clothing retailer American Apparel (NYSEMKT: APP  ) just fired former CEO Dov Charney. But rumor has it he's trying to buy back the company he founded. This situation might look similar to instanced in which other CEOs stepped aside or were pushed out only to return later on to save the business they created, but that's where any similarities end.” (The Motley Fool)
  10. The Petro Panic and #CRE “I, like you, have read much of the coverage on recent oil price swings including Saturday’s Wall Street Journal report which discusses the fact that energy has gotten our economy through the economic malaise of the past couple of years. It’s simply amazing that crude oil prices have fallen almost 50% since June in the United States. Sub $60 a barrel oil will impact all, some for better and some for worse. Is there cause for a Petro Panic, as a recent Wall Street Journal article mused?” (The Commercial Tenant Resource)
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