10 Must Reads for the CRE Industry Today (July 1, 2015)

10 Must Reads for the CRE Industry Today (July 1, 2015)


  1. Calpers Pension to Sell $3 Billion of Real Estate Portfolio “The California Public Employees’ Retirement System, the biggest U.S. pension, plans to sell as much as $3 billion of its real-estate portfolio, a move that’s part of a broader plan to reduce costs, risk and the number of external investment managers. The $303 billion fund will sell about 12 percent of its $25.5 billion real-estate program of commercial, industrial and residential assets.” (Bloomberg)
  2. When Will Fed Raise Rates? Investors Could Know This Week “The early returns are looking more and more like September. This week's data on jobs, car sales and manufacturing could pretty much resolve the argument over when the Federal Reserve will begin to raise interest rates for the first time since 2006.” (MarketWatch)
  3. Office Market Is on a Slow Roll “U.S. office buildings are filling up—gradually. Employers took on 8.2 million square feet of additional office space in the second quarter, marking one of the stronger periods since the recession but a relatively modest expansion by historical standards, according to real-estate research service Reis Inc.” (The Wall Street Journal)
  4. Chambers Street to Buy Gramercy Property in Stock Deal “Chambers Street Properties agreed to buy Gramercy Property Trust Inc. in an all-stock deal that will create a real estate investment trust with an expected enterprise value of about $5.7 billion. The transaction values New York-based Gramercy at $25.36 a share, 8.5 percent more than Tuesday’s closing price.” (Bloomberg)
  5. Top 6 Cities for Highest Rent Growth “Average multi-family rents nationwide “continue to flourish at historically robust levels,” a situation highlighted by an increase of 6.3 percent over the past 12 months, according to a report released Monday by Yardi. Based on data from 100 U.S. markets, the June 2015 edition of Yardi’s Matrix Monthly also reported a 1.3 percent month-over-month rent increase in June, the largest increase during the current recovery.” (Commercial Property Executive)
  6. Larger Office Buildings in U.S. Significantly ‘Greener’ Than Smaller Buildings “The 2015 Green Building Adoption Index, a joint project of CBRE and Maastricht, found that 62.1 percent of office buildings in the U.S. greater than 500,000 square feet are considered "green" (holding either an EPA ENERGY STAR label, U.S. Green Building Council (USGBC) full-building LEED certification or both). In contrast, only 4.5 percent of all U.S. office buildings less than 100,000 square feet qualified as green.” (World Property Journal)
  7. Developer Takes Linear Approach to Miami Park “When River Landing Shops and Residences is completed in 2018, the development west of downtown Miami will bring more to the city than just another apartment building and shopping mall. The $300 million project will include an 850-foot linear park.” (The Wall Street Journal)
  8. Analysts Pick Winners and Loser in the Home Deal “As part of the deal, UDR secured six properties in the Washington D.C. area. The Highlands Ranch, Col.-based REIT entered the picture because Home had investors that would lose their tax protection if Home’s entire portfolio went to Lone Star. For those investors to continue to enjoy tax advantages, a REIT, which was UDR, had to enter the picture. Many analysts peg UDR as a winner in the deal because of the assets it was able to secure.” (Multifamily Executive)
  9. Developers Obtain $725 Million Construction Loan for Pencil-Thin Condo Tower on Billionaire’s Row “A partnership between JDS Development and Property Markets Group has received financing from AIG and Apollo Global Management to build 111 W. 57th St., a 1,438-foot-tall tower that will be the tallest residential building in the Western Hemisphere when it is completed in 2018.” (Crain’s New York Business)
  10. A REIT That Could Return 50% Investing Alongside Fortress “Last November (2014), New Senior Investment Group (NYSE:SNR) spun from Newcastle Investment Corp. by issuing 17.5 million shares generating proceeds of around $241 million. SNR is the only ‘pure-play’ publicly traded senior housing REIT that owns a portfolio of 124 properties (15,600 beds) in 32 states. Over 90% of SNR's properties are PRIVATE PAY independent and assisted living properties.” (Seeking Alpha)
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