10 Must Reads for the CRE Industry Today (November 12, 2014)

10 Must Reads for the CRE Industry Today (November 12, 2014)


  1. Deutsche Bank Nears $2 Billion Property Sale “Deutsche Bank AG is close to selling most of a $2 billion portfolio of commercial real-estate loans to U.S. private-equity firm TPG, people familiar with the matter said. The deal is driven by an upswing in the U.S. commercial real-estate market, which will allow Deutsche Bank to post a profit on the sale, these people said.” (The Wall Street Journal)
  2. Google Snatching Up Silicon Valley Real Estate To Prepare For Massive Hiring Spree “Google is playing the real estate market like a game of monopoly out of what could be a massive hiring spree. The Mercury News is reporting that based on Google’s hiring patterns, it could add as many as 20,000 workers across Silicon Valley over the next couple of years. Most of Google’s big-time spending is outside of its Mountain View home base. It already bought six buildings in the Pacific Shores office complex on the Redwood City waterfront, and leased an entire campus under construction in Sunnyvale.” (CBS San Francisco)
  3. Walmart Memo Orders Stores to Improve Grocery Performance “Last month, the retailer issued an ‘urgent agenda’ memo to managers across the country pushing them to improve performance on ‘Chilled and Fresh’ items in its dairy, meat and produce departments, part of an effort by Walmart to stem long-sluggish sales. It also reflected customer complaints that Walmart has received in recent years as it has expanded offerings of organic foods and produce, often at cheaper prices than its competitors.” (The New York Times)
  4. Mall Will Fine Stores if They Don’t Open on Thanksgiving “Yet at least in one case, a group of stores doesn’t really have much choice in the matter. Walden Galleria, a mall near Buffalo, N.Y., decided that this year, it would open at 6 p.m. on Thanksgiving Day. That’s six hours earlier than last year, but still, other malls in the area are also opening at the earlier time. What’s bound to bring Walden Galleria plenty of grief, however, is the heavy-handed way it is prodding tenant retailers into opening at 6 p.m.: They’re being threatened with fines if they don’t go along with the plan.” (Time)
  5. Chinese Buyer of Waldorf Astoria Said to Plan $2 Billion IPO “Anbang Insurance Group Co., the Chinese insurer buying New York’s Waldorf Astoria hotel, is planning an initial public offering that could raise about $2 billion, people with knowledge of the matter said. The Beijing-based company aims to start the share sale as early as next year and prefers Hong Kong as a listing destination, the people said.” (Bloomberg)
  6. Brennan pulls off $404 million industrial property deal “Brennan Investment Group LLC cashed out of a big national industrial portfolio in a $404 million deal, capitalizing on fevered investor demand for warehouses and factory space. Joint ventures led by the Rosemont-based investment firm sold a major stake in a portfolio of 39 buildings stretching from New Jersey to California, according to public documents. The ventures sold the properties, which include five buildings in the Chicago area, to New York-based NorthStar Realty Finance Corp.” (Chicago Real Estate Daily)
  7. S&P Gives Real Estate Its Own Sector To Feed Investor Appetite “Bank of America and Wells Fargo will no longer live alongside Mack-Cali and Brookfield Property Partners — at least, not within the S&P’s financial sector. The index announced late Monday that it is breaking real estate out of financials and turning it into its own sector. The creation of real estate as its own stand-alone sector brings the S&P’s sector total to 11.” (Forbes)
  8. RXR Buys Into 530 Fifth Avenue With $200M From Morgan Stanley “RXR Realty received a $200 million loan from Morgan Stanley to help finance the acquisition of an office condo interest at 530 Fifth Avenue, Mortgage Observer can exclusively report. The five-year loan closed in late October, coinciding with the close of the $300 million condo buy, said RXR President and Chief Financial Officer Michael Maturo.” (Commercial Observer)
  9. Bucksbaum, Steiner Get $165M in Financing for Cincinnati Suburb Retail Center “A joint venture between Bucksbaum Retail Properties, L.L.C. and Steiner + Associates, along with financial partner Mount Kellett Capital Management L.P., received $165 million construction financing for Liberty Center, a 626,791-square-foot, retail town center development in Liberty Township, a northern Cincinnati suburb.” (Commercial Property Executive)
  10. Recapitalization: An efficient way to invest in multi-family properties “Many times in multi-family development, different parties have different investment timelines. For example, an investor likely has a short investment time horizon, while their development partner may wish to own the property for the long term. With recapitalization, the investment goals of both parties can be met. This has certainly been the case for us at Marquette Companies.” (REJournals.com)
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