10 Must Reads for the CRE Industry Today (November 13, 2014)

10 Must Reads for the CRE Industry Today (November 13, 2014)

  1. DTZ’s Lickerman Lays Out Strategy, Defends Firm Against Competitors “The gloves are off in the battle for third place in the commercial real-estate services industry. A venture led by private equity giant TPG that acquired DTZ last week has made clear that it wants to be the world’s third-largest provider, after CBRE Group Inc. and JLL. That ambition has set off even more chest-pounding and finger-pointing than usual in the fiercely competitive business. There are four other contenders for the number three position: Colliers International, Cushman & Wakefield and Newmark Grubb Knight Frank and Savills.” (The Wall Street Journal)
  2. CalPERS will find it tough to sustain strong real estate returns, consultant says “It is unlikely that CalPERS' $25.6 billion real estate portfolio will be able to sustain the strong returns produced in the last three years, said a report by the $296 billion pension fund's real estate consultant, Pension Consulting Alliance. The real estate portfolio for the California Public Employees' Retirement System, Sacramento, had annualized returns of 13.4% for the three-year period ended Sept. 30, 148 basis points above CalPERS' custom benchmark, CalPERS statistics show.” (Pensions & Investments)
  3. Samuel Zell Said to Be Among Bidders for Albertsons Stores “Samuel Zell has his sights on the grocery business. Mr. Zell, the Chicago real estate mogul, is among three bidders vying for a portfolio of more than 100 grocery stores being sold by Albertsons, several people briefed on the matter said on Wednesday.” (The New York Times)
  4. How giving workers the day off for Thanksgiving became a retailer promotional scheme “Not so long ago, the practice of a store staying closed on Thanksgiving was simply a given: one more holiday in which workers assumed they’d get some time off. Then, amid the corporate tug-of-war over Black Friday crowds, retailers began eyeing the juicy hours of Turkey Day as the best time to kick off their crucial holiday shopping seasons. The move drew both sales and backlash from shoppers, who worried the sacred day was being plowed beneath the tough work schedules of Black Friday creep. Now, a core crew of retailers is pushing back, loudly proclaiming it will stay closed on Thanksgiving – and hoping the moral high ground will pay off even more.” (The Washington Post)
  5. American Realty Capital Sues RCS Capital “American Realty Capital Properties has filed a lawsuit against RCS Capital Corp. over RCAP’s termination of the deal to acquire Cole Capital. Last week, RCAP called off the deal to purchase non-traded REIT sponsor Cole Capital from its sister company for $700 million, after ARCP announced a $23 million accounting error. ARCP responded, “RCS has no right and there is absolutely no basis for RCS to terminate the agreement.” (WealthManagement.com)
  6. ARC Hospitality Changes Terms of Equity Inns Hotel Deal “American Realty Capital Hospitality Trust Inc. amended the terms of an agreement to buy the Equity Inns hotel portfolio. ARC Hospitality will pay $1.81 billion for 116 hotels in 31 states, the non-traded real estate investment trust said today in a statement. That compares with an expected purchase price of $1.93 billion for 126 hotels announced on June 2.” (Bloomberg)
  7. New NAREIT Chair Says Educating Investors on REIT Investing His Top Priority “NAREIT Chair David Neithercut, the president and CEO of Equity Residential, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis. Neithercut's tenure as NAREIT's chair began this month. He described the current state of the REIT industry as “terrific,” noting that the absolute market cap of the REIT industry is approaching $900 billion and that the total enterprise value of the industry is approaching $2 trillion.” (REIT.com)
  8. Salesforce Buys 50 Fremont from TIAA-CREF “Salesforce has signed an agreement to purchase 50 Fremont St., a 41-story building located at the intersection of Fremont and Mission Streets in San Francisco's South of Market district. Salesforce is purchasing the property from financial services organization TIAA-CREF. GlobeSt.com learns that the purchase price of the property is $640 million and that the deal is expected to close in the first quarter of 2016. The tech employer has already hired more than 1,100 employees in San Francisco in 2014.” (GlobeSt.com)
  9. Towering Ambition: Tallest Wood Office Building “For the past 100 years, virtually all buildings over a few stories tall have been constructed out of concrete and steel. But some architects and builders are promoting an alternative they are positioning as environmentally friendlier: good old-fashioned wood. Last week, real-estate developer Hines Interests LP, based in Houston, unveiled plans to build a seven-story, wooden office building in Minneapolis near one of the city’s light-rail lines in an increasingly popular district downtown. Hines is calling the project T3, for timber, technology and transit.” (The Wall Street Journal)
  10. Normandale Lake Office Park flip made $101 million in two years “A joint venture between MetLife Inc. and Allstate Corp. paid $368.95 million for the five-building Normandale Lake Office Park in Bloomington. That price tag is $101 million more than the seller, a group led by Billionaire investor Sam Zell's Chicago-based Equity Group Investments, paid for the property in 2012.” (Minneapolis/St. Paul Business Journal)
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