10 Must Reads for the CRE Industry Today (November 19, 2014)

10 Must Reads for the CRE Industry Today (November 19, 2014)


  1. Colony Financial Agrees $1.6 Billion Cobalt Capital Purchase “Colony Financial Inc. (CLNY) agreed to buy Cobalt Capital Partners, owner of 256 industrial properties across the U.S., for about $1.6 billion. Cobalt’s management team, led by Lewis D. Friedland, will continue the day-to-day operation of the business, Colony Financial said today in a statement. The deal is expected to close next month, the Santa Monica, California-based company said.” (Bloomberg)
  2. Single-Building IPO Is in Works “In the past year, the real-estate sector has seen a host of big commercial landlords like Hilton Worldwide Holdings Inc., Paramount Group Inc. and Store Capital Corp. turn to initial public offerings to raise money. One New York startup has a smaller-scale plan: taking individual buildings public.” (The Wall Street Journal)
  3. RCAP Execs Give Company Stock a Vote of Confidence “RCS Capital (RCAP) CEO Michael Weil is putting his money where his mouth is. Weil purchased 20,550 shares—worth about $250,000—of the company's stock on Tuesday, according to a Securities and Exchange Commission filing. Shortly after, CFO Brian Jones and COO Brian Nygaard picked up a combined $167,000 worth of stock, filings show. The news comes as RCAP faces regulatory inquiries related to accounting errors recently reported by sister company American Realty Capital Properties.” (WealthManagement.com)
  4. Paramount Raises $2.3 Billion in Record U.S. REIT IPO “Paramount Group Inc., an office landlord, rose in its trading debut, after raising $2.3 billion in the largest ever initial public offering for a U.S. real estate investment trust. The shares climbed 5.2 percent to $18.41 as of 10:04 a.m. New York time after the company sold them for $17.50 each. The shares are listed on the New York Stock Exchange under PGRE. Paramount, which plans to qualify as a REIT, is going public as investor demand for property trusts is soaring partly because they offer higher yields than some other securities, such as U.S. Treasury notes.” (Bloomberg)
  5. Walgreen guts real estate department, taps brokerage “Walgreen gutted its in-house real estate department in a cost-cutting move, bringing in a Texas brokerage to handle key issues related to the company's growing store portfolio. The Deerfield-based pharmacy giant recently laid off about 16 in-house real estate managers and outsourced the work to SRS Real Estate Partners out of Dallas, a Walgreen spokesman confirmed in an email. SRS will work on site selection and lease negotiations for new Walgreen stores, he added.” (Chicago Real Estate Daily)
  6. Plaza Hotel Sale Draws Crowd, but Deal Is Elusive “A blue-chip roster of real-estate investors, financial firms, and even a Grammy-winning rap artist are among the groups angling to buy New York’s famed Plaza Hotel. But after months of courting the hotel’s Indian owner, Sahara Group, would-be buyers face an unexpected problem: Sahara has been playing hard to get.” (The Wall Street Journal)
  7. Developers take second crack at redo of New Orleans' World Trade Center “Mayor Mitch Landrieu's administration plans to disclose Wednesday which developers want to take over the vacant former World Trade Center building in the city's latest attempt to rejuvenate the riverfront property. Two development teams on Tuesday said they're among the groups that responded to a city request for qualifications, the first in a two-step vetting process to lease out the city-owned, 33-story tower. Interested real estate developers had until last Friday to submit their names for consideration.” (NOLA.com)
  8. Forest City Ratner buys out its modular partner “An arm of developer Forest City Ratner Cos. will buy its partner's stake in the Brooklyn Navy Yard modular-construction facility that had produced units for the former Atlantic Yards residential project. That process ended late last summer when a lawsuit between the two parties brought operations to a standstill. The modular subsidiaries of Forest City and Skanska USA Building, itself a division of a Swedish construction giant, jointly made the announcement Tuesday morning. Word of the impending purchase had been reported Monday by the blog Atlantic Yards/Pacific Park Report.” (Crain’s New York Business)
  9. K.K.R. and Clayton, Dubilier Said to Plan Joint Bid for PetSmart “Three months after formally putting itself up for sale, PetSmart appears to have drawn takeover interest from at least two private equity firms. Kohlberg Kravis Roberts and Clayton, Dubilier & Rice, two prominent private equity shops, are preparing a joint bid for the retailer by early next month, a person briefed on the matter said on Tuesday.” (The New York Times)
  10. Dollar General may have to ax more than 4K stores “Dollar General may have to divest more than double the 1,500 stores it said it was willing to sell if it wants to gain regulatory approval to buy arch-rival Family Dollar, The Post has learned. The Federal Trade Commission may require the country’s No. 1 dollar store chain to divest more than 4,000 stores to win approval of its stalled $9.1 billion merger proposal, two sources close to the situation said Tuesday.” (The New York Post)
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