10 Must Reads for the CRE Industry Today (November 2, 2015)

10 Must Reads for the CRE Industry Today (November 2, 2015)


  1. U.S. SEC Approves New Crowdfunding Rules “U.S. securities regulators approved new crowdfunding rules on Friday, allowing start-up companies to raise money from mom-and-pop investors over the internet. Private companies were previously allowed to solicit only accredited investors - those with a net worth of at least $1 million, excluding the value of their homes, or annual income of more than $200,000. The Securities and Exchange Commission voted 3 to 1 to approve the measure.” (Reuters)
  2. MGM Move Could Be the Start of a Casino REIT Rush “On Thursday, MGM Resorts announced that the casino company will form a real estate investment trust. And according to one strategist, the move could be signaling a rush into REITs within the gaming industry. Larry McDonald, head of U.S. strategy at Societe Generale, said as revenue has declined, companies are looking for ways to increase returns. If MGM is planning to create a REIT, industry peers could soon follow suit, he said.” (CNBC)
  3. Cushman Hit With Round of Layoffs “Cushman & Wakefield went through a round of layoffs Wednesday that hit the marketing and research departments in what appears to be fallout from the merger with Chicago-based DTZ earlier this year, according to multiple sources. The cuts were national in scope, with as many as 250 employees affected across the country. Here in New York City, about 40 positions were cut, sources familiar with the matter said.” (The Real Deal)
  4. Fed Gives Banks $120 Billion Reason to Give Up on NYC “Seven years after the financial crisis, the ripples are still being felt in big-bank New York. Last week, the Federal Reserve proposed rules that would require JPMorgan Chase, Citigroup and the like to hold an additional $120 billion on their books to absorb potential losses. The idea is to raise the banks' ‘total loss-absorbing capacity,’ as the Fed not so elegantly put it. JPMorgan would be required to have loss-absorbing capacity equal to 23.5% of its assets.” (Crain’s New York Business)
  5. Peet’s to Acquire Majority Stake in Intelligentsia Coffee “Peet’s Coffee & Tea has signed an agreement to acquire a majority stake in the Intelligentsia Coffee roaster and retailer, the company said Friday, just weeks after announcing a deal to acquire Stumptown Coffee Roasters. Under the deal, Intelligentsia will continue to operate as a separate brand. The goal is to offer differentiated, craft-coffee brands with unique propositions to better capture that market, he said.” (Nation’s Restaurant News)
  6. New York’s Tishman Family Turns to Real Estate Tech Startups “New York’s Tishman family has been a major player for more than a century through the ups and downs of real estate. Now one of the family’s main branches—the one that ran Tishman Realty & Construction for decades—also is getting a good feel for the ups and downs of real estate technology startups. Many of its real estate tech investments, including those in building motion detectors and new building materials, have paid off nicely over the years.” (Wall Street Journal)
  7. Lionsgate Seeks to Build on its Library of Film Properties With Theme Parks “Three years ago, as the first ‘Hunger Games’ movie was breaking box-office records, Jon Feltheimer, the chief executive of Lions Gate Entertainment, asked his lieutenants to investigate ways to turn their hit movie into a Disneyland-style ride. Roller coasters and other rides based on the movies will anchor new theme parks in the United States and China.” (New York Times)
  8. Abercrombie & Fitch And Gap Could Be Retail Losers This Holiday Season “Teen retail chain Abercrombie & Fitch and apparel giant Gap pander to different demographics of shoppers, but both companies are primarily mall-based retailers. They are therefore especially vulnerable to online rivals such as Amazon.com. Their respective stocks have something in common as well: Both stocks are down double digits year to date. Shares of Gap have plummeted more than 34% so far this year, followed by a 24% decline in shares of Abercrombie over the same period.” (The Motley Fool)
  9. Legal Battle Over Mall Taxes Continues Following Recession “The City of Racine was ordered this summer to reassess Regency Mall’s 2009 property value. But the judge that issued that order may now end up having to determine a fair value for the property that year, and two other years, after the mall’s owner rejected the city’s reassessment in October. Any decision lowering the mall’s assessment would leave the city, and other taxing bodies like the Racine Unified School District, having to return tax dollars paid by the company in 2009, 2010, and 2011.” (The Journal Times)
  10. How Soon Will We See 2008 Again? “Are we headed for an overactive fourth quarter? Or will things slow? That depends, in part, on who you ask. GlobeSt.com asked Seth Gadinsky, owner of Miami-based Gadinsky Real Estate, a retail real estate services and consultancy, co-founder of H3 Hospitality, a specialty retail and entertainment consulting firm for the hospitality sector, and co-principal of Vintage Real Estate Investment Fund, a commercial real estate investment fund, for his thoughts.” (GlobeSt.)
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