10 Must Reads for the CRE Industry Today (November 24, 2014)

10 Must Reads for the CRE Industry Today (November 24, 2014)


  1. Creating a Niche Beyond SL Green’s Real Estate Empire “Stephen L. Green is a household name in the real estate industry as founder and chairman of SL Green Realty Corp., New York’s largest office landlord. Less well known is his son Gary Green, who also plays an important role: He runs a company that keeps a big chunk of his father’s buildings clean and secure.” (The Wall Street Journal)
  2. Why Are Rockefellers Moving From 30 Rock? ‘We Got a Deal’ “In 2000, the Rockefellers sold off 30 Rock and nine other landmark Rockefeller Center office buildings in the 22-acre Art Deco complex to Jerry I. Speyer and the Lester Crown family of Chicago, though they retained their presence in the building by keeping one floor as a rented space. Now, they have decided to leave the building entirely. By this time next year, they will have vacated the 56th-floor aerie they have occupied since 1933 and moved to somewhat less rarefied headquarters across 49th Street.” (The New York Times)
  3. What's the Secret Behind RPAI's 10-Year Plan? “It was 18 months ago, or six quarters ago, as Shane Garrison expresses it, that Retail Properties of America, Inc., launched a tightly focused strategic plan. As the REIT prepares to swing into its second full year under the plan, Garrison, the company’s EVP, COO and CIO, expresses optimism about the plan’s outcome and the value it will deliver to investors.” (GlobeSt.com)
  4. Blackstone to Colony Face Rental-Bond Glut as Yields Rise “Bond investors are wresting higher yields from landlords in the fledgling business where U.S. rental homes are financed by credit markets. As the supply of debt backed by mortgages on homes for rent overwhelms demand, yields on the riskiest portion of the deals climbed last week to 5.3 percentage points over benchmark rates, from 4 percentage points in early August, according to Bank of America Corp. The first of these securities were sold last November by Blackstone Group LP’s Invitation Homes at a spread of 3.65 percentage points for the lowest-ranked piece.” (Bloomberg)
  5. Schorsch-Related Woes Could Alter Direct Investment Industry “The direct investment industry could see a changing of the guard as the dominant firms controlled by non-traded REIT magnate Nicholas Schorsch continue to suffer a crisis of confidence. Competing sponsors of direct investment programs will likely pick up some market share from Cole Real Estate Investments and American Realty Capital programs as some advisors pull back from those Schorsch-affiliated products.” (Financial Advisor)
  6. Schafer: Starved for returns, investors turn to real estate “Investors led by MetLife just bought the Normandale Lake Office Park complex for $368.95 million, and it’s safe to assume they won’t get nearly the return on their investment as did the ­previous owner, the legendary Sam Zell of Chicago. A broker involved with the recent sale politely declined to reveal the expected return, but informed speculation puts it at just over 6 percent.” (StarTribune.com)
  7. Ivanhoe Cambridge buys Seattle properties for $280 million “Ivanhoe Cambridge Inc., the real estate division of Canadian pension plan Caisse de dépôt et placement du Québec, and a partner bought two adjoining office properties in downtown Seattle for $280 million. The joint venture with Callahan Capital Properties bought 1111 Third, a 34-storey, 572,500-square-foot building; and Second & Spring, a five-storey, 135,000-square-foot property, Ivanhoe said Monday in a statement. The sellers weren’t disclosed.” (Montreal Gazette)
  8. CIM Group to Take Control of New York’s Trump SoHo Hotel-Condo “Real-estate investor CIM Group, a lender to the developers of New York’s Trump SoHo hotel and condominium, on Thursday won a foreclosure auction that will allow it to own the property, a CIM executive said.” (The Wall Street Journal)
  9. After $215 million apartment buy, New York firm has more to do here “After paying $215 million for a new apartment tower in downtown Chicago, Georgetown Co. is looking ahead to its next deals here, including a high-rise development in the works on State Street. The New York-based real estate firm said it closed yesterday on its acquisition of K2, a 496-unit building in the Fulton River District. Georgetown pursued the property, 365 N. Halsted St., because of its location, just a short walk from the emerging Randolph-Fulton Market neighborhood, which has recently attracted companies like Google and hotels like Soho House and Nobu.” (Chicago Real Estate Daily)
  10. Amazon Leases Office Space on Manhattan’s 34th Street “Amazon.com Inc. (AMZN), the world’s biggest online retailer, leased 470,000 square feet (44,000 square meters) at a midtown Manhattan property owned by Vornado Realty Trust (VNO) that’s across the street from the Empire State Building. The agreement, at 7 W. 34th St. in the Herald Square shopping district, is for 17 years, New York-based Vornado said in a statement yesterday. No additional details were provided.” (Bloomberg)
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