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10 Must Reads for the CRE Industry Today (November 24, 2015)

10 Must Reads for the CRE Industry Today (November 24, 2015)


  1. Goldman Sachs Forecasts Four Rate Hikes Next Year “The Federal Reserve’s benchmark U.S. interest rate could rise twice as much as Wall Street expects in 2016. So says the prominent investment bank Goldman Sachs. The central bank is widely expected to raise the short-term fed funds in December, marking the first increase in almost a decade. But bond-market futures suggest rates will only rise an additional 50 basis points in 2016. Goldmans top economists assert the Fed is more likely to boost rates by 1% next year.” (MarketWatch)
  2. Target Pays Landlord RioCan $132M to Get Out of Canadian Leases “Target has reached a deal with one of its biggest former landlords that will see the U.S. retailer pay $132 million to formally get out of the obligations it had for the sites when it left Canada earlier this year. RioCan Real Estate Investment Trust says Target has paid $132 million, including $92 million which belongs to RioCan, under the settlement of a dispute over leases the retailer disclaimed as part of its retreat from the Canadian market.” (CBC)
  3. The Government May Soon Need to Rescue America’s Mortgage Giants Again “Temporary solutions have a way of becoming permanent. The fate of Fannie Mae and Freddie Mac, the two “government-sponsored enterprises” (GSEs) that stand behind much of America’s housing market, is a case in point. The GSEs, which buy American mortgages from banks and other originators, bundle them into securities and resell them to investors with a guarantee, are stuck in a technocratic no-man’s land. Their status has not yet been normalised after their first bail-out, but they may soon require a second.” (The Economist)
  4. Shrinking U.S. Shopping Malls Get Makeover “An era of relentless expansion for American shopping centers is coming to an end as a toxic brew of overbuilding, the rise of e-commerce and a wave of retailer bankruptcies force landlords to reimagine once-lucrative properties. Some owners are converting struggling malls into apartments, offices and industrial space, while others are turning big chunks of retail space into parks and playgrounds to keep shoppers interested.” (Wall Street Journal)
  5. Home Prices Rise 5.5% in Sept: S&P/Case Shiller “Home prices in 20 U.S. cities rose more than expected in September, according to the latest S&P/Case Shiller Home Price Index. The 20-city composite rose 5.5 percent year over year in September, compared with consensus estimates for a 5.2 percent rise. The S&P Case Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, was up 4.9 percent from the same time last year, ticking up at a slightly faster pace than August's 4.6 percent increase.” (CNBC)
  6. Should You Get a Real Estate License to Invest? “An early question many people have if they're getting serious about actively investing in real estate is whether to get a real estate license or not. After all, if you're out there buying and selling homes, it can be great to save the commissions and increase your income on every deal. Especially with fix and flip, there can be some decent savings if you can avoid using real estate agent commissions.” (Huffington Post)
  7. Public Advocate Releases Annual “Worst Landlords” List—With a Stumble “Public Advocate Letitia James released her annual "Worst Landlord Watchlist" Monday, listing property owners around the city who have racked up the most violations relative to the number of apartments they own. But the list included at least one landlord who should not have been on it. The list is designed to expose problematic property owners in the hopes they will fix up their buildings.” (Crain’s New York Business)
  8. These are the Best Cities for College Students “When high school seniors decide which college to attend, the academic and extracurricular offerings of certain universities are usually their top consideration. On Monday, the American Institute for Economic Research released another set of criteria that they may want to contemplate: the best cities for college students. Despite its extraordinarily high rent, San Francisco was the top city for college students among ‘major metro’ areas—those with 2.5 million residents or more.” (Fortune)
  9. Blackstone Adds to Growing MF Holdings “Blackstone Real Estate Partners VIII, an affiliate of Blackstone, has acquired a 16-property, 3,800-unit multifamily portfolio with Phoenix Realty Group. Valued at approximately $570 million, the properties are located in the Los Angeles Metro, San Diego, Denver and southern Florida markets. The portfolio assets were acquired from two closed-end private equity funds managed by PRG. Those funds had reached the end of their intended investment period, and the portfolio was marketed for sale.” (GlobeSt.)
  10. Cadillac Tower Ambitions Include Hotel Rooms, Office Space, Restaurant, Residential “Nearly 100 years ago, the 40-story Cadillac Tower in downtown Detroit was one of the tallest buildings in North America. Today, it is trying to regain its place among giants. Discussions between the owners, Brooklyn-based Capital Invest Alliance, and several undisclosed hotel brands are underway for a possible conversion of up to nine floors into hotel space, said Paul DeBono, vice president of Southfield-based Farbman Group, which leases the property to tenants and manages it.” (Crain’s Detroit Business)
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