10 Must Reads for the CRE Industry Today (November 3, 2014)

10 Must Reads for the CRE Industry Today (November 3, 2014)

  1. New York's One World Trade Center Opens for Business Today “It's ‘Opening Day’ in Lower Manhattan. Thirteen years after its predecessors were destroyed in the 9/11 attack, One World Trade Center is now officially open for business. 1-WTC-at-base-of-tower.jpgAs the building opens its doors today, its first tenant Conde Nast is now moving in. The publisher moves its 3,400 staffers into the 24 stories it is occupying, from floor 20 through 44.” (World Property Channel)
  2. Omega-Aviv Merger to Create $10 Billion SNF REIT Powerhouse “Omega Healthcare Investors (NYSE: OHI) and Aviv REIT (NYSE: AVIV) announced on Friday an agreement to merge the companies in a stock for stock transaction, creating a $10 billion real estate investment trust (REIT). The deal, which values Aviv at $3.0 billion, gives the combined companies a portfolio of 874 properties across 41 states and 83 operator relationships, creating a major force in skilled nursing.” (Senior Housing News)
  3. Investors Rethink American Realty-Linked REITs “No one raises more money from small investors seeking to profit in real estate than Nicholas Schorsch. His family of nontraded real-estate investment trusts has raised nearly $21 billion since 2008, primarily from individuals investing through brokerage firms and investment advisers. But a disclosure this week of accounting irregularities at his flagship company, publicly traded American Realty Capital Properties Inc., could spill over to his massive fundraising machine.” (The Wall Street Journal)
  4. One Square Foot of Fifth Ave Retail Space Is $3,400+ Per Year “And you thought your rent was out of control. The Real Estate Board of New York released its fall retail report this week, and—not surprisingly—rents have increased in 13 of 17 corridors compared to the same period last year. Neighborhoods that saw the biggest gains include East 57th Street between Park and Fifth Avenues with a 41% bump to $1,250 per square foot to year. Madison Avenue between 57th and 72nd Streets saw a 24% increase to $1,709 per square foot, and the Flatiron District (so hot right now) had a 23% increase to bring rents to $403 per square foot.” (Racked.com)
  5. The Rockefeller Group to Acquire Majority Interest in TA Realty “The Rockefeller Group is expanding its global investment management platform with the acquisition of the majority stake in Boston-based TA Realty L.L.C. The terms of the deal, expected to close by the end of the year, were not released.” (Commercial Property Executive)
  6. Uptown Park owner to be acquired in $763M deal “Houston-based AmREIT Inc. (NYSE: AMRE) will be acquired — but not by the company that offered to buy it a few months ago. The real estate investment trust said late Oct. 31 that South Carolina-based Edens Investment Trust will pay $26.55 per share for AmREIT in an all-cash deal valued at approximately $763 million, including debt.” (Houston Business Journal)
  7. Vornado to Sell Manhattan Office Tower for $605 Million “Vornado Realty Trust (VNO) agreed to sell a midtown Manhattan office building for $605 million and separately completed the purchase of retail space in New York’s most expensive shopping corridor. The real estate investment trust will sell 1740 Broadway, a 601,000-square-foot (56,000-square-meter) tower near 56th Street, for a price that amounts to about $1,000 per square foot, New York-based Vornado said today in a statement. The gain recorded on financial statements would be about $443 million.” (Bloomberg)
  8. Massey Knakal’s Midsize Rule “Some of the biggest names in the commercial real-estate-services business are angling to acquire Massey Knakal Realty Services, the boutique brokerage firm that dominates the market for midsize office, retail and apartment buildings. More than 10 firms have responded to Massey Knakal’s decision to hire Perella Weinberg Partners to sell a noncontrolling 49% stake or the firm in its entirety. Among the possible buyers: CBRE Group Inc., Cushman & Wakefield and DTZ, according to people familiar with the matter.” (The Wall Street Journal)
  9. Real estate funds shouldn't fear rising rates “he threat of rising interest rates is raising real fears about real-estate mutual funds. Investors have pulled money out of real-estate funds for two straight months, even though they remain among the year's best performers and pay bigger dividends than many stock funds. The worry is that rising rates will hurt growth for the owners of apartment buildings, offices and other commercial real estate, as well as limit demand for their stocks.” (The Associated Press)
  10. FBI scrutinizing Chicago landlord “Arthur Holmer, a Chicago landlord who has been accused in lawsuits of everything from bank fraud to not paying his Standard Club dues, soon could be facing an especially tough legal adversary: the U.S. government. Mr. Holmer is the target of a probe by the FBI, which is scrutinizing at least one of his real estate investments for potential criminal violations, according to two people with knowledge of the investigation.” (Crain’s Chicago Business)
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