10 Must Reads for the CRE Industry Today (October 16, 2014)

10 Must Reads for the CRE Industry Today (October 16, 2014)


  1. N.Y.’s $1.6 Billion World Trade Debt Is Record for Unrated Deal “A New York development agency plans to issue $1.63 billion of bonds this month for the 3 World Trade Center tower in Manhattan, in what is set to be the municipal market’s largest unrated deal. Developer Larry Silverstein is issuing tax-exempt debt for the 80-story tower through Liberty Development Corp., a subsidiary of the state’s economic-development agency.” (Bloomberg)
  2. More Disclosure Ahead for Non-traded REITs “Non-traded REITs would be required to provide more disclosure, and to provide it more often, under rule changes approved by the SEC. First proposed by the Financial Industry Regulatory Authority at the start of 2014, the changes now require broker-dealers to include a per-share estimated value for an unlisted direct participation program or REIT on customer statements. An earlier version of the proposal would have made disclosure of estimated values voluntary.” (GlobeSt.com)
  3. REITs a Cornerstone of UPS Pension Portfolio “Greg Spick, portfolio manager of real assets with the UPS Group Trust, joined REIT.com in October for an video interview to discuss his approaching to real estate investing. Spick helps manage the pension assets of the employees of delivery firm UPS. The pension fund has nearly $30 billion in assets. Real estate and real assets make up roughly $2 billion of the entire portfolio.” (REIT.com)
  4. Wal-Mart cuts sales outlook amid tough economy “Wal-Mart Stores Inc. cut its revenue outlook for its current fiscal year as it announced it is scaling back its expansion plans for its supercenters next year and stepping up investments in its online operations. The world's largest retailer, blaming an overall tough economy, now expects annual sales to be up 2 to 3 percent for its fiscal year ending in January. That is down from its earlier guidance of sales growth at the low end of a 3 to 5 percent range. Wal-Mart's diminished outlook increases concern about prospects for the critical holiday shopping season that kicks off late next month. It also comes on the same day that the government reported that September retail sales retreated from the prior month.” (The Associated Press)
  5. Blackstone Hires Ares Partner Bartling as Invitation CEO “John Bartling, a senior partner at Ares Management LP, will become president and chief executive officer of Blackstone Group LP’s Invitation Homes LP unit, the largest U.S. landlord of single-family houses. Bartling, 58, who was co-head of the global real estate group at Ares, will take over as CEO of Dallas-based Invitation Homes on Nov. 3, according to the company. New York-based Blackstone started the business in 2012, and Invitation Homes now owns 46,000 properties across the country. ‘This is a business that has come together very quickly and yet it’s one that’s in a great place to really now go to that next step,’ Bartling said. ‘I’m looking forward to taking a leadership role and taking it there.’” (Bloomberg)
  6. REITs Build Hopes on Low Interest Rate Environment - Industry Outlook “Real estate investment trust (REIT) investors who sulked last month due to weak performance should cheer up now. This is because, contrary to consensus expectations, benchmark treasury yields have coming down -- instead of going to the 3% level, 10-year treasury yields now appear on course to go below the 2% level. On top of this, we knew that the Fed was very cautious and will likely be even more so given the global growth worries. All of this has been a godsend for the interest rate sensitive REIT industry.” (NASDAQ.com)
  7. Fairway Shopping Around Manhattan Lease “Fairway supermarket chain may have gained attention for its expansion tear and accolades as a specialty retailer, but the company is looking to bail on at least one of its leases in Manhattan, according to sources with knowledge of the situation. The lease in question is at Jack Resnick & Sons‘ 255 Greenwich Street in the Financial District with other Fairway lease transactions possibly facing the same fate.” (Commercial Observer)
  8. Stone Brewing To Open $74M Facility in Richmond, Create 288 Jobs “Another major employer is coming to Richmond and the state of Virginia. Gov. Terry McAuliffe announced on Oct. 9 that Stone Brewing Co., the 10th largest craft brewer in the United States, plans to construct its East Coast production and distribution facility in Richmond’s Greater Fulton neighborhood. San Diego-based Stone Brewing will invest $74 million in the project, which calls for a 200,000-square-foot production brewery and distribution facility on a 14-acre site. Stone Brewing will also renovate a two-story, 30,000-square-foot building, transforming it into a destination restaurant spanning four acres.” (Commercial Property Executive)
  9. U.S. Builder Confidence Falls in October “The NAHB's is reporting today that after four consecutive monthly gains, builder confidence in the market for newly built single-family homes fell five points to a level of 54 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). ‘We are seeing a return to the mid-50s index level trend established earlier in the summer, which is in line with the gradual pace of the housing recovery,’ said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. ‘While there was a dip this month, builders are still positive about the housing market.’" (World Property Channel)
  10. J.C. Penney refocusing on customers’ wants “J.C. Penney says it’s back in the business of giving its solidly middle-income customers what they want. The 112-year-old department store chain has switched itself off from survival mode and put the spotlight back on growth. The fixes for a failed transformation, including a mended balance sheet, were put in place over the last 18 months under CEO Mike Ullman. Now new president and CEO-designee Marvin Ellison will start work at the retailer’s Plano headquarters Nov. 1, and a transition plan is ready to implement. There are ideas percolating to regain about $2 billion in sales and make Penney profitable in three years.” (The Dallas Morning News)
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