10 Must Reads for the CRE Industry Today (October 20, 2014)

10 Must Reads for the CRE Industry Today (October 20, 2014)


  1. DDR Corp., Blackstone close on $1.9 billion shopping-center deal through joint venture “DDR Corp. and the Blackstone Group have purchased 71 shopping centers in a $1.93 billion transaction. The companies said Monday that their new joint venture - their third such partnership - wrapped up a portfolio acquisition from American Realty Capital Properties Inc., a Maryland real estate investment trust. Blackstone and DDR announced the deal in June.” (Cleveland.com)
  2. Stuyvesant Town, a Symbol of the Downturn, is Rising in Value “Here’s some good news about Stuyvesant Town and Peter Cooper Village, the sprawling Manhattan housing complexes that became a symbol of the downturn when they ran into financial problems in 2010. The debt servicer on the properties has increased their appraised value by $100 million, according to Trepp LLC, a firm that tracks the commercial real estate bond market.  The complexes, that include about 11,200 apartments, are now appraised at $3.5 billion, compared with $3.4 billion in September 2013, Trepp said.” (The Wall Street Journal)
  3. JPMorgan Chase Seeks Incentives to Build New Headquarters in Manhattan “City and state officials are negotiating with JPMorgan Chase over a potential deal in which the nation’s largest bank would build a vast $6.5 billion corporate campus with two high-rise towers in the new commercial district on the Far West Side of Manhattan. The talks, which involve one of the largest real estate complexes for a single company in New York City history and a large package of incentives for Chase, have reached a feverish state after nearly falling apart this week.” (The New York Times)
  4. Q&A: Gary Otten, Head of Real Estate Debt Strategies at MetLife “Mortgage Observer talked to Mr. Otten, managing director and head of real estate debt strategies for MetLife Real Estate Investors, about outsmarting recessions, his team’s recent gains, and the appeal of fortress malls as lending assignments.” (Commercial Observer)
  5. Starwood Closes Acquisition of 7 Malls From Taubman for $1.4B “After the retirement of $623 million of property-level debt and accrued interest and $44 million of transaction costs, net cash proceeds were $736 million, of which Taubman’s share was $716 million. The properties will be managed by Starwood Retail Partners, using the existing onsite management teams. Starwood Retail Partners will also perform all leasing services and, in conjunction with Starwood Capital Group, asset management functions.” (Commercial Property Executive)
  6. Virginia Retirement, LaSalle in $575m industrial joint venture “Virginia Retirement System and LaSalle Investment Management have launched a $575m joint venture to build US industrial properties. The pension fund told IP Real Estate it was committing $200m in equity to the LaSalle VA Industrial JV. The partnership will develop industrial warehouses in select US markets. Virginia would not comment on which markets the venture would focus on.” (I&P Real Estate)
  7. Three Reasons Amazon Can Succeed in Brick-and-Mortar Retail “Amazon is “piloting” holiday pop-up stores this holiday season, with two confirmed locations in San Francisco and Sacramento, along with what may or may not be a permanent space in Manhattan. While theoretically Amazon is going to let the pilots run their course, analyze the results, and then possibly move forward with a rollout of more permanent brick-and-mortar stores, most observers expect the pilot is the first step in an already determined strategy to build a physical presence. Assuming this is the case, here are three reasons why Amazon can most assuredly succeed in brick-and-mortar retail.” (Chain Store Age)
  8. Fannie Mae Prices $1.32B REMIC with Floating Rate Collateral “Fannie Mae has priced its tenth Multifamily DUS REMIC this year for a total of $1.32 billion. This particular securitization stands out because it is the second time the GSE used a product that allowed it to provide competitive floating-rate funding to multifamily borrowers. Called ARM 7-6, the product is very flexible. This securitization was well received by investors, according to Josh Seiff, Fannie Mae VP of Multifamily Capital Markets.” (GlobeSt.com)
  9. Sears Will Lease Retail Space in Northeast to U.K.’s Primark “Sears Holding Corp. (SHLD), the unprofitable department-store chain seeking fresh ways to raise money, will lease space to Primark Stores Ltd., a British budget-clothing retailer that’s expanding in the U.S. Primark will set up shop in seven Sears stores in the Northeast, according to a statement today. Separately, Hoffman Estates, Illinois-based Sears announced a rights offering that could generate as much as $625 million for general corporate purposes.” (Bloomberg)
  10. FHA is set to return to anti-house-flipping restrictions “Can you still do a short-term house flip using federally insured, low-down payment mortgage money? That's an important question for buyers, sellers, investors and realty agents who've taken part in a nationwide wave of renovations and quick resales using Federal Housing Administration-backed loans during the last four years. The answer is yes: You can still flip and finance short term. But get your rehabs done soon. The federal agency whose policy change in 2010 made tens of thousands of quick flips possible — and helped large numbers of first-time and minority buyers with moderate incomes acquire a home — is about to shut down the program, FHA officials confirmed to me.” (The Los Angeles Times)
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