10 Must Reads for the CRE Industry Today (October 28, 2014)

10 Must Reads for the CRE Industry Today (October 28, 2014)


  1. A new record: PNC Place sells for $1,075 a square foot “The $1,000 barrier has been broken: For the first time in history, a D.C. office building has sold for more than a grand a square foot. TIAA-CREF and Norges Bank Investment Management paid $392 million, or $1,075 a square foot, to buy PNC Place at 800 17th St. NW near Farragut Square. The sale was announced in a press release Monday; the price was recorded in D.C. land records.” (Washington Business Journal)
  2. Blackstone to seek $13 billion for global real estate fund : Sources “Blackstone Group LP, the world's largest private equity investor in real estate, is preparing to seek around $13 billion for its next flagship global real estate fund, in line with its predecessor fund, according to people familiar with the matter.Blackstone, which derived 45 per cent of its earnings from real estate in the first nine months of 2014, has started preliminary conversations with potential investors about the new fund and expects marketing documents to be ready in the next few weeks.” (Reuters)
  3. Private real estate returns 2.63% in third quarter “Private real estate returned 2.63% in the third quarter, as measured by the National Council of Real Estate Investment Fiduciaries Property index. The return was made up of a 1.31% income return and a 1.32% appreciation return. Hotels led all property types in the quarter with a 2.93% return, followed by industrial (2.92%), office (2.78%), apartment (2.53%) and retail (2.33%).” (Pensions&Investments)
  4. DDR reports improved third quarter, but analysts likely to focus on CEO search “Shopping-center landlord DDR Corp. reported improved third-quarter results Monday, generating higher funds from operations and turning a profit. Those numbers will be the subject of a Tuesday morning conference call with investors and analysts who track the Beachwood-based company. But don't be surprised if the pending departure of Daniel Hurwitz, the company's chief executive officer, and the search for his replacement end up dominating the discussion.” (Cleveland.com)
  5. CPPIB raises real estate commitments in Brazil to $2B with $445M new investments “he Canada Pension Plan Investment Board has announced a combined $445-million of investments in logistics and retail assets in Brazil in a string of moves that bring its real estate commitments in the South American giant to more than $2 billion. ‘Since making our first real estate investment in Brazil in 2009, CPPIB has become one of the largest investors in the sector with ownership interests in logistics, retail, office and residential assets or developments,’ Peter Ballon, managing director and head of real estate investments – Americas, said in a release Monday.” (Canadian Business)
  6. Podell: Retail Pop-Up Stores “Fill a Blank” “In the past few years, the term pop-up has gone from foreign to familiar. These stores are so commonplace, in fact, that one is likely to often see them all around town in the form of restaurants, hair salons and clothing stores and the like. Just what’s behind the success of this retail innovation? GlobeSt.com sat down with top broker Joanne Podell, vice chairman at Cushman & Wakefield, to find out more.” (GlobeSt.com)
  7. Madison Square Garden said to explore split into two companies “Madison Square Garden Co. is exploring splitting into two publicly traded companies to unlock value in the New York Knicks and New York Rangers sports franchises and buoy its entertainment business, people with knowledge of the matter said. MSG, controlled by the Dolan family, has been considering since July a plan to house its sports teams and cable networks in one company and move its real estate assets and its concert and entertainment business into another, said the people, who asked not to be identified because the information is private. An announcement may be made as soon as Monday, the people said.” (Crain’s New York Business)
  8. A $90 Million Condo Flip Shows What’s Wrong With Financial Capitalism “William Ackman is a wildly successful hedge fund manager. He oversees $17 billion of mostly other people’s money. Forbes estimates his personal net worth at $1.7 billion. These facts alone would make him a prime candidate to buy the penthouse condominium at One57, the new luxury tower on West 57th Street. And indeed, Mr. Ackman told The Times in a fascinating profile Sunday that he is the buyer of the 13,500-square-foot condo with an estimated price of $90 million. What is more shocking is what he plans to do with it.” (The New York Times)
  9. Dunkin’ Donuts to Offer Croissant Donut Starting Nov. 3 “The Dunkin’ Donuts chain, capitalizing on the cult-like demand for Dominique Ansel Bakery’s Cronut in New York, is introducing its own doughnut-croissant hybrid next week. The product will sell at selected shops for $2.49 starting on Nov. 3, said Justin Drake, a spokesman for Dunkin’ Brands Group Inc. The glazed, flaky ring will be made in limited quantities and served nationwide for a finite time, he said.” (Bloomberg)
  10. Kohl’s Drops After Saying Profit Will Be at Low End of Range “Kohl’s Corp., the third-largest U.S. retailer, fell the most in more than 11 months after saying annual profit will be at the lower end of its forecast, hurt by a sales slowdown toward the end of its third quarter. Kohl’s declined 6.7 percent to $54.65 at 9:45 a.m. in New York and earlier traded at $54.58 for the biggest drop since November 2013. The Menomonee Falls, Wisconsin-based retailer said yesterday that October sales ‘have been softer than the balance of the quarter.’” (Bloomberg)
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