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10 Must Reads for the CRE Industry Today (September 18, 2015)

10 Must Reads for the CRE Industry Today (September 18, 2015)


  1. Fed Leaves Interest Rates Unchanged “The Federal Reserve punted on Thursday, announcing it would keep interest rates near zero as officials assess the impact of tighter financial conditions and slower global growth on the domestic economy. The Fed’s decision, widely expected by investors, showed officials still lack confidence in the strength of the domestic economy even as the central bank has entered its eighth year of overwhelming efforts to stimulate growth.” (The New York Times)
  2. Under the Hood of U.S. Housing Starts Is Tamer Rent Inflation “Here’s one key takeaway from the Commerce Department’s report Thursday in Washington that showed housing starts fell in August, indicating the real-estate recovery will take time to evolve. It also showed the number of buildings with five or more units under construction climbed to the highest level since December 1974.” (Bloomberg)
  3. Some $3 Billion Worth of Construction Projects Started in the First Half of 2015 “Nearly $3 billion in construction projects were started during the first half of 2015 by New York City's public and private institutions—the best start to a year since 2009. The figure was up $796 million from the same period in 2014, a 269% increase, according to a New York Building Congress analysis of construction data from Dodge Data & Analytics.” (Crain’s New York Business)
  4. Criticized by Trump, Carried Interest Tax Loophole is Vulnerable “Give Donald Trump credit for this: The Republican presidential candidate has done more to put a stake in the heart of the carried interest tax loophole in the last month than the Obama administration has in the last six and a half years. That’s not for want of trying by the White House. Yet it lives on, lining the pockets of billionaire financiers and hedge fund and private equity managers by giving them preferential tax treatment.” (The New York Times)
  5. Years After the Real Estate Crash, Renters Are Still on the Rise “Nearly a decade after the housing crash, homeownership is still waning and renting is on the rise, according to U.S. Census data released Thursday. The homeownership rate fell to 63.1% in 2014, down from 63.5% in 2013, according to an analysis of the American Community Survey data prepared by Jed Kolko, a senior fellow at the Terner Center for Housing Innovation at the University of California, Berkeley.” (Wall Street Journal)
  6. The Art of the REIT Deal “Investors should view REITs in a categorically different light than a private real estate investment. While acquisition behavior amongst small parcel, small-time investors and REITs may be similar, the way a REIT is priced on an ongoing basis will be largely incongruent from the way an individual property might be. This may confuse the average retail investor, since most equity REITs are merely containment tanks for a large group of properties.” (Seeking Alpha)
  7. Madison Realty Capital Lends $124M Against East Village Real Estate Portfolio “New York-based real estate investment firm Madison Realty Capital provided a $124 million loan to Raphael Toledano’s Brookhill Properties for the acquisition of a 16-building portfolio in the East Village, Commercial Observer has learned. Brookhill closed on the $97 million acquisition earlier this month, from longtime owners, the Tabak family.” (Commercial Observer)
  8. Alchemy, Clarion Pay $99M for 25-Story Midtown Office Building’s Leasehold “Alchemy Properties and ABR Partners, in partnership with Clarion Partners, acquired the leasehold of a 25-story Midtown East office building for $99 million, after Meadow Partners spent the past two years replacing many of the old tenants with new ones, The Real Deal has learned. Meadow Partners paid $61 million in 2013 for the leasehold at the 220,000-square-foot property.” (The Real Deal)
  9. IRS Questions Real Estate Spinoffs “This week, the IRS released a notice indicating that it and the U.S. Treasury Department were “concerned” that corporations are using spinoffs of assets to avoid paying taxes on otherwise taxable transactions. So the IRS said it would stop ruling on any request while it studies the issue.” (Nation’s Restaurant News)
  10. Grocery Outlet Sees Potential for 100-Plus SoCal Stores “Grocery Outlet Bargain Market said Thursday it sees the possibility of opening between 100 and 150 of its extreme-value stores in the Southern California marketplace over the next few years. The company, based in Emeryville in Northern California, plans to enter the Los Angeles market in December with two stores, expanding to 14 by the end of 2016 and another 14 or so by the end of 2017.” (Supermarket News)
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