10 Must Reads for the CRE Industry Today (August 2, 2016)

10 Must Reads for the CRE Industry Today (August 2, 2016)


  1. Banks Continue Making Corporate, Commercial Real Estate Loans Tougher to Get, Fed Survey Shows “Loan standards to commercial and industrial firms and commercial real estate tightened for the fourth straight quarter in the three months ended in June, the Federal Reserve said Monday in its senior loan officer survey. That came in a quarter when commercial and industrial loan demand was little changed and demand had weakened somewhat but was little changed but commercial real estate demand picked up.” (MarketWatch)
  2. Coach Sells Headquarters for $707 Million in Lease-Back Deal “Coach Inc. sold its headquarters in New York’s Hudson Yards development for $707 million under a sale and lease-back agreement, the luxury retailer said Monday. The sale is part of a broader deal under which Allianz Real Estate, the property-management unit of the German insurer, bought a 44% stake in 10 Hudson Yards, the first building completed in the massive redevelopment project on Manhattan’s West Side.” (Wall Street Journal)
  3. Here’s Why S.F. Residents Won’t Be Voting on Taxing Tech Companies After All “Taxing the rich tech companies to give back to the poor of San Francisco won’t be happening through a recently proposed tax, but was it even a good idea to begin with? On Monday, the ‘Homelessness and Housing Impact Technology Tax,’ as it’s known, failed to pass during a meeting of San Francisco’s Board of Supervisors Budget and Finance Committee, according to media reports. The proposed tax would have added an extra 1.5% payroll tax for tech companies and decreased the business registration fees for companies with less than $1 million in gross annual receipts.” (Fortune)
  4. Extell Looks to Have Brought In Chinese Equity Partner at Central Park Tower “Gary Barnett’s Extell Development appears to have scored a capital partner for one if its most ambitious projects yet, the Central Park Tower at 217 West 57th Street. New documents filed with the New York Attorney General’s office indicate that the firm’s new partner on the Billionaires’ Row luxury condominium may be SMI USA, the U.S. subsidiary of Shanghai Municipal Investment, the largest state-owned enterprise in Shanghai.” (The Real Deal)
  5. Starwood Energy Seals $760M Deal with NextEra “NextEra Energy Resources LLC will soon sell its only two natural gas-fired power plants in Pennsylvania, but the company will have three quarters of a billion dollars to fill the hole left in its portfolio. A NextEra subsidiary has signed on to sell the Marcus Hook Energy Center facilities, located 20 miles outside Philadelphia in Marcus Hook, Pa., to an investment affiliate of Starwood Energy Group Global LLC, for $760 million.” (Commercial Property Executive)
  6. GameStop Buys 507 AT&T Stores in Diversification Plan “GameStop Corp. acquired 507 AT&T wireless stores as part of a drive to diversify and reduce its dependence on sales of video games. The stores are located in 26 states, with the biggest share in Texas, Missouri and Oklahoma, Tony Bartel, GameStop’s chief operating officer, said in an interview. He declined to reveal the purchase price but said it amounted to the bulk of the $475 million the Grapevine, Texas-based company raised in a debt offering this year.” (Bloomberg)
  7. Partners Group, Spear Street Go on Office Shopping Spree “Funds managed by Partners Group AG or its affiliates joined forces with affiliates of Spear Street Capital LLC to acquire the Whetstone Portfolio, which comprises roughly 2.2 million square feet of office space across five states. The joint venture partners will acquire a number of premier office assets located in suburban markets in Dallas, Chicago, Washington, D.C., Austin and Boston. Financial details of the acquisition have not been disclosed.” (Commercial Property Executive)
  8. Understand Why There’s Not Enough Affordable Housing with This Real Estate Game “If you're working at a minimum wage job in the U.S., there's a very good chance you won't be able to find an apartment you can afford, no matter where you live. For every 100 extremely low-income households, there are only 29 affordable, non-slum apartments on the market. Developers aren't building enough to keep up with demand as the number of low-income households grows. This isn't just because most developers would prefer to reap in profits with luxury apartments that can bring in the highest rents. As a simple new game explains, the math just doesn't work.” (FastCoExist.com)
  9. Saudis Prepare Rules for Real Estate Funds amid Housing Push “Saudi Arabia's capital markets regulator issued draft rules for exchange-listed real estate funds on Tuesday as the kingdom tries to draw more private investors into its housing sector. Under an economic reform programme announced in June, Saudi Arabia aims to build 1.5 million homes over the next seven or eight years to ease a shortage of affordable housing. But with state revenues slashed by low oil prices, Riyadh can no longer afford to finance construction mainly with state money. So it is seeking ways to get private capital involved, and the new funds could provide one channel.” (Reuters)
  10. Bojangles’ to Expand Beyond Core Market “Bojangles’ Inc. has signed a development deal to expand outside its core markets of North Carolina and South Carolina, the company said Monday. The Charlotte, N.C.-based quick-service chicken chain said Gautier, Miss.-based Angle Inc. would develop multiple Bojangles’ units in southern Alabama and southeast Mississippi. Bojangles’ currently has 32 restaurants in Alabama.” (Nation’s Restaurant News)
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