home depot-

10 Must Reads for the CRE Industry Today (February 21, 2018)

The spending bill deal potentially means more interest rate increases, reports the Wall Street Journal. Kimco Realty will benefit from the Albertsons/Rite Aid deal, according to Forbes. These are among today’s must reads from around the commercial real estate industry.

  1. Spending Bill Raises Expectations for More Fed Rate Increases “A bipartisan spending deal reached by U.S. lawmakers earlier this month has prompted many Wall Street economists to raise their projections of how much the Federal Reserve will raise interest rates this year and next. More forecasters say they now expect four Fed rate increases this year, up from three, because of the deal to increase federal government spending by $300 billion over the next two years.” (Wall Street Journal, subscription required)
  2. Kimco Realty Rings the Register with Albertson/Rite Aid Merger “Kimco Realty (KIM) investors (of which I am one) should be happy this morning as they can now cash in on the company’s Albertson investment. Privately-owned Albertsons and Rite Aid (RAD) announced today their intention to merge in a $24 billion deal that results in liquidity for Albertson investors. Back in 2006 Kimco invested in the Albertsons consortium, due to the potential value from the grocer’s real estate.” (Forbes)
  3. Barry Sternlicht Ventures Into Airbnb Territory “The short-term residential rental business, which got its start with people putting spare rooms on the lodging market, is knocking on the door of some of the country’s largest landlords. A venture-capital group that includes hotelier Barry Sternlicht has invested in a startup that plans to add a new upscale and branded dimension to the short-term rental business pioneered by companies like Airbnb Inc. and HomeAway Inc.” (Wall Street Journal, subscription required)
  4. Home Depot CFO: We Have Barrier Islands Around Us That Protect Us from Amazon “Thanks to big-time momentum in the home remodeling market, obliterating Wall Street profit forecasts come earnings days has become the new norm for Home Depot. The home-improvement giant reported fourth quarter earnings of $1.69 a share, trouncing estimates for $1.61 a share. Same-store sales rose an impressive 7.5%, and were ahead of estimates for a 6% increase. TheStreet talked with Home Depot's Chief Financial Officer Carol Tome about the quarter and year ahead. In short, Tome doesn't expect rising interest rates to seriously dent (if at all) Home Depot's business trends this year. Sorry, stock market bears.” (The Street)
  5. Out with the Old Building, In with the New for JP Morgan Chase “The future of Midtown is starting to arrive. JPMorgan Chase is expected to announce Wednesday that it will demolish its headquarters on Park Avenue between 47th and 48th Streets and build a new 70-story world headquarters on the site for its 15,000 employees. The building would be the first skyscraper to go up under new zoning rules for the area surrounding Grand Central Terminal, which were designed to encourage the development of taller, more modern skyscrapers and ensure that Midtown remains one of the city’s premier business districts.” (The New York Times)
  6. Walmart Heirs Lose $14 Billion as Stock Rocked by Sputtering Online Sales Growth “The descendants of Walmart founder Sam Walton saw their fortunes shrivel by $14 billion on Tuesday, after the world's largest retailer reported slowing online sales growth and a drop in profits over the holidays. Shares of Walmart plunged by 9% after the retailer said its online sales grew 23% in its latest quarter, which was about half the rate of the previous quarter. While online sales still make up a fraction of the retailer's overall revenue, Walmart has been investing heavily in its e-commerce capabilities. The numbers were likely enough to spook investors about the retailer's traction in the fight against Amazon.” (Forbes)
  7. Israel’s Harel Invests in San Francisco Office Building “Israel’s Harel Insurance said on Wednesday it was co-investing with real estate firm CIM Group in a 435 million shekel ($124 million) office building in San Francisco. Harel will have 40 percent ownership of the partnership and has committed to an equity investment of 90 million shekels. The property has 11 floors with a five-level parking garage. It is under a long-term lease to a single technology tenant who has made a significant investment in adapting the office space to its needs.” (Reuters)
  8. Knotel Receives Investment From Newmark Knight Frank “With an eye on helping clients that are both tenants and building owners, Knotel has received an investment from Newmark Knight Frank. The flexible office provider that focuses on larger companies has been represented by Newmark in its leasing deals. The financial terms were not disclosed. Knotel currently operates more than 700,000 square feet of space in New York and San Francisco, with plans to expand to London. In 2017, it raised $25 million in a Series A financing.” (New York Post)
  9. Applebee’s Is Closing Up to Another 80 Restaurants “Applebee’s isn’t quite done closing restaurants on its way to becoming what it hopes will be a better performing company. The casual dining chain’s parent company Dine Brands Global said on Tuesday it would close as many as 80 Applebee’s restaurants this year on top of the nearly 100 it shuttered last year, while opening between 10 and 15 as it looks to improve the restaurant’s fortunes. In 2017, U.S. comparable same-restaurant sales fell 5.3% at Applebee’s, and also slipped at sister chain, the pancake-focused IHOP, where they declined 1.9% last year.” (Fortune)
  10. Northwood Buys NYC Office Tower for $305M “Northwood Investors has purchased 1180 Ave. of the Americas in Midtown Manhattan for a reported $305 million. The 23-story, 386,921-square-foot building, along “Corporate Row” in the Plaza District, includes 13,679 square feet of ground-floor retail. NKF Capital Markets arranged acquisition financing in the form of a $237 million loan reportedly provided by RBC Royal Bank. The loan was brokered by Jordan Roeschlaub and Dustin Stolly, NKF Capital Markets’ vice chairmen & co-heads, Debt & Structured Finance. NKF was also Northwood’s exclusive financial advisor.” (Commercial Property Executive)
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.