10 Must Reads for the CRE Industry Today (January 19, 2016)

10 Must Reads for the CRE Industry Today (January 19, 2016)


  1. Starwood Capital, Fosun Said to Consider Offers for Ascendas “Starwood Capital Group, the property investment firm, and Chinese billionaire Guo Guangchang’s Fosun International Ltd. are weighing bids for Ascendas Hospitality Trust, people with knowledge of the matter said. Starwood Capital, which manages about $45 billion of assets, and Fosun are studying the Singapore-based hotel owner and could submit offers as early as the end of January.” (Bloomberg)

  2. Macy’s Is Pursuing Real Estate Opportunities: CEO “Macy's CEO Terry Lundgren said Tuesday the company is taking a more professional view of its real estate assets than ever as it faces pressure to unlock their value. Lundgren noted that Macy's is seeking to hire an in-house real estate adviser who can look out to the long term and help the company rethink the value opportunities in its property holdings and make its big box stores more productive.” (CNBC)
  3. Ivanhoe, Veritas Invest $200 Million in San Francisco Apartments “Ivanhoe Cambridge, the largest foreign investor in U.S. commercial real estate last year, bought 16 San Francisco apartment buildings for about $200 million, adding to its business there with partner Veritas Investments. The duo now own 45 properties in neighborhoods including Russian Hill and Nob Hill in the city, many with retail in the buildings, according to a joint statement.” (Bloomberg)
  4. 2016 Retail IPO Outlook “In response to a tepid IPO landscape in 2015, some consumer business companies like Neiman Marcus Group Inc. and grocery chain Albertsons Cos. hit the brakes on going public until sentiment improves overall. So, could 2016 be a year of IPO revival following 2015's hangover?  In our recent 2016 BDO IPO Outlook Survey,  we polled 100 capital market executives on their expectations for the IPO market in 2016 and found that investment bankers are divided in their projections for the year ahead.” (Chain Store Age)
  5. J.C. Penney CEO Brings in His Own Head of Stores “Joe McFarland has been hired to be executive vice president over all of J.C. Penney’s 1,000 stores, the Plano-based retailer said Monday. McFarland’s appointment is effective immediately, the company said in a release. He succeeds Tony Bartlett, who had been with Penney since 2006, the last three years over stores. The addition of McFarland means CEO Marvin Ellison is still putting his team together.” (The Dallas Morning News)
  6. L.A. Eyes Plan to Hire Lobbyist to Explore Ways to Use City-Owned Land “The Los Angeles City Council voted Wednesday to explore whether L.A. should retain a private company to come up with ideas for developing city property — and suggested using a process that would avoid competitive bidding for the work. Two days later, after The Times asked about the reason for avoiding a bid process, City Councilman Curren Price asked the council to amend his proposal.” (Los Angeles Times)
  7. Fairfield Real Estate Company Looks to Take over GE’s Headquarters as Company Relocates “Less than one week after General Electric announced its move to Boston, Fairfield-based real estate company Kleban Properties is looking to purchase the headquarters. The real estate and development company wants to bring technology-based businesses to the campus, along with an educational component Kleban Properties Chairman Al Kleban said he cannot elaborate much on the idea, but noted that a partnership with a Connecticut college -- possibly Fairfield University -- is key.” (Fox61)
  8. Marco Rubio: Poor Little Rich Boy Runs into Real Estate Trouble “In 2003, Mr. Rubio bought his first house (at 6247 14th Street SW in West Miami) for $175,000, putting zero money down. He put it up for sale in 2005 but had difficulty selling it because of a weak local real estate market. But gracias a Dios, Dr. Cereceda’s mama, Nora Cereceda (now deceased), bought Mr. Rubio’s house in 2007 for $380,000 cash, netting Mr. Rubio a profit of about $205,000. Shortly after Mr. Rubio sold the house, he did a 180-degree rotation on a key insurance bill for which Dr. Cereceda had been lobbying.” (Commercial Observer)
  9. Tech Boom Starts to Transform Oakland Real Estate “The tech boom has begun spreading across the San Francisco Bay to Oakland, and it's creating a surge in commercial real-estate spending. As big companies like Uber move in and more small start-ups set up shop, real estate companies have to stretch their thinking to accommodate companies that want everything from flexible lease arrangements to kombucha bars and community hammocks.” (Marketplace)
  10. Rams Players Could Bring $400M to LA Home Market “The Los Angeles Rams move from St. Louis to La La Land could bring anywhere from $200 to $400 million to Los Angeles’ residential market, said Lee Mintz, head of the sports and entertainment division at Partners Trust. The cash will be split between luxury leases and home sales, she estimated. Roughly 100 people associated with the franchise will move to LA, Mintz said, including players, staff and administrators — and they’re in a rush to settle down.” (The Real Deal)
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