10 Must Reads for the CRE Industry Today (January 29, 2016)

10 Must Reads for the CRE Industry Today (January 29, 2016)


  1. FelCor Jumps as Investor Seeks Sale of Hotels or Whole Company “FelCor Lodging Trust Inc. rose as much as 9.1 percent after activist investor Jonathan Litt urged the company to consider options to increase shareholder value, such as finding a buyer for hotels including the Knickerbocker in Manhattan or selling itself. Litt, co-founder of Land & Buildings Investment Management LLC, called FelCor shares ‘incredibly cheap.’ The real estate investment trust’s shares had fallen about 48 percent through Wednesday from a peak of $12.23 about 10 months ago.” (Bloomberg)
  2. 4 Reasons Passive Investing Makes Sense in Real Estate “The variety of options for investing in real estate has expanded considerably in recent years with the popularity of investment via crowdfunding. This is making it easier for small investors to become involved in the market and to explore the possibilities of passive investment. The strength of the commercial market in recent years makes this type of investment a good idea, for a number of reasons.” (Seeking Alpha)
  3. Related CEO Jeff Blau Says Chinese Real Estate Investment is Drying Up “Amid mounting fears that the recent downturn in China’s economy could hurt investment in US real estate, the developer behind the country’s largest mixed-use project ever—which has been backed in no small part by Chinese investment—said it’s time to start looking elsewhere for funding. Addressing an Urban Land Institute New York forum yesterday, Related Cos CEO Jeff Blau told audiences, ‘we should be looking at other places for capital over the next couple of years.’” (Bisnow)
  4. Circuit City is Back from the Dead Again “Radioshack may have filed for bankruptcy, but that's not deterring fellow electronics retailer Circuit City from getting back into the retail business. The company, led by Ronny Shmoel and Albert Liniado, will make a comeback this June when its first store opens, according to Twice, a trade magazine that covers tech industry news. Once the top big-box technology retailer, Circuit City filed for bankruptcy in 2008.” (CNBC)
  5. SL Green Shares Slide as CEO Sees NYC Job Creation Slowing “SL Green Realty Corp. slipped 8.1 percent, its biggest decline in four and a half years, after Chief Executive Officer Marc Holliday said he expects job creation in New York to soften, affecting office demand in the city. SL Green, the largest owner of New York office buildings, making its stock a barometer on the city’s office market, was the worst performer in the 22-company Bloomberg Real Estate Investment Trust Office Property Index, which fell 2.7 percent Thursday.” (Bloomberg)
  6. Strong Outlook Seen for California Commercial Real Estate through 2018 “Despite higher interest rates and slower economic growth, confidence on the part of developers indicates a positive outlook for commercial real estate growth through 2018, according to a survey released Tuesday by UCLA economists. The latest Allen Matkins/UCLA Anderson Forecast Commercial Real Estate Survey found ‘continued confidence among developers through 2018, indicating both the probability of new supply and of opportunities for new investment,’ said a statement released by the UCLA Anderson School of Management.” (Times of San Diego)
  7. To REIT or Not to REIT? That Is the Macy’s Question “The Macy’s saga – replete with store closures, slumping revenue and shares, and pressure to maximize the value of its real estate – reminds us that retailers sit at the uncomfortable and continually shifting juncture of boots and bricks: the products they are selling and the brick-and-mortar real estate from which they make those sales in the age of e-commerce.” (Forbes)
  8. VA Proposes Hundreds of Housing Units Plus Services for Homeless Vets at Wet L.A. Campus “Federal officials released a blueprint Thursday that could transform the long-neglected West Los Angeles Veterans Affairs campus into a residential community with hundreds of housing units for homeless veterans and a town center featuring a café, fitness center and cultural facilities. The plan calls for construction of 1,200 units of permanent supportive housing for disabled and traumatized veterans and more than 700 short-term units for homeless veterans while they await their own apartments.” (Los Angeles Times)
  9. American Dream Mega-Mall Adds Huge Primark Store “The American Dream mall will encompass three million square feet when it opens in northern New Jersey in 2017 and occupying 100,000 sq. ft. of that space will be fashion retailer Primark. Primark, a leading European retailer (290 stores in 10 countries) of women’s, men’s and children’s apparel and home good, opened its first two U.S. stores in late 2015 in Boston and the King of Prussia Mall in Pennsylvania. The company has also announced plans for six additional locations in 2016.” (Chain Store Age)
  10. Stressed Out: Is Office Depot the Next RadioShack? “In early 1992, shares of Office Depot traded for over $50 a share. No one knew it at the time, but that would be Office Depot stock's all-time high. Fast forward 24 years to today -- Office Depot stock is now trading for around $5 a share and is part of a group of distressed and "Stressed Out" stocks that TheStreet will be monitoring through these choppy markets. The company has lost around 90% of its value over the last 24 years.” (The Street)
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