10 Must Reads for the CRE Industry Today (March 14, 2016)

10 Must Reads for the CRE Industry Today (March 14, 2016)


  1. Cracks in the market: Is New York's real estate boom over? “New York City’s real estate market is showing telltale signs of slowing after an extraordinary three-year run that saw average office rents in Manhattan jump by 20%—from just under $60 per square foot to more than $70—and the median home price in the borough climb to a record-high $1.15 million from $800,000. The pessimism centers on residential development sites amid concerns the city is overstuffed with high-end apartments.” (Crain’s New York)
  2. In towns with most polluted air, fear that smog fight will slow down at AQMD “When Mira Loma resident Stephen Anderson drives through his community he's surrounded by warehouses. The sprawling complexes housing the world's goods sit next to schools and parks, neighborhoods and shopping centers, bringing a stream of diesel trucks that pollute the air with their exhaust. The Riverside County community has paid a heavy price for the development, Anderson says. Mira Loma has for years suffered from some of the dirtiest air in the nation. So Anderson and his wife were dismayed at recent moves by Southern California's air quality board that were widely viewed as efforts to weaken pollution regulations.” (The Los Angeles​ Times)
  3. Fresh Market To Be Acquired By Apollo For $1.36 Billion In Cash “The acquisition comes after a review of strategic and financial alternatives, said Rich Noll, the lead independent director of Fresh Market, in a statement. The grocer, which has sought to bring a neighborhood feel to its 180+ stores, has seen same-store sales decline as it competes against Whole Foods and other specialty grocery stores. Shares of Fresh Market surged 24% in pre-market trading following the news. ‘We believe there is a significant opportunity to enhance the brand, merchandise offering and price-value combination to make The Fresh Market a primary destination for food shoppers, while at the same time being committed to social responsibility through partnerships with local vendors and communities,’ said Andrew Jhawar, head of the retail and consumer group at Apollo.” (Forbes)
  4. Liberty University buys 75% interest in Lynchburg mall “Liberty University has bought a 7  percent interest in River Ridge mall, the shopping center that neighbors the school on Candlers Mountain Road in Lynchburg. University President Jerry Falwell Jr. said he expects the investment to make money for the school and promote retail in a way that will benefit the city. CBL & Associates Properties Inc. received net cash proceeds of $33.5 million for the interest in River Ridge.” (The Roanoke News)
  5. Parcel for Proposed SF Tower Commands $160M “F4 Transbay Partners LLC, a joint venture between Urban Pacific Development LLC and Broad Street Principal Investments LLC, has acquired Parcel F, the last remaining site available for development of a super-tall building in downtown San Francisco, from the Transbay Joint Powers Authority for $160 million, plus a $15 million premium in the event of an assemblage of the property with an adjoining lot. ‘As part of the effort to build a new transit facility at the old Transbay Terminal location, the state entrusted us with significant land to be used both for its construction and to sell to fund the project,’ Maria Ayerdi-Kaplan, TJPA executive director, told Commercial Property Executive.” (Commercial Property Executive)
  6. Colliers Tapped to Raise $50M for Suburban Boston Hotel Development “Colliers International was exclusively retained to raise $50 million in debt and equity to fund a Hilton-branded hotel in the Woburn suburb of Boston, Mass., sources have informed Commercial Observer. Massachusetts-based Madison Properties is working with a Colliers team led by Thomas Welch of the brokerage’s Boston office and Richard Lillis of the firm’s Fort Lauderdale, Fla., office to raise the construction financing for the 235-key hotel at 369 Washington Street, at the intersection of I-93 and I-95.” (Commercial Observer)
  7. Five ‘very rare’ times Trump settled NYC real estate lawsuits “‘I don’t settle lawsuits – very rare – because once you settle lawsuits, everybody sues you – very simple,’” said Republican front runner Donald Trump during a press conference last week. Trump’s aversion to making legal deals may go back decades – “‘You don’t use the term ‘settlement’ with Donald,’” his attorney Roy Cohn told the New York Times more than 30 years ago – but he has in fact cut a few over his career. (The Real Deal)
  8. Greystone Continues South Florida Expansion with Shovel-Ready Multifamily Land Acquisition in MiamiGreystone, a New York-based real estate development, lending and advisory company, announced the $8.8 million acquisition of a shovel-ready development site located at 1501 SW 37th Avenue in Miami, FL. The project lies on an approximately 34,000 square foot (net) lot that will be developed into approximately 91,000 square feet of residential and 6,500 square feet (net) of ground-floor retail space. Borges and Associates, a leading world-class architectural and design firm, envision a 14-story building, with amenities including: an outdoor pool and spa, club room, business center and a fully equipped, 24-hour fitness center. The development plan is fully approved and includes a total of 100 residences with one- and two-bedroom apartments. All units are anticipated to have private balconies, with two townhouse-style units boasting rooftop terraces.” (Multifamily Biz)
  9. CBRE’s good news: 2015 was a record-setting year for Kansas City commercial real estate “Some of the good news from the report? The Kansas City multifamily market enjoyed a total sales volume of more than $1 billion in 2015, while occupancy rates increased year-over-year in the office, industrial and retail markets. The Kansas Cit office sector saw its vacancy rate drop to 14.7 percent as of the end of 2015, while the retail sector’s vacancy rate fell to 7.7 percent. The Kansas City industrial market is strong, too, with CBRE reporting that more than 8.1 million square feet of speculative space broke ground in the area’s industrial market in 2015. The market ended the year with a vacancy rate of 4.9 percent, their lowest level since 2000.” (REjournals)
  10. Morgan Stanley Has $3,769,000 Position in America First Multifamily Investors LP “Morgan Stanley reduced its stake in shares of America First Multifamily Investors LP by 37.9% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 744,814 shares of the company’s stock after selling 455,477 shares during the period. Morgan Stanley owned approximately 1.24% of America First Multifamily Investors worth $3,769,000 at the end of the most recent quarter.” (The Hilltop News)


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