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10 Must Reads for the CRE Industry Today (March 9, 2017)


  1. 5 Ways the Fed Rate Hikes Will Hit Global Markets “One interest-rate hike was a tweak. A second is normalization. And a third? That is going to look like a whole raising cycle. It now looks almost certain that next week the Federal Reserve will raise interest rates for the third time, and that will be the first step on a clear path toward getting the price of money back to the 3% to 4% range. That is a decision that will be taken for the United States. But American interest rates are also a key variable for the entire global economy.” (MarketWatch)
  2. Top 10 Cities for Early Retirees “A key part of that financial plan is to keep housing costs in check by living in affordable areas. Why? Because early retirees must live off their savings until they are eligible to tap their 401(k) plans and IRAs without a tax penalty at age 59½, qualify for early Social Security retirement benefits at age 62 and enroll in Medicare at age 65. Looking for your own base of operations that is easy on the wallet? MagnifyMoney, a price comparison website for financial products, ranked 217 U.S. cities to find the best spots for early retirees.” (CNBC)
  3. The Next Domino to Fall: Commercial Real Estate “The central banks and state treasuries around the globe may be confident they can bail out the banks, but what if the next domino to fall isn't a bank? What if it is a "safe, high yield asset" held by institutional owners such as pension funds, insurance companies and REITs (real estate investment trusts)? What if the next crisis isn't a spot of bother caused by excessive leverage, but a systemic collapse of collateral as an entire sector - retailers holding millions of square feet of bricks-and-mortar store space - falls off a cliff?” (Seeking Alpha)
  4. Faced with a Chance for Radical Change, L.A. Voters Choose to Stay the Course “Los Angeles voters offered a strong endorsement Tuesday to policies that have brought denser development and a more urbanized lifestyle to a city once famous for its tracts of tidy single-family homes. Mayor Eric Garcetti, who has championed greater development in Hollywood, downtown and other parts of the city as well as expanded mass transit service, was easily reelected, while Measure S, a slow-growth measure pushed by people opposed to some of Garcetti’s development policies, was voted down.” (Los Angeles Times)
  5. Top Official Overseeing Trump’s D.C. Hotel Is Out at GSA as Democrats Call for Investigation of Lease “A top government official overseeing federal buildings — including the historic tower that is home to President Trump’s D.C. hotel — is leaving the agency as it endures increasing criticism from congressional Democrats for not addressing a potential lease violation and other concerns stemming from the president’s ownership of the project. Some members of Congress worry that Trump could appoint new leaders who will renegotiate the terms of the lease to eliminate any legal entanglements.” (The Washington Post)
  6. EB-5 Hearing: “Give Us Your Immoral, Your Degenerate, as Long as They Have Money” “At the first House Judiciary Committee hearing on immigration since Congress reconvened in January, the subject was not President Trump’s executive orders or recent deportation crackdowns, but instead the EB-5 investor visa, a 25-year-old pilot program that has become a pet fundraising vehicle for real estate developers. Senators Patrick Leahy (D-VT) and Chuck Grassley (R-IA) joined members of the committee Wednesday to testify on program reform, urging Congress to make major changes that would push EB-5 money into more underserved communities rather than luxury projects in affluent urban neighborhoods.” (The Real Deal)
  7. This Firm Aims to Be the North Shore’s Largest Commercial Landlord “Hoffmann Commercial Real Estate, which caters to downtown properties in affluent areas, is poised—by its own reckoning—to become the North Shore's largest commercial property owner. The St. Louis-based firm says it will claim that status after it completes the acquisition of five sites in Winnetka and another in Wilmette, for a total of about $33 million. Three purchases in Winnetka—501 Chestnut St., and 561 and 585 Lincoln St.—have been completed, it says; three more—874 Green Bay Road and 723 Elm St. in Winnetka, and 1215 Washington Ave. in Wilmette—are pending.” (Crain’s Chicago Business)
  8. HFF Arranges $350M in Financing for High-Profile Deal “Holliday Fenoglio Fowler’s name will go down in history in North Carolina for having played a supporting role in what is being widely touted as the largest single real estate transaction in the state—ever. HFF orchestrated a $350 million financing package on behalf of Northwood Investors, which recently purchased a portfolio accounting for the greater part of the 535-acre Ballantyne Corporate Park in Charlotte.” (Commercial Property Executive)
  9. RockPoint Buys $300M Stake in Mack-Cali’s Roseland Unit “Boston-based REIT RockPoint Group has acquired a $300 million stake in Mack-Cali unit, Roseland Residential Trust. Once Roseland is funded, RockPoint would gain a 17 percent interest in the firm. Mack-Cali, which acquired Roseland for $134.6 million in 2012, would retain an 83 percent share. RockPoint will inject the $300 million into Roseland over the next two years. Half of the total will be due at closing. The transaction, which places an equity value of $1.23 billion on Roseland, provides Mack-Cali the option to invest another $200 million into its subsidiary.” (Real Estate Weekly)
  10. How to Market Across Generations “The focus on millennials can result in apartment operators overlooking other generations. That’s unfortunate, because baby boomers and members of Generations X and Z are important components of the renter pool as well. In fact, more than half of renters are older than millennials, according to a RentPath study. Appealing to multiple generations requires some thoughtful planning. But as architect Mark Humphreys told MFE in 2016, reaching these different demographics ‘is our biggest challenge and greatest opportunity.’” (Multifamily Executive)
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