Week in Review for August 18 – 24:
- A Costar Group poll of 800+ readers explores the potential impact of government budget cuts and congressional gridlock. While the CRE industry doesn’t anticipate any specific impact, its members are wary of the effects such political uncertainty may have on the broader economy, the study suggests.
- Philadelphia switches to a new zoning code in an effort to simplify the development process and update the city’s aging inventory, reports Philly.com. As in other major cities, Philadelphia’s new zoning regulations are an attempt to accommodate new social trends, industries, and evolving neighborhoods.
- More bad news for Atlantic City’s newest mega-casino. On Wednesday, Moody’s announced it had lowered the credit rating for Revel Resort & Casino from Caa2 to Caa1. This is in response to the casino’s disappointing opening season.
- The tiny island of Lanai, Hawaii grapples with the proposed construction of power-generating windmills. Residents question how this alternative energy technology will affect Lanai’s current staple industries: tourism and hospitality.
- Shopping mall owner PREIT (NYSE: PEI) completes refinancing of three malls in the Mid-Atlantic region: Cherry Hill Mall, Cumberland Mall, and Christiana Center. The three non-recourse loans total $402 million with average interest rates of 4.06% (compared to a prior average interest rate of 5.30%). The REIT’s proceeds from this refinancing reportedly totals $85.3 million.
- In the U.K., regulators are poised for significant Libor reform in coming months, WSJ reports.
- According to SNL Financial and Globe St., US equity REITs have raised $35.27 billion so far this year. This is an improvement of $3.82 billion compared to the sector’s fundraising in the same period last year.