Posts Tagged ‘Fiscal Cliff’
Week in Review for December 29, 2012 – January 4, 2013:
- On New Year’s Day, the U.S. House of Representatives passed legislation to prevent automatic tax increases in 2013, otherwise known as the “fiscal cliff.” The last-minute deal comes after months of partisan bickering, media speculation, and investor nervousness.
- CoStar Group releases its 12 CRE Predictions for 2013, based upon data from Jones Lang LaSalle (NYSE: JLL)’s 2013 Cross Sector Survey. CoStar’s predictions include further growth for the equity REIT market, strong office performance on the West Coast, and an increase in sales among properties purchased early in the CRE market’s recovery.
- BGC Partners, which acquired bankrupt real estate services firm Grubb & Ellis last year, buys two companies affiliated with its Newmark Grubb Night Frank (NGKF) operations. BGC has acquired Smith Mack in Philadelphia and Frederick Ross Co. in Denver, which had become Newmark affiliates in the last few years.
- In Greencastle, Pennsylvania, kitchenware company World Kitchen renews its lease of a million-SF warehouse and distribution center. Its landlord, Matrix Development Group, has committed to a capital improvement effort for the facility expected to cost over $10 million.
- New York City sees a huge increase in available class A office space. The city’s 14.5 percent availability is largely a product of recent downtown developments, including 4 World Trade Center and the World Financial Center, says Bloomberg. Read the rest of this entry »
Week in Review for December 15 – 21:
- 2012 comes to a close with a high level of real estate activity, CoStar Group reports. Many investors are hurrying to complete deals prior to 2013, fearing higher tax rates in the new year.
- In Philadelphia, Post Commercial Real Estate, LLC, acquires the 1,015-unit Presidential City Apartments from BLDG Management Company. Presidential City, the largest apartment complex in the area, was sold for $51 million (roughly $52,000/unit).
- In Columbia, Maryland, the city planning board approves a planned 380-unit apartment and retail complex, as well as an open-air expansion for the nearby Columbia Mall. The 75,000 SF shopping plaza, proposed by the mall’s owner, General Growth Properties (NYSE: GGP), would create space for 8-10 retail tenants and 2 restaurants.
- American Realty Capital (NASDAQ: ARCT) announces the acquisition of another REIT, American Realty Capital Trust III. Their combined assets will total $3 billion, reports Bloomberg. Read the rest of this entry »
Week in Review for October 20 – 26:
- As Hurricane Sandy, popularly known as Frankenstorm, roars toward the East Coast, analysts and investors continue to debate the potential outcomes of the government’s fiscal cliff. According to the Washington Post, many consumers remain undaunted by the possibility of a double-dip recession in 2013, suggesting this year’s holiday shopping season will be unaffected by Congressional gridlock and economic uncertainty.
- At the Philadelphia Navy Yard, an ongoing office development in South Philadelphia, Ensemble Hotel Partners begins work on a five-story Courtyard by Marriott hotel. The Navy Yard, a large-scale development spearheaded by Liberty Property Trust (NYSE: LRY) and the Philadelphia Industrial Development Corp., includes tenants such as Urban Outfitters (NASDAQ: URBN) and GlaxoSmithKline (NYSE: GSK).
- In Center City Philadelphia, Crown Properties sells its 88% stake in the 20-story, class A Two Penn Center to a joint venture for $66 million. The buyers, Optibase, Inc. and private investor Alex Schwartz, acquired the property for around $135/SF, says CoStar.
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Mensch of the Week:
Nick Crockett, Jones Lang LaSalle
As private real estate news source PERE pointed out last week, Jones Lang LaSalle (NYSE: JLL)’s endeavor to create greater access to Asian real estate funds makes it a bit of a matchmaking service, if not a Match.com for private real estate funds.
According to Nick Crockett, part of the international real estate service’s Asia Pacific division, there may be as much as half a billion dollars in private real estate capital available for investment in coming months, provided the funds can be connected to the right investments. PERE explained in its Friday Letter:
Crockett’s firm is providing the Secondary Market Bulletin (SMB), part of a secondaries trading platform to which buyers and sellers of private real estate fund units can register their holdings along with their pricing and volume trading requirements. …JLL hopes this will lead to some secondaries transactional matrimony in the region.
Granted, this plan seems rudimentary–it’s pretty much a private brokerage newsletter–but it may be a significant improvement for the huge but fragmented Asia Pacific CRE market. While this SMB initiative may lack the sophistication of CBRE (NYSE: CBG)’s secondaries trading and data service in Europe, any effort to cultivate business and relationships in the Asia Pacific region seems worth the effort. Read the rest of this entry »