Commercial Real Estate Finance

Posts Tagged ‘PREIT’

Mensch 

Noun, informal. A decent, upright, mature and responsible person. 

Schlemiel 

Noun, slang. An awkward, clumsy, or unlucky person whose endeavors tend to fail; a loser.

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Mensch of the Week:

Pennsylvania Real Estate Investment Trust

PREIT (NYSE: PEI), a retail and shopping mall investor not far from Llenrock’s offices in Philadelphia, has a good understanding of the opportunities and unique challenges of their sector. Malls, community centers, and other retail assets comprise an enormous segment of America’s commercial real estate inventory, and there are plenty of attractive core and value-add investment opportunities within this market. But retail (like so many other asset classes) has been the victim of overbuilding–not to mention dampened consumer confidence, big-name bankruptcies, and competition from the mighty Internet.

Yes, there are still revenue-producing malls full of high-end tenants and wealthy clientele, and fully leased community shopping centers anchored by Internet-proof businesses like grocery stores, gyms, and popular eateries. But to find the gems in the retail sector, one must sift though a lot of fairly mediocre inventory.

For a major retail REIT, navigating and growing in this challenging sector requires a big-picture strategy and some very selective investments. PREIT seems to have both. In the last few months, the REIT has pared down its non-core assets, selling off properties like Orlando Fashion Square Mall, Paxton Towne Centre and the Phillipsburg Mall, all of these sales part of the company’s ”previously-announced plan to improve the quality of its portfolio by selling certain non-core assets” (according to various related press releases). Read the rest of this entry »

I’m interested in the ongoing evolution of America’s cities, as you can no doubt tell if you read the Llenrock Blog on a regular basis. Even though the “urban experiment” is still very much a work in progress, a few things are becoming clear. One of these is the demographic shift that has brought greater numbers of Americans from the suburbs to downtown areas. As members of the so-called “creative class” gather their fixed-gear bicycles and English degrees and crippling student debt to move into urban apartments, cities must meet the needs of a growing populace with more efficient systems of transportation.

I looked at this idea last month in a post exploring the role of train stations and bus lines as anchors for mixed-use, retail, and residential real estate. Today, I want to discuss a related subject: walkability.

There’s a fascinating website called Walkscore.com, which–as the name implies–scores cities according to their convenience and accessibility for pedestrians. Here’s how the site ranks America’s largest cities:

10. Oakland

9. Minneapolis

8. Miami

7. Washington, D.C.

6. Seattle

5. Philadelphia

4. Chicago Read the rest of this entry »

Week in Review for February 16 – 22:

 - According to the first three paragraphs of a Wall Street Journal article (you have to have a “Pro” account to read the rest), many investors are missing opportunities for high yields among smaller-cap REITs.

- Private commercial real estate service Cushman & Wakefield expands its presence in Central Pennsylvania, opening a local office in Harrisburg. John Derham, Cushman & Wakefield’s local director, tells CoStar Group the expansion is a response to the Harrisburg market’s growth, the fastest in the state.

- High-profile Federal Reserve officials voice opposition to the organization’s ongoing bond-buying practices, which are intended to stimulate the economy and hold down interest rates, says Reuters. The Fed had previously indicated it would maintain its stimulus program until the U.S. unemployment rate drops substantially. The Fed’s bond-buying is considered significant to many parts of the commercial real estate sector, including the REIT market.

-  In Manhattan, Comcast Corp (NASDAQ: CMCSA) acquires the iconic 30 Rockefeller Plaza. This purchase coincides with Comcast’s $16.7 billion purchase of General Electric (NYSE: GE)’s 49% stake in NBCUniversal, the building’s tenant.   Read the rest of this entry »

Robyn Marano

Vice President, Marketing

Madison Marquette

Robyn Marano is Vice President of Marketing for Madison Marquette. She is responsible for analyzing, developing and implementing strategic marketing plans that facilitate business growth and deliver results.

 Robyn has been with Madison Marquette since 2006 and has provided strategic marketing direction to a 21 million-square-foot retail real estate portfolio with direct responsibility for 34 properties and 4 regional offices.

 Prior to joining Madison Marquette, Robyn was Marketing Director for the Mills Corporation, PREIT-Rubin and Simon Property Group. She joined the Mills Corporation in February 2004 and was responsible for implementing strategic marketing programs that supported center sales & traffic, including sponsorship programs and a highly successful national Kids Club program. Previously, she served as Retail Marketing Director of The Franklin Mint and Product Marketing Manager with Elmer’s Corporation.

 Robyn earned a Bachelor’s degree in business administration with marketing concentration from Rowan University. She is an active member of the International Council of Shopping Centers and is a frequent guest speaker at industry events. 

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Q: How did you get your start in marketing and public relations? What led you to retail/real estate marketing in particular?

I actually was first introduced to shopping center marketing through a part-time job at a holiday photo set at a mall in Northern New Jersey. I used to take photos of dozens of screaming and crying children with Santa! However, I did get friendly with the mall marketing director after we worked together on some promotions, and since I was majoring in marketing in college at the time, it seemed like a natural fit to network for a job with him after graduation. My first position out of college was as a marketing coordinator for Simon Property Group.

Q: What is your favorite part of your job? What do you find most challenging? Read the rest of this entry »

A while back, I reported on the Cornell Real Estate Council’s annual REIT CFO panel, which included financial officers representing most major asset types in the commercial real estate world. Representing the retail sector was Pennsylvania REIT (NYSE: PEI) CFO Robert McCadden, who described his REIT’s shifting priorities when it comes to the complex world of shopping mall operations.

Without question, technological and social shifts have hit retail more than any other asset class. Even though “retail as we know it” is coming to an end, with online vendors like Amazon (NASDAQ: AMZN) diverting an increasingly large amount of activity, this isn’t the first time “retail as we know it” has come to an end. Remember, malls and shopping centers were once the “innovations” putting smaller “Main Street” retailers out of business.

Unable to compete with the prices, low overhead, and unparalleled selection of e-retailers, brick-and-mortar retail investors like PREIT are exploring what may be their only option: not competing.

How? By reestablishing their properties, malls in particular, as destinations for less tangible products, drawing customers through “experience” rather than merchandise. In this way, REITs and other retail investors are beginning to transform their sector into something resembling entertainment or hospitality.

Read the rest of this entry »

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. Read the rest of this entry »

Week in Review for June 30 – July 6:

- After the Supreme Court‘s tensely awaited verdict on the Obama administration’s Affordable Care Act, Healthcare REITs see improvements in stock prices. The court’s decision to uphold most of this law is expected to bolster demand and rents in the healthcare property sector.

- Despite lowered CMBS index prices, analysts forecast strong values for mortgage REITs, reports Barrons.

- In Washington, D.C., Vornado Realty Trust (NYSE: VTR) eyes potential tenants for the Shops at Georgetown Park, which it has has been refurbishing since buying at a foreclosure auction in 2010.

- After two years, Israel’s EPN Group closes on a sale of retail properties to a joint venture of Blackstone Group (NYSE: BX) and DDR Group (NYSE: DDR). The portfolio of 47 U.S. shopping centers was sold for $1.4 billion. Read the rest of this entry »

From CNBC, here is a ranking of the Top 10 International Cities for Retail:

- Hong Kong

- Austin, Texas

- Paris

- Los Angeles

- Melbourne, Australia

- London Read the rest of this entry »

Mensch 

Noun, informal. A decent, upright, mature and responsible person. 

Schlemiel 

Noun, slang. An awkward, clumsy, or unlucky person whose endeavors tend to fail; a loser. 

A couple years ago, we at the Llenrock Blog introduced a feature called The Mensch & Schmuck of the Week, intending to recognize the achievements of both the mensches and the schmucks of the real estate finance world. No one minds being called a “mensch,” but “schmuck” (legal council informed us) was a bit problematic. In the end, Llenrock ran a series of Mensch of the Week features, recognizing professionals who displayed skill, creativity, success, and integrity. The schmucks went unrecognized.

Now, we’re reviving this feature with a slightly different name: Mensch & Schlemiel of the Week (Schlemiel, while sufficiently Yiddish, feels a bit less inflammatory than Schmuck). If those of you in the real estate and finance industries wish to nominate any public figures for the title of Mensch/Schlemiel, shoot me an email!

Without further ado, here are this week’s champions…

Read the rest of this entry »

Last Thursday, I began recounting some of the discussion at a recent CFO Panel here in Philadelphia. Presented by the local branch of the Cornell Real Estate Council, this event featured five CFOs representing major REITs (and one non-REIT) in the Philadelphia area: Hersha Hospitality Trust (HT), CubeSmart (CUBE), Brandywine Realty Trust (BDN), PREIT (PEI), and Morgan Properties. The event was understandably well attended.

As I pointed out last week, the CFOs have distinct but somewhat nerve-wracking vantage points in their companies. They see the direct relationship between corporate decisions, shifting market fundamentals, and the fluctuation of their properties’ and company’s value. They expressed trepidation about political gridlock, property oversupply, and general economic uncertainty. But we covered most of the anxiety-provoking subject matter on Thursday. Today, I want to discuss opportunities.

Read the rest of this entry »