Commercial Real Estate Finance

Posts Tagged ‘Westfield Group’

Thankfully, I don’t fly nearly as often as I used to. I’m okay with flying–it’s the airports I have a problem with. No matter how uncomfortable a four-hour flight on Southwest may be, it’s still preferable to the endless, serpentine Security line.

Though waiting and finally getting through the metal detectors is rarely an airport highlight, I can think of one group of people who are extremely grateful for the work the TSA does (no matter how many water bottles and toenail clippers the TSA confiscates). That group is the retail sector.

After all, the TSA keeps airline passengers captive until (hours later) their plane finally begins boarding. For retailers, few things are more desirable than a captive audience. Where but airports (okay, and movie theaters, and theme parks) can you find sodas selling for $5 apiece?

While the freedom to charge exorbitant prices for simple comestibles provides a great advantage for companies that operate airport terminal retail, it hasn’t caused these operators to become complacent. In fact, some are now working to emulate the strategies of North America’s most successful, high-end shopping malls, bringing in the sort of luxury retail associated with Fifth Avenue.  Read the rest of this entry »

Week in Review for December 1 – 7:

- Major institutional investors such as Blackstone (NYSE: BX) and Colony Financial (NYSE: CLNY) are raising hundreds of millions of dollars to acquire enormous single-family portfolios, reports CoStar Group. However, analysts warn that this strategy–creating investment platforms to acquire distressed homes in bulk and convert them to rentals–is unproven.

- The Charre Group, a small group of real estate investors and advisers focused on South Florida’s hospitality market, brings its expertise in Miami’s high-barrier-to-entry hotel market to CBRE (NYSE: CBG) by joining its hotels division.

- Liam Brown of Marriott International reports that it is difficult for any but the largest hotel brands to obtain financing for new-build hospitality projects. For new developments, LEED-certification and other sustainability measures are increasingly desirable, Mr. Brown says, though they often complicate the development process.

- Los Angeles International Airport announces the launch of a major shopping hub in its Tom Bradley International Terminal. Retail operator Westfield and its partners are introducing more than 60 high-end dining and retail options in the terminal. This project is part of “LAneXt,” a $4.1-billion series of renovations and updates for LAX. Stores planned for this terminal include Coach, Bvlgari, and Michael Kors. Read the rest of this entry »

In the U.S., the commercial real estate industry is liable to take certain things for granted: 1) that America is the strongest and most popular market for foreign investment, and 2) that America will always possess that status.

The first belief is true. If you look at data from either Real Capital Analytics or  AFIRE, the Association of Foreign Investors in Real Estate, the numbers speak for themselves. The U.S.–with investment hubs like New York, Washington, D.C., and San Francisco–is the overwhelming favorite among foreign investors when it comes to dollars invested. It’s also a top choice among investors looking for stability. But it’s no longer viewed as the best market for capital appreciation, and this is where the second proposition–that America will always be on top–is called into question.  Read the rest of this entry »

Last week, I discussed the dire circumstances of many neighborhood and regional shopping malls in the U.S. While some malls are blessed with a recession-proof market, a superior brand or location, or non-retail features, many traditional shopping malls are struggling to attract and keep tenants–not to mention customers.

I live in Newtown Square, a suburb of Philadelphia, which is a relatively short driving distance from at least three different malls. But I’m not going through the hassle of parking, walking past 20 stores, and finally talking to a sales associate who isn’t even familiar with the inventory of the 2,000-square foot store in which he spends three days per week texting his friends. Not for a single item I can order online or pick up at Target in Malvern for an extra $2. Read the rest of this entry »

Commercial Real Estate Week in Review for the week of August 6th to August 12th

- First Potomac Spends $746.6 million in 3 Years

- Canadian REITs Post Strong Gains

- Yields on Fannie Mae and Freddie Mac Jump

- Investors Put Their Faith in Treasuries

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Commercial Real Estate Week in Review for the Week of June 4th to June 10th

- REITs Are the Light at the End of the Economic Tunnel.

- It’s Quality vs. Quanity With Glimcher Realty Trust (NYSE:GRT).

- REIT Investors May Need a Reality Check.

- General Growth Properties (NYSE:GGP) Refinances Five Retail Centers.

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Commercial Real Estate Week in Review for the week of October 23 to October 29

-General Growth Properties wants Vornado Realty Trust’s Sandeep Mathrani to be its CEO.

-Apple REIT Nine acquired four hotels in Texas and PA for $60 million.

-Retail centers need to look at new use cases and redevelopment for growth.

-First Capital Realty acquired 2 Canadian retail centers with redevelopment opportunities.

-SL Green Realty provided financing to keep Manhattan office tower from foreclosure.
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