Wednesday, December 12, 2012

Little Movement Seen In Property Prices

National Commercial Real Estate News From CoStar Group

Little Movement Seen In Property Prices

After closing out the third quarter in strong fashion, pricing for commercial real estate saw very little change in October as concerns about the presidential election and impeding fiscal cliff likely put investors into a wait-and-see mode.

This month's CoStar Commercial Repeat Sale Indices (CCRSI) report revealed that the two broadest measures of aggregate pricing for commercial properties within the CCRSI, the Equal-Weighted U.S. Composite Index...

Change In Ownership for $3.1 Billion Net Leased Portfolio?

Cole Credit Property Trust II Inc. temporarily suspended both its distribution reinvestment plan and its share redemption program - a move that may herald a potential “liquidity event,” the non-traded REIT reported in a regulatory filing.

As used in such filings, the term “liquidity event” typically refers to a purchase of a corporation or all of its assets or an initial public offering.

As of Sept. 30, 2012, Cole Credit Property Trust II owned...

The Rising Cost of Prescription Real Estate

Drugstores continue to be an elixir for many single-tenant net lease investors in search of income with recent sales surpassing previous eye-popping prices and setting new price highs.

Last month, Marcus & Millichap Real Estate Investment Services arranged the sale of a 22,857-square foot Walgreens drugstore on Collins Avenue in Miami Beach. The whopping $30 million sales price equated to $1,312 per square foot

Sean Shahar Ziv, an associate...

With Tesco, SuperValu Reviewing Strategic Options, Big Changes Coming to Grocery Ownership

The grocery store segment of the retail real estate industry is facing a substantial amount of dislocation going into 2013. Two major chains last week confirmed what analysts had been suspecting for much of the year, that they were reviewing their strategic alternatives after posting disappointing financial numbers.

Admitting that its bid to crack the U.S. grocery store market has failed, Tesco plc., the largest retailer in the U.K. and one of...

Bank CRE Lending Slows to a Crawl

Like seemingly everyone else in the third quarter, banks retreated from their already tepid return to commercial real estate lending.

Overall, lending for investment and multifamily properties was flat with multifamily lending up just 1% and investment property lending up just about a one-quarter of a percent. Multifamily lending remains pretty much on pace with its year-over-year increase of 5%, but investment property lending is way off its 9...

Facility Closures & Downsizings: Avon Cutting 1,500 Workers; Closing Facilities

Avon Products Inc. is taking steps to $400 million a year from its annual cost over the next three years.

Initial steps of the cost-savings initiative will include a targeted global headcount reduction of 1,500 positions and the closure and rationalization of certain facilities, and the exit of the South Korea and Vietnam markets. These initiatives are expected to be largely completed before the end of 2013.

The actions are aimed at concentrating...

Watch List: Troubled Loans in Paradise

Our story this week on the Government of Singapore Investment Corp.’s $1.5 billion bid for four U.S. resorts holding up in bankruptcy court got us to thinking what other troubled loans are out there in paradise getaways.

Following a cancellation of bankruptcy scheduled auction last week, the Government of Singapore Investment Corp., known as GIC, appears headed to be the new owner of four luxury hotel resorts including the Grand Wailea on the...

Gramercy Buys 115-Property Portfolio

In a joint venture with Garrison Investment Group, Gramercy Capital Corp. closed on the acquisition of a 115-property portfolio for $485 million ($87 per square foot) from KBS Real Estate Investment Trust.

At closing, Gramercy and Garrison collectively capitalized the joint venture, on a 50/50 basis, with an equity investment of approximately $141 million, plus deal expenses. Gramercy funded its portion of the equity contribution with $56 million...

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