Property Types Retail
Bankrupt Filene's Basement Assets Snapped Up by Men's Wearhouse in $67M Auction
June 09, 2009
Clothing retailer Men's Wearhouse has emerged victorious from a feverish nine-hour auction of assets belonging to off-price chain Filene's Basement, which fell victim to the retail market's downward spiral and filed for Chapter 11 bankruptcy protection in early May, just two weeks after its purchase by Buxbaum Group affiliate FB Acquisition II. Acting through its affiliate, K&G Acquisition Corp., Men's Wearhouse put forth the winning bid of $67 million for 17 to 20 of Filene's store leases, as well as the leases on the company's Massachusetts corporate headquarters and distribution center, its Maryland storage facility and-- possibly most important--the Filene's Basement trade name.
Economic Update - Starwood Eyes Distressed Sector with $500M Fund
June 08, 2009
Yet another deep-pocketed real estate entity has jumped into the grave-dancing game—only please, don’t call it that, but rather strategic investment in distressed properties. The player is a newly formed investment company called Starwood Property Trust Inc., a creation of Starwood mogul Barry Sternlicht, which filed with the Securities and Exchange Commission late last week for a public offering that aims to raise half a billion dollars to do the distressed-property boogie. It will invest in not only physical properties, but mortgages and mortgage-backed securities.
Economic Update - Retailers See May Malaise
June 05, 2009
May comparable-store sales numbers are filtering down from various retailers, and the results aren't inspiring confidence in the prospects for recovered consumer spending. Actually, most analysts expected average retail same-store sales to decline in May 2009 when compared with May 2008, but the trouble was they declined more than expected.
Starbucks Pushes for Lower Lease Rates
June 02, 2009
Taking advantage of a declining real estate market, Seattle-based Starbucks Corp. is reportedly pushing some of its U.S. landlords for as much as a 25 percent decrease in lease rates.
Head of the Class: County-Level Education Data, Trend-Savvy Offer Valuation Guidance
June 01, 2009
Over the next several years, one of the most common questions in commercial real estate will be, “What’s that retail center really worth?” A first-quarter survey of distressed assets offers a clue as to how often that question will apply to underperforming assets. Through the first quarter, 1,276 retail properties were classified as distressed by Real Capital Analytics Inc. That is the most of any property sector and represents assets valued at up to $16.8 billion—second only to the $18 billion in distressed development properties tallied by Real Capital Analytics.
Economic Update - Consumer Confidence Wows Wall Street
May 27, 2009
Happy days are here again? Or maybe the American consumer isn't quite that optimistic, but instead is simply glad things don't seem to be getting a lot worse. In any case, the Conference Board reported on Tuesday that its index of consumer confidence shot up in May to 54.9 from a revised 40.8 in April, marking the largest one-month jump in the index since April 2003.
The Expert: The Uneven Road to Recovery
May 26, 2009
No one ever promised that the road to economic recovery would be a smooth one, but even those of us who were prepared to navigate hills, curves and steep valleys are finding the beginning stages of economic stabilization more tiresome than we had imagined.
Economic Update - Leading Economic Indicators Inch Up
May 22, 2009
A bright spot to kick off the Memorial Day holiday weekend, or economic fool's gold? Time will tell, but in any case the Conference Board reported on Thursday that leading indicators of the U.S. economy posted their first rise since the summer of last year.
Despite Retail Woes, SKT Makes $79M California Buy
May 21, 2009
No market has gone unscathed in this severely crippled economic environment, but some areas are feeling less pain than others are, as evidenced by a recent transaction that just closed in Southern California's Inland Empire region. A 263,700-square-foot segment of the 539,270-square-foot Crossroads Marketplace in Chino Hills, Calif., was just snapped up at a 5.87 percent cap rate by SKT Investments for $79 million, including the assumption of an existing $63 million CMBS loan on the power center.
Economic Update - CRE Sees First-Quarter Downtick in Brokerage Activity
May 21, 2009
Commercial real estate has had that sinking feeling all year so far, and on Wednesday the National Association of Realtors quantified things: brokerage activity in the commercial sector dropped 4.8 percent in 1Q09 compared with 4Q08. Compared with the first quarter of 2008, brokerage activity is down 12.9 percent.
Economic Update - Legacy CMBS Now Under TALF
May 20, 2009
In a major expansion of the Term Asset Backed Securities Loan Facility (TALF), the Federal Reserve said on Tuesday that investors will be able to buy existing securities backed by commercial real estate loans--so-called "legacy" CMBS. The commercial real estate industry has been pushing for this for some time, and it will at last be possible starting in July.
Economic Update - The Economy's Latest Buzz-Phrase: 'Better Than Expected'
May 19, 2009
"Better than expected" is the latest turn of phrase commonly used to describe lousy performance by companies that isn't quite as lousy as analysts predicted, and as such the phrase might have a longer shelf-life than "green shoots." Since lousy is the new normal, then "better than expected" is what Wall Street now rewards.
Pre-ICSC: Leaner, Value-Driven Model in Store for Retail Sector
May 18, 2009
After two years that have trimmed the retail field and chastened the remaining players, the most compelling questions concern what retail real estate will look like when it inevitably mounts a comeback. A preview suggests that by early in the next decade, retail real estate will look much different from the pre-recession model.
Despite Spring Thaw, Harsh Forecasts Continue for Retail
May 18, 2009
The retail sector’s current distress will eventually provide ample opportunities for investors and retailers. But the slight spring thaw in consumer attitudes about retail will not be enough to prevent harsh conditions for the rest of the year, according to multiple national assessments of the retail sector published during the past week.
Economic Update - Spooked by Economy, Consumers Consume Less
May 14, 2009
The U.S. Department of Commerce reported that retail sales dropped by 0.4 percent in April, compared with the previous month. The decline was a little more than expected, but less than the revised March drop of 1.3 percent. The recent two months of decline followed unexpected increases in consumer spending in January and February.
The News: RECon Veterans Head to Vegas with Modest Hopes
May 12, 2009
Signs of the times will be inescapable in Las Vegas next week, when the International Council of Shopping Centers raises the curtain on the 2009 edition of RECon. After astounding growth brought attendance to 50,000 two years ago, ICSC is expecting a considerably smaller crowd of 30,000 during this year’s show, which runs from Sunday through Wednesday. Smaller staffs, fewer exhibitors and even the conspicuous absence of a few giants will also mark the show.
The Expert: The Emerging Minority Majority
May 12, 2009
As new demographic estimates become available, I make it a practice to review the similarities and differences between the new numbers and last year’s estimates. This time around, the significance that the role ethnic households will play in future growth struck me, specifically the Hispanic segment.
Economic Update - Looking for Green Shoots Among the Economic Indicators
May 11, 2009
Friday's unemployment numbers from the U.S. Department of Labor, while hard to characterize as good, aren't quite as bad as they have been in previous months. Unemployment is still going up, but not quite as quickly as before. That kind of thing is beginning to be called "green shoots," to use an up-and-coming economic buzzword.
Economic Update - Retail Finding a Bottom?
May 08, 2009
Whatever else is happening in the economy, U.S. consumers seem to have returned to the nation's stores in somewhat greater numbers now that spring is here. According to consultancy Retail Forward, the 35 major retailers that it surveys saw a 0.9 percent increase in same-store sales in April compared with March, when sales had dropped 1.9 percent. Average same-store sales compared with April 2008, however, were down 3.7 percent.
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