Kroger launched a website on Friday that invites local suppliers to pitch their products directly to store buyers, a bid to expand the availability of regional products as competitor Whole Foods Market scales back its local offerings. Although Kroger already offers regional products in 35 states, the company is hoping to grow the program with its new web-based platform.
Shopping behavior among millennials and baby boomers is shifting, with more of the older generation seeking online deals while millennials bargain-hunt in multiple brick-and-mortar stores, according to a survey by First Insight. The behavior differences vary by region.
Blackstone is acquiring a majority stake in California's Burbank Media District's portfolio from developers Jeff Worthe and M. David Paul in a transaction that values the six office properties at $1.7 billion. The 3.3 million-square-foot portfolio is home to some of the largest names in the entertainment industry.
Institutional investors have remained skittish about publicly traded real estate securities since the financial crisis, favoring private equity instead. Soon-to-be-released research by LaSalle Investment Management shows that these investors are losing ground, as portfolios that combine publicly traded real estate with private equity deliver better long-term returns.
Transactions made by such centrally managed exchange traded fund portfolios as BlackRock, Ladenburg Thalmann Asset Management or Wells Fargo are having a growing influence on the $3 trillion ETF market. To avoid rolling the market with their large transactions, portfolio managers are working with market makers and issuers.
Procaccianti Cos., which owns TPG Hotels & Resorts, has filed to form a nontraded REIT that will acquire select-service, extended-stay and compact full-service hotel properties as well as the opportunity to acquire a 51% stake in two select service hotels acquired by an affiliate earlier this year. Procaccianti Hotel REIT's offering amount is $552 million.
Gadsden Growth Properties has lowered the size of its upcoming IPO to 3.5 million shares at a price range of $9 to $11, down from 5 million shares. The recently formed REIT is also narrowing its focus to just medical service centers and essential retail centers.
American Campus Communities is acquiring seven student housing properties totaling 3,776 beds in a $590.6 million deal with affiliates of Core Spaces and DRW Real Estate Investments. The transaction also includes the option to acquire a 248-bed property in Seattle.
Despite their diminishing appeal with shoppers, department stores retain power over retail landlords thanks to contracts called reciprocal easement agreements that allow them to control how a property can be developed. The restrictions are one reason why dated malls have struggled to revitalize themselves, says DJ Busch of Green Street Advisors.
Malls in Dubai, United Arab Emirates, are continuing their transformation as entertainment-driven destinations, ceding more of their retail spaces to leisure facilities, such as gyms and aquariums. The Mall of the Emirates, which welcomes 42 million visitors per year, features a penguin enclosure and a skiing facility, while Dubai Mall features a flight simulator.
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