Commercial Real Estate
Top stories summarized by our editors
10/22/2018

ESL Investments, the hedge fund controlled by Sears Chairman Edward Lampert, is negotiating with one or more potential partners to contribute to a $300 million loan that would increase the retailer's financing in bankruptcy to $600 million, sources said. Lampert is the retailer's largest shareholder and its biggest creditor after investing billions in the company over more than a decade.

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Reuters
10/22/2018

New indices introduced by Green Street allow us for the first time to compare property price performance to total returns for property types outside of the traditional core REIT sectors. Get the full story here.

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Nareit
10/22/2018

The US Treasury has released new rules for investment in the Opportunity Zones that were introduced in last year's tax measure, answering many questions about the program. The rules are favorable for real estate and developers, and Michael Novogradac, an accountant for fund managers, said the rules provide "sufficient clarity for many more investments to go forward."

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US Treasury, federal government
10/22/2018

A slowdown in the housing sector has given apartment and home-rental stocks a boost in recent months, with REITs such as AvalonBay Communities up 9% and rental-home companies such as American Homes 4 Rent up 4.8% over the last six months. "Having pressure on home sales is a positive for the rental side of the industry," said American Homes 4 Rent CEO David Singelyn.

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American Homes
10/22/2018

As Amazon gets closer to selecting the location for its second headquarters, funds are being raised to invest in the area once it is known. Other companies are investing in such firms as JBG Smith Properties, which owns a concentration of buildings in Crystal City, Va., where many believe the new headquarters will be.

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Amazon, JBG Smith Properties
10/22/2018

Popular online brands such as Bonobos, Casper and Warby Parker have come to the conclusion that a physical presence is necessary to make a mark in retail. "You will definitely see more of these insurgents coming into brick and mortar," Jared Blank of Bluecore, said.

10/22/2018

Office tenants are working to comply with the new generally accepted accounting principles, or GAAP, lease accounting standards, with some considering five-year or two-year leases instead of the usual 10, writes Anchin, Block & Anchin accounting firm partner Zurab Moshashvili. For landlords, these shorter leases can negatively affect valuations.

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GlobeSt
10/22/2018

Sears Mexico has 95 retail locations spanning 9 million square feet of retail space and is seeing growth across the country, including the reopening of a store in Galerias Coapa, a retail center in Mexico City. Sears Mexico's e-commerce sector expects to see sales grow 65% this year.

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Sears Mexico
10/22/2018

Town Center, a retail center on the west side of Detroit, is getting new life with the addition of discount retailer Forman Mills. The property is also attracting startup local businesses taking advantage of the very low rent.

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Detroit Free Press
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Town Center, Forman Mills
10/22/2018

With a foreclosure lawsuit filed against it, Madison Properties USA has stalled on the renovations of Desoto Square in Bradenton, Fla. The developer purchased the property in 2017 with plans to redevelop it and change public perception about the struggling retail center, but vacant stores and slow-moving renovations concern locals.

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DeSoto Square