Pebblebrook’s offer “does not constitute, and could not reasonably be expected to lead to, a superior proposal” to Blackstone’s, the company said in the statement.
Brookfield has been in talks to take a roughly 50 percent stake in the property, but the new capital it plans to invest would likely command a greater share.
A provision in earlier drafts of the legislation would have allowed chains to immediately write off their expenses when improving locations, or moving into empty ones.
The capital requirement, which the Federal Housing Finance Agency proposed Tuesday, would be suspended as long as the companies remain in federal conservatorship.
At its annual meeting, the owner of Saks Fifth Avenue heard from an exasperated shareholder wondering why the retailer’s not doing more to cash in on hot property.
