- Pimco Says “Storm is Brewing” in U.S. Commercial Real Estate “U.S. commercial real estate prices may fall as much as 5 percent in the next 12 months amid tightened regulations, a wall of debt maturities and property sales by publicly traded landlords, Pacific Investment Management Co. said in a report Monday. A global surge in demand for U.S. property investments that pushed real estate values to records may wane as slowing growth in China, lower oil prices and dislocated debt markets threaten to halt six years of price growth, Pimco portfolio managers said in their report.” (Bloomberg)
- This One Index Change Could Make REITs Even More Popular “As of August 31, there will be a new (11th) real estate sector in both the S&P Dow Jones and MSCI indices. That means REITs (real estate investment trusts) that own property — not those that own mortgages with a lot of borrowed money — will have a new home away from the financial sector. According to a recent S&P report by Christopher Hudgins and Todd Rosenbluth, many actively managed large-cap core mutual funds are radically underweight REITs.” (MarketWatch)
- Risk Factors of Non-Listed Real Estate Fund Returns “We explore in detail the relationship between non-listed fund returns and size, gearing and age. The analysis also provides results differentiating for various phases of the business cycle and characteristics such as investment style and fund structure. The time period considered is also longer than that in previous studies focusing on Europe and includes the global financial crisis. In addition, our research uses more relevant macroeconomic risk factors by considering country-specific factors unlike several studies in the extant literature.” (ValueWalk)
- Decade After Housing Peaked: Owners Richer, Renters Hurting “It's a troublesome story playing out across America in the 10 years since the housing bubble peaked and then burst in a ruinous crash: As real estate has climbed back, homeowners are thriving while renters are struggling. For many longtime owners, times are good. They're enjoying the benefits of growing equity and reduced mortgage payments from ultra-low rates. But for America's growing class of renters, surging costs, stagnant pay and rising home values have made it next to impossible to save enough to buy.” (ABC News)
- U.S. Commercial, Multifamily Mortgage Debt Rises to $2.86 Trillion in May “According to the Mortgage Bankers Association, the level of commercial and multifamily mortgage debt outstanding increased by $35.3 billion in the first quarter of 2016, as three of the four major investor groups increased their holdings. That is a 1.2 percent increase over the fourth quarter of 2015. Total commercial and multifamily debt outstanding rose to $2.86 trillion at the end of the first quarter. Multifamily mortgage debt outstanding rose to $1.07 trillion, an increase of $18.2 billion, or 1.7 percent, from the fourth quarter of 2015.” (World Property Journal)
- David Beckham in Stadium Talks with Leaders Behind All Aboard Florida “David Beckham hopes to land the parent company of the All Aboard Florida rail and real estate portfolio as his partner in a new soccer stadium in Overtown, with talks under way to have the private equity firm help bankroll the 25,000-seat venue about six city blocks from the planned train depot in downtown Miami, according to sources familiar with the discussions. The reported negotiations between Miami Beckham United, the corporate entity behind the retired soccer star’s stadium effort, and executives with Fortress Investment Group, All Aboard’s parent company, have not ended in a deal, the sources said.” (Miami Herald)
- NHL Arenas are a Gamble Everywhere—Except in Las Vegas “As the league considered expansion during the past few months, Commissioner Gary Bettman foreshadowed Quebec’s exclusion by noting that fluctuations in the Canadian dollar have cost the league roughly $200 million in revenue. It also isn’t clear where the corporate backing for the $500 million ($640 million Canadian) expansion fee would come from. That may have softened the blow for hopeful fans in Quebec, who’ve only seen a Montreal Canadiens pre-season game played in their arena, but it’s an all-too-familiar situation for some of their like-minded neighbors to the south.” (MarketWatch)
- Under Armor’s Slam-Dunk Deal “The size of the TIF that Plank has requested is unprecedented for Baltimore. At more than half a billion dollars, it would be the third-largest TIF deal for a private company in U.S. history. And though the money it would raise would go toward funding improvements like parks, roadways, and bike paths, rather than Under Armour’s new headquarters, Sagamore’s project in Baltimore must also be understood as a tool that would help fuel Under Armour’s continued growth.” (Slate)
- WeWork, Kushner Mulling WeLive in Jersey City “Jersey City could become home to WeWork’s third co-living location in the U.S. The shared office company and Kushner Companies are mulling turning part of the 57-story development One Journal Square into a WeLive space, according to a source familiar with the project. Kushner Companies plans to complete the $400 million tower, developed in partnership with WeWork and KABR Group, in 2018. According to previous news reports, WeWork will run a 101,000-square-foot co-working space in the building.” (The Real Deal)
- Nordstrom Makes Big E-Commerce Decision “Nordstrom Inc. has re-evaluated its near-term needs for e-commerce infrastructure. The luxury retailer has decided to postpone the planned opening of a West Coast fulfillment center dedicated to fulfilling digital orders until 2020 or later. For the past year, the cities of Visalia and Fresno, California, had both been in discussions with Nordstrom about serving as the site of the proposed center. However, the retailer sent the governments of both cities an identically worded letter signed by co-president Erik Nordstrom dated June 15.” (Chain Store Age)
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