Archive for December, 2009

GGP Emerges from Bankruptcy

Wednesday, December 16th, 2009

General Growth Properties' reorganization plan has received court approval, which could allow the company to emerge from bankruptcy protection by the end of the month. The plan restructures $10.25 billion of indebtedness, covering 92 properties. According to a company press release: The Plans allow for the restructuring of these 87 secured ... More

Wharton Real Estate Forum at NYSE

Tuesday, December 15th, 2009

Peter Linneman, a Professor of Real Estate at the Wharton School of Business and Principal of Linneman Associates, spoke to Bob Pisani on the floor of the NYSE, before attending Wharton's Real Estate Forum last Friday. A short and sweet interview, Bob asked about the mood of commercial real estate ... More

Fairfield Residential Bankrupt

Monday, December 14th, 2009

The WSJ has reported that Fairfield Residential has filed for bankruptcy. Fairfield, which has built some 64,000 apartments, condominiums and off-campus student-housing units throughout the country, failed amid an inability to refinance debt or sell investment properties. That left the private San Diego, Calif., company with a litany of near-term ... More

NREI’s 2010 Investment Outlook

Monday, December 14th, 2009

The National Real Estate Investor recently reported the findings of their 6th Annual Investment Survey of commercial real estate investor plans: "After a quiet year of investment sales, buyers are preparing to forge ahead with acquisitions in 2010. Two-thirds of investors (65%) who responded to the 6th Annual Investment Survey plan ... More

Review: REALOGIC Tools

Monday, December 14th, 2009

Recently, we downloaded a trial version of REALOGIC Tools. This program is an Excel add-in for extracting ARGUS data into a much more transparent and manageable file format. Prior to this we (as many others do) exported the ARGUS output into a new Excel spreadsheet, wrote new formulas to better ... More

A new CRE term: Zombie Buildings

Thursday, December 10th, 2009

ChicagoBusiness.com recently wrote a piece on the predicament many over leveraged landlords are facing today. Exhibit A: Tishman Speyer and their Chicago Loop portfolio which they acquired from Blackstone in 2007. Leveraged to the max, the properties are now worth less than the debt and Tishman is no longer willing ... More

REO Monitor: Solutia HQ, St. Louis

Thursday, December 10th, 2009

Foreclosure proceedings have been initiated on 575 Maryville Centre Drive, located in St. Louis, MO. The 257,000 square foot office building serves as the headquarters for Solutia Inc. Bluerock Real Estate acquired the building in a sale-leaseback transaction from Solutia in June of 2008 for $42.8 million and incurred a ... More

Simon says “It’s Prime Time”

Tuesday, December 8th, 2009

The NY Times just reported that Simon Property Group (NYSE: SPG) has announced its intent to acquire Prime Outlets from the Lightstone Group for $2.32 billion. This price consisted of about $560 million in cash and $140 million in preferred shares, or a total of $700 million in equity. This price ... More

What’s next for Maguire?

Tuesday, December 8th, 2009

The Wall Street Journal recently reported that Maguire Properties has hired a restructuring expert as a top executive. Robert White, a retired partner of O'Melveny & Myers joined the company in November. He had been serving as an outside consultant since August, the same month Maguire gave back 7 ... More

REO Monitor: NoHo14, North Hollywood

Wednesday, December 2nd, 2009

Bank of America has foreclosed on NoHo14. Developed by North Hollywood-based JSM Companies, the project was converted from for-sale to rental. The project began in 2004 and opened in 2008, following numerous work stoppages and move-in delays. Bank of America's REO website displays the property for sale with an asking ... More