Top Stories

Dallas Cowboys Unveil Plans for Retail Block at Team’s $1.5B Mixed-Use Development

by John Nelson May 5, 2016

FRISCO, TEXAS — The Dallas Cowboys have unveiled plans for a 200,000-square-foot retail block at The Star in Frisco, a $1.5 billion, 91-acre mixed-use development that will include the NFL team’s new headquarters. In addition to the retail space and corporate headquarters, The Star in Frisco will feature the Cowboys’ training complex, a 12,000-seat multi-use event center and an Omni hotel. “The retail area will allow visitors to enjoy The Star whether there’s an event happening or simply a Friday night out with friends and family,” says Jerry Jones Jr., executive vice president and chief sales and marketing officer for the Dallas Cowboys. Storefronts will line The Star Boulevard, Winning Drive and Cowboys Way at The Star, and will provide shoppers and diners with a Dallas Cowboys brand experience. The restaurants that will be opening locations at The Star include City Works, Dee Lincoln Prime, Liberty Burger, Mi Cocina, Neighborhood Services, Nestlé Toll House Café by Chip and Tupelo Honey Café. The retail space will be located south of the Cowboys’ headquarters and The Ford Center, which will house the event center and the team’s training complex. Neighborhood Services will be located inside the Omni hotel. Next Step Dance, a …

May 5, 2016

Features Retail Top Stories

How Smartphones, Showrooming Impact Property Taxes and More

by Jeff Shaw May 5, 2016

The battle between physical stores and online retail rages on, but the recent explosion in smartphone usage is blurring the battle lines. Using smartphones, consumers in a store now can simultaneously shop and compare pricing and product availability at competing stores or online. The practice is sometimes referred to as “showrooming.” Increasingly, retailers must simultaneously invest in a combination of brick-and-mortar stores, websites, digital marketing and merchandise delivery to sell goods. Only the real estate component of that infrastructure is subject to property tax. If property owners identify the portion of store sales attributable at least partially to online shopping, they can argue for taxable property values more accurately based on the remaining sales volume attributable to a store’s physical location and condition. Retailers that think mobile is a channel use the wrong metrics to measure the smartphone’s impact on retail. Smart retailers focus on the impact on overall business rather than trying to measure only app downloads or channel sales. Extrapolating a retail property’s value from base rent is relatively easy, but what happens when rent is based on sales? How do sales that take place in the store via smartphone, or online transactions that stem from a store …

May 5, 2016

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Retail Top Stories

Aéropostale Inc. Files for Chapter 11 Bankruptcy, Will Close 154 Stores

by Haisten Willis May 4, 2016

NEW YORK CITY — After losing money for 13 consecutive quarters, teen apparel retailer Aéropostale Inc. (OTCQX: AROP) has filed for Chapter 11 bankruptcy protection. Aéropostale will close 113 U.S. locations, as well as all 41 stores in Canada, and could announce more store closures at a later date. Of the 154 stores closing, 117 lost money last year, and the rest generated little profit. Click here to see a complete list of planned store closures. Store closing sales are scheduled to begin in the United States during the weekend of May 7-8, and in Canada during the week of May 9. The company plans to “emerge from the Chapter 11 process within the next six months as a standalone enterprise with a smaller store base, increased operating efficiencies and reduced SG&A [selling, general and administrative] expenses,” according to a press release from the company. Any sale of the company would be announced within the next six months. “While initiatives such as the implementation of our two-chain Factory and Mall strategy and our merchandise repositioning have started to gain traction, the ripple effects of an ongoing dispute with our second-largest supplier put substantial strain on our liquidity while also preventing …

May 4, 2016

Florida Retail Southeast Top Stories

Whitman Family Development Submits Plans for $400M Expansion of Bal Harbour Shops Near Miami Beach

by Katie Sloan May 3, 2016

BAL HARBOUR, FLA. — Whitman Family Development has submitted updated plans for a $400 million expansion of Bal Harbour Shops, an upscale, 450,000-square-foot, open-air shopping center located in Bal Harbour Village near Miami Beach. Expansion plans include the addition of the first Barneys New York flagship store in the Southeastern U.S., as well as significant upgrades to longtime anchor tenants Neiman Marcus and Saks Fifth Avenue. The expansion will also include the addition of new luxury boutiques and restaurants, expanded vehicle entryways and exits with improved traffic signals, and wider sidewalks with increased landscaping and tree canopy around the shops on 96th Street and Collins Avenue. The new plans are the result of a Bal Harbour Village Council meeting on April 13 during which all council members expressed support for the expansion, but deadlocked 2-2 on the sale of the current Village Hall site that was central to the proposal. The revised plan reduces the proposed footprint by approximately 19 percent, according to reports by the Miami Herald, and will be built entirely on land already owned by Whitman Family Development. “The updated plan meets all of our goals, albeit in a different configuration,” says Matthew Whitman Lazenby, president and CEO of …

May 3, 2016

Dodge Data New Construction Starts Index

Features Top Stories

Pace of New Construction Retreats Slightly in March after February Spike, Dodge Data Shows

by Jeff Shaw May 3, 2016

NEW YORK CITY — After a 13 percent jump in February, the pace of new construction starts in March across all real estate sectors fell by 1 percent, according to New York-based data firm Dodge Data & Analytics. The data is based on groundbreakings nationwide and uses the estimated construction costs of each project. Construction starts in March totaled a seasonally adjusted annual rate of $660.5 billion, down from $667.6 billion in February. The lift in February was largely fueled by utilities and public works, according to Dodge. While that construction activity pulled back in March, other commercial real estate sectors filled the bulk of the gap. If electric and gas plants are excluded, the total for March actually rose 4 percent versus February. The report also notes that March was well above the previous seven months, when new construction hit a temporary slump. “While March construction activity was down slightly from February, it stayed above the lackluster performance witnessed during the second half of last year that continued through January,” says Robert Murray, chief economist for Dodge. Big Lift in Certain Sectors Some sectors even saw a massive spike in new construction starts. Transit buildings, for example, shot up …

May 3, 2016

Office Texas Top Stories

Cousins Agrees to Acquire Parkway Properties for $2B in Stock, Spin Off Houston Properties

by Jeff Shaw May 2, 2016

ATLANTA — Cousins Properties (NYSE: CUZ) and Parkway Properties (NYSE: PKY) have agreed to a $1.95 billion stock-for-stock merger. The deal will simultaneously spin off of both companies’ Houston-based assets, creating a new publicly traded REIT called HoustonCo. The combined company will operate under the Cousins Properties name and continue to own Class A office towers in Sun Belt markets. The combined portfolio will include 41 properties totaling 15.8 million square feet of space in Atlanta; Austin, Texas; Charlotte, N.C.; Phoenix; and Orlando and Tampa, Fla. Although Parkway currently owns properties in Jacksonville, Fla., a Cousins investor presentation about the merger implied those buildings will be sold. Under the agreement, Parkway shareholders will receive 1.63 shares of Cousins stock for each share of Parkway stock they own. The combined company will create HoustonCo via a special dividend distributed to its shareholders once the merger is complete. Jim Heistand, Parkway’s CEO, will head HoustonCo after the spin-off. Cousins and Parkway shareholders will own about 52 percent and 48 percent, respectively, of both Cousins and HoustonCo. Both companies’ boards of directors approved the transactions unanimously. Affiliates of TPG, which own about 21 percent of Parkway’s outstanding common stock, have also agreed to …

May 2, 2016

Industrial New York Northeast Top Stories

Gramercy Property Trust Acquires Industrial Portfolio for $115.2M

by Christina Cannon April 29, 2016

NEW YORK — Gramercy Property Trust (NYSE: GPT) has acquired a 12-building industrial portfolio for $115.2 million. The seller in the deal was undisclosed. The portfolio consists of approximately 1.5 million square feet. The majority of the assets are located in major markets including New Jersey, Los Angeles, Chicago, Baltimore and Toronto. The aggregate net operating income for the first year is approximately $9.4 million with an 8.1 percent initial cap rate. The weighted average remaining lease term is 13 years. In addition to the acquisition, Gramercy assumed three mortgages totaling $37.3 million and one mortgage totaling approximately $10.9 million in Canadian dollars. Collectively, the loans have a remaining term of 5.5 years and a weighted average interest rate of 4.8 percent. Gramercy is a real estate investment trust specializing in acquiring and managing single-tenant, net-leased industrial and office properties. The company’s stock price closed Thursday, April 28 at $8.46 per share, up from $7.79 a year ago.

April 29, 2016

Hospitality Top Stories

Chinese Investment Group Agrees to Acquire Carlson Hotels

by John Nelson April 28, 2016

BEIJING AND MINNETONKA, MINN. — HNA Tourism Group Co. Ltd., a Chinese conglomerate with stakes in industries such as aviation and real estate, has entered into an agreement to purchase Carlson Hotels Inc., which owns the Radisson and Country Inns & Suites hotel brands. The purchase price for the Minnetonka-based hotel company and its hotels was undisclosed. “Carlson Hotels owns a powerful set of global brands and this historic agreement provides tremendous opportunities for growth,” says David Berg, CEO of Carlson Hospitality Group. “We look forward to working within HNA Tourism Group, a greatly respected global enterprise, in what will be an exciting new chapter in the history of Carlson Hotels. As part of HNA Tourism Group, Carlson Hotels will have an opportunity to advance our commitment to providing guests with hospitality worldwide.” Founded in 1938 by Curt Carlson, Carlson Hotels’ portfolio now spans 1,400 hotels in operation and under development with more than 220,000 rooms. The hotels are spread across 115 countries and territories. The company and its branded hotels employ roughly 90,000 people. “We have great respect for the Carlson family and a deep appreciation for its history and special culture,” says Bai Haibo, board member of HNA …

April 28, 2016

Features Top Stories

Commercial Real Estate Owners Need to Consider Investing in Cyber Insurance

by John Nelson April 28, 2016

Almost daily the media is reporting on another data/security breach, and today’s cyber criminals are becoming increasingly sophisticated while the technology needed to combat them lags behind. To date, more than $75.5 million has been spent on cyber claims losses, according to the most recent Cyber Claims Study published by NetDiligence, a cyber risk assessment and data breach services company. The study noted personally identifiable information was the most frequently exposed data at 94 percent, followed by payment card information at 27 percent. Analysts predict that cyber risk protection will be the top growing type of insurance for commercial real estate owners and operators. Without coverage, any business using a point of sale (POS) system or that stores data is at risk, especially those that store consumer data that can be used for criminal gain such as credit card information. This puts property managers of retail and apartment properties and retail tenants in a direct line of vulnerability for cyber criminals. Cyber criminals seek out information like rental applications, credit reports, leases and rental agreements, which contain personal information of applicants and tenants. Companies are required to dispose of these materials under the Fair and Accurate Credit Transactions Act federal …

April 28, 2016

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Multifamily Nevada Top Stories Western

Camden Property Trust Divests Entire Las Vegas Multifamily Portfolio for $630M

by Haisten Willis April 27, 2016

LAS VEGAS — Camden Property Trust (NYSE: CPT) has sold its Las Vegas portfolio, largely consisting of apartment communities, for $630 million. The portfolio includes 15 garden-style apartment communities totaling 4,918 units, a retail center and 19.6 acres of undeveloped land. With the sale, Camden is exiting the Las Vegas market, according to the Houston Business Chronicle. Company executives will discuss the sale during a first-quarter earnings call slated for April 29. The buyer was not named. However, Las Vegas business journal Vegas Inc. reports the purchaser is a joint venture between Irvine, Calif.-based Bascom Group and Los Angeles-based Oaktree Capital Management. The joint venture also owns Vantage Lofts, a luxury apartment project in the Las Vegas suburb of Henderson. Camden Property Trust is a publicly traded real estate firm that owns, manages, develops, redevelops, acquires and builds multifamily communities. The Houston-based company owns and operates 158 properties totaling 55,254 units across the United States. The company’s stock price closed at $82.64 per share on Tuesday, April 26, up from $76.28 one year ago. — Haisten Willis

April 27, 2016

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