the Editors of Commercial Property Executive
Triple Net Properties Emerges from SEC Investigation Untarnished
Triple Net Properties L.L.C. has been spared by the Securities and Exchange Commission in its investigation of the real estate company, which came under the ownership of Grubb & Ellis Co. last December in a reverse merger with Triple Net’s affiliated holding company, NNN Realty Advisors. The SEC concluded the investigation with a recommendation of no enforcement action. The SEC initiated “In the matter of Triple Net Properties L.L.C. in 2004, requesting information from the company regarding its disclosure in public and private securities offerings related to the offering of the sale of units from July 11, 2003 through October…
Centro Wins Another Debt Extension
Centro Properties, which has struggled with debt since the early days of the credit crunch, has managed to keep the wolf at the door at bay a little longer, negotiating a new deadline of December 15 to deal with some its debt. About $2.7 billion in debt–mostly owed to Australian creditors–is affected by the new deadline. Another part of Centro’s overall debt, about $450 million owed to U.S. creditors, has also been extended to September 30, as a result of the aforementioned agreement with the company’s other creditors on the December deadline. “The extensions provide us with breathing space,” a…
Houston Landlords, Tenants Focus on ‘Green Competition’
Houston’s tenants and landlords have focused more on green building lately, and it all owes to competition.Energy companies can use a green office as a recruiting tool to attract engineers in a hotly competitive job environment, said Crescent Real Estate vice president Frank Staats. “They are looking all over the world for talent, so if you want to have someone relocate from Denver to Houston, you want to be able to offer them a healthy working environment,” he said.The number of new buildings that are LEED certified is also spurring landlords of existing buildings to join the environmentally friendly fray,…
Affordable Housing Finds Green Dollars
When Blue Sea Development completed the South Bronx’s 64-unit Morrisania Homes community in August 2007, it marked the first affordable housing development in New York state to receive the LEED for Homes designation. Financed by the New York State Affordable Housing Corp., the project, which features two- and three-family homes, met U.S. Green Building Council standards for water efficiency, sustainable site planning, energy materials and resources, and indoor environmental quality and design process. Morrisania Homes’ achievement represents the push to develop housing that is affordable yet environmentally sustainable. Also taking part in the movement is Capitol Hill Housing, which utilized…
New Ways to Grow: Case Studies in Expansion by Branching Out
Their reasons to enter a new business area range from sensing changes in the commercial real estate investment climate to sourcing difficult development projects in order to compete in crowded major markets.But executives who have taken their companies into new and innovative business areas say that despite the challenges, the expense and personnel requirements moving in a new direction can entail, there are also significant benefits to be harvested.The Search for Synergy. The merger of Grubb & Ellis Co. and NNN Realty Advisors Inc. brought together a different combination of companies that what is usually seen in the commercial real…
Beyond the Handshake
Real estate professionals find that using social networking websites like LinkedIn.com, UpWorld.com and MyDealbook.com help expand relationships and forge deals. But they are increasingly discovering other benefits, as well. The sites have proven to be valuable tools in the search for new employees—especially those that are happy with their current position and therefore have not been seeking a move. “Passive recruiting is key to many businesses,” said Kathy Anemogiannis, president of Trireme Consulting Inc.Cushman & Wakefield Inc. uses social networking sites to find such passive candidates; its recruiters have profiles on the major social networking sites, including LinkedIn, Facebook.com and…
Credit Crunch Descends on San Francisco Office
Like the office sectors elsewhere, San Francisco’s market has seen damage to commercial real estate investment from the credit crunch. While owners of top office properties may have sold their assets last year to take advantage of low cap rates, lower prices are deterring them from taking the same action now, according to Chris Economou, investment associate for Marcus & Millichap Real Estate Investment Services Inc. “If you have a quality asset that is 100 percent leased, you’re not necessarily dipping your toe in the water today,” he said.Indeed, for those properties that do trade, buyers are receiving discounts of…
Brokers Without Borders
From global giants to networks of entrepreneurial affiliates, brokerage firms are constantly striving to raise their profiles and gain market share. They do so via acquisition, recruitment and alliances.Deciding exactly when, where and how to expand in the global marketplace requires a mixture of science and art. Cushman & Wakefield Inc., for instance, has identified a score of markets worldwide that offer potential for expanding transaction services. Yet CEO Bruce Mosler insists that the firm’s push for global growth involves much more than merely adding dots to the map. “Our goal is not to be in every single market around…
Steady March
The progression toward globalization marches steadily onward—and today’s steps include not just expansion into new markets but also improvement of the overall strategy involved. For corporations, that means evaluating how best to organize business oversight to ensure effective coordination of departments and decisionmaking.There are a variety of approaches and more than one could be right for any company, but one overreaching improvement is in cohesiveness of strategy across the company. Of course, diversity of markets can make this tough to achieve, but the progress is helping real estate departments better control, track and measure performance across the portfolio while also…
Cash Takes the Throne
.By Anthony GrazianoSophisticated private and public commercial real estate investors staring into the headlights of downfall projections should take heart. The market is actually shifting back to equilibrium, where cash and good judgment will reign.The past two quarters have been turbulent for the real estate capital markets. Barrels of ink have prognosticated whether or when the other shoe will drop. Will the increased cost of borrowing drive capitalization rates up, thereby lowering prices? Will higher debt-coverage ratios balance the pricing equation by driving asset prices downward?Much of the dialogue has centered around the principal differences between the last commercial real…