the Editors of Commercial Property Executive
CBRE’s Sulentic Takes Over CFO Spot as Firm Faces Struggling Market
Robert Sulentic, CEO of CB Richard Ellis Inc.’s development services business, has been pushed up the ladder to the company’s CFO position as the company navigates the waters of the struggling commercial real estate industry. Sulentic replaces Kenneth Kay, who in November of last year, resigned his post of six years to become CFO of Las Vegas Sands Corp.Speaking to CPN, a CBRE spokesperson confirmed that the company engaged in a full search to fill the CFO position. Sulentic (pictured), who boasts over a quarter-century of real estate industry experience under his belt, emerged as the best man for the…
Starrett City Latest Victim of Economy, No Longer For Sale
In yet another sign of just how affected even the New York City market has been by the faltering economy, the owners of the massive Starrett City multi-family complex in Brooklyn have given up on a plan to sell the property for more than $1 billion, according to the New York Times. The news is the latest troubling development in a New York market that has far from escaped the economic malaise gripping the nation. It was a significantly brighter market in 2006, when the 46-tower, 5,881-unit complex (pictured) was put on the block by its owner, a group of…
Trump Resorts Latest Hotel Firm to Fall Victim to Economy
As high-end resorts continue to feel the crunch of the staggering economy, the latest firm going down in the bankruptcy rolls is Trump Entertainment Resorts Inc. along with subsidiaries Trump Entertainment Resorts Holdings L.P. and Trump Entertainment Resorts Funding Inc. Those entities filed voluntary petitions for relief under Chapter 11 in United States Bankruptcy Court for the District of New Jersey in Camden. Donald and Ivanka Trump resigned as members of the board of directors of the company on Feb. 13. He was chairman of the board and a member of the board’s executive committee. She was a member of…
Economic Update — Grocers Have The Edge in Retail
In terms of profits, Wal-Mart took a haircut in its most recent fiscal quarter, but not a bath. Net income for the period ended Jan. 31 was $3.79 billion, or 96 cents a share, down from $4.1 billion, or $1.02 a share, during the same period a year ago. For a company that’s used to growth upon growth, that might be a disappointment, but most retailers would probably trade their recent numbers with Wal-Mart’s without hesitation. The retailer’s stock nudged upward 3.86 percent on the news.The best category for Wal-Mart was reportedly groceries as consumers cut spending in other categories,…
As Other NYC Projects Falter, Atlantic Yards Still on Track
Amid a flurry of announcements of delayed projects in New York City, Forest City Ratner Cos. has orchestrated the $161.9 million refinancing of a loan connected to its $4 billion Atlantic Yards project in Downtown Brooklyn. Gramercy Capital Corp., which made the original loan to Brooklyn-based FCRC for the purchase of land for Atlantic Yards, provided the refinancing along with a group of co-lenders. Timing of the deal was just right, as the loan was scheduled to be repaid this month; the new loan is due in February 2011. To be developed in phases over a long-term period, the Frank…
Global Investment in CRE Down 59 Percent in 2008; Will Drop More in 2009
It was the thud felt around the world. Last year, as the credit crunch and economic downturn spread from country to country, investment in commercial real estate across the globe plummeted 59 percent, going from just over $1 billion in 2007 to just $435 billion, according to real estate services firm Cushman & Wakefield Inc.’s Investment Atlas 2009, which is scheduled to be published later this month. North America topped the list with a 73 percent decline in investment, followed by Europe, where investment plunged 52 percent, and then Asia, where numbers fell 45 percent. While investment activity slumped pretty…
Economic Update — A Few Retailers Look for Growth in ’09
Who’s still opening retail locations in this difficult economy? Once again following Apple’s example, Microsoft Corp., for one, has decided to open a chain of retail locations.Interestingly, the software behemoth has hired an exec from Wal-Mart, the retail behemoth, David Porter, to oversee its entrance into the retail biz. How will the Microsoft stores be different? Details are few so far, but instead of genius bars, there will be guru zones (or something) in the store. Instead of an Apple logo and ultra-stylish decor, there will be… a pomegranate and cinder blocks? Time will tell. Buffalo Wild Wings is also…
CBRE Report: Slowdown Tightens Global Grip
Economic pain is spreading to a growing number of commercial real estate markets around the world, concludes a new assessment by CB Richard Ellis Inc. The report’s title, “The Quarter the Global Economy Stalled,” suggests that the end of 2008 was a turning point. “GDP reports or estimates for the world’s major economies are all down, and most nations are reporting declining industrial production and falling exports, the latter being quite severe in the largest exporting nations,” concludes the analysis, which was prepared by an international five-member team including Raymond Torto, Nick Axford, Andrew Ness, Kevin Stanley and Raymond Wong….
D.C. Investors Say City has Advantages, but Not Immune to Economic Crisis
With its large governmental employment sector, Washington, D.C., is likely to fare better than many other cities as the U.S. fights the worst economic downturn in a decade, but the city is not impervious to the effects of the economic slowdown. That was the conclusion of investors who convened for the annual Transwestern-Commercial Property News Investor Roundtable, held last Thursday in Washington, D.C.Indeed, D.C. shines brightest when the U.S. enters crisis mode. “The Federal Government flips on a switch,” said Marc DeLuca, director at ING Clarion. In the last economic downturn in 2002, the city fared better than many other…
Gas Stations, Casual Dining Win Over Buyers
Though net lease retail assets will be a harder sell this year than they have been in years past, investors are far from ready to write off the entire category, according to Marcus & Millichap Real Estate Investment Services Inc. In a new report, an advance copy of which was obtained by CPN, Marcus & Millichap projects that many net lease investors will focus on fast food restaurants and gas stations, as well as distressed assets in all categories.During a time when net lease retail asset prices have generally stayed flat or dipped, asset values in some categories have been…