Editors’ Weekly News Roundup December 18 – December 22
The week before Christmas is generally considered a slow week for news, but that wasn’t the case this past week in the commercial real estate industry. In addition to two of the largest transactions of the year in their respective sectors, the week ending Dec. 23 saw the FDIC issue updated guidance in an area for which it has maintained the same guidelines since 2008.
Connect CRE reported that announcement from the agency responsible for ensuring the health of financial institutions in FDIC Updates Guidance for Banks with High CRE Loan Concentrations, our most-read story of the past week. The FDIC cited current risk factors in CRE lending and advised lenders to take steps to minimize those risks.
The Hunt family has owned the land surrounding Dallas’s Reunion Tower for decades and has now begun providing clues about its intentions for that land. Resonating with readers both in Texas and nationwide, Hunt Releases Details on “Multi-Billion Dollar” Reunion Tower Planwas the second most-read story this past week on Connect CRE. Those details include a large residential component along with hotel rooms.
Dallas wasn’t the only location for large-scale CRE moves. The waning days of 2023 finally yielded a blockbuster office lease on par with pre-pandemic norms. Law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP recommitted to Midtown Manhattan and to in-person work environments with a 765,000-square-foot space at 1345 Ave. of the Americas.
As reported in Fisher Brothers, JP Morgan Ink Largest Office Lease in ’23, Paul Weiss’ 20-year commitment represented the year’s high-water mark for leasing not only in Manhattan but also nationwide. Connect CRE’s New York and national readers made this our third most-read story.
Nor was the Paul Weiss lease the only big CRE news out of Manhattan. Luxury retailer Prada reaffirmed its own commitment to New York by acquiring the retail space it has occupied since 1997. Prada Buys Fifth Avenue Flagship Store for $425M ranked as the fourth most-read story for the week, again drawing readership both regionally and nationally.
Rounding out the top five is another story with a Manhattan angle. Eight months after John Kilroy Jr. announced that he would retire as CEO of Kilroy Realty, the Los Angeles-based company has found his successor—in New York.
Angela M. Aman, currently president and CFO of Brixmor Property Group, has accepted the position of Kilroy’s CEO, an executive move we reported in our fifth most-read story, Kilroy Realty Names Brixmor President as New CEO. Separately, we reported the news from Brixmor’s perspective as it begins the search for Aman’s permanent replacement.
Although the story’s readership didn’t rank it among the top five for the week, Connect CRE reported breaking news: the conclusion of the FDIC’s marketing of a $33-billion CRE loan portfolio formerly held by the failed Signature Bank. Santander Bank won the bidding for a 20% stake in a $5.8-billion portfolio of loans backed by rent-stabilized and rent-controlled multifamily properties.
Connect CRE wishes its audience and industry colleagues a successful 2024, and Weekly Roundup will return in January to sum up the most-read stories as selected by you, our readers.