Editors’ Weekly News Roundup July 9 – July 12
Connect CRE readers naturally are eager to know about any indications that the Federal Reserve sees an opportunity to begin, or at least think about beginning, a reversal of its increases to the federal funds rate. That’s why our reporting on testimony by Jerome Powell before a Senate committee ranked at the top of the past week’s most-read stories.
Fed Chairman Powell Cites Risk in Keeping Rates Too High for Too Longwas the headline, although the story made it clear that the Fed doesn’t plan to jump the gun, either. The nation’s central bank is on the lookout for “more good data” regarding inflation, which has been moving in an encouraging direction lately. (Click here for a Weekender story offering in-depth analysis and predictions around the Fed’s near-term policymaking.)
On both a national and regional level, the post-Fourth of July week was eventful in commercial real estate. Connect CRE readers came back from the holiday to the second most-read story for the week ending July 13, Lone Star Closes 12th Opportunity Fund at $5.3B.
The latest in Lone Star Funds’ series of opportunity funds isn’t a pure-play commercial real estate vehicle. In common with its predecessors, Lone Star Fund XII has a “flexible mandate to pivot across different markets and asset classes,” said Donald Quintin, CEO and global president of Lone Star. However, the Dallas-based fund manager has long been active in CRE, and it’s safe to assume that some of Fund XII’s $5.3 billion will be put to work in the sector.
It’s been said many times that California can and does serve as a bellwether for initiatives that sooner or later will have an impact elsewhere in the country, and that’s likely why our third most-read story drew national as well as statewide readership. The so-called Justice for Renters Act now has a number, Proposition 33, and the multifamily industry as well as local leaders have banded together to warn about the negative effects the ballot measure would have if enacted.
We reported on the coalition’s concerns in Statewide Campaign Sounds Alarm on California Prop 33 to Repeal Costa Hawkins.Among other things, Prop 33 would reduce the construction of new affordable housing, according to economists cited by the coalition.
Two thousand or so miles to the east, Connect CRE reported on a revision with more positive connotations. Local real estate leaders Bob Wislow and Camille Julmy collaborated with Gensler Chicago to issue a report that envisioned how to redevelop North Michigan Avenue, a stretch of Chicago that’s world-renowned for high street retail but which has been struggling since the pandemic.
Gensler Unveils Plans to Revamp Chicago’s Mag Milewas our fourth most-read story last week. It detailed a scenario for reimagining the Magnificent Mile, to include recentering the pedestrian experience to support tourism, drive revenue and reinvigorate the retail and entertainment destination.
A key CRE player who was instrumental in reimagining a neighborhood in another city—namely the Far West Side of Manhattan, now home to the Hudson Yards mega-development—Stephen Ross has turned his attention to South Florida in recent years. He made headlines last week by divulging that he is leaving Related Cos., the nationwide development firm he launched in 1972, to focus on Related Ross, with activities concentrated in Palm Beach County.
The breaking news story we sent out this past Thursday afternoon, Stephen Ross Stepping Down as Related Cos. Chairman, was the fifth most-read story in a week that also saw more big news out of California and a well-received Walker Webcast appearance by Ivy Zelman. No summer doldrums here.