Editors’ Weekly News Roundup October 21 – October 25
The nation’s third largest city ranked first as far as Connect CRE readership over the past week was concerned. Chicago was the setting for the story of a sale transaction, as well as a separate article on a setback for an ambitious project.
A neighborhood on the city’s South Side was the setting for 25-Unit Chicago Apartment Property Sells. Coming in at just under $3 million, the sale in the Morgan Park area of the city was arranged by Marcus & Millichap’s Jack Stanton and Kyle Stengle.
Along with being located in a “rapidly appreciating” neighborhood, the property also offered its new owner flexibility in terms of apartment layout, Stanton said. The story was the past week’s most read.
An upside of large-scale store closures due to bankruptcy is the opportunity for retailers in expansion mode. Burlington Takes Over 10 Texas Conn’s Locations, our second most-read story, detailed one such opportunity.
The recent bankruptcy filing of Conn’s, an appliance and furniture retailer based in the Houston area, dovetailed with the national growth plans of Burlington Stores Inc. The off-price apparel chain plans to open 100 new stores per year for the next five years.
Ranking third among the week’s most-read stories was another transaction in keeping with current retail trends, in this case the investor appeal of grocery-anchored centers. Retail REIT Phillips Edison & Company came to Bethel, CT and came away with the ownership of a center anchored by a Big Y Supermarket.
The sale described in Phillips Edison Snaps Up Grocery-Anchored Center in Fairfield County was arranged by a CBRE National Retail Partners team that has racked up a number of similar transactions across the New York Tri-State area. Along with affluent demographics, Bethel Shopping Center also offers lease-up opportunities in the form of a well-located pad site.
News reports surfaced this past summer that Deutsche Bank sought to decrease its exposure to U.S. commercial real estate debt, an arena in which it has been among the most active participants over the years. A status report titled Deutsche Bank Nears $1B Sale of U.S. CRE Loansshowed that the lender is moving closer to its goal and was the week’s fourth most-read Connect CRE story.
Indicative pricing on the loans has left the company “encouraged,” CFO James von Moltke said on an investor conference call. It’s not yet clear how much of the nationwide loan portfolio is devoted to office, although overall nearly half of Deutsche’s U.S. CRE exposure is in this sector.
Returning to Chicago, Connect CRE reported on a less positive turn of events than the successful closing of a property sale. The University of Illinois’ vision for its Discovery Partners Institute had been a key element of Related Midwest’s large-scale The 78 development in the South Loop for at least the past two years, but readers learned in University of Illinois Pivots from Plans at The 78that the school has reconsidered its presence there. The story rounded out the top five for the past week.