Category: Real Estate

Commercial Real Estate Use Is Changing

by Randybaconin Real EstateLeave a Comment on Commercial Real Estate Use Is Changing

Mall Remodels

The practice of taking an existing structure and repurposing it for some other use is not necessarily a new idea. This practice of adaptive reuse has, however, become increasingly common in the apartment industry.

No single reason explains this boom; it is a combination of factors. But one factor that is easy to point to is the fact that people enjoy living downtown. Renters have proven this over time by their willingness to pay more for urban core units.

Without deeply discussing principles of urban geography, one can see many structures that handily lend themselves to adaptive reuse in or near downtown areas. As cities evolved, centrally located buildings that once served a non-residential purpose (e.g. mills, factories, warehouses, etc.) are now placed in areas that present attractive residential opportunities.

View entire article here in Forbes.com.

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Study: Restaurants deliver halo effect for retail centers

by Randybaconin Real EstateLeave a Comment on Study: Restaurants deliver halo effect for retail centers
Retail Real Estate Financing
For the first time ever in 2016, U.S. restaurant sales eclipsed grocery store sales — and that’s good news for retail centers
The amount of space dedicated to food in retail centers has grown from 5% in 2007 to 15% today.  And the trend is expected to increase to 20% by 2025, according to a study, “The Successful Integration of Food & Beverage within Retail Real Estate,” from the International Council of Shopping Centers (ICSC).
“The increasing popularity of dining out is revitalizing retail real estate around the globe by creating a true sense of community where people can go out to dinner, take in a movie and shop, all in one place,” said Tom McGee, president and CEO of ICSC. “Centers that are strategic and innovative when incorporating foodservices are sure to reap benefits such as increases in foot traffic, dwell time and number of visitors.”

Restaurants deliver for retail centers

The two main factors driving the growth are technology advancements and the rise of an experience economy, which was fueled by millennials and adopted by all generations.
View entire article here in Chain Store Age or download report from ICSC.
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Call us about financing today

by Randybaconin Real EstateLeave a Comment on Call us about financing today

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J.C. Penney Closings Could Become a Critical Issue for Lower Quality Malls

by Randybaconin Real EstateLeave a Comment on J.C. Penney Closings Could Become a Critical Issue for Lower Quality Malls

Retail real estate financing

As struggling retailers seek to streamline their brick-and-mortar portfolios, massive store closings continue. But with anchor tenants that open mall owners to the risk of defaulting on their CMBS loans, store closures present even more of a challenge. The current wave of closings in the department store sector, for example, may put lesser quality malls at substantial risk.

Consider J.C. Penney. The department store chain recently announced 140 upcoming store closings, but could end up closing more locations, CNBC reports. Morningstar Credit Ratings analyzed the CMBS debt load on malls with exposure to J.C. Penney recently and found that as a collateral tenant, CMBS exposure to J.C. Penney totals $16.43 billion.

We spoke with Edward Dittmer, vice president of CMBS at Morningstar Credit Ratings, to shed more light on the firm’s findings and their significance for mall owners and retail investors.

View entire article in National Real Estate Investor.

Find out more about commercial real estate financing here or contact us to discuss your next opportunity.

Will the Department Store Sector Survive?

by Randybaconin Real EstateLeave a Comment on Will the Department Store Sector Survive?

Sears Store

Post-holiday store closings are as dependable as the seasonal tree lightings and concerts that precede them. When department store analysts announced that store closings could number 550 in the next couple of years, the outlook cast yet another shadow over the brick-and-mortar segment of the retail industry.

But heavy shuttering of stores does not always portend doom, according to industry experts. Retailers are taking opportunities to reshape their merchandising strategies and companywide footprints in ways that will support their long-term profitability, the experts note.

View entire article regarding Retail Sector here in National Real Estate Investor.

If your looking to refinance a retail or other commercial property type contact Liberty Realty Capital.

 

Pittsburgh Mills Mall Sold For $100 At Foreclosure Auction

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TARENTUM, Pa. (AP) – Wells Fargo Bank has purchased one of the biggest indoor malls in Pennsylvania from itself – for $100.

That’s how much the bank paid for the 1.1 million-square-foot Galleria at Pittsburgh Mills on Wednesday.

The mall in Frazer Township, about 20 miles northeast of Pittsburgh, was sold at a foreclosure auction.

Wells Fargo foreclosed last year on the mall which opened in 2005. The mall was once worth $190 million but recently appraised at just $11 million and is slightly more than half occupied.

Wells Fargo foreclosed because Pittsburgh Mills Limited Partnership owed the bank more than $143 million on a 2006 loan.

View entire story hear at CBS Pittsburgh website

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