Retail Real Estate's 2009 in Review
Dec 29, 2009 9:05 AM
December
In a surprise move, Simon Property Group announces it has reached an agreement to buy Prime Outlets Acquisition Co. and some of its affiliated entities from the Lightstone Group and Lightstone Value Plus REIT Inc. for approximately $2.3 billion. The purchase price includes $713 million in equity and the assumption of $1.2 billion in non-recourse mortgage debt and the payoff of $405 million of existing construction debt.
Inland Western Retail Real Estate Trust Inc. obtains a new $625 million, non-recourse, 10-year secured loan from JPMorgan Chase Bank N.A. The loan is secured by a portfolio of 55 retail properties in a joint venture owned by Inland Western and principals of The Inland Real Estate Group Inc. JPMorgan is slated to convert the $500 million first mortgage in the deal into a CMBS offering and plans to do it without support from the government's TALF program. It will sell $125 million in mezzanine debt through private placements. This provides hope that the CMBS market is beginning to revive.
The industry's mood remains cautious at the ICSC New York National Conference and Dealmaking.
There are a flurry of developments as General Growth makes a lot of progress on its reorganization.
The final reading of the Moody’s/REAL Commercial Property Price Index for 2009—which covers through the month of October—shows that prices are 43.7 percent off 2007 peaks.
Realpoint LLC's monthly report shows increases in the delinquent unpaid balance for CMBS in almost every month. In October, the amount increased to $32.55 billion, up from $31.73 billion in September. The figure is a 504 percent increase over October 2008 and is more than 14 times the low point of $2.21 billion recorded in March 2007.
CBL & Associates Properties announces that Stephen D. Lebovitz will assume the post of CEO at the company effective Jan. 1. He will succeed his father, Charles B. Lebovitz.
Leaders from major commercial real estate trade groups meet with Treasury Secretary Tim Geithner to discuss possible measures to aid the industry. According to the story, “One source said the meeting did not generate any specific, imminent policy steps to help the industry, which is struggling to recover from the recession and financial crisis. The source described it as a ‘listening session’ for Geithner and several of his top aides.”
Scotland's second largest mall trades hands for $479 million.
Super Saturday is snowed out in the Northeast, but the season looks relatively solid overall.
Acceptable Use Policy blog comments powered by Disqus
