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Monthly Archives: March 2015

Strong Dollar Aids Americans in European Property Purchases

US cross-border capital to Europe last year fell just short of the 2007 peak, according to global commercial real estate data and analytics firm Real Capital Analytics (RCA). Simon Mallinson, RCA’s Executive Managing Director for EMEA & APAC, stated that this strong first quarter may indicate the record may be broken this year. The rumored Federal Reserve interest rate hike and the current swell of the US economy has caused the dollar to strengthen, gaining 26 percent against the Euro year-over-year.

2014 US cross-border capital to Europe climbed 90 percent last year to 41.2 billion euros ($45.3 billion), just shy of the 2007 peak of 41.5 billion euros. Another 8.9 billion euros has been spent this year through March 25, with a further 3.3 billion under contract, added RCA.

“The U.S. Dollar-Euro exchange rate movements make unhedged European real estate look increasingly cheap and U.S. investors remain convinced that mispricing opportunities exist across the continent — Americans will likely outpace their previous peak,” concluded Mallinson.

Peak Performance: Brookfield Looks To ‘Harvest Capital’ by Selling Up To $2 Billion in Properties

Sensing a bottom in some core U.S. office property cap rates, Brookfield Asset Management Inc. and its affiliate Brookfield Property Partners LP, are in the late stages of selling nearly $2 billion in office assets, including controlling interest in seven office buildings in the Washington, DC, market; and one in Boston and potentially some in New York. These deals follow last month’s sale of two office properties in Seattle.

On the last day of…

Peak Performance: Brookfield Looks To Jettison Up To $2 Billion in Properties

Sensing a bottom in some core U.S. office property cap rates, Brookfield Asset Management Inc. and its affiliate Brookfield Property Partners LP, are in the late stages of selling nearly $2 billion in office assets, including controlling interest in seven office buildings in the Washington, DC, market; and one in Boston and potentially some in New York. These deals follow last month’s sale of two office properties in Seattle.

On the last day of…

CoStar’s People of Note (Mar. 22 – 28)

It’s time to update those contact managers with CoStar’s People of Note, reporting news on significant new CRE hires and promotions. This week’s issue includes the following markets: Washington DC, Dallas / Fort Worth, St. Louis, New York City, South …

Fresh & Easy Closing 50 Stores In 3 Western States

The Fresh & Easy grocery chain, after struggling through bankruptcy and emerging under new ownership in 2013, has announced plans to close about 50 stores in California, Arizona and Nevada by April 3.

The company will try to sell the stores and use the proceeds to develop new concepts, including 3,000 to 5,000-square-foot “fresh-food convenience stores” under a project with Apple store designer ADMI, according to CEO Jim Keys and company spokesman…

Too Much? Too Fast? Investment Markets Eyeing Free-Flowing Capital With Some Concern

As the San Diego City Employees’ Retirement System’s (SDCERS) board this past month debated putting an additional $30 million into JP Morgan’s Strategic Property Fund, a 100% core fund in which it already had invested $60 million, it had a major concern.

JP Morgan’s Strategic Property Fund bought $3.45 billion in core properties last year and has a queue of investors lined up to pump in another $1.7 billion. Compared with its peers, the JPMorgan…

TOO MUCH, TOO FAST? Investment Markets Eyeing Free-Flowing Capital With Some Concern

As the San Diego City Employees’ Retirement System’s (SDCERS) board this past month debated putting an additional $30 million into JP Morgan’s Strategic Property Fund, a 100% core fund in which it already had invested $60 million, it had a major concern.

JP Morgan’s Strategic Property Fund bought $3.45 billion in core properties last year and has a queue of investors lined up to pump in another $1.7 billion. Compared with its peers, the JPMorgan…

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