Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/231459
T H E B O T T O M L I N E The $51 million kiss goodbye New York City–based Landlords SL Green Realty and Wharton Properties will pay Juicy Couture $51 million to vacate its store at 650 Fifth Ave. about seven years before the lease is scheduled to end. The retailer, owned by apparel conglomerate Fifth & Pacific, plans to close the store at the 36-story tower in the first quarter. A judge ruled in September that the government could seize the building from two companies that allegedly did business illegally with Iran. SL Green and Wharton bought the leasehold on the building's ground-level retail space in November and are confident they can re-lease the space at a higher rent. One-year total returns Retail rents, values outpace rival property types 35% Russell 3000 30 Retail REITs 25 Retail properties showed the strongest growth in capital val- All REITs ues and rents of all property types globally in the third 20 quarter of 2013, according to CBRE Group. 15 Returns in commercial real estate have been very strong rela- 10 tive to other major asset classes, attracting institutional 5 capital sources to the sector, says Raymond Torto, global 0 chairman of CBRE Research. The limited number of as–5 Dec '12 Feb '13 Apr '13 Jun '13 Aug '13 Oct '13 Dec '13 SOURCE: SNL FiN aNCia L compared to the previous quarter, and by 8 percent year- All REITs over-year. By comparison, the firm's Global Industrial Retail REITs 4 CBRE's Global Retail Capital Value Index showed the strongest growth among property types, rising 2 percent Same-store NOI 5% sets available for sale also helped boost growth, he added. Capital Value Index rose 1.4 percent compared with the previous quarter and its Global Office Capital Value In- 3 dex rose 1.1 percent relative to the previous quarter. Retail rents outpaced those of other property types as well. 2 CBRE's Global Retail Rent Index jumped 1 percent compared to the prior quarter and 4 percent year-over-year. 1 Meanwhile, office rents were virtually unchanged, and industrial rents improved less than 1 percent compared 0 1Q '11 3Q '11 1Q '11 3Q '12 1Q '13 3Q '13 SOURCE: SN L FiNaNCi aL Deal Barometer W H O I S with the previous quarter. P A Y I N G H O W M U C H F O R W H A T DEAL OF THE MONTH $37 million $37.5 million $61.3 million $133.9 million $500 million $590 million $800 million Cole Real Estate Investments bought the 330,000-squarefoot Peninsula Crossing, in Millsboro, Del., from Millsboro Towne Center LLC. Anchors there are BJ's Wholesale Club and Lowe's Columbia Regency Partners II sold four groceryanchored centers totaling 282,000 square feet in Atlanta; West Palm Beach, Fla. and Myrtle Beach, S.C., to Publix Supermarkets Long Wharf Real Estate Partners sold the 300,000-squarefoot Canyon Crossings, in Riverside, Calif., to Dunhill Partners. Anchors there include Staples and Toys 'R' Us Acadia Realty Trust sold Fordham Place, a 262,000-squarefoot retail-office property across from Fordham University, in New York City, to Retail Properties of America British Columbia Investment Management Corp. bought the 440,000-squarefoot Bayview Village, in Toronto, from Orlando Corp. Starwood Capital Group bought seven Swedish properties totaling 2.2 million square feet from Kooperativa Förbundet. Coop supermarket anchors all the centers Westfield bought the remaining 50 percent stake in the 365,000 square feet of retail space at the World Trade Center transportation hub in New York City, from The Port Authority of New York and New Jersey 58 SCT / J a n u a r y 2 0 1 4