Commercial Real Estate Week in Review

Week in Review for February 18 – 24:

- In a bid to curb revenue decline, Sears Holdings (SHLD), operator of Sears and Kmart stores, plans to sell off a number of its locations. This move is expected to generate between $400 and $500 million. General Growth Properties (GGP) has agreed to buy 11 of these stores.

- Fitch raises concerns about overly high CMBS servicer fees for distressed properties.  As 5-year CMBS from 2007 mature this year, Fitch says, a greater need for special servicing will create troubling penalties for bondholders.

- A study of 160 REITs suggests a correlation between a diverse board of directions and successful performance. Reportedly, REITs with female board members enjoyed higher returns than REITs with less gender balance.

- Canadian retail REIT RioCan (REI.UN) expects half of its acquisitions this year to take place in the U.S. It is currently looking at properties in Florida, Texas, and the Northwestern U.S.

- W.P. Carey & Co., LLC (WPC) plans to acquire Corporate Property Associates 15 (CPA: 15) for $2.6 billion and convert to a REIT structure. It will still be traded in the NYSE.

- Having completed $508 million dollars in transactions so far this year, Healthcare REIT (HCN) announces plans to offer 18 million shares.

- Investors are excited about retail CMBS, with special interest in grocery stores such as specialty food store Trader Joe's.

- Battered by difficult conditions since the recession, major U.S. CRE service Grubb & Ellis (GBRE) files for Chapter 11 bankruptcy protection. It plans to sell most of its assets to BGC Partners (BGCP).

- After several years of turbulence, Australian REITs (A-REITs) prove promising for some investors.

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