The Wilder Cos. has purchased the 342,600-square-foot Silver Spring Square in Pennsylvania. The center, which was 98% leased at the time of the sale, has a new lease for an Old Navy location.
Retailers such as Rescue Spa, which offers facials and hair and beauty services in a retail setting, are catering to consumer demands for more experiences while they shop. Consumers expect more all-in-one service, as well as enhanced experiences that fit into their daily lives.
Bon-Ton Stores won bankruptcy court approval Wednesday for a sale of its assets to a group consisting of bondholders and liquidators Great American Group and Tiger Capital Group. The buyers will liquidate inventories and shutter all 250 stores in 23 states by Aug. 31, according to court documents.
The US Securities and Exchange Commission hasn't formally updated guidance relating to public non-listed REITs since 1960, although the staff has been releasing informal guidance, says Mike McTiernan, partner at Hogan Lovells. "It's made it easier for them to put out disclosures that are consistent with what staff want," he says.
In phase three of the Financial Accounting Standards Board's project to improve asset acquisitions and business combinations accounting, the standard-setter may decide to require all transaction costs to be expensed, says Ross Prindle, managing director and global head of the real estate advisory group at Duff & Phelps. Currently, REITs can capitalize such expenses if they meet the new definition set by FASB.
REITs have made increasing use of At-the-market (ATM) programs as a source of equity capital, raising a record $7.5 billion in 2017. Nareit economist Calvin Schnure analyzes the development of this market, which is a flexible, low-cost source of funds and was the source of 20 percent of all common equity that REITs raised over the past two years.
Prologis has increased the value of its planned 2018 development starts to between $2.2 billion and $2.5 billion and raised its estimate of projected building and land sales to between $1.4 billion and $1.7 billion for this year, according to its first quarter report. "Market conditions remain extremely healthy and our strategy is set," Prologis Chairman and CEO Hamid Moghadam said.
As of April, more than 90 million square feet of retail space is expected to close this year, putting 2018 on a trajectory to surpass 2017's 105 million square feet of shuttered space, according to CoStar Group. "It wouldn't surprise me to see a few more significant announcements from department stores, and more chains that continue to struggle that are unprofitable," Suzanne Mulvee of CoStar said.
CyrusOne continued to deliver solid numbers for its fourth quarter, according to President and CEO Gary Wojtaszek, who notes that both revenue and EBITDA are up. He also says that the REIT's activities in China are unlikely to be affected by trade tensions with the US, as most of the targeted activity is not data focused.
Ashford Hospitality Prime has closed on its acquisition of the 266-room Ritz-Carlton, Sarasota, in Florida for $171 million. It was one of the priciest hotel transactions in the region.