CoStar Insights

Top News: Sears Discloses it May Not Survive in Latest Blow to Dept. Store/Mall Sector

by CoStar News | Mar 28, 2017

In case you missed it, here's our latest weekly roundup of top national commercial real estate stories, as reported by our well-connected CoStar News team.

Sears Discloses for First Time it May Not Survive, Marks Latest Blow to Dept. Store/Mall Sector

Sears Holdings Corp. saw its share price plunge this week after disclosing there was "substantial doubt” about its ability to remain in business. Though the 131-year-old department-store chain said it has enough cash to carry it through 2017, the disclosure may mean that the company harbors doubts about whether it will be a going concern within one year.

Blackstone REIT's Recent Buys Involve Blackstone Affiliates

Blackstone Real Estate Income Trust, the new non-traded REIT launched by the investment firm, is taking advantage of its access to the private equity giant's institutional real estate investment platform. The REIT’s three latest acquisition involve other Blackstone affiliates, including acquisition of a $116 million interest in bonds secured by a mortgage loan on Blackstone's 3.83 million-square-foot Willis Tower in Chicago.

Starwood Ups Initial Bid for Milestone Apartments REIT Buyout

An affiliate of Starwood Capital Group agreed to sweeten its offer to take Milestone Apartments Real Estate Investment Trust private through a cash-for-stock transaction. Under the revised bid, Milestone Apartments REIT unitholders will receive 10 cents more per trust unit than Starwood's original cash-for-stock offer, which valued Milestone at $2.85 billion.

SoftBank Reported to Invest $300M in WeWork

Japanese telecom and communication giant SoftBank Group Corp. has reportedly invested $300 million in New York City based WeWork Cos., in a possible prelude to a much larger funding round expected to total about $3 billion. During 2016, WeWork expanded to over 110 locations around the world, doubling its global presence with the addition of 18 new cities and 58 new office locations across six continents.

Report: $435 Billion of New Global Capital Targeting CRE

The amount of new capital available for global real estate investment in 2017 stands at $435 billion, lower than last year’s peak but the second-highest figure recorded since 2009, according to new research from Cushman & Wakefield China in Hong Kong. The total amount of funds raised for investing in real estate has fallen by 2% compared with 2016 - the first drop since 2011.


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