Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Bought at 40.75 and stopped out at 39.75...
Crap...
FAZ...and now over $42! Sheesh!! This one will drive you nuts!!
Stopped out....went the wrong way...lol!
MWN is starting to look tempting...
Thanks...just nibbling small amounts on the way down...
Still on the sidelines....hope it runs for ya!
Grabbed a few SRS at 52.00
No doubt! Should tell us a lot...
They report earnings Friday...should be interesting...
Up with the market... Reits trade stupid!
Yet SPG is up 7% today...go figure...
They sure did take a hit on that sale... One of these days those Reits should get whacked again...
(From THE WALL STREET JOURNAL)
By Maura Webber Sadovi
With the commercial real-estate market at a virtual standstill, there is much
to be learned from the sale of one of the Cincinnati area's largest malls by
retail giant Simon Property Group Inc.
But be warned: It isn't a pretty picture. Not only was the price abysmally
low, but the buyer, North Star Realty of suburban Atlanta, also had to agree to
onerous personal-recourse provisions to obtain financing.
North Star paid about $9.2 million and assumed debt on $18 million in bonds
for Cincinnati Mills, a 1.4 million-square-foot mall whose anchor tenants
include a Kohl's department store and a Bass Pro Shop, according to people
familiar with the matter. That values the property at less than $20 a square
foot. The price is a fraction of the average national rate of $134 a square
foot paid for the few malls that traded hands last year, according to Marcus &
Millichap Real Estate Investment Services.
To be sure, the property is in sad shape. Some 40% of its non-anchor retail
space is empty and it has suffered a bruised image marked by several failed
redevelopment efforts since L.J. Hooker Development Corp. opened it in 1989,
when it was known as the Forest Fair Mall. It now faces headwinds as the
economy sours. The Cincinnati region posted third-quarter estimated retail
vacancies of 20%, the eighth highest of the 54 markets surveyed by Property &
Portfolio Research Inc., a Boston-based real-estate research firm.
From its earliest days, Cincinnati Mills has had difficulty competing with
two other larger malls nearby, says Jeffrey Johnston, senior sales vice
president with commercial real-estate advisory firm Grubb & Ellis/West Shell
Commercial in Cincinnati. It also got off on the wrong foot with an early
failed concept that tried to bring higher-end retailers into a largely
blue-collar area, Mr. Johnston says.
But financing the deal was brutal even for such a challenged property. Tom
Robinson, the 52-year-old principal of North Star Realty, says he financed the
deal by obtaining mostly recourse loans, which require personal guarantees,
from a number of wealthy individuals in Georgia and elsewhere. Mr. Robinson
acknowledges the deal's risks. "It's sort of like walking a tight rope without
a net," Mr. Robinson says.
So-called hard money that includes recourse debt is increasingly behind the
smaller commercial-property sales that are getting done. Indeed, thanks to this
financing, it is often easier to put together smaller deals than larger ones.
The volume of retail-property sales valued at $1 million to $20 million fell
just 53% to $17.4 billion last year nationally from 2007, compared with deals
valued at $40 million or more, which fell 77% over the same period, according
to Marcus & Millichap and CoStar Group Inc.
Mr. Robinson says he doesn't yet have a firm plan for redeveloping the
property. Still, he sees opportunity in the property located in Fairfield and
Forest Park, Ohio, roughly 20 miles north of downtown Cincinnati along
Interstate 275, a major highway. He is planning a name change and would like to
bring in more traditional retailers as well as some non-traditional mall
tenants to fill empty spaces, such as entrepreneurs, as well as doctors that
bring needed foot traffic or dialysis centers. "We have to be very innovative
because we've tackled a big old white elephant and it takes a lot to keep it
going," Mr. Robinson said.
Simon, along with hedge fund Farallon Capital Management LLC, acquired
Cincinnati Mills in 2007 as part of its acquisition of Mills Corp. The mall was
a "failed redevelopment that was never true to the unique, value-orientation of
the Mills format," Simon said in a statement. "Upon our acquisition, it was
always our intention to sell the asset and we are pleased with the result." The
Indianapolis-based company is the country's largest mall owner by number of
properties.
Just five malls valued at $5 million or more sold in the second half of last
year in the U.S., down from 68 in the second half of 2007, according to Real
Capital Analytics, a New York-based real-estate-research firm.
"The market for malls is dead," says Dan Fasulo, RCA's managing director of
research. "These properties are very capital intensive and without the debt
markets it's impossible to make them work."
---
Kris Hudson contributed to this article.
(END) Dow Jones Newswires
01-27-09 1734ET
Copyright (c) 2009 Dow Jones & Company, Inc.
17:34 012709
FAZ around $40 might not be too bad either.
Quite possible today imo...
GL!
You were reading my mine...lol!
$55 area now...would love to get $50 again.
kt
Will be looking to pick up some SRS in the high 40 to low 50 range today...
HYG....doubled my exposure to junk bonds via this etf at 74.04 (along with JNK)....8.5% yield.....http://www.etfconnect.com/select/fundpages/fixed_etf.asp?MFID=176589
ok, Thanks! I will keep my eyes open.
Just saw them talking about opening a new Airline etf this morning on CNBC, didn't pay that close of attention though...
FAA is trading ? I thought maybe there was a bear/ inverse for it? maybe yet to come?
Airline ETF is coming but I don't think any are out yet...
Anyone know if a short airline ETF exists? I know there is a new Bull ETF called FAA what is the inverse?
FAS is still cheap......financials too cheap! GE is weighing on the Dow today though....that is most likely a great buy down here!
covered 44.27; obviously early . Excellent entry,,, not so on the exit,lol . But, a profit is a profit. I'll take that all day long.
More like PUTZZZ !
ss SPG 44.38
took the .09 on PLD tyvm. I like the way this one trades, and it's very liquid.
ss PLD 11.02 da REIT
Big increase in open interest options for Feb $55's on VNO...
Somebody is looking for insurance imo...
you bet, m177 . The REITS that comprise SRS? I find them much more user friendly than SRS. BAsically, short all pops;-0)
SRS gonna have it's day soon, related article:
http://finance.yahoo.com/family-home/article/106466/Where-You-Won%27t-Shop-in-2009
Market wacky today....down...climbing up....down...now trying to move up again..nuts!
im hoping it pairs up well with my jnk
UYM....added 33% at 12.24 (around 30% of position freebees)
I noticed that, normally it has been moving up when the market was heading up, I think that is a good sign for the equity markets to see this turning into a bull...
ETFs; Truth and Transparency
http://finance.yahoo.com/news/ETF-Trading-Truth-and-tm-14118903.html
I've got some $25 calls on WFC, that I bought today...
That one is too unpredictable for me!
I got into FAS today at $8.....glad I did that!
the better stopout was aapl before the bell for 2 point loss
yup, at 65.80 for 2 buck loss
Yikes! 57.50 AH.....hope you got stopped out!
Followers
|
20
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
1988
|
Created
|
11/06/08
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |