Real Estate Roundup:
- The U.S. hotel industry asked the Trump administration for a $150 billion bailout. In a White House meeting with President Trump and Vice President Mike Pence, hotel industry groups requested a massive cash infusion – $100 billion to retain workers and $50 billion to service debt – as they warned that half the hotels in the country could close this year. (WSJ)
- The coronavirus has been sending shares of elder-care facilities into a tailspin over concern that any additional contagion in senior-care buildings could hurt operations and lead to occupancy declines. Shares of health-care real estate investment trusts have fallen 50% since Feb. 24. This performance makes health-care REITs the third-worst-performing real-estate sector after hotel and mall REITs. These companies include holdings of medical-office buildings, nursing facilities and senior-housing buildings, and those that focus on elder-care have experienced sharper falls. (WSJ)
- As New York City faces an exponential rise in coronavirus cases that threatens to overwhelm its hospital capacity, City Hall has asked New York state for permission to use its sprawling Javits Convention Center on Manhattan’s far West Side as a “potential medical surge facility.” (Politico)
- New York Gov. Andrew Cuomo’s order that gyms close until further notice also applies to those inside residential buildings. (TRD)
- Fed Action Aims to Boost Market Confidence as CRE Financiers Adjust to New Normal… The cost of funds to banks may now be lower, but because of the increased risk to lenders, a decent chunk of that saving in the Fed drop will be eaten up in the spread. (CO)
Urban malls have been more profitable than those in sparsely-populated areas in recent years. But with the coronavirus spreading at a faster rate in metropolitan areas, many of these malls are poised to take a big hit. So-called B and C-malls that have lost one or more anchor department stores and where the space has remained vacant, are especially vulnerable. This is the type of crisis that could push them over the edge.
- Be Smart: These bigger retailers are likely to survive even if stores remain closed for a few months, but smaller enterprises and food operators might not have the same credit facilities and would need relief from their lenders and landlords. (WSJ)
Retail closures continue: National retailers such as Apple and Nike who are big drivers of foot traffic, already had announced temporary store closures for at least two weeks. Other national retailers such as Nordstrom, Foot Locker, Williams Sonoma, and J.Crew on Tuesday also announced store closures. (WSJ)
- Related and Oxford Properties temporarily close the retail portion of Hudson Yards. (TRD)
- New Chelsea Piers field house, fitness club coming to Pacific Park… The Piers signed a lease this week for a combined 103,000-square-foot fitness and health club at the base of the new residential tower at TF Cornerstone’s 595 Dean Street. (NYPost).
- Georgetown Company is planning to build a 1.1-million-square-foot office building in the Hudson Yards neighborhood on a waterfront site that the company has owned for over 50 years. The company plans to break ground on the building next year and deliver space to tenants in 2024. Worth noting that financing for the project, which will cost over $1 billion, has yet to be determined. (CO)