DAILY READS: Dec. 4, 2019

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Is There a Trust Problem Among ETFs?

“‘If you have a really novel idea, you should have the opportunity to protect that,’ Bond said in an interview. ‘Otherwise, smaller issuers have a good idea, they put it out there and raise some assets, and then it costs the big guys almost nothing to copy their product. They just copy it, drop the fee way down and the smaller guy is out of luck, but it was really their creativity, all of their inventiveness to introduce the product.'”

—MarketWatch

Gwinnett’s Massive Mixed-Use Revel Paused; County Seeks New Development Partner

“The Revel concept had promised a transformative amount of new development for Duluth, effectively a new mini-city along Interstate 85: about 300,000 square feet of retail, restaurants, and entertainment; 650,000 square feet of office space; a 340-key hotel; 900 residences; and some 275,000 square feet of green space.”

—Curbed Atlanta

“Analysts say the trend is fueled by lot owners looking to cash in on a booming real estate market and developers seeking to build on what are often the choicest sites in town.”

—New York Times

In The Retail Shakeout, PropTech Tools Are Unseen Life Preservers

“‘In the U.S. we are over-retailed compared to anywhere else in the first world,’ said Alan McKeon, CEO of location-based data analytics company Alexander Babbage. ‘We have more square footage than anywhere else, so people will talk about a retail shakeout. … I believe that data or tech is the competitive differentiator that allows the winners to stand out from the losers.’”

“The transaction marks the highest sale price achieved for a bulk condo sale in the history of Chicago, according to CBRE, which brokered the deal. New ownership will deconvert the property back to apartments.”
 

—Globe St.

Video: Hong Kong’s Retail Property Market Will take a Huge Hit 

“In addition to dozens of compliance tests about how they allocate and distribute funds, REITs are subject to strictures surrounding what services they can and can’t provide to tenants at their properties. As REIT-owned buildings race to offer the most attractive and innovative amenities, they may need to restructure their operations, or else face the consequences.” 

—Bloomberg

Houston Rents on Track to Heat Up, Says Investment Company

“The Houston metro is on track to add more than 47,000 new households this year — the second highest total in the nation— according to the company’s third quarter report. That’s driving apartment vacancies down to 5.6 percent, 150 basis points lower than the year before, and rents up. Rent growth has risen to 4.1 percent, far outpacing last year’s 2.5 percent growth rate.”
 

—Houston Chronicle

‘Peak’ Private-Equity Fears Are Spreading Across Pension World

“One of the most fertile grounds for funds harvesting returns in a world of negative-yielding bonds and expensive public companies — private equity — is being swamped.”

—National Real Estate Investor

What’s the Deal With Airline Food Warehouses Selling for $38M

“New Pacific Realty Corporation, headquartered in Beverly Hills, bought the 131,000-square-foot warehouse at 200 East Touhy Avenue from Perlmutter Investment Company in October, according to public records.”

—The Real Deal

How Jeff DiModica and Dennis Schuh Keep Starwood Property Trust a Step Ahead

“DiModica’s confidence in the might of Starwood Property Trust’s platform is unwavering. But speaking with Barry Sternlicht, who co-founded the company’s parent, Starwood Capital Group, in 1991, you can’t help but wonder whether the swagger comes all the way from the top.”

—Commercial Observer

The National Public Housing Museum Eyes a 2021 Opening

“The museum will tell the history of American public housing in a remnant of a 1930s public housing complex on Chicago’s Near West Side.”

—CityLab

Developer Breaks Ground On A Neighborhood In Tempe, Arizona, For People—And No Cars

“A San Francisco-based developer aims to create the country’s first car-free community in Tempe, Arizona, from the ground up. Culdesac, which bills itself as the world’s first post-car real estate developer, is building a 1,000-person neighborhood called Culdesac Tempe.”

 —Forbes