Go on, book that Vegas trip
Posted on November 4, 2009 at 8:12 am
That’s almost what the investment community is saying to Gaylord Entertainment CEO Colin Reed, who on Tuesday put Sin City on a short list of cities his company may buy its way into.
A good chunk of the hotel/resort operator’s third-quarter earnings call Tuesday focused on Las Vegas, where a bunch of glitzy properties are struggling — or as Reed put it, “operating way below their pro formas” of six or seven years ago. Several analysts pushed Reed to clarify his recently floated strategic option of buying such a troubled property to add to his portfolio.
Generating an appropriate return is priority No. 1, Reed said, and such a return will have to come primarily from serving one of the company’s core customer groups — associations that rotate their meetings around the country each year. Half of those groups, Reed added, will never go to Vegas. The other half wants to be there regularly — and they could be enough to tip Gaylord’s M&A scales in the coming year or so, when Reed thinks the market will really hit bottom.
“I don’t think we should get into too much detail, but we’ve been consistent in telling people over the years that people rotate out of our system to go to Vegas,” Reed said. “Is it a market that interests us? It is. There are probably as well five, six, seven other markets in the United States that interest us as well.”
Investors seem plenty interested, too. Gaylord shares (Ticker: GET) jumped almost 8 percent Tuesday. Put a good chunk of that down to the company’s solid cost controls and the improving performance of its D.C.-area property, but also consider it a sign that the market is confident Reed and his team will soon find something to their liking in the Nevada desert.
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A glimmer of CRE hope
Posted on November 3, 2009 at 9:46 amPrices for commercial property rose more than 4 percent last quarter, meaning the cratering of the market some are fearing may not materialize.
The TBI tracks the prices that institutional investors, such as pension funds pay or receive when buying or selling commercial properties such as shopping centers, apartment complexes and office towers.
The price index at the third quarter stood at 36.5 percent below its 2007 peak, up from its 39 percent deficit seen last quarter, which now could be the trough and suggests the U.S. commercial property market may have finally found a price bottom.
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Think Halloween is scary? Try getting a bunch of lawyers to move by December 15
Posted on October 30, 2009 at 2:08 pm
That’s what the Bass Berry team needs to do.
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No green shoots for developers
Posted on at 12:12 pmMarty Heflin of M2H Group says the mood is just plain sour.
“Heaven in 2011?” I am not so sure. In conversations with fellow developers, lenders and investors primarily in the Southeast region, I am not hearing a lot of talk about “green shoots.” I am seeing a lot of downcast faces and concern. The central problem continues to be two-fold: a) the land sellers and asset holders that are distressed haven’t gotten the memo yet and b) the credit markets remain shut tighter than the back of a Swiss watch.
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Gun maker takes aim at TDOT
Posted on at 10:39 am
Ronnie Barrett says state officials told him they were on board with his plans to expand and add 300 jobs just off I-24 in Rutherford County — until they weren’t and left him with a building he can’t get to.
“TDOT was very in favor of it. They said, ‘Yes, we like it. It’s an old farm fence out there. I think it’s going to be easy just to move the fence,’” said Barrett. “Now we have the inability to be able to win certain government contracts because our building’s not big enough.”
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Local industrial property market ahead of nation’s
Posted on at 9:44 am
Data compiled by Colliers shows Nashville – along with regional competitors Louisville and Indianapolis – with an industrial real estate vacancy rate that is well below the national average. Memphis, Atlanta and Cincinnati, on the other hand, are struggling with double-digit numbers.
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Nashville on shopping list of new industrial property firm
Posted on October 29, 2009 at 9:58 amA group of veteran industrial real estate pros have formed Brennan Investment Group and intends to snap up properties around the country. Nashville is one of a handful of the firm’s secondary target markets, with an alum of First Highland Management and Development leading the way here.
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Downtown biz groups endorse Music City Center
Posted on October 22, 2009 at 3:40 pmThe backers of the proposed $635 million Music City Center have received the not-terribly-surprising support of three downtown-related hospitality and tourism groups.
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Deutsche unit picks Crosland for local management contract
Posted on at 3:12 pmRREEF, a real estate investment subsidiary of Deutsche Bank, has offloaded the management of more than 11 million square feet of property from New England to Texas to five firms, one of which is Crosland. A spokeswoman says the firm will take over the day-to-day running of Providence Marketplace, the $75 million shopping center it developed with Carolina Holdings before selling a majority stake to RREEF in 2007. Crosland, which also built the Terrazzo tower in The Gulch, will manage three sites in the Carolinas as well.
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Locals form relo advisory group
Posted on at 11:06 am
A number of local companies have banded together to form Smart Moves, a coalition that will aim to help businesses relocating to Nashville find their feet here. Among the group’s members are R.J. Young, Lee Co. and Facility Planners.
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State’s construction job losses among worst in country
Posted on at 10:08 am
Tennessee is 48th on an Associated General Contractors list that tallies the number of construction jobs lost in the 12 months to September. Only the hard hat job markets in Michigan, Arizona and Nevada fared worse.
“These figures should serve as a sobering reminder that public investments alone are not going to turn around a trillion dollar construction industry,” said Stephen E. Sandherr, the association’s chief executive officer. “The three most important issues in Washington ought to be jobs, jobs and jobs, which is why we need pro-growth measures like those we outlined in our blueprint for recovery.”
SEE ALSO: Our recent print story on the possibility of a construction labor shortage
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Permobil’s big move
Posted on October 21, 2009 at 7:39 am
Wheelchair maker Permobil is building a $12M operations center on 17 acres in Park 840 in Lebanon. At 120,000 square feet, it’s double the company’s footprint at the Eastgate Business Park. The company plans to double its 85-person local workforce, too.
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Regions to trim branch network
Posted on at 7:08 amMiddle Tennessee’s largest bank will close 121 of its 1,900 offices across the Southeast to cut costs after it announced a larger-than-expected loss third-quarter loss Tuesday. Jim Schmitz, the bank’s local leader, tells Naomi Snyder Nashville will account for six of those closings.
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Postal processing center may move here from Ky.
Posted on October 20, 2009 at 7:24 am
Bowling Green officials are planning to pass a resolution tonight calling on the U.S. Postal Service to keep a mail processing center in the city. The facility may move to Nashville.
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MDHA sues to start convention center land buys
Posted on October 19, 2009 at 3:23 pm
The MDHA has deposited more than $31 million with Circuit Court officials, money it intends to pay a group of downtown landowners whose properties sit in the footprint of the planned Music City Center.
The amounts offered add up to almost $6.9 million more than the cumulative value of the properties as appraised for property taxes at the beginning of 2009. On average, the city is offering a 26 percent premium over tax-appraisal value.
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