Search
 

Will Bailout Help Retail Real Estate?

There's equity out there, but no debt.

By Debra Hazel | Updated on October 08, 2008

The old question, cash or credit, used to apply to gas stations. Today, regarding retail real estate, there’s no question: Cash is king. But just how much of it will be spent, and where, remains murky.

Highly leveraged companies such as Centro Properties and, more recently, General Growth Properties, have been looking at sales to reduce heavy debt. Given the lack of credit in the midst of what Senate Majority Leader Harry Reid dubbed “the greatest financial crisis since the Great Depression,” the prospect of selling major assets is challenging.

“Who knows [who will buy properties]? General Growth and Centro are in a totally different world from someone else,” says Lon Rubackin, managing partner of GFI Retail Services Group, based in New York City. “They need more than surgery; they would need Wall Street to come up with a new vehicle.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.