MGM National Harbor Leads Among Maryland Casinos

MGM National Harbor, which opened just outside of Washington DC last December, topped $50 million in monthly revenue for three of the past four months, according to CalvinAyre.com. The $1.4 billion property generated about $51.2 million in March, $50.5 million in May and $50.1 million in June. Overall, Maryland casinos brought in $130.4 million in revenue during June, a 39.8 percent increase year-over-year, according to The Baltimore Sun. Not including MGM, casino revenue in the state fell by $13 million (13.9 percent) YOY.

MGM National Harbor – Photo: Ramin Seddiq

Denver Retail Sector Update

High in-migration and lower unemployment rates have created positive conditions for the Denver retail sector. During Q-1 2017, Denver saw lower vacancy rates than during any quarter of 2016, according to Colliers International. Net absorption during this quarter was positive at 96,054sf with Mercedes-Benz leasing 70,000sf for a new dealership. Average rental rates for retail space increased by $1.06/sf, year-over-year to $16.36/sf with vacancy at 4.9 percent.

Close to 1.2 million square feet of retail space is under construction and another 313,000/sf has already delivered to market as of Q2-2017. This is a nine percent increase compared with the same period in 2016, according to The Denver Post (citing CBRE data).

Denver – Photo: Ramin Seddiq

Rite Aid – Walgreens Merger Shelved

Having failed to secure Federal Trade Commission (FTC) approval, Rite Aid and Walgreens Boots Alliance have scuttled plans to merge. Instead, Walgreens will acquire 2,186 Rite Aid stores and three distribution centers for $5.175 billion in cash. Under this deal, Walgreens will pay a break-up fee of $325 million and allow Rite Aid to buy generic medication sourced by Walgreens for a 10-year period, according to InvestorPlace. Rite Aid’s U.S. prescription revenue market share is 4.8 percent, compared to 14.8 percent for CVS and 13.8 percent for Walgreen’s, according to The Motley Fool (citing data from Drug Channels). As of Friday, Rite Aid stock was trading at $2.37/share.

Apple’s Plans for Store at Carnegie Library Moving Forward

DC’s Historic Preservation Review Board (HPRB) recently approved plans for the restoration and retrofitting of the Carnegie Library at Mount Vernon Square, according to The Architect’s Newspaper. Apple intends to share the 63,000sf neoclassical building with Events DC and The Historical Society of Washington. Originally constructed in 1903, the new design by London-based Foster + Partners will include restoration of the original skylight, a grand, rounded staircase on the north elevation and circulation “bridges” connecting the upper floors.

Carnegie Library Restoration – Image: Foster + Partners

Cambodia’s Economy

Cambodia’s economy has been growing at over seven percent per year for the past six years, according to Frontera. Foreign investment in the southeast Asian country of about 16 million people with a nominal GDP of about $20 billion has increased by 800 percent over the past decade. Between 2000 and 2015, foreign direct investment (FDI) in the construction sector totaled $3.5 billion. In the two decades from 1994, real estate made up 15 percent of the total FDI, according to Nikkei Asian Review (citing Knight Frank).

2501 M NW

Built in 1981, the property at 2501 M Street NW is undergoing a conversion from a Class B office (with three floors of condos on top) to a 59-unit multi-family condominium building with retail on the ground level. PRP Real Estate Investment Management purchased the West End property in 2014 for $31.6 million, according to DC records. The condo units are expected to deliver in October. The Japanese restaurant Nobu leased the retail portion and will operate an 11,475sf restaurant which is slated to open in September following a $10 million build-out, according to Washingtonian.

2501 M NW – Image: PRP LLC

Vornado/JBG Among Finalists for New FBI Headquarters Building

New York-based Vornado Realty Trust, in partnership with The JBG Companies, is one of three finalists bidding for an approximately $1.7 billion contract to build a new FBI headquarters building in the suburbs of DC, according to ABC News. In exchange for building the new FBI facility, the government would convey to the developer, ownership of the existing, Brutalist-style headquarters located on Pennsylvania Avenue in a prime downtown DC area. That structure would likely be redeveloped.

Vornado and the Trump Organization are jointly invested in two buildings, one in Manhattan (1290 Avenue of the Americas) and the other in San Francisco (555 California Street). Vornado is also an investor in the Kushner Cos.’ Manhattan property located at 666 Fifth Avenue, which may be redeveloped into a mixed-use tower that includes a hotel and residential units, according to The Real Deal. The General Services Administration is expected to select the winning bid for the FBI contract.

Utah Takes Down “Zion Curtain”

Under a new law, Utah restaurants can remove partitions, known as Zion curtains which hide bartenders preparing alcoholic drinks. These partitions, which are required to be solid, translucent, and permanent are typically made of frosted glass and are intended to shield minors and non-drinkers from alcohol/drinking culture.

According to the CNBC, restaurants may take down the barriers and otherwise prepare alcoholic drinks in view of customers if they either keep those under 21 away from bars altogether or seat them at least 10 feet from a bar. Alternatively, a business can install a half-wall (about 3.5 feet tall) if they keep minors at least five feet from a bar. The law, which also raised the state markup on the case price of alcohol by two percent and allows alcohol to be sold an hour earlier on weekends and holidays, took effect on July 1.

“Zion Curtain” – Photo: Shauna L. Der – theminty.com

Terreno Acquires Newark Industrial Property

San Francisco-based Terreno Realty Corporation has acquired a 10.6-acre complex at 422-470 Frelinghuysen Avenue for $16.3 million, according to Business Wire. The property, which sits adjacent to Newark Liberty International Airport, is vacant with an estimated stabilized cap rate of 5.3 percent. Terreno owns and operates industrial real estate in multiple U.S. markets.

Rule of 70

The rule of 70 is fast method to estimate the amount of time it takes for a certain variable to double, regardless of what the variable represents. To estimate the amount of time it takes for a variable to double, divide the number 70 by the growth rate of the variable.

Rule of 70