Tag Archives: invest

Nordstrom to Invest $3.2 Billion on Technology, Supply Chain Upgrades to Compete With Amazon, Macy'' s.

Nordstrom is purchasing store upgrades and satisfaction centers to compete with Amazon and Macy’s.

Nordstrom Inc. plans to invest $3.2 billion on its supply chain and digital efforts in the next five years as the department store operator remains mindful about opening full-line stores to compete with online retailer Amazon and conventional rival Macy’s Inc.

. Nordstrom stated will invest in store upgrades, innovation and fulfillment centers as the Seattle-based business ramps up operations in Los Angeles and New york city to challenge Amazon along with the largest U.S. outlet store chain, Macy’s. It expects to have three supply chain centers in the Los Angeles location by 2019, which will offer next-day delivery to clients on the West Coast, executives told investors. Los Angeles is currently the business’s leading market, generating more than $1 billion in full-price sales annually.

The method marks the most recent strategies by a standard merchant to counter the obstacle presented by online shopping. The retail market action will affect demand for retail and commercial residential or commercial property throughout the United States in coming years. Nordstrom and its Nordstrom Rack outlets integrated have more than 350 U.S. shop websites that might be impacted by a technique shift, while rival Macy’s accounts for more than 600 websites.

In New York City, Nordstrom opened a males’s shop in Manhattan this previous spring and will open a ladies’s store in the fall of 2019. Ken Worzel, who was worked with as the business’s very first chief digital officer and president of Nordstrom.com in May, called New York a “$700 million opportunity.” New york city is already the business’s top market for online sales.

Nordstrom’s leading 10 markets represent 60 percent of sales, however Co-President Erik Nordstrom stated the business isn’t in a rush to open new, full-line stores. Its full-line shops accounted for $10 billion in sales last .

“It’s not a surprise to any of us here that the UNITED STATE is overstored,” Nordstrom told investors. “We’re in a different position.”

Nordstrom operates 122 full-line shops in the United States, Canada and Puerto Rico and 239 off-price Nordstrom Rack outlets. By comparison, Macy’s has more than 600 full-line outlets, and competing chain Dillard’s Inc. runs 292 stores.

Nordstrom instead is concentrating on its Rack shops as a customer acquisition technique, with 7 brand-new outlets opening by the end of the year, consisting of 3 in Canada, providing the business 6 full-line and six Rack shops there. Worzel stated Canada represents $1 billion in sales potential, and kept in mind that one-third of Rack consumers ultimately end up being consumers of full-line Nordstrom’s stores.

In a move aimed at connecting the physical and digital shopping environments, the company likewise stated today that it will open 2 new merchandise-free “Nordstrom Resident” stores in the Los Angeles location where consumers can purchase merchandise online and select it up at the curb. Those stores are much smaller than either the full-line or Rack outlets.

Oliver Chen, managing director and senior equity research analyst at New York-based Cowen & & Co., stated in a term paper that Nordstrom’s digital sales drive development. Online sales are expected to represent 40 percent of the company’s predicted $18 billion in earnings by 2022, up from 26 percent now.

However, Chen pointed out the poor efficiency of both full-line stores and the Rack the past six quarters as cause for concern. Sales of females’s garments at the Rack dropped 4.9 percent in the first quarter of 2018, though Blake Nordstrom pointed out inventory problems and bad product choices as the reason.

Chen hasn’t yet provided a report based on the financier’s conference where the remarks were made, however in an analysis on July 2 he reduced the company’s stock and hinted that it may have to close some full-line stores.

Medical Properties Trust To Invest $1.4 Billion in 11 Healthcare Facilities

Medical Residence Trust Inc. (NYSE: MPW) consented to obtain the real estate interests of 10 acute care hospitals and one behavioral health facility presently run by IASIS Health care and to be run by Steward Health Care System LLC when the transaction is completed.

Steward and IASIS at the same time revealed a merger deal, completion of which is a condition of MPT’s investment. MPT is also making a $100 million chosen equity financial investment in Steward.

Nine healthcare facilities will be purchased for $700 million and rented back to Steward under a master lease, which has an expiration date of October 2031, and includes three 5-year extension terms.

Birmingham, AL-based MPT will likewise acquire two new mortgage, also aggregating $700 million. The home loans have the same contractual terms as the leases.

With the new financial investment, MPT’s overall investment in Steward property will total $3.3 billion, that includes MPT’s existing investment in healthcare facility real estate leased to IASIS.

MPT anticipates to fund the acquisitions with profits from a mix of a completely devoted $1 billion term loan with a term up to two years, its revolving credit center with present accessibility of roughly $1 billion and the possible issuance of long-lasting unsecured notes.

The deal will increase MPT’s overall assets by around 20% to nearly $9 billion. Even more, it includes 11 hospitals and over 2,400 beds to MPT’s portfolio, increasing the total number to 269 and 31,266, respectively.

Its percentage of intense care hospitals increases to 72.5% of MPT’s total portfolio and 84% of the U.S. portfolio, a boost from 66.9% and 79.9%, respectively.

” We are extremely delighted about this opportunity to grow with among the leading health center operators in the nation,” said Edward K. Aldag, Jr., MPT’s chairman, president and CEO.

The merger of Steward and IASIS will create the largest private for-profit healthcare facility operator in the United States with projected earnings of almost $8 billion in 2018, the very first complete year of combined operations.

The property investments to be made consist of the following.Hospital, Area, Form of Financial investment, Accredited Beds

Davis Medical facility and Medical Center, Layton, UT, Home mortgage, 220
Jordan Valley Medical Center, West Jordan, UT, Mortgage, 171
Odessa Regional Medical Center, Odessa, TX, Lease, 225
Salt Lake Regional Medical Center, Salt Lake City, UT, Lease, 158
St. Luke’s Medical Center, Phoenix, AZ, Lease, 219
St. Luke’s Behavioral University hospital, Phoenix, AZ, Lease, 124
Southwest General Health center, San Antonio, TX, Lease, 327
Wadley Regional Medical Center at Hope, Hope, AR, Lease, 79
Tempe St. Luke’s Health center, Tempe, AZ, Lease, 87
St. Joseph Medical Center, Houston, TX, Lease, 790
Mountain Point Medical Center, Lehi, UT, Lease, 40

The deal is anticipated to nearby Sept. 30, 2017, based on customary approvals and authorizations.

With New REIT, You Don'' t Need a Rich Uncle to Invest in Industrial Property

Wirta, Hofer Introducing Latest REIT with a Goal of Shearing Financial investment Charges for Little Financiers

Previous CB Richard Ellis CEO and vice chairman Ray Wirta, and real estate market veteran Harold Hofer, who have a long history of championing small-dollar-investor access to big-dollar commercial property, are seeking to provide shares in their most current REIT, Rich Uncles REIT Inc., with the goal of raising as much as $1 billion for the non-exchange noted public REIT.

Wirta and Hofer are highlighting the small-investor element of Rich Uncles REIT in hopes of making more of the financial investment by mom-and-pop financiers go in the direction of realty and less to financial intermediaries.

They’ve set up Rich Uncles as an alternate, internet-based distribution channel to offer shares that omits payment of commissions and expense compensations to advisory intermediaries.

Normally, the sponsor of a non-exchange listed public REIT, such as Rich Uncles, employs the sales proficiency of an in-house dealer-manager responsible for marketing shares in a REIT. In payment, the broker-dealer or monetary intermediary typically receives approximately 10 % of investments made in the REIT as commissions or cost compensations.

In fashioning an alternative financing plan, Rich Uncles thinks its real estate investment car delivers roughly 10 % more of the financial investment total up to acquire the actual property, rather than through commissions and reimbursements.

The REIT expects to utilize a considerable quantity of the net earnings from the upcoming public providing to invest in single-tenant income-producing business buildings.

Hofer and Wirta have a history of attempting to open CRE deals to smaller sized financiers. The pair formerly sponsored 2 REITs: Nexregen Firewheel Realty Financial investment Trust in 2007, a single-asset REIT that provided to buy a restricted partnership that possessed a shopping mall in Garland, TX.

More recently, the pair arranged Rich Uncles Real Estate Investment Trust I in 2012 to invest in single-tenant homes in California.

Both offerings used Wirta’s and Hofer’s proprietary web-based system that swimming pools small-dollar interests made by individual financiers to purchase industrial homes.