In this economy there is no retailer that has proven to be immune to the recession, but there are some doing better than others.  Being a lover of fashion – I couldn't help but wonder how these high end retailers were making their $1,200/SFPY rent?  As it turns out – they aren't!  Most of these companies are failing and fast BUT what was interesting is that among the mess, the mid range level designers are excelling!

It was reported in the International Herald Tribune that;  The Hilfiger line, like many midrange designer brands, is growing, while other labels, notably at the high end, are struggling to hang on to market share.

Tommy Hilfiger just openned a 22,000 SF store on 5th Avenue in Manhattan!  (that is the $1,200/ SF rent!) Some might call that insane – I say it is interesting.  I would bet that any 5th Avenue landlord would give their right arm for a tenant like Apax Partners.  The group has a proven track record of success as a lessee.

(Sales of the Tommy Hilfiger Group, a unit of Apax Partners, a private equity investment group, rose 21 percent, to $1.6 billion, for the financial year that ended March 31, according to Fred Ghering, Hilfiger’s chief executive officer. Hilfiger sales for this financial year are expected to rise in the single digits, much less than in previous years, but they will still grow in a stagnant market. For the record, a Hilfiger cocktail dress sells for $450 and a camel hair coat goes for about $750.)

Tommy Hilfiger is just example of this growing mid-range group. Brands like Tommy Hilfiger, D&G from Dolce & Gabbana, or Tory Burch, all selling below the luxury designer category, are growing now because they expanded or reorganized, repositioned collections or introduced new lucrative lines before the first signs of the recession.

I pays to know your economy and the consumer!  For the full article click here!

Nicholas Cage sold his house!!!  WOO HOO 

Perez Hilton Reports:

It's finally off his hands!

After a number of months on the market, Nicolas Cage has managed to unload his Bel Air mansion for an amount some believe to be between $9.5 and $15 million!

Cage was originally asking $35 mil for the property, but quickly dropped the asking price to $17.5 million – even though Nic only paid $6.469 million for the mansion back in 1998!

Will the sale finally clear Cage of his $6 million debt to the IRS????

Or does the actor have even more bills looming over his head??

Good luck with that, bb!

Nicholas Cage has sold a number of his properties this year – hopefully he has something left to live in!!!!

I can't imagine slashing the price of my house by $15 Million!  That is what Eddie Murphy has done in an attempt to sell his home.  It has been on the market for over 5 years now!  (I hope we never get there!)

Here is the full story:  EDDIE MURPHY is suffering in the global economic downturn – he's been forced to slash the asking price for his home by $15 million (£10 million).
The Shrek star put his New Jersey estate on the market almost five years ago, with a price tag of $30 million (£20 million).
The property, which boasts a bowling alley, theatre and recording studio, failed to sell – and the price has now been cut by half, according to the New York Daily News.
Real estate broker Dennis MCCormack says, "It's a beautiful house and 10 minutes from Manhattan. The home was recently renovated and I listed it three weeks ago."

Karma's a bitch!  Click here for his house listing.

I have been really frustrated lately with the housing market.  Our condo is still for sale (we may have a buyer though – fingers crossed!)  So last month, in a fit of anxiety, I called my husband mid day and told him I just wanted to auction off our condo and be done with the whole thing, I had enough!  

I called our local auctioneer and set up an appointment to meet and discuss our condo as a prospect.  I had all kinds of questions; would we bring in a decent price, how long would it take, etc?!  I had a lot of questions…..

Here is what I found – I thought the auctioneer we talked with was BRUTALLY HONEST and I appreciated it!

1. People come to auctions with a set price in mind – the price is based off of comps and preconceived notions.  If the comps in your market are bad – you are essentially not going to get your price.
2. While the process might be "faster" – The property would have had a buyer that day – provided bidders showed up! 
3. The auction (in our case) would have been an absolute (there is no set reserve price) and we would have only brought in approx 65% of the property's value.     (There are absolute auctions and auctions with reserves)

After meeting at the condo, our auctioneer thought we should just leave it on the market.  He though out condo was really nice and that we were just a victim of a bad market – to continue listing it with our Realtor and something would happen.   This ironically – was comforting. 

Long story – auctions (as I have mentioned before) are great under the right circumstance.   BUT – it really depends and even though our market is tough (I SWEAR) I have seen movement and action picking up out there.  I hope (AND PRAY) that our prospect works out!  Here is a link to our condo – just in case!

Portage Path Condo

I have to say that 17% down is not that bad – especially when similar business are down 25-30%. 

See posted article for the story:

Myers Industries Inc. (NYSE: MYE) has reported a third-quarter loss compared to a year-ago profit as the company saw its sales fall 17%.

The diversified manufacturing and distribution company said its loss in the latest third quarter totaled $5.3 million, or 15 cents a share, which included a loss from discontinued operations of $4.7 million. In the third quarter of 2008, Myers earned $1.3 million, or four cents a share.

Sales at Myers slid to $165.4 million from $199.9 million.

Myers said in a statement that weak end markets “continued to result in sales volume declines across the company's segments.”

“Customers continued to conserve cash and reduce spending, purchasing products on a just-in-time basis,” the company said.

From your fellow Libra!

Stan Bullard (he always gets the scoop!  HA) is reporting that DDR has renewed interest in a joint venture with MDT US LLC joint venture, an affiliate of Macquarie DDR (ASX: MDT) of Australia. 

Developers Diversified Realty Corp. (NYSE: DDR) announced today that it has redeemed its interest in the MDT US LLC joint venture, an affiliate of Macquarie DDR (ASX: MDT) of Australia.
While most people are scared shitless of retail centers right now – DDR is full force ahead.  Some would say genius!  See the full story below:
Beachwood-based Developers Diversified secured full ownership of three U.S. shopping centers with 857,000 square feet of selling space in exchange for its 14.5% stake in the joint venture and a cash payment of $1.6 million to the joint venture's parent, DDR Macquarie Fund.

David Oakes, senior executive vice president of finance and chief investment officer for Developers Diversified, said the redemption provides both parties enhanced flexibility and achieves its goal of simplifying its structure, lowering leverage and eliminating near-term financial maturities. Developers Diversified owns and manages about 670 retail operating and development properties.

Interesting – Very interesting!!! 

If you have not had the pleasure of meeting Charles Ratner - you should!  Mr Ratner is the CEO of Forest City Enterprises in Cleveland, Ohio.   (Forest City is the company that redeveloped Tower City and the Court House in downtown Cleveland but have development all over the country and the world – click here for their website)  I thought this article was interesting and definitely worth sharing:

Cleveland Crains/ Stan Bullard reports:

Despite downbeat times for real estate ownership and development, Forest City Enterprises Inc. (NYSE: FCE) president and CEO Charles Ratner took the long-term view to find reasons for optimism this morning when he addressed a “Deal Maker Forum” co-sponsored by Ulmer & Berne LLP and Inside Business magazine.

Two reasons for optimism: the nation's population will continue to grow by about 3 million people annually the next few years if it does not adopt restrictive immigration policies, and aging buildings nationwide will need to be replaced. Both will create opportunities for real estate development, especially in cities, Mr. Ratner said.

Part of the reason he describes himself as an optimist, Mr. Ratner joked, is because Forest City's stock price has rebounded. The stock stood at $12.60 a share at mid-day today, which is up from a 52-week low of $3.26, though it remains below its high of $20.55.

Speaking of the outlook for Forest City's hometown, Mr. Ratner said the recession has produced a rare decline in moves between states by individuals that provides an opportunity for Northeast Ohio. If the region can retain young people with attractive environments, jobs and start-up companies, he said, it might be able to retain more talent than in healthier economic times.

As Mr. Ratner recounted some of Forest City's developments that have taken years to come to fruition — from Metro Tech Center in Brooklyn, N.Y., to University Park at MIT in Boston — he observed that he hopes several Cleveland initiatives succeed, from the proposed medical merchandise mart and convention center to redevelopment of the lakefront.

“I'm upset we didn't get” the medical mart at Forest City's Tower City Center, Mr. Ratner said in reference to Cuyahoga County's decision to put the big project at the existing convention center site in downtown Cleveland. “We deserved it. That is history.” Still, he added, “If Cleveland succeeds with the convention center and casinos, I'll be really happy it went elsewhere. Tower City Center will be more valuable.”

He said Forest City is urging its employees to support state Issue 3, the casino gambling initiative on the November ballot, and Issue 6 in Cuyahoga County, which would reorganize county government. Cleveland Cavaliers owner Dan Gilbert proposes putting a Cleveland casino on land owned by Forest City if Issue 3 passes. As Mr. Ratner recounted some of Forest City's developments that have taken years to come to fruition — from Metro Tech Center in Brooklyn, N.Y., to University Park at MIT in Boston — he observed that he hopes several Cleveland initiatives succeed, from the proposed medical merchandise mart and convention center to redevelopment of the lakefront.

“I'm upset we didn't get” the medical mart at Forest City's Tower City Center, Mr. Ratner said in reference to Cuyahoga County's decision to put the big project at the existing convention center site in downtown Cleveland. “We deserved it. That is history.” Still, he added, “If Cleveland succeeds with the convention center and casinos, I'll be really happy it went elsewhere. Tower City Center will be more valuable.”

He said Forest City is urging its employees to support state Issue 3, the casino gambling initiative on the November ballot, and Issue 6 in Cuyahoga County, which would reorganize county government. Cleveland Cavaliers owner Dan Gilbert proposes putting a Cleveland casino on land owned by Forest City if Issue 3 passes.

Fabulous!

I was very annoyed this morning when I read the article in The Plain Dealer about Just Born Inc., the Peeps People, suing Recycled Paper Greetings Inc. for using the word "Peep" in its greeting cards.  Just Born Inc is upset (and rightfully so) because the word "Peep" is a registered trademark. 

Before we move on, I have to admit , I bought one of the cards.  They were actually funny and it is hard to find a card that is actually funny.  Most (I think) are crass and lame.  If  my stone heart felt joy from seeing the "Peep" card, who wouldn’t!?.  

Ok – this is where I disagree with the JBI People…..

The Plain Dealer Reports, "The 11-page complaint, filed in U.S. District Court in Indianapolis, accuses Recycled Paper Greetings of trademark infringement, false advertising, counterfeiting and deception for using Just Born's "distinctive and famous" chicks and bunnies or "confusingly similar variations" in its greeting cards.  (I can see it BUT keep reading – a description of the cards are below and the part I disagree with is coming- I promise!)

One card depicts two live chicks staring at what looks to be a Peep chick. One says: "She's had waaay too much Botox." Another card in the lawsuit says: "Happy Easter! From me and my peeps!"  And a third shows a candy chick sitting next to a s'more screaming "Marsha!!! What Happened?!?"

American Greetings Corp. of Brooklyn, which acquired the irreverent and edgy Recycled Paper Greetings brand for $151.1 million on Feb. 24, declined to comment on pending litigation.

Just Born, based in Bethlehem, Pa., says it has suffered "irreparable harm to valuable Peeps trademarks" and is seeking a permanent injunction to prevent RPG from using Peeps, as well as damages, attorney's fees, and court costs. (RIDIC!!!!!  HARM!!!  This was the best thing that could have happened to JBI – they should just be mad they didn’t get a cut of the profits)

Plain Dealer News Researcher Jo Ellen Corrigan contributed to this story.

The cards were funny and while it was wrong of Recycled Paper Greeting to sell the card without permission from Just Born Inc and to use their images and the "peep" name, I can't help but feel in this day and age, free advertising is never bad thing……

Who doesn't know and love the Howard Johnson chain of hotels, more teasingly known as the HoJo!  WOO HOO   Well, as it turns out, not everyone….

Howard Johnson Hotels have been kind of a mixed story.  There are a number of these hotels still in business.  BUT – most are not!  Most look like hell and are in terrible areas.  (This is a personal opinion – not fact)  It is no surprise that there is a decrepit one along the Cleveland shoreline and that it is being torn down.  What is surprising is that someone tried to stop the demolition!    Well – demo is back on AND GOOD RIDENS!  Sell below for the full story from Crains!

Construction crews will be able to resume demolishing the long-vacant Howard Johnson Building on East 55th Street after Cuyahoga County Common Pleas Court Judge Richard McMonagle dissolved a restraining order that stopped the demolition of the long-empty property under a city of Cleveland order.

The judge halted demolition of the property last May after property owner Lakeview 2006 LLC sued the city over the demolition of the property. Crews removed the top southern corner of the building and most of its windows before the court order stopped them last spring.

Lakeview 2006 LLC had sought to convert the tall, long-empty building to condominiums, but the project had not proceeded before the city began razing the building.

 HOJO  HOJO  HOJO!!!!