Alico Inc. CEO explains shift away from citrus industry
Alico Inc., a major citrus producer in Florida, has announced a strategic shift away from citrus farming due to economic challenges. CEO John Kiernan explained that the decision was driven by the impact of Hurricane Irma in 2017 and the persistent citrus greening disease, which have significantly reduced profitability. The company plans to diversify its land usage, with about 75% of its 53,000 acres remaining in agriculture for alternative crops such as sod, sugar cane, vegetables, and cattle farming, while 25% will be considered for commercial or residential development.
This transition will result in the layoff of 172 workers, though Alico plans to provide severance pay and job search assistance to eligible employees. Kiernan emphasized the company’s commitment to responsible land stewardship while balancing the need to generate returns for shareholders. Alico will continue citrus operations on about 3,500 acres of its most productive land for at least one more season, with the possibility of leasing to small-scale farmers in the future. The company is also exploring other revenue streams, including sand mining, as it adapts to changing market conditions and environmental challenges
As wave of commercial loans comes due, concerns rise over tougher payment options
The commercial real estate market is facing a significant wave of loan maturities, with $8.6 billion in commercial mortgage-backed security (CMBS) loans due this month alone. This surge is expected to peak in October 2025, with nearly double the January amount coming due. While lenders have been lenient in granting extensions in recent years, there are growing concerns that loan servicers may adopt a tougher stance, potentially leading to an increase in foreclosures.
The largest chunk of debt coming due is from Blackstone affiliates, totaling over $3 billion. Many borrowers are seeking extensions, but industry professionals anticipate a shift towards other types of debt resolutions. Lower property valuations, particularly in the office sector, are complicating matters, with some appraisals coming in at 40% less than the outstanding loan amounts. This situation is prompting bondholders to consider alternative strategies, such as discounted loan payoffs or loan splitting, to mitigate potential losses.
Federal housing leaders launch new initiative aimed at disaster preparedness after recent hurricanes
The U.S. Department of Housing and Urban Development (HUD) and the Federal Emergency Management Agency (FEMA) have launched the Pre-Disaster Housing Initiative to help states better prepare for housing challenges following natural disasters. This program, prompted by devastating events like Hurricanes Helene and Milton, aims to boost post-disaster housing capabilities and protect people and infrastructure. Initially, the initiative will provide eight months of technical assistance to officials in Kentucky, Michigan, and Missouri. Additionally, HUD extended foreclosure moratoriums for FHA-backed mortgages in disaster-affected areas through April 11.
Ken Griffin and the Big Miami Real-Estate Mystery
Ken Griffin, CEO of Citadel, owns a 4.2-acre site in Miami’s Brickell neighborhood where he plans to build Citadel’s new headquarters. However, a 22-story condominium building called Solaris at Brickell Bay stands in the middle of this site.
Over the past two years, nearly half of the 141 units in Solaris have been purchased by similarly named Delaware LLCs, sparking speculation that Griffin may be behind these acquisitions. These purchases have been made in all-cash transactions, with recent units selling for around $750,00.
The buyout strategy is significant because if a buyer acquires 80% of the units, they can potentially force the remaining owners to sell, paving the way for redevelopment. This approach is increasingly common in Miami due to the scarcity of available waterfront parcels.
Residents of Solaris have grown suspicious, with one noting that Citadel’s head of real estate viewed their LinkedIn profile[8]. The condo association recently passed a $2 million assessment for repairs, which some residents believe might be a tactic to pressure owners to sell.
Griffin’s spokesman has declined to comment on the matter, leaving the identity of the mystery buyer unconfirmed. If Griffin is indeed behind these purchases, it could allow for further expansion of his planned development, which includes a 54-story tower with offices, a hotel, and restaurants.
Elon Musk-led Department of Government Efficiency pushes return of full workweek for federal workers
Elon Musk, co-leader of the newly formed Department of Government Efficiency, plans to enforce a full five-day workweek for all federal employees as part of efforts to slash government spending and regulations. Musk and fellow Trump administration adviser Vivek Ramaswamy argue that work-from-home policies are an expired “privilege” and that requiring in-office presence could lead to voluntary terminations, potentially reducing the federal bureaucracy by 25%. This initiative aligns with Musk’s commitment to cut at least $2 trillion from the annual U.S. budget and reduce the number of government agencies. However, the proposal faces opposition from government employee unions and may conflict with the federal government’s ongoing efforts to reduce its leased office space, particularly in Washington D.C., where office vacancy rates have reached record highs.