Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz of the day will be.
The Dow Jones industrial average fell 140.53 points, or 0.8%, to 17,898.84. The S&P 500 slipped 14.75 points, or 0.7%, to close at 2,094.11. The NASDAQ composite lost 31.41 points, or 0.6%, to 5,051.10.
U.S. oil dropped 81 cents to $59.96 a barrel. Brent crude, a benchmark for international oil prices, dropped $1.24 to $63.87 a barrel. Wholesale gasoline fell 1.7 cents to $2.121 a gallon. Heating oil declined 3.18 cents to $1.889 a gallon. Natural gas dropped 7.5 cents to $2.75 per 1,000 cubic feet.
Sam Zell to Sell Waldorf Astoria for Record Chicago Price “Veteran Chicago hotelier Laurence Geller has cut a deal with billionaire financier Sam Zell to buy the Waldorf Astoria hotel in the Gold Coast for a record-breaking price. A Geller venture including a Chinese partner has agreed to pay a Zell fund more than $600,000 per room, or $113 million, for the 188-room luxury hotel at 11 E. Walton St., according to people with knowledge of the transaction.” (Crain’s Chicago Business)
Real Estate Stocks May Be a Leading Indicator for Real Estate Prices “I believe it will be important to monitor news stemming from the top real estate stocks on a regular basis, while taking note of their recent weakness, as interest rate risks increased. Those are Toll Brothers, Hovnanian Enterprises and PulteGroup. Quite often we can better identify the direction of real estate in the open market from information disseminated by the public disclosures of these companies.” (MarketWatch)
Bob Evans Jumps After Pursuing Real Estate Plan for Restaurants “Bob Evans Farms Inc. rose the most in five months after pursuing a transaction to squeeze money out of its real estate, a move spurred by activist-investor pressure. The deal, which involves the company’s restaurant properties, may be either a sale-leaseback or a conversion to a tax-free real estate investment trust.” (Bloomberg)
Durst Organization Bids for Marijuana Growing License “In a surprise move, the Durst Organization is partnering with nonprofit trade group the Greater New York Hospital Association in a bid to become one of five licensed medical marijuana growers in New York state. The application process for companies to fill five slots to legally grow and sell marijuana in the state closed last week.” (The Real Deal)
The Average Manhattan Rent Now Tops $4,000 “The vacancy rate is now 1.07%, the lowest it has been in three years, Citi Habitats reports. Last year at this time, Manhattan vacancies were at 1.17%. At the same time, rents are at their highest. Manhattan dwellers pay, on average, $4,081 a month — from Inwood to the Financial District — for the privilege of living in Gotham.” (MarketWatch)
Prime Century City Land is Put Up for Sale “Century City landlord JMB Realty Corp. has dropped plans to develop an office skyscraper on Avenue of the Stars and instead has put the land up for sale. The property is expected to be developed into condominiums instead of offices as investment in high-end Los Angeles County condos escalates.” (Los Angeles Times)
3 Residential REITs to Buy Now “Rising interest rates on the horizon could be bad news for the real estate investment trust, or REIT, industry. But that doesn't mean all REITs are bad investments. There are plenty of commercial real estate REITs as well as retail REITs worthy of investment. Below are three residential REIT investments to consider.” (The Street)
Whole Foods Reveals ‘365’ Small-Store Banner “Whole Foods Market on Thursday revealed a name for its forthcoming small-store concept — 365 by Whole Foods Market — and said the new division would be led by Jeff Turnas, who most recently led the retailer’s stores in the United Kingdom.” (Supermarket News)
Commission OKs Historic Hotel Demolition for Detroit Red Wings Hockey Arena “The Detroit Historic District Commission has approved plans to tear down a vacant historic hotel as part of construction of a new Red Wings hockey arena north of downtown. The commission voted 3-1 Wednesday in favor of razing the Park Avenue Hotel, which was built in the 1920s.” (The Associated Press)
10 Lessons Learned After 10 Years in Austin Real Estate “Last October marked my 10th year as a real estate lawyer in Austin. I have watched the city (quite literally from my office window) and its real estate market change immensely. In that time, I’ve had the chance to work with and learn from numerous clients, colleagues and adversaries, and observe a thing or two along the way about Austin, real estate, lawyering and myself. Some of what I’ve learned, I think, is worth sharing.” (Austin Business Journal)
Greece set to present fresh proposals to break impasse - Greece said Friday it will present its creditors with new proposals over the weekend in an attempt to breathe life into stalled bailout discussions that have stoked fears of the country’s bankruptcy. Confirmation that talks would proceed over the weekend came after European markets had closed. Fears that the two sides were as far apart as ever on such issues as pensions and the budget saw the main stock index in Athens close 5.9% lower and the Stoxx 50 index of leading European shares end down 1%. A Greek government official indicated a deal with creditors may be nearer than thought after Prime Minister Alexis Tsipras had conferred with senior ministers. (Blue Ridge.com)
Worse than it first seemed, hackers linked to China appear to have gained access to the sensitive background information submitted by intelligence and military personnel for security clearances, several U.S. officials said Friday, describing a second cyberbreach of federal records that could dramatically compound the potential damage. The forms authorities believed to have been accessed, known as Standard Form 86, require applicants to fill out deeply personal information about mental illnesses, drug and alcohol use, past arrests and bankruptcies. They also require the listing of contacts and relatives, potentially exposing any foreign relatives of U.S. intelligence employees to coercion. Both the applicant’s Social Security number and that of his or her cohabitant is required. (The Atlantic)
US wholesale prices jump in May, led by eggs, gasoline - Prices at the wholesale level rose at the fastest pace in nearly three years in May, pushed higher by a sharp jump in the cost of gasoline and a record increase in the price eggs related to an outbreak of avian influenza. But outside of increases in volatile food and energy costs, core inflation remained moderate. The producer price index, which measures inflation pressures before they reach consumers, spiked 0.5% in May, the Labor Department reported Friday. It was the biggest one-month increase since September 2012. The increase followed a 0.4% drop in wholesale prices in April. The May increase reflected a 17% rise in gasoline prices, the biggest hike since August 2009, and a record 56.4% surge in egg prices. (NY Times)
Wingstop soars after market debut - Shares of Wingstop Inc. soared Friday after the chicken wings chain said it raised more than $110 million in its initial public offering, the latest debut for a fast casual restaurant. The stock climbed $11.59, or 61%, to close at $30.59 on Friday, far above its IPO price of $19 a share. Chains that call themselves “fast casual” tout a more relaxed atmosphere and fast service than traditional restaurants, while promoting their meals as healthier and fresher than fast food. The style has grown in popularity in recent years, and older fast food chains are trying to refashion themselves to catch the trend. (Post Star)
Obama urges House to pass worker aid, seeks to revive trade - President Barack Obama is calling on lawmakers to pass a worker assistance package whose defeat has placed his trade agenda in deep jeopardy. Obama on Friday issued a statement saying that the measure known as Trade Adjustment Assistance is to expire soon and inaction will hurt workers. Obama says new trade agreements should go hand in hand with support to American workers who’ve been harmed by trade in the past. The House voted against the trade assistance 302-126 on Friday after Democrats who typically support such aid decided it was the best way to undermine Obama’s efforts to gain trade negotiating powers. (AP)
California orders large water cuts for farmers - Drought-stricken California on Friday ordered the largest cuts on record to farmers holding some of the state’s strongest water rights. State water officials told more than a hundred senior rights holders in California’s Sacramento, San Joaquin and delta watersheds to stop pumping from those waterways. The move by the State Water Resources Control Board marked the first time that the state has forced large numbers of holders of senior-water rights to curtail use. Those rights holders include water districts that serve thousands of farmers and others. (The State)
French privacy agency orders Google to remove global links - France’s data privacy agency ordered Google to remove search results worldwide upon request, giving the company two weeks to apply the “right to be forgotten” globally. The order Friday from CNIL comes more than a year after Europe’s highest court ruled that people have the right to control what appears when their name is searched online. So far, Google says it has received more than 268,000 requests to remove URLs after the May 2014 decision. French citizens lead the European Union in requests, with more than 55,000. (AP)