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.
Thursday, the Dow Jones industrial average climbed 320.55 points, or 1.9%, to 17,489.16. The S&P 500 index rose 33.57 points, or 1.7%, to 2,052.51. The NASDAQ added 79.93 points, or 1.7%, to 4,920.05.
Benchmark U.S. crude rose 18 cents to close at $45.38 a barrel in New York Thursday. Brent crude, used to price international oils, rose 23 cents to $48.08 a barrel in London. Wholesale gasoline rose 2.6 cents to close at $1.307 a gallon on the New York Mercantile Exchange. Heating oil rose 1.5 cent to $1.465 a gallon. Natural gas fell 1.8 cents to close at $2.386 per 1,000 cubic feet.
Associated Press Lauds Revitalized Downtown Tucson - In an article distributed worldwide, The Associated Press (AP) mentions fun things to do and exciting places to visit in Downtown Tucson and along Fourth Avenue via the Sun Link streetcar. The article references Old Town Artisans in the El Presidio Historic District, Barrio Viejo, Tucson Museum of Art, El Charro Cafe, Cafe Poca Cosa, Hotel Congress, and more. "Tucson is known for its Day of the Dead celebration (and) the All Souls Procession, scheduled for Nov. 8, which typically attracts 100,000 people," the article said.
Existing U.S. Home Sales Rise to Second-Highest Level Since 2007 “Sales of previously owned U.S. homes rebounded in September to the second-highest level since February 2007, the latest sign that the recovery in residential real estate will support growth in the world’s largest economy. Closings on existing homes, which usually occur a month or two after a contract is signed, climbed 4.7 percent to a 5.55 million annualized rate, the National Association of Realtors said Thursday.” (Bloomberg)
SEC, Darden Board Approve Real Estate Spin-Off “Federal regulators and Darden Restaurants Inc.’s board of directors have each approved the casual-dining operator's real estate spin-off, paving the way for the separation to take place next month. Darden shareholders will receive shares in the real estate investment trust, Four Corners Property Trust Inc., which will become a publicly traded real estate investment trust, or REIT.” (Nation’s Restaurant News)
For Ivanhoe, Stuy Town Deal Was Years in the Making “On Tuesday morning, more than a dozen politicians came together with representatives of the Blackstone Group to formally announce the $5.3 billion deal for Stuyvesant Town-Peter Cooper Village. Speeches were made, backs were patted, and Blackstone was celebrated as a savior of the complex’ affordable units. Conspicuously absent were representatives from Ivanhoe Cambridge, the Canadian investment giant that is equal partners with Blackstone on the deal.” (The Real Deal)
A Lot of Cheap Housing is About to Get Very Expensive “There are currently about 1.34 million units of affordable housing created by a HUD program known as Section 8 project-based rental assistance, according to a blog post published on Wednesday by Poethig and her Urban Institute colleague Reed Jordan. More than 30 percent of those units are kept affordable by contracts that are set to expire by the end of 2017. That raises the possibility that property owners, especially in gentrifying neighborhoods, will seek to cash out, wiping affordable units off the books.” (Bloomberg)
Bank of China and Deutsche Bank to Lead $1.5B Hudson Yards Retail Construction Loan “Related Companies and Oxford Properties Group have tapped Bank of China and Deutsche Bank to co-lead a $1.5 billion construction loan to finance their 1-million-square-foot Shops & Restaurants at Hudson Yards, Commercial Observer has learned. The retail construction loan is due to close in the next few weeks and marks one of the largest debt deals originated in 2015.” (Commercial Observer)
Fresh & Easy Plans Wind-down, Liquidation “Fresh & Easy has informed its 3,000 employees in advance of a wind-down and liquidation of the 97-store chain, industry sources told SN. There was no immediate indication the company plans to file for bankruptcy, the sources said. Fresh & Easy, based in El Segundo, Calif., was acquired in 2013 by Yucaipa Cos., a Los Angeles-based investment firm, from U.K.-based Tesco following a bankruptcy filing.” (Supermarket News)
Lease Accounting Standard New Start Date Likely 2019 “It was so close just a few weeks ago. On Oct. 7, the Financial Accounting Standards Board held its last decision-making meeting on the lease accounting convergence project. ‘The Board seemed confident that the year-end 2015 target for adoption will be met,’ followed by a transition period of a year or two, wrote Bill Bosco, principal of Leasing 101 in an email newsletter distributed to followers.” (GlobeSt.)
Miami a Top 10 Global Destination for Commercial Real Estate Investment Capital “On the heels of a very strong 7-year run of foreign capital buying Miami condos and homes, Miami has something new to be cheerful about -- the growth of foreign real estate investment capital now pouring money into Miami's commercial real estate sector. According to the latest research from global property advisor CBRE Group, worldwide commercial real estate investment activity reached $407 billion in the first half of 2015.” (World Property Journal)
Home Study: Developers Offer Classes for Residents “To stand out from the competition, some condominium developers and resort-community builders are adding educational opportunities and classes to the ever-growing list of amenities. Typically available only to residents, the classes go well beyond fitness staples such as spinning or yoga, with some buildings offering mini-course catalogs that can include everything from artist-led painting instruction to learning to perform improv comedy.” (Wall Street Journal)
Alliance Residential Touts Sustainability “To highlight its efforts, Alliance published its Citizenship and Sustainability Report earlier this month. Kelly Vickers, Alliance’s national director of sustainability, says the company wants to share its efforts with employees, residents, and the public to spark awareness and further drive performance across the organization.” (Multifamily Executive)