SCOTTSDALE– Stephen Hulston has joined NOVO Development of Scottsdale Arizona and will oversee the company’s cost estimating, pre-construction and development activities.

Hulston brings almost three decades of construction experience to NOVO having most recently served as Vice President/Business Unit Leader for Balfour Beatty Construction. He managed Arizona operations for the construction company, including all financial, design, construction and human resources functions.  Hulston was an executive with Howard S. Wright Construction, which was acquired by Balfour Beatty in 2011.  During his tenure, Hulston has overseen more than $1 billion in construction projects in Arizona.

“The addition of Stephen provides an unbelievable opportunity for NOVO to advance our goals in the development arena,” said Kurt Rosene, founder of NOVO.  “Stephen’s tremendous knowledge base and experience in the construction industry, as well as his impressive relationships in the field, will help us realize the company’s development plans.  We are fortunate to have attracted someone of his caliber.”

NOVO Development, LLC is a commercial real estate development company headquartered at Gainey Ranch Financial Center.  The company develops a wide variety of commercial real estate projects ranging from office and industrial to multi-family.  The company, while headquartered in Metro Phoenix, pursues projects throughout the nation.  If you would like to learn more about NOVO Development, call (480) 275-7650.

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.

Monday, the Dow Jones industrial average fell 8.01 points, or 0.05 percent, to 17,492.93. The Standard & Poor’s 500 index fell 4.28 points, or 0.2 percent, to 2,048.04 and the NASDAQ composite lost 3.78 points, or 0.1 percent, to 4,765.78.

Benchmark U.S. crude shed 33 cents to $48.08 per barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, fell 37 cents to $48.35 a barrel in London. In other energy commodities, wholesale gasoline rose 1 cent to $1.65 a gallon, heating oil fell 1 cent to $1.48 a gallon and natural gas fell 1 cent to $2.06 per thousand cubic feet.

Appeals court reverses fraud finding against Bank of America — Bank of America Corp. was not liable for fraud and subject to a penalty of over $1.2 billion for its actions before the economy collapsed in 2008 despite a jury’s finding to the contrary, a federal appeals court ruled Monday. The 2nd U.S. Circuit Court of Appeal in Manhattan said there was insufficient evidence for a jury to conclude at a 2013 trial that mail and wire fraud was committed by the bank’s Countrywide Financial unit in late 2007 and 2008 when it passed along mortgages to government housing agencies Fannie Mae and Freddie Mac. Prosecutors had alleged that the bank sold mortgages at break-neck speed without regard to quality as the economy hurtled toward one of the nation’s worst financial downturns. (AP)

This Fed Reserve Head Says Conditions Are Almost Right for June Rate Hike “Conditions for a rate increase by the Federal Reserve are “on the verge of broadly being met,” Eric Rosengren, president of the Federal Reserve Bank of Boston, told the Financial Times. According to an article on Sunday, Rosengren told the FT he was getting ready to back tighter monetary policy as economic and financial indicators had become more positive. “I want to be sensitive to how the data comes in, but I would say that most of the conditions that were laid out in the minutes, as of right now, seem to be … on the verge of broadly being met,” said Rosengren, a voter this year on the Fed’s policy-making Federal Open Market Committee.” (Fortune)

The Retail Apocalypse Hits Wall Street “The retail apocalypse finally moved from Main Street to Wall Street over the past week. Brick and mortar retail stocks were devastated, after investors got a look at some of the latest earnings reports from some of the biggest names in the sector. It was Macy’s first-quarter earnings report that triggered the big sell-off of retailers and it is easy to see why. The grand old name in department stores turned in financial numbers reminiscent of those at Sears Holdings. Macy’s reported that its revenues dropped by $460 million during the first quarter of 2016. The company reported revenues of $27.08 billion in January that fell to $26.62 at the end of April. This followed a dismal fourth quarter, in which revenues actually dropped during the holiday season. Macy’s reported revenues of $27.57 billion in October 2015 that fell to $27.08 billion in December.” (Seeking Alpha)

Why retailers should NOT give up on bricks and mortar: Former JC Penney CEO “The narrative that “everybody shops online so who needs physical stores” is dangerous to the future of retailing, former department store executive Allen Questrom warned on CNBC on Friday, following a recent a run of largely dismal retail earnings. ‘Every time you do $1 in digital [sales], it’s probably one less reason for the customer to come into your store,’ said Questrom, formerly CEO of a number of retailers, including J.C. Penney, Neiman Marcus, Barneys New York, and Federated Department Stores (now Macy’s). Online sales still make up a relatively small contribution to the bottom lines of many of the nation’s major retailers, Questrom told “Squawk Box.” The numbers back up his assertion.” (CNBC)

Boeing sells 100 planes worth $11.3B to Vietnam’s VietJet — Boeing Co. is selling 100 aircraft worth about $11.3 billion at list prices to Vietnam’s VietJet as the airline seeks to expand its international and domestic flights. Aircraft in deals of this size are typically sold at a discount to list prices, however. Boeing Co. said Monday that the planes, all of which are 737 Max 200 models, will be delivered between 2019 and 2023. It was the single largest airplane purchase by Vietnam, according to the Chicago company.

Since no one is buying clothes, here’s what stores are selling instead “With apparel struggling to generate sales, a number of retailers are putting greater emphasis on home goods and furnishings. Urban Outfitters Inc. ,which reported first-quarter earnings on Wednesday that beat estimates, said its home merchandise was part of the reason. Urban Outfitters brands include its namesake chain plus Anthropologie, Free People, the bridal brand BHLDN, the home brand Terrain and the restaurant group Vetri Family, acquired late last year. “Strong, double-digit growth in the expanded categories like home, beauty, intimates, Terrain and BHLDN helped to drive these results and were partially offset by declines in certain apparel categories,” said David McCreight, president of Urban Outfitters, in his remarks during the company conference call, according to a FactSet transcript.” (MarketWatch)

40 Percent of the Buildings in Manhattan Could Not Be Built Today…“New York City’s zoning code turns 100 this year. That may not sound like cause for celebration — except maybe for land-use lawyers and Robert Moses aficionados. Yet for almost every New Yorker, the zoning code plays an outsize role in daily life, shaping virtually every inch of the city. The bays and cliffs of the Empire State Building come from zoning, as do the arcades and plazas of Park Avenue. The code gave us Zuccotti Park and Billionaire’s Row, the quietude of Greenwich Village and the bustle of the High Line, the glass towers now lining the formerly industrial waterfront and the portion of subsidized apartments that fill them. New York’s zoning code was the first in the country, meant to promote a healthier city, which was then filling with filthy tenements and office towers. Since it was approved in 1916, the ever-evolving, byzantine code has changed many times to suit the needs of a swollen metropolis. Just in March, the administration of Mayor Bill de Blasio won approval for a vast citywide plan that would encourage sleeker, more affordable developments.” (The New York Times)

RXR Realty completes one of the largest office-building acquisitions of the year “RXR Realty closed on its nearly $2 billion purchase of 1285 Sixth Ave. Friday—one of the biggest office-building transactions in the city so far this year. In conjunction with the acquisition, RXR signed a deal with UBS for about 900,000 square feet at the 1.8 million-square-foot skyscraper. The Swiss bank agreed to remain as the 42-story tower’s anchor tenant through 2032. UBS occupies floors eight to 20, 37, 38 and 39. UBS’s lease was set to expire in 2020. The building, which RXR bought from a partnership between AXA Financial and JPMorgan Asset Management, is nearly full with tenants. AIG and Morgan Stanley provided RXR with financing for the purchase. Adam Spies and Doug Harmon, sales brokers with Eastdil Secured, handled the transaction for the sellers.” (Crain’s New York)

Fannie, Freddie and the Secrets of a Bailout With No Exit “When Washington took over the beleaguered mortgage giants Fannie Mae and Freddie Mac during the collapse of the housing market and the financial crisis of 2008, it was with the implicit promise that they would be returned to shareholders after being nursed back to health. But now, with the unsealing of documents this week that were produced as part of a lawsuit filed against the government, new evidence is coming to light on how intimately the White House was involved in the Treasury’s decision in August 2012 to keep all the companies’ profits for the government. That move effectively maintained Fannie’s and Freddie’s status as wards of the state. The newly released documents go beyond previous disclosures in the case and make clear that the Obama administration never had any intention of restoring Fannie and Freddie, which enjoyed implicit backing from the government before the takeover, to their status as stand-alone entities.” (The New York Times)

Bids due on J.C. Penney Co.’s campus, which has over 80 prospective buyers (Video) “Retail giant J.C. Penney Company Inc. (NYSE: JCP) is expected to sell its Plano headquarters campus with a partial leaseback of its three-story, 1.8 million-square-foot build-to-suit building, which is expected to help the retailer reduce outstanding debt and help manage its expense. The initial bids are due by the end of the day, with real estate sources saying this will be the first round of a number of bids before the campus hopefully sells by the end of the year.” (Dallas Business Journal)

Here’s where the most retirees are moving — and why “Perhaps the best way to find out which states are winners for retirees: Forget surveys and expert opinions, and find out where the most retirees are actually moving. There are plenty of lists about where retirees should move — often locations with good affordability, low taxes, great weather, and plentiful cultural and recreational opportunities. But SmartAsset, a website that offers free online personal finance tools, crunched U.S. Census Bureau migration statistics and discovered the most popular places for retirees. (In case you were wondering, the state where the most retirees are leaving is New York, followed by Illinois, California, Pennsylvania and New Jersey.)” (MarketWatch)

Massive Development Near Dulles Airport to Include 1,200-Plus Multifamily Units “A joint venture between Chicago-based Origami Capital Partners and an affiliate of Westport, CT-based Greenfield Partners has kicked off development of an 85-acre site on Metrorail’s Silver Line less than a mile from Washington Dulles International Airport. Now called The Hub, and formerly known as Dulles World Center, it will be a mixed-use property, including multifamily development. The property is approved for as many as 1,265 multifamily residential units. They will be part a site that also includes up to 400,000 square feet of retail space, 3.5 million square feet of office space, and 350 hotel rooms. The Hub is the largest approved contiguous development site on Metro’s Silver Line. The Hub’s focal point will be a central promenade including outdoor recreation, retail, and entertainment space.” (MultiHousing News)

The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report from May 16 thru 20, 2016.

RETAIL – 555 E. WETMORE, TUCSON
Mark’s Ace Hardware has leased a 9,895-square-feet space at Tucson Place Shopping Center, located on the NWC of First Ave. and Wetmore Rd. The Premises will be used for the retail sales of products and services sold at Ace Hardware stores. They are scheduled to open for business Agust 2016. Andy Seleznov and Melissa Lal represented the Landlord, Larsen Baker, while, Marty Olejarczyk, of De Rito Partners, represented the Tenant. [mepr-show rules=”58038″]Tenant Phone: 520.325.2432[/mepr-show]

INDUSTRIAL – 4520 S. COACH DR., TUCSON
Trane U.S., Inc. renewed their lease for 9,520-square-feet in Butterfield Business Center, 4520 S. Coach Dr. in Tucson, from Presson Equity Partners, LLP.  Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Alan Moore with Chapman Lindsey Commercial Real Estate Services, represented the tenant in this transaction.

INDUSTRIAL – 2015 N. FORBES BLVD., TUCSON
Atek Engineering Consultants, LLC leased 4,416-square-feet in Broadbent Industrial Center, 2015 N. Forbes Blvd., Suite 103 in Tucson from Forbes Tucson, LLC.  Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Esther Empens with Tierra Antigua Realty, represented the tenant in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.638.8142[/mepr-show]

RETAIL – 3601 W. CORTARO FARMS RD., TUCSON
BodyCentral Physical Therapy, PC leased 3,800-square-feet of retail space at 3601 W. Cortaro Farms Rd. in Tucson from Pacific Income Properties, LLC.  This will be BodyCentral’s fifth location in Tucson.  Aaron LaPrise, Retail Specialist with Cushman & Wakefield | PICOR, represented the tenant. Brian Chang and Jason Wong with Red Point Development, Inc., represented the landlord in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.325.4002[/mepr-show]

OFFICE – 1500 N. WILMOT RD., TUCSON
Charles Giffin, M.D., renewed his lease for 3,762-square-feet at 1500 N. Wilmot Rd., Suite B-250 in Tucson from TMC Holdings, Inc.  Rick Kleiner, MBA, Office Specialist with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Asking lease rate: $14.00 SF/YR Modified Gross; Tenant Phone: 520.721.7886[/mepr-show]

INDUSTRIAL – 746 E. 46^th ST., TUCSON
On-Time Food Services, Inc., dba Cedars Mediterranean Foods, leased 2,540-square-feet at 746 E. 46^th St. in Tucson from RRL, Inc. Brandon Rodgers, CCIM, Principal with Cushman & Wakefield | PICOR, represented the landlord and Dave Gallaher with Tucson Industrial Realty, represented the tenant in this transaction.[mepr-show rules=”58038″]Tenant Phone: 978.372.8010[/mepr-show]

OFFICE – 6260 E. GRANT RD., TUCSON
Coronado Internal Medicine PC has leased a 2,400-square-feet space at Wilmot Professional Plaza, located on Wilmot Rd, just south of Grant Rd. The Premises will be used as a general medical practice office. They are scheduled to open for business August 2016. Andy Seleznov and Melissa Lal represented the Landlord, Larsen Baker, while Andrew Sternberg of Oxford Realty Advisors, LLC, represented the Tenant. [mepr-show rules=”58038″]Tenant Phone: 520.885.2072[/mepr-show]

OFFICE – 6260 E. GRANT RD., TUCSON
Coronado Internal Medicine PC has leased a 2,400-square-feet space at Wilmot Professional Plaza, located on Wilmot Rd, just south of Grant Rd. The Premises will be used as a general medical practice office. They are scheduled to open for business August 2016. Andy Seleznov and Melissa Lal represented the Landlord, Larsen Baker, while Andrew Sternberg of Oxford Realty Advisors, LLC, represented the Tenant. [mepr-show rules=”58038″]Tenant Phone: 520.885.2072[/mepr-show]

OFFICE – 1150 S. HIGHWAY 92, SIERRA VISTA
Sonora Quest Laboratories, LLC renewed their lease for 1,920-square-feet at 1150 S. Highway 92 in Sierra Vista, Arizona, from Four Brother Properties, LLC.  Rick Kleiner, MBA, Office Specialist with Cushman & Wakefield | PICOR, handled this transaction.

RETAIL – 423 N. 4^th AVE., TUCSON
Everest Souvenirs leased 1,600-square-feet at 423 N. 4^th Ave. in Tucson from Rich Rodgers North, Inc.  Brandon Rodgers, CCIM, Principal with Cushman & Wakefield | PICOR, handled this transaction.[mepr-show rules=”58038″]Tenant Phone: 520.622.8203[/mepr-show]

INDUSTRIAL – 3534 – 3538 N. ROMERO RD., TUCSON
Southern Arizona Maintenance Service, LLC leased 1,500-square-feet at 3534–3538 N. Romero Rd., Suite 136 in Tucson from Costa Verde Investments, LLC.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.60 SF/MO Modified Gross; Tenant Phone: 520.721.5800[/mepr-show]

INDUSTRIAL – 3534 – 3538 N. ROMERO RD., TUCSON
Hardcore 24 Gym, LLC leased 1,500-square-feet at 3534–3538 N. Romero Rd., Suite 112 in Tucson from Costa Verde Investments, LLC.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.60 SF/MO Modified Gross; Tenant Phone: 520.784.3099[/mepr-show]

INDUSTRIAL – 3710 S. PARK AVE., TUCSON
The Energy Specialist leased 1,170-square-feet at 3710 S. Park Ave., Suite 704 in Tucson from William Lee, LLC.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking lease rate:
$0.40 SF/MO NNN; Tenant Phone: 520.477.7225[/mepr-show]

OFFICE – 548 E. SPEEDWAY BLVD., TUCSON
Heather Moroso, NMD, leased 1,080 square feet at 548 E. Speedway Blvd. in Tucson from Tanis A. Duncan.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the tenant and Tari Auletta, with Keller Williams Southern Arizona, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking lease rate: $1.39 SF/MO Modified Gross; Tenant Phone: 520.204.2250[/mepr-show]

OFFICE – 215 W. GIACONDA WAY, TUCSON
Revel Insurance Group, LLC leased 590-square-feet at 215 W. Giaconda Way, Suite 101 in Tucson from Giaconda 205 Partners, LLC.  Tom Nieman, representing the landlord, and Isaac Figueroa, representing the tenant, both Office Specialists with Cushman & Wakefield | PICOR, handled this transaction.[mepr-show rules=”58038″]Tenant Phone: 520.207.7984[/mepr-show]