Real Estate Daily News Buzz March 1, 2016
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 123.47 points, or 0.7%, to 16,516.50. The Standard & Poor’s 500 index fell 15.82 points, or 0.8%, to 1,932.23. The NASDAQ composite index fell 32.52 points, or 0.7%, to 4,557.95.
Benchmark U.S. crude oil rose 97 cents, or 3%, to $33.75 a barrel in New York Mercantile Exchange. Brent crude, the global benchmark, gained 87 cents, or 2.5%, to $35.97 a barrel in London. In other energy trading, wholesale gasoline rose 3 cents to $1.05 a gallon and heating oil rose 2 cents to $1.08 a gallon.
US pending home sales decline in January — Fewer Americans signed contracts to buy homes in January, as the recent hot streak appears to have been curbed by a shortage of properties for sale and colder weather. The National Association of Realtors said that its seasonally adjusted pending home sales index fell 2.5 per cent to 106 in January. The decline comes after the sales index averaged 108.9 in 2015, its highest level since 2006. The number of signed contracts decreased in the Northeast, Midwest and West. Prospective sales improved slightly in the South. But a shortage of listings has weighed down the potential for sales increases akin to last year’s increase. (ABC)
Here’s When J.C. Penney Might Sell off Some of its Prime Real Estate “J.C Penney may get an early Christmas present consisting of some cold, hard cash. On Friday, execs said the department store retailer is likely to sell its prized headquarters in Texas in the early fall. The company intends to use the proceeds from the sale to pay down about $400 million to $500 million in debt. The company also said it was exploring other asset sales this year, including some “fringe land,” physical stores and distribution centers.” (The Street)
Donald Trump May be Returning to the Casino Business “As he continues to lead the pack for the Republican presidential nomination, Donald Trump may be getting back into the business of gambling. Trump’s longtime friend and Las Vegas casino owner Phil Ruffin told the Wall Street Journal that he hopes to build a casino to go alongside the real estate mogul’s Trump Hotel in Las Vegas.” (Wall Street Journal)
China assures US no devaluation, pushing reforms forward — China’s premier told visiting U.S. Treasury Secretary Jacob Lew on Monday that his government is pressing ahead with painful reforms to shrink bloated coal and steel industries and ruled out devaluing China’s currency. Premier Li Keqiang’s comments were in line with a joint declaration by financial officials from the Group of 20 biggest rich and developing economies who met over the weekend in Shanghai. They pledged to avoid devaluations to boost sagging trade and urged governments to speed up reforms to boost slowing global growth. Beijing is under pressure to reassure global financial markets it has its economy under control following stock and currency turmoil. (ABC)
Not Enough Cooks in This $20 Billion New York Kitchen “Related Cos. executive Kenneth Himmel and a friend walked into a fancy Manhattan restaurant a few weeks ago without a reservation, and once seated, started ordering from the menu like food critics on an expense account. Himmel, CEO of the developer’s mixed-use arm, didn’t want to give anyone a heads up he was coming, since he’s in talks with the owner to open a new eatery in Hudson Yards, a small city rising on Manhattan’s far West Side. Himmel has been dining incognito a lot this year, trying to get the average customer’s perspective on what high-end restaurants can whip up.” (Bloomberg)
Where are the Stores in World Trade Center’s $4B Hub? “The tormented relationship between the Port Authority and retail leaseholder Westfield bodes ill. Where are the stores? And, what sort of ‘events’ does Westfield have in mind for the cathedral-scaled Oculus, to partly open Thursday, which was supposed to be a grand transit nexus? Without shoppers to bring it to life, the Oculus is a sterile, empty void — no matter how many tourists take selfies under the 155 foot-high ceiling.” (New York Post)
Capitalization Rates for U.S. Commercial Assets Stabilized in Mid-Late 2015 “According to global property advisor CBRE Group, capitalization rates for U.S. commercial real estate stabilized over the second half of 2015, after several years of trending downward. Cap rate movement over the second half of 2015 within the office, retail and multifamily sectors was too small to be considered significant. Cap rate movement in the industrial sector was also nominal, but was slightly larger than the other sectors and trended downward.” (World Property Journal)
$45 Million Apartment Split in Two as Manhattan Real Estate Markets Sputters “The air has been getting thinner in what was a white-hot market in New York for years, as a glut of luxury high-rises flooded inventory and a slowdown in global markets has forced buyers to retreat. This is a paradigm shift for the same market that saw record-shattering prices last year, with 40 units selling for more than $20 million each, and billionaire hedge funder Ken Griffin shelling out a reported $200 million for combined apartments on what is known as Billionaires’ Row in midtown Manhattan.” (Vanity Fair)
Is Sears on the Brink of Collapse? “This is a sad financial tale that offers little hope for the company in question. Sears Holding Corp.’s hauncho Edward Lampert could go down in history as the chairman who presided over corporate carnage — the utter destruction of value at this once leading American department store chain. The stinging 37.66% drop last year in the company’s shares continues to rage on even as fresh clouds loom on the horizon.” (The Street)
International Investment Surges 180% in 2015 “Foreign interest in American apartments grew dramatically in 2015, according to Real Capital Analytics (RCA). The New York-based commercial research firm reported that apartment deals with international buyers grew 180% in 2015. The view from the field backs up these numbers, according to Brian E. McAuliffe, senior managing director for Los Angeles-based CBRE Group.” (Multifamily Executive)
Rikers Reimagined: Innovative Ideas to Turn the Infamous Island into a New York Destination “Come stroll with us along 413 acres of city-owned waterfront property. Don’t mind the incessant roar of planes and the stench of the mudflat at low tide. Check out that breathtaking skyline view. From Gov. Andrew Cuomo to the New York Times editorial board, heavyweights are lining up to slam the door once and for all on the Rikers Island jail complex. So Crain’s asked architects, advocates, planners and dreamers to look at the island with new eyes. If the jail were to disappear, what could take its place?” (Crain’s New York Business)
JLL Sues Bauhouse, Beninati Over $1.9M Financing Commission for 3 Sutton Place “Commercial brokerage giant JLL says Joseph Beninati refused to pay a $1.9 million commission after it helped the developer obtain financing for his 3 Sutton Place luxury residential tower. The lawsuit comes a day after a judge rejected Bauhouse’s request for an injunction against lender Gamma Real Estate, who is now planning a foreclosure auction for the property, located at 426-432 East 58th Street. The auction is planned for Feb 29.” (The Real Deal)
