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 for the day will be.
On Thursday, the Dow Jones Industrial fell 152.90 points, or 0.97%, to close at 15,593.98. The Standard & Poor’s 500 index fell 23.34 points, or 1.32%, to 1,747.15. The NASDAQ composite fell 74.61 points, or 1.9%, to close at 3,857.33. Benchmark U.S. crude for December delivery fell $0.60 to close at $94.20 a barrel on the New York Mercantile Exchange.
CBO REVISES BUDGET DEFICIT BY +$38 BILLION OVER ESTIMATE
WASHINGTON – On October 30, the Treasury Department reported that the federal budget deficit for fiscal year 2013 totaled $680 billion, $38 billion more than CBO estimated in its most recent baseline in May. Nearly all of that difference occurred because revenues were less than CBO estimated (see the table below). Revenues in fiscal year 2013 totaled $2,774 billion—$39 billion (or 1.4%) less than CBO projected in May: Outlays in 2013 were $3,454 billion—about $1 billion (or 0.03%) less than CBO estimated in May. That small difference resulted from larger discrepancies throughout the budget that nearly offset one another: https://www.cbo.gov/publication/44711?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=855024&utm_campaign=0
ARIZONA 5TH FOR POOR PEOPLE
WASHINGTON – The new data from the U.S. Census Bureau shows the highest percentage of poor persons in California, the District of Columbia, Nevada, Florida and Arizona. The total number of poor persons at 49.4 million. Arizona has 1.23 million persons living in poverty, according to new measures. The state has 1.21 million in the traditional measure. The federal poverty line for a family of two is $15,510 per year; for a family of four it is $23,550. California and Texas have the most poor persons, 8.9 million and 4.2 million, respectively. They also are the two most populous states. Iowa has the lowest poverty rate in the new measure at 8.6 percent, according to the Census data. Conventional U.S. poverty figures show Mississippi, Louisiana and New Mexico with the highest poverty rates and the total number of poor people in the country at 46.8 million persons. States with highest poverty rates
- California: 23.6%
- D.C.: 22.7%
- Nevada: 19.8%
- Florida: 19.5 %
- Arizona: 18.8%
Source: Census Bureau
UNEMPLOYMENT INSURANCE CLAIMS REPORTS DECREASED
WASHINGTON – The Department of Labor reported in the week ending November 2, the advance figure for seasonally adjusted initial claims was 336,000, a decrease of 9,000 from the previous week’s revised figure of 345,000. The 4-week moving average was 348,250, a decrease of 9,250 from the previous week’s revised average of 357,500. The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending October 26, unchanged from the prior week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending October 26 was 2,868,000, an increase of 4,000 from the preceding week’s revised level of 2,864,000. The 4-week moving average was 2,866,000, a decrease of 8,500 from the preceding week’s revised average of 2,874,500.
NEW COLLABORATIVE WORKSPACE BEING BUILT OUT IN RIALTO
TUCSON – Coworking is a new style of working that involves the sharing of space, ideas and knowledge. Unlike the typical office environment coworking spaces are occupied by several different companies that bring an array of experiences, adds diversity and allows for organic collaboration all for business growth. Coworking is not only about the physical space, but about nurturing a community. Connect provides entrepreneurs, small businesses, and freelancers more than just a desk, more than just a roof.
CHINA TO IMPOSE DUMPING FEES ON US, CANADA & BRAZIL
BEIJING – China will impose punitive measures on certain pulp products from the United States, Canada and Brazil for alleged dumping, it said Wednesday, in the latest trade dispute with foreign partners. Importers of cellulose pulp from the three countries will have to pay a deposit of up to 50.9% of the import price from Thursday, the commerce ministry said in a statement. Cellulose pulp is used in papermaking, textiles, food and other products, with China’s total imports worth around $4.7 billion last year, according to Customs data.
SIEMENS SELLING PLANTS TO AEA FOR $866 MILLION
FRANKFURT — Engineering giant Siemens said Wednesday it is selling off parts of its water technology business to a US private equity group, AEA Investors, for 640 million euros (US$866 million).”Siemens is selling parts of its water business to funds managed by AEA Investors” to focus on water and sewage treatment plants and seawater desalination plants, the German group said.”AEA Investors is acquiring the solutions for treating and processing municipal and industrial water and wastewater. The transaction is still subject to regulatory approval,” the statement said.The business, called Siemens Water Technologies, has around 4,000 employees, three-quarters of whom are in North America, Siemens added.
TOYOTA’S NET PROFIT SOAR 82.5% FOR HALF-YEAR
TOKYO – Toyota said Wednesday that its half-year net profit soared 82.5% while it raised its annual earnings forecast as a weak yen and improving sales in North America boosted its bottom line. The world’s biggest carmaker said it earned 1 trillion yen ($10.14 billion) on revenue of 12.53 trillion yen, up 14.9% year-on-year. The maker of the Camry sedan and Prius hybrid also raised its fiscal year to March profit forecast to 1.67 trillion yen, up from 1.48 trillion yen previously. Toyota has ramped up its bid to tap emerging markets while key U.S. demand has also been on the upswing, helping the firm book ever-increasing profits. The automaker tripled its net profit in the past fiscal year with a slump in the yen helping Japanese manufacturers’ bottom line by making them more competitive overseas and inflating repatriated foreign earnings.
UK MALL OWNER SEEKS PARTNERS TO FUND $1.6 BILLION PIPELINE
LONDON – British shopping center owner Intu Properties said it may seek partners to help it fund its 1 billion pound ($1.6 billion) pipeline of projects, and said it was seeing strong demand from retailers for space as the economy recovers. Intu, which owns some of Britain’s biggest malls, plans to invest 1 billion pounds ($1.6 billion) over the next 10 years to refurbish and expand its properties, which include the Lakeside center in Essex, southern England, and Victoria center in Nottingham. “Funding for our 1 billion pound pipeline of projects will include recycling of existing assets as well as the possible introduction of partners into major assets,” it said on Tuesday, adding that it that the program was progressing well.
GGP BUYS CHICAGO ‘Magnificent Mile’ BUILDING FROM GROSVENOR
General Growth Properties has acquired a 126,000-square-foot retail building in the heart of Chicago’s “Magnificent Mile” shopping district from Grosvenor Americas. Located at 830 North Michigan Ave., the building wasn’t listed for sale, but Grosvenor Americas was presented with an offer that was too good to pass up. It had owned the building since 1993. “We received an unsolicited offer to purchase from a very credible owner that was compelling,” Michael Beattie, Grosvenor Americas’ chief investment officer, told Commercial Property Executive. “Our strategy is to create value through our understanding of cities and where our investment in property fits. This sale allows us to realize value and redeploy funds in other markets that are the growth stage of the property cycle.”
CBRE ARRANGES $41.6 MILLION FINANCING FOR 10–STATE PORTFOLIO
CBRE Capital Markets arranged financing for the acquisition of a shopping-center portfolio spread out over 10 states. All of the properties are positioned adjacent to a Walmart Supercenter. The portfolio spans a total of 417,161 square feet of space, spread out over 16 shopping centers. The portfolio includes four Texas centers — the Alice Shopping Center in Alice; the Bay City Shopping Center, Bay City; the Lubbock Shopping Center in Lubbock; and the Uvalde Shopping Center in nearby Uvalde. CBRE arranged the financing on behalf of the borrower/buyer, a partnership between Dallas-based firms Fountain Capital and Cheney & Mathes Properties. CBRE obtained a 10-year, $41.6 million fixed-rate, non-recourse loan through Goldman Sachs Mortgage Co. The portfolio is currently 96% leased to 145 tenants. Among the retailers in the centers are Dollar Tree, which has a presence in 9 of the properties; Cato, with 12 stores; and Hibbett Sports, which has a presence in five of the shopping centers.
CANADIAN THANKSGIVING IN OCT. ADDS NOV. BLACK FRIDAY
Shopping on Black Friday is getting bigger in Canada, with 21 Cadillac Fairview malls signing up to open early on Nov. 29, and retailers offering discounts to keep shoppers from spending their Christmas dollars in the U.S. “I think it’s a new tradition. I think it kicks off the shopping season nicely,” said Wendy Greenwood, director of marketing, Ontario portfolio, Cadillac Fairview. The Friday after Thanksgiving Thursday in the U.S. has long been known as Black Friday, with retailers offering door-crasher discounts to get shoppers into stores to kick off the holiday shopping season. Last year Canadian retailers began jumping on the Black Friday bandwagon in greater numbers and the results were positive, say retailers. Canadians celebrate Thanksgiving in October.
EINSTEIN ADDING 30 NEW LOCATIONS
Einstein Bros. Bagels announced the addition of 30 new licensed locations across the country over the past nine months, accelerating the restaurant brand’s successful growth through the non-traditional channel. Of the new Einstein Bros. restaurants, 22 are located on college campuses, in addition to locations at three airports, two medical centers, one hospital, one train station and one casino.
PAPA JOHN’S REVENUES UP 6.4% IN 2013
Papa John’s International, Inc. (NASDAQ: PZZA) today announced financial results for the three and nine months ended September 29, 2013. Third quarter 2013 revenues were $346.3 million, a 6.4% increase from third quarter 2012 revenues of $325.5 million. Third quarter 2013 net income was $14.3 million, compared to third quarter 2012 net income of $13.0 million. Third quarter 2013 diluted earnings per share were $0.65 compared to third quarter 2012 diluted earnings per share of $0.55. Revenues were $1.05 billion for the nine months ended September 29, 2013, a 7.8% increase from revenues of $975.4 million for the same period in 2012. Net income was $50.7 million for the nine months ended September 29, 2013, compared to $44.3 million for the same period in 2012 ($50.2 million and $46.4 million, for the nine-month periods in 2013 and 2012, respectively, excluding the impact of the previously disclosed 2012 Incentive Contribution). Diluted earnings per share were $2.27 for the nine months ended September 29, 2013, compared to $1.84 for the same period in 2012 ($2.24 and $1.93, for the nine-month periods in 2013 and 2012, respectively, excluding the impact of the 2012 Incentive Contribution).
TALKS BETWEEN PHOENIX AND SURPRISE FOR LAND DEVELOPMENT
PHOENIX -The Arizona Republic reported Thursday on discussions between the cities of Surprise and Phoenix over some new West Valley developments near Luke Air Force Base. Talks center around lands previously held by Phoenix but are now held by Surprise. Phoenix deeded parcels it owned near Luke in 1999 to Surprise but with development restrictions aimed in part to protect the base from encroachment, according to the Republic story. Now, Surprise wants more development on those lands and is talking to Phoenix about it, according to the paper. Phoenix owns some other lands near Luke as well as the land for the base itself.
MESA PIZZERIA IN RUN FOR $250,000 GRANT
A downtown Mesa pizzeria is competing for a $250,000 grant from JPMOrgan Chase & Co. (NYSE: JPM). The East Valley Tribune reports Queen’s Pizzeria is up for small business grant from Chase Bank. The business just needs to get 250 online votes by Nov. 15, according to the report. Follow this link to add your vote for Queen’s Pizzeria. https://www.eastvalleytribune.com/local/mesa/article_0c93a67e-474b-11e3-b9dd-001a4bcf887a.html
NAR WARNS ON USE OF NEW .REALTOR DOMAIN If you were thinking of purchasing a .realtor website to help promote your real estate business, the National Association of Realtors (NAR) wants you to know that you had better be a registered realtor with the NAR before you buy. According to a press release from the association last week, domain sellers that are promoting and promising to sell .realtor domain names “have no relationship with NAR or the sale of .realtor domains” and should not accept payment for these domain names. According to the NAR, the group will handle the sale of .realtor domains and only sell to licensed realtors who are verified NAR members. Furthermore, said the NAR, it will “provide members a free .realtor domain that is associated with their name for one year on a first-come, first-serve basis” in order to “ensure the trademarked item, REALTOR ®, is used properly”
$9.9 BILLION PER DAY IN SALES NEEDED TO MEET PROJECTION
ATLANTA – When the holiday season officially kicks off the day after Thanksgiving, retailers will be scurrying to make the most of a compressed shopping season that is six days shorter than last year. In addition to timing considerations, increased competition is also pushing retail operators to re-evaluate their strategies and service offerings this year. The National Retail Federation is projecting a 3.9% increase in sales this November and December to $602.1 billion. To achieve this forecasted growth over last year, retailers will need to bring in $9.9 billion per day. Thankfully, according to a recent survey by Accenture, approximately 20% of American shoppers surveyed plan to increase holiday gift-buying budgets by $500.
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The Real Estate Daily News caught up with Anderson and Kemmerly together to discuss their new partnership and new project in Dove Mountain. “True Life was looking for a private building partner,” Anderson told us, “when Will White introduced me to Chris Kemmerly and Miramonte Homes. The synergy was great from the start.” The new partnership brings an exciting vision to this dynamic team of industry leaders for land investment, site work and home building and positions it to be a leading industry supplier of resort and lifestyle homes.
