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 dipped 26.51 points, or 0.2 per cent, to 17,977.24. The Standard & Poor’s 500 index fell 3.79 points, or 0.2 per cent, to 2,087.79. The NASDAQ composite index gave up 10.44 points, or 0.2 per cent, to 4,895.79.
Benchmark U.S. crude fell $1.09, or 2.5 per cent, to $42.64 a barrel in New York. Brent crude, used to price international oils, lost 63 cents, or 1.4 per cent, to $44.48 a barrel in London. In other energy trading, wholesale gasoline fell 2 cents to $1.51 a gallon. Heating oil lost 2 cents to $1.29 a gallon. Natural gas fell 8 cents to $2.06 per 1,000 cubic feet.
US stocks slip as energy companies fall with oil prices — U.S. stocks slipped in quiet trading Monday as energy companies dropped with the price of oil. Metals and chemicals companies also fell. Company earnings remain weak, and Xerox and drugmaker Perrigo tumbled after reporting disappointing results and cutting their forecasts for the year. Stocks looked like they were headed for big losses in the morning, but recovered most of those losses over the last hours of trading. Investors traded less than usual as they looked through a weak group of company earnings and prepared for the latest Federal Reserve meeting, which will conclude Wednesday. (AP)
Sears Holdings Closing 78 More Stores “Sears Holdings announced its latest round of store closings as it continues to look for ways to cut expenses and return to profitability after five years of losses. The embattled retailer, which has been steadily shrinking its physical portfolio over the last few years, will close 68 Kmart and 10 Sears stores this summer. (See list of locations at end of story.) In February, Sears warned it would speed up the closing of unprofitable stores.” (Chain Store Age)
Macy’s: The Real Estate Catalyst Looks like a Hot Air Balloon “Macy's owns a considerable real estate portfolio. The problem is, at its current state it is not unlocking any value for shareholders. When unlocked, Macy's will see a one-off bump which is likely to yield profits for shareholders in the short term. But I'm concerned if this is a good move long-term wise. Management seems very skeptic about toying around with the real estate portfolio. I understand their perspective.” (Seeking Alpha)
National US new-home sales fall in March for third straight month — Americans stepped back from buying new homes in March, the third straight monthly decline as sales plunged sharply in the Western states. New-home sales slipped 1.5 per cent last month to a seasonally adjusted annual rate of 511,000, the Commerce Department said Monday. That rate has steadily dropped from 519,000 in February and 521,000 in January. Sales plummeted 23.6 per cent in the West, which has been prone to volatile swings in sales as one of the nation’s priciest housing markets. (AP)
De Blasio’s Ties to Real Estate Industry Are Scrutinized “Mayor Bill de Blasio has developed a close relationship with New York City’s real estate sector and accepted millions of dollars in donations from the industry’s executives, ties that are coming under scrutiny as investigators probe his fundraising. Federal and state investigators are looking at Mr. de Blasio’s fundraising activities, including efforts by him and his allies to raise money for the Campaign for One New York, a nonprofit set up to support the mayor’s policy and political agenda, people familiar with the matter said.” (Wall Street Journal)
Downtown Detroit Sales Prices Rise to “Insane” Levels “Greater downtown Detroit residential real estate—a near-dead market only a few years ago— is now soaring with a few property owners even listing their downtown and Midtown properties for fantasy prices running into the millions of dollars. But beneath some of the ridiculous pricing, greater downtown is offering a steady stream of residential openings as prices surge amid downtown's continued revival.” (Detroit Free Press)
Aeropostale Gets Delisted from NYSE “Troubled teen retailer Aeropostale Inc. has been dealt another blow. On Friday, the New York Stock Exchange suspended trading of the retailer’s stock with immediate effect, due to an ‘abnormally low’ trading price. Aeropostale does not intend to appeal the delisting. It said its shares will instead be traded on the OTCQX Best Market, an over-the-counter market operated by OTC Markets Group Inc. The new ticker is ‘AROP’.” (Chain Store Age)
Alongside Katz’ Pastrami, Luxury Condos “While other New York City institutions have succumbed to the insatiable appetite of a hungry real estate market, the 128-year-old Katz’s Delicatessen, with $19.95 pastrami sandwiches and a legion of fans, found a way to hang on. Last year, the family-owned deli at 205 East Houston Street sold two neighboring properties and its air rights for about $17 million, paving the way for a developer to build an 11-story condominium next door.” (The New York Times)
Department Stores Must Close 800 Mall Locations: Green Street “Major department store chains might soon be closing hundreds of locations at malls across the country, if they follow the advice of Green Street Advisors. Retailers must close about 800 locations in total—about a fifth of all anchor spaces at U.S. malls—if they want to restore the sales-per-square-foot productivity of the mid-2000s, a study by the analytics firm said.” (The Real Deal)
Time is Money: Be Patient with Commercial Real Estate Deals “Curiously, we are entrenched in a market where owners have their pick of occupants – unless, there are issues with the building. If the building lacks amenities, is indebted with more than the building is worth, has an unrealistic owner, or a combination of the above – the marketing cycle is exponentially extended. We are forced to be patient. What follows are two stories of patience and the way it benefited both deals.” (The Orange County Register)
Taconic Seeks Partner for Hell’s Kitchen Office Recapitalization “Taconic Investment Partners is seeking a partner for a proposed recapitalization of a 327,000-square-foot Hell’s Kitchen office building that would value the property at $220 million – roughly double what it paid in 2012, sources told The Real Deal. The Chelsea-based developer hired CBRE to market a stake in the 10-story property at 619-627 West 54th Street, between 11th and 12th avenues.” (The Real Deal)
CAPREIT Buys 1,000-Unit LIHTC Portfolio in Virginia “CAPREIT has acquired a five-community, 978-unit portfolio of income-restricted properties in the Richmond, Va. area for $68.5 million. The Rockville, Md.-based private firm now owns nearly 14,000 units, split almost evenly between market-rate and affordable housing communities. CAPREIT plans to add another $3 million in renovations to the five communities, bringing the total cost of the deal closer to $72 million.” (Multifamily Executive)