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.
U.S. stocks finished mostly higher Tuesday in another cautious day of trading. Energy companies climbed in tandem with the price of oil, but technology companies fell.
On Tuesday, he Dow Jones industrial average gained 13.08 points, or 0.1 per cent, to 17,990.32. The Standard & Poor’s 500 index ticked up 3.91 points, or 0.2 per cent, to 2,091.70. The NASDAQ composite index lost 7.50 points, or 0.2 per cent, to 4,888.28.
For the week, the Dow is down 13.43 points, or 0.1 per cent. The S&P 500 is up 0.12 points, or 0.01 per cent. The NASDAQ is down 17.94 points, or 0.4 per cent.
For the year, the Dow is up 565.29 points, or 3.2 per cent. The S&P 500 is up 47.76 points, or 2.3 per cent. The NASDAQ is down 119.13 points, or 2.4 per cent.
Intel Corp. has reported 560 worker layoffs at the semiconductor company's Chandler operations. The job cuts will happen at two Intel campuses in Chandler, according to written notifications from the company. Intel will layoff 248 workers from its Dobson Road location and another 312 from its Chandler Boulevard campus. Workers are being notified of the cuts this week. They will be terminated on May 31. Intel is Chandler’s largest employer and one of the anchors of Arizona’s technology sector. Intel (NYSE: INTC) began notifying impacted workers this week. Even after this week's layoffs, a spokeswoman said the chipmaker has a Chandler workforce of more than 11,000.
Lone Star Raises New $5.9 Bln Real Estate Private Equity Fund “Lone Star Funds, a real estate-focused private equity firm, said on Tuesday it has raised $5.9 billion for a new fund that will invest in the debt and equity of commercial property assets in the Americas, Europe and Asia Pacific. Investors in Lone Star Real Estate Fund V include corporate and public pension funds, sovereign wealth funds, university endowments, foundations and wealthy individuals, Lone Star said in a statement.” (Reuters)
Former Sony Building to be Flipped for a $300M Profit “Barely three years since buying Midtown Manhattan’s former Sony Building, wily investor Joseph Chetrit is poised to sell it for at least a $300 million profit, The Post has learned. Chetrit and his partners are in contract with Saudi Arabia’s Olayan Group to sell the ‘Chippendale’ tower at 550 Madison Ave. for between $1.4 billion and $1.5 billion, sources said. The real estate investor bought the building in early 2013 for $1.1 billion — putting his annual return at 27 percent, at a minimum.” (New York Post)
In Wealthy Pocket of Connecticut, an Innovative Approach to Affordable Housing “In Fairfield County, by many measures the most economically stratified county in perhaps the most economically stratified state in the country, New Canaan has recently become something of an affordable housing leader. Not that the town had much choice in the matter. A 1990 state law meant to reverse decades of housing discrimination requires all of Connecticut’s 169 municipalities to guarantee that at least 10 percent of their housing units are affordable.” (The New York Times)
Fertitta Brothers Set to Take Home the Jackpot in Red Rock IPO “In the casino business, the saying goes that the house always wins. In Red Rock Resorts Inc.’s upcoming initial public offering, the Fertitta brothers certainly stand to come out on top. Frank, 54, and Lorenzo, 47, are chief executive officer and director, respectively, of Las Vegas-based Red Rock, a casino operator scheduled to price its IPO on April 26. At the high end of its marketed range, Red Rock could raise $572.25 million, making it the largest IPO so far this year, according to data compiled by Bloomberg that excludes REITs, special purpose companies, and closed-end and country funds.” (Bloomberg)
GE Opens First Phase of South Carolina Manufacturing Plant “GE has opened Advanced Manufacturing Works, a 125,000-square-foot, state-of-the-art industrial plant in Greenville, S.C., to will serve as GE Power’s first advanced manufacturing facility. To date, GE has invested $73 million in the facility with plans to invest an additional $327 million across the GE Power Greenville campus over the next several years to drive innovation and the faster development of best-in-class technologies that deliver more value for customers across the globe.” (Commercial Property Executive)
Is Genting Looking to Flip Former Miami Herald Property? “Unable to build the luxury Miami casino and resort envisioned five years ago when they dropped $236 million for 14 acres in Biscayne Bay, gaming giant Genting Group may indeed be actively seeking to flip the property. Rumored for years, the company’s interest in selling the former site of the Miami Herald’s headquarters was confirmed recently on condition of anonymity by a developer who said he was shown the property.” (Miami Herald)
MSG Move Would be a $5B Nightmare Dressed Like a Daydream: Transit Group “A recent report by the Rudin Center for Transportation Policy and Management that suggests relocating the arena to a nearby location would cost upwards of $5 billion, take a particularly long time and become an urban planner’s worst nightmare. The findings are part of the think tank’s study of a recently proposed overhaul of Pennsylvania Station and its extension to the James A. Farley Post Office opposite Eighth Avenue.” (Commercial Observer)
Neiman Marcus Holds Tight to Top Standing in Luxury Retailing “It’s been a bumpy few months for Dallas-based luxury retailer Neiman Marcus. Longtime leaders in the company have left, following a layoff in October. Sales have declined in two consecutive quarters, including the key Christmas season. An initial public offering of stock that would raise cash has been on hold for months. And rumors swirl that the company could be sold again. Hasn’t Neiman’s been here before?” (The Dallas Morning News)
Bob Evans Closes 27 Locations “Bob Evans Farms Inc. said on Monday that it is closing 27 poorly performing locations in a move expected to increase the chain’s operating income by $1 million a year. All but six of the restaurants are on property the company owns, and were closed over the weekend. But the six leased locations will be closed some time in the company’s current fiscal year. The closures follow a comprehensive evaluation of the struggling New Albany, Ohio-based chain’s unit-level portfolio.” (Nation’s Restaurant News)
Boyd to Buy Las Vegas Hotel-Casino for $380M “Boyd Gaming Corp. has entered into a definitive agreement to acquire ALST Casino Holdco LLC, the holding company of Aliante Casino Hotel and Spa, in North Las Vegas, for total net cash consideration of $380 million, Boyd announced late last week. The upscale, resort-style casino and hotel is on the 215 Beltway within the Aliante master-planned community.” (Commercial Property Executive)