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.
Wednesday, the Dow average rose 52.32 points, or 0.2 percent, to 22,016.24. The Standard & Poor’s 500 index added 1.22 points, or less than 0.1 percent, to 2,477.57. The Nasdaq composite inched down 0.29 of a point to 6,362.65.
Benchmark U.S. crude added 43 cents to close at $49.59 a barrel in New York. Brent crude, the international standard, picked up 58 cents to close at $52.36 a barrel in London. In other energy trading, wholesale gasoline fell 2 cents to $1.64 a gallon, heating oil rose 2 cents to $1.66 a gallon and natural gas held steady at $2.81 per 1,000 cubic feet.
AIRLINE UPDATES AT TUCSON INTERNATIONAL AIRPORT — While one airline is leaving Tucson, another soon will begin offering new nonstop flights to the Bay Area. Less than a year after entering the Tucson market, Aeromar announced this week that it is canceling Tucson to Mexico service to pick up regional routes in Mexico. As Aeromar leaves, Alaska Airlines this month will begin offering nonstop flights between Tucson and San Jose, California. The first flight leaves from San Jose on the afternoon of Aug. 28, with the first trip out of Tucson on the morning of Aug. 29. Tucson International Airport (TIA) says the flights to San Jose will give people in Southern Arizona quicker access to tech companies located in the Bay Area and Silicon Valley.
WARD 5 COUNCIL OFFICE TO DEDICATE ANOTHER YOUTH ART PROJECT MURAL – Ward 5 Tucson City Council Member Richard Fimbres and staff will host the dedication of another mural created by the Pima Association of Government’s (PAG) Youth Art Project. The latest mural, which honors Ward 5 residents who served in the five branches of the military, will be dedicated this Saturday at 10 a.m. at the Ward 5 Council Office, 4300 S. Park Ave. Two murals dedicated last week at the Quincie Douglas Center and Library honor civil rights pioneer Quincie Douglas and the legacy of the Buffalo Soldiers. The PAG Youth Art Project offers employment for youth and the opportunity to be part of the design and installation of public artwork.
CITY POOLS AND SPLASH PAD SCHEDULE FOR FALL – Tucson Parks and Recreation’s fall schedule for pools goes into effect tomorrow. Today is the last day of the summer season when kids can swim for free. Adults can also swim for free today. While several pools will close until next summer, the City’s two splash pads (Catalina Park and Naida Jane Baker) will remain open from 8 a.m.-sunset until the end of October. The schedule linked below lists the locations, hours, amenities, and contact information for City pools.
FINAL SUMMER SAFARI NIGHTS AT REID PARK ZOO – Summer Safari Nights 2017 concludes this Friday at Reid Park Zoo. The program runs 6-8 p.m. Visit the Zoo to enjoy cooler evening temperatures, live music, family-friendly animal features, special dining options, and gift shop discounts. There also will be face painting, glitter tattoos, enrichment stations, artifact stations, the carousel, camel rides, and animal encounters. Regular admission applies, but some activities require an additional fee. Friday’s theme will be Scales and Feathers. While this week marks the official end of the Friday program for the season, there will be a special Summer Safari Night this Saturday (same hours) to celebrate Tucson Electric Power’s 125th anniversary. Admission will be discounted to $1.25, and the theme will be Lions, Tigers, and Bears.
Why WeWork Competitor Serendipity Lab is Ignoring VCs and Taking Money from Real Estate Investors “WeWork is a real estate business that acts like a technology company. It’s backed by powerful Silicon Valley venture capitalists, hires data scientists and DevOps engineers and sports a valuation that’s about 20 times annual revenue. John Arenas is taking a very different approach with his co-working business Serendipity Labs. Founded in 2011, a year after the launch of WeWork, Serendipity is sticking with investors who live, sleep and breathe real estate.” (CNBC)
Forget the Urban Stereotypes: What Millennial America Really Looks Like “Perhaps no generation has been more spoken for than millennials. In the mainstream press, they are almost universally portrayed as aspiring urbanistas, waiting to move into the nation’s dense and expensive core cities. Yet like so many stereotypes — often created by wishful thinking — this one is generally exaggerated and even essentially wrong. We now have a solid 15 years of data on the growth of young people ages 20-34, from 2000 to 2015, which covers millennials over the time they entered college, got their first jobs and, in some cases, started families.” (Forbes)
Retail Bankruptcies Soared by 110% This Year “The fact that physical retail is hurting is old news. But the extent of its suffering became clear last week when news and research organization Reorg First Day reported that retail bankruptcies rose 110% in the first six months of this year compared with the same period a year ago. The consumer discretionary sector accounted for 24% of all bankruptcies this year, according to the ratings agency Fitch.” (Investopedia)
Atlanta Draws Big Apartment Investment “Atlanta’s real-estate market is getting more attention from institutional investors hunting for better yields in more affordable markets. JLL Income Property Trust Inc. on Tuesday became the latest, acquiring a 210-unit apartment complex called The Reserve in an affluent suburb of Atlanta for approximately $47 million.” (Wall Street Journal, subscription required)
Why Steve Roth Thinks the Vast Amount of U.S. Retail Space Needs to Disappear “By now, everyone agrees that New York’s retail market is in trouble. But is it just a temporary dip, or is the market facing a more permanent crisis? Vornado Realty Trust CEO Steve Roth thinks it’s the former. ‘My belief is that the softness in New York is cyclical,’ he said during Vornado’s quarterly earnings call Tuesday. He was more concerned over the U.S. retail market outside the Big Apple, which he sees in a cyclical downturn.” (The Real Deal)
Orlando Is Getting a New Hotel Attraction “A developer who founded one of the largest U.S. home builders has secured construction financing to build a $282 million JW Marriott hotel in Walt Disney World in Orlando that is scheduled to open about the same time as a new Star Wars attraction. Dwight Schar, founder of home builder NVR Inc., of Reston, Va., has borrowed $218 million for the 516-key hotel and resort project scheduled to open in 2019.” (Wall Street Journal, subscription required)
Mezzy Business: Is Your Lender Looking to Take Over Your Project? “The Billionaires’ Row condominium project, from Michael Stern’s JDS Development and Kevin Maloney’s Property Markets Group, recently saw a bid by a mezzanine lender to take over the project blocked by New York Supreme Court after the developers’ equity partner, Ambase Corporation, objected, as Commercial Observer reported last week. Ambase said it had been far too easy for the lender, Spruce Capital Partners, to take over the property, which is now, allegedly, in technical default.” (Commercial Observer)
Walmart Expands Curbside Grocery Pickup to 26 Stores in California “The online grocery war between Amazon and Walmart is heating up this month in Southern California as the Arkansas retail giant plans to roll out curbside pickup in several local markets including Foothill Ranch. The South Orange County Walmart is among 26 stores adding “online grocery pickup” this week in California, bringing the total statewide to 36. Other curbside pickup locations are in the Inland Empire, Los Angeles and San Diego.” (Orange County Register)
Ventas Appoints New Leader “Ventas Inc. has named Todd Lillibridge as its new senior advisor to the Ventas chairman & CEO effective 2018. Lillibridge currently serves as president and CEO of Lillibridge Healthcare Services & EVP of medical property operations for Ventas, and will continue leading the MOB business until a successor is named. Lillibridge founded his namesake company more than 25 years ago with the goal of providing comprehensive real estate solutions to high-quality hospitals and health systems.” (Commercial Property Executive)
Tesla’s 2Q loss widens, but results beat forecasts — Tesla Inc. reported Wednesday that its net loss widened in the second quarter as the electric car maker opened new stores and prepared for the bumpy launch of its new lower-cost Model 3 sedan. The loss grew 15 percent to $336 million from a loss of $293 million in the April-June quarter a year ago. But Tesla’s adjusted loss, of $1.33 per share, handily beat Wall Street’s forecast of a $1.88 loss per share, according to analysts polled by FactSet.