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.
Tuesday, the Dow Jones industrial average lost 0.33 of a point to close at 17,402.51. The Standard & Poor’s 500 index finished with a gain of 1.98 points, or 0.1%, at 2,086.05. The NASDAQ composite inched up 7.60 points, or 0.2%, to 5,044.39.
U.S. crude rose 22 cents to close at $43.30. Brent crude, a benchmark for international oils used by many U.S. refineries, rose 48 cents to close at $49.66 in London. Wholesale gasoline rose 7 cents to close at $1.764 a gallon. Heating oil rose 2.4 cents to close at $1.587 a gallon. Natural gas rose 8.7 cents to close at $2.931 per 1,000 cubic feet.
Tucson is one of the Best Places to watch meteor shower - One of the best meteor shows of the summer takes place this week when the Perseid meteor shower hits the Northern Hemisphere. Up to 100 shooting stars an hour should be visible in the northeast sky (weather permitting). USA Today's 10 Best lists Tucson as the second best city to view the meteors, right behind Kielder Forest, England. "Tucson's mountain peaks boast the largest number of telescopes around the globe, so it's often referred to as the Astronomy Capital of the World," the website said. "Cozy up at the foothills of the Santa Catalina Mountains and catch the stars shooting by from your blanket or through a telescope at one of the many observatories dotting the nearby mountaintops. Spots like The Westin La Paloma also have a cosmic concierge on hand to guide you through stargazing over s'mores." The Mt. Lemmon Sky Center says the hours between midnight and just before dawn are the best time to see the Perseids, which should wind down tonight. (USA Today)
John Paulson is Starting to Cash In on His Big Land Grab “After acquiring about 35,000 lots since 2009, Paulson & Co. shifted toward selling last year and is accelerating its disposition pace, according to Michael Barr, who manages the firm’s real estate. Paulson’s funds had invested $770 million, mostly in lots bought out of bankruptcies or other distressed sales, and acquired two dozen communities in Arizona, California, Colorado, Florida and Nevada.” (Bloomberg)
Investing in Commercial Real Estate Deals is Getting Easier “Investing in commercial real-estate deals may become more accessible to many more people as the field gets a technology makeover and drops one of its rules. Investment managers will now be able to openly solicit investments online to accredited investors, creating instant access to deals and making more investors aware of deals in the first place. (The Street)
McDonald’s Plans to Shrink by 59 Restaurants This Year in U.S. “McDonald’s Corp. plans to shrink by 59 locations this year in the U.S. as the company cuts costs and tries to revive sales. The chain is closing 184 restaurants and opening 125 new ones in 2015, according to a franchise operations document filed with the Minnesota Department of Commerce last month.” (Bloomberg)
J.P. Morgan Recruits Business Development Head for Real Estate Americas “Alexia Gottschalch was named head of business development and client strategy, real estate Americas at J.P. Morgan Asset Management (JPM), said spokesman Matthew Chisum. The position is new. Ms. Gottschalch will lead the team responsible for raising capital and advising clients for the firm's real estate investment business in the Americas.” (Pensions & Investments)
Why Healthcare Trust of America’s CEO is Bullish about Boston Real Estate “Boston is the largest market in HTA’s portfolio, with total investment in the area totaling 16 medical office buildings spanning 844,000 square feet, including the recent $101.5 million acquisition of 670 Albany St. near the BioSquare campus. Those holdings are valued at roughly $364 million.” (Boston Business Journal)
Macy’s, Tishman Speyer Enter Real Estate Purchase-and-Sale Agreement in Brooklyn “Under the agreement, Macy’s will continue to own and operate the first four floors and lower level of its existing nine-story Fulton Street retail store, which will be reconfigured and remodeled. Tishman Speyer will purchase the portion of the site that Macy’s will not retain, which it will develop into approximately ten floors of distinct, first-class office space with appeal to a wide range of diverse companies.” (Street Insider)
Too Much Money Creates its Own Problems “In the years following the 2008 crash, Barry Sternlicht was dubbed “the real estate bargain hunter” by the New York Times for buying up loan portfolios and properties at depressed prices and turning them into cash cows. But recently, Sternlicht has had difficulty living up to that moniker, at least in New York City.” (The Real Deal)
An Old City Law Meant to Stop Brothels Has Gyms across Town Sweating “Companies hoping to expand quickly find themselves mired in red tape and lawyers' fees as they navigate the city's byzantine bureaucracy. The permits require companies to prove they will not have a negative effect on a neighborhood by divulging their business plans, filing applications with a host of agencies and answering questions at a series of public hearings, starting with the local community board.” (Crain’s New York Business)
Miami Beach’s Eight-Block Landmark Shopping District Expansion Announced “Terranova, Lincoln Road shopping district’s largest property owner, released redevelopment plans to activate Lincoln Lane North by developing 723 North Lincoln Lane and 801 Lincoln road buildings. These buildings are part of Miami, Florida’s eight-block retail, dining and entertainment district located blocks from Miami Beaches.” (Chain Store Age)
Electric Utilities: To REIT or not to REIT “New EPA proposals for coal-powered plants could delay potential financial engineering of transmission assets. The 13 largest transmission network owners could represent $60 billion in market capitalization as stand-alone C corporations. The transformation into REITs, while allowed by the IRS, will be open for evaluation by both the FERC and state commissions. Who will be the test case?” (Seeking Alpha)
Capital One in $9 Billion Deal for GE Healthcare Finance “The $9-billion acquisition of GE’s Healthcare Financial Services includes mortgages and other loans to operators, investors and developers of seniors housing, medical office buildings, hospitals, pharmaceutical companies and related operations.” (Globe Street)