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 fell 588.40 points, or 3.6%, to 15,871.28. The S&P 500 index slid 77.68 points, or 3.9%, to 1,893.21. The NASDAQ composite shed 179.79 points, or 3.8%, to 4,526.25.
U.S. crude fell $2.21 to close at $38.24 in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $2.77 to close at $42.69 in London. Wholesale gasoline fell 7.3 cents to close at $1.31 a gallon. Heating oil fell 7 cents to close at $1.39 a gallon. Natural gas fell 2.6 cents to close at $2.65 per 1,000 cubic feet.
U.S. stocks slumped again Monday, with the Dow Jones industrial average plunging more than 1,000 points at one point in a sell-off that sent a shiver of fear from Wall Street to Main Street. Stocks regained some of that ground as the day wore on, but the Dow Jones industrial average finished the day down 588 points. The slump — part of a global wave of selling triggered by the slowdown in China — reflected uncertainty among investors over where to put their money when the world’s second-largest economy is in a slide. (ABC)
AP survey: Dimmer outlook for US economy, wages and hiring — For much of the economy’s fitful and sluggish six-year recovery from the Great Recession, analysts have foreseen a sunnier future: Growth would pick up in six months, or in a year. That was then. The latest Associated Press survey of leading economists shows that most now foresee a weaker expansion than they had earlier. A majority of the nearly three dozen who responded to the survey predict tepid economic growth, weak pay gains and modest hiring for the next two years at least. (Channel 12)
Property Brokers Falter as Real Estate Boom Seen Cooling “Commercial-property brokerages, the stars among U.S. real estate stocks this year, are losing luster as the booming market for deals shows signs of cooling. CBRE Group Inc. and Jones Lang LaSalle Inc., the global titans of property services, have lost 8 percent and 8.7 percent, respectively, this month, reversing sharp gains compared with real estate investment trusts and the Standard & Poor’s 500 Index.” (Bloomberg)
The Mother of All Megaprojects “Hudson Yards, if completed as planned, will be the largest private real estate development in U.S. history. Five skyscrapers, thousands of apartments, a sprawling retail center, a hotel, cultural space and the first new subway station in ages are among the components of this massive undertaking over rail yards on the far West Side. And that’s just the first phase.” (Crain’s New York Business)
BlackRock Said to Start Financing Rental-Home Investors “BlackRock Inc. is the latest company planning to finance investors who buy single-family homes, capitalizing on soaring rental demand as the U.S. homeownership rate sits at a five-decade low. BlackRock, the world’s largest money manager, will buy loans from a network of partners that offer financing to the firm’s specifications starting as soon as next month.” (Bloomberg)
An Internet Mortgage Provider Reaps the Rewards of Lending Boldly “You have substantial assets, but your income is erratic and your finances are what in polite company would be called “complex.” Your credit history may contain a smudge or two. Yet you would like to buy one more luxury apartment. Major banks like Wells Fargo and JPMorgan Chase are not eager to give you the $3 million mortgage you need, nor are any traditional banks.” (The New York Times)
Sale of Tropicana Las Vegas Clears Last Hurdle “Penn National Gaming Inc. received approval Thursday from the Nevada Gaming Commission for the company’s $360 million purchase of the Tropicana Las Vegas casino-hotel, Penn announced Thursday. Following earlier approvals in several other jurisdictions where Penn operates, this approval removes the last obstacle, and the company said it will complete the purchase tomorrow.” (Commercial Property Executive)
Fairway is Still in the Rough “To lure back shoppers, Fairway is offering discounts to people who provide their cellphone numbers. The promotional effort may pay off eventually, but for now, comparable-store sales continue to erode and fell by a larger-than-anticipated 5.3% in the quarter ended June 28. Total sales dropped by 2%, to $194 million, and the company posted a $14 million net loss.” (Crain’s New York Business)
Trepp’s Manus Clancy Talks CMBS, Retail and Office Fears “Manus Clancy, Trepp’s boss of big data, told Commercial Observer about how his fascination with the Smith Haven Mall in Long Island foreshadowed a career in commercial real estate analysis. Among the many industry trends that have kept Mr. Clancy up at night as of late are the challenges big-box retailers face as they continue to shutter stores and file for bankruptcy—that and the country’s suburban office market.” (Commercial Observer)
How Boise’s A10 Capital Found its Footing in Commercial Real Estate “Today, A10 offers a line of bridge and long-term loans on certain midmarket commercial real estate properties and property portfolios, as well as refinancing and other products. Last week, the company announced the launch of a fixed-rate loan product with terms up to 20 years.” (Idaho Stateman)
11 Super-Important Mixed-Use Developments in the U.S. “Walkable cities—like Boston, New York and Miami—are more popular than ever. With new waves of wealthy Millennials looking for nearby amenities, mixed-use has found new life. These 11 properties show how impressive mixed-use properties can be.” (Bisnow)
Wall Street Concerned with The Fresh Market Results “Wall Street analysts expressed concerns with The Fresh Market a day after the chain reported flat earnings per share and negative comparable-store sales. ‘Results were even more disappointing than we thought and suggest the company is not moving fast enough to address the challenges of a fast-changing food retail landscape,’ Kelly Bania, an analyst with BMO Capital Markets.” (Supermarket News)
City of Tucson Offering Tax Amnesty Program - The City of Tucson is offering the business community a Tax Amnesty Program. This rare opportunity will allow Tucson business owners to submit delinquent sales tax or license fees without penalty and reduced interest due on delinquent balances. This is also an opportunity for unlicensed Tucson businesses to get licensed without penalty. The amnesty period will run for two months, Sept. 1, 2015 - Oct. 30, 2015. During the last Tax Amnesty Program in 2009, 598 businesses participated. Please visit the link below to learn more about the eligibility requirements for this year's program.