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 picked up 103.29 points, or 0.6%, to close at 17,358.50. The Standard & Poor’s 500 index gained 9.57 points, or 0.5%, to 2,021.94. The NASDAQ composite index added 18.76 points, or 0.4%, to 4,952.23.
U.S. crude gained 69 cents at $36.31 a barrel in New York. Brent crude, a benchmark for international oils, fell a penny to $37.92 a barrel in London. In other energy trading, wholesale gasoline declined 2.6 cents, or 2%, to $1.256 a gallon and heating oil lost 1.8 cents, or 1.6%, to $1.128 a gallon. Natural gas fell 9.6 cents, or 4.8%, to $1.894 per 1,000 cubic feet.
As rate hike nears, Fed’s hints on future to be scrutinized — It’s not about what it will do. It’s about what it will say. The worst-kept secret in the financial world is that the Federal Reserve is all but sure Wednesday to raise interest rates from record lows by a modest quarter point. The uncertainty hinges on what the Fed will say about how much and how fast it expects to raise rates again in coming months. A relatively aggressive pace would contribute to higher borrowing rates and risks slowing the economy. It could also roil financial markets.
Yahoo facing more pressure from frustrated shareholders — Yahoo is facing more pressure from two shareholders that want the company to pursue other alternatives besides a complex spinoff of its Internet operations. The demands from SpringOwl Asset Management and Canyon Capital Advisors reflect shareholders’ frustration with Yahoo CEO Marissa Mayer’s inability to revive the company’s revenue growth after three-and-half years on the job. Mayer hoped to placate investors with last week’s announcement of a revised spinoff, but the company’s stock has slid by 6% since then. SpringOwl is calling for the company to lay off 9,000 of its 10,700 workers to help save $2 billion annually. Canyon Capital wants Yahoo to sell its Internet business instead of spinning it off.
The Durst Dynasty’s Rise, a Scion’s Descent “Since then, Douglas Durst has greatly expanded the family empire, and in a roaring real estate market, the Dursts have become the city’s largest private commercial building owners. They have pioneered the development of environmentally sustainable office buildings, and they have built residential towers.” (The New York Times)
Parkway Properties CEO Expects Asset Sales to Slow “Heistand said he expects the company to continue to be a net seller of assets in 2016, although not at the same robust pace as in 2015. Going forward, the company might recycle assets that generate outsized returns over a short period of time, Heistand added.” (REIT.com)
Atlanta’s Atlantic Station rides walkability to home-price gains “The turnaround began at the end of 2010 when North American and CBRE Global bought office space and land in Atlantic Station for future redevelopment. Through aggressive marketing, community outreach and a general upturn in the economy, Atlantic Station has made an amazing recovery.” (Marketwatch)
30 Hudson Yards Closes $5B in Financing “Related Companies and Oxford Properties Group announced the closing of $5 billion in financing for 30 Hudson Yards, this includes the site’s flagship tower in addition to the one million-square-foot shops and restaurants at Hudson Yards.” (Commercial Property Executive)
Smaller pension plans starting to invest like big ones “Smaller and mid-size pension plans are taking advantage of what used to be the exclusive domain of larger pension funds.” (Benefits Canada)
Report: Indiana’s tallest building struggling to fill space “The 48-story Chase Tower in downtown Indianapolis is struggling to fill vacant space, according to a report from a commercial real estate firm.” (The Associated Press)
Will dollar stores keep gobbling grocery share? “While mainstream supermarkets continue to increase their focus on better-for-you, dollar stores still move a lot of belly filler — the lower-priced processed foods more affluent shoppers are trying to avoid but lower-income consumers can afford.” (Retail Wire)
Fannie and Freddie’s Government Rescue Has Come With Claws “The decision to sweep into the Treasury all of the companies’ profits — which by now have far exceeded the amount of the total bailout and dividends owed — has attracted legal challenges from institutional investors and speculators in Fannie and Freddie. Originally set up by the federal government to make homeownership feasible in good times and bad, Fannie and Freddie were private companies with an implicit government guarantee.” (The New York Times)
Notre Dame Endowment Gains 8.7% on Private Equity, Real Estate “The University of Notre Dame, the wealthiest Catholic university in the U.S., posted an 8.7 percent gain for the fiscal year ended June 30, with private-equity investments contributing to its performance.” (Bloomberg)
European Group Acquires Three Hotel Brands for $2.9B “AccorHotels has acquired three iconic hotel brands—Fairmont, Raffles and Swissôtel—in a cash-and-share deal valued at a reported $2.9 billion, from FRHI Holdings Ltd.” (Commercial Property Executive)