Real Estate Daily News Buzz June 9, 2017

Real Estate Daily News Buzz June 9, 2017

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.

Financial companies led U.S. stock indexes higher Thursday, nudging the Nasdaq composite index to a record high. The latest gains came as the stock market continued to trade mostly in a narrow range in the absence of major new economic data and ahead of next week’s meeting of Federal Reserve policymakers. Speculation that the Fed will raise interest rates helped boost financial stocks for the second day in a row. Higher interest rates allow banks and credit card issuers to charge more for loans, which boosts profits. Utilities and consumer goods companies were among the biggest decliners. Energy stocks also fell as crude oil prices declined.

The Standard & Poor’s 500 index gained 0.65 points, or 0.03 percent, to 2,433.79. The Dow Jones industrial average rose 8.84 points, or 0.04 percent, to 21,182.53. Both indexes remain slightly below their record highs set last Friday. The Nasdaq added 24.38 points, or 0.4 percent, to 6,321.76. Small-company stocks fared better than the rest of the market. The Russell 2000 index climbed 18.94 points, or 1.4 percent, to 1,415.61. Bond prices fell. The 10-year Treasury yield rose to 2.19 percent from 2.18 percent late Wednesday.

Stocks wavered between small gains and losses through much of the day as investors tuned in to watch former FBI Director James Comey testify before Congress as part of the investigation into Russian meddling into the U.S. presidential election.

In his testimony, Comey’s first public statements since his May 9 dismissal, he told Congress that President Donald Trump’s administration spread “lies” about him and the FBI after his abrupt firing in May. Comey also asserted that Trump fired him to interfere with his investigation of Russia’s role in the 2016 election and its ties to the Trump campaign. Stock indexes barely budged throughout the hearing, the public portion of which wrapped around midday.

House Poised to Pass Bill Taking Aim at Dodd-Frank Regulations “Since the Dodd-Frank Act was signed into law nearly seven years ago, Republicans have promised to make it their mission to repeal the legislation, which they say is strangling the financial industry and killing jobs. They will take their most significant step on Thursday when the House of Representatives votes on a bill that would gut major elements of the regulatory legislation, drafted in the aftermath of the 2008 financial crisis.” (The New York Times)

Startup Working on Real Estate-Based Cryptocurrency “Fintechs and incumbent financial services players have increasingly been investigating how to boost their clients’ access to cryptocurrencies. On Tuesday, European fintech BrickCoin announced it will be rolling out brickcoins, a new proprietary cryptocurrency underpinned by blockchain, and backed by real estate held by Real Estate Investment Trusts (REITs).” (Business Insider)

Nordstrom’s Stock Rockets as Company Explores ‘Going Private’ Deal “Shares of Nordstrom Inc. rocketed 22% in premarket trade Thursday, after the high-end department store chain said it was exploring a “going private” deal. The company said member of the Nordstrom family, including Co-Presidents Blake Nordstrom, Peter Nordstrom and Erik Nordstrom; Chairman Emeritus Bruce Nordstrom; President of Stores James Nordstrom and Anne Gittinger, have formed a group to explore the possibility of acquiring 100% of the shares outstanding.” (MarketWatch)

This Group Is Building Real Estate’s Next Generation of Women “The room began to fill up on the 42nd floor at Bank of Americas Plaza on a recent Wednesday evening, with women from all facets of the commercial real estate industry in North Texas in attendance. They were friendly and chatty with one another, some greeting familiar faces and others making new acquaintances. The reason for the gathering: the year’s first event for Ladies in Commercial Real Estate, a five-year-old organization targeting women in their 20s and 30s.” (D Magazine)

CREFC 17: Loan Structures Are Eroding in Real Estate Cycle’s Final Hours “On the surface, commercial real estate brokers and lenders seem pleased. While some segments of the market are limping, sure—retail is admittedly troubled, and suburban office perhaps volatile—there’s so much capital in the market that deals are being done left and right. However, if you peel away that shiny veneer, many in real estate banking and alternative finance have serious concerns about the future.” (Commercial Observer)

Vintage NYC Building Scores $430M Refi “Orda Management Corp. has closed on $430 million in debt financing on 225-233 Park Avenue South in Manhattan. Newmark Knight Frank Capital Markets was Orda’s exclusive advisor in the debt placement. The loan was structured as a 10-year, fixed-rate, interest-only loan. Barclays provided the financing, which replaced a previous $217 million loan from the New York State Teachers’ Retirement System. The funding reportedly allowed ownership to recapture equity spent on a recent $135 million, 18-month capital improvement plan.” (Commercial Property Executive)

The Real Estate Start-Up Jared Kushner Co-Founded Is Now Worth $800 Million “In May, real-estate investing start-up Cadre found itself in the limelight when The Wall Street Journal reported that Jared Kushner, President Donald Trump’s son-in-law, had failed to disclose his investment in the three-year-old company when he became a senior adviser to Trump. Jared and his younger brother, Josh, are both listed as the company’s co-founders, along with Ryan Williams, who met Josh Kushner at Harvard.” (Vanity Fair)

Hedge Funds Shelling Out Extra Cash for Space in Trophy Towers “Hedge funds are paying extra to rent offices in the top 25 trophy towers. A new JLL report found that the financial firms’ rent is so damn high that all 25 properties top $100 per square foot, with three of the buildings asking $200 per square foot for sky-high tower and penthouse floors.” (New York Post)

Loyalty Data Suggest Nine West May Be the Next to Close Stores “Retail store closings are on track to hit a record high this year with retailers from department stores Sears, Macy’s and J.C. Penney to specialty players like BeBe and Rue21 and footwear retailers Crocs and Payless shuttering locations. While some of the closings are a result of bankruptcy filings, others are companies right-sizing store footprints after expanding beyond what is now necessary in an increasingly online shopping world.” (CNBC)

German Fund Enters U.S. Market with Boston Buy “A German investment fund has made its first acquisition in the United States, acquiring Tower Point @ A Street, a 157,000-square-foot office and retail property in Boston’s Upper Seaport District, for $86.85 million. Universal-Investment-Gesellschaft mbH, on behalf of the BVK-US-Value-Immobilienfonds, bought the restored 117-year-old building from Rockpoint Group. The fund was advised by Northwood Investors.” (Commercial Property Executive)