Real Estate Daily News Buzz March 28, 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.
Shoe retailer Payless Inc. is set to file for Chapter 11 bankruptcy protection, Payless Inc., the struggling discount shoe chain, is preparing to file for bankruptcy as soon as next week, according to people familiar with the matter. The company is initially planning to close 400 to 500 stores as it reorganizes operations, said the people, who asked not to be identified because the deliberations aren’t public. Payless had originally looked to shutter as many as 1,000 locations, and the number may still be in flux, according to one of the people. Payless’s bankruptcy would add to a tumultuous year in retail, with several bankruptcies and hundreds of store closings — even at companies that aren’t distressed. The industry is racing to try to adapt to more online purchasing and a shift away from mall shopping. Payless was bought by private equity firms Golden Gate Capital and Blum Capital Partners in 2012 as part of the breakup of publicly traded Collective Brands Inc. The company, founded in 1956 in Topeka, Kansas, employs almost 22,000 people, according to its website. It has more than 4,000 stores in 30 countries. (Bloomberg)
TCC Recognized as a Top Renovated venue – Billboard magazine lists the Tucson Arena as one of the top 23 renovated venues vying to attract top acts. A seven-day-a-week work schedule allowed a $9 million upgrade of the Tucson Arena to reach completion by the end of 2014 without bumping any scheduled events. That was followed by an additional $3.7 million in upgrades and “back-of-house” improvements for hockey and other events. “The arena, part of the Tucson Convention Center complex, is the largest venue in its market, drawing fans from throughout southern Arizona and northern Mexico,” the magazine said. The City of Tucson and Rio Nuevo worked together to renovate the arena, which is now managed by SMG. The 40-year-old worldwide entertainment and convention management company manages 233 facilities, including convention and exhibition centers, arenas, stadiums, theaters, performing arts centers, amphitheaters, equestrian facilities, science centers, and a variety of other venues.
Deadline approaching for Historic Preservation Awards nominations – This week is the deadline to submit nominations for historic preservation awards. The Tucson-Pima County Historical Commission is recognizing individuals, firms, groups, and/or organizations that have demonstrated their interest or contribution to the preservation, conservation, or interpretation of local history, architecture, or historic preservation in Tucson or Pima County. For more information, please refer to the 2017 Awards Program Description and Nomination Form linked below. Nominations must be received by noon on Friday.
Ready to Launch at the Glendale Airport – The Glendale Airport Aviation Advisory Committee recently approved for StarshineAZ to open their co-op and co-working space for women inside the Glendale Airport terminal. “We are so pleased that the committee understood our concept and gave us the co-ahead,” stated Susan F. Moody, Starshine co-founder. “My business partner, Leeanne Gardner, and I are committed to creating this space for women in the West Valley and the Glendale Airport was our 1st choice.” Not only is the Glendale Airport in the heart of the West Valley, but the building offers a quiet nurturing atmosphere, has access to a large training room and room for expansion. “The best part,” according to Leeanne, “is that that there is a restaurant on site. Why go to Starbucks when you can come to Starshine?!” she quips. StarshineAZ inspires, supports and mentors women business owners who find their passion and their purpose through their company and provides them with the Systems, Training, Advice and Resources so they can achieve greater success in their business and happiness in their life. “Let’s face facts,” says Moody, “women grow their businesses differently than men. While men thrive in a competitive environment, women prefer a cooperative atmosphere. While men like to work individually; women prefer to work collectively.” Opening this May, StarshineAZ will be offering a collaborative co-working space and co-op for women entrepreneurs.
Abu Dhabi’s Real Estate Ties To U.S. Deepen With $300 Million Chrysler Building Financing “Major financial institutions based in Abu Dhabi, no stranger to the U.S. real estate scene, have recently been on both the giving and receiving ends of the financing for prominent New York City properties. The National Bank of Abu Dhabi recently issued a $300 million loan to refinance the Chrysler Building, according to records filed Thursday, coinciding with the completion of the bank’s merger with First Gulf Bank, also based in Abu Dhabi. The merger will turn the new bank, which will retain the National Bank of Abu Dhabi name, into a global banking power with $175 billion in assets. It will rival Qatar National Bank and overtake Britain’s Royal Bank of Scotland and France’s Credit Agricole, Reuters reports, as Gulf states aim to diversify economies hit by lower oil prices.” (Forbes)
GameStop Is Going to Close at Least 150 Stores “GameStop is set to close between at least 150 stores following fourth quarter sales declines in almost all of its segments. The Texas-based company said Thursday that hardware sales declined 29.1%, and new software sales fell by 19.3% for the quarter, CNBC reports. Shares of GameStop then dropped more than 10% in early trading Friday. GameStop said it expects to close 2-3% of its stores, however it will be opening 65 new Technology Brand stores and 35 Collectibles stores, according to USA Today. The American video game and electronics retailer cited weak sales of particular video game released during the holiday season as well as other retailers using “aggressive” promotional techniques as reasons for the decline.” (Fortune)
8 of the most expensive real estate developments in American history “With an estimated cost of $20 billion, New York City’s Hudson Yards neighborhood is set to become the most expensive private real estate development in American history. When construction is complete in 2024, it will include all types of buildings, from luxury condos to boutiques to offices. Elsewhere in the US, there are several similar projects — some of which cost billions.” (Business Insider)
Tips to Address Slow Senior Housing Lease-Ups “With supply pressures intensifying in markets across the country, senior housing projects are at risk of slow lease-ups. Careful planning and investment is critical to preventing this situation whenever possible, while those experiencing slow lease-ups need to consider their options and take action, according to industry insiders who spoke last Thursday at the National Investment Center for Seniors Housing & Care (NIC) Spring Investment Forum in San Diego. Windsor, California-based Oakmont Senior Living largely has been able to hit or exceed pro forma lease-up expectations, thanks to a rigorous process and investments before a community opens its doors, said Vice President of Operations Courtney Siegel. Oakmont owns and operates private-pay communities throughout California. To determine the positive impact that upfront investment can have, it’s necessary to consider the vacancy loss rate of each unit, Siegel said.” (Senior Housing News)
The death of the all-cash Chinese buyer – and what it means for NYC banks “Late last year, Steven Ho saw alarm bells on social media: The Chinese government was gearing up for a major crackdown on foreign investment, and on messaging platforms such as WeChat and Line, Ho’s friends told him they were concerned that money would be tighter. In January, those worries became reality, as the government imposed exacting new capital controls that required Chinese citizens to disclose the purpose of their foreign investments. In the days that followed, numerous callers told Ho, a senior loan officer at Queens-based Quontic Bank, that they were unable to get their money out of China to finance real estate investments in New York. “They’re saying, ‘What’s the max I can borrow?’ and they’ll figure out other means [for repayment] later,” Ho said.” (The Real Deal)
Alphabet soup of technology will disrupt commercial real estate, says ULI panel “VR, AR, AI — virtual reality, augmented reality and artificial intelligence — are just some technologies in play across multiple industries, and commercial real estate is no exception. A panel on Thursday at ULI Carolinas’ conference in Charlotte discussed how technologies already implemented in international markets will eventually become the new norm in the United States, disrupting our lives, ways of doing business and built environments. The panel — Trish Healy, principal at Raleigh developer Hyde Street Holdings; Linda Isaacson, senior vice president at First American Title Co.; and Deborah Weinswig, managing director at Fung Global Retail & Technology — stressed that seemingly far-fetched technologies are coming soon.” (Charlotte Business Journals)
Washington REIT to Buy Watergate Building “No, not that Watergate building, but close. Washington REIT has agreed to acquire 600 New Hampshire Ave. NW, a 12-story, 309,000-square-foot Class A office building in Washington, D.C.’s, Watergate complex, for about $135 million, the REIT announced late last week. The seller of the building, also known as Watergate 600, is Bradley Holdings, a/k/a Katherine Bradley and David Bradley, who also control Atlantic Media, publisher of Atlantic Monthly and other publications. Atlantic Media occupies 140,000 square feet, or nearly half of Watergate 600, under a long-term lease. Overall, the building is 97 percent leased. And there’s a twist in the transaction: A portion of the consideration to be received by the seller will consist of operating partnership (OP) units.” (Commercial Property Executive)
Huntington Commits $150M to Ohio Affordable Housing “Columbus-based Huntington Bank recently announced its intention to invest $150 million in affordable housing across Ohio between 2017 and 2018. This additional allocation brings the bank’s cumulative investment, in partnership with Ohio Capital Corp. for Housing, to $513 million over the past seven years. More than 15,000 low- and moderate-income Ohio residents benefited from these financings. Huntington will again serve as a funding resource by investing equity in affordable housing properties in exchange for federal tax credits issued by the Ohio Housing Finance Agency. Nearly 5,600 Ohio residents statewide will be assisted. The commitment will generate approximately 3,700 new or refurbished affordable housing units and is anticipated to support 2,800 construction jobs.” (MultiHousing News)
Irving breaks ground on convention center hotel as entertainment district takes shape “One of the final pieces in a long-term plan for an Irving entertainment district will be set in motion Monday with the groundbreaking for a convention center hotel. The Westin Irving Convention Center Las Colinas hotel, at 400 W. Las Colinas Blvd., will hold 350 guest rooms. It represents the “crowning piece in Irving’s vision for a distinctive, pedestrian-friendly visitors district,” the city said. The hotel, which is expected to open in late 2018 or early 2019, will be adjacent to the 17-acre Irving Music Factory. That complex, with 200,000 square feet of restaurant and retail space and a 7,000 seat Live Nation amphitheater, is set to open this fall.” (Dallas Morning News)