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.
Friday, the Dow Jones industrial average sank 185.18 points, or 1.1 per cent, to 17,535.32. The Standard & Poor’s 500 index slid 17.50 points, or 0.9 per cent, to 2,046.61. The NASDAQ composite index retreated 19.65 points, or 0.4 per cent, to 4,717.68.
Benchmark U.S. oil fell 49 cents, or 1 per cent, to $46.21 a barrel in New York, while Brent crude, the benchmark for international oil prices, lost 2 cents to $47.83 a barrel in London. In other energy trading, wholesale gasoline inched up to $1.59 a gallon. Heating oil rose 1 cent to $1.40 a gallon. Natural gas lost 6 cents, or 2.7 per cent, to $2.10 per 1,000 cubic feet.
Retail slump won't hurt these REITs: Pro “While retail's slump has some investors concerned about the future of malls, one investment pro thinks fears of shopping centers' demise is premature — at least for the good-quality ones. ‘There are malls which are in trouble. There are shopping centers, there are offices, and this has been going on for hundreds of years,’ said Marc Halle, head of global real estate securities at Prudential Real Estate Investors and senior portfolio manager of the Prudential Global Real Estate Fund. ‘Good properties, well located, well managed, will continue to do well.’” (CNBC)
Whole Foods’ Scaled-Down 365 Store Has Robots, but No Tattoo Parlor “There’s a lot riding on a robot — the teaBot, to be exact — but not for the Canadian start-up behind the machine. Rather, it is 365, the much anticipated new grocery concept from Whole Foods Markets, that is banking on the robotic kiosk and a host of other bells and whistles to reverse the company’s waning fortunes. The first store, here in Silver Lake, a neighborhood in the East Side of Los Angeles, opens in two weeks. On Wednesday, Jeff Turnas, the president of 365, gave a tour of the store, which feels like a sort of foodie playroom.” (The New York Times)
Retailers ringing the recession alarm “Even industry executives can't figure out what's wrong with retail. After posting their steepest quarterly same-store sales declines since the recession, management at both Kohl's and Macy's said they were scratching their heads over the disconnect between the improving economy, and a pullback in traffic and spending at their stores in the first quarter.” (CNBC)
Where the Middle Class Is Shrinking “The percentage of families earning middle-class incomes fell in nearly nine out of 10 major metro areas across the country between 2000 and 2014, according to new research by the Pew Research Center. The study defined middle-class households as those making between two-thirds and twice the national median income. That was roughly $42,000 to $125,000 a year for a family of three in 2014, though adjustments were also made for the cost of living in different areas. Here we take a look at the 100 metro areas with the sharpest decline in the percentage of people in the middle class.” (The New York Times)
Unleashing the Power of the Real Estate Investor’s Team “I choose a different container when it comes to the big picture of my real estate investment business when it comes to management, marketing and sales. Call it my real estate investing “briefcase.” When I open my briefcase, I want to find all of the resources I need to operate my business. Even more, I want to find what I need to supercharge the referrals that are the best source of business, no matter which investing niche I’m working in.” (The Huffington Post)
Hines shopping $5.5B real estate portfolio: report “Houston-based megadeveloper Hines is reportedly looking to unload the 43 properties held by its Hines Global REIT division. The firm has hired financial services firm Lazard to advise on the potential sale of the portfolio, which is valued at $5.5 billion, Bloomberg reported, citing a source familiar with Hines’ planning. About 62 percent of the properties owned by Hines Global REIT, a non-publically-traded real estate investment trust, are located throughout the United States. About 15 percent are in U.K., with the rest located in Australia, Germany, Poland, France and Russia.” (The Real Deal)
Red Rock Resorts Bets on Palms Casino Resort in Las Vegas “Calling it a ‘hybrid gaming property’ that attracts both tourists and locals in Las Vegas, Red Rock Resorts Inc., the parent company of Station Casinos LLC, is betting on the Palms Casino Resort with a $312.5 million cash deal. Red Rock Resorts, which recently completed a $531.4 million IPO, said its subsidiary Station Casinos had reached a definitive agreement to acquire the Palms from private equity firms TPG Capital and Leonard Green & Partners. The investment firms each owned 49 percent stakes along with the 2 percent owned by George Maloof, who opened the casino resort in November 2001. The firms became majority owners in 2011 amid efforts by the Palms ownership to restructure millions in debt.” (Commercial Property Executive)
Old Main Post Office sold in deal with 601W “The Old Main Post Office may finally be ready to deliver. Late tonight, the mayor's office announced that a deal had been finalized with 601W to redevelop the long-vacant, hulking site that straddles the Eisenhower Expressway on Chicago's front door to the west. Mayor Rahm Emanuel, in a statement, touted what is projected to be a $500 million project with the promise of 1,500 jobs. ‘Today we are taking another significant step toward transforming the Old Main Post Office site into an economic driver for the city of Chicago,’ Emanuel said.” (Crain’s Chicago Business)
Deal falls through—again—for long-vacant city of Seattle property “It’s one hole the city of Seattle hasn’t been able to fill. Although construction cranes sprout around its prime location, the full block just west of City Hall will remain undeveloped for the foreseeable future. Mayor Ed Murray announced Thursday that the latest development deal for the property fell through. ‘Unfortunately, no parties have been willing to commit capital to finance the project,’ Murray said in a statement. The mayor said it was time to explore other options. For 11 years the plan has called for selling the parcel, site of the city’s Public Safety Building until its 2005 demolition. In exchange, a developer would create office, residential and retail space, plus a public plaza on the site bounded by Third and Fourth avenues and James and Cherry streets.” (The Seattle Times)
Co-living comes to Miami; Roam opens at historic River Inn “Part of a growing trend around the world, the first “co-living” concept has arrived in Miami. Roam openend its first U.S. location at the historic River Inn Miami this month. Like other startup companies beginning to offer co-living, an offshoot of the popular co-working concept, Roam targets creatives, working professionals and business travelers who want an instant community and don’t want to be tied down with longterm leases or mortgages. River Inn Miami in Little Havana is home to a cluster of wood-frame vernacular houses. Developer Avra Jain’s Vagabond Group purchased the inn a year ago for $8.5 million and restored it to maintain its vintage charm with its original windows, polished Dade County Pine floors and refurbished antique furniture...Roam Miami offers 38 furnished bedrooms with bathrooms within the houses.” (Miami Herald)