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.
The Standard & Poor’s 500 index slid 43.64 points, or 1.8 percent, to 2,357.03. The Dow Jones industrial average fell 372.82 points, or 1.8 percent, to 20,606.93. The Nasdaq composite gave up 158.63, or 2.6 percent, to 6,011.24.
Benchmark U.S. crude rose 41 cents, or 0.8 percent, to close at $49.07 per barrel in New York. Brent crude, used to price international oils, gained 56 cents, or 1.1 percent, to close at $52.21 per barrel in London. In other futures trading, natural gas fell 4 cents to $3.19 per 1,000 cubic feet. Wholesale gasoline was little changed at $1.60 per gallon. Heating oil rose 2 cents to $1.53 per gallon.
Stocks, bond yields drop Washington turmoil rattles markets — Stocks drop as financial markets are rattled by the latest turbulence in Washington and fears that it could stymie Trump’s efforts to enact tax reform and other business-friendly policies. Small-company stocks, which would see outsized benefits from corporate tax cuts, fell much more than the rest of the market. Bond prices soared, sending yields lower, and gold prices rose as investors shifted money out of riskier assets. The dollar fell against other currencies.
TUCSON VOTERS APPROVE SALES TAX FOR PUBLIC SAFETY AND ROADS – Voters in the City of Tucson yesterday overwhelmingly approved a new, five-year, half-cent sales tax to fund public safety capital needs and road repairs. Unofficial results show 41,260 voters approved the plan, while 25,413 did not. Participation in the mail-in election was about 26 percent. Proposition 101 is predicted to raise $250 million over five years, with $150 million being used for public safety needs and the remaining $100 million used to fund road repairs. The average cost per Tucson resident is estimated to be approximately $3 per month. The half-cent sales tax will go into effect July 1.
As self-driving cars hit the road, real estate development may take new direction “The futuristic vision offered by automated vehicles—the freedom to be active during your commute instead of wasting away behind the wheel while stuck in traffic—isn’t quite as utopian a scenario when you run it past cautious and concerned city planners. Ask Don Elliott, a zoning consultant and director at Clarion Associates in Denver, and he’ll tell you the idea of empty cars congesting city streets and mobile offices zipping around main roads can become downright dystopian. “I’ve seen the blood run out of people’s faces,” he says when talking about the impact of automated vehicles on transportation, land use, and real estate. “For years, planners have been fighting for a 1 or 2 percent change in transportation mode [getting more people to use transit or bike instead of drive]. With this technology, everything goes out the window. It’s a nightmare.” The much-hyped transition to autonomous cars, while still years, or even decades, away, according to experts, is an opportunity and challenge that has wide potential to reshape our transportation systems.” (Curbed)
The Next Wave in Multifamily: Middle-Market Assets “Multifamily is holding on to its title as the most durable and attractive asset type in the industry, though construction and rent growth are expected to dampen even further. Jay Rollins, managing principal & co-founder of JCR Capital, talked to Multi-Housing News about the next stage in the cycle: the winners, the losers and the most attractive investment opportunities.” (MultiHousing News)
Real-Estate Empire Survives Brutal Family Battle “A prominent New York real-estate family that controls a multibillion-dollar empire of office, residential and retail properties has settled a bitter internal battle after more than eight years of fighting and tens of millions of dollars in legal costs, according to legal documents and people familiar with the matter.” (The Wall Street Journal, subscription required)
Caves Valley, Greenberg Gibbons Team Up in Maryland “Towson Row, a $350 million mixed-use development in Towson, Md.’s downtown commercial district that had been stalled for more than a year, will move forward with a new joint venture that brings Greenberg Gibbons on as co-developer with Caves Valley Partners. The two local development firms said they will collaborate on the 1.2 million-square-foot project with Greenberg Gibbons spearheading the retail, residential, student housing and hotel components while CVP takes the lead on the office space. Located on 5 acres, Towson Row will include more than 100,000 square feet of retail, grocery and restaurant uses; 150,000 square feet of Class A office space; 250 luxury high-rise residential units; 300 high-rise student housing units and a hotel.” (Commercial Property Executive)
What’s surprising about Henderson Land’s bid [VIDEO] “The $3 billion price tag paid by Henderson Land the notable absence of mainland developers was surprising, says Denis Ma, JLL.” (CNBC)
Howard Milstein wants to reimagine the office building “Howard Milstein is no longer thinking about tearing down 335 Madison Ave. but will pour $100 million into a renovation by SHoP Architects. Son Michael Milstein’s tech hub, Grand Central Tech, is doing so well it is also expanding from 100,000 square feet to 250,0000 square feet. The hub nurtures certain startups with free incubator space while its Urban Tech Hub tenants get below market rents. The 1.1 million square-foot office tower backs onto Vanderbilt Ave. and is connected to Grand Central Terminal. The generally 40,000 square foot floors surround a dramatic glass atrium. Renovations include enlarging and creating a new entrance lobby and modernizing the lower façade. They will also add an astounding 150,000 square feet of retail and amenities geared toward the tenants.” (New York Post)
Silvershore now trying to sell 57 buildings “An even larger chunk of Silvershore Properties’ New York City real estate holdings is up for grabs. The NoMad-based landlord had been looking to sell 44 of its nearly 100 rental buildings across the city in March. The firm has now added more properties to the portfolio, bringing the total to 57 buildings spanning 430,615 square feet, according to Cushman & Wakefield, which officially launched the marketing effort this week. The portfolio, which contains more than 400 rental apartments and more than two-dozen retail units, is entirely in Brooklyn except for one building in Long Island City. The low-rise, rent-stabilized apartment buildings are largely concentrated in Bushwick and Bedford-Stuyvesant, but also scattered throughout Crown Heights, Sunset Park, Park Slope and Prospect Heights. At 57 buildings, the “Brooklyn legacy” multifamily portfolio is one of the largest on the market in recent years. There is no official asking price, but sources said the seller believes it could fetch between $230 million and $250 million.” (The Real Deal)
Bal Harbour Shops expansion approved after decade in the works “The expansion of the Bal Harbour Shops, a much-revised plan that had been in the works for more than a decade, won final approval from the Village Council late Tuesday, setting in motion a massive construction project that is expected to take eight years. The 4-1 vote in favor of the expansion was not a surprise. The council gave preliminary approval to the zoning changes and a development agreement on April 26 on the same 4-1 vote, with councilwoman Patricia Cohen casting the lone opposing vote both times. ‘This vote was why I joined the council,’ said Mayor Gabriel Groisman, who was elected in 2014. ‘I knew it was an important decision I needed to be a part of. What’s best for Bal Harbour is what’s best for me, and if it’s good for the shops then it’s good for us. Now we have to pray we made the right decision and that it gets implemented in the right way.’” (Miami Herald)
Frisco approves plans for first high-rise, a new 17-story condo tower at Cowboys’ The Star “Frisco’s city council has given preliminary approval for the construction of a luxury high-rise condo tower at the Dallas Cowboys’ Star mixed-use project. The planned tower would be the first residential building in the 100-acre development at the northwest corner of the Dallas North Tollway and Warren Parkway. It would also be the first such high-rise in Frisco. The developers must still submit detailed plans to the city before they get final approvals to build the tower.” (Dallas Morning News)
Massachusetts mall 100% leased for first time in 30 years “Leasing agent Dan Waldman clearly hasn’t read all the news reports about the demise of the American mall. In 2015, when Waldman took over leasing for the Walpole Mall in Walpole, Massachusetts, 80,000 of the property’s 400,000 sq. ft. lay vacant. This week, his Waldman & Associates announced that the mall was 100% leased for the first time in 30 years. The tenant mix is comprised of 14 big box tenants such as Old Navy, PetSmart, and Barnes & Noble, 14 interior tenants that include GNC and Keystone Jewelry, and 13 pad tenants like Panera Bread, Five Guys, and Aspen Dental.” (Chain Store Age)