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 S&P 500 index added 0.75 points to 2,415.82. The Dow Jones industrial average dipped 2.67 points to 21,080.28. The Nasdaq composite rose 4.94 points, or 0.1 percent, to 6,210.19. Stock markets were closed Monday in observance of Memorial Day.
Benchmark U.S. crude rose 90 cents, or 1.8 percent, to $49.80 a barrel in New York. Brent crude, the international standard, added 69 cents, or 1.3 percent, to $52.15 a barrel in London. Wholesale gasoline added 3 cents to $1.64 a gallon. Heating oil gained 1 cent to $1.56 a gallon. Natural gas rose 5 cents to $3.24 per 1,000 cubic feet.
More records, barely, as stocks rise for 7th day — U.S. stocks finish a bit higher and mark new records with their seventh gain in a row. Consumer-focused companies rise while health care companies slip. The price of oil is recovers following its latest plunge.
Rio Nuevo Board Meetings Time Change – The Rio Nuevo Board will be meeting Tuesday, May 30th start time is 2:00 P.M. at Arizona State Building, 400 W Congress, Suite 222, Tucson, AZ 85701 Click Here to View the Agenda
Interchange to be named for former Mayor Walkup – The new, award-winning Kino Parkway/22nd Street Grade-Separated Intersection will be named the “Robert E. Walkup Interchange at Kino Parkway and 22nd Street.” Walkup served as Tucson’s mayor from 1999 to 2011. Among his achievements, Walkup led the effort to create the voter-approved 2006 Regional Transportation Authority (RTA). The RTA provides $2.1 billion in vital transportation and transit improvements, including the Sun Link streetcar system and the new grade-separated interchange, which was awarded the State and Southern Arizona 2016 American Public Works Association Project of the Year. A dedication ceremony will be held on June 1 at 10 a.m, under the Kino/22nd Interchange. To RSVP for the event contact firstname.lastname@example.org or call 837-6100 by May 31.
HOMEBUYER EXPO in Tucson This week – Tucson Mayor Jonathan Rothschild and Tucson Medical Center (TMC) are hosting a Homebuyer Expo next Wednesday, May 31, 10 a.m.-2 p.m., in TMC’s Marshall Auditorium (5301 E. Grant Road). There will be information on down payment assistance programs, obtaining a mortgage, and improving your credit score. For more information, follow the link below, or contact Jaimie Galayda at Jaimie.Galayda@tucsonaz.gov or 520-791-4201.
US growth in Jan.-March upgraded to still-slow 1.2 pct. Rate — The gross domestic product — the broadest gauge of the economy — grew in the January-March quarter at a 1.2 percent annual rate, the government estimated Friday. That was better than an initial estimate of a 0.7 percent rate. “The U.S. economy slowed less than initially thought in the first quarter, but there are signs it could struggle to rebound sharply in the second quarter amid slowing business investment and moderate consumer spending. Gross domestic product increased at a 1.2 percent annual rate instead of the 0.7 percent pace reported last month, the Commerce Department said on Friday in its second GDP estimate for the first three months of the year. “The second estimate paints a better picture about the degree of slowing in activity at the start of the year, but the main concern about soft growth in private consumption remains,” said Michael Gapen, chief economist at Barclays in New York…Penalties imposed by the government on the U.S. subsidiaries of Credit Suisse and Deutsche Bank related to the sale of mortgage-backed securities reduced financial corporate profits by $5.6 billion in the first quarter.” (Reuters)
G7 leaders pressure tech firms on removing terror propaganda — Leaders of the Group of Seven wealthy democracies are putting pressure on internet companies and social media sites to do more to stop the spread of “hateful ideology,” appealing to their sense of social responsibility to more swiftly identify and remove terror propaganda. The measure, signed by the seven leaders including President Donald Trump, was a sign of solidarity with Britain following the attack on Manchester that killed 22 outside a pop music concert.
BlackRock to Pay Related and Oxford $1.25B in Move to Hudson Yards “Global investment management firm BlackRock will pay landlords Related Companies and Oxford Property Group a base rent of $1.25 billion over 20 years for its lease at 50 Hudson Yards, according to the equity giant’s public filings today. BlackRock “entered into an agreement” yesterday to lease 847,000 square feet at the building, which will be located at the intersection of 10th Avenue and West 33rd Street, with the lease expected to begin on May 1, 2023, the filings indicate. BlackRock is moving from 55 East 52nd Street between Park and Madison Avenues. In the deal, BlackRock will pay a rent of $50.8 million annually for the first five years. The rent will increase every five years to $58.4 million, then $66.1 million and then $73.7 million. BlackRock will also foot the bills for operating expenses and property taxes.” (Commercial Observer)
State Farm sells another of its towers to investor Transwestern “One of the same investors that bought State Farm Insurance’s huge high-rise campus in Richardson is buying another new State Farm building in Atlanta. Transwestern Investment Group said that one of its property arms has an agreement to purchase the 13-story Park Center I building in suburban Atlanta which is leased to State Farm. State Farm will continue to occupy the 602,000-square-foot building which is the first phase of the three-tower development.” (Dallas News)
$1 billion, 6-year Union Station revamp will include food hall, hotel, residential towers “The crowning of Chicago firm Riverside Investment & Development as the leader of a massive Union Station redevelopment answered two key questions: Who won? And what will they build? Amtrak President and CEO Wick Moorman, Mayor Rahm Emanuel and other officials announced Thursday the selection of Riverside and its $1 billion-plus project that is expected to include up to 2 million square feet of office space, 780 apartments and 350 hotel rooms. The biggest unknown is whether the development team led by John O’Donnell’s firm can pull off a 3.1 million-square-foot project, after previous plans by other developers stalled. The last such proposal, in which the American Medical Association a decade ago planned to move into an 18-story office and hotel tower that would be built atop the train station, was felled by a recession.” (Chicago Tribune)
Amazon’s New Bookstore in New York City Is More of a Showpiece Than Anything Else “The irony of Amazon making a push into the brick-and-mortar space with its newest bookstore opening in New York on Thursday is strong considering its convenient online bookstore is a large reason why Borders shuttered its doors in 2011. The newest addition to Amazon Books opened at Columbus Circle on the edge of Central Park and is the company’s seventh bookstore. Existing Amazon Books locations include Chicago; Dedham, Mass.; Lynnfield, Mass.; Portland, Ore.; San Diego; and Seattle. In addition, Amazon already has six more locations planned for 2017: on 34th St. in New York; Bellevue, Wash.; Los Angeles; Paramus, N.J.; San Jose, Calif.; and Walnut Creek, Calif. The store is about 4,000 square feet and is unique mainly because it’s an updated, high-tech version of a bookstore. All of the books in the store are turned face-out so it’s easy for customers to look at the covers. More importantly, each book title has a card under it that shows the book’s rating on Amazon.com and features a written review from a customer that the store pulls from Amazon.com. But these cards are almost superfluous considering Amazon Books only sells books that are Amazon.com bestsellers or that are rated 4 stars and above on its website.” (The Street)
Assisted Living Provider Bets Big on Small Homes “At a time when some providers are rushing to open sprawling and luxurious senior living communities, one Texas-based owner-operator is thinking small. Dallas-based Mustang Creek Estates specializes in building affordable campuses comprised of six or seven individual homes that accommodate 10-16 residents apiece. Though the communities are smaller and more homey than a typical private-pay community, they still offer 24-hour assisted living and memory care services and a full range of amenities and activities. And it is offering this at a steep discount to standard assisted living rates in its markets, the company says. The company is founded on the principle that senior living should be high-quality, affordable and home-like, Renee Ramsey, co-founder and CEO of Mustang Creek Estates, tells Senior Housing News. ‘We like to think that our business model is unique from the top to the bottom,’ Ramsey says. ‘We try to be open-minded and think about things in different ways.’” (Senior Housing News)
Who’s Paying the Highest Property Taxes in the US “Property owners in the U.S. shell out substantial–sometimes huge–amounts of cash on property taxes every year, and those taxes only increase as a building changes hands at a higher price and becomes more appealing to investors. The fact that the top taxpaying buildings in the U.S. are located in Manhattan won’t necessarily come as a shock, either, but the difference in numbers might.” (MultiHousing News)
Downtown Long Beach development includes apartments, offices, and student housing “Downtown Long Beach has become a hotbed of development lately, and a large new project at the site of a long-shuttered bookstore is only adding to the mix. As Longbeachize reports, the new development on Long Beach Boulevard between Third Street and Broadway is set to include a 21-story residential tower and a separate seven-story structure with apartments and a performing arts venue for California State University Long Beach. Called Broadway Block, the project is being developed by a partnership between Long Beach firms Ratkovich Properties and Urbana Development, as well as Irvine-based Owl Companies.” (Los Angeles Curbed)
Monday Properties Closes $888M NoVa Refi “The Washington, D.C., metro area’s “Twin Towers”—1000 Wilson Blvd. and 1100 Wilson Blvd.—are part of Monday Properties’ $888 million refinancing of a nine-building, 2.6 million-square-foot portfolio. All assets are located in Rosslyn, Va. Other buildings in the portfolio owned by Monday Properties include 1401 Wilson Blvd., 1200 Wilson Blvd., 1101 Wilson Blvd., 1501 Wilson Blvd., 1515 Wilson Blvd., and 1812 North Moore. In early February, Nestle USA announced it was moving its U.S. headquarters from Glendale, Calif. to 1812 North Moore and bringing 750 jobs to the region.” (Commercial Property Executive)
Austin REIT pays $83M for Courtyard Fort Lauderdale Beach “Another beachfront property in Fort Lauderdale just traded in a multimillion-dollar deal. Austin, Texas-based real estate investment trust Summit Hotel Properties paid $82.87 million for the Courtyard Fort Lauderdale Beach by Marriott, property records show. San Francisco, California-based Fillmore Capital Partners is the seller. The 261-key, 12-story hotel, at 440 Seabreeze Boulevard, sold for nearly $318,000 per room. Milton B. Patipa, senior vice president of Finance at Fillmore Capital Partners, signed the deed transfer of ownership. Records show the private investment firm paid $34.89 million, or about $134,000 per room, for the hotel in 2005. FCP just sold the hotel for more than double what it paid 12 years ago.” (The Real Deal Miami)