Real Estate Daily News Buzz September 24, 2015

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.

Wednesday, the Dow Jones industrial average lost 50.58 points, or 0.3%, to 16,279.89. The Standard & Poor’s 500 index fell 3.98 points, or 0.2%, to finish at 1,938.76. The NASDAQ composite fell 3.98 points, or 0.1%, to 4,752.74.

U.S. crude fell $1.88 to close at $44.48 a barrel in New York. Brent Crude, a benchmark for international oils used by many U.S. refineries, fell $1.33 to close at $47.75 in London. Wholesale gasoline fell 3.5 cents to close at $1.382 a gallon. Heating oil fell 2.6 cents to close at $1.506 a gallon. Natural gas was little changed at $2.569 per 1,000 cubic feet.

U.S. Multifamily, Commercial Debt Hits $1 Trillion in Q2 “According to the Mortgage Bankers Association, the level of commercial-multifamily mortgage debt outstanding in the U.S. increased by $38.5 billion in the second quarter of 2015, as three of the four major investor groups increased their holdings. That is a 1.4 percent increase over the first quarter of 2015.” (World Property Journal)

Major Commercial Real Estate Firm to Open Brooklyn Leasing Office “Newmark Grubb Knight Frank will become the city’s first large commercial real estate services company to open an office in Brooklyn dedicated to leasing offices to the growing number of businesses moving to the borough.” (Crain’s New York Business)

A Suite Spot for Hotel Investors “Hotel investors are pouring money into their top floors to boost their bottom line. Their bet: That high-margin luxury and penthouse suites will lure more global travelers willing to pay top dollar for palatial accommodations.” (Wall Street Journal)

Grocery Chain Smart & Final Looks to Expand in Competitive Market “Smart & Final, a California-based grocery and foodservice chain, Tuesday announced plans to open 100 new stores in the highly competitive grocery space. The announcement came as Smart & Final marked its one-year anniversary as a public company at the New York Stock Exchange. Dubbed ‘Project 100,’ Smart & Final’s expansion will take place over the next four years in the Western U.S. The company’s CEO isn’t worried about the competition.” (The Street)

The Millionaires’ REITs That Pay Monthly Portfolio “In case you didn’t know, I have been down that road before. That is, Millionaire Road. That’s right. In a prior life, I was a real estate developer and I built shopping centers and freestanding net lease properties across the southeastern US. Success was not overnight and it took me years for the powers of compounding to kick-in and for my total assets to exceed liabilities by a few multiples over.” (Seeking Alpha)

Chase Mortgage CEO Red Flags FHA Loans “JPMorgan Chase may be the second-largest mortgage lender in the nation, but when it comes to government-backed, low down-payment Federal Housing Administration loans, it’s not even in the top 100. Onerous regulations and the constant threat of litigation have all but stalled originations of these loans, which were originally designed to help first-time homebuyers with lower credit scores and less cash.” (CNBC)

In Hot Year for Chicago Office Sales, Two More Towers to Sell for $315 Million-Plus “A banner year for downtown office building sales is continuing with two more deals expected to top $315 million, including one involving a buyer from South Korea.” (Crain’s Chicago Business)

How to Play and Invest in Real Estate “Video: Land & Buildings Investment Management Chief Investment Officer Jonathan Litt discusses his investment ideas for real estate. He speaks on ‘Bloomberg Markets.’” (Bloomberg)

California Firm Gives Rundown Properties New Life “Apartment buildings are a red-hot asset for small investors. But apartment buildings that house feuding gang members? One property manager, Long Beach, Calif.-based Beach Front Properties LCC, is finding success in turning around such downtrodden dwellings.” (Wall Street Journal)

CBRE Global Makes History in DFW “CBRE Strategic Partners U.S. Value 7 has acquired Galleria Towers, an iconic 1.4-million-square-foot, three-building Class A office complex in Dallas, from Cannon Commercial.” (Commercial Property Executive)