Commercial Real Estate
*Billionaires including Mexico's Carlos Slim, Quicken Loans founder Dan Gilbertand Hong Kong media tycoon Jimmy Lai are part of a wave of real estatespeculators trying to cash in on Detroit's "suburban plight," London'sFinancial Times reported.The players have been buying up property in Detroit for low prices since thecity's bankruptcy in 2013, in hopes of profitable sell-offs after renovationsand a price recovery.
*Meanwhile, Real Capital Analytics estimates that Chinese investments in U.S.real estate could reach up to $21 billion in 2016 if the current investmentpace persists, according to a reportfrom The Real Deal.
*Hedge fund manager John Khoury touted HyattHotels Corp. at the Sohn Investment Conference in New York,Bloomberg News reported.Khoury, of Long Pond Capital LP, said the hotel group's shares had more than60% of upside. He reportedly said that part of the reason for his bullishstance is because he does not believe that industry disrupter Airbnb will domuch damage to the sector's revenue stream from business travelers and high-endclients.
*Thor Equities is mulling a sale of its headquarters building at 25-33 W. 39thSt., in Manhattan, N.Y.'s Garment District, TheReal Deal reported,citing unnamed sources. The 208,000-square-foot property is expected to go formore than $200 million, the sources said.
Thorand its affiliates occupy around 45,000 square feet in the building and do notplan to vacate, the report said, citing the sources.
Theproject, subject to rezoning, comprises 400,000 square feet of commercialspace, up to one million square feet of market-rate residential development and300,000 square feet of affordable and senior housing, the report said.
* A$90 million residential project in Cincinnati got zoning approval from citycouncil, the Cincinnati Business Courier reported.The 352-unit, 25-story project won an exception to the city's heightrestrictions.
*Clothing retailer Aéropostale Inc. filedfor bankruptcy protection, and will be closing 113 stores in the U.S. and allof its 41 Canadian stores.
After the bell
*Starwood Hotels & ResortsWorldwide Inc. is in advanced negotiations to sell its St. Regis hotels in SanFrancisco and New York to the Qatar Investment Authority, Bloomberg Newsreported, citing people familiar with the talks. The assets may sell for lessthan their potential value of up to $1 billion, the unnamed sources told thenews outlet.
*PulteGroup Inc.shareholders electedeach of the company's 10 director nominees to new one-year terms at its annualshareholder meeting May 4.
Each nominee received the support of more than 83% of theshares voted. Adjusting for the shares owned by company founder William Pulte,who had said he would vote against all directors, each director received morethan 93% of shares voted, the company said.
*Agree Realty Corp.kicked off an underwritten public offeringof 2,250,000 shares of its common stock, and expects to grant the underwritersa 30-day option to acquire up to an additional 337,500 shares of common stock.The offering represents gross proceeds of $107.3 million, including theoverallotment option, based on the May 4 closing price of Agree's common stock.
*Federal Realty Investment Truston May 4 reported year-over-year FFO growthin the first quarter and affirmed its full-year 2016 guidance. First-quarterFFO available for common shareholders totaled $97.6 million, or $1.38 pershare, up 9.5% on a per-share basis from $87.3 million, or $1.26 per share, inthe year-ago quarter.
*Equinix Inc. reporteda roughly 5% declinein first-quarter AFFO year over year, due in part to acquisition costs.
*Kimco Realty Corp.priced an additional$150 million aggregate principal amount of its 4.25% notes due 2045 with aneffective yield of 4.375% maturing April 1, 2045.
*Regency Centers Corp.'sexposure to Sports Authority and Eastern Mountain Sports is likely to affectthe company's same-property NOI in the near term, executives during an earnings call.
*Moody's raised its corporate family rating on to Ba3from B1 after the company's saleof most of its real estate assets to Gamingand Leisure Properties Inc.
*Malaysia-based Genting Group's $4 billion Resorts World Las Vegas project is slated to begin inthe fourth quarter and completion is expected in 2019, according to a VegasInc.report.The former Echelonproject in Las Vegas was sold by BoydGaming Corp. in 2013, as reportedpreviously.
* The Sydney Morning Herald reportedthat Crown Resorts has partially sold its stake in Macau-focused Melco CrownEntertainment for $800 million. Crown Resorts also lost a seat in Melco'sboard, with James Packerstepping down as Melco's co-chair to assume the role of deputy chair of Melco,the report said.
The day ahead
Early morning futures indicators pointed to a higher openingfor the U.S. market.
In Asia, the Hang Seng fell 0.37% to 20,449.82, while theNikkei 225 was down 3.11% to 16,147.38. In Europe, as of midday, the FTSE 100was up 0.07% to 6,116.36, and the Euronext 100 rose 0.39% to 853.08.
On the macro front
The jobless claims report, the EIA natural gas report, theFed balance sheet and the money supply report are due out today.
:The May 4 North American property news roundup also features Agellan Commercial'ssale of a Quebec property for C$9.2 million.
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