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Newport News reveals plans for $400M Navy housing project


SUMMARY:

  • and the plan to build 750 sailor units and 10,000 square feet of downtown
  • Construction is expected to begin next year
  • An investment of up to $400 million from the Navy and a $40 million state treasury loan are helping the project

Aided by a commitment from the to invest as much as $400 million, Newport News plans to begin work next year on two downtown apartment towers that will provide for sailors and 10,000 square feet of retail space.

Florence Kingston, the city’s director of development, briefed Newport News City Council on Tuesday on plans for the project, which calls for the construction of 750 for sailors. The development involves replacing various buildings, including the Huntington Hall site, owned by Newport News Shipbuilding, and the city-owned Julius Conn Gym.

The 930,000-square-foot-plus project, to be built in two phases, will be located between Huntington Avenue and Warwick Boulevard, and on 32nd and 29th streets. The project’s first phase involves a 555-unit apartment complex featuring two 17-story towers. The phase also includes the construction of 6,090 square feet of retail space and a four-story garage with 1,050 spaces.

The second phase will include the remaining 195 apartments plus 4,000 additional square feet of retail and a 30,000-square-foot building for Navy programming.

“I think this is just the first of many steps for a very bright economic opportunity for our traditional downtown,” said Newport News City Manager Alan Archer.

The Navy is partnering with Hunt Military Communities to develop the project. The city is “prepped to move this project quickly,” Kingston said, with construction expected to begin in spring or summer 2026. Details on when the project would be completed were not provided, and the city and the Navy did not immediately return requests for comment.

“This is a major milestone for the ongoing partnership and collaboration with the Navy [for] sailor quality of service, and will be a boon for our existing revitalization work downtown that continues to gain momentum,” Kingston said.

An early site plan for the Navy-backed housing and retail development planned for downtown Newport News. Image courtesy City of Newport News.

Following a series of suicides among -based sailors and an investigation that concluded the Navy failed its personnel, the Navy in 2023 launched an effort to improve sailors’ quality of life, including expanding access to off-base housing.

Archer said that while the Navy has advanced efforts nationwide to enhance sailors’ quality of life, “special attention” has been given to Newport News. He stated that the Navy is investing between $350 million and $400 million in the project.

Kingston noted, however, that the Navy funding will only cover the housing component of the project. She said additional investments will be forthcoming for other aspects of the project, such as parking.

Newport News has received a $40 million treasury loan from the state to help finance the project. However, Mayor Phillip Jones stated during the meeting that he intends to request that the either forgive the loan or convert it to a capital expenditure.

“This has been, I think, perhaps, the best thing that we’ve done in a long time,” Jones said of the project. “This going to completely change the skyline of downtown Newport News. To use an term, this is going to be an anchor that draws and pulls everyone into downtown.”

The council on Tuesday also unanimously voted to appropriate $5.5 million to support downtown initiatives, including the Navy housing project.

Temporary Norfolk casino to open in November

The temporary predecessor to the $750 million is expected to open in November, its developers announced Thursday.

The developers, and the Pamunkey Indian Tribe, also announced the name of the temporary facility: The Interim Hall.

Located beside the permanent resort site, The Interim will have more than 130 slot machines on a single-level gaming floor and some food and beverages. Its initial hours will be from 10 a.m. to 2 a.m. daily.

“The is a perfect brand for our temporary casino — a sneak peek of the exciting gaming experience and memorable guest service we plan to offer the entire community,” said Ron Bailey, vice president and general manager of the casino, in a statement. “Having said this, our focus remains on delivering on our vision of a best-in-market gaming entertainment destination.”

Boyd and the expect to open the permanent , which is currently nameless, in late 2027. Expected to create 850 jobs, the resort will have a 65,000-square-foot casino, a 200-room hotel, eight food and beverage outlets, and a 45,000-square-foot outdoor deck. It will also include 1,500 slot machines and 50 table games, as well as 13,000 square feet of meeting space and 4,000 square feet of spa and gym space. The operators expect to announce its brand next year, according to a news release.

Construction began in February on the long-awaited casino. The resort casino was approved by Norfolk voters in fall 2020, but construction was delayed due to conflicts over design plans between Norfolk City Council and the developers. An earlier partnership between the Pamunkey tribe and Tennessee investor Jon Yarbrough ended last year, and Boyd Gaming entered the picture. At that time, Boyd and the tribe scrapped the casino’s previously announced branding as the HeadWaters Resort & Casino.

In September 2024, Norfolk City Council approved the development agreement between the city, the tribe and Boyd, and since then, the project has moved forward.

Virginia Beach’s S.B. Ballard Construction and Mississippi-based Yates Construction — the companies that built Rivers Casino Portsmouth — are leading the resort’s construction.

Virginia has three operating in , Bristol and Portsmouth, and construction on the $1.4 billion Live! Casino & Hotel Virginia in Petersburg began in March.

$10M fulfillment center planned at ex-military tank museum

North Carolina digital company plans to invest more than $10 million to open a fulfillment and center in the former home of the AAF Tank Museum in , Virginia Gov. Glenn Youngkin announced Wednesday.

The company is expected to create 203 jobs at the 400,000-square-foot facility, which will also house MerryGoRound’s division. Positions will include videographers, graphic designers and live commerce hosts​ as well as logistics and operations roles in warehousing, freight and fulfillment​, according to a press release.

“MerryGoRound’s decision to establish operations in Pittsylvania County demonstrates how Virginia’s strategic location and skilled workforce make it an ideal hub for and logistics operations,” Youngkin said in a statement.

MerryGoRound’s live commerce division will facilitate online sales on social media platforms and live streaming marketplaces such as eBay Live, TikTok Shop and Live. The company works with sellers like Pfootballpete, whose eBay shop offers everything from figurines of Archie comic book characters to Pokémon cards, and Annaya F., who describes herself as a “seven-figure reseller” of name-brand clothing products.

Cabell Barrow, the attorney representing MerryGoRound, did not immediately respond to a request for comment.

“My client looks forward to working with the county, the county IDA and surrounding community members to create meaningful long-standing careers and repurpose the recently vacated AAF Tank Museum property,” Barrow said in a news release. “They look forward to sharing more details about the project during a ribbon-cutting event that will be scheduled in the near future.”

The AAF Tank Museum closed in 2023 after two decades of operation.

Virginia competed with and Puerto Rico for the MerryGoRound project. The Virginia Partnership worked with Pittsylvania County and the Southern Virginia Regional Alliance to seal the deal.

Youngkin approved a $350,000 grant from the Commonwealth’s Opportunity Fund to assist Pittsylvania with the facility. Additionally, the Virginia Tobacco Region Revitalization Commission approved a $145,500 grant for the project from the Tobacco Region Opportunity Fund. The company is also eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. The Virginia Talent Accelerator Program, created by VEDP, will support MerryGoRound’s job creation with recruitment and training services.

Days houses spend on market increases across Virginia

SUMMARY:

  • ‘s active listings in July surged 43.4% year-over-year
  • pending sales increased 10.5% from July 2024
  • Median prices rose in both markets compared to last year

Houses are spending longer on the market than during the same period last year in Northern Virginia, Hampton Roads and Central Virginia. However, median sales prices in all three regions have increased over 2024.

Northern Virginia

The reports that 1,612 units were sold in July — a 1.6% decrease over July 2024. Total sales volume was $1.41 billion, a 2.6% increase compared to this time last year.

The region saw an increase in inventory last month, as active listings jumped 43.4% year-over-year, reaching 2,530 properties on the market. Homes remained on the market an average of 20 days, a 25% increase over July 2024.

The median sold price rose 3.4% year-over-year to $760,073, growth which indicates “steady buyer interest,” according to NVAR.

Growing inventory and extended days on market suggest shifting dynamics in Northern Virginia’s market, the association stated.

July 2025 housing market statistics for Northern Virginia. Image Courtesy Northern Virginia Association of Realtors
July 2025 market statistics for Northern Virginia. Image Courtesy Northern Virginia Association of Realtors

“We’re seeing a market that is recalibrating,” NVAR CEO Ryan McLaughlin said in a press release. “Buyers are still active, and the market remains strong, but at a more measured intensity than in recent years.”

NVAR President Casey Menish, a real estate agent with Pearson Smith Realty, agreed.

“Buyers are approaching their decisions more carefully, and sellers are adjusting to longer timelines and increased competition,” she said in a press release. “We’re moving away from extremes, and that’s a healthy development for long-term market stability.”

NVAR reports activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church, and the towns of Vienna, Herndon and Clifton.

Hampton Roads

Hampton Roads saw improvements in settled and pending sales last month compared with the same period last year, according to data released Sunday by the (REIN).

July 2025 housing market data for Hampton Roads. Image Courtesy Real Estate Information Network
July 2025 data for Hampton Roads. Image Courtesy Real Estate Information Network

In July, there were 2,528 settled sales, up from 2,346 in July 2024. However, those numbers were down 13 sales from June. Pending sales were 2,457, a 10.5% increase over July 2024.  There were 2,468 pending sales in June.

have been holding steady, and active listings remain high, giving buyers more options,” REIN board President Barbara Wolcott of Berkshire Hathaway Home Services RW Towne Realty said in a press release.

July’s months supply of inventory (MSI) — a measure of how many months homes would stay on the market if no new inventory were added — was 2.74, up from 2.65 in June and up from 2.28 in July 2024.

The median sale price in July was $368,250, a drop from $375,000 in June, but up 3.44% from $356,000 in July 2024.

Homes spent a median of 22 days on the market in July, up from 18 days last month and in July 2024.

Founded in 1969, REIN is a regional multiple listing service that covers an area stretching from Williamsburg east to Virginia Beach and across the border.

Central Virginia

The Central Virginia Regional Multiple Listing Service splits its data between single family homes and condos and townhomes.

In Central Virginia, there were 1,291 closed sales for single family homes in July, up 3% from 1,254 in July 2024. For condo/townhomes, there were 286 sales, up 16.7% year-over- year.

Pending sales for single family homes increased 13.8% year-over-year from 1,107 in July 2024 to 1,260 in July 2025. For condo/townhomes, there were 275 pending sales in July, up 17% from 2024’s 235.

Single family homes spent an average of 23 days on the market in July, a 9.5% increase  from the 21 days on market the previous year. Meanwhile, condo/townhomes spent an average of 38 days on market, a 15.5% increase from the average of 33 days in the previous year.

The median sales price for single family homes last month rose to $435,000, up 4.4% from the $416,500 the previous year. The median price for condo/townhomes was $365,000, down 6.3% from last year.

Single family housing inventory in July also rose 2.6% from 2,142 in July 2024 to 2,198 in July of this year. Condo/townhome inventory was 672, a 35.5% increase from last year’s 496.

The CVR MLS includes data for Amelia, Charles City, Chesterfield, Colonial Heights, Dinwiddie, Goochland, Hanover, Henrico, Hopewell, King & Queen, King William, New Kent, Petersburg, Powhatan and Prince George counties and the city of Richmond.

Eidtor’s note: this story has been updated

Wall Street drifts around its records following a worldwide rally

SUMMARY:

 

NEW YORK (AP) — U.S. stocks are drifting around their record levels on Wednesday after a rally spurred by hopes for lower U.S. interest rates wrapped around the world.

The S&P 500 rose 0.2%, coming off its latest all-time high. The Industrial Average was up 412 points, or 0.9%, as of 2:47 p.m. Eastern time, while the Nasdaq composite rose 0.1% after setting its own record the day before.

Treasury yields eased in the bond market as expectations reached a virtual consensus that the Federal Reserve will cut its main interest rates for the first time this year at its next meeting in September. Lower rates can boost investment prices and the economy by making it cheaper for U.S. households and businesses to borrow to buy houses, cars or equipment, though they risk worsening inflation.

Stock indexes jumped in Asia in their first trading after Tuesday’s better-than-expected report on U.S. inflation triggered a jump in bets that a cut to interest rates is coming. Hong Kong’s Hang Seng leaped 2.6%, Japan’s Nikkei 225 rallied 1.3% and South Korea’s Kospi climbed 1.1%.

Indexes also rose in Europe, though the moves were more modest after they already had the chance to trade on the U.S. inflation data the afternoon before. Germany’s DAX returned 0.7%, and France’s CAC 40 rose 0.7%.

On , the hopes for lower interest rates are helping to drown out criticism that the U.S. has grown too expensive after its big leap since hitting a low in April.

One way companies can make their stock prices look less expensive is to deliver strong growth in profits, and Brinker International became the latest to report stronger results for the latest quarter than analysts expected. The company behind the Chili’s brand said it saw more customers coming to its restaurants, and it’s also making more profit off each $1 in sales.

“Chili’s is officially back, baby back!” said CEO Kevin Hochman.

Its stock came into the day with a gain of 17.1% for the year so far, and it swung between gains and losses through the morning. It was most recently up 3.5%.

HanesBrands climbed 3.8% after it agreed to sell itself to Gildan Activewear for $2.2 billion in cash and Gildan stock. The deal would combine North Carolinas’ HanesBrands with Canada’s Gildan, and Gildan’s stock that trades in the United States rose 10.7%.

Cryptocurrency exchange Bullish, which also owns crypto news site CoinDesk, surged in its debut on Wall Street. The stock more than doubled from its $37 initial public offering price after it started trading.

On the losing end of Wall Street were grocery stores and delivery companies, which fell after Amazon said it will offer fresh groceries to customers in more than 1,000 cities and towns through . fell 4.2%, and DoorDash dropped 4.8%, while Amazon rose 1.2%.

Cava Group sank 15.8% after the Mediterranean restaurant chain reported weaker revenue for the latest quarter than analysts expected, though its profit topped forecasts. It also cut its forecast for 2025 growth in sales at restaurants that have been open for more than a year, where guest traffic has been roughly flat recently from year-ago levels.

CoreWeave lost 17.9% after the company, whose cloud platform helps customers running artificial-intelligence workloads, reported a larger loss for the latest quarter than analysts expected.

In the bond market, Treasury yields eased as expectations built for coming cuts to interest rates by the Fed.

The yield on the 10-year Treasury fell to 4.24% from 4.29% late Tuesday and from 4.50% in mid-July. That’s a notable move for the bond market.

has angrily been calling for cuts to help the economy, often insulting the Fed’s chair personally while doing so.

But the Fed has been hesitant so far because of the possibility that Trump’s tariffs could make inflation much worse. Lowering rates would give inflation more fuel, potentially adding oxygen to a growing fire. That’s why Fed officials have said they wanted to see more data come in about inflation before moving.

On Thursday, a report will show how bad inflation was at the wholesale level across the United States. Economists expect it to show inflation accelerated a touch to 2.4% in July from 2.3% in June.

Canada’s Gildan Activewear is buying HanesBrands for $2.2 billion

SUMMARY:

  • $2.2B purchase values deal at $4.4B with debt
  • , join Gildan’s brand portfolio
  • Deal expected to close late 2024 or early 2025

is buying the struggling for $2.2 billion in a deal that gives the basic apparel maker access to household name brands like Hanes and Maidenform.

The companies put the transaction’s valued at about $4.4 billion when HanesBrands’ debt is included.

Gildan, in addition to its namesake brand, also makes American Apparel and Peds.

HanesBrands’ sales have fallen for three consecutive years and it hasn’t turned an annual profit since 2021.

The company sold its Champion brand last year to Authentic Brands Group for more than $1 billion. In February announced a multiyear strategic partnership with Champion, with products from the brand rolling out in the retailer’s store and on its website starting this month.

“As part of Gildan, HanesBrands will benefit from an even stronger financial and operational foundation that will provide new growth opportunities – helping to power further innovation, a broader product offering and greater reach across channels and geographies,” HanesBrands Chairman Bill Simon said in a statement Wednesday.

HanesBrands shareholders will receive 0.102 common shares of Gildan and 80 cents in cash for each share of HanesBrands common stock. They will own about 19.9% of Gildan stock once the deal closes.

Gildan has been experiencing some upheaval as well. In May 2024 its entire board resigned and appointed the nominees of activist investor Browning West as their replacements. CEO Vince Tyra also stepped down.

Gildan’s headquarters will remain in Montréal after the transaction is complete. The combined company will maintain a strong presence in , North Carolina, where HanesBrands is located.

Gildan said that it plans to conduct a strategic review of HanesBrands Australia, which could include a sale.

The deal is expected to close later this year or early next year. It still needs approval from HanesBrands shareholders.

Shares of HanesBrands dropped nearly 4% before the market opened after spiking 28% Tuesday on rumors of a buyout.

Homeowners turn to cash-out refinancing to take advantage of big gains in home equity

SUMMARY:

  • Cash-out refinancing hits near 3-year high in Q2
  • Total tappable U.S. reaches $11.6 trillion
  • Some markets see equity drop as prices cool in Sunbelt, West

Homeowners are cashing in on years of home equity gains, even as remain elevated.

The trend sent cash-out home refinancing activity to a nearly three-year high in the April-June quarter, according to data from home loan data tracker .

In a , a homeowner takes out a loan for more than they owe on their mortgage and then pockets the difference. The funds are often used to consolidate debt, home improvement projects and pay for big-ticket purchases.

The average cash-out refinance in the second quarter resulted in the homeowner pulling $94,000 in home equity, increasing their monthly payment by $590. On average, they also raised the interest rate on their home loan by 1.45 percentage points, according to the report.

To qualify for a cash-out refinance, homeowners must have at least 20% home equity, have owned the home for at least six months and have at least a 620 credit score, among other criteria. Borrowers who got a cash-out refinance in the second quarter had an average credit score of 719, ICE noted.

Years of rising home values have made tapping their home equity a tempting option for many homeowners. The median price of a previously occupied U.S. home climbed to an all-time high of $435,500 in June. That’s a 48% increase from just five years ago.

Total homeowner equity in the U.S. hit an all-time high of $17.8 trillion in the second quarter, with $11.6 trillion of available for homeowners to draw upon by refinancing, ICE said.

All told, cash-out refinances accounted for roughly 60% of all home loan refis in the second quarter.

A cash-out refinance can give a borrower more financial flexibility, especially if they can reduce their mortgage rate and use the funds to lower higher-interest debt. However, the borrower is signing up for a larger loan, possibly at a higher interest rate than they previously had, and they’re often extending the loan repayment term by several years.

That can be risky, because if a borrower can’t pay back the loan, they may not have enough equity left to avoid foreclosure.

Often, a home equity line of credit, or , may be a better option for homeowners, as they generally come with lower and the borrower isn’t giving up their equity, just borrowing against it.

Stubbornly high mortgage rates have helped keep the U.S. market in a sales slump since early 2022, when rates started to climb from the rock-bottom lows they reached during the pandemic. Home sales sank last year to their lowest level in nearly 30 years.

The market has remained in a slump this year, and while prices have kept rising nationally, the rate of growth has been slowing or falling in many metro areas, including Atlanta, Austin and Tampa, Florida.

The slower pace of home price appreciation, especially for homes in Sunbelt and Western markets, have led to home equity growth slowing by its lowest rate in two years, ICE said.

As a result, tappable equity has dropped by at least 5% in nearly one-quarter of U.S. markets. And about 1% of homeowners with a mortgage, or roughly 564,000 borrowers, now owe more than their homes are worth, ICE said.

Trump’s nominee to oversee jobs and inflation data faces criticism

SUMMARY:

WASHINGTON (AP) — The director of the agency that produces the nation’s jobs and inflation data is typically a mild-mannered technocrat, often with extensive experience in statistical agencies, with little public profile.

But like so much in President Donald Trump’s second administration, this time is different.

Trump has selected E.J. Antoni, chief economist at the conservative Heritage Foundation, to be the next commissioner at the Labor Department’s Bureau of . Antoni’s nomination was quickly met with a cascade of criticism from other economists, from across the political spectrum.

His selection threatens to bring a new level of politicization to what for decades has been a nonpartisan agency widely accepted as a producer of reliable measures of the nation’s economic health. While many former Labor Department officials say it it unlikely Antoni will be able to distort or alter the data, particularly in the short run, he could change the currently dry-as-dust way it is presented.

Antoni was nominated by Trump after the BLS released a jobs report Aug. 1 that showed that hiring had weakened in July and was much lower in May and June than the agency had previously reported. Trump, without evidence, charged that the data had been “rigged” for political reasons and fired the then-BLS chairErika McEntarfer, much to the dismay of many within the agency.

Antoni has been a vocal critic of the government’s jobs data in frequent appearances on podcasts and cable TV. His partisan commentary is unusual for someone who may end up leading the BLS.

For instance, on Aug. 4 — a week before he was nominated — Antoni said in an interview on Fox News Digital that the Labor Department should stop publishing the monthly jobs reports until its data collection processes improve, and rely on quarterly data based on actual employment filings with state unemployment offices.

The monthly employment reports are probably the closest-watched economic data on , and can frequently cause swings in stock prices.

When asked at Tuesday’s White House briefing whether the jobs report would continue to be released, press secretary Karoline Leavitt said the administration hoped it would be.

“I believe that is the plan and that’s the hope,” Leavitt said.

Leavitt also defended Antoni’s nomination, calling him an “economic expert” who has testified before Congress and adding that, “the president trusts him to lead this important department.”

Yet Antoni’s TV and podcast appearances have created more of a portrait of a conservative ideologue, instead of a careful economist who considers tradeoffs and prioritizes getting the math correct.

“There’s just nothing in his writing or his resume to suggest that he’s qualified for the position, besides that he is always manipulating the data to favor Trump in some way,” said Brian Albrecht, chief economist at the International Center for Law and Economics.

Antoni wrongly claimed in the last year of Biden’s presidency that the economy had been in recession since 2022; called on the entire Federal Reserve board to be fired for not earning a profit on its Treasury securities holdings; and posted a chart on social media that conflated timelines to suggest inflation was headed to 15%.

His argument that the U.S. was in a recession rested on a vastly exaggerated measure of inflation, based on newly-purchased , to artificially make the nation’s gross domestic product appear smaller than it was.

“This is actually maybe the worst Antoni content I’ve seen yet,” Alan Cole of the center-right Tax Foundation said on social media, referring to his recession claim.

On a 2024 podcast, Antoni wanted to sunset Social Security payments for workers paying into the system, saying that “you’ll need a generation of people who pay Social Security taxes but never actually receive any of those benefits.” As head of the BLS, Antoni would oversee the release of the consumer price index by which Social Security payments are adjusted for inflation.

Many economists share, to some degree, Antoni’s concerns that the government’s jobs data has flaws and is threatened by trends such as declining response rates to its surveys. The drop has made the jobs figures more volatile, though not necessarily less accurate over time.

“The moves clearly based on these job numbers, and so people with skin in the game think it’s telling them something about the future of their investments,” Albrecht said. “Could it be improved? Absolutely.”

Katharine Abraham, an economist at the University of Maryland who was BLS Commissioner under President Bill Clinton, said updating the jobs report’s methods would require at least some initial investment.

The government could use more modern data sources, she said, such as figures from payroll processing companies, and fill in gaps with surveys.

“There’s an inconsistency between saying you want higher response rates and you want to spend less money,” she said, referring to the administration’s proposals to cut BLS funding.

Still, Abraham and other former BLS commissioners don’t think Antoni, if confirmed, would be able to alter the figures. He could push for changes in the monthly press release and seek to portray the numbers in a more positive light.

William Beach, who was appointed BLS commissioner by Trump in his first term and also served under Biden, said he is confident that BLS procedures are strong enough to prevent political meddling. He said he didn’t see the figures himself until two days before publication when he served as commissioner.

“The commissioner does not affect the numbers,” Beach said. “They don’t collect the data. They don’t massage the data. They don’t organize it.”

Regarding the odds of rigging the numbers, Beach said, “I wouldn’t put it at complete zero, but I’d put it pretty close to zero.”

It took about six months after McEntarfer was nominated in July 2023 for her to be approved. Antoni will likely face stiff opposition from Democrats, but that may not be enough to derail his appointment.

Sen. Patty Murray, a senior Democrat from Washington, on Tuesday slammed Antoni as “an unqualified right-wing extremist” and demanded that the GOP chairman of the Senate Health, Education, Labor and Pensions Committee, Sen. Bill Cassidy of Louisiana, hold a confirmation hearing for him.

Amazon expands its perishable delivery service, putting pressure on traditional grocers

SUMMARY:

NEW YORK (AP) — is now rolling out a service where its Prime members can order their blueberries and milk at the same time as basic items like batteries and T-shirts and get them within hours.

The online juggernaut said Wednesday that customers in more than 1,000 cities and towns including Raleigh, ; Milwaukee; and Columbus, Ohio, now have access to fresh groceries with its free same-day delivery service on orders over $25 for Prime members, with plans to reach over 2,300 cities and towns by year-end.

Amazon called the move “one of the most significant expansions” for the online retailer as it introduces thousands of perishable items into its existing network. The expansion is expected to put pressure on grocery delivery services offered by such rivals as Walmart, Kroger and Target, which all saw their shares take a hit in trading Wednesday.

Amazon’s shares rose 1%.

Amazon said that if an order doesn’t meet the minimum, members can still choose same-day delivery for a $2.99 fee. For customers without a Prime membership, the service is available with a $12.99 fee, regardless of order size.

In the past, Prime subscribers’ grocery orders were fulfilled through Amazon Fresh or Whole Foods Market.

Prime members pay $14.99 monthly or $139 annually.

Amazon launched its Prime membership in 2005, and it has become the gold standard for subscription services with a slew of perks including unlimited streaming with Prime Video and discounts at Whole Foods and Amazon Fresh. Walmart, which launched its membership program called Walmart + in 2020, has been racing to add more benefits. It costs $12.95 per month or $98 per year. Depending on members’ location and availability, Walmart members can schedule same-day delivery for their groceries, including perishables.

“We’re continuously innovating to make grocery shopping simpler, faster, and more affordable for our customers, especially Prime members,” said Doug Herrington, CEO of Worldwide Amazon Stores, in a statement. “By introducing fresh groceries into our Same-Day Delivery service, we’re creating a quick and easy experience for customers. ”

Herrington noted that customers can order milk alongside electronics; oranges, apples, and potatoes with a mystery novel; and frozen pizza at the same time as tools for their next home improvement project—and check out with one cart and have everything delivered to their doorstep within hours.

The company first tested the service in Phoenix, last year, and then added Orlando, Florida and Kansas City, Missouri, earlier this year.

Amazon noted that many of its customers were first-time Amazon grocery shoppers who now return to shop twice as often with the same-day deliver service compared to those who didn’t purchase food. It also noted that based on early sales, strawberries now regularly knock AirPods out of the top five best sellers of all products sold, while bananas, Honeycrisp apples, limes, and avocados round out the top ten best-selling perishable grocery items in their same-day delivery carts.

“It’s a nice step forward,” said Jason Goldberg, chief commerce strategy officer at Publicis Groupe, a global marketing and communications company. “It definitely makes them more competitive” in perishables.

Goldberg noted that Amazon has struggled to succeed in fresh food and that shoppers have been confused ordering shelf stable items and perishables, and having them appear in different carts, including Amazon Fresh. He said this move will greatly improve the experience.

Amazon said it generated over $100 billion in gross sales of groceries and household essentials last year not including sales from Whole Foods Market and Amazon Fresh.

In June, Amazon said it was investing more than $4 billion to triple the size of its delivery network by 2026, with a focus on small towns and rural communities across the country.

It also noted that it’s using artificial intelligence to help it predict local customer preferences so it can stock popular items alongside items targeted for specific communities.

Averett plans $18.15M sale-leaseback of North Campus


SUMMARY:

  • Averett is planning an $18.15M sale-leaseback of its North
  • University must get more than 50% bondholder approval to proceed
  • Averett is in default on , although it hasn’t missed payments

is working on a sale and leaseback deal for its North Campus, which includes the private university’s E. Stuart James Grant Convocation and Athletic Center and its football, baseball, softball, soccer and lacrosse fields, as well as classrooms and other facilities.

Before it can make the deal, however, Averett needs bondholders of about $15 million in debt to waive a covenant preventing the sale of the property, according to a consent solicitation statement filed by the university Monday. The bonds were taken out in 2017 to debt repayment and construction.

Convincing the bondholders to allow the sale-leaseback is part of the university’s efforts  to weather a that first came to light in summer 2024 when school leaders announced furloughs and other cost-cutting measures. In March, Averett filed a federal lawsuit alleging that former Averett Chief Financial Officer Donald Aungst and an investment firm the university hired, Arizona-based Global Strategic Investment Solutions, had “surreptitiously” drained nearly $20 million from the university’s endowment to cover budget deficits.

In the filing, Averett noted that “regional investors” — which go unnamed save for the Danvile Regional Foundation — may buy the North Campus for $18.15 million if Averett is able to receive approval from at least 50% of the bondholders. With the deal, the university would receive $6.75 million at close, $6.75 million in the second year and $4.65 million in year three, according to an email from Cassie Jones, Averett’s vice president for marketing and communications. 

Averett will continue to use the property and will pay rent equal to a 4.5% annual return on the investors’ purchase price. The lease will last for 10 years, with an option to extend it for another 10-year period.

“The sale and leaseback of the Averett University E. Stuart James Grant North Campus athletic facilities provides us with additional financial flexibility as we work to position ourselves for long-term sustainability while still ensuring a seamless experience for our student-athletes and campus community,” Averett President Thomas H. Powell said in a statement to Virginia Business Tuesday. “This arrangement would keep the North Campus property under local control while providing support in a responsible way to a regional institution that is a major economic asset.”

Additionally, in the consent solicitation statement, Averett asks bondholders to waive “the covenant defaults with respect to the noncompliance by the university with the coverage ratio” and “the Audit Covenant Default with respect to noncompliance.”

Averett has never missed a payment on the bonds. However, the university is technically in default due to failing to comply with the debt service coverage ratio and the liquidity covenant, according to a June 27 filing by U.S. Bank Trust, a trustee of Averett’s bonds, posted on the Electronic Municipal Market Access website.

The 2017 agreement requires that Averett maintain a debt service coverage ratio of more than 1.00. For Fiscal Year 2025, Averett’s ratio was -04.46.

The university is also in default because it failed to file an official audited financial report for fiscal year 2024 by a Dec. 1 deadline. On May 30, Averett submitted a draft version of the report.

A waiver would allow the university’s auditor to issue a Final Audited Financial Statement for FY 2024 without “treating the bonds as if they were to be accelerated as current debt payable by the University in full, even though the bondholders have not accelerated the debt, or expressed any interest in accelerating the bonds to the bond trustee or the university.”

Averett noted in the filing that it was unable to file an audited financial statement with the Department of Education by a March 30 deadline. The Southern Association of Colleges and Schools Commission on Colleges, an institutional accreditor, also required a comprehensive report by July 15, according to the consent solicitation statement. “Failure to comply with such deadlines for the delivery of the Final Audited Financial Statements Report for Fiscal Year 2024 could have a material adverse impact on the University because of the economic resources and the oversight of the University’s operations over which DOE and SACSCOC have responsibility,” Averett stated in the filing.

In the document, the university stated that it expects to receive the consent of American Century Investment Management, a Missouri-based asset manager that holds about 25% of Averett’s bonds, to all requested consents.

The university noted in the statement that it will pay 0.25 cents per $1,000 of the principal amount of each bond to each bondholder who grants requested consents. If the university receives consent from more than 50% of bondholders, it will set up a reserve fund equal to one year’s worth of interest
payments on the bonds. Bondholders will also receive a security interest on the second and third payments the university expects to receive from the sale and leaseback transaction.

On Aug. 6, a judge ordered Averett University to hash out its differences with its former investment firm, GSIS, and the university’s former chief financial officer through arbitration. GSIS denies the allegations. Last week, Francisco E. Mundaca, the Maryland-based attorney representing Aungst, said in a statement that the former CFO may be considering his own court action over the dispute. “We are now evaluating all available legal remedies to protect Mr. Aungst’s reputation and hold accountable those who have damaged his distinguished 36-year career in finance,” Mundaca wrote in an email.