Commercial Real Estate Finance

Posts Tagged ‘single family’

Rina Cutler, Philadelphia’s Deputy Mayor of Transportation and Utilities, discusses the growth of the city’s real estate market, resurgent neighborhoods, and the latest innovations in urban planning. (This is Part I of Llenrock’s latest video interview.)

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Jim Smith of Philadelphia-based Campus Apartments talks to Llenrock Group’s Andrew Benioff. They discuss growing competition and other conditions in this unique sector. (This is Part II of our interview. See below to catch up on part I)

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Sorry for all the ellipses in the title. I had all these extra dots lying around and had to get rid of them.

You’re lucky it wasn’t a surplus of semicolons.

Let me start over.

In a couple recent posts, I’ve pointed to certain asset classes–hospitality, retail, office, and especially single-family–as ways to gauge the overall economic recovery. Since these sectors saw a sharp decline in the 2008-09 economic fiasco, their improvement, however gradual, signals an overall improvement in the country’s employment growth, consumer confidence, and lending markets. The frenzy of multifamily activity in recent years has been a positive side effect of the recession, but certainly not a sign of general economic recovery.

I can add one more asset type to the above list of crucial property types: condos.

Since the recession began, the term “multifamily” has typically been used as short-hand for “multifamily rentals.” The abundance of high-end condo developments left under-leased, vacant, or even unfinished has left this property type on the fringe of the CRE recovery and impossible to finance.

One sure sign of a strengthening local economy is an increase in multifamily buyers. Nashville, Tennessee is one of the metros enjoying an uptick in this generally challenging sector. Read the rest of this entry »

Part II. In our latest interview, Llenrock Group’s Andrew Benioff sits down with Joseph Duckworth, Founding Partner of Arcadia Land Company. They discuss differing markets and the conditions affecting residential development in 2013.  See part one here or check out other interviews on our YouTube channel!

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From an article published by BusinessInsider.com, and based upon data from the Case-Shiller Index, here’s a ranking of the Top 10 Housing Markets for the Next 5 Years:

(Note: this ranking is based on projected annual price changes between Q2 2012 and Q2 2017.)

10. Tucson, AZ (estimated 5-year growth: 7.9%)

9. Gulfport-Biloxi, MS (8.0%)

8. Napa, CA (8.0%)

7. Ocala, FL (8.0%)

6. Santa Barbara-Santa Maria-Goleta, CA (8.4%)

5. Sebastian-Vero Beach, FL (8.7%)

4. Madera-Chowchilla, CA (8.8%) Read the rest of this entry »

Take a look at our latest poll results! While we’re far from reaching a consensus, there’s clearly improving sentiment toward single-family…

See our previous polls here.

Luxury home builder Toll Brothers (NYSE: TOL) exceeds earnings estimates in the fourth quarter:

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While U.S. casino hubs like Atlantic City are struggling, Asia’s casino hot spot–Macau–is thriving. Sands China, Ltd. (HKG: 1928) is now planning its fifth casino resort in the region, with a price tag of $2.5 billion:

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It’s an inevitable part of any real estate cycle: as one asset class loses strength, another grows to accommodate the shift in market demand and capital flow. Even though the downturn of 2008-09 had a devastating effect on every industry but “Cash 4 Gold,” it had a very disproportionate effect on real estate’s different sectors. Likewise, the pace of recovery for these property types has been inconsistent to say the least.

While there are a great many factors to any market change, good or bad, one of the conditions affecting (weakening) our current recovery is, without question, America’s changing population. The younger generation (“Echo Boomers,” or whatever else you want to call them) are quick to say, “The Baby Boomers created this mess,” but they may fail to see how badly many of their parents’ generation were harmed by the recession. As is traditional in this country, a large part of one’s nest egg is the house you own; when that loses value, the inability to sell or sell at a profit leaves very little on which to retire.

This, coupled with the fact that medical science has everyone living longer (with frightening implications for Social Security, among other things), means it is now much more expensive to retire. While echo boomers (like myself) have indeed inherited a challenging economy–a lower-income, rent-don’t-own sort of society–we’re not the only ones who have to grapple with it. Read the rest of this entry »

Week in Review for September 8 – 14:

- Both the Dow Jones and S &P 500 close at their highest levels since before the financial downturn on Thursday, thanks to the Federal Reserve’s announcement of new economic stimulus measures. Shares on the NASDAQ and NYSE also performed extremely well. The Fed’s stimulus is in response to recent disappointing employment data, which indicated a still-sluggish recovery.

- In a report by CoStar Group, analysts from the real estate investment community weigh in on the question of how the aging Baby Boomer generation will affect vacancy rates and housing prices, as well as the future performance of senior living real estate.

 - In Berks County, Pennsylvania, Dollar General Corp. (NYSE: DG) buys 110 acres from the Berks County Industrial Development Authority for $12.5 million. It has begun construction on a 907,000 SF distribution center there, which is scheduled to be completed in 2014.

- Empire State Realty Trust, a proposed REIT whose holdings would include the Empire State Building, announces the names of its proposed board of directors. Though an IPO is planned, it has not yet received full backing from its properties’ investors, particularly some legacy investors with stakes in the Empire State Building.

- Fitch Ratings says it is “very cautious” about how it rates CMBS attached to mid-tier retail malls. Public skepticism over the long-term viability of many malls has also led Moody’s to cut ratings on CMBS tied to such properties.

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