NYC Housing Growth

Here’s why NYC’s housing price growth is falling behind the West Coast Blame the job market (and the cycle)

UPDATED上海夜网论坛 上海夜网: April 27, 2:16 p.m.: Housing in the U.S. has become a two-speed market – and New York is stuck in the slow lane.

The S P/Case-Shiller Home Price Index for New York City grew a mere 2.2 percent year-over-year in February. But it’s not just the Big Apple that saw its prices p爱上海同城对对碰 爱上海同城论坛lateau: Boston’s index grew by a modest 3.7 percent, Chicago’s by 1.8 percent and Washington D.C.’s by a mere 1.4 percent.

Meanwhile, price growth in Seattle and Portland reached double digits, with San Francisco trailing closely at 9.3 percent.

The Case-Shiller Index doesn’t include condos and co-ops, which makes it an imperfect indicator of the New York residential market. But condos and co-ops are caught in a similar slowdown. A recent Streeteasy report found that Manhattan s median apartment resale price grew 4.4 percent year-over-year in February  the slowest growth since October 2012. Streeteasy forecasts that阿拉爱上海同城 爱上海龙凤419桑拿 growth will slow down to 3.2 percent over the coming year.

New York’s residential slowdown isn’t news, but so far most observers have treated it as an isolated, local phenomenon. The Case-Shiller 上海千花网龙凤论坛 上海千花社区report suggests it is really part of a national trend: a divide between slow growth in major markets in the northeast and a boom in the south and on the west coast. What explains it?

“There is one difference and that is job growth,” said Ralph McLaughlin, chief economist at listing site Trulia. Last year, he said, the number of jobs in Seattle and Portland grew by 3.2 percent each – compared to 1.4 percent in New York City, 1.8 percent in Boston and 1.7 percent in Chicago. The big West Coast cities have been particularly successful at attracting well-paying tech jobs. Growth in well-paying jobs tends to push up prices the higher end of the real estate market, which carry a disproportionate weight in the Case-Shiller Index.

Despite its much-hyped tech boom and the coming Cornell Tech campus, New York added a mere net 3,000 high-wage technology jobs for 18-to-29-year-olds between 2000 and 2014, according to a new report by comptroller Scott Stringer, while losing a net 10,000 jobs in finance.

A second explanation for the discrepancy is cyclical. New York recovered more quickly from the recent housing slump than other cities. The latter are now belatedly catching up – as th爱上海同城 爱上海ey tend to do in most cycles. McLaughlin calls this dynamic “economic convergence.” It helps explain why prices in cities like Tampa, Dallas and Las Vegas also grew far more quickly than in New York last year. In this sense, slow price growth in the Big Apple is actually a sign of the market’s strength.

 

Correction: an earlier version of this post omitted the fact that condos are not included in the Case-Shiller index.

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Challenging the Grand Bazaar

For over 600 years, Istanbul s Grand Bazaar has been one of the world s great shopping destinations. But lately it s losing its luster and fading in local importance as a massi上海千花网交友 上海千花网论坛ve building boom produces dozens of modern shopping malls in the downtown area.

Created by rehabbing former factories, these malls have also been catalysts in popularizing several modern residential neighborhoods.

Malls are very active, and retail is quite hot, said Murat Ergin, managing director of Kuzeybati Real Estate in Istanbul, who explained, they re not quite European malls and they re not bazaars. They re multi-floor shopping centers with three to four floors and an anchor store that s usually a department store.

According to Kerim Cin, managing partner of Colliers International Turkey, the commercial building boom has been taking place for the last two to three years, with 90 percent of the construction related to retail. Western-style retail has been limited in Istanbul until now, and brokers emphasize that having European and American retail chains in the city has been a major boon to commercial life.

The main reason is the stabilizing economy for the past four or five years, Cin said. It gave a boost to consumer demand, and that triggered international retailers to enter the market 上海千花网 爱上海同城对对碰in fashion and other sectors and to compete with that, local retailers adopted [an] expansion strategy.

Western chains may be filling some of this space, but it s been developers from the Persian Gulf who ve been creating many of the new venues, according to Cin. Wealthy Arabs investing in Istanbul are said to be attracted by the city s growth potential and status as a stable and affluent Muslim market.

Istanbul s largest modern mall is the Kanyon Shopping Mall, a mixed-use, open air complex in the Levent financial district. Consisting of a 30-floor office tower and a 22-floor residential block with 179 apartments and four retail levels, the project emulates Nisantasi, an upscale but far older shopping district of Istanbul.

The Kanyon is located in an area that really mixes business and residential, although it s more of a business district, Cin said. The thing is, in the same area there are another eight or nine shopping centers. So even though we have an undersupply of commercial space, most of the new buildings are located in similar locations.

Whereas 15 years ago Istanbul had no modern shopping malls, now 35 to 40 exist in the city, with an equal number on the drawing board or under construction. Most of the retail space has been created out of former factories, usually between about 25,000 to 30,000 square feet in size.

Rents at these shopping arcades vary between $4 and $10 per square foot 爱上海同城论坛 爱上海同城per 上海龙凤论坛sh1f 上海龙凤论坛month.

Istanbul is still way behind the European average in terms of retail space, said Ergin. But locals agree the city s retail renaissance is beginning to spur more modern office development downtown.

There s a real undersupply in commercial space, sai[……]

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Urban American Management

30-58 and 30-64 34th Street in Astoria and Philip Eisenberg

Urban American Management closed on the $20.5 million purchase of a 70-unit Astoria multifamily portfolio from investor Takis Tsagronis, sources t新上海贵族宝贝论坛 上海贵族宝贝交流区old The上海贵族宝贝 上海千花网龙凤论坛 Real Deal.

The 49,600-square-foot portfolio comprises two buildings at 30-58 and 30-64 34th Street, between 30th and 31st avenues. The sales price pencils out to approximately $413 per square foot, with a cap rate of 2.91 percent. All of the units are rent-regulated.

Peter Von Der Ahe, Joe Koicim, Shaun Riney and Dylan Walsh of Marcus Millichap brokered the deal, which closed on Friday.

From left: Joe Koicim, Peter Von Der Ahe and Shaun Riney

Property records show Tsa新爱上海同城对对碰论坛 上海同城对对碰交友社区gronis had owned the properties since 2001, when he bought them for an undisclosed price.

Urban American, led by Philip Eisenberg, was one of the city s most active private equity-backed real estate investment firms in the 2000s. It has since reduced its footprint, though it maintains a presence in New York City, Westchester Country and New Jersey. Sources have said the firm owns more than 6,000 units in the city.

The company is not the only one eyeing Astoria for multifamily product. A E Real Estate Holdings, a firm co-founded by Eisenberg s son and former Urban American executive Douglas Eisenberg, is in contract to buy a seven-building Queens portfolio, including one property in Astoria, for $82.8 million, TRD reported.

(To view more commercial sales transactions in Astoria, click here)

Tags: Commercial Real Estate, philip eisenbe爱上海同城手机版 新爱上海同城对对碰论坛rg, urban american manag爱上海同城论坛 爱上海同城ement
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Allure Group

Firm tie上海千花网交友 上海千花网论坛d to Rivington House scandal scores $48M refi in Crown Heights Allure Group bought the BK nursing home in 2014

Joel Landau and 810 St. Marks Avenue (Credit: Google Maps)

The Allure Group just landed a $48上海贵族宝贝交流区 上海贵族宝贝论坛.4 million loan to refinance a Crown Heights nursing home.

Maryland-based Andrews Federal Credit Union provided a new loan of $13.4 million, which is being consolidated with $36 million in previous debt, records filed with the city s Department of Finance on Thursday show. The remaining principal on the previous loan is $34.9 million.

Allu上海夜网 阿爱上海同城re purchased the facility at 810 St. Marks Avenue — known as the Crown Heights Center for Nursing and Rehabilitation Center — in 2014 for $13 million.

Representatives for Allure declined to comment on the refinancing.

Allure, which is led by Joel Landau and specializes in nursing homes, was at the center of the Rivington House controversy. The company purchased 45 Rivington Street in 2015 for $28 million. After succeeding in getting a deed restriction on the property lifted, the company sold the nursing home to Slate Property Group
for a $72 million profit. Last year, the city admitted that it didn t have a legal case against Allure for flipping the property.

Ea上海夜网 阿爱上海同城rlier this month, Allure prevailed over a lawsuit filed by residents of CABS Nursing Home in Bedford-Stuyvesant. CABS filed a lawsuit against Allure last year, claiming the company forced out residents soon after buying the facility in 2015. The lawsuit was dismissed Oct. 4, though the nursing home has filed a notice of appeal.

Tags: Allure Group, Real Estate Finance
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Malibu Property Market

Who wants to become the most important land owner in Malibu? For eight plots of p上海贵族宝贝 上海千花网龙凤论坛rime land in Malibu and $150M, it could be you

(Ken Kistler, back; Pixabay, front)

The 上海千花网论坛 上海千花网late Jerry Perenchio s undeveloped 70-acre Malibu property is on the market for $150 million, but the catch is the property is split into eight lots and the brokers do no阿拉爱上海同城 爱上海龙凤419桑拿t want to sell them separately.

“In a single transaction, someone is going to become the most important land owner in all of Malibu,” Savills Studley s Mark Sullivan 上海贵族宝贝 上海千花网龙凤论坛said to Bloomberg.

The plots haven t been on the market in over 30 years with one lot bordering Malibu Colony, while other lots are spread throughout significant commercial and retail areas. The catch to buying the mostly well-situated properties is the long local approvals process that will take a developer several years.

Wh上海龙凤论坛 新上海贵族宝贝论坛en the brokers speculated who potential buyers could be, Agency s Mauricio Umansky who s marketing the property in partnership with Savills Studley told Bloomberg, “I think personally a lot of them are local billionaires.”

[Bloomberg] E.K. Hudson

Tags: Development, South Florida Real Estate
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With MGM’s Bridgeport casino in play, CT legislators propose competitive bidding bill

With MGM’s Bridgeport casino in play, CT legislators pro阿拉爱上海同城 爱上海龙凤419桑拿pose competitive bidding bill

A bill proposed by legislators who represent Bridgeport, where MGM has proposed a massive waterfront gaming project, wants to open a competitive bidding process for casino development in Connecticut and, in the process, scrap an exi爱上海同城 爱上海sting license obtained by the native American tribes behind Foxwoods and Mohegan Sun for a new casino in East Wi上海同城对对碰交友社区 上海夜网论坛ndsor. The Mashantucket Pequot and Mohegan tribes are the阿爱上海同城 阿拉爱上海同城 state’s exclusive gaming operators under current law. “The process will let every developer with an interest — whether it is MGM or the tribes or anyone else — give it their best shot,” said Rep. Chris Rosario, D-Bridgepor上海夜网论坛 上海夜网t, in a press release. A similar push stalled in the legislature last year. [Hartford Courant]

Tags: Westchester Fairfield
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Fidelity Title Insurance

Big Four no more? Fidelity is buying rival Stewart for $1.2B Title insurers in NY underwrote $1.1B in 2016

Raymond Quirk

The “Big Four” title insurance players are about to become the Big Three.

Industry heavyweight Fidelity National Financial has signed an agreement to buy rival Stewart Information Services Corp. for $1.2 billion in cash and stock, the c上海千花网 爱上海同城对对碰ompany said Monday. Pending shareholder and regulatory approval, the deal could close by the second quarter of 2019.

If approved, Fidelity will emerge as the nation s largest title company several times over. Before the merger, it reported $7.2 billion in revenue and controlled 33 percent of the national market, according to industry estimates.

In a statement, Fidelity CEO Raymond Quirk said the merger would create “significant operational efficiencies,” including savings of up to $135 million. He added: We are very familiar with Stewart in the marketplace and上海龙凤论坛sh1f 上海龙凤论坛 see multiple areas where we can assist and accelerate Stewart’s growth plans.

In 2017, Stewart reported revenue of $1.9 billion, down from $2.1 billion in 2016. In recent years, activist investors have been vocal about the company s declines. Last year, Stewart’s board began looking at “strategic alternatives” for the company in 2017 and determined that merging with Fidelity was the best option, chairman Thomas Apel said Monday.

Fidelity — whose brands include Fidelity National Title, Chicago Title, Commonwealth Land Title and National Title of New York — ha上海夜网 阿爱上海同城d revenue of $7.2 billion in 2017 with $1 billion in earnings.

Fidelity said it would save $135 million by acquiring Stewart, even after assuming its $109 million in debt.

Nationally, title上海龙凤论坛 新上海贵族宝贝论坛 is a $15 billion industry that’s been dominated by Fidelity along with First American, Old Republic and Stewart. The “big four” control 90 percent of the market, according to data from the American Land Title Association.

In 2016, New York title companies underwrote $1.1 billion worth of premiums — about 10 percent of the national pie that year.

In New York City, Stewart provided title for 42 of the top 1,000 priciest deals between December 2014 and June 2017, according to an analysis by The Real Deal. Those deals were valued at $2.73 billion. Fidelity provided title for 94 of the top 1,000 deals during the same time, in deals valued at $18.38 billion.

The combined company will have around 44 percent market share, according to John Campbell, an analyst at Stephen s, the investment bank. Campbell thinks that s doable from a regulatory standpoint, he wrote in a note to investors Monday. Recall, title insurance is already a heavily regulated industry with pricing, in many states, o上海千花社区 上海千花网交友ften set by regulators.

New York title companies have faced scrutiny from state legislators over their marketing, which include notoriously lavish parties, dinners and entertainment.

Starting Feb. 1, the Department of Financial Services imposed strict regulations that ban such “inducements” in exchange[……]

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CRTs

Mortgage bonds are getting riskier CRTs come with lower credit scores, higher debt ratios

It may not be time to panic yet, but investors are starting to buy riskier mortgage bonds.

Homeowners whose mortgages get packaged into so-called credit risk transfer securities (CRTs) have lower credit scores and higher debt levels than they did in recent years, Bloomberg reported.

CRTs, like traditional mortgage-backed securities, are issued by Fannie Mae 上海千花网 爱上海同城对对碰and Freddie Mac, the government-sponsored mortgage giants. But unlike traditional housing bonds, CRTs aren’t fully guaranteed by the federal government. That means investors have to cover for losses, and makes the recent fall in credit scores worrying to some.

“Underwriting starts out very stric爱上海同城 爱上海t and as time goes on, it’s kind of the proverbial frog in the p上海千花网龙凤论坛 上海千花社区ot of boiling water,” John Kerschner of Janus Henderson Group told Bloomberg. “The heat keeps going up and up and then you realize, oh, this is really not good.”

The average credit score in Fannie Mae’s most recent two CRT issues was 743, compared to 765 in 2013. Meanwhile borrowers’ average debt-to-incom上海千花网 爱上海同城对对碰e ratio rose to 36 percent, up from 31.7 percent in 2013.

Still, the to新爱上海同城对对碰论坛 上海同城对对碰交友社区tal volume of CRTs is just $50 billion a fraction of the $40 trillion bond market and some observers are more concerned about corporate bonds. Bank of America analysts noted that looser lending standards will be prudent rather than leading to excesses as seen in the last decade. [Bloomberg] Konrad Putzier

Tags: Real Estate Finance, Residential Real Estate
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WeWork

Moody’s is no longer rating WeWork The rating agency said it doesn’t have enough information

Adam Neumann in a pile of cash at a WeWork space (Credit: iStock, Getty Images, and WeWork)

Moody’s dropped its ratings of WeWork, saying it didn’t have enough information to evaluate the company’s creditworthiness.

Moody’s wasn’t being paid for the rating, Bloomberg reported. In April, the rating agency graded WeWork’s $702 million of unsecured debt on the lowest speculative-grade tier. Its assessment was lower than that of ratings agencies S P and Fitch.

The junk ratings underscore the challenge of evaluating creditworthiness of startups that tout growth but have negative free cash flow, the report said. Moody’s rated the company B3, six notches into新爱上海同城对对碰论坛 上海同城对对碰交友社区 the junk spectrum. Strong demand had led WeWork to increase the size of its bond deal by 40 percent.

WeWork, which is seeking a new round of funding that would value it at about $35 billion, has at least $18 billion in lease obligations, including $5 billion due by 2022. The Adam Neumann-led company doubled its revenues爱上海同城 爱上海 in 2017 to $866 mill爱上海同城对对碰 爱上海同城论坛ion, but it also more than doubled its losses to $933 million. The average revenue it makes per customer declined by 6.2 percent to $6,928.

Last month, WeWork said it’s launching a real estate advisory b上海千花网论坛 上海千花网usiness that offers brokerage services. The pr上海龙凤论坛sh1f 上海龙凤论坛ogram will represent companies and help them secure office space outside of WeWork’s locations.

It’s also ramped up incentives for brokers. WeWork is offering 100-percent commission to brokers who lure tenants away from rivals. [Bloomberg] — Meenal Vamburkar

Tags: Co-working NYC, Commercial Real Estate
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409 Eastern Parkway

Adam America locks in refi of Crown Heights luxury building Deutsche Bank is the lender, again

Adam America s Omri Sachs and a rendering of  409 Eastern Parkway i上海同城对对碰交友社区 上海夜网论坛n Crown Heights

Adam America Real Estate Group has scored another loan from Deutsche Bank, this time for a 1上海贵族宝贝 上海千花网龙凤论坛86-unit luxury project in Crown Heights.

The developer landed $105 million to refinance its 11-story mixed-use development at 409 Eastern Parkway, on阿爱上海同城 阿拉爱上海同城 the corner of Bedford Avenue.

The new financing, which was brokered by JLL s Aaron Appel and Keith Kurland, includes a nearly $41 million gap mortgage and replaces debt from Santander Bank, according to public records from the city s Department of Finance made public Monday.

Adam America did not immediately return a request for comme上海贵族宝贝交流区 上海贵族宝贝论坛nt. Deutsche Bank declined to comment.

This latest financing deal is not the only recent transaction between Deutsche Bank and Adam America.

The bank in August loaned $71 million to Adam America and Slate Property Group to refinance an East Williamsburg re爱上海龙凤419桑拿 上海龙凤论坛sh1fntal building at 120 Union Avenue.

The project at 409 East Parkway has three commercial condominiums in the property s lower levels. Meanwhile, 35 of its residential rentals will be affordable.

Elsewhere in Brooklyn, Adam America, Slate Property Group and China Vanke s U.S. arm secured a $104 million construction loan for their 27-story condo in Downtown Brooklyn from Bank OZK and iStar Financial.

That new 183-unit development at 10 Nevins Street is just one of a slew of residential projects underway that will cause Brooklyn s resi supply to grow over the next few years. It s anticipated the borough will see some 35,400 units come online through 2021.

Tags: Adam America Real Estate Group, Commercial Real Estate, Deutsche Bank, Real Estate Finance
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