Author: Suraj Shrestha

Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

Fannie-Freddie Shares Slide as Mnuchin Dims Investors’ Hopes

Mnuchin has said the Trump administration won’t release Fannie Mae and Freddie Mac from government control without an overhaul of the housing finance system.

(Bloomberg)—Treasury Secretary Steven Mnuchin made clear that freeing Fannie Mae and Freddie Mac from U.S. control won’t happen without a major overhaul of the nation’s housing finance system, potentially dashing investors’ hopes that they might soon make a windfall from their stakes in the mortgage giants.

In a June 8 interview, Mnuchin was adamant that the Trump administration won’t just let Fannie and Freddie build up their capital buffers and then release the companies. He also said he backed a key reform that can only be implemented by Congress, casting doubt on how ambitious the administration will be absent a legislative fix. Fannie and Freddie shares plunged on his comments.

“What we’re not going to do is business as usual with no changes, just re-capitalize them and float them,” said Mnuchin, referring to a possible public offering of Fannie and Freddie shares. “There needs to be housing reform as part of this.”

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: Pixabay

Top 10 Markets Where Home Flippers Are Flipping

ATTOM Data Solutions just released its Q1 2019 Home Flipping report and found that 7.2 percent of all home sales during the first quarter, reached a new high flipping rate, the highest since Q1 2010. The 7.2 percent flipping rate is up from 5.9 percent in the previous quarter and up from 6.7 percent a year ago. However, while flippers are flipping, gross profits are stumbling.

Homes flipped in Q1 2019 sold at an average gross profit of $60,000, down from an average gross flipping profit of $62,000 in the previous quarter and down from $68,000 in Q1 2018 to the lowest average gross flipping profit since Q1 2016.

How do these numbers hold up across various markets?

ATTOM Data dove into the data and looked at those top 10 markets, that had 50 or more flips in Q1 2019 and a population greater than 200,000 to uncover markets that are helping to drive the national flipping rate upward.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: ATTOM Data Solutions

Real estate startup ZeroDown will help you buy a house in San Francisco with no down payment

Startup launches with $30 million in funding

It’s fairly well known at this point that San Francisco is one of the country’s (if not the world’s) craziest housing markets. Houses there are incredibly expensive, and only getting more so. The Bay Area also tops the charts in how much money a borrower has to earn to afford to buy there.

Plus, new data shows that it would take as much as 40 years for a borrower to save up a 20% down payment to buy a house in San Francisco. Heck, even ramshackle San Francisco shacks are listed for $2.5 million.
No matter how you look at it, buying a house in San Francisco is neither easy nor cheap.

But, now, there’s a way for people to buy a house in San Francisco for as much as $1.75 million with no down payment.

This week, a real estate startup called ZeroDown officially launched its platform in the Bay Area.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: Pixabay

Co-Living and Student Housing Collide, as People Struggle to Afford Rent in Expensive Urban Markets

More developers are designing communal apartment projects that serve both demographics.

Co-living, one of the hottest trends in apartment investment, has a lot in common with student housing.

“Co-living is actually student housing for grown-ups,” says J.J. Smith, president of Chicago-based CA Student Living, one of the largest developers of student housing in the country. The company operates several properties in which the residents are almost evenly split between college student and young professionals.

Co-living is a growing trend in the most expensive U.S. housing markets, where tenants in a single apartment share common areas such as the kitchen. The model is similar to student housing, where students also share suites of bedrooms with shared kitchens. It shouldn’t be surprising that some of the largest co-living developments are filling up with students, especially with graduate students, who have a lot in common with the young professionals who tend to live in co-living properties.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: Pixabay

Flexible Office Space Operators Focus on Add-On Services to Develop New Revenue Streams

Going forward, the success of co-working operators may rely partly on their ability to generate new revenue sources.

Looking for ways to create a better tenant experience and boost their bottom lines, flexible office operators are generating new revenue streams by offering additional on-site services and establishing new business lines.

LiquidSpace, a digital marketplace—a sort of an Airbnb of flexible office space that partners with co-working operators, serviced office operators, office landlords, and office tenants with sublet space, provides flexible office options to its clients. The company has also partnered with Steelcase to provide turn-key design and fit-out of tenant spaces within traditional lease structures.

“We’re the one platform where tenants can reach the entire flexible office market,” says Mark Gilbreath, LiquidSpace founder and CEO, noting that his company simplifies the discovery and transaction process.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: Pixabay

Apartment Building Owners Try to Grapple with Tougher Energy Use Requirements

New York City is the latest local government to require more energy conservation from apartment building owners and developers.

New York property owners and developers and local officials are trying to understand what the city’s new, tougher energy use loss might mean for them, and how much it might cost co comply.

A new law will require thousands of city buildings to deeply cut the amount of energy they use.

“New York City is the first city in the world to require all large existing buildings of 25,000 square feet or more, of which there are 50,000 citywide, to make efficiency upgrades… or face steep penalties,” according to New York’s City Hall.

New York property owners and developers and local officials are trying to understand what the city’s new, tougher energy use loss might mean for them, and how much it might cost co comply.

A new law will require thousands of city buildings to deeply cut the amount of energy they use.

“New York City is the first city in the world to require all large existing buildings of 25,000 square feet or more, of which there are 50,000 citywide, to make efficiency upgrades… or face steep penalties,” according to New York’s City Hall.

New York City is just the latest municipality to raise the bar for apartment investors and developers on sustainability requirements. Local governments across the U.S. are raising the requirements on what developers have to do to be allowed to build their projects. Advocates for sustainable development also call for tougher building codes, including “improvements” to the International Energy Conservation Code (IECC), a national model energy code that many cities and states use as the basis for their own local codes.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: Pixabay

Ikea Shares Glimpse of a Very Different Future in Crowded Cities

The furniture retailer laid out a vision of an urban future where multiple families share kitchens, hallways and dining areas.

(Bloomberg)—In a crowded urban future, kitchens, hallways and dining areas will be shared by multiple families, furniture will be robotic and closets can be shrunk when not in use.

That’s according to the world’s largest furniture retailer, Ikea, which laid out its vision on how to house and furnish a world that’s becoming more urbanized and more crowded during its “Democratic Design Days” on Tuesday in the small town of Almhult, Sweden.

Ikea, along with developer Ikano Bostad and design lab Space10, has embarked on a project to help solve the challenges facing cities confronted with growing urbanization, aging populations, soaring housing prices and a lack of natural resources.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: Pixabay

Fannie-Freddie Revamp Risk for Trump: Higher Mortgage Costs

FHFA Director Mark Calabria doesn’t want to release Fannie and Freddie unless they have sufficient capital buffers, which would mean higher mortgage costs.

(Bloomberg)—Fannie Mae and Freddie Mac’s watchdog has a vision for ending U.S. control of the mortgage giants that hinges on the companies holding more capital. But that dream could run into a cold political reality of making home loans more expensive as President Donald Trump ramps up his re-election bid.

Federal Housing Finance Agency Director Mark Calabria, who became Fannie and Freddie’s regulator in April, has said the companies need to raise capital buffers to protect against the kinds of catastrophic losses they had during the 2008 financial crisis. He doesn’t want to release Fannie and Freddie unless they have sufficient backstops to prevent another taxpayer bailout.

“It was insufficient capital that triggered the conservatorship, and it’s going to be sufficient capital that triggers an exit,” Calabria, a Trump appointee, said last month at a mortgage banking conference in New York. He added that he wants Fannie and Freddie ready to start raising funds by January.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: Pixabay

HNW Investors Are Giving Preference to Multifamily and Office Properties, AppFolio Survey Finds

The survey, conducted in April, found 68.3 percent of respondents were looking at multifamily acquisitions.

If a new survey is an accurate barometer, two words—modernization and multifamily—sum up the key issues weighing on the minds of high-net-worth (HNW) individuals and other property investors.

The survey, conducted in April by AppFolio, a Goleta, Calif.-based provider of real estate and investment management software, showed that the No. 1 challenge facing accredited property investors is finding a good investment manager to handle fund and syndicate allocations.

And it’s not that these investors are laboring to find an investment management firm that’s good at what it does. It’s more about working with an investment manager that fully embraces technology. In other words, they’re seeking an investment manager that’s up-to-date rather than old-school.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: Pixabay

Blackstone Bets $18.7 Billion on Amazon Effect in Warehouse Deal

Blackstone’s $18.7 billion deal with GLP PTE will almost double its U.S. industrial footprint.

(Bloomberg)—The mall is now a warehouse, and Blackstone Group LP is betting $18.7 billion on the shift.

That’s how much the alternative investment manager is paying for 179 million square feet of urban logistics properties — the warehouses used by Amazon.com Inc. and other retailers to fulfill orders from online shoppers. The deal with Singapore’s GLP Pte, the second-largest owner of U.S. logistics real estate, will almost double Blackstone’s U.S. industrial footprint.

The rise of Amazon and other e-commerce companies has increased the need for warehouse space by retailers seeking to expand their digital operations and cut delivery times. The shift toward online shopping is reconfiguring supply chains and shaping the fortunes of industrial landlords, with demand especially high in and around large cities, where e-commerce has taken off fastest.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


Picture: Pixabay
Scroll to top