Category: Real Estate

How Rent Control Reduces the Affordable Supply

The Institute of Real Estate Management’s director of government affairs takes a hard look at the economic and social impacts of these policies.

Rent control is often considered by some state and local government officials as a means to create more affordable housing by limiting the amount a property owner can charge for renting out a home, apartment, or other type of real estate. As rental rates rise, demand for apartments increases and Americans see a larger portion of their income go to paying rent. As policymakers search for answers to combat this growing problem, one of the first solutions they consider is rent control.

Over the last few years, property managers and owners have addressed rent control legislation in their respective states. Rent control (also known as rent stabilization) is a government-enforced price control measure limiting the price of rents that property owners may charge for rental housing.

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

As Southeastern Cities Experience Strong Job Growth, They Are Also Seeing a Rising Demand for New Apartments

Southeast cities including Nashville, Tenn., Atlanta and Charlotte, N.C. are seeing rising demand for apartments.

Strong economies are quickly filling new apartments in Southeast cities including Charlotte, N.C., Nashville, Tenn. and Atlanta.

“The Southeast’s major metros have posted terrific apartment sector performance during this cycle,” says Greg Willett, chief economist for RealPage Inc., a provider of property management software and services based in Richardson, Texas. “Investment returns have rivaled the results generated in traditionally favored gateway markets, without the volatility sometimes seen in this part of the country during the past.”

Charlotte and Nashville rank among the markets where construction has been the most aggressive in this cycle. In Charlotte, apartment inventory has grown by an average of 3.6 percent per year since early 2010, the fastest expansion rate nationally, according to RealPage. Nashville follows close behind, with annual inventory growth averaging 3.3 percent, according to Willett.

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

Special Incentive for Property Buyers: A Foreign Passport

When Natalia Yavorska and her husband first considered buying a holiday retreat somewhere warmer than their Ukrainian homeland, they were drawn to the Canary Islands.

A vacation to the Spanish archipelago in 2012 left them eyeing land on the southwest coast of the island of Tenerife, and while the initial attractions were the golf courses and ocean views, the deal was sealed by a special extra that came with their purchase.

“The fact that we could get a Spanish residence visa from buying real estate was very important, and that made it an easy decision,” said Ms. Yavorska, a 60-year-old former banker from a town near Kiev.

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

Can Depreciation Explain the Magnitude of Trump’s Reported Losses?

Tax experts say that while it’s technically possible, it’s probably not the full story.

Last week the New York Times made waves reporting, after combing through a decade’s worth of tax transcripts that it obtained, that Donald Trump reported $1.17 billion in losses in the years 1985 to 1994.

“In fact, year after year, Mr. Trump appears to have lost more money than nearly any other individual American taxpayer,” The Times found when it compared his results with detailed information the I.R.S. compiles on an annual sampling of high-income earners. His core business losses in 1990 and 1991 — more than $250 million each year — were more than double those of the nearest taxpayers in the I.R.S. information for those years, according to the newspaper.

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

GSE Reform Might Really Happen, According to Multifamily Experts

After 10 years of inaction, legislators and agency leaders consider reform of Freddie Mac and Fannie Mae.

Ten years after the federal government seized control of Fannie Mae and Freddie Mac, both Congress and President Donald Trump are calling for change for the two mortgage giants.

“The President is directing relevant agencies to develop a reform plan,” said the White House in a March 27 letter that called on legislators to “end the conservatorship of Fannie Mae and Freddie Mac.”

Not to be left out of the process, the chairman of the Senate Banking Committee, Sen. Mike Crapo (R-Ind.), released his own outline for reform and privatization.

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

Seriously Underwater U.S. Properties Increase From A Year Ago

RVINE, Calif. — May 9, 2019 — ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q1 2019 U.S. Home Equity & Underwater Report, which shows that at the end of the first quarter of 2019, more than 5.2 million (5,223,524) U.S. properties were seriously underwater (where the combined balance of loans secured by the property was at least 25 percent higher than the property’s estimated market value), up by more than 17,000 properties from a year ago.

The 5.2 million seriously underwater properties at the end of Q1 2019 represented 9.1 percent of all U.S. properties with a mortgage, up from 8.8 percent in the previous quarter but down from 9.5 percent in Q1 2018.

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

Investors Go After Industrial Assets in Secondary Markets

Strong population growth and lower prices are luring industrial investors to secondary cities.

Strong economic and population growth in secondary markets is leading to increased investment in industrial real estate in those areas, according to industry experts.

While institutional investors are targeting secondary markets for office acquisitions, investments in industrial properties in those markets are increasing at the same time. In 2018, overall U.S. industrial sales volume totaled $54.9 billion, up 8.9 percent year-over-year, according to an Avison Young spring 2019 Global Industrial Market Report. Total sales volume in secondary markets was close to $3.9 billion as of March 2019, a slight drop from $4.1 billion in March 2018. Industrial sales volume is not expected to surpass the high of September 2018, as most transactions during that time were from large platform and company deals.

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

How to Implement Value-Add Strategies at Apartment Buildings Without Making Them Too Expensive

Careful repositioning decisions can keep apartments affordable for middle-income renters.

Turns out value-add investment strategies, in which developers renovate older apartment buildings, can make apartments too expensive for many lower-income renters, according to industry experts.

“As an industry, we are taking too many class-C apartments and trying to make them class-As,” says Daryl Carter, founder and CEO of Avanath Capital Management, an investment firm based in Irvine, Calif., that focuses on renovating older apartments.

Firms like Avanath take a different approach. They try to renovate apartments in ways that modestly increase rents and also repair deferred maintenance problems like leaky roofs and pealed paint. That can help keep the buildings operating while keeping the units affordable for middle-income renters for decades to come.

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

Multifamily Borrowers Still Have Lots of Options for Constructions Financing

Banks continue to have an appetite for loans on multifamily construction projects.

Investors can still find the financing they need to develop apartment properties.

“If you can get a site to build, there are people who would love to lend on it,” says Bill Leffler, vice president in the multi-housing group of real estate services firm CBRE.

Interest rates remain low and many lenders are willing to make multifamily construction loans. However, these lenders have become more cautious as the cost of construction has grown faster than apartment rents in many parts of the country. Lenders are looking very carefully at the sponsors who ask for construction loans and the markets where they plan to build.

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

How the Interests of EB-5 Investors and CMBS Lenders Can Sometimes Be at Odds

Situations where a property changes hands or defaults may prove tricky for situations where an EB-5 project is financed by a CMBS lender.

A notable characteristic of the real estate capital markets over the last 20 years has been the ability to access non-traditional sources of capital for both debt and equity investment in U.S. commercial real estate. One such source is the EB-5 investment/visa program. Created by Congress in 1990, the EB-5 program creates a fast track for non-U.S. citizens toward a green card in return for capital investment in qualifying U.S. domestic businesses and projects. The EB-5 program has garnered its share of controversy for possible abuses, but can also lower the cost of equity capital for a developer.

An often overlooked issue is the interplay of EB-5 financing with the requirements of a CMBS lender, where the developer, EB-5 investor and CMBS lender have objectives that are in conflict, at least initially. In particular, the EB-5 investor may seek decision-making and investment accrual rights not acceptable to CMBS lenders.

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