- The Phenom Behind Blackstone’s Real Estate Machine “Blackstone Group real-estate business has grown nearly six-fold over the past eight years, surpassing private equity to become the firm’s largest division and biggest source of profits. Behind that meteoric rise is a woman whose ascent has followed a similarly steep trajectory. Kathleen McCarthy landed a promotion earlier this year that vaulted her into a select group of women who have reached the upper echelons of the male-dominated worlds of real estate and private equity.” (Wall Street Journal, subscription required)
- Decade After Housing Crash, Fannie Mae and Freddie Mac are Uncle Sam’s Cash Cows “When the housing market began its epic and historic free-fall in 2008, mortgage giants Fannie Mae and Freddie Mac faced imminent collapse. Outstanding loan portfolios of approximately $5 trillion were in danger of default, and debate raged over whether to save the institutions that owned or guaranteed about 40 percent of all home loans and helped so many average Americans buy residences. The Treasury Department stepped in with a major bailout that July. That turned out to be a vastly profitable move for Uncle Sam. And it has been paying off ever since.” (CNBC)
- Between the Slices of Sandwich-Lease Real Estate Investing Strategy “If you don't have the money for a down payment to buy a rental property for great cash flow, don't despair. There is a strategy that isn't widely advertised that can provide rental income without buying the home. You read that right: You don't have to own the home. It isn't a strategy for every market or every investor, but when it works, it's really a nice profitable, low-cash investment. It's called the sandwich lease strategy.” (Forbes)
- Measuring Emanuel’s Imprint on Chicago’s Skyline “Outgoing Mayor Rahm Emanuel has rewritten Chicago's commercial real estate development playbook since taking office in 2011 with two goals in mind: first, boosting projects downtown to help lure residents and jobs into a city roaring back from the Great Recession, and then leveraging those investments to try to help poorer communities on the South and West sides.” (Crain’s Chicago Business)
- Midtown Tower at 183 Madison Sells for $222.5 Million “The 19-story 183 Madison Ave. has been sold to APF Properties for $222.5 million. The deal that closed late last month was marketed by CBRE’s Darcy Stacom, Ryan Spector and Bill Shanahan on behalf of Tishman Speyer and Cogswell Lee Development, which purchased it in 2014 for $185 million. The 272,000-square-foot building on the southeast corner of E. 34th Street has tenants that include fashion company Dreamwear, the Spector Group architects and the Domus Design Center in the retail space.” (New York Post)
- AIG Modifies $275M Loan as Gap Closes Herald Square Store “A loan modification filed today in city property records is evidence that widespread retail closings continue to reverberate. According to the New York City Department of Finance document, AIG Investments has agreed to renegotiate mortgage terms for its $275 million loan on Herald Towers at 1282 Broadway after the building’s two biggest retail tenants, The Gap and Forever 21, announced that they would not renew their leases.” (Commercial Observer)
- The 16 Cities Where Americans Struggle the Most to Pay Rent “Housing is getting more unaffordable across America. That's largely because since the recession, home prices have been rising faster than incomes, and builders aren't able to keep up with the demand for affordable housing. It's affecting both homeowners who pay mortgages and people who rent. According to Zillow, the median US rent requires 28.4% of the median income, up from the historic average of 25.8%.” (Business Insider)
- Government Regulations Account for 33 Percent of Multifamily Costs in U.S. “This week the National Association of Home Builders told the U.S. Congress that layers of excessive regulation translate into higher rents, reduced affordability for consumers and on average, account for almost one-third of a multifamily project's development and building costs. Testifying on behalf of NAHB before the House Financial Services Subcommittee on Housing and Insurance, Steve Lawson, chairman of The Lawson Companies based in Virginia, said that overregulation of the housing industry is felt at every phase of the building process.” (World Property Journal)
- Sprouts CEO on What It’s Like Battling Amazon, Whole Foods and Walmart “Despite the impressive roster of competitors, organic grocer Sprouts Farmers Market is getting the job done. The company notched second quarter same-store sales growth of 2%. Earnings growth clocked in at 10% vs. the prior year. Sprouts continues to push forward with new store openings, recently eclipsing 300 locations in operation. Shares have gained 10% year to date.” (The Street)
- Unintended Consequences: TIFs, Article XI and Opportunity Zones “Government and municipalities often conjure up incentives to achieve their economic goals. Often, it starts out with the best intentions. Affordable housing programs help tenants living near the poverty line afford decent housing. However, never underestimate the ingenuity of developers and the sway of lobbyists onto politicians to have the end result skew what the architects of the program had intended. I’ve talked before about the HUD 221 (d) 4 program.” (Commercial Observer)
0 comments
Hide comments