Friday, August 31, 2018

Coca-Cola Buys Costa for £3.9bn

Multinational carbonated soft-drink company Coca-Cola has purchased Costa Coffee from Whitbread in a deal worth £3.9bn earlier today.

Whitbread is listed on the FTSE100, London Stock Exchange which saw shares rise 17% this morning as soon as the deal was announced.

Founded in 1742 by Samuel Whitbread, Whitbread is now a multinational hotel chain known for their ‘Premier Inn’ brand, which operates 750 hotels, 65,000 rooms across the UK.

Costa Coffee was founded in 1971 and acquired by Whitbread PLC in 1995 for a sum of £19m.

The coffee shop grew massively over the years with 2,861 stores in 30 different countries.

Alison Brittain, Chief Executive from Whitbread, said: This transaction is great news for shareholders as it recognises the strategic value we have developed in the Costa brand and its international growth potential and accelerates the realisation of value for shareholders in cash.

“This combination will ensure new product development, continued growth in the UK and more rapid expansion overseas.”

By the end of 2010, Costa Coffee overtook Starbucks in market share-owning 37.6%; Costa currently has 2,300 restaurants in the UK and further 6,000 Costa Express vending machines.

Mrs Brittain also added the sell-off to Coca-Cola would allow them to focus more on Premier Inn. The company was already looking to demerge Costa before the offer came through.

James Quincey, Chief Executive of Coca-Cola, said: “Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide.

“Hot beverages is one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market through a strong coffee platform.”

https://www.infabode.com/hubs/general-global-real-estate/hub_posts/76875?inf=n-YZ5lWjoVEMyX&utm_medium=email&utm_source=digest

Moody’s To Buy Commercial Real Estate Data Provider Reis For Nearly $300M

Moody’s Analytics, the non-rating subsidiary of Moody’s, agreed to a merger with the nearly 40-year-old New York-based firm for $278M in a cash transaction worth $23 per share, the companies announced in a press release.

When the deal closes in the fourth quarter, Reis will become a wholly owned subsidiary of Moody’s. Moody’s purchase includes all shares of Reis currently owned by the company’s management, which amounts to an 18% stake. After that, Moody’s will purchase all remaining shares and close the transaction.

Moody’s is funding the deal with cash and short-term promissory notes.

Moody’s has been acquiring or investing in research and analytics companies for years, including its strategic partnership and investment with CompStak in October.

This move to bolster its information gathering was announced amid news that Moody’s rating service will no longer list and rate WeWork, citing a lack of information, The Real Deal reports. At the time it was removed, the coworking giant had a junk rating of B3 due to the fact that its expenditures and debt obligations are increasing faster than its incoming revenue.

https://www.bisnow.com/national/news/technology/moodys-analytics-merger-reis-92366

Finding A New Purpose For Old Buildings: Adaptive Reuse Is On The Rise

Ever since nationally renowned preservationist Dana Crawford saved Denver’s historic Larimer Square from the wrecking ball in the 1960s, adaptive reuse projects have become part of the city’s fabric.

REI is located in a 90K SF building built in 1901 to house the boilers and engines used to generate power for the Denver Tramway Co.

In addition to Denver’s most famous adaptive reuse projects, such as Union Station, The Source, REI and Stanley Marketplace, there are some newer, lesser-known examples. Earlier this month, Westside Investment Partners paid $16.5M for the 70-acre Colorado Heights University Campus at 3001 South Federal Blvd., where it is planning to preserve many of the campus’s historic elements alongside new mixed-use commercial and residential development.

Developer Paul Tamburello transformed the former Olinger Mortuary into a mixed-use project that has restaurants, a gym, shops and a salon. There is also the former Sports Authority headquarters building at 1050 West Hampden Ave. in Englewood that Ogilvie Properties Inc. has transformed into the largest climbing gym in the United States, and the former Gothic-revival Methodist Episcopal church that has been converted into The Sanctuary Lofts.

“Adaptive reuse is a creative way to celebrate a project’s history and give it immediate character,” CBRE Economist and Director of Research and Analysis Matt Vance said. “It ties in well with today’s consumer preferences. We are drawn to unique experiences, and adaptive reuse is a way to make a destination feel one-of-a-kind.”

The old Denver Bookbinding building is now home to three restaurants. But repurposing old buildings is no simple task. Determining what the proper use is for an old building is probably the most difficult piece of the puzzle, Crawford said. And then there is the challenge of financing the projects.

“There are an infinite number of problems that come with old buildings,” said Crawford, who is working on repurposing several historic buildings in Trinidad, about 180 miles south of Denver. “The buildings were beautifully designed in the first place, but there are structural problems we have to take care of. My biggest problem is not having enough money.”

But Crawford said saving historic buildings is worth the effort to maintain a city’s character.

Colorado Westside Investment Partners will preserve many of the historic elements of the former Colorado Heights University Campus.

“Do people want to live in plywood boxes, or do they want to live in a community that is known for excellence?” Crawford said. “I think adaptive reuse projects are important if people want a good quality of life.”

CCIM Institute Chief Economist K.C. Conway predicts that adaptive reuse projects will make up a greater percentage of investment activity than self-storage and other non-core property types by 2023. But, he said, the commercial real estate industry’s understanding of the adaptive reuse property segment isn’t keeping up with its growth, which will ultimately impede investment and development.

“Denver may rival Chicago, Boston and maybe New York in the number and breadth of adaptive reuse projects in the last 10 years,” said Conway, author of the report “Adaptive Reuse: Turning Blight into Bright.”

Preservationist Dana Crawford converted an old flour mill into the Flour Mill Lofts. Adaptive reuse constitutes up to 2% of all commercial real estate space in the United States today, according to the report. That figure is likely to increase twofold over the next five years to up to 4% largely as a result of store and mall closings.

In his report, Conway points to the former Stapleton Airport, which ceased operations in the 1990s and was redeveloped as a residential and retail neighborhood. The old air traffic control tower remained and ultimately was transformed into Punch Bowl Social, a family-friendly entertainment venue.

“It’s a great example of what you can do that doesn’t compete with downtown,” Conway said. “It was very innovative and unique.”

https://www.bisnow.com/denver/news/mixed-use/finding-a-new-purpose-for-old-buildings-adaptive-reuse-is-on-the-rise-92326?

Urban Outfitters Destination Multi-Brand Retail Complex Sees Early Success

Urban Outfitters’ new lifestyle center in suburban Pennsylvania has only been open since Aug. 16, but the company’s CEO is already calling it a success.

Urban President and CEO Richard Hayne said on an earnings call that Devon Yard, a 6-acre, five-building retail village that houses multiple brands owned by the company, is doing “extremely well,” the Philadelphia Business Journal reports.

Hayne singled out the eateries in the complex, Amis Trattoria and Terrain Garden Cafe, for having “enormous success” in their first week of operation. Urban Outfitters, headquartered at the Navy Yard, is treating Devon Yard as a prototype for similar locations across the country, Hayne said in the call to investors.

The Terrain brand also encompasses a garden shopping center and a 150-person event venue on the grounds, which are joined by a large-format Anthropologie and a BHLDN wedding store.

The complex, on land owned by E Kahn Development Corp., is meant to reinvigorate the all-day shopping experience that malls once filled, before the e-commerce revolution. Thanks to Terrain, the local stone-and-reclaimed wood complex is covered in plants, which remind many locals of the Waterloo Gardens that used to reside on the site.

Terrain is also at the center of what might be Devon Yard’s masterstroke: its wedding planning. Couples looking to get married can buy their outfits at BHLDN and have a venue at their disposal at Terrain Garden, a flower supplier in the same place, a registry location at the Anthropologie and a place for a rehearsal dinner at Amis. The setup is enticing enough to bring in 150 reservations based on renderings alone, according to the Philadelphia Inquirer.

https://www.bisnow.com/philadelphia/news/retail/urban-outfitters-devon-yard-retail-village-early-success-92331?

Saturday, August 25, 2018

Hotel Rooms At The New Waldorf Astoria Will Be Bigger Than A Studio Apartment

Flickr/Viaggio Routard

The Waldorf Astoria in New York City

China’s Anbang Insurance Group is moving ahead with the next chapter of its Waldorf Astoria redevelopment as it reportedly looks to shed billions of dollars worth of U.S. luxury hotel assets. The firm announced Tuesday that it will start with the second phase of construction on the landmarked building at 301 Park Ave., with completion now slated for 2021 — a year later than expected.

AECOM Tishman, which first began interior demolition in November last year, will now move ahead creating around 350 condominiums and about 350 new hotel rooms, from the formerly 1,100-plus room iconic hotel.

“Some executives flew in from Beijing last week to finalize the contract with Tishman and to celebrate,” a source told the New York Post.

The smallest rooms in the hotel will be 650 SF, according to the release, and architect Skidmore, Owings & Merrill will oversee the entire project. Public spaces in the building will remain open to visitors.

Skidmore, Owings & Merrill/Methanoia x

Rendering of the Lexington Avenue foyer of the renovated Waldorf Astoria in Manhattan

“The Anbang team is incredibly proud of the tremendous work accomplished so far at Waldorf Astoria New York, as we now enter the next phase of the building’s historic revitalization,” Anbang International Executive Director of Real Estate Development Andrew Miller said in a statement. “Anbang understands the magnitude and responsibility of this project and remains committed to delivering an exceptional property befitting of the Waldorf Astoria name. We are confident that AECOM Tishman is the firm to help us do just that.”

Anbang was taken over by Chinese government earlier this year after its chairman, Wu Xiaohui, was charged with corruption. He was sentenced to 18 years in prison.

Reports emerged this week that Anbang is planning to sell as many as 15 luxury hotels that it bought about two years ago from Blackstone Group for $5.5B. The portfolio includes Essex House in Manhattan and the InterContinental Hotels in Chicago and Miami, but not the Waldorf Astoria. Anbang paid Hilton $1.95B for the hotel back in 2014, still a record for a single-asset hotel purchase in the U.S.

https://bit.ly/2wpjmVE

HELOs: New Alternative To Reverse Mortgages

Reverse mortgages can be a useful tool for seniors attempting to convert the equity in their home into cash for living expenses or other retirement purposes. The loan is usually paid out over time instead of as a lump sum.

There are no repayments as long as the senior taking out the loan continues to live in the home, properly maintains it and pays all the necessary property taxes and other property-related fees. Once the primary borrower passes away, moves away or sells the property, the loan must be repaid.

The reverse mortgage loan, along with accrued interest, is repaid with the proceeds of the sale of the home. If any equity remains in the home, the proceeds go to the seller.

In essence, with a reverse mortgage, you are selling the equity in your home back to a lender in increments.

The majority of reverse mortgages are Federal Housing Administration (FHA) loans under the Home Equity Conversion Mortgage (HECM) program. Under the HECM program, if there aren’t enough proceeds from the eventual home sale to cover the loan balance, the FHA will cover the difference.

To qualify for an HECM, you must be at least 62 years old and have sufficient equity in your home. Your home must also meet other FHA property guidelines and standards. Before the loan is approved, you must agree to consumer counseling and education as part of the overall HECM program.

Changes made in 2017 by the Department of Housing and Urban Development (HUD) increased restrictions on HECM borrowing limits and otherwise limited the number of people who could qualify. Private reverse mortgages fill the gap to complement HECM offerings, opening up reverse mortgages to potential borrowers who don’t qualify for FHA loans.

One Reverse Mortgage, a subsidiary of Quicken Loans, recently introduced a variation known as a Home Equity Loan Optimizer (HELO) to expand access to reverse mortgages. Their product is available directly through retail outlets and will soon be available to mortgage brokers.

HELOs allow higher loan limits (up to $4 million, compared to the HECM limit of $679,650) and they don’t require mortgage insurance. For seniors that are dealing with debt, HELOs allow for debt consolidation through paying off the debts at closing — allowable with traditional mortgages but not with HECMs.

There are no property restrictions for a HELO. Thus, you can use a HELO for non-FHA approved condominiums and other unique properties. HELOs allow greater underwriting flexibility by taking into account the value of unusual property characteristics such as solar panels. They also allow concessions by sellers when a reverse mortgage is used to buy a home.

HELOs do have a few important restrictions that HECMs don’t have. The minimum credit score to qualify for a HELO is 640, and non-borrowing spouses can’t be listed on the HELO. In other words, the non-borrowing spouse can’t continue to live in the home if the borrowing spouse passes away or permanently moves out. Properties must be worth at least $350,000 to qualify, and two appraisals are required if the property’s value is greater than $2 million.

Could a HELO work for you? Is an HECM a better choice? Check with your lenders to verify your options, and make sure that you thoroughly understand the terms and limitations of each style of reverse mortgage. More importantly, make sure that a reverse mortgage is the best financial product for you. There may be better ways to meet your financial retirement goals.

https://bit.ly/2BMVGQJ

AirBnb To Open Up to 14 More Home-Sharing Buildings by 2020

In a joint venture with development company Niido, Airbnb is set to debut a company-branded building in Nashville, Tennessee, with many more in the works. The latest almost-hotel project will be the company’s second announced Airbnb-branded building, and will lease apartments to a hybrid of long-term renters and short-term visitors. The concept, called “Niido Powered by Airbnb,” is part of a larger push by Airbnb to team up with real estate developers and facility managers, a group that has frequently argued that the home-sharing company enables renters to illegally sublet their apartments. In December, Brookfield Property Partners LP agreed to invest as much as $200 million into Niido’s efforts to turn residential apartment buildings into Airbnb-branded complexes.

According to Bloomberg, the new project is a takeover of an existing 328-unit building, called the Olmsted, in the SoBro neighborhood of downtown Nashville, a popular tourist destination for music lovers and bachelor parties. Under Niido’s new ownership, current residents of The Olmsted will be encouraged to sublet their units to Airbnb travelers for a maximum of 180 days per year. Airbnb and Niido will take 25 percent of the income the residents generate from home-sharing. The two companies will jointly rent a portion of the remaining vacant units through Airbnb’s platform for short-term stays.

By the end of 2019, Airbnb and Niido will open as many as 14 Airbnb-branded complexes across the country, said Cindy Diffenderfer, co-founder and chief marketing officer for Niido Powered by Airbnb. “We have a pretty aggressive growth strategy,” Differnderfer said. As part of a push to broaden its appeal to more up-scale clientele, Airbnb has added more hotels and hotel-like listings under the label Airbnb Plus. Those sites get regular visits from an inspector to confirm towels are fresh, sheets are matching and that appliances commonly found in hotels, including hair dryers and irons, are stocked. Working in partnership with real estate developers like Niido will help Airbnb offer a more hotel-like experience while operating out of homes and apartments.

https://bit.ly/2My7coi

Ikea’s Small Stores: A Win for Retail CRE Landlords?

When one thinks of an Ikea store, the last thing that likely comes to mind is small.

After all, its mega furniture stores average about 300,000 square feet in the United States, and due to its selective store footprint, some people travel from long distances to shop at Ikeas and even plan a whole day to shop there.

That could change if plans the retail giant has across the Atlantic come to fruition in the United States, though.

Ikea goes small

Instead of its traditional stores on the outskirts of major urban centers, Sweden-based Ikea now plans to hit inner cities. The first store is scheduled to open in the fall, on London’s Tottenham Court Road. Square footage of this store and others to follow, so far only announced in the London area, was not released, but these new stores will obviously be much smaller than its iconic yellow and blue mega big-box locations. Focusing on bathrooms and wardrobes, the store will be geared toward urban customers and reportedly allow them to make purchases of other items online in store and have them delivered.

The company did not release details beyond the London store and that it is seeking other sites in that metro area, but it called its small-store efforts in city centers a “global” approach, which one can assume will eventually include the United States because of its strong following in this country.

Plenty of Stateside Ikea plans in the works

This month, Ikea is making a marketing push in urban areas. This month it is launching the Ikea Inspiration Experience in Chicago and New York City, which is a pop-up display that lets customers walk into rooms that are featured in its 2019 catalog. Additionally, it is having “pop-up catalogs” in other urban areas that are 10 feet by 10 feet.

Meanwhile, Ikea is slowing its new store openings, at least in its traditional large formats, in favor of bolstering online sales in an effort to fight declining revenues. However, the retailer is constructing its second Virginia store, in Norfolk, which will total 331,000 square feet and open in the spring of next year. It will be its 50th U.S. location.

Big boxes shrinking and going urban

If Ikea makes a sincere push into urban areas, it will follow other large-format stores that have done the same over the years and moved from the suburbs to the city.

One of the first big moves was by The Home Depot, when it opened a store in Manhattan in 2004. Since then, many other big retail names have done the same. Target is in the works to open about 130 smaller format stores in urban areas which are between 20,000 square feet and 40,000 square feet. Kohl’s, Walmart and Whole Foods Market have done similar initiatives. Grocer Trader Joe’s has long lines that are legendary in Manhattan and other urban areas.

If Ikea were to make a big push into U.S. city centers, it would no doubt be welcome by landlords. Entire shopping centers are built nearby Ikea’s large-format stores in order to benefit from the huge amounts of traffic the retailer brings in. Its 403 stores globally have 936 million visitors between them annually, averaging 2.3 million per unit. Urban stores will likely be a big hit with urban-dwelling consumers who are used to traveling long distances to reach Ikea’s suburban big-box locations and will no doubt garner plenty of foot traffic.

That will not only benefit the landlords of Ikea-leased buildings but also those nearby with retail spaces for which there will be a spike in tenant demand to be near the retail giant’s smaller-format locations.

https://bit.ly/2BS0Paa

Friday, August 24, 2018

Wells Fargo lays off more than 600 mortgage workers

Wells Fargo is laying off more than 600 workers as it grapples with a slowdown in its mortgage business, a bank spokesman said on Friday.

The fourth-largest U.S. bank has given 60 days notice to 638 mortgage employees across the country, Wells Fargo spokesman Tom Goyda said in an emailed statement, with cuts concentrated in Orlando, Florida; Ranch Cordova, California; Colorado Springs, Colorado, and Charlotte, North Carolina.

“After carefully evaluating market conditions and consumer needs, we are reducing to better align with current volumes,” Goyda said.

Wells Fargo has been making sporadic cuts to its mortgage workforce as part of a bid to rein in costs. These layoffs are the largest so far this year.

The home lending business has struggled as rising interest rates hurt refinancing demand. Wells Fargo’s mortgage banking income fell 33 percent in the second quarter from a year earlier.

The latest cuts were mainly to retail fulfillment and servicing jobs, Goyda said, reflecting a continued slump in application volumes.

Analysts have said such moves address overcapacity and will improve the bank’s efficiency.

Wells Fargo has vowed to cut $4 billion in costs by 2020 in order to grow profits as it operates under a punitive asset cap levied by the Federal Reserve.

https://bit.ly/2MR3LrS

Fannie, Freddie will stop backing single-family rentals

Fannie Mae and Freddie Mac, the government-sponsored enterprises that help lubricate the U.S. mortgage market, will stop backing loans for single-family investment homes in a nod to the growing controversies surrounding that marketplace.

The Federal Housing Finance Agency, regulator of Fannie and Freddie, announced Tuesday that both companies would end pilot programs which were intended to “test and learn” best practices in a market that’s exploded in the aftermath of the financial crisis.

“What we learned as a result of the pilots is that the larger single-family rental investor market continues to perform successfully without the liquidity provided by the Enterprises,” FHFA Director Melvin Watt said in a statement.

“I was glad to see this decision, I think it was a responsible decision and I’m looking forward to continued engagement with (Fannie and Freddie) over ways in which they might modernize traditional investor financing,” said Julia Gordon, executive director of the National Community Stabilization Trust.

Gordon and other housing observers have criticized the enterprises’ decision to get involved in a market in which investors don’t seem to have much trouble raising funds from traditional capital markets sources. The first such step was in 2017, when Fannie guaranteed a $1 billion deal for Invitation Homes , which was then controlled by Blackstone, even as the giant asset manager was preparing an initial public offering.

“I am perplexed to see Fannie Mae place a taxpayer guarantee behind the same private interests whose risky practices led to the millions of foreclosed homes they are now buying up,” Gordon’s organization said in a statement at the time. “These investors so far have had no trouble financing the purchase of tens of thousands of homes without government support.”

But advocates have also increasingly become concerned about the business practices of the institutional investors who’ve decided to become landlords. A recent Reuters report documented extensive, chronic issues for Invitation Homes tenants.

“I think it’s becoming increasingly evident that many of the actors in the single-family rental market pose risks to anyone who’s involved with them,” Gordon told MarketWatch. “We’ve seen a number of newspaper articles and investigative reports that indicate we may need to do some hard thinking about how these landlords are operating in the marketplace. When you have that kind of reputational risk, there’s downside.”

Whether Fannie and Freddie are involved or not, the single-family rental space is likely to continue growing as a part of the housing market. Institutional investors became interested after the housing crisis, when homeowner distress left plenty of homes to be scooped up on the cheap, and when many Americans’ bruised credit or job histories kept homeownership out of reach.

But since then, other, smaller investors have followed the big players. That phenomenon was documented by MarketWatch last month.

And on Tuesday, the National Association of Home Builders noted that the market share of single-family homes built as rentals increased over the past four quarters, to 42,000 from 29,000 over the prior four quarters.

But as the builder group noted, “the primary source of single-family rental homes is not construction but the existing housing stock. In fact, from 2005 to 2015, 56% of the gains in the rental housing stock were due to increases of for-rent single-family homes.”

The National Association of Realtors on Tuesday issued a statement commending the FHFA’s decision. “By financing the purchase of thousands of single-family homes for institutional investors to use as rentals, Fannie Mae and Freddie Mac compounded on inventory shortages and affordability concerns, which are holding back prospective homebuyers across the country,” the industry group said. “NAR applauds today’s FHFA decision, and we look forward to continue working with Fannie Mae and Freddie Mac to help more Americans achieve homeownership going forward.”

https://bit.ly/2NdZwDL

Renters Vs. Buyers: Who Has More Money Left Over?

How much discretionary income do you have left after you’ve paid the monthly bills? Would that change if you were a homeowner instead of a renter, or vice versa?

PropertyShark and RENTCafé considered this question with a study of 52 urban areas. Using data from the Census Bureau and the U.S. Department of Labor, discretionary income was calculated by subtracting basic living costs and housing costs from the median family income in each city. Discretionary income represents your pool of potential savings.

According to the study, homeowners fare better than renters when it comes to having extra discretionary income.

Six of the homeowner markets averaged a monthly debt instead of an income, ranging from a $67 deficit in New Orleans, LA, to a $1,219 monthly loss in Miami, FL. Memphis, TN (-$146), Philadelphia, PA (-$719), Cleveland, OH (-$842), and Detroit, MI (-$905), round out the areas with homeowner deficits.

On the other side of the ledger, 58 percent of the homeowner markets show monthly discretionary incomes over $1,000 and three markets have discretionary incomes over $3,000. Manhattan, NY, leads with $4,692, followed by San Jose, CA, at $3,501 and Washington, DC, at $3,285.

The story is very different for renters. Only twelve of the 52 markets show any discretionary income at all, led by Virginia Beach, VA, at $883. The next highest figure is Austin, TX, at $265. Eleven of the renter’s markets have a monthly debt over $1,000, and two have monthly debts over $2,000: Boston, MA, with a $2,244 deficit and Brooklyn, NY, at $2,091 in the hole.

The PropertyShark study’s conclusion — buy a house to increase your savings — seems strange, but in urban markets where rent can take up large chunks of your income, this logic makes sense.

If you have enough money to be able to afford a home, your household is probably at or above the median income level and you can handle monthly mortgage payments — or you’re older and have already paid off your home. Conversely, if you’re renting, you’re more likely to be at or below the median income level but are still making high rent payments that take up a larger share of your income.

Renters are generally at a disadvantage, since the majority of mortgage loans have fixed interest rates while rents continue to rise. Once a homeowner gets beyond the down-payment-saving phase and actually buys a home, they can enjoy predictability in their housing costs.

How can renters bridge this gap? The obvious way is to find a job that pays considerably more than the median income, but that’s not practical for many urban residents. Renters who aspire to be homeowners will need to take exceptional measures in most cities, such as doubling or tripling up in the same rental space or consider moving to a lower cost-of-living market that still provides a suitably high wage.

The use of median incomes may be skewing homeowner data, given that all of the top five cities for homeowner savings also have high median household incomes (over $9,000 per month). However, homeowners still tend to struggle in certain markets because of very low median household incomes and relatively high costs of living (such as Miami).

How does your household compare? Regardless of your income or your home ownership status, if your discretionary income is low — or outright non-existent — it’s time to revisit the budget and make some changes. With some planning and discipline, you can accumulate more savings at the end of the month. What you do with your savings is up to you.

https://bit.ly/2MzsZMn

Sunday, August 19, 2018

America’s Homes Are For Rent

Want to know a primary reason for our housing market’s severe inventory shortage? Check out the percentages of single-family homes around the country that are not for sale and are not owner occupied:

During the housing crisis, Wall Street investors and companies such as Blackstone, America 4 Rent, HomeUnion and Investable (as well as “mom and pop” investors who bought 1-5 homes near where they lived) scooped up thousands of homes in foreclosure at fire-sale prices. Those investors and businesses fixed up those homes and put them back on the market to rent, not to fix, flip and sell.

Fast forward to today. Those initial players in the rental market are now joined by companies such as Roofstock, a leading tech platform that offers long-distance investors an opportunity to buy single-family home rentals anywhere in the US.

According to ATTOM Data Solutions, there were 43,329 renter-occupied housing units in Quarter 2 2018. That number remained basically unchanged from Q2 2017 and Q2 2016. ATTOM also indicated that the gross annual yield is +10.3%, including an annual 5% vacancy factor, for single-family rental (SFR) owners.

Many SFR owners own their properties in areas often thousands of miles away from where they live and pay rent. Those SFR owners can’t afford to buy homes where they live so they pay rent to work and live in those top tiered markets with the income generated from their tenants living in their SFR homes.

Outfits such as Roofstock make it “easy “ to become a SFR owner. The platform offers potential investors exact address, inspection reports, tenant occupancy histories, current rent information, neighborhood quality reports, information about property taxes and maintenance fees, local property managers and local construction services networks so owners can negotiate jobs and fees for onsite work and services the owner might want or need.

Daren Blomquist, senior vice president of ATTOM, cautions potential owners of SFR properties that “…most of the markets good for buying rentals aren’t going to be good for price appreciation. Don’t expect Seattle from Cleveland or Memphis…SFR owners are not going to build a long of home equity fast. “

Blomquist advises potential investors to hold on to SFR properties for as much as 20 years to realize a return. “(Investors) are best off holding (SFR properties) for the long term in order to realize increasing cash-flow returns they should be able to get as rent rates rise over time.”

https://bit.ly/2Pm1QtS

Saturday, August 18, 2018

Mapping Philly’s 15 historic districts

The City of Brotherly Love is steeped in history, with more than a dozen specific areas certified historic. These areas within the city, from Rittenhouse-Fitler Square to Society Hill, achieve the designation for their collection of historic resources that are linked either geographically or thematically, according to the Philadelphia Historical Commission. If a property is located in a historic district, any proposed changes to it are subject to review by the commission.

That said, it’s not easy earning this designation, which may explain why there are only 15 historic districts* in the city, and we’ve mapped all of them here. One of them, 420 Row in Spruce Hill, became the 15th historic district in early January 2017, seven years after the last designation.

It’s just one interesting way to learn about Philadelphia, through the lens of these small districts, which include everything from a midcentury modern development in Northeast Philadelphia—the first racially integrated in the city—to an enclave of Tudor homes in East Falls.

We’ve included the boundaries of each district, and if you want to learn more about each one, the website link will take you to the official nomination document.

*Editor’s note: The districts are listed in order of the year they were designated, beginning with 2017. We did not include the historic district titled “Historic Street Paving” since the sites are scattered throughout the city.

Philadelphia Historic Districts [Philadelphia Historical Commission]

1. 420 Row

411 S 42nd St
Philadelphia, PA 19104

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Friday, August 31, 2018

Saturday, August 25, 2018

Plenty of Stateside Ikea plans in the works

Big boxes shrinking and going urban

Friday, August 24, 2018

Wells Fargo is laying off more than 600 workers as it grapples with a slowdown in its mortgage business, a bank spokesman said on Friday.

Sunday, August 19, 2018

Saturday, August 18, 2018

1. 420 Row

2. Awbury

3. East Logan Street

4. Tudor East Falls

5. Parkside

6. Greenbelt Knoll

Curbed Philly Newsletter

7. Old City

8. Spring Garden

9. Franklin Delano Roosevelt Park

10. Girard Estate

11. Society Hill

12. Diamond Street

13. Rittenhouse/Fitler Square

14. Park Avenue

15. Main Street Manayunk