When Too Big Fails to Get Bigger

 ...Here we go again. The big guys almost ruined our economy and the sentiment then was that banks would need to atrophy in order to continue as a viable part of our system without the threat of another catastrophe. Time heals all wounds but the short time frame and the issues we are still confronting. Have we all got out blinders on?

Kennedy Wilson sells San Jose’s 360 Residences for $118M


This is another significant multi-family deal in the Bay Area. Ultimately it will end up being sold off as condos. In the meantime though it is a spectacular new apartment project in downtown San Jose.

Success factors take 90,000 square feet in Jack Myers' empty South San Francisco building

This lease up is a sign of true recovery. The office project Centennial Towers looked like it was dead in the water a few years ago and Mr. Myers has patiently fought his way out of what must have been a very stressful waiting period.

San Francisco Landmark Multifamily Property Hits Market for First Time

Grosvenor Suites is a beautiful building however many of the units have basically been converted hotel rooms. I was shocked to hear that the price is well above $70M. They are getting tremendous rents but it is a big number. The success of this property will be the furnished corporate stay market.

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Time to Buy in Florida... Carefully!

With the economy slowly recovering it might make sense to look at Florida as an opportunity especially with pricing on the West Coast reaching all time highs. Barrons is looking at it from a single family perspective with home prices at a high of $211,000 in 2006 compared to $79,000 in 2012. With rents solid even in Florida, it seems a logical move to invest while pricing is at the bottom.

U.S. house prices reach 9-year low, index shows

 

"Surely we must be close to the bottom of the pricing. With the strong rental market it is a likely scenario where the CRE market steps in and buys in bulk. Of course this is happening now but with the rental market at just 5% vacancy nationwide, there is high likelihood of more investment buyers stepping in."

$300 billion investment in CRE expected for 2012

 

Though the two major fundamentals, jobs and housing, are still shaky, there is so much capital held back today that the next five years should see massive investment in the stability of commercial real estate, according to a joint report. Click here for more information

REO rental program to capture 25% of foreclosure pipeline

This program presents opportunity for a huge shadow market. At 20% of 7.5m homes, that comes to 1.5m rental units. It shouldn’t affect the overall rental market; however it is still a big number. It also indicates a large pool of investors buying homes in bulk to rent out. Even Warren Buffet has mentioned that he’d like to buy a “couple of hundred thousand homes”.

2012 Predictions for the US Commercial Real Estate Capital Markets

 

 

Investment volume across the major property types in the US will grow by 50% to approximately $300b in 2012. Commercial real estate remains very attractive relative to other asset classes Equity will be both plentiful and more motivated over the coming year.

 

Global Real Estate Investment hit $604B in 2011

 

According to Global Investment Atlas, 2011 investment increased to $604 billion - the second highest in 10 years. From an initial viewpoint it looks like a pretty good number, however when taken from an overall evaluation of the market where the value of Global Institutional Real Estate is about $24.5 Trillion, the number at $604 billion is miniscule. Total for U.S. Real Estate Investment will reach around $200 billion. The industry in essence is stalled.

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