Rounds Roundup: October 2015

Friday, October 30, 2015

Why Investors Like Carlyle Are Bullish on Trailer Parks

As investor demand for mobile home parks heats up, especially in areas with high housing demand fueled by tech company growth, Carlyle Group has made its second West Coast buy in the past two months. The equity giant closed on Sunnyvale’s Plaza Del Rey mobile home park last week. Carlyle is reported to have spent around $180M to purchase the 85-acre Plaza Del Rey, which is south of Tasman Drive and west of Lawrence Expressway. The company is among investors grabbing up mobile home rental communities across the nation. Carlyle purchased a majority interest in Pacific Skies Estates in Pacifica last month.

Retailers Focus on Large Distribution Centers, Small Urban Warehouses for Fast Delivery

As third quarter fundamentals continue to show improvement in the industrial sector, retailers are honing their distribution center strategy to meet current e-commerce demands.

Fundamentals for warehouse space have improved steadily over the past five years. The availability rate for industrial properties declined to 9.6 percent nationally in the third quarter, according to a report from commercial real estate services firm CBRE. Net demand for industrial space is on pace to exceed 200 million sq. ft. this year, and the vacancy rate dropped to 7.3 percent, almost a full percentage point down from the third quarter of 2014, according to report from Cushman & Wakefield. Demand for class-A logistics product will continue to fuel the rapid increase in construction through the rest of the year and into 2016, the Cushman report predicts.

Dwight Hotchkiss, president of brokerage services and the national director of industrial with real estate services firm Colliers, says warehouse demand from retailers has been one of the top reasons for the improved industrial picture. Increased online purchasing, driven by rising smartphone and tablet use, has corresponded with retailer demand for more distribution center space.

However, in the years immediately following the recession, retailers trying desperately to follow Amazon’s example engaged in a jumble of distribution center activity. Same-day delivery of products became the goal, but many companies weren’t sure how to achieve it, or whether they had the capital to invest in the infrastructure necessary to get products out that quickly. Omni-channeling entered the retail and industrial lexicon, as retail chains tried various storage use combinations to get products to customers.

Today, two strategies have emerged, Hotchkiss says: A focus on expanding the “first mile” of distribution, such as building massive distribution centers with advanced robotics and RFID technology, to the “last mile,” where e-commerce retailers are leasing up older or smaller warehouses near urban centers to shorten delivery routes.

“We have an expectation in this digital age of more instantaneous delivery,” he says. “A lot more people today are shopping this way. It takes away from the brick-and-mortar storefront and makes more demands on the warehouse space.”

Read entire article here in National Real Estate investor.

Find out more about Liberty at our Youtube page.

To discuss commercial mortgage financing needs contact Liberty Realty Capital.

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Which Type of Protein is Better for Our Kidneys?

from NutritionFacts.org http://www.youtube.com/watch?v=58PBof9oUK8

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Thursday, October 29, 2015

Class-B, Suburban Class-A Apartment Properties Gain Momentum

Class-A apartments in core neighborhoods may no longer be the best investment in today’s market. Vacancy rates are rising for the most expensive apartment communities in urban neighborhoods, research shows.

“The urban class-A market is seeing some pressure. It’s not a crisis by any means, but it’s now an underperforming segment of the market,” says Jay Parsons, an expert with MPF Research, a division of RealPage, Inc., an apartment market intelligence firm. “We expect that to remain the case through 2016 and likely into 2017.”

The pressure is due to the fact that developers are building so many new luxury apartments in urban areas, especially in downtown districts. Vacancy rates are lower and rent growth is steady for apartment communities that don’t have to compete so hard to attract renters—including class-A apartment communities in suburban areas, where there isn’t so much new construction, and class-B apartment communities everywhere.

“Class-A vacancy rates will continue to rise, while class-B vacancy should decline as few developers build class-B buildings,” says Barbara Byrne Denham, economist with New York City-based research firm Reis Inc. “Rents should continue to rise, although the rate of growth for class-A rents will be lower than it has been. The rate of growth for class-B rents should stay the same.”

Vacancy rates fall for class-B apartments

Usually, class-A communities have significantly fewer vacant apartments than class-B communities. Over the last dozen years, from 2003 to present, the class-A apartment vacancy rate averaged 5.2 percent. That’s 40 basis points lower than the vacancy rate for class-B apartments. But that difference has vanished as class-B apartments catch up to class-A—both had an average vacancy rate of 4.9 percent over the last two years, according to data firm Axiometrics Inc.

Read entire article in National Real Estate Investor here.

Find out more about Liberty at our Youtube page.

To discuss apartment mortgage financing needs contact Liberty here.

The post Class-B, Suburban Class-A Apartment Properties Gain Momentum appeared first on Liberty Realty Capital Group.

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Wednesday, October 28, 2015

“Veg-Table” Dietary Nitrate Scoring Method

from NutritionFacts.org http://www.youtube.com/watch?v=m8rKY7OycH4

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Monday, October 26, 2015

Everything You Need to Know About Commercial Solar

As the price of solar panels continues to drop–they’re already 80% lower then in 2008–more commercial companies are finding several reasons to switch over. Actually, make that several billion reasons. The commercial sector consumes more than 1.3 trillion kWh each year, and since the average electricity rates for commercial users have inched up more than 20% in the past 10 years—from $0.08/kWh to more than $0.10/kWh—that adds up to an increase of tens of billions of dollars in utility bills. So it definitely makes sense for companies to generate their own electricity. So much so, that it could become the top source of electricity by 2050.

The Challenges

But while the benefits are promising, there are still some challenges. For starters, there’s always a possibility that Congress won’t extend a 30% tax credit for solar power beyond 2016. That would deliver a financial blow to commercial and utility scale projects. Meanwhile, smaller commercial companies are already facing the hurdle of high upfront costs. Fortunately, solutions like third-party ownership—where a third-party takes on the initial costs of designing, constructing and owning the solar system, then sells the electricity to the customer at lower rates—help mitigate that problem. Then there’s the issue of land. The National Renewable Energy Laboratory (NREL) estimates that a 100% solar America would require solar installations on up to about 0.6% of the country’s total land area. Or roughly the size of West Virginia.

Omega 3s, Prostate Cancer, and Atrial Fibrillation

from NutritionFacts.org http://www.youtube.com/watch?v=OC2iwQcfZwA

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Friday, October 23, 2015

The 11 Largest EB-5 Projects in America

The EB-5 Program allows for foreign investors to have stakes in US developments while also reducing costs for US developers and helping to create regional jobs. So far, $3.7B has streamed into major US cities, such as NYC and San Francisco. “EB-5 is an alternative source of funding for good projects and to create more jobs quicker,” US Immigration Fund VP Nicholas Mastroianni tells Bisnow. “It allows them to free up capital to do more projects.” Here are 11 of the largest and most important projects funded by EB-5 in the country.

What are the Healthiest Foods?

from NutritionFacts.org http://www.youtube.com/watch?v=SnqVN56EjrM

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Thursday, October 22, 2015

Commercial Lending Network

http://ift.tt/1PD6bpdPartial list of lenders and lender types in the commercial mortgage broker community

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Wednesday, October 21, 2015

Shipping Containers: The New Eco-Homes

Shipping container homes are the biggest trend in sustainable architecture of today. Discover the innovative solutions they offer for green and off-grid living.

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Laughter as Medicine

from NutritionFacts.org http://www.youtube.com/watch?v=yZqCEGGy7NI

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Tuesday, October 20, 2015

The Cost of Operating a National Shopping Center

The Institute of Real Estate Management (IREM), an international community of real estate managers, collected the national median income for open shopping centers based on average actual occupancy (AAO). The findings range from $15.28/SF to $25.45/SF. The Northeast and Mid-Atlantic regions reported the highest income/SF for open centers. The individual expense categories represent open shopping centers by proportion of total operating cost based on AAO. Insurance and taxes accounted for 45% of total operating costs; services consumed 14.2%; maintenance and repair and utilities accounted for 8% and 8.7%, respectively.

Click here to download the full report.

Monday, October 19, 2015

Investors Score High Yields for Older, Less-Expensive Rental Homes

In many markets, high rents and relatively low home prices are providing solid investment returns for single-family home rentals.

“It’s still a good time to buy rental single-family homes,” says Daren Blomquist, vice president with data firm RealtyTrac.

The highest yields for these types of properties can often be found in secondary and tertiary neighborhoods in secondary and tertiary markets, however, far away from the places where the largest institutional investors have bought their thousands of rental homes. Somewhat older homes in older neighborhoods are benefiting from rent growth and strong demand for rental housing.

The deals are out there

The rents are rising at single-family rental homes across the country. Rental rates on new leases rose an average of 4.5 percent nationally over the past year, up from a rate of 3.4 percent in July 2014.

“Strong job growth and historically high occupancy rates are fueling higher rents,” according to John Burns Real Estate Consulting.

The average investment return on rental homes is strong and getting stronger. The average gross rental yield is nearly 9 percent, according to the latest report from RealtyTrac.

Read entire article here in National Real estate Investor.

Find out more about Liberty at our Youtube page.

To discuss commercial mortgage financing needs contact Liberty here.

The post Investors Score High Yields for Older, Less-Expensive Rental Homes appeared first on Liberty Realty Capital Group.

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Small Commercial Real Estate Financing – Liberty Realty Capital Group

from Liberty Realty Capital Group http://www.youtube.com/watch?v=2IzFD0hNTgo

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Mediterranean Diet and Atherosclerosis

from NutritionFacts.org http://www.youtube.com/watch?v=uiKknQ3TajM

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Friday, October 16, 2015

Weyerhaeuser Launches $190M Dierks Sawmill Project

One of the oldest sawmill operations in the state is undergoing a $190 million rebirth at its historic southwest Arkansas home. Site preparation for the new Weyerhaeuser complex at Dierks (Howard County) is winding down as the project shifts into a new phase of construction.

“We’re in the process of setting up the concrete batch plant,” said Scott Copas, president and CEO of Little Rock’s Baldwin & Shell Construction Co. “We’ll be starting work toward the end of the month.”

The new facility will have an annual production capacity of 387 million board feet, 25 percent more than current capabilities.

A joint venture of Baldwin & Shell and Bass Commercial Concrete LLC of Little Rock will oversee the production and pouring of 40,000 cubic yards of concrete during the next 16-18 months.

The new sawmill will adjoin the east side of the current location, where lumber production has occurred continuously for more than 100 years. The old facility will continue production on the west side of Holly Creek until the new one is fully operational.

Weyerhaeuser employs about 250 at the Dierks complex, which generates jobs for scores of loggers who cut and transport timber to supply the sawmill.

Four drying kilns will be the first piece of the new complex to come on line. The old facility will be demolished in phases, just as the new one is built in phases.

View entire article on Arkansas Business here.

To discuss commercial mortgage financing needs contact Liberty Realty Capital here.

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Optimal Diet: Just Give it To Me Straight, Doc

from NutritionFacts.org http://www.youtube.com/watch?v=jY_gcN4NXus

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Thursday, October 15, 2015

Commercial Real Estate Mortgage – Liberty Realty Capital Group

from Liberty Realty Capital Group http://www.youtube.com/watch?v=hk5EJJHmrvw

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CMBS market steady despite widening spreads

Despite concern from some – including the Federal Reserve – about widening spreads on investment-grade commercial mortgage-backed securities, metrics on CMBS issuances and falling delinquencies indicate a fairly sunny outlook.

In minutes detailing the Federal Reserve’s meeting last month – in which the Fed decided it would maintain interest rates near zero – the central bank noted that spreads on CMBS “widened noticeably in August, reportedly a result of heavy issuance as well as the increased volatility in broader financial markets.”

But analysts have pointed to metrics indicating such conditions as more of a temporary blip than a sign of a more pronounced slowdown in the controversial market.

“There has been a widening of spreads,” Sean Barrie of CMBS analytics firm Trepp told The Real Deal, citing “a lot of deals stacking the opposite ends of the spectrum” in terms of loan-to-value ratio. Barrie noted, however, that so far October has “seen spreads stay even keel,” which he characterized as a “good sign.”

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Wednesday, October 14, 2015

Everything in Moderation? Even Heart Disease?

from NutritionFacts.org http://www.youtube.com/watch?v=N6nf9weAp0k

from roundsroundup http://ift.tt/1NcqlTk

Tuesday, October 13, 2015

Four Strategies to Address Catastrophe Property and Liability Exposures in Real Estate Sector

Managing the various, often-volatile property and liability risks that commercial real estate owners and managers face daily requires a vigilant risk management strategy that includes frequently evaluating risks and assessing insurance programs to ensure proper coverages are in place. For instance, when it comes to estimating potential losses from such catastrophes as hurricanes and earthquakes, real estate companies are challenged by the inadequacy of modeling tools. The inherent low-frequency rate of catastrophic event also means standard actuarial techniques are not as effective. On the liability front, making sure policies align with contractual exposures requires a significant amount of due diligence combined with real estate risk management expertise. All of these challenges point to a greater need for real estate companies to partner with risk management experts that have a thorough understanding of the industry’s unique challenges. Additionally, companies need to stay informed on the changing risk environment and latest risk management techniques that can help to mitigate their financial exposures. Following are a few strategies addressing catastrophe property and liability exposures in real estate.

View entire article at National Real estate Investor.

Find out more about Liberty at our Youtube page.

To discuss commercial mortgage financing needs contact Liberty Realty Capital Group.

The post Four Strategies to Address Catastrophe Property and Liability Exposures in Real Estate Sector appeared first on Liberty Realty Capital Group.

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Commercial real estate financing – Liberty Realty Capital Group

from Liberty Realty Capital Group http://www.youtube.com/watch?v=bgy7yhX4L9Y

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Use Your Senses: Essential Oils for a Healthier, Happier You

Discover simple ways to use essential oils in your home to create a healthy, happy lifestyle and environment.

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Monday, October 12, 2015

Kiwifruit for the Common Cold

from NutritionFacts.org http://www.youtube.com/watch?v=y8SYs-b5QYs

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Sunday, October 11, 2015

Commercial Mortgage Financing – Liberty Realty Capital Group

from Liberty Realty Capital Group http://www.youtube.com/watch?v=BEpDzCtUehM

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Friday, October 9, 2015

Cholesterol and Alzheimer’s disease

from NutritionFacts.org http://www.youtube.com/watch?v=HtpvsT5vGCg

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Thursday, October 8, 2015

Moody’s, RCA: CRE Prices Top Pre-Recession Levels

Moody’s and RCA’s joint Commercial Property Price Indices (CPPI) reveal that the CPPI rose 1.6% in August, thanks in large part to a 1.8% rise in its best-performing segment, central business district. Central business district office has been the top performer for the past three months, rising 6.3%, while suburban office comes in second, rising 3%. The CPPI also topped its November 2007 peak for the first time, adjusting for inflation. It’s now 14.5% above its pre-crisis peak on a nominal basis, and 1.5% above when adjusted for inflation. Additionally, apartment prices exceeded their pre-crisis peak by 33%, with core commercial property prices about 8% higher than their previous peak. [Moody’s]

Wednesday, October 7, 2015

Giving Well: Practical Gift Ideas for Everyone

Check out these ideas for useful gifts that will delight your loved ones.

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Sprinkling Doubt: Taking Sodium Skeptics with a Pinch of Salt

from NutritionFacts.org http://www.youtube.com/watch?v=vJNDBjaPLGY

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Monday, October 5, 2015

Investor Competition Intensifies for Medical Office Properties

Demand for stabilized medical office buildings (MOBs) and new development is on an upswing, according to market experts, with cap rates matching pre-recession record levels.

The average cap rate for performing MOBs declined to 6.5 percent in the first half of 2015, almost reaching the record low of 6.2 percent achieved in the third quarter of 2007, according to a recent report from health care advisor firm Brown Gibbons Lang Real Estate Partners. Vacancy in the MOB sector has dropped to 10.9 percent, one of the lowest rates of any commercial property type.

The investment sales market is healthy from the demand perspective, according to the report, with 1,176 transactions completed through the first half of the year, totaling about $11.9 billion. In comparison, there were 950 transactions totaling $9.8 billion completed during all of 2014. Christopher Stai, managing director at Brown Gibbons, says among other trends, provider-based clients are conducting strategic reviews and looking closely at monetizing both core and non-core assets, transferring ownership and valuation risk, and redeploying capital towards growth opportunities and other core areas of their business, while maintaining a degree of control over the assets.

See entire article in National Real Estate Investor.

Find out more about Liberty at our Youtube page or
visit our website for more on commercial mortgage finance.

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Treating Ulcerative Colitis with Diet

from NutritionFacts.org http://www.youtube.com/watch?v=3mWHBuFPtPA

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Friday, October 2, 2015

Morgan Stanley: Crowdfunding Loans Showing Up in CMBS

Crowdfunding has become a hit in real estate circles, providing a new way to raise capital—and a nice way for investors to get a piece of the action with as little as $1k. But who knew it would find its way to CMBS? Morgan Stanley analyst Richard Hill did some digging, discovering three loans (worth $71M total) made to Colony Hills Capital—underpinning two CMBS deals—secured against a portfolio of five multifamily properties. And here’s the kicker: this portfolio received $12M of crowdfunding on EarlyShares.com (an ad that can still be found here), Morgan Stanley says, which could signal a new trend. It’s an “untested ownership structure in CMBS,” Richard says. While it’s something to pay attention to, “the question becomes, how many of these are showing up in CMBS and, more importantly, what happens when these things go bad?” Richard says. “I really don’t know.” [Bloomberg]

The Okinawa Diet: Living to 100

from NutritionFacts.org http://www.youtube.com/watch?v=mryzkO5QWWY

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Thursday, October 1, 2015

EB-5 Expiration Raises Big Questions for Developers

The wildly popular EB-5 program, which grants green cards to foreign investors, is set to expire today, raising big questions for both developers and investors. With the mass influx of foreign capital, EB-5 has been a winner among Chinese investors, with 90% of EB-5 visas granted going to China, pouring in nearly $4B since 2009 along the way. Developers, big and small, are bullish on EB-5, too, with a number using such funds to finance big projects. Related Cos, the developer of New York City’s Hudson Yards, raised a record $600M, using a “cash-for-visa” deal structure. Most recently, Macklowe Properties revealed plans to raise $100M in EB-5 funds for 1 Wall St, a $1.5B condo conversion in Lower Manhattan.