The REIT Gamble Paid Off - Forbes.com
Good article indicating that REITs now have access to debt and should be very well positioned from here forward.
Thursday, November 12, 2009
Monday, November 09, 2009
NC State No. 1 Texas No. 2
Article - TechJournal South - The Southeast's Source for Technology Business News
Site selection magazine picks North Carolina over Texas as the number one business climate in America. Football is another story.
Site selection magazine picks North Carolina over Texas as the number one business climate in America. Football is another story.
Sunday, November 08, 2009
BusinessWeek: Another Rough 12 months in CRE
Why This Real Estate Bust Is Different - BusinessWeek
Deals that were "priced for perfection" with unrealistic underwriting assumptions coupled with lower cashflow will cause more lenders to fail in 2010.
Deals that were "priced for perfection" with unrealistic underwriting assumptions coupled with lower cashflow will cause more lenders to fail in 2010.
Tuesday, October 27, 2009
EMC buys 450,000 SF warehouse
EMC buys room to grow - Business - News & Observer
Price: $22.6M ($50/SF)
Seller: Crown Realty
Broker: Chris Norvell, Colliers Pinkard
Location: Imperial Center, Durham, NC
Price: $22.6M ($50/SF)
Seller: Crown Realty
Broker: Chris Norvell, Colliers Pinkard
Location: Imperial Center, Durham, NC
Friday, October 02, 2009
Cerberus hits Homerun with Talecris
Cerberus gets medicine from Talecris IPO - MarketWatch
It is great to see the capital markets open again for NC companies.
Cerebus hit about a 23 bagger with this one.
Investment of $82.5M nets a gain of about $1.8B.
The firm plans to spend about $750M of the $950M in proceeds on "improving manufacturing facilities".
It is great to see the capital markets open again for NC companies.
Cerebus hit about a 23 bagger with this one.
Investment of $82.5M nets a gain of about $1.8B.
The firm plans to spend about $750M of the $950M in proceeds on "improving manufacturing facilities".
Wednesday, September 16, 2009
Blank Check to Blind Pool
Buyout Fund Contemplates a REIT Turn - WSJ.com:
"The move is the latest sign real-estate investors are looking to the public markets for capital at a time banks are reluctant to lend and private capital is scarce. The strategy has paid off for many. Investors have bought more than $15 billion in REIT secondary stock sales so far this year."
"The move is the latest sign real-estate investors are looking to the public markets for capital at a time banks are reluctant to lend and private capital is scarce. The strategy has paid off for many. Investors have bought more than $15 billion in REIT secondary stock sales so far this year."
Tuesday, September 15, 2009
Yet Another Tough Forecast for CRE...
For Commercial Real Estate, Hard Times Have Just Begun - NYTimes.com:
Tough Sledding Still Forecasted for CRE...
"Even though industry lobbyists were able to persuade Congress to extend a loan program aimed at prodding the stalled securitization market back to life, several analysts said it was unlikely to head off a spate of defaults, foreclosures and bankruptcies that could surpass the devastating real estate crash of the early 1990s."
...About $393 billion worth of mortgages are scheduled to mature by the end of next year alone, and an estimated $39 billion more were due to expire this year but have been extended, he said...
...
Tough Sledding Still Forecasted for CRE...
"Even though industry lobbyists were able to persuade Congress to extend a loan program aimed at prodding the stalled securitization market back to life, several analysts said it was unlikely to head off a spate of defaults, foreclosures and bankruptcies that could surpass the devastating real estate crash of the early 1990s."
...About $393 billion worth of mortgages are scheduled to mature by the end of next year alone, and an estimated $39 billion more were due to expire this year but have been extended, he said...
...
Thursday, September 10, 2009
This Multi-Family Deal Didn't Hold Up
Buyers of Huge Manhattan Complex Face Default Risk - NYTimes.com
There's an old line I heard regarding Trump. When you owe the bank a million and cannot pay, you have a problem. When you owe the bank a BILLION and cannot pay, the bank has a problem.
Here's a deal that is the poster child for this current financial crisis we are in....
"T]he buyers [of Stuyvesant Town and Peter Cooper Village in Manhattan] are running out of time and money. Jerry and Rob Speyer and their partner, BlackRock Realty, who together paid $5.4 billion ... have nearly exhausted an additional $890 million set aside for apartment renovations, landscaping and interest payments. Rents are down 25 percent from their peak.
Real estate analysts say that the partnership’s money will run out as soon as December and that the owners are at “high risk” of default on $4.4 billion in loans.
...
A recent report from Realpoint, a credit rating agency, estimates that the property has a value today of only $2.13 billion.
...
At Stuyvesant Town, there is a $3 billion first mortgage, or commercial mortgage-backed security, and a $1.4 billion second loan, known as “mezzanine debt” held by SL Green, the government of Singapore and others.
Finally, there is $1.9 billion in equity put up by Tishman Speyer, BlackRock and their investors."
There's an old line I heard regarding Trump. When you owe the bank a million and cannot pay, you have a problem. When you owe the bank a BILLION and cannot pay, the bank has a problem.
Here's a deal that is the poster child for this current financial crisis we are in....
"T]he buyers [of Stuyvesant Town and Peter Cooper Village in Manhattan] are running out of time and money. Jerry and Rob Speyer and their partner, BlackRock Realty, who together paid $5.4 billion ... have nearly exhausted an additional $890 million set aside for apartment renovations, landscaping and interest payments. Rents are down 25 percent from their peak.
Real estate analysts say that the partnership’s money will run out as soon as December and that the owners are at “high risk” of default on $4.4 billion in loans.
...
A recent report from Realpoint, a credit rating agency, estimates that the property has a value today of only $2.13 billion.
...
At Stuyvesant Town, there is a $3 billion first mortgage, or commercial mortgage-backed security, and a $1.4 billion second loan, known as “mezzanine debt” held by SL Green, the government of Singapore and others.
Finally, there is $1.9 billion in equity put up by Tishman Speyer, BlackRock and their investors."
Wednesday, September 09, 2009
When in Doubt Cut Spending
Consumers Cut Debt By Record $21.6B In July : NPR
Interesting that economists missed this so badly. They predicted that consumers would drop their demand for revolving credit by $4B. The actual decline was $21.6B. It sure would be nice to see consumers get household debt under control. Unfortunately, the pullback is probably b/c would-be spenders simply have no choice. Most folks scale back spending (and use of consumer credit) when their income and/or confidence is low.
With consumer debt at $2.47 TRILLION we have a long way to go.
Still America has recovered from much worse and we will recover from this.
Interesting that economists missed this so badly. They predicted that consumers would drop their demand for revolving credit by $4B. The actual decline was $21.6B. It sure would be nice to see consumers get household debt under control. Unfortunately, the pullback is probably b/c would-be spenders simply have no choice. Most folks scale back spending (and use of consumer credit) when their income and/or confidence is low.
With consumer debt at $2.47 TRILLION we have a long way to go.
Still America has recovered from much worse and we will recover from this.
Will Car Sharing Work in Raleigh?
zipcar
Somewhere between borrowing a car from a buddy and renting one is the concept of car sharing. Think of renting a car for about $11.25 per hour.
Cool idea. Dude, don't use all my gas. The operators agree that this business model relies on people acting nicely. No smoking please and keep the ketchup off the seats. It remains to be seen if this can turn a profit, but I like it.
I think NCSU should definitely adopt it. Could also be an answer in the Triangle to the failed public rail plan.
Somewhere between borrowing a car from a buddy and renting one is the concept of car sharing. Think of renting a car for about $11.25 per hour.
Cool idea. Dude, don't use all my gas. The operators agree that this business model relies on people acting nicely. No smoking please and keep the ketchup off the seats. It remains to be seen if this can turn a profit, but I like it.
I think NCSU should definitely adopt it. Could also be an answer in the Triangle to the failed public rail plan.
Wednesday, August 26, 2009
Good Advice: Start Like you have a Blank Sheet of Paper
The best business advice Mattel CEO Bob Eckert ever received - Aug. 26, 2009
An MBA professor might just say, ignore sunk costs. It is tough to do but one of the core tenants of B-school.
An MBA professor might just say, ignore sunk costs. It is tough to do but one of the core tenants of B-school.
Friday, August 14, 2009
BBT Buys Colonial in FDIC Assisted Deal
Colonial becomes biggest bank failure of 2009 - MarketWatch
This year, 74 banks have failed ... as a lingering recession and surging unemployment leaves the industry nursing heavy loan losses. More than 1,000 banks may fail during the next three to five years, RBC Capital Markets estimated in February....
The FDIC estimated Friday that the Colonial deal will cost its Deposit Insurance Fund about $2.8 billion. The regulator recently imposed a one-time assessment on banks to top the fund up. However, the surge in bank failures has increased concern about the fund, despite the fact that the FDIC can borrow hundreds of billions of dollars from the Treasury Department if it needs to.
BB&T, with more than $150 billion in assets, is seen by some analysts as a beneficiary of bank failures. Many closures have happened in the Southeast of the U.S., where BB&T is a dominant player.
BBT's stock jumped 9.4%
This year, 74 banks have failed ... as a lingering recession and surging unemployment leaves the industry nursing heavy loan losses. More than 1,000 banks may fail during the next three to five years, RBC Capital Markets estimated in February....
The FDIC estimated Friday that the Colonial deal will cost its Deposit Insurance Fund about $2.8 billion. The regulator recently imposed a one-time assessment on banks to top the fund up. However, the surge in bank failures has increased concern about the fund, despite the fact that the FDIC can borrow hundreds of billions of dollars from the Treasury Department if it needs to.
BB&T, with more than $150 billion in assets, is seen by some analysts as a beneficiary of bank failures. Many closures have happened in the Southeast of the U.S., where BB&T is a dominant player.
BBT's stock jumped 9.4%
Monday, August 10, 2009
Small Businesses, Big Fraud
Small Businesses, Big Fraud
Shared via AddThis
This is the kind of junk that ruins public benefit programs.
Shared via AddThis
This is the kind of junk that ruins public benefit programs.
Thursday, August 06, 2009
Housing starts the long climb back?
Inventory of Houses Falls in July - WSJ.com
According to some industry estimates, as many as half of those homes aren’t included on multiple-listing services at any given time. Some foreclosed homes aren’t listed because they are being offered as rentals, while others are awaiting repairs or are subject to litigation or other delays.
Some analysts expect a resurgence in foreclosed homes on the market later this year, as lenders pursue legal actions that had been delayed by moratoriums in various states that sought to keep more people in their houses.
According to some industry estimates, as many as half of those homes aren’t included on multiple-listing services at any given time. Some foreclosed homes aren’t listed because they are being offered as rentals, while others are awaiting repairs or are subject to litigation or other delays.
Some analysts expect a resurgence in foreclosed homes on the market later this year, as lenders pursue legal actions that had been delayed by moratoriums in various states that sought to keep more people in their houses.
Friday, July 31, 2009
Monday, July 27, 2009
Apartments Start the Thawing Process.
Apartments fetch $39M in buyers' market - Business - News & Observer
The Ashley Park complex, at 10300 Pine Lakes Court, features one- to three-bedroom units and amenities such as a spa, swimming pool, tennis courts, a playground, club house, indoor basketball court, movie screening room, fitness and business centers. It was 98 percent occupied in March, up from 78 percent in March 2005. Average rents have fallen almost 10 percent to about $889 per unit during that period, according to Triangle Apartment Association data.
The Ashley Park complex, at 10300 Pine Lakes Court, features one- to three-bedroom units and amenities such as a spa, swimming pool, tennis courts, a playground, club house, indoor basketball court, movie screening room, fitness and business centers. It was 98 percent occupied in March, up from 78 percent in March 2005. Average rents have fallen almost 10 percent to about $889 per unit during that period, according to Triangle Apartment Association data.
Monday, June 15, 2009
Score Another for the Nerds!
Microfinance Gateway>Gates & World Bank Establish Agriculture Finance Support Facility
Bill Gates is giving $20M to the World Bank. He will give away more money than Michael Jordan will ever make.
Bill Gates is giving $20M to the World Bank. He will give away more money than Michael Jordan will ever make.
Thursday, June 11, 2009
AIG HQ for $100/SF
According to Costar, AIG has their HQ under contract to a Korean investment group for about $100/SF.
Monday, June 08, 2009
Tom Hendrickson Formerly Announces Green Development in Apex
Developer plans sustainable, mixed-use development for Apex :: WRAL.com
Here's WRALs coverage of the announcement of Veridea, a 1,000 acre development planned in Apex
-30,000 employees projected
-10M SF of office space
-3.5M SF for retail
-8,000 residential units
-Hudson Realty Capital are equity investors
-$5.5B to $6B of new property tax base created for Apex
Here's WRALs coverage of the announcement of Veridea, a 1,000 acre development planned in Apex
-30,000 employees projected
-10M SF of office space
-3.5M SF for retail
-8,000 residential units
-Hudson Realty Capital are equity investors
-$5.5B to $6B of new property tax base created for Apex
Monday, June 01, 2009
Construction on Hillsborough St...Finally
Keep Hillsborough Street funky: News: Wake County: Independent Weekly: Raleigh, Durham, Chapel Hill
As the construction begins on the long awaited round abouts on Hillsborough St. Bob Geary weighs in on the funkiest stretch of road in Raleigh.
As the construction begins on the long awaited round abouts on Hillsborough St. Bob Geary weighs in on the funkiest stretch of road in Raleigh.
Monday, May 18, 2009
Tuesday, May 12, 2009
GM Execs Sell it ALL!
GM Executives Dump Stock as Trading Window Opens - Automotive * US * News * Story - CNBC.com
I think this is interesting that they unloaded it all. Who in the world bought it I wonder.
I think this is interesting that they unloaded it all. Who in the world bought it I wonder.
Friday, April 17, 2009
Entreprenuers Keep it Rolling
Small business office leasing rises | ajc.com
Good article on the uptick in leases below 10,000SF in Atlanta.
Good article on the uptick in leases below 10,000SF in Atlanta.
Thursday, April 16, 2009
Tuesday, April 14, 2009
Buffett Buys BYD...Chinese Electric Car Co
Why Warren Buffett is investing in electric car company BYD - Apr. 13, 2009
Great article on BYD, a chinese electric car maker.
Great article on BYD, a chinese electric car maker.
Tuesday, March 24, 2009
Average Lease Size Shrinks Nationally
Grubb & Ellis :: Market Research :: Weekly Market Insight: "Average Lease Size March 23, 2009"
excerpted:
There are several reasons behind this trend. Tenants signing new leases may have implemented previous staff reductions and are taking the opportunity to right-size their space. A related trend is that tenants may be less optimistic about expanding in the future and so are taking less space now. A third reason could be that smaller, more nimble companies are willing to grab the good deals being offered by landlords while large, publicly traded companies are waiting for the recovery to take hold.
Source: Grubb & Ellis
excerpted:
There are several reasons behind this trend. Tenants signing new leases may have implemented previous staff reductions and are taking the opportunity to right-size their space. A related trend is that tenants may be less optimistic about expanding in the future and so are taking less space now. A third reason could be that smaller, more nimble companies are willing to grab the good deals being offered by landlords while large, publicly traded companies are waiting for the recovery to take hold.
Source: Grubb & Ellis
Thursday, March 19, 2009
Words to Live By from Yale's $8B Man
Yale Alumni Magazine: "the most sensible approach is to come up with specific asset allocation targets that you can implement with low-cost, passively managed index funds and rebalance regularly. You'll end up beating the overwhelming majority of participants in the financial markets."
RREEF Report: Recession Fails to Diminish Demand for Green Real Estate - CoStar Group
RREEF Report: Recession Fails to Diminish Demand for Green Real Estate - CoStar Group: "In fact, going by the numbers, green building could have one of its best years ever. The large backlog of projects that are registered for LEED certification -- about 18,500 at the start of this month -- makes it extremely unlikely that the growth of certified green buildings will tail off, the study stated."
Investors snap up old flats - Business - News & Observer
Investors snap up old flats - Business - News & Observer: "The average vacancy rate at apartments built in the past five years jumped to 9.5 percent in January, from 7.7 percent a year earlier, according to Real Data, a Charlotte apartment research firm. Average monthly rent, meanwhile, fell 5.4 percent to $888 per unit.
Apartments that are 16 to 30 years old, however, saw the average climb to just 7.5 from 6 percent. At the same time, rents have dipped just 1.3 percent to $690."
Apartments that are 16 to 30 years old, however, saw the average climb to just 7.5 from 6 percent. At the same time, rents have dipped just 1.3 percent to $690."
$7M for Pinecrest Pointe Shopping Center
Midland Atlantic Buys Pinecrest Pointe Shopping Center - CoStar Group
excerpted:
Midland Atlantic Properties acquired the Pinecrest Pointe Shopping Center at 9101 Leesville Road in Raleigh, NC, from a private family trust for $7 million, or approximately $78 per square foot.
excerpted:
Midland Atlantic Properties acquired the Pinecrest Pointe Shopping Center at 9101 Leesville Road in Raleigh, NC, from a private family trust for $7 million, or approximately $78 per square foot.
Monday, March 09, 2009
Spitzer back in Commercial Real Estate
Eliot Spitzer’s father buys D.C. office building - The Business Review (Albany):
Spitzer buys building one block from the Mayflower Hotel, were he uh well, you know failed to uphold the high standards he set for himself, etc...
Spitzer buys building one block from the Mayflower Hotel, were he uh well, you know failed to uphold the high standards he set for himself, etc...
Thursday, March 05, 2009
VC says fund R&D not his Competitors
Blogger: US should fund research, not venture capital - The Boston Globe
Scott makes great points herein. Of course, he is a VC and I always find it interesting that the handful of VCs think there are too many in the business. Seems they prefer competition of the free market for every but themselves.
Still, a good take on the industry.
He also says there are 3 things we need to fix to thaw out the IPO market:
1. Sarbanes-Oxley
2. Increase HB-1 visas (as long as they are not working as VCs I guess)
3. Keep capital gains taxes low
Scott makes great points herein. Of course, he is a VC and I always find it interesting that the handful of VCs think there are too many in the business. Seems they prefer competition of the free market for every but themselves.
Still, a good take on the industry.
He also says there are 3 things we need to fix to thaw out the IPO market:
1. Sarbanes-Oxley
2. Increase HB-1 visas (as long as they are not working as VCs I guess)
3. Keep capital gains taxes low
Friday, February 27, 2009
Would You Pay $103,000 for This Arizona Fixer-Upper? - WSJ.com
Would You Pay $103,000 for This Arizona Fixer-Upper? - WSJ.com
Great article demonstrating the reasons behind the housing debacle.
Note the FEES paid to mortgage brokers were almost more than the value of the shack. Amazing.
Great article demonstrating the reasons behind the housing debacle.
Note the FEES paid to mortgage brokers were almost more than the value of the shack. Amazing.
Wednesday, February 18, 2009
When in Doubt, Use a "Ten Cap" | Commercial Real Estate | RCA
When in Doubt, Use a "Ten Cap" | Commercial Real Estate | RCA
Good article on the state of the market.
Are we headed for a 10-cap market? I don't think the Triangle will get there on average but in certain distress situations, you bet!
Good article on the state of the market.
Are we headed for a 10-cap market? I don't think the Triangle will get there on average but in certain distress situations, you bet!
Wednesday, February 04, 2009
Reversion to Sanity, Buffett: Stocks are on Sale Again
Fortune: Buffett's metric says it's time to buy - Feb. 4, 2009
Good article here quoting the Oracle on his take on US Stocks. He says when the total market value of US Stocks are 70% to 80% of the GNP of the US that it is time to buy. As of Jan 23rd the article estimates this ratio at 75%.
I agree, please point me to some that are not run by incompetent liars....
Good article here quoting the Oracle on his take on US Stocks. He says when the total market value of US Stocks are 70% to 80% of the GNP of the US that it is time to buy. As of Jan 23rd the article estimates this ratio at 75%.
I agree, please point me to some that are not run by incompetent liars....
Thursday, January 22, 2009
As Predicted Class Action Filed Against BAC
Abraham, Fruchter & Twersky, LLP Announces Filing of Class Action Lawsuit Against Bank of America Corporation and Certain of Its Officers and Directors
excerpted:
...the Complaint alleges that the Proxy Statement failed to disclose that Bank America had not conducted adequate due diligence on Merrill Lynch and that, as a result, the Bank America directors lacked a reasonable basis for their recommending that the Company's shareholders vote in favor of the Acquisition.
excerpted:
...the Complaint alleges that the Proxy Statement failed to disclose that Bank America had not conducted adequate due diligence on Merrill Lynch and that, as a result, the Bank America directors lacked a reasonable basis for their recommending that the Company's shareholders vote in favor of the Acquisition.
More Painful Surprises at BAC
Thain resigns from Bank of America - MarketWatch
Today the stock was pummelled again down to nearly a 20 YEAR LOW as Ken Lewis and John Thain realized that "it was not working out". Thain resigned or was fired, whatever...
These guys are supposed to be season professional businessmen. They struck a quick deal which in hindsight looks like a great deal for Merrill who was about to go down and a sucker bet for Ken Lewis. Where is the due diligence? Were there any reps and warranties? Merrill employees got millions in bonuses just before they report losing millions? Thain asks for a $10M bonus from the BAC board? Thank God they at least denied that. Nice Temple!
I swear these CEOs lose there common horse sense the more they get PAID. Get ready for the shareholder lawsuits. I want my hard earned and mistakenly invested money back from these shizters.
Today the stock was pummelled again down to nearly a 20 YEAR LOW as Ken Lewis and John Thain realized that "it was not working out". Thain resigned or was fired, whatever...
These guys are supposed to be season professional businessmen. They struck a quick deal which in hindsight looks like a great deal for Merrill who was about to go down and a sucker bet for Ken Lewis. Where is the due diligence? Were there any reps and warranties? Merrill employees got millions in bonuses just before they report losing millions? Thain asks for a $10M bonus from the BAC board? Thank God they at least denied that. Nice Temple!
I swear these CEOs lose there common horse sense the more they get PAID. Get ready for the shareholder lawsuits. I want my hard earned and mistakenly invested money back from these shizters.
Friday, January 16, 2009
BAC cuts dividend to 1 cent...
Bank of America posts first loss in 17 years - Yahoo! News
...and thus eliminates the reason many retirees, investors and mutual funds owned the stock in the first place. Once a reliable dividend payer and long term growth stock, the former stalwart is off over 80% from its 52 week high despite taking $45B in TARP money.
The Merrill Lynch takeover cost $19.4M, so you could say the taxpayers covered that one. The exposure to mortgages is still dragging BAC down...
"It is difficult to focus on what is going right at this time," a clearly downbeat Chief Executive Kenneth Lewis said on a conference call.
...and thus eliminates the reason many retirees, investors and mutual funds owned the stock in the first place. Once a reliable dividend payer and long term growth stock, the former stalwart is off over 80% from its 52 week high despite taking $45B in TARP money.
The Merrill Lynch takeover cost $19.4M, so you could say the taxpayers covered that one. The exposure to mortgages is still dragging BAC down...
"It is difficult to focus on what is going right at this time," a clearly downbeat Chief Executive Kenneth Lewis said on a conference call.
Thursday, January 08, 2009
Dilweg Turns Mold into Gold
Pantry buys instead of renting - Business - News & Observer
Here's the follow up to an earlier blog about the Merisel building that Dilweg bought twice. First for $3M then again for $1.2M. AD put about $5.5M in renovations according to the N&O then sold it to the Pantry for $8.5M recently.
It sold for $138/SF or 13% below the average office building sale in 2008.
Address: 305 Gregson Drive, Cary
Here's the follow up to an earlier blog about the Merisel building that Dilweg bought twice. First for $3M then again for $1.2M. AD put about $5.5M in renovations according to the N&O then sold it to the Pantry for $8.5M recently.
It sold for $138/SF or 13% below the average office building sale in 2008.
Address: 305 Gregson Drive, Cary
Monday, January 05, 2009
G&E: DC #1, Raleigh #8 Best Place for Commercial Real Estate Investment in 2009
DC's Best for Commercial Real Estate Investment | NBC Washington
excerpted:
Following Washington, D.C., on the top 10 list are Portland, Ore.; Los Angeles; San Francisco; Austin, Texas; Dallas-Fort Worth; Houston; Raleigh-Durham, N.C.; Boston; and Oakland, Calif. The Texas markets offer strong population growth, while the others offer strong population growth as well as natural barriers to entry.
excerpted:
Following Washington, D.C., on the top 10 list are Portland, Ore.; Los Angeles; San Francisco; Austin, Texas; Dallas-Fort Worth; Houston; Raleigh-Durham, N.C.; Boston; and Oakland, Calif. The Texas markets offer strong population growth, while the others offer strong population growth as well as natural barriers to entry.
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