Socal Multiunit Real Estate

U2 CAN BUY COMMERCIAL PROPERTIES @ AUCTION

U2 CAN BUY COMMERCIAL PROPERTIES @ AUCTION

By Jodi Summers

Going, going, gone…with the commercial loan market in such a pathetic state, auctions are the fastest way for banks to unload undesired commercial property assets.

“Sellers are coming to the realization that the price point they had in mind is not a reality. That’s where auctions are so useful in determining value — bringing people together through competitive bidding,“ observed National Auctioneer Association spokesman Chris Longly. “Our membership is seeing more energy and movement this year on the commercial real estate side.“

The National Association of Auctioneers estimates that $58.6 billion in real estate was sold in private live-auction bidding in the U.S. in 2008, up 38.5% from five years ago. Auctions in residential real estate have risen 47.7%, raw land (including agriculture) 36.8%. Commercial real estate is up 31.3%, to $15.5 billion in gross auction sales for 2008. Last year, banks were dealing with residential real estate issues, now, banks are confronting commercial property asset issues.

While the foreclosure moratorium was on in residential, banks were able to reassess their commercial assets. You’ll note that auction activity growing in the 2^nd half of 2009, with major online commercial auction events. In the second half of July, NAI Global offered 75 investment properties in 21 states valued at more than $250 million. The timed online auction will include 58 properties — including the historic State Theatre in South Bend, IN, which still bears bullet holes from the nearby shootout following John Dillinger’s final bank robbery on June 30, 1934 — and 14 other properties. In late July, Sperry Van Ness/Guardian held an auction at the Hyatt Regency in Los Angeles includes more than $100 million in real-estate owned (REO), bank-ordered and developer close-out assets in six Western states.

Among the high profile properties going up for sale is the historic Watergate Hotel made infamous during President Nixon’s wiretapping antics. (http://www.socalofficerealestateblog.com/?p=669). Other noteworthy pieces of real estate hitting the auction market include development sites in the metro Washington, DC area, retail sites in Highland Park, IL, and Spokane, WA, the historic theater redevelopment in South Bend, IN, and an infill site in Flint, MI; an upscale hotel/golf resort in Beecher, WI, and a fully entitled multifamily development tract in Navarre Beach, FL, plus lots of excess and partially developed inventory.

Even the government is getting into it. As you know, the state has been selling off their legacy assets - http://www.santamonicapropertyblog.com/?p=1188, and take a cursory glance @ what the U.S. government might be auctioning off in California, and we find industrial properties in Laguna Nigel, Morro Bay and Red Bluff.

“We’re probably seeing a 30 to 40% increase this year” in office, retail, industrial, multifamily and land auction inquiries, remarked Paul Rogers, senior vice president @ Inland Real Estate Auctions, Inc. “With bank activity in particular, we’re going to be busy for the rest of this year — and probably well into next year.”

This trend echoes the real estate slump of the 1990s and early 2000s, with commercial properties following residential foreclosure auctions after they have been mainstays in the downturn. Companies auctioning properties note that it is an opportunity to sell assets quickly, reduce holding costs, and secure true market value under unpredictable market conditions.

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Sources:

http://www.costar.com/News/Article.aspx?id=F9243DEB83153259F95525F184C9EEE8&ref=100&iid=140&cid=383F14EEE265B182474DA2442BACBBBF

http://fasrp.sc.egov.usda.gov/fasrp/mainAction.do;jsessionid=804CCE54F02BBCC115D4B0BA22A910FF?pageAction=GetCounties&state=CA&stateName=California

http://www.philly.com/inquirer/world_us/20090720_Watergate_auction_drawing_interest.html

http://www.socalofficerealestateblog.com/?p=669

http://media.commercialappeal.com/mca/content/img/photos/2009/04/16/b17auction.jpeg

http://ethicalforeclosurefortunes.com/wp-content/themes/thesis/rotator/govt_auctions_sm.jpg

http://i.ehow.com/images/GlobalPhoto/Articles/5117276/237446-main_Full.jpg

http://www.unitedcountry.com/picturesx/10086-10099-1576957.jpg

http://www.ritholtz.com/blog/wp-content/uploads/2009/06/foreclosures-may-o9.png

http://www.mccallauctions.com/auctions/photos/1074/p12368596779029.jpg

CALIFORNIA’S GREENEST CITIES

CALIFORNIA’S GREENEST CITIES

ENNACTING GREEN LEGISLATION – MAKING BUILDINGS MORE EFFICIENT

ENNACTING GREEN LEGISLATION – MAKING BUILDINGS MORE EFFICIENT

By Jodi Summers

So much for our government to do…and high on the list of Republicans and Democrats alike is the greening of existing buildings. In June legislation was approved by the House of Representatives (by a tally of 219-212) to control climate change by limiting heat- trapping pollution and creating a trading system for pollution permits. The bill calls for cutting greenhouse-gas emissions from 2005 levels by 17 percent by 2020, and 83 percent by mid- century.

Think of it as a new world order. Society as we know it will change drastically in the next decade….

To get the United States back on track, policy groups are encouraging President Barack Obama to back a $500 billion plan to make U.S. buildings more energy-efficient.

The Center for American Progress, a research group that advises Democrats, and the Energy Future Coalition, a nonpartisan alliance have united to present a national proposal, which is not unlike California’s 2010 initiative. In a perfect world, the plan would increase the energy efficiency of 40 percent of commercial and residential $1,200 a year in energy costs, while saving businesses significantly more money in utilities.

The policy groups say moving forward with green initiatives is imperative for several reasons.

1. aid the economic recovery

2. increase energy security

3. reduce global warming

“Rapidly improving the efficiency of our existing buildings is essential,” declare both local policy groups.

The proposed funding - $500 billion - would come from a combination of public and private funds, details forthcoming.

The report states, “National policy leadership is required immediately to launch a nationwide energy-efficient retrofit industry.”

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http://www.bloomberg.com/apps/news?pid=20601103&sid=apuGuQhfFQkQ

http://www.scienceprogress.org/

http://willscullypower.wordpress.com/2009/06/19/online-advertisers-continue-to-battle-with-congress/

http://assembly.state.ny.us/member_files/036/20070130/

http://www.greencollarblog.org/oregon_green_jobs/

http://www.energyfuturecoalition.org/What-Were-Doing/Renewable-Energy-25×25

http://matgiordano.com/blog/?p=81

IT’S A BIG-TIME BUYER’S MARKET FOR SANTA MONICA MULTIUNIT REAL ESTATE

IT’S A BIG-TIME BUYER’S MARKET FOR SANTA MONICA MULTIUNIT REAL ESTATE

by Jodi Summers

If you’ve been thinking about buying multiunits in Santa Monica, now is the time. It is a buyer’s market and there are great deals to be had.

Check out this two-year market snapshot showing the trends of Supply vs. Demand chart for residential income properties in Santa Monica. Notice that the number of multiunit properties for sale has dropped by 6% - there are now 58 multiunit properties on the market, while sales remain flat – three multiunit buildings sold in Santa Monica in September.

The government, in the form of Fannie Mae and Freddie Mac, now hold $194.62 billion of mortgages, all of which are backed by multifamily or healthcare properties, and mortgage pools guaranteed by the two hold another $157.25 billion of loans, for a total of $351.87 billion of mortgages.

When you add the mortgages held by federal, state and local governments to the agencies’ total, the volume of loans held by governments and their agencies balloons to $517.3 billion, a full 15% of the entire commercial mortgage universe. Scary thoughts for Halloween month.

Has your real estate market stabilized? Email jodi@jodisummers.com to receive a free market report for your LA county neighborhood.

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http://www.clarusresource.com/