DIRS.INFO The most relevant business & tech news

☆ Commercial real estate lending fell for the first time in 2 years last month as credit conditions tighten
▼ + stars: | 2023-07-17 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Commercial real estate lending fell for the first time in two years last month amid tight credit conditionsDebt on commercial property fell to $5.44 trillion in June, driven by a large drop in multifamily lending. Outstanding commercial real estate debt dropped to $5.44 trillion in June, marking the first drop in commercial real estate lending recorded in two years, according to Refinitiv data cited by Capital Economics. Multifamily property debt fell by $21.6 billion last month, the research firm said. Still, commercial property debt saw sluggish growth in June, increasing by just $7.4 billion last month. Commercial real estate prices could plunge as much as 40% from their peak, Morgan Stanley previously estimated, which would mark an even more severe crash than what was seen in the 2008 financial crisis.

Persons: That's, Charlie Cornes, Banks, Morgan Stanley Organizations: Capital Economics, Service, Capital Locations: Wall, Silicon

☆ The US is short on homes. Here’s how builders are still offering the American Dream
▼ + stars: | 2023-07-14 | by ( Anna Bahney | ) edition.cnn.com time to read: +8 min

This relatively new and growing segment of the housing market is called “build for rent” or BFR (or “build to rent” or BTR). Often constructed in suburban areas with low crime and near good schools, BFR homes attract those who want the lifestyle of a house — but the affordability or convenience of renting. Over the past few years, however, large investment groups — like Home Partners of America or Invitation Homes — have got into buying up existing single-family homes to rent. Miller said demand for BFR homes is strong and suit a modern way of living involving remote work, lifestyle moves and delayed homeownership. Even as a small portion of the market, those BFR homes that are being built are not the smaller, more affordable homes that middle-income earners are looking for.

Persons: ”, David Howard, Howard, “, Ben Miller, ” Miller, Miller, Donald Trump’s, homeownership, Bruce McNeilage, ” McNeilage Organizations: DC CNN, National Rental Home, National Rental Home Council, Urban Institute, Home Partners of America, Research, Joint Center for Housing Studies, Harvard University, Kinloch Partners, Survey Locations: Washington, Texas , California , Arizona, Florida, North Carolina, Georgia, BFR, United States, Nashville, Greenville , South Carolina, Yardi

Washington, DC CNN —Florida is America’s inflation hotspot, thanks to a persistent problem with sky-high housing costs. The Miami-Fort Lauderdale-West Palm Beach area has the highest inflation rate of metro areas with more than 2.5 million residents, with a 9% inflation rate for the 12 months ended in April. Urban Hawaii had the second lowest inflation rate at 2% — mirroring the Federal Reserve’s target for its preferred inflation gauge, the Personal Consumption Expenditures index. A vexing inflation problem in the Sunshine StateIn Florida, the state’s growing population has been pushing up inflation — particularly via housing costs. Even though the Twin Cities’ inflation rate is currently the lowest among major cities, it might not feel that way to residents, Schipper said.

Persons: That’s, ”, Amanda Phalin, Phalin, “, ” Phalin, Paul, Tyler Schipper, Thomas, Schipper, “ You’re, Latoya Rogers, Kaiji Chen Organizations: DC CNN, Fort, Consumer, Labor Department, Urban, Sunshine State, University of Florida, Labor, Tampa, University of St, of Labor Statistics, CPI, Twin, Federal Reserve Bank of, Fed, Cub, Costco, Sam’s, Atlanta, Emory University Locations: Washington, Florida, Miami, Fort Lauderdale, West Palm Beach, Tampa, St, Petersburg, Clearwater, Minneapolis, Urban Hawaii, Sunshine State In Florida, New York, Tampa Bay, “, Twin Cities, Federal Reserve Bank of Minneapolis ’, Midwest, Minnesota, Cities, Atlanta, Sandy Springs, Roswell, —

☆ California Rep. Maxine Waters introduces bills to spend hundreds of billions of dollars to fight homelessness and solve the affordable housing crisis
▼ + stars: | 2023-06-27 | by ( Eliza Relman | ) www.businessinsider.com time to read: +3 min

Rep. Maxine Waters, a California Democrat, introduced a trio of bills addressing the housing crisis. They would expand housing vouchers and send $100 billion to help first-generation homebuyers. The legislation — which includes expanding housing vouchers and sending $100 billion to help first-time, first-generation homebuyers — is focused on reducing the racial wealth gap. One bill — the Housing Crisis Response Act of 2023 — includes over $150 billion in funding for affordable housing and investments in closing the racial housing gap. Overall, just one in six eligible families live in public housing, receive a rent-reducing voucher, or live in a subsidized multifamily unit, according to the US Census Bureau.

Persons: Maxine Waters, —, Waters Organizations: California Democrat, Service, Interagency, Homelessness, Census Bureau, Financial Services Locations: California

☆ Rent is falling in America for the first time in years
▼ + stars: | 2023-06-26 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN —Some welcome news for renters: The US median rent in May fell from May 2022, the first annual rent decline in at least three years, according to a Realtor.com report released Monday. In May, the national median asking rent was $1,739, which was up a skosh ($3) from April but down 0.5% from May 2022. “For renters who maybe have stayed put over the past couple of years and haven’t moved, they might not be at the market rent level,” Hale said in a follow-up interview with CNN. “If they were to move this year, even though market rents are declining, they may see a higher rent payment.”The West and the South recorded year-over-year rent declines in May of 3% and 0.7%, respectively, whereas the Midwest and Northeast are still seeing rents climb higher, according to the report. The metro areas with the largest year-over-year rent jumps include Columbus, Ohio (9.3%); St. Louis, Missouri (7.7%); and Cincinnati, Ohio (7.7%).

Persons: Realtor.com, ” Danielle Hale, Hale, haven’t, ” Hale, —, Anna Bahney Organizations: Minneapolis CNN, CNN Locations: Minneapolis, Midwest, Northeast, Columbus , Ohio, Louis , Missouri, Cincinnati , Ohio, Las Vegas, Riverside, San Bernardino, California

☆ US home construction surged in May by the fastest pace in more than a year
▼ + stars: | 2023-06-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —US home building surged in May, climbing 21.7% from April, as low inventory in the existing home market continued to boost interest in new homes. Housing starts, a measure of new home construction, came in far beyond expectations that they would decline by 0.1%, according to data released Tuesday by the Census Bureau. The number of single‐family units rose in May to 1.631 million, above expectations for 1.40 million and above the revised April estimate of 1.34 million. Building permits, which track the number of new housing units granted permits, also rose in May, after dropping in March and April. The National Association of Home Builders/Wells Fargo Housing Market Index gauges market conditions and looks at current sales, buyer traffic and the outlook for sales of new construction homes over the next six months.

Persons: ”, Robert Dietz, ” Dietz, Alicia Huey Organizations: DC CNN, Housing, Census, National Association of Home Builders, Federal Reserve Locations: Washington, Wells Fargo

☆ Acore Capital's Warren De Haan say he's finding opportunities in multifamily real estate
▼ + stars: | 2023-06-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAcore Capital's Warren De Haan say he's finding opportunities in multifamily real estateWarren De Haan, Acore Capital co-CEO, joins 'The Exchange' to discuss lender strength and where to find opportunity in credit and commercial real estate.

Persons: Warren De Haan Organizations: Acore

☆ Third Point Real Estate's managing partner said it's 'a foolish debate' to say the office market will fail
▼ + stars: | 2023-06-11 | by ( Al Yoon | ) www.businessinsider.com time to read: +9 min

Frank Scavone, managing partner of Third Point Real Estate Strategies, said offices aren't dead. Frank Scavone, the managing partner of Third Point Real Estate Strategies, told Insider he's up for the challenge. But are there opportunities now for investors like Third Point Real Estate Strategies? What's going to happen with all the commercial real estate debt coming due in this higher interest rate environment? And let's not forget about the more than $300 billion in dry powder aimed at North American commercial real estate investment.

Persons: Frank Scavone, Scavone, Daniel Loeb's, —, Trepp, CBRE, That's, San Francisco — Organizations: Service, Third Point, Hedge, CBRE, downtown, Employers, North Locations: San Francisco, downtown San Francisco, Marin County, York, multifamily, New York City

☆ Commercial real estate has taken a beating. But recovery may be slow for one big reason.
▼ + stars: | 2023-06-05 | by ( Al Yoon | ) www.businessinsider.com time to read: +4 min

Investment volume in commercial real estate fell off a cliff last quarter. But with few transactions on which to peg market values, is the market truly down? Last week, Alfred Brooks, the head of JPMorgan's commercial real estate group, said he's seen distressed buyers already raising money to pick up the pieces, once prices get low enough. Indeed, commercial real estate values are down, by other measures. April was the first month since 2010 that prices of all types of commercial property fell on an annual basis, according to MSCI.

Persons: haven't, —, dealmaking, It's, Alfred Brooks, he's, Richard Rubin, Insider's Alex Nicoll, Rubin, Blackstone, MSCI Organizations: Bank of America, Service, BofA Global Research, RCA, BofA Global

☆ Commercial and multifamily mortgage delinquencies rose in the first part of 2023
▼ + stars: | 2023-06-02 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Commercial and multifamily mortgage delinquencies increased in the first quarter of 2023, according to a new report from the Mortgage Bankers Association. “Ongoing stress caused by higher interest rates, uncertainty around property values, and questions about fundamentals in some property markets are beginning to show up in commercial mortgage delinquency rates,” said Jamie Woodwell, MBA’s head of commercial real estate research. Freddie Mac had a delinquency rate of 0.13%, an increase of 0.01 percentage points from the fourth quarter of 2022. Commercial mortgage-backed securities had a delinquency rate of 3%, an increase of 0.10 percentage points from the end of 2022. The FDIC delinquency rates for bank and thrift held mortgages reported here do include loans backed by owner-occupied commercial properties.

Persons: ”, Jamie Woodwell, ” Woodwell, Fannie Mae, Freddie Mac, Banks, thrifts Organizations: DC CNN —, Mortgage, Association, Federal Reserve Locations: Washington

☆ Disney scrapping a $1 billion campus in Florida could screw over adjacent developers banking on it to build their own projects: report
▼ + stars: | 2023-05-29 | by ( Hannah Getahun | ) www.businessinsider.com time to read: +3 min

Disney's decision to scrap its $1 billion campus could affect projects nearby. CoStar Group told The Wall Street Journal that thousands of homes were built after Disney announced its campus in 2021. However, the development group that owns the land says that Disney's decision will not affect it. Hundreds of employees set to work at the new campus had already moved to Lake Nona before Disney announced they would be abandoning the plan. They also told the Journal that 95% of the multifamily housing at Lake Nona is currently being occupied.

☆ Commercial real-estate prices could tumble 10% from their peak and defaults are sure to increase, Moody's chief economist says
▼ + stars: | 2023-05-17 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Expect commercial real-estate prices to plunge 10% from their peak, along with a wave of defaults, Moody's chief economist said. "Lots more CRE price declines are coming, with prices expected to be off 10% peak-to-trough by mid-decade," Mark Zandi said. Stress has been building in the commercial property industry as investors fret it could be the domino to fall in the US economy. "Lots more CRE price declines are coming, with prices expected to be off 10% peak-to-trough by mid-decade," he said. "CRE loan delinquencies and defaults are sure to increase, causing agita for the banking system.

☆ The manager of an award-winning credit fund that's tripled its benchmark since 2014 told us how he's staying ahead of a recession and credit crunch
▼ + stars: | 2023-05-13 | by ( Marley Jay | ) www.businessinsider.com time to read: +4 min

The River Canyon Total Return Bond Fund has out-returned 99% of similar credit funds for five years. When Sam Reid says his River Canyon Total Return Bond Fund "has no competition," it sounds like a boast. But what he's actually saying is he's able to invest in a much wider range of assets than managers of other credit funds. He added that his fund "sits in between the hedge fund world and the vanilla mutual fund world." Reid also said he's been working to reduce the duration in his portfolios ahead of a recession.

☆ Nuveen Buys Giant New York City-Focused Affordable Housing Portfolio
▼ + stars: | 2023-05-09 | by ( Will Parker | ) www.wsj.com time to read: 1 min

New York City area properties include several large apartment buildings in the Bronx, Brooklyn and Queens. Photo: Gary Hershorn/Getty ImagesNuveen, the asset management arm of Teachers Insurance and Annuity Association of America, is acquiring a more than 12,000-unit affordable housing portfolio in one of the largest multifamily housing deals this year. The properties are largely concentrated in the New York City area, including several large apartment buildings in the Bronx, Brooklyn and Queens. Other buildings are located in Maryland, Massachusetts, Texas and other states, Nuveen said on Tuesday. The portfolio includes developable land and existing buildings in need of rehabilitation that could eventually produce an additional 8,000 low-income apartments, Nuveen said.

☆ 2 top housing experts break down why they expect a downturn in prices that could last several years, and how it might impact buyers in very different ways
▼ + stars: | 2023-05-09 | by ( Marley Jay | ) www.businessinsider.com time to read: +4 min

Housing market expert Ivy Zelman and real estate investing pro Scott Trench approach the housing market from very different perspectives, but they can still see eye-to-eye on some things. The two real estate pros took different stances when it comes to the single family housing market, however. "BRRR" was a hit in a lower-rate environment, especially as housing prices climbed over the last few years. Ivy Zelman is a housing expert who identified the market bubble in the 2000s and called the housing market turnaround in 2012. The forthcoming recession is going to trump all other housing market price trends, she predicted, and there will either be a correction in interest rates or in housing prices.

☆ A real estate investor shares how he grew his income from $28,000 to over $1 million in just 4 years through a combination of rental properties, house flipping, private money lending, and passive synd
▼ + stars: | 2023-05-06 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +7 min

He also successfully grew his real estate income from $28k in 2018 to well over $1 million in 2022. A "pivotal moment" for Rivers came after he began further immersing himself into Charleston's local real estate investing community by attending regular meetups and networking events. That's when he decided to become more actively involved through not only private money lending, but also home flipping and wholesaling. Scaling up with house flippingAround 2019, Rivers also began dabbling in house flipping, a strategy which makes up a huge chunk of his real estate investing income today. Focusing on passive investing through real estate syndicatesToday, Rivers also has an additional nearly $1 million invested across various syndicates.

☆ Why You Should Forget What You Think You Know About Housing in L.A.
▼ + stars: | 2023-05-05 | by ( Julie Lasky | ) www.nytimes.com time to read: +1 min

In “Common Ground,” Ms. Anderton, 60, makes the point that while Los Angeles may seem like a sprawling breeding ground of American dream houses set in gardens, it has an equally compelling history of shared real estate that continues to this day. Perpetual sunshine has allowed the city’s multifamily housing to be opened to courtyards and parks and festooned with exterior staircases and balconies, breaking the stolid blocks of traditional apartment houses and fostering social connections. As contemporary architects and developers work to relieve Los Angeles of its vicious housing scarcity — almost 42,000 people in the city are currently unhoused — “Common Ground” shows examples of affordable multifamily buildings that look like anything but. Real estate development is never a walk in the park, but because some relief from the city’s draconian restrictions is granted to creators of affordable housing, this area has attracted design innovators working with progressive developers who are committed to righting decades of inequities created by exclusionary housing policies. For this reason, many of the projects that “Common Ground” highlights make the most out of the least: those with oddly shaped lots, peripheral locations and components produced in factories.

☆ The future of the traditional office space is unclear as vacancy rate hits record high, says National Association of Realtors
▼ + stars: | 2023-05-02 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

The future of the traditional office space is unclear, the National Association of Realtors said. The office vacancy rate rose to a record high of 12.9% in the first quarter from 12% a year ago. The office vacancy rate rose to a record high of 12.9% in the first quarter from 12% a year ago, representing 72.9 million more square feet available to lease. Class A offices — high-value properties that often have above-average rent — had a vacancy rate of 17.9%. Houston, Dallas-Fort Worth, and San Francisco, led the office vacancy rise.

☆ This real estate company helps developers pivot between hotel, short- and long-term living spaces. See the pitch deck behind its $65 million funding round.
▼ + stars: | 2023-05-01 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +3 min

Things have changed drastically in the world of real estate since the coronavirus upended life three years ago. It has also set up a real estate fund in the OpCo/PropCo model, for purchasing real estate on its own. "If you strip down the emotional piece of it, the most valuable real estate is real estate that has an increased cash flow and reduced volatility," Fudin said. The company is now betting on another post-COVID trend — the conversion of obsolete office buildings into other uses, such as housing. Placemakr recently announced a $65 million Series C, with capital raised from experienced proptech venture capital players Camber Creek and real estate investors like Bernstein Management Corporation.

☆ Big apartment landlords lean in to AI and proptechs as profit squeezes loom
▼ + stars: | 2023-04-28 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +7 min

Apartment landlords are getting squeezed by rising interest rates and insurance costs . interest rates and insurance . But some big US landlords were already waist-deep in labor-saving technologies of their own to ward off profit squeezes, like the ones many are facing today. On the supply side, the race has been on for some time to sell landlords on tech that works. In this case, landlords are adapting to today's higher interest rates from a time when borrowing costs were low and taking any pressure off operations, he said.

☆ Ivy Zelman called the last two big downturns in home prices. She told us that renters are about to get some very good news.
▼ + stars: | 2023-04-27 | by ( Marley Jay | ) www.businessinsider.com time to read: +3 min

Ivy Zelman predicted the housing market downturn in the 2000s and in 2022. When Ivy Zelman says the housing market is due for a turn, people tend to listen. Conditions look more balanced in other parts of the housing market, Zelman says. "We're not in the camp that a lack of inventory is a positive for the housing market," she said. "The housing market is not immune to what will ultimately be a recession with a credit crunch that has just begun," she said.

☆ This married real-estate investing couple bought their first house by accident. Now they've built a $19 million 47-unit portfolio over the last 8 years by chasing the 'bread and butter' of multi-famil
▼ + stars: | 2023-04-24 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +12 min

Over the past decade, they've grown their real estate portfolio to 47 units worth $19 million. Both had also had real estate ambitions prior to meeting. According to Simpson, the best way to source deals is also the most obvious — by having a good relationship with real estate brokers. If they intend to sell a property, Simpson and Moore generally only make improvements to between 60% to 65% of the units. In the future, the couple's long-term goals include continuing to grow their real estate portfolio, expanding their coaching business, and eventually handing their own investments full-time.

☆ Clarence Thomas didn't recuse himself from a 2004 appeal tied to Harlan Crow's family business, per Bloomberg
▼ + stars: | 2023-04-24 | by ( Lauren Steussy | ) www.businessinsider.com time to read: +4 min

Clarence Thomas previously said his friend Harlan Crow had no business before the court. But a case involving Trammell Crow Residential made its way to the Supreme Court in 2005, per Bloomberg. Harlan Crow was CEO of Crow Holdings from 1988 to 2017, and remains chair of its board, per Bloomberg and The Real Deal. "At the time of this case, Trammell Crow Residential operated completely independently of Crow Holdings with a separate management team and its own independent operations," the statement to Bloomberg said. Neither Harlan Crow nor Crow Holdings had knowledge of or involvement in this case, and a search of Crow Holding's legal records reveals no involvement in this case.

☆ Single-family rentals were stars of real estate during the pandemic. Now the sector faces its biggest challenges yet.
▼ + stars: | 2023-04-19 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +4 min

The SFR sector is facing fresh challenges this year, however, two KBRA analysts said. If you were an institutional investor looking to invest in real estate during the height of the pandemic, single-family rental properties were probably on your list. Home prices were rising quickly, and borrowing costs were low, underpinning the fundamentals of residential real estate. What's more, real estate research and investment-banking firm Zelman & Associates has estimated there's $110 billion in investor capital waiting to be spent on homes. Labor and supply costs have risen consistently, and massive home price appreciation is resulting in higher real estate taxes.

Organizations: & ' $

☆ A real-estate investor with a 311-unit portfolio shares a recession-proof strategy she's using that all but guarantees she receives market-value rent payments
▼ + stars: | 2023-04-19 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Anne Curry has a sizable real-estate portfolio of 311 units, much of it consisting of multifamily properties. But there's a recession-proof route that Curry and other landlords take: rent to low-income tenants with a voucher for rent, also known as Section 8 recipients. "If you were going to rent a unit out for, let's say $1,800, just market rate, to anyone...to get highest market rent, sometimes you need to do more on the remodel," she said. "Section 8 pays around market regardless of whether everything is completely rehabbed like you would if you were going to try to get highest market rent." Curry also recently discovered that there are grants for affordable housing landlords to update properties that are below living standards.

Search resuls for: "multifamily"

25 mentions found