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More Income-Based Returns in 2014

Sat, 08 Jun 2013 13:05:28 +0000

Nothing really meaningful is going to happen until we fix the job situation, said Sinkuler.

Part 2 of 2

SAN FRANCISCO-In an earlier story, GlobeSt.com reported on ULI Real Estate Consensus Forecast from ULIs Real Estate Finance and Investment conference here, noting that real estate is much safer for investors than it has been for some time. It is an attractive environment, agreed panelists.

The discussion then moved on to the topic of returns, where David Lynn, EVP and chief investment strategist of Cole Real Estate Investments, predicted that, going forward, a majority of returns will come from income. According to Lynn, the 8% to 10% total return range is probably there.

Andrew Nelson, director of research and strategy at Deutsche Asset Wealth Management, added that We will see increasing NOI growth starting in 2014. We expect to see more income based returns.

Attendees watch the opening panel discussion at the ULI Real Estate Finance and Investment Conference.

Drilling down to each property type, Richard Sinkuler, partner and global real estate markets leader at Ernst Young, forecasts a big demand in warehouse. Office is having a sluggish time recovering, he said. Retail is doing well at the high end and the low end, but the folks in the middle are having a tough time.

In terms of unemployment, there is no more national average, said Sinkuler. Nothing really meaningful is going to happen until we fix the job situation.

To be considered unemployed, you have to be looking, he continued. That cuts behind all the numbers. Dont look at the flat percentage as a national average Look at the various places where the unemployment growth is taking place. That growth, he said, is where the demand is coming from. Demographics is playing more of an important role than it ever has before.

When discussing the 10-year treasury, Lynns prediction is that the Fed will scale back gradually because we have been in this period of free money for four years. But the change has occurred, he said, but it has to. They cant continue to stimulate the economy forever, and it will have an effect on cap rates, but that will be gradual as well.

According to Sinkuler, The Fed isnt going to do anything drastic. We are going to have stimulus for some time to come, but the question is whether you are going to get the central banks and everyone on the same playing field because everyone is at a different stage in the game and that remains to be seen.

Check back with GlobeSt.com for more from the ULI Investment conference.

Article source: http://www.globest.com/news/12_620/sanfrancisco/finance/Panelists-More-Income-Based-Returns-in-2014-334130.html

Real Estate, No Longer a Dirty Word

Fri, 07 Jun 2013 00:50:18 +0000

The opening panel at the ULI Real Estate Finance and Investment conference at Dean Schwanke, SVP of Urban Land Institute.

Part 1 of 2

SAN FRANCISCO-Real estate is no longer a dirty word; it is a well-performing asset class. So said David Lynn, EVP and chief investment strategist of Cole Real Estate Investments, during a discussion about the CMBS market here yesterday at the ULI Real Estate Finance and Investment conference. Real estate is much safer than it has been for some time and for the borrower and lender, it is an attractive environment.

The CMBS market, Lynn said, was scarce two years ago, but is now much more broadly available. There is a real need for it and investors want the yield … CMBS makes sense.

It makes sense, Lynn continued, particularly in the secondary and tertiary markets where there has been a financing gap, but it doesnt necessarily make sense in the primary.

The conference brought together both providers and users of capital to explore key trends that are driving successful real estate investing today. Lynn was a panelist on the opening panel, moderated by Dean Schwanke, SVP of Urban Land Institute.

The panel began with a reviewed ULIs recent consensus forecast, a three-year forecast for 27 economic and real estate indicators. The survey was undertaken from March 4 to march 25, 2013.

Industry experts gather at UCSFs Mission Bay Conference Center for a networking break.

Among other things, the consensus predicted that: Real GDP Growth will continue getting better; showed inflation will increase up to 3% by 2015; cap rates are expected to fall this year and then rise up to 6.2% next year; transaction volume is expected to rise; strength continues on the industrial and warehouse side, with rental rates expected to grow; rental rates for office is expected to grow for the next three years; hotel occupancy rates will continue to rise over the next few years; and home price increase are expected to be stronger, well above inflation.

Richard Sinkuler, partner and global real estate markets leader of Ernst Young,commented on the consensus GDP growth prediction, noting that there are still a lot of headwinds if you look at things globally. There is still some uncertainty and that uncertainty is our enemy because it is still making people who make decisions say, oh well, we will wait and see. And it is four years now of a slowdown.

But Andrew Nelson, director of research and strategy at Deutsche Asset Wealth Management, thought there is a better picture to paint. Sure, the public sector is very much standing in the way right now, he said, but the private sector is recovering nicely. It is a normal kind of reaction to such a severe downturn. It is kind of a bamboo thing where it takes several years underground before it is going to shoot up. We are seeing some positive things like exports increasing and job growth, for example.

Lynn added that there are more positives than negatives. The private sector is in relatively good health. Exports are increasing for the US. We are becoming a major energy power and that isnt insignificantit is helping our economy is a variety of ways, he said. Consumers have been deleveraging over the past several years and are in better shape. They are beginning to re-lever again.

But the big worry is still the jobs picture, which Lynn said has been anemic. It is a new normal, said Lynn, but it is a pretty good environment for real estate. You are seeing fundamentals improve in all sectors. The debt part of this has been very attractive. The economy is gradually improving and the cost of capital is very attractive.

Check back with GlobeSt.com for part two of this panel discussion, where the panel touches on the 10-year treasury, and on a majority of returns stemming from income.

Article source: http://www.globest.com/news/12_619/sanfrancisco/finance/Real-Estate-No-Longer-a-Dirty-Word-334129.html

Richland Cos. Acquires 104000-SF Bay Plaza Office Complex – Daily News Article

Thu, 02 Aug 2012 17:51:47 +0000

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Richland Cos. now owns the
104,000-SF Bay Plaza Office
Complex.

WEBSTER, TX-The Richland Cos. acquired the 104,091-square-foot Bay Plaza Office Complex from its long-time owner, Capital Commercial Investments Inc. of Austin. The Houston-based buyer added the class B office building to its portfolio through a direct commercial real estate transaction with the seller.

The Harris Central Appraisal District, which appraises the asset at 711 W. Bay Area Blvd. for approximately $5.58 million, notes that Capital Commercial Investments’ entity CCI-711 Bay Area Ltd. acquired the office building in April 1998. The office building was developed in the early 1980s and renovated in 2009 following damage sustained by Hurricane Ike. Richland Cos.’ President and CEO Edna Meyer-Nelson would not disclose the price paid for the asset, though did say it was acquired at a significant discount to replacement costs. Derek R. Stokes with San Antonio-based Trinity Real Estate Finance Inc. secured funding for the CRE transaction from American Family Insurance of Madison, WI.

Meyer-Nelson explains there were many benefits with this office building, not the least of which is that it’s located in a fast-growing area of Houston. “NASA is booming, and a lot of developers are building down there,” she says. “The ship channel is also growing by leaps and bounds.”

Adding to the building’s appeal is that it’s a high-rise office asset in a supply constrained submarket. “It’s tough to build right there,” Meyer-Nelson explains. “The land along the Gulf Freeway (Interstate 45) and close by is on 100-year leases.”

Bay Plaza Office Complex is 94% occupied, with tenants including BP, San Jacinto College, Blue Moon Detective Agency, Hometrust Mortgage, Broadpoint, Texan Bank, Evergreen Tank Soultion, MeCor and Select Medical. Meyer-Nelson says roll will be small this year and next year, but in about two years, approximately 30% of the building is anticipated to roll. “Our strategy is to maintain the building, take good care of it, get it leased up, then handle that 30% to 35% roll we’re anticipating in 2.5 years,” she tells GlobeSt.com. “Then we’ll sell it, leaving some meat on the bone for someone else.”

With the market improving, Richland Cos. is becoming more active. The company sold three assets this year, acquired another property through a joint venture and is looking for more. “One of the markets I’m in right now, that hopefully will have earnest money and a contract in the next two to three weeks is Dallas,” Meyer-Nelson says. Another asset in Richland Cos.’ sight is an industrial park in Oklahoma City.

“We anticipate having four more transactions this year,” Meyer-Nelson says. “If we can sell one or two more assets and buy another three or so, that’ll be a good year for us.”

Categories:

Southwest,
Office,
Acquisitions/Dispositions,
Leasing,
Online Exclusive,
Austin,
Dallas/Fort Worth,
Oklahoma City,
Houston

Amy Wolff Sorter brings close to 30 years of reporting and editorial experience to her role as southwest editor for GlobeSt.com; with more than 10 of those years spent reporting on business and real estate trends. In addition to her duties with ALM, Amy is a copyeditor and writer with Texas Jewish Post.
ûContact Amy Wolff Sorter

Article source: http://www.globest.com/news/12_406/houston/acquisitions_dispositions/Richland-Cos-Acquires-104000-SF-Bay-Plaza-Office-Complex-323886.html

Plaza Bank Adds Another Top Real Estate Finance Expert in Chuck Miller

Thu, 26 Apr 2012 01:18:06 +0000

IRVINE, CA, Apr 25, 2012 (MARKETWIRE via COMTEX) –
Plaza Bank

/quotes/zigman/407362 PLZB
-2.86%

added to its strong business banking and
real estate team with the hiring of commercial lending expert Chuck
Miller as a vice president handling real estate finance in Northern
California.

“The demand for our lending to small and midsized businesses
continues to grow,” said Gene Galloway, President and CEO of the
Irvine-based Plaza Bank. “Chuck has a long record of success in
Northern California and he’ll make our real estate lending team even
stronger.”

Mr. Miller had an extensive background working as a commercial broker
before he moved into commercial lending, with experience over the
last 15 years working for both large and community banks in Northern
California. In that time, he funded loans worth $296 million on
properties valued at nearly $400 million.

His focus will be centered in the San Francisco Bay Area helping
business owners who are becoming first-time purchasers of commercial
real estate, expanding their holdings, moving to larger facilities,
or who want to refinance their current properties.

“In the commercial real estate world, you have to be able to guide a
transaction from its inception through its conclusion,” Mr. Miller
says. “I know just how important it is to stay personally involved
and to provide every bit of follow through for every project from
beginning to closing.”

“Chuck has the experience and expertise,” Mr. Galloway said, “to work
with any commercial real estate project, no matter how complicated. A
lot of people are good at parts of a transaction, but Chuck has
proven his skill and diligence at every step.”

About Plaza Bank

Plaza Bank is full service community bank serving the business and
professional communities in California and Las Vegas, Nevada. The
bank is committed to meeting the financial needs of small to middle
market businesses and professional firms with loans for working
capital, equipment and owner-occupied commercial real estate
financing and a full array of cash management services. Our bankers
are experienced, professional and knowledgeable. For more
information, visit
www.plazabank.net or call Gene Galloway at (949)
502-4309.

Forward-Looking Statements

Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and are subject to the safe
harbors created by that Act. Forward-looking statements can be
identified by the fact that they do not relate strictly to historical
or current facts. They often include the words “believe,” “expect,”
“anticipate,” “intend,” “plan,” “estimate,” or words of similar
meaning, or future or conditional verbs such as “will,” “would,”
“should,” “could,” or “may.” Forward-looking statements are based on
currently available information, expectations, assumptions,
projections, and management’s judgment about the Bank, the banking
industry and general economic conditions. These forward-looking
statements are not guarantees of future performance, nor should they
be relied upon as representing management’s views as of any
subsequent date. Future events are difficult to predict, and the
expectations described above are necessarily subject to risk and
uncertainty that may cause actual results to differ materially and
adversely.

Forward-looking statements involve significant risks and
uncertainties and actual results may differ materially from those
presented, either expressed or implied, in this press release.
Factors that might cause such differences include, but are not
limited to: the Bank’s ability to successfully execute its business
plans and achieve its objectives; changes in general economic, real
estate and financial market conditions, either nationally or locally
in areas in which the Bank conducts its operations; changes in
interest rates; new litigation or changes in existing litigation;
future credit loss experience; increased competitive challenges and
expanding product and pricing pressures among financial institutions;
legislation or regulatory changes which adversely affect the Bank’s
operations or business; loss of key personnel; changes in accounting
policies or procedures as may be required by the Financial Accounting
Standards Board or other regulatory agencies; and the ability to
satisfy requirements related to the Sarbanes-Oxley Act and other
regulation on internal control.

Media Contacts: Gene Galloway President and CEO Plaza Bank (702) 277-2221 (949) 502-4309 Email Contact Tyler Massas VP - Marketing (760) 889-4455 Email Contact

SOURCE: Plaza Bank

http://www2.marketwire.com/mw/emailprcntct?id=23F2316AAB762162 http://www2.marketwire.com/mw/emailprcntct?id=A916A5DD2F462C56

Copyright 2012 Marketwire, Inc., All rights reserved.

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Add to portfolio

PLZB

Article source: http://www.marketwatch.com/story/plaza-bank-adds-another-top-real-estate-finance-expert-in-chuck-miller-2012-04-25?reflink=MW_news_stmp

Marin Modern Real Estate and East Bay Modern Real Estate Sponsor Workshop on …

Fri, 06 Apr 2012 11:43:48 +0000

By Joel Scanlon

Real estate brokerage firms, East Bay Modern Real Estate and Marin Modern Real Estate, have jointly announced that they will sponsor a workshop on April 21, 2012, which will focus on training and providinginformation to customers in the San Francisco Bay Area about the steps involved in the process of buying or building a modern and eco-friendly prefab home.

The demand for prefabricated homes has been growing steadily since they offer aesthetic style, are eco-friendly, can be constructed within a short period of time, and are affordable.

According to Renee Adelmann, who is the owner of Marin Modern Real Estate, the focus of the workshop is to provide adequate information to customers on the practical advantages of buying or building a prefabricated home in the San Francisco Bay Area. The workshop has been titled “Building a Modernist and Eco-friendly Prefab Home in the San Francisco Bay Area” and will see participation from leading companies in the field of architecture, real estate, finance and design. Representatives from Swatt Miers Architects, East Bay Modern Real Estate, Simpatico Homes, Land Home Financial and Marin Modern Real Estate will make their presentations at the event. Customers who attend the event will be given a personalised tour of a model home built by Simpatico Homes.

Source: http://www.eastbaymodern.com

Posted 6th April 2012

Article source: http://www.azobuild.com/news.asp?newsID=15152