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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

Santa Rosa ranked one of most profitable ‘flip’ markets

Mon, 20 May 2013 16:27:43 +0000

NORTH BAY — As median home prices climb sharply in the North Bay, a recent report by real estate data tracker RealtyTrac shows that the Santa Rosa-Petaluma market is one of the most profitable nationwide for “flipping” homes.

The report by the Irvine, Calif.-based firm shows the Santa Rosa-Petaluma Metropolitan Statistical Area as the 18^th most profitable market for those who buy, renovate and resell homes, part of a list of the 25 markets where the practice generated the highest rate of return in 2012.

Brian Burke

Yet Brian Burke, managing director of the Santa Rosa-based real estate private equity investment fund Praxis Capital, cautioned against labeling the area or any other as a hub for that activity.

“It’s very deal specific — it’s hard to generalize,” said Mr. Burke, whose company specializes in real estate investments that include flipping homes. “What that tells me is not that Santa Rosa is the best place to buy homes because you can buy at a deep discount. Houses in Santa Rosa have appreciated faster than homes in other areas.”

A “flipped” home in Santa Rosa generated an average gross profit of 19 percent, or $53,558, according to the report. There were an estimated 527 such sales over the year, with an average original purchase price for the home of $285,344. The number of single family homes involved in the practice had increased 47 percent from the year before.

The city was the least profitable of other Bay Area markets that made it to the list. Flipped homes in San Francisco and San Jose generated an average return of 23 percent.

The most profitable market on the list was Orlando, Fla., where a home purchased at an average price of $103,701 generated an average profit of 63 percent upon resale, according to RealtyTrac.

Climbing home prices have attracted an array of investors in the current market, with “flipping” being among those practices. RealtyTrac estimated the sales that involved a flip by counting transactions that occurred within six months or less of a previous sale of the same home. The firm looked at 600 metro areas for the report.

The practice has changed from the days when buyers could purchase a distressed property at a deep discount and sell at a profit after basic renovations, Mr. Burke said. While investors were able to put between $10,000 and $30,000 into a property for a profitable sale while the market was at its low, those activities now entail from $30,000 up to as much as $250,000, he said.

“Now the business has shifted to looking for properties that may need another bedroom, or even a full rebuild of a home,” he said. “It’s basically the homebuilding of this decade. It used to be you buy a property and build 20 homes on it — that was real estate development.”

Investors, which account for the majority of absentee buyers, purchased 24.2 percent of all homes across the Bay Area in April, according to San Diego-based real estate data tracker DataQuick. That number was up from 23.5 percent in April 2012, with investors paying a median of $362,000 across the Bay Area region.

With multiple private placement funds involving single-family homes, “flipped” homes and multifamily properties in Texas, Praxis has grown to $25 million under management in four years, Mr. Burke said. Those funds have generated an average 20 percent annualized return for investors, but it is the stability of the funds that has proven attractive in a volatile investment climate, he said.

Median home prices in Sonoma County were up 23.5 percent in April versus the same month in 2012, at $376,000, according to DataQuick. The number of sales, 611, was also up 15.3 percent, while the number of sales Bay Area-wide notched down 0.6 percent.

Median prices continued to climb outside of Sonoma County as well, with approximately half of that due to price appreciation and half due to a greater number of higher-priced homes in the sales mix, according to DataQuick. Distressed sales are also on the decline, accounting for 24 percent of sales versus 44 percent across the Bay Area one year ago.

In Marin County, a median price of $799,000 was 29.3 percent greater than one year ago, with 345 homes sales representing an 18.2 percent increase. Napa County saw an April median of $385,000, up 21.3 percent, and a 13.3 percent increase in homes sales, at 136. There were 1.3 percent more homes sold in Solano County, at 564, and the median price of $238,000 was up 36 percent from April 2012.

Bay Area-wide, median prices rose above $500,000 for the first time since almost five years. Prices first passed that threshold in May of 2004, and continued rising for four years before dropping below $500,000 in June 2008. Median prices for homes sold across the Bay Area reached a low of $290,000 in March 2009.

Bill Facendini

With fewer distressed properties in the mix, larger investors are now looking towards higher-end homes and income properties, said Bill Facendini, president of Terra Firm Global Partners. More of their investor clients are holding on to their current properties, particularly those that are generating rental income, he said.

Meanwhile, the period of flipping distressed properties has left a positive mark on many neighborhoods, he said.

“It has been good for communities. I’ve seen some communities that had started to slide, but then these people come in and refresh some of these distressed homes. People are having pride of ownership again,” he said.

Article source: http://www.northbaybusinessjournal.com/73472/santa-rosa-ranked-one-of-most-profitable-flip-markets/

Paragon Real Estate Group of San Francisco Ranked as Top Real Estate Agency by …

Fri, 27 Apr 2012 13:23:39 +0000

Paragon Real Estate Group has been ranked as the Top Real Estate Agency by RealTrends

After less than eight years in business, Paragon is at the top of the national ranking and number one in the Bay Area (of the largest brokerages) in producing successful results for our clients.

San Francisco, CA (PRWEB) April 27, 2012

Paragon Real Estate Group of San Francisco is thrilled to have been named as one of the top real estate agencies in two categories by RealTrends. Considered to be the leading source of analysis and information on the residential brokerage and housing industry, RealTrends recently released its 500 ranking report for the 500 largest residential real estate brokerages in the U.S. Based on 2011 sales, RealTrends has ranked Paragon Real Estate Group of San Francisco as number three in sales volume per real estate agent and number four in average sales price.

“After less than eight years in business, Paragon is at the top of the national ranking and number one in the Bay Area (of the largest brokerages) in producing successful results for our clients,” Randy Zinn of Paragon Real Estate Group said. “In that same period, Paragon has established a strong presence in high-end luxury home sales in San Francisco.”

Paragon’s San Francisco real estate agents averaged more than $7 million in sales volume in 2011, with an average sales price of more than $1 million a year. Its success in business in such a short time attracts first-time homebuyers and those looking for real estate investments, both of whom trust Paragon to help them choose the perfect place.

Founded in 2004 by five of the most experienced and successful real estate managers in San Francisco, Paragon is already one of the top three residential brokerages in the city by sales volume. In addition to the recent recognitions by RealTrends, the SF Business Times once again named Paragon as number one in sales per agent of the top 10 brokerages in the Bay Area, and Broker Metrics has designated Paragon as having the largest number of agents in the top 10 percent of all San Francisco agents by dollar volume sales.

For more information about Paragon Real Estate Group, call 415-738-7070, view the real estate agents on the web at http://www.paragon-re.com or visit 1160 Battery St. in San Francisco.

About Paragon Real Estate Group

Paragon Real Estate Group is the only locally-owned and -managed brokerage in San Francisco that conducts business across the entire city in all market segments–first-time homebuyers, residential and luxury homes, real estate investment and commercial property, leasing and new home development. With about 125 agents and a management, marketing and support team of more than 20, Paragon brokered almost a billion dollars in real estate in 2011.

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Article source: http://www.prweb.com/releases/real-estate-agent/san-francisco/prweb9439827.htm

Coldwell Banker Residential Brokerage Launches Program to Market High-End …

Mon, 16 Jan 2012 05:29:27 +0000

San Francisco, CA, January 13, 2012 –(PR.com)– Coldwell Banker Residential Brokerage, the Bay Area’s largest provider of real estate services, announced today that it has launched a new international marketing program focused on international investors looking to buy high-end homes in the United States.
The initiative will market Coldwell Banker Residential Brokerage listings here at home on a global basis through a combination of print and online advertising, targeted direct marketing, and other outreach efforts.

Additionally, the program will leverage Coldwell Banker Real Estate LLC’s extensive network of offices and sales associates throughout the Far East to find qualified buyers of local properties.

Homeowners in Asia have become the fastest-growing segment of offshore buyers for U.S. homes, according to recent industry figures. Buyers in China alone now represent 9 percent of the $41 billion spent annually by international buyers, according to the National Association of Realtors – nearly double the total just three years ago.

Chinese buyers now trail only Canadians as the top buyers of U.S. properties. India is tied with Mexico for third at 7 percent. For offshore buyers, California remains one of the top locations in the nation, according to NAR’s study.

“For a variety of reasons, buyers in Asia are increasingly looking to the U.S. in general and California and the Bay Area in particular when it comes to real estate investments,” said Anne Treacy Johnson, regional vice president of marketing for Coldwell Banker Residential Brokerage.

Affluent Chinese residents are facing increasing limitations from their government on purchasing real estate as China battles inflation and what the government and many investors fear might be a real estate bubble. Properties in the U.S., even in more expensive Silicon Valley communities, are considered relatively cheap compared to escalating property values in China.

“Given the strong international demand for our properties, it’s critical to reach Asian buyers with a very targeted and strategic marketing program in their home countries,” Johnson said. “Our goal is to put Coldwell Banker Residential Brokerage listings in front of the widest possible audience of affluent buyers from Asia.”

Coldwell Banker Residential Brokerage will be marketing the properties with extensive advertising in a host of influential global publications, including the Wall Street Journal Asian edition, Unique Homes magazine, Millionaire Asia, and Previews International Homes Estates.

The program also gives agents the opportunity to showcase their properties on leading international websites, including ListGlobally.com, EastWestLuxuryEstates.com, the Wall Street Journal’s online Chinese edition and Caimeiju, one of China’s top websites specializing in luxury properties in America. In all, listings will be exposed to more than 15 million buyers worldwide on more than 550 highly trafficked websites.

Additionally, Coldwell Banker Residential Brokerage has launched its own “micro site” for international buyers of high-end California homes called CBPCalifornia.com. The site will be used when consumers in China, Russia and the Middle East search for California listings using their native search engine — Baidu, (the Chinese version of Google), Yande (the Russian version of Google), and Google UAE.

The company will complement the Internet and print advertising efforts with a direct marketing program overseas that is designed to reach more than 100,000 affluent individuals in the Europe, Asia and the Middle East.

Coldwell Banker Residential Brokerage will also leverage one of the largest networks of agents worldwide as part of the program. “One of the biggest tools we will be using is our global network of 86,000 sales associates in 3,200 offices in 49 countries around the globe,” Johnson said. “This incomparable network of real estate professionals will support our marketing efforts on the ground in each of these countries and give our listings a truly global reach in order to attract the right buyers for our properties.”

For more information about the new international marketing program, please contact Coldwell Banker Residential Brokerage’s marketing department at 925.275.3085.

About Coldwell Banker Residential Brokerage
Coldwell Banker Residential Brokerage is the largest residential real estate brokerage in Northern California and serves the markets from Monterey to Tahoe and nearly every market in between. The company has 62 office locations and more than 3,600 sales associates throughout Northern California. Coldwell Banker Residential Brokerage is part of NRT LLC, the nation’s largest residential real estate brokerage company. NRT has 750 offices and 45,000 sales associates operating in more than 35 major metropolitan areas. A subsidiary of Realogy Corporation, NRT operates Realogy’s company-owned real estate brokerage offices. For more information please visit www.CaliforniaMoves.com or call 925.275.3085. DRE # 00313415.

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Article source: http://www.pr.com/press-release/381725

Thomas M Monahan provides a great historic context for investors in San …

Tue, 11 Oct 2011 16:54:53 +0000

(2011-10-11) Thomas M Monahan provides a great historic context for investors in San Francisco Bay Area Home Market.

Monahan Pacific is a leading real estate investment and development firm in the San Francisco Bay Area that offers the best real estate solutions for investors and communities.

Fluctuations in the real estate industry are quite common, but the highs and lows never seem to have any dearth for demand in real estate investments. People have found real estate as one of the best investment opportunities to fund their retirement. However, to earn substantial profits from your real estate investment, you need to make sure that you are investing in properties that receive good recognition, are located in prime areas and have the scope for good appreciation. To a common man identifying all such aspects of real estate can be quite challenging. Therefore, the solution is to find out as much as you can of the long term history of the developer.

Thomas M Monahan is a trusted real estate developer with expertise in land acquisition, entitlements, finance, project design, construction management, marketing and sales, leasing and property management. Thomas M Monahan is known for their extensive local market knowledge, experience and meticulous planning. Monahan Pacific has all the skills and abilities along with a good rapport with communities, groups, county, city and federal agencies to help them develop for the needs and benefit of all.

Thomas M Monahan has an excellent team of highly knowledgeable, qualified, experienced and likeminded executives who have the ability to recognize and capitalize on underutilized or undervalued properties. a href=”http://thomasmmonahanwebinar.com/”Thomas M Monahan/a has built an excellent reputation over their 25 years of service and has to their credit a faithful and respectable impressive track history. You can be assured of capable services that are guaranteed to bring you the best possible returns on any project developed via Monahan Pacific Corporation.

Whether you want to invest in San Francisco Bay Area Home Market or looking for your own home, you can trust properties built by Thomas M Monahanand Monahan Pacific Corp. They dont actually sell the individual properties after constructed, but they advise the public about market conditions and suggest right time and opportunities for real estate investment. You can completely entrust your real estate investment plans in San Francisco Bay Area Home Market to a href=”http://thomas-m-monahan.com/”Thomas M Monahan/a.

About Us: a href=”http://thomas-m-monahan.com/”Thomas M Monahan/a Pacific offers real estate development investment opportunities in San Francisco Bay Area Home Market. Through his firm, Monahan Pacific Corporation they also offer win-win solutions for the community, investors and the company.

Contact Info: Monahan Pacific Corporation
1101 5th Avenue, Suite 300
San Rafael, CA 94901

ph. 415-456-0600

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Company: Monahan Pacific Corporation

Country: United States

Contact: 1101 5th Avenue, Suite 300 San Rafael, CA 94901

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Article source: http://www.addpr.com/articles/real_estate/90870.html