A report from the Real Estate Journal. “When the housing bubble burst in 2007/2008, it created an environment in which residents were more inclined to rent rather than own, leading to the multifamily sector’s boon during this cycle. But many worry that we are nearing the end of this expansion. Though that has been a concern for a couple of years now, a downturn or a plateau is imminent. The question is, how will multifamily investors fare during this inevitable turn of events? ‘We’re already feeling the effects of a slowdown,’ said Lee Kiser, managing broker of Kiser Group. Kiser points to a dynamic unique to Chicago, the changeover in the Cook County assessor’s office. The prospect of higher assessments may leave a lot of investors unwilling to gamble until they see how the situation will actually play out.”
“‘I think the market was already slowing somewhat. But with the assessor’s office as a factor on top of that, there isn’t as much trading right now,’ said Kiser. ‘In general, it’s just not a good time to be aggressive on price.’”
From Press Connects in New York. “For the third time in 12 years, residents in the Vestal hills are bracing for a fight on a proposed multi-unit apartment complex in their rural neighborhood. Landmark Properties, which characterizes itself as a ‘top contractor of student housing,’ submitted updated plans for a residential housing project on a 43-acre land parcel. While a 2017 Broome County Industrial Agency housing study said there is demand for ‘market rate’ housing for professionals, authors noted the off-campus student market has been met.”
“‘Over-supply and high rental rates, as compared to on-campus rates, are resulting in a volatile market,’ the study said. ‘An indication of the over-supply was the open competition and aggressive promotions offered by several properties between May-August 2017 in anticipation of the fall semester.’”
The George-Anne in Georgia. “Two years since its approval, the project to transform the old University Plaza into a state-of-the-art apartment complex has made no further developments. Unfortunately, University Place faces more difficulties than a money shortage. Even if the complex could be completed, some are worried the property could do more damage than help. With a new apartment comes new housing opportunities for students in a market that is already oversaturated. With numerous apartment complexes across the city, many are worried the new complex will only dig the hole deeper.”
From 48 Hills in California. “For years, as community leaders fought for affordable housing instead of luxury condos as 16thand Mission, the developer who owned the site said that was just impossible. At meeting after meeting, representatives of Maximus Real Estate Partners said neither the city nor any nonprofit could get a chance to build housing at the edge of the BART plaza; the site, they said, ‘is not for sale.’ Well, according to the Business Times today, the site is for sale.”
“Laura Waxman at The BizTimes reports that the investors in the project ‘forced the hand” of Maximus because of the intense community opposition to the Monster in the Mission. In other words, if the city isn’t going to allow several hundred high-end condos on the site, the investors could demand that Maximus unload it at the price the developer paid or less. Real-estate deals are driven these days by speculative capital, and the people who put up the money at times just want out.”
The Wall Street Journal. “San Francisco will put to vote next Tuesday a punitive new approach to ending the blight of empty storefronts. On the ballot is a tax on property owners or leaseholders whose storefronts stay vacant for six months or more. If two-thirds of voters approve the measure, San Francisco would become one of the first big U.S. cities to tax landlords for store vacancies when it goes into effect next year. Washington, D.C., imposed a similar tax in 2011, though it was on residential and commercial property vacancies, not just retail.”
“The issue of urban storefronts lingering vacant for many months or even years has plagued downtowns and residential neighborhoods from New York City and Boston to Berkeley, Calif., while city officials have struggled to find workable solutions. Even getting the tax on the ballot may be already having the desired effect, said Daniel Macchiarini, president of the North Beach Business Association. At least 18 new North Beach tenants have signed leases since the tax was proposed early last year, he said. Of the neighborhood’s 30 remaining vacancies, landlords at 20 of them are now marketing the space, he said.”
“‘Suddenly, for-rent signs started going up on all these buildings,’ said Mr. Macchiarini.”
From Houston Public Media in Texas. “Houston commercial spaces are going through growing pains as oil and gas prices slump. And that comes just as landlords and big developers have overbuilt rental spaces. Energy companies account for 30 percent of office space, so as the market tightens the real estate market feels the pinch.”
The South Florida Business Journal. “Apeiron Miami, a condominium project that was slated for the Jockey Club near North Miami, is the target of an $8.6 million foreclosure lawsuit. The litigation from the lender came a month after the developer filed a lawsuit against the mortgage holder, alleging a ‘loan to own’ scheme. The project, at 11119 and 11121 Biscayne Blvd., plus 1580 N.E. 111th St., is unable to move forward amid a host of lawsuits, including a case that has placed the developer into receivership.”
“There are also four pending lawsuits against Apeiron Miami LLC from vendors that claim they weren’t paid in recent months. If the land is seized in foreclosure, those vendors wouldn’t be able to go after the property to collect.”
The Miami Herald. “For two years federal investigators in Miami have patiently waited for reams of Swiss bank records to be turned over so they could bring a monumental money-laundering case against a wealthy circle of Venezuelan businessmen and ex-government officials. Finally, those secret bank records have arrived, due to a major decision to release them by Switzerland’s highest court.”
“With that critical evidence in hand, U.S. prosecutors can now move forward and decide on filing a long-planned indictment charging four members of Venezuela’s young business elite — known as ‘boliburgueses’ — and two former high-ranking officials in the government’s oil sector, along with a Swiss banker at the center of the alleged international money-laundering racket.”
“The latest U.S. investigation, led by Homeland Security Investigations, has zeroed in on a half-dozen ‘targets’ suspected of transferring embezzled Venezuelan government funds into bank accounts, real estate and other assets in Miami and New York, according to U.S. authorities.”