Scott Miller's December 2011 Newsletter

Real-estate calendar

CREDAA's Upcoming Events (Dec-Feb 2012)
In a recession, you have two options: hole up in a bunker and hope it ends before you run out of tinned peas, or innovate and emerge stronger than when the economy took the hit. Historically recession is an especially good time for entrepreneurs to build loyal followers and strengthen the business,

Pacific Northwest FIABCI (International Real Estate Calendar)
Monday December 19, 2011 10 am – Noon
Wednesday : February 15, 2012 11 am – 2 pm
Tuesday : March 13, 2012 11 am – 2 pm
Monday : May 7, 2012 11 am – 2 pm

SEATTLE KingCounty REALTORS®
12410 SE 32nd Street Suite#100
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Local

Schnitzer's $1.2B selling spree will fuel new projects
Seattle developer Schnitzer West sold yet another of its properties this past week, which prompted us to wonder:

Three Seattle office towers up for sale
Three Seattle office towers — 22-story Second & Seneca, 20-story Metropolitan Park East and 18-story Metropolitan Park West — have been put up for sale by owners Walton Street Capital Walton Street Capital Latest from The Business Journals CBRE Capital Partners buys Smith Tower nonperforming loan notes Stonebridge moves forward in NoMa, BethesdaStonebridgeCarras starts work on office building in NoMA Follow this company of Chicago and Tishman Speyer Tishman Speyer Latest from The Business Journals Deals could be in store for LivingSocialChina Central Television inks District leaseTishman picks affordable site for 201 Folsom St. Follow this company of New York, who bought them in 2006 and 2007.

Amazon takes space at West 8th
Amazon.com Amazon.com Latest from The Business Journals Shopping for French hens and lords-a-leaping on Amazon.comCyber Monday spending soars 33 percent, beats Black FridayCyber Monday spending soars 33 percent, beats Black Friday Follow this company Inc. has wolfed down another large chunk of prime downtown Seattle office space. The fast-growing online retailer is taking space on floors 7 through 10 and on floors 15 through 24 in the West 8th office tower at 2001 8th Avenue in downtown Seattle. That's according to permits filed earlier today requesting approval for interior alterations.

Ground broken at Ballard Denny's site for apartments
Remember the fight over the old Denny's restaurant at Northwest Market Street and 15th Avenue Northwest in Ballard that preservationists wanted to remain but developers eventually won and tore it down? Ground has been broken on the site for new apartments.

Seattle home prices drop in latest report
Seattle home prices are down 6.5 percent from a year ago – worse than average for the U.S., according to the S&P/Case-Schiller Home Price Indices.

New $20M fund sees promise in commercial properties
Four veteran Seattle real estate executives this week launched a $20 million investment fund for wealthy private investors that will target under-performing commercial properties in the Puget Sound area.

Top Commercial Property Sales of 2011
While commercial real estate markets have certainly not recovered as fast as the industry would like, some sizable Puget Sound-area deals have moved forward in the first three quarters of 2011.

Apartments planned near Seahawks' stadium to stand out
A 25-story apartment project planned on the existing north parking lot at CenturyLink CenturyLink Latest from The Business Journals DBJ Tech Watch for Friday 12/2: News of Apple's iPhone, Zynga, YouTube and moreCenturyLink will open books to union workersSynacor plans for IPO Follow this company Field in Seattle will

Construction begins on project at Seahawks' stadium parking lot
After a three-month delay, developer Kevin Daniels has started construction of Stadium Place, the first phase of an ambitious, mixed-use redevelopment of the north parking lot by CenturyLink Field.

Receiver takes control of Seattle's Smith Tower
Smith Tower Smith Tower Latest from The Business Journals Smith Tower may be sold to big Pioneer Square landlord Follow this company , Seattle's distinctive and historic first skyscraper that now sits 70 percent vacant, is now under the control of a court-appointed receiver.

South Seattle warehouse fetches high price: $22M
Public records show a South Seattle warehouse sold Tuesday for an eye-catching price: more than
$21.6 million.

Kimberly-Clark to close Everett mill after talks on sale break down
Kimberly-Clark Kimberly-Clark Latest from The Business Journals Kimberly-Clark's ranking Fox Cities exec joins RadioShack boardRadioShack names Kimberly-Clark exec to its boardRadioShack adds Kimberly-Clark exec to board Follow this company is planning to close its mill in Everett by the end of March after negotiations to sell the mill broke down.

Seattle apartment rents expected to rise in 2012
Apartment dwellers in the Seattle area have seen their rents rise 4.5 percent over the past year and rents will rise 6 percent next year, according to a new report.

Security Plans Up to 10 Apartment PurchasesSEATTLE-The company recently bought four apartments on the West Coast, and will buy three to six more by 2015.

Ex-WaMu execs to settle with FDIC for $75M: Report
Three former executives at Washington Mutual Inc. — ex-CEO Kerry Killinger; ex-COO Stephen Rotella; and ex-home loans president David Schneider — are reportedly settling claims of gross negligence in the collapse of the Seattle bank with the Federal Deposit Insurance Corporation for less than $75 million.

Seattle schools mull how to pay $50M for building
The Seattle School District Seattle School District Latest from The Business Journals Higher gas prices hurting school districtsSeattle school district was warned of woes in 2009Seattle teachers approve contract, disapprove of superintendent Follow this company owes more than $50 million on its 10-year-old administration building near the stadium district and there doesn't seem to be a plan in place to figure out how to pay for the building.

National

Church Turns to Higher Authority in Zoning Battle
SAN LEANDRO, Calif.—Sundays at Faith Fellowship Church, Pastor Gary Mortara calls on God's help to heal the sick, repair torn marriages and rescue lost souls. But when city officials here rejected plans to move his growing congregation to a bigger building, Mr. Mortara turned to another authority: the Ninth U.S. Circuit Court of Appeals.

Zell Firm Leads Bids for Archstone
Equity Residential, the apartment company headed by real-estate mogul Sam Zell, has emerged as the lead bidder in the contest to buy roughly half of rival Archstone in what would be one of the largest real-estate transactions since the downturn, according to people familiar with the situation.

Atlanta's Rental Rebound
Developers are set to break ground next month on an $82 million glass tower in Atlanta's stylish Midtown area in the latest sign that the apartment recovery is breathing some life into the country's troubled construction sector.

For the U.S.: Hostels With a Luxe Touch
Billionaire Ronald Burkle, a private-equity investor and big Democratic fund raiser, is appealing to a new constituency: scruffy, 20-something backpack travelers who would rather not stay in a hotel.

Just Add Liquor
Mall owner Pennsylvania Real Estate Investment Trust is ready to embark on a $15 million redevelopment of the aging Moorestown Mall in tiny Moorestown, N.J., after finally gaining a key component that it coveted for years: booze.

Younan Keeps Aim High
Zaya Younan is no exception to the rule that real-estate developers generally have big ambitions.

Debt-Servicer Deal Poses Questions
A debt-restructuring deal involving two distressed Michigan office buildings has raised concerns among analysts and prompted a debate in the commercial mortgage-backed securities industry about the role of special servicers.

Sluggish Growth Expected for Values
It is going to be a tough slog for the commercial-real-estate industry, says Moody's Investor Service.
U.S. commercial-property values overall are expected to see sluggish growth in coming years, even dropping some next year. By 2015, the firm projects that office values will rise just 1.3%.

A Biotech Building Boom
The pharmaceutical industry is cutting back these days, but you would never know it from the construction underway by Pfizer Inc.

Dreaming of a New Vegas in Miami
MIAMI—A Malaysian gambling company wants to build what could be the world's largest casino on prime land along Miami's waterfront. It has spent about $450 million on real estate, pledged to help rebuild part of an interstate highway and hired 23 lobbyists to press for a new Florida law.

Academics of Real Estate
Across the U.S., new development projects are in short supply, given a cautious sentiment among lenders and investors

Redondo Beach Waterfront to Undergo $30M UpgradeREDONDO BEACH, CA-The coastal city in Los Angeles County plans a new hotel, 300,000 square feet of new retail and refurbishment of existing buildings, in a $30 million-plus effort to revive Redondo Beach as a regional waterfront attraction.

International

Market held back by lack of prime assets
European property markets have seen something of a broad-based recovery since the end of the recession in 2009.

Scaling Back on Abu Dhabi Growth
After the collapse of the Dubai property market in 2009, Abu Dhabi bailed out its neighbor to the tune of $10 billion. Now, Abu Dhabi, which holds 7% of the world's oil reserves, is scaling back its own ambitious real-estate projects to conserve cash.

Designers Rethink Flashback to 9/11
SEOUL—A proposed design for a pair of high-rises here that observers say looks like the exploding Twin Towers of New York's World Trade Center was just one of many ideas—and far from set—a local developer said, after the Dutch architecture firm behind the idea issued an apology.

REIT BEAT

Hotel Deals Decline as Stocks Drop
For acquisition-minded hotel owners, now would seem to be the perfect time to pounce: Hotel property prices are relatively low, while hotel revenue is growing. Yet acquisition activity has slowed.

Allianz Completes $265M Sale of Industrial Portfolio
Allianz Real Estate America finalized its sale of a 7.97 million-square-foot portfolio of industrial assets in the central New Jersey, Chicago, Dallas, Atlanta and Columbus markets. A KTR Capital Partners affiliate purchased the 18 buildings for $265 million or $33 per square foot.

SL Green: A REIT Worth Buying Before The Herd
I just returned from my annual holiday visit to NYC, mainly to see some shows, visit with family, and take in that holiday spirit that only NYC can deliver in so many wonderful ways

REIT buys Haven apartment complex in Fredericksburg
The Haven at Celebrate Virginia apartment complex in Fredericksburg has a new name and owner.

REITs Overcame 2011 Tests
REITs have passed the tests that have come their way in 2011, according to analysts from Morningstar.

Distressed

Zell's Archstone Deal Upsets Lehman Plan
A deal struck late last week by Sam Zell's Equity Residential to buy a 26.5% stake in Archstone could undercut plans by the estate of Lehman Brothers Holdings Inc. to unwind one of its largest remaining assets

Lehman Estate Plans a Bid for Added Archstone Stake
A week after a bankruptcy judge approved its wind-down plan, the estate of Lehman Brothers Holdings Inc. is coming out swinging.

J.P. Morgan to Revive Bad-Loan Securities
J.P. Morgan Chase & Co. plans next year to issue the first U.S. commercial mortgage-backed securities supported by defaulted loans since the 1990s, as it revives a practice that regulators used to extricate the nation from the savings & loan crisis.

Home Prices Edge Downward
Home prices declined in September and are poised for a grim winter as banks step up their efforts to take back and sell foreclosed properties.

Brookfield Takes Chase of Distressed Deals
Brookfield Asset Management, the Toronto-based investment giant that established a bridgehead in U.S. real estate during the downturn of the early 1990s, is ramping up its pursuit of big-ticket distressed properties.

LA Hot Spot
While some landlords are still struggling to fill buildings, Tishman Speyer is turning the empty former Beverly Hills, Calif., headquarters of Hilton Hotels Corp. into an A-list Mecca.

Modest Changes in Commercial/Multifamily Mortgage Delinquency Rates During Third Quarter
WASHINGTON, D.C. (December 6, 2011) – During the third quarter, delinquency rates declined for commercial and multifamily mortgages held by banks and in commercial mortgage backed securities (CMBS). Delinquency rates increased for loans held by life insurance companies and held or insured by Fannie Mae and Freddie Mac but are still at low levels, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

A10 Hires Ex-J.P. Morgan Dealmaker to Head Southeast
ATLANTA-A10 Capital may be a young company, but it is attracting some heavy hitters. The commercial real estate financing firm has hired Chuck Taylor to head up Southeast markets for the firm.

Atlanta real estate firm focuses on development, distressed investment growth
Atlanta-based real estate firm Carter is launching an ambitious new focus, targeting $500 million in potential real estate development and investment opportunities.

The Great $2 Trillion Global Real Estate Liquidation
More than $2 trillion of global real estate assets is up for sale - either as a result of distress or deleveraging - according to U.S. hedge fund Fortress Investment Group - as global markets come to grips with an historic, generational rebalancing.

Bahrain Buyer Grabs Lender-Owned Condo for Half Price
JUPITER, FL-A lender-owned beachfront property in Jupiter just sold to a foreign investor for $9.75 million, or $812,500 per unit. 3000 Ocean Dr., a 12-unit condo, was completed in 2010 at a cost of $18 million.

RE Trends

Charmed Farms
Prices of Midwest farmland jumped 25% during the third quarter from a year earlier, yet some economists see the rally slowing next year.

Nursing Home Stocks Ailing
Landlords to nursing homes are being sent to the sick house by investors who fear that deep cuts in Medicare spending will siphon off rent payments.

Zillow's 'fuzzy math' used in home valuations
Just how do online real estate companies like Seattle's Zillow.com Zillow.com Latest from The Business Journals Chestnut Hill is Boston area's hottest market in Q3Leaders & Laggards: Chestnut Hill is hottest market in Q3 housing analysisSeattle metro home values fall 5.7% from Q3 2010 Follow this company determine how much your home is worth? "Fuzzy math" might enter the equation.

Hotel Deals Decline as Stocks Drop
For acquisition-minded hotel owners, now would seem to be the perfect time to pounce: Hotel property prices are relatively low, while hotel revenue is growing. Yet acquisition activity has slowed.

7 Reasons D.C. Is Experiencing a Strong Multifamily Market Washington, D.C.—Multifamily investment in 2011 has been the golden child of commercial real estate. With strong economic and employment fundamentals, large metros such as Washington, D.C., have attracted investors. Through the third quarter of 2011, the D.C. metro market saw over 17,500 multifamily units trade hands for $3.2 billion, thus ranking this market just behind number one ranked Manhattan, based on total sales volume. Washington, D.C., investment sales are on pace to match those of D.C. metro from 2006, second only to the record $8.5 billion in sales recorded in the D.C. metro area in 2007.

Homing in on Fannie, Freddie
When Steve Linick first met senior managers at Fannie Mae and Freddie Mac early this year, he told them he would be no ordinary Washington regulator. His office has the power to make arrests, issue subpoenas and conduct searches, and some of his employees carry badges and guns.

Thinking Deeply On Risky Lending
Many companies that collect mortgage payments hire outside firms to train employees and develop scripts for them to use when talking to borrowers. But Ocwen Financial Corp., which specializes in risky loans, has its own team of social psychologists.

CRE WebCasts

FINRA Puts Scrutiny on REITs Exclusive Video
SCOTTSDALE, AZ-The Financial Industry Regulatory Authority is putting pressure on non-traded REITs, trying to come up with accurate valuations, explained Danny Prosky, president and chief operating officer of Grubb & Ellis Healthcare REIT II. He spoke here recently with GlobeSt.com's John Salustri at the RealShare Medical Office conference.

REITs Overcame 2011 Tests
REITs have passed the tests that have come their way in 2011, according to analysts from Morningstar.

Scott Miller's November 2011 Newsletter

How to Analyze & Sell Apartment Buildings
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Fidelity National Title Q3 2011 Fact Sheet Now Available

Fidelity National Financial, Inc. (NYSE:FNF) is the leading provider of title insurance, mortgage services and diversified services. FNF is the nation’s largest title insurance company through its title insurance underwriters - Fidelity National Title Insurance Company, Chicago Title Insurance Company, Commonwealth Land Title Insurance Company and Alamo Title Insurance - that collectively issue more title insurance policies than any other title company in the United States.

FIABCI/AREAA/CREDAA Is joining the SMBA for our Real Estate Networking Happy Hour and The SMBA’s Annual Holiday Party

http://www.seattlemba.org/blast/20111213_HolidayParty.html
Join FIABCI International Real Estate Federation, AREAA (Asian Real Estate Association of America), CREDAA (Commercial Real Estate Distressed Assets Association) and SMBA (Seattle Mortgage Bankers Association) at our upcoming Happy Hour and Holiday Party networking event.
Club Auto Kirkland - Harold LeMay Museum 11200 Kirkland Way, Kirkland, WA 98033 To view the LeMay Club Auto in Kirkland click here.
Enjoy appetizers and a holiday buffet dinner, and spread some holiday joy by participating in the canned food drive! Spouses and significant others are welcome. There is a small registration fee for this event.
Registration for this event will open November 16, 2011.
Come. Meet. Participate. Connect!

Local

A "Crystal" centerpiece for Federal Way?
Building a real downtown for Federal Way, Take Three.
This past week the South King County city's council tentatively agreed to sell a chunk of its sprawling center to a Massachusetts company that has proposed an eye-catching, 15-building complex on the site.

Phoenix apartment developer expands NW office
Phoenix-based Alliance Residential Co Alliance Residential Co Latest from The Business Journals Commercial Real Estate RoundupNorth Boca Village Center sold at 64% discountAlliance Residential to develop apartments in Lewisville, Fort Worth Follow this company . has hired a new regional manager to grow its portfolio of apartment projects in the Pacific Northwest.

Renton Housing Authority to break ground on new townhomes off Sunset
The first steps toward a major revitalization of the Sunset area of the Highlands was taken Monday with the groundbreaking for eight, four-bedroom townhomes.

Slide show: SBA loans reach historic high
New government incentives caused lenders to make a record volume of Small Business Administration Small Business Administration Latest from The Business Journals SBA begins training for women-owned businesses SBA begins training for women-owned businesses U.S. Bank sets SBA record Follow this company loans in fiscal year 2011 - but the surge may end this year as the incentives have now expired.

Jeff Bezos: America's 28th-largest landowner
Amazon.com Inc. Amazon.com Inc. Latest from The Business Journals DBJ Tech Watch for Monday 10/24: News of the Oracle-RightNow deal, Google Music and moreAmazon subsidiary now delivering groceriesDBJ Weekend Tech Watch for 10/22-23: News of Google, Apple, Yahoo, Netflix and more Follow this company CEO Jeff Bezos is the nation’s 28th largest landowner, according to a list by The Land Report, a magazine and web site of American landowners

CBRE Capital Partners pays $42.5M for Smith Tower note
A German bank has sold $42.5 million in "nonperforming" loans on Seattle’s iconic Smith Tower and the adjacent Florence Building to CBRE Capital Partners, a unit of CBRE Investors.

Schuster Realty Partners buys Tukwila office park
The Schuster Realty Partners LLC has paid $7.5 million for the 78,000-square-foot Fairway Center in Tukwila.

Pacific International Bank CEO abruptly resigns
Pacific International Bank Pacific International Bank Latest from The Business Journals SBA lending boomed in Q4 2010Five new community banks continue push to raise capital as economy downshiftsKorean Americans form bank Follow this company CEO Woosung "Edward" Park stepped down today after 10 years at the helm. The Seattle bank's chief credit officer, Paul Sabado, was named as an interim replacement, pending regulatory approval.

Seattle real estate site Redfin raises $14.8M in venture capital
It’s a big day for funding news, and you can add Redfin to the list……

Zillow posts record revenue, announces acquisition
Still riding high after its successful public offering in July, Zillow.com announced a new acquisition and said it has raised its full-year outlook after seeing record revenues and traffic in the third quarter of 2011.

Buyers circling luxury retail center
Schnitzer West LLC Schnitzer West LLC Latest from The Business Journals Shops at the Bravern put up for saleSchnitzer West sells two buildings for 0M Schnitzer West sells two buildings for 0M Follow this company has put up for sale its luxury retail shopping center in downtown Bellevue…..

Mastro bankruptcy trustee gets $35.8M in judgments
U.S. Bankruptcy Judge Marc Barreca on Tuesday awarded $35.8 million in judgments to the trustee in the contentious bankruptcy of missing Seattle real estate developer Michael R. Mastro.

Seattle metro home values fall 5.7% from Q3 2010
Home values in the Seattle metro area fell 1.5 percent from the second quarter of this year, and 5.7 percent from a year ago, to $257,000, according to Zillow.com Zillow.com Latest from The Business Journals King County housing prices take another tumbleZillow posts record revenue, buys Calif. firm for .8MZillow posts record revenue, announces acquisition Follow this company ’s home values index for the third quarter of 2011.

Mastro's largest creditor facing involuntary bankruptcy
In a continuing effort to recover the hundreds of millions owed to creditors in Seattle real estate developer Michael R. Mastro’s bankruptcy, trustee Jim Rigby is trying to force Mastro’s longtime business associate and friend Thomas R. Hazelrigg III into an involuntary Chapter 7 bankruptcy.

National

Motel Is Latest Stopover in Federal Forfeiture Battle
TEWKSBURY, Mass.—The $57-a-night Motel Caswell, magnet for hard-luck cases, police patrol cars and the occasional drug deal, is the unlikely prize in a high-stakes tug-of-war between conservative legal activists and the government.

New York Placing Tallest Order
A Los Angeles real-estate company founded by two former Israeli paratroopers and a Drexel Burnham Lambert executive has emerged as one of the country's most active property buyers. Now it is poised to unveil plans for its main showpiece: New York's tallest residential tower.

Washington's Office Market Dials Back
The rising pressure to control federal spending is beginning to take a toll on Washington landlords.
The Washington region's office market in the third quarter registered its worst performance since late 2009, a sharp contrast to a boom the area saw throughout 2010.

Shopping in Scottsdale The sale of the Shea Scottsdale shopping center just outside Phoenix helps explain a curious phenomenon taking place in retail real estate.

The Nation's Most Avid Trophy-Home Buyer?
One of the nation's most voracious consumers of trophy real estate is back on the hunt.
Since the mid-1990s, software billionaire Larry Ellison has accumulated hundreds of millions of dollars worth of top-shelf properties around the world. The portfolio of Oracle Corp.'s co-founder includes five adjacent lots in Malibu, Calif.; a Newport, R.I., mansion formerly owned by the Astor family; a historic garden property in Kyoto and an estate in Rancho Mirage, Calif., with a private, 19-hole golf course.

Housing Lift Proves Fleeting
Sales of previously owned homes slipped in September as Americans were hit by economic uncertainty, high unemployment and tight lending.

Blackstone to Pay $1.08 Billion for Suburban Offices
Blackstone Group LP (BX), the world’s largest private-equity firm, agreed to pay $1.08 billion to buy Duke Realty Corp. (DRE)’s suburban office holdings in cities including Chicago, Dallas and Atlanta, according to a statement.

New Jersey's Newport Tower Trades for Record Price
They don't call it the Gold Coast for nothing. In the largest sale of a single office property ever recorded in New Jersey, the 36-story, 1.05 million-square-foot Newport Tower at 525 Washington Blvd. on the Hudson River waterfront sold this week for $377.5 million.

New rule a major condo headache
WASHINGTON — Is a little-publicized switch in federal mortgage policy causing huge problems for condominium sellers, buyers and homeowner-association boards across the country — even depressing prices and blocking refinancings?

Foreigners' Sweetener: Buy House, Get a Visa
The reeling housing market has come to this: To shore it up, two Senators are preparing to introduce a bipartisan bill Thursday that would give residence visas to foreigners who spend at least $500,000 to buy houses in the U.S.

New Tricks for Old Malls
Sobered by store closings and the rise of online shopping, owners of U.S. shopping centers are filling space and drawing visitors by turning to unusual tenants like gun ranges and go-cart tracks.

Lightstone Chief Defends a Bankruptcy
Real-estate investor David Lichtenstein, who faces a court order to pay lenders a $100 million penalty for his 2009 decision to put his Extended Stay hotel chain into bankruptcy, says he's being branded the bad boy for doing the right thing.

Saving the Clock Tower
Marriott International Inc. has agreed to buy Manhattan's famous Clock Tower building, raising the prospect that the company will use the historic property to revive a struggling new hotel brand.

Apartment Values Rise, as Do Rents
Strong growth of rents and occupancy levels of rental apartments have pushed some building values to record levels as Americans shift away from home ownership.

Dubai launches domestic property fund
Dubai has launched a fund focused on its domestic real estate market as the government moves to underpin property prices, which have fallen two-thirds from their 2008 peak. The government’s Investment Corporation of Dubai and Brookfield Asset Management will both inject seed funding of $100m into the fund, which will be capped at $1bn.

Trials in Low-Rent Bastion in Silicon Valley
Apartment giant Equity Residential has run afoul of a working-class community at the northern end of Silicon Valley by trying to buy the area's largest complex of rent-controlled housing, which has been coveted by investors for years.

Top of the World
Want to look out from the top of One World Trade Center? The line starts forming in 2014.
Last month, the Port Authority of New York and New Jersey and Durst Organization, began a formal search for companies to run the observation deck at the top of what is to be North America's tallest tower.

CBRE Completes Purchase of ING's Real Estate Investment Business.
CBRE Group Inc. on Monday completed a $900-million acquisition of ING Group's real estate investment management arm in Europe that makes the Los Angeles company the global leader in that business.
Carlyle Cuts Fees to Sell New Fund
Carlyle Group, the large private-equity firm that is preparing for a public share listing, has had to cut fees and offer other unusual incentives to lure investors to a new $2.3 billion real-estate fund.

The Science of a Settlement
It won't be fun for Citigroup Inc. and the Securities and Exchange Commission to defend their proposed $285 million settlement at a Wednesday court hearing ordered by a very skeptical federal judge

The Comeback Trail
The real-estate landscape is strewn with hard-hit developers and investors trying to scratch their way back to the top. But for Victor MacFarlane, a former darling of the nation's largest public pension fund, the comeback trail looks especially daunting.

Related Goes Blue
Stephen Ross's alma mater is being good to him.
Last month, the University of Michigan Board of Regents approved a $35 million commitment from its endowment to a real-estate fund run by Related Cos., the New York real-estate firm run by Mr. Ross, a 1962 graduate of the school.

Time Out for a Willis Tower Sale
The owners of the Willis Tower in Chicago, North America's tallest building, have decided to take a "marketing time out" in their effort to sell the property, according to one of the brokers involved in the effort.
REITS
REITs Outperform Market in October
Real-estate stocks outperformed the broader market in October as many commercial landlords reported robust earnings.

Valuations, Fundamentals Key in Current REIT Market
Stable fundamentals and attractive valuations have today’s commercial real estate market on firmer footing than it was during the financial crisis of 2008, said Jonathan Litt, managing principal of Land and Buildings Investment Management LLC.

Canadian REIT Buys Net-Leased BJ’s Wholesale Club for $16M
VOORHEES, NJ-Canadian real estate company H&R REIT has acquired a retail condominium net leased to BJ’s Wholesale Club at 152 Route 73 here for $15.9 million—or $138 per square foot—according to Marcus & Millichap Real Estate Investment Services, which represented both buyer and seller. But the deal wasn’t without its challenges.

Strategic Storage Trust, Inc. Acquires Fifth New Jersey Facility
TOMS RIVER, NJ, Oct 26, 2011 (MARKETWIRE via COMTEX) -- Strategic Storage Trust, Inc. (SSTI), a publicly registered non-traded REIT targeting the self-storage market, recently purchased a 630-unit self-storage property in Toms River, NJ for a purchase price of approximately $5.7 million. SSTI's New Jersey self-storage portfolio now includes five facilities totaling approximately 4,200 units. The new site will be rebranded under the SmartStop(TM) Self Storage trade name.

International

Title Policy vs. Legal Opinion

Approved Countries*

Spain Hit by Downgrade, Falling Home Prices
MADRID—Spain was hit by a double whammy Tuesday when Moody's Investors Service downgraded the country's government-bond rating, citing fading growth prospects, and the government said housing prices fell further in the third quarter, a concern for embattled banks.

New law will let Cubans buy and sell real estate for first time in half-century
HAVANA — For the first time in a half-century, Cubans will be allowed to buy and sell real estate openly, bequeath property to relatives without restriction and avoid forfeiting their homes if they abandon the country.

Real estate regulator bill will improve transparency: Selja
New Delhi : The real estate regulator bill, to be tabled in the coming winter session of parliament, will improve governance and transparency in the sector, union Housing and Urban Poverty Alleviation Minister Kumari Selja said Friday.

Starwood sees commercial real estate opportunities in Europe volatility
The CEO of commercial real estate investment trust Starwood Property Trust (STWD: 18.90 -0.37%) said the current banking and sovereign crisis in Europe is creating a wealth of opportunity for investments, both domestic and abroad.

Argentine real estate: ditching the dollar?
A strange thing has started to happen in Argentina’s real estate market: since new foreign exchange controls were introduced this week, some people have started to buy property… in pesos.

Asia Pacific Poised to Outperform Other Global Commercial Property Regions in 2012
According to global real estate firm Jones Lang LaSalle, the changing face of the region - urbanisation, population growth, output of commodities and manufactured goods and cost competitiveness in the services sector - are the main economic drivers for Asia Pacific to continue to outperform other regions. Capital inflows from Asia and other regions will continue to also propel the Australian commercial market in 2012

CBRE Completes Purchase of ING's Real Estate Investment Business.
CBRE Group Inc. on Monday completed a $900-million acquisition of ING Group's real estate investment management arm in Europe that makes the Los Angeles company the global leader in that business.

India: Now Real Estate Sector Needs Reform: Vinod Behl
The Supreme Court ruling banning real estate transactions on the basis of power of attorney and making sale deed compulsory for property sale is a welcome step that will make secondary market transactions fool-proof. It will check the evasion of stamp duty and black money dealings no doubt. But there is still an urgent need for an overall reform of real estate that is facing a credibility crisis among consumers and investors alike.

Property Theft In Costa Rica
The idea that somebody would steal your property seems an inconceivable notion. However, in Costa Rica it can and does happen. I will point out how it happens and what you can do to minimize your risk.

Distressed
The Distressed Debt Report

'Zombie' Properties Come Back to Life
Four months ago, Ky Nguyen was paying about $6,000 a month in rent for his small, 1,600 square-foot dental office, part of a mostly vacant strip mall in Manteca, Calif.

Miami Condos on Upswing
The sale of a huge block of vacant apartments in a foreclosed Miami development has marked an important milestone in the city's housing recovery: The condo glut is coming to an end.

A Tiff Develops Over Loan Change
"Another month, another large loan modification."
So begins a Deutsche Bank report over the restructuring of a $325 million loan on a Manhattan office building that has touched off a dustup in the tight-knit world of commercial mortgage-backed securities.

Old Debts Dog Europe's Banks
European banks are sitting on heaps of exotic mortgage products and other risky assets that predate the financial crisis, adding to pressure on lenders that also are holding large quantities of euro-zone government debt.

Related Cos. Gets Subpoena in Fannie Mae Probe
The Related Cos., a closely held New York developer, was served with a subpoena as part of a federal inspector general's investigation of a business transaction with Fannie Mae, according to people familiar with the matter.

Pinch on China Developers
SHANGHAI—A shuffle in the ownership of a piece of prestige Shanghai real estate demonstrates the pressures besetting China's property developers.
RE Trends
Plots & Ploys
A deal to sell a three million square-foot portfolio of office buildings pulled off a fitting feat for the Halloween holiday: It came back from the dead.

New Mortgage Plan Floated
State and federal officials are pushing a plan that could help some "underwater" borrowers get refinancing assistance in the latest government bid to break a legal impasse with big banks over alleged foreclosure abuses and ease problems in the housing market.

State Rules on Foreclosure
The highest court in Massachusetts ruled that a homeowner who bought a foreclosure that hadn't been properly conducted by the foreclosing bank in 2006 didn't have legal ownership of the property.

Faulty mortgages have cost 5 biggest home lenders $69 billion
JPMorgan Chase disclosed $1.3 billion of new expenses tied to faulty mortgages and foreclosures in its third quarter, pushing the bill for the five biggest home lenders since 2007 to almost $69 billion.

Mortgage Insurer Wilts
A key piece of the nation's mortgage market is showing new cracks.
Arizona regulators have taken over a big mortgage insurer and put restrictions on its claims payments, the latest indication that the housing bust is not finished taking casualties—and that lenders and investors are likely to suffer more losses.
Home Lending Revamp Planned
Federal regulators on Monday unveiled a major overhaul of an underused mortgage-refinance program designed to help millions of Americans whose home values have tumbled.

CIT Is Upbeat on the Economy
CIT Group Inc., nearly two years out of bankruptcy, is showing there is life after near-death.
Despite swinging to a third-quarter loss, the lender to small and midsize businesses on Tuesday struck an upbeat tone about commercial-loan demand, saying the U.S. economy doesn't appear to be headed toward a double-dip recession. CIT also reported headway in efforts to reduce its high-cost debt, a source of pressure on recent quarterly results.

Apartment Values Rise, as Do Rents
Strong growth of rents and occupancy levels of rental apartments have pushed some building values to record levels as Americans shift away from home ownership.

Construction Starts Are Slowing Down
The construction industry will see little growth next year due to the slow economy, according to a forecast by McGraw-Hill Construction.

Seattle metro home values fall 5.7% from Q3 2010
Home values in the Seattle metro area fell 1.5 percent from the second quarter of this year, and 5.7 percent from a year ago, to $257,000, according to Zillow.com Zillow.com Latest from The Business Journals King County housing prices take another tumbleZillow posts record revenue, buys Calif. firm for .8MZillow posts record revenue, announces acquisition Follow this company ’s home values index for the third quarter of 2011.

Governments on the Prowl
While some state and local governments are selling office buildings and other properties to deal with the downturn, others are taking a different tack.

C(RE) BLOGS
The Mortgage Crisis: Some Inside Views
Occupy Wall Street is denouncing banks and Wall Street for "selling toxic mortgages" while "screwing investors and homeowners." And the federal government recently announced it will be suing mortgage originators whose low-quality underwriting standards produced ballooning losses for Fannie Mae and Freddie Mac.

Romney's Finest Hour
A friend of ours quipped recently that Mitt Romney could do his Presidential candidacy a lot of good if he took even a single position that is unpopular in the polls. Well, we can report that he has done that on housing policy, that he's being pummeled for it, and that it may be his finest campaign hour. It also contrasts favorably with the latest temporary, ad hoc and futile housing effort from President Obama.

Scott Miller's Welcome to the Jungle Blog Part III
Well, as I see it the Government has given the banks lots of access to money, as well as shored them up with cash to ensure that we did not have a cataclysmic collapse of the banking sector. Agree or not with that it happened and lending did not increase. If anything it decreased and the banks held the money close to their chest and invested it to raise their own value not their customers. Now we are sitting with around 22% or so of all homeowners owing more that what their home is worth. Worse in the hard hit areas like NV, AZ, and FL but the average nationally, and we have and unemployment rate problem +9%.

Foreclosures Up in October, but Default Notices Drop in Nevada
Foreclosure filings rose by 7% in October from the previous month to the highest level in seven months, offering a sign that banks are slowly working through the procedural fixes required by regulators as a result of processing abuses that surfaced last fall.

Military Families Lost in Housing Shuffle
Members of the U.S. military and their families have been thrust into a difficult spot due to the housing bust. They can be ordered to move, often across the country. And if their home has dropped in value, many are forced to sell it as a loss.

Scott Miller's Welcome to the Jungle Blog Part III

Well, as I see it the Government has given the banks lots of access to money, as well as shored them up with cash to ensure that we did not have a cataclysmic collapse of the banking sector. Agree or not with that it happened and lending did not increase. If anything it decreased and the banks held the money close to their chest and invested it to raise their own value not their customers. Now we are sitting with around 22% or so of all homeowners owing more that what their home is worth. Worse in the hard hit areas like NV, AZ, and FL but the average nationally, and we have and unemployment rate problem +9%.

The two big drags on the economy are housing and unemployment as described in this article in the Wall Street Journal Housing Lift Proves Fleeting “The reports highlight two critical drags on the economy: a broken housing market and mediocre employment gains. This summer's fears of the U.S.'s slipping into another recession appear to have ebbed, but businesses and consumers are bracing for a slow, extended economic-healing process……………………………………While the housing market has regained some ground—existing-home sales were up 11.3% in September compared with a year ago—foreclosure properties are weighing on prices, and high unemployment is breeding caution and keeping some buyers on the sidelines……”

The reason the housing lifts are fleeting are because the underlying problem is not being dealt with. The way they are trying to stimulate the economy is by providing those folks that really do not need or do not want to refinance their rate or by a home in the first place. For some people that would love to refinance to the lower rate or sell cannot do so because they are underwater. How do we fix that?

So let’s say that we were to set up an insurance pool that could be funded with the fines the banks are paying for settlements on their bad foreclosure process to start with add in the remainder of what funds HAMP and HARP and the bailouts, that did not work, Like the program in this article to help unemployed avoid foreclosure $1B foreclosure aid program ends with $568 million unspent . We take these funds and use them to refinance all of the homeowner’s loans to the current rate with one addition. We also refinance their loans to the current value of their homes worth. YES FORGIVE DEBT. If there is more money needed in the insurance pool lets kick start the economy with the $4 trillion on the sidelines in cash that could be put to use by allowing that money to be invested into this insurance pool with a guaranteed rate of return.

The Government is already floating a similar concept, but to a limited degree as seen in this article in the Wall Street Journal New Mortgage Plan Floated. “State and federal officials are pushing a plan that could help some "underwater" borrowers get refinancing assistance in the latest government bid to break a legal impasse with big banks over alleged foreclosure abuses and ease problems in the housing market.“

So in this proposed plan the homeowner that had a house that was upside down and could not sell or refi now has that ability to do so. The qualifications for the refinance should be based solely on ability to repay and not on credit as some people have lost jobs, been downsized, or have had huge wage reductions and have paid the price with their credit. This principle reduction refi has one condition to the homeowner, if the value of the home goes up to a certain level they have to split the difference in a capital gains tax that goes to the insurance fund to cover the losses that were forgiven at the time of the refinance. This way the homeowners would get the ability to now move if they needed to and sell the home for what it was valued at and not have to go through the agonizing feet of short selling which takes months. Or they would have an enormous amount of freed up monthly capital and the new found freedom of not being so upside down in their home that they can’t breathe.

For those of you screaming your home is paid off, good for you, and if you help these people who were not as wise as you and they start consuming again, because they can now sleep at night and feel like going to a movie they may help pick up some of the tax burden. As well they may help a few people become employed out there as they put money to work and create demand. Also it will stop the steady erosion of people walking away or losing their homes to foreclosure driving your home prices lower. Check out the article Home Forecast Calls for Pain and a quote from the article “Economists, builders and mortgage analysts are predicting the weakened U.S. economy will depress housing prices for years, restraining consumer spending, pushing more homeowners into foreclosure and clouding prospects for a sustained recovery.” And this Costar article Housing Prices Unlikely to Recover Before 2020 While the housing sector will almost certainly gain strength during the next nine years, many bankers clearly believe prices will remain depressed for half a generation. This puts the devastation of the housing crash into perspective."

On top of that, by doing this they lift the economy up allowing stocks to rise so your 401K might actually grow. Novel Concept!

So then how do the banks share holders fair? Well the bank in doing the refinance let’s say write down a loan on a home that had a loan of 400,000 and is now worth 280,000. That 120,000 of written off debt would be submitted by the bank doing the refi to the bond holders who then submit to the insurance department making a claim and being reimbursed. Kind of like when they foreclose a property and claim their insurance money for the defaulted mortgage. This is then issued to the bondholders making them whole and passed along to the bank to ensure they do not have to impair the loss. Would you rather pay for $120,000 or $400,000? And that is if the homeowner doesn’t throw up the red flag file for bankruptcy and then the tax payer picks up the whole bill.

The homeowner is now making payments at the current rate in the 4’s on a 30 year mortgage on 280,000 reducing their interest payments monthly by around $767, which they then can use to purchase food entertainment or other consumption products which adds demand a key component to hiring and adding tax revenue to the bottom line. One thing we are all looking for improvement in.

Now if this homeowner needs to sell they can do so without having their credit ruined and move to where there is a job. However, if the homeowner decides to stay in the home they would have to pay a capital gains tax of 50% of the gain to the insurance fund up to 400,000. Then after that $400,000 mark there would not be a capital gains penalty. Then the tax the rich extra could be looked at a little differently but that is another blog I will address later.

In the event that the homeowner has to sell and move they would not be penalized the difference either in tax or in deficiency judgment, as it would be like resetting the clock allowing the market to find a bottom. Everyone else who has a home would not have to see the loss of additional homes to foreclosure and erosion of additional equity because the unemployment rate gobbled up their neighbor. Also, we would not have to see the home value decline further, because the next door neighbor walked away. This stops the additional distress in values, as the unmanned home is under maintained and then sold for less than market value. This stops the dragging of all the homes in the area to lower prices

Scott Miller's October 2011 Newsletter

Real-estate calendar

FIABCI/AREAA/CREDAA Real Estate Networking Happy Hour

O’Asian

800 5th Ave # 1
Seattle, WA 98104-3176

October 25, 2011

Time: 4:00 pm – 7:00 pm

Limited to the first 50 people

RSVP : cheryl.mcivor@markoagroup.com

Join FIABCI International Real Estate Federation, AREAA (Asian Real Estate Association of America), and CREDAA (Commercial Real Estate Distressed Assets Association) at our upcoming Happy Hour networking event.

The event will be held at O’Asian in Downtown Seattle from 4 pm to 7 pm.

All professionals, colleagues, friends, and anyone looking to connect are welcome! If you plan to attend, please email me a quick RSVP to cheryl.mcivor@markoagroup.com. Thank you!

Come. Meet. Participate. Connect!

_________________________________________________________________________________

“Doing Business in Latin America--Challenges and Trends.”

Event Details:

Title: Doing Business in Latin America-Challenges and Trends

Date: Friday, October 21^st, 2011

Time: 10:00 a.m. CST

Duration: 60 minutes

Cost: Free

Speakers:

Martin Castro (Moderator), Legal Manager, Bridgestone Argentina

Luis F. Ortega, Senior Manager, Deloitte Financial Advisory Services

Rodolfo Rivera, Regional Counsel, FNF Title International

To Register:

Email Mary Clodfelter at Mclodfelter@fnf.com or call 314-313-7788

How to Analyze & Sell Apartment Buildings

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Register today for an upcoming class

Los Angeles: Wednesday, October 19

National University: 5245 Pacific Concourse Drive, Los Angeles, CA 90045

Inland Empire: Thursday, October 20

National University: 3800 East Concours Drive, Ontario, CA 91764

Orange County: Thursday, November 17

National University: 3390 Harbor Boulevard, Costa Mesa, CA 92626

Local

Seahawk stadium parking lot development dispute ends

A resolved dispute over parking spaces means construction could begin as soon as next week on redeveloping the parking lot north of Seattle’s CenturyLink Field.

What does a $2M loft-condo in Seattle look like?

Though the nation’s housing market remains weak, certain people in certain cities still demand luxury — even minimalist luxury.

JLL Adds Pacific Real Estate Partners To Expand in Seattle, Portland

Jones Lang LaSalle gained significant market share in the Pacific Northwest this week, executing a long-rumored merger with Pacific Real Estate Partners (PREP) that expand JLL’s Seattle presence and establishes a beachhead in Portland.

Saint Croix Apartments Sell for $23.7M

GE Capital Real Estate sold the 264,000-square-foot Saint Croix apartment complex located at 1901 SW 320th St. in Federal Way, WA to Hamilton Zanze & Company for $23.65 million, or about $79,000 per unit. The REO sale marks the fifth property that Hamilton Zanze & Company has purchased from GE Capital Real Estate in the past year.

Fauntleroy Place site sold for $32M

An entity linked to Kirkland-based Madison Development paid $32.3 million for the mothballed Fauntleroy Place construction project at a foreclosure auction Friday morning, the West Seattle Herald’s Ty Swenson reports.

Tacoma's Reed family No. 9 on list of largest US landowners

The Reed family of Tacoma, which owns 770,000 acres in Washington state, is the ninth-largest landowner in the country.

Lowe's closing Tacoma store, 19 others in U.S.

Lowe's Cos. Inc Lowe's Cos. Inc Latest from The Business Journals Lowe's closing 20 stores, cutting 2,000 jobsLowe's closures includes one Twin Cities locationLowe's closing 20 stores Follow this company . says it is closing 20 underperforming stores in the U.S., including one in Tacoma.

New acting Seattle manager at Marcus & Millichap

Encino, Calif.-based Marcus & Millichap Real Estate Investment Services Marcus & Millichap Real Estate Investment Services Latest from The Business Journals High-end apartment sites selling in JacksonvilleMiami firm buys Groveland shops for .1MDone deals: Signature Place commercial space sold Follow this company has tapped Justin White to be the acting regional manager of the firm’s Seattle office, following the departure last month of longtime head Greg Wendelken.

Amazon-fueled building boom in Seattle's S. Lake Union not over

Developers are moving forward with more building plans near Amazon.com Amazon.com Latest from The Business Journals DBJ Tech Watch for Monday 10/17: News of Apple, Facebook, SpaceX vs. ULA and moreGoogle to challenge Apple, Amazon with music store?Amazon bypasses publishers and signs up authors Follow this company ’s new corporate campus, with one new building that might be slated for the e-commerce giant.

National

U.S. Home Prices Post Seasonal Rise

U.S. home prices rose for a fourth consecutive month in July but remain down from last year, according to Standard & Poor's Case-Shiller home-price indexes, as the housing market continues to struggle.

Rents Not Low on City High Streets

In picking a site for its flagship store, Japanese clothing company Uniqlo could have pushed for lucrative concessions from virtually any of the hard-up retail landlords littering Manhattan. Instead, the company opted last year for a premier slot on Fifth Avenue in a $300 million lease that was one of the most expensive ever at the time.

Pritzker Heir Sets Hotel-Firm Merger

Pritzker family heir John Pritzker and New York's Pomeranc family have combined their hotel businesses into a single operator of hotels ranging from West Coast boutiques to East Coast luxury hotels.

Goldman Treads Water in Real Estate

More than a decade ago, Goldman signed a 20-year lease to occupy a 26-story office building on Water Street, part of Manhattan's Financial District. But shortly after agreeing to the deal, the financial-services firm decided not to move in and was saddled with paying rent on the empty building.

Colony Capital: Time To Build Liquidity

Likening the current economy to a muddy racetrack, Thomas J. Barrack, Jr., founder and chairman of Colony Capital in his latest blog posting on the Colony Capital web site, tells investors that now is the time to watch their step as he believes inevitable opportunities are coming as other investors slip and start shedding their bad bets.

Rating Firms' Asset Game

As the housing market buckled in mid-2007, the credit-rating industry's three biggest firms gave top grades to mortgage-linked bonds that soon plummeted in value.

Offices Make Slow Recovery

Companies leased slightly more office space in the third quarter, but the rate of expansion slowed during the period, according to a report by real-estate research firm Reis Inc……

Investors Check Out of Real-Estate Stocks

For much of the past two years, real-estate stocks outperformed the broader stock market. But that trend ended during the fall as investors grew increasingly fretful that a weak global economy would sap demand for commercial space.

Cole, RED Seeing Black in Value-Add Retail

Cole Real Estate Investments formed a joint venture with RED Development to focus on future acquisition opportunities, recapitalizations and note purchases in the retail real estate sector.

U.S. Gambles With Mortgage Retreat

Three years after virtually nationalizing the U.S. mortgage market, the government has embarked on a pullback to see whether private industry picks up the slack.

Cerberus, Innkeepers in Talks to Close Deal at Lower Price

NEW YORK—Cerberus Capital Management LP, which is being sued by Innkeepers USA Trust for backing out of a deal to buy most of Innkeepers' hotels, is now in advanced talks on a lower price for those properties, according to people familiar with the matter.

Innkeepers-Cerberus Trial Delayed

NEW YORK—Innkeepers USA Trust and Cerberus Capital Management LP continued negotiating a lower-priced deal for Innkeepers' hotels, pushing back until Wednesday the start of a trial over Cerberus's cancellation of a prior agreement to buy the properties for $1.12 billion.

Trump Bids to Buy Florida's Doral Resort

Donald Trump is eyeing a return to his traditional stomping ground: U.S. real estate.

Mr. Trump's company, which all but stopped investing its own money in large property deals in recent years, has signed an agreement to pay $170 million for a deluxe golf resort near Miami, according to people familiar with the matter. It would be its biggest U.S. real-estate investment since the recession, according to people familiar with the matter.

Group Manages to Pull Off Desert Flip in Arizona

A venture led by two real-estate investment firms has shown that it actually is possible to make money on land speculation in the Phoenix area.

Associated Estates Has an Appetite for Apartments

Turmoil in Europe and fears of a double-dip recession have persuaded some commercial real-estate investors to step to the sidelines.

U.S. Economy Trapped by Its Circle of Strife

Bursts of enthusiasm aren't uncommon in bear markets. But they should be watched with caution………

International

Mukesh Ambani new house Antilia built on disputed land?

Indian billionaire, Mukesh Ambani, the world’s ninth wealthiest man, might lose his most expensive house in Mumbai. Ambani's had moved to Antilia, which is a 27 storey house last year.

Las Vegas Sands Bullish on China

Michael Leven, president of Las Vegas Sands Corp., said Saturday that despite recent concerns among investors regarding China's economic future, the company hasn't observed any negative signals in its business in the Chinese gambling enclave of Macau.

Market held back by lack of prime assets

The top end of the market has enjoyed a rebound but interest has cooled in some territories. By Daniel Thomas

European property markets have seen something of a broad-based recovery since the end of the recession in 2009.

Bad Loans Burden Banesto

MADRID—In an indication that the credit crunch is intensifying in Spain, Banco Español de Credito Tuesday said its loan book contracted for three straight quarters as it reported an 83% drop in third-quarter net profit.

European Bank Buffers Offer Little Comfort

Just how much more capital European banks need is the subject of fierce debate, especially as France and Germany weigh the latest rescue plan for Europe. And Dexia's collapse shows that some measures of financial strength can paint misleading pictures of how much additional firepower is needed. ‪

Distressed

U.S. Bank Loan Workouts Help U.S. Avoid Global CRE Funding Gap

Money available to replace maturing debt over the next three years globally is coming up short - way short, according to new research from DTZ.

CMBS Delinquencies Also Edge Higher

Separately, in September, the delinquency rate for U.S. commercial real estate loans in CMBS inched up 4 basis points to 9.56%. The CMBS market has now seen its delinquency rate fall in three of the last five months, according to Trepp LLC.

Real Money: Lenders Letting REITs Play the Accordion/ Bank of Cascades Selling Off Distressed CRE Assets

in North Miami Beach closed a $575 million unsecured revolving credit facility that replaces its existing $400 million facility.

Cerberus, Innkeepers in Talks to Close Deal at Lower Price

NEW YORK—Cerberus Capital Management LP, which is being sued by Innkeepers USA Trust for backing out of a deal to buy most of Innkeepers' hotels, is now in advanced talks on a lower price for those properties, according to people familiar with the matter

European Bank Buffers Offer Little Comfort

Just how much more capital European banks need is the subject of fierce debate, especially as France and Germany weigh the latest rescue plan for Europe. And Dexia's collapse shows that some measures of financial strength can paint misleading pictures of how much additional firepower is needed. ‪

Housing Prices Unlikely to Recover Before 2020

Bank risk professionals have turned decidedly pessimistic in their outlook in the past quarter, reversing the growing optimism they expressed in late 2010 and early 2011.

U.S. Economy Trapped by Its Circle of Strife

Bursts of enthusiasm aren't uncommon in bear markets. But they should be watched with caution………

CMBS Market Improves: Liquidated Loans Up, Payoffs Up, Loss Severities Down

The balance of CMBS conduit loans liquidated in September jumped to $1.26 billion-an increase of almost 25% from the low August reading. At $1.26 billion, the volume is very close to the 12-month rolling average for the volume of loans liquidated each month, according to Trepp LLC.

Big Dollar Bank Failures May Have Peaked

The Federal Deposit Insurance Corp. this week projected that cost of FDIC-insured institution failures for the next five years would not match all of the estimated losses for banks that failed in 2010 alone.

RE Trends

Banks May Still Face Fraud, Municipal Lawsuits After Foreclosure Agreement

U.S. banks may still face state securities-fraud claims and municipal lawsuits over unpaid mortgage fees under a settlement that is “getting closer,” the official leading talks for state attorneys general said.

Goldman Is Sued Over Office Deal

A real-estate fund run by Goldman Sachs Group Inc. has walked away from a $1.26 billion deal with Lehman Brothers Holdings Inc. to buy a portfolio of 10 office buildings in a suburb of Washington, according to a lawsuit filed Thursday.

CRE Fundraising Plummets

Companies and funds reported raising $23.18 billion from investors in the third quarter for real estate-related deals and refinancings, a 35% drop from the second quarter when $35.48 billion was raised for real estate investment.

Home Forecast Calls for Pain

Economists, builders and mortgage analysts are predicting the weakened U.S. economy will depress housing prices for years, restraining consumer spending, pushing more homeowners into foreclosure and clouding prospects for a sustained recovery.

Home Resales Up, But Remain Weak

Sales of previously occupied homes in the U.S. rose in August to the highest level in five months but remained weak overall as the sputtering housing market fails to propel the economy.

Existing-home sales increased 7.7% from a month earlier to a seasonally adjusted annual rate of 5.03 million, the National Association of Realtors said Wednesday.

Addressing Housing Troubles Will Speed a Slow Economy

There's not much the U.S. can do to prod Europe to clean up the sovereign debt and banking mess that threatens the global economy.

New Homes Again Log Slow Sales

New-home sales fell for the fourth-straight month in August to the lowest level in a half year as the bursting of the housing bubble continued to weigh on the U.S. economic recovery.

Sales fell 2.3% from a month earlier to a seasonally adjusted annual rate of 295,000, the Commerce Department said Monday. The pace was the weakest in six months, and the month was the seventh-worst on records dating to 1963.

Housing Prices Unlikely to Recover Before 2020

Bank risk professionals have turned decidedly pessimistic in their outlook in the past quarter, reversing the growing optimism they expressed in late 2010 and early 2011.

Effective Multifamily Rent Growth Slows on Way to Historic Highs

Effective apartment rent growth (rent net of concessions) slowed somewhat during August, to a rate of 0.34%, according to Axiometrics Inc., a provider of data and analysis on the apartment market.

Dad's Legacy to Be Sold

Kal Zeff spent several decades building a Denver apartment empire. Now, more than six years after his death, his children are cashing out.

Battle Royal in Health-Care World

HCP Inc. recently sent a $102 million check to Ventas Inc. in what appeared to end a nasty four-year takeover and legal battle between the country's two largest public owners of medical office buildings, senior-living and other health-care-related real estate.

Economic Concerns Are Taking a Toll

In the latest sign that the commercial real-estate market is cooling, Green Street Advisors' Commercial Property Price Index was flat in September.

Host Leads Off in Lodging Earnings

Host Hotels & Resorts Inc. will kick off earnings season Wednesday for lodging real-estate investment trusts at a time that investors are checking out of these stocks en masse on recessionary fears.

Slim Pickings Are Latest Headache for Home Sales

The housing market, which has struggled with an oversupply of homes for years, is facing a new problem: a lack of attractive inventory.

C(RE) BLOGS

Scott Miller's Welcome to the Jungle Blog

Welcome to the jungle. The environment we are in these days feels like a jungle and you never know what is around the corner ready to hunt you down, kill you and then eat you. The housing market seems to be in free fall with no end in sight well at least until 2015 according to “The Wall Street Journal” Article

Home Forecast Calls for Pain on September 21, 2011. Since its peak in 2005 housing prices nationally have fallen 31.6% and fall another 2.5% this year and then start to rise 1.1% through 2015 according to survey of economists.

Scott Miller's Welcome to the Jungle Blog II

First the blame for the mess we are in is not only the banks fault. Politicians would love for you to blame the BIG BAD BANKS for all that lending of loans to people that could not afford their homes. Truth is most of those banks were filling a need. Now that does not excuse them from blame, but includes them into it with others.

"Internet Killed The Radio Store" - Mall Vacancies Hit All Time Record

Two years ago, when discussing the long-term prospects for Bill Ackman's aggressive pursuit of General Growth, we noted that while the short-term post-reorg oversold bounce is warranted, the secular shift away from big-box stores and disappearance of retailers means that many more bankruptcies are sure to follow, and will be punctuated by all time highs in mall vacancies courtesy of an ever-growing shift to internet shopping.

Lawler: For Seriously-Troubled Loans: A Call to ARMs

Many folks have for some strange reason argued that safe and effective loan modifications for troubled borrowers should get these borrowers into 30-year fixed-rate mortgages – even though short-term interest rates are close to zero, and expected to stay close to zero “until at least 2013.”

The Exasperation of the Democratic Billionaire

'It's as if he doesn't like people," says real-estate mogul and New York Daily News owner Mortimer Zuckerman of the president of the United States. Barack Obama doesn't seem to care for individuals, elaborates Mr. Zuckerman, though the president enjoys addressing millions of them on television.

CRE Podcasts

CRE Distressed Assets Association Announces New CREDAA Central