Archive for 'Commercial Real Estate'

Foreclosure Help Comes by Way of Nonprofits

Foreclosure Help Comes by Way of Nonprofits

Foreclosure Help Comes by Way of Nonprofits-Image via Wikipedia

Nonprofit agency brings a wide array of tools and experience in preventing mortgage default

As homeowners continue struggling with foreclosures and mortgage defaults, Money Management International (MMI), the nation’s largest nonprofit, full-service credit counseling agency, is reminding consumers of the many tools and financial education resources available to help fight back against foreclosure and keep their piece of the American Dream.

To view the multimedia assets associated with this release, please click: http://multivu.prnewswire.com/mnr/mmi/47068/

As more American families struggle with mortgage delinquency, there are calls for more scrutiny of banks and lenders, and for the government to do something about it. Some predict improvement; others say it could get worse. Whatever the case, more and more homeowners are struggling to make ends meet and find a way to hold on to their most valuable asset – their home.

“Our nation’s foreclosure crisis continues to be one of the most damaging aspects of the current down economy,” said Kim McGrigg, community manager for MMI. “Losing a home is more than a financial issue; it is one of the most scary and emotionally draining experiences a family can face. The far-reaching impact can be felt well into the future. At MMI, we’re using our years of experience to help families fight back against foreclosure.”

The certified counselors at MMI are approved by the U.S. Department of Housing and Urban Development (HUD) to help homeowners explore and find the right option for curing their delinquent loan and develop an action plan for future financial success.

MMI is also approved to assist struggling homeowners in applying for the Emergency Homeowners’ Loan Program (EHLP). The EHLP was implemented by HUD to provide financial assistance for homeowners who have experienced a drop in income of at least 15 percent due to economic hardships caused by unemployment, underemployment, or a medical condition.

Eligible applicants may receive a zero interest forgivable loan that pays past due mortgage payments, including missed payments and late charges, up to a maximum of $50,000.  Acting fast is vital; the deadline for submission is July 22, 2011.

Call MMI at 877-329-2502 for information and assistance with the qualification process, or go online at Get-EHLP.org.

About Money Management International

Money Management International (MMI) is a nonprofit, full-service credit-counseling agency, providing confidential financial guidance, financial education, counseling and debt management assistance to consumers since 1958. MMI helps consumers trim their expenses, develop a spending plan and repay debts. Counseling is available by appointment in branch offices and 24/7 by telephone and Internet. Services are available in English or Spanish. To learn more, call 800.432.7310 or visit www.MoneyManagement.org.

Let’s keep in touch!

Visit us on the Web at MoneyManagement.org

Contact:
Tanisha Warner
Media Relations
713.394.3202
Tanisha.Warner@MoneyManagement.org

http://www.moneymanagement.org

Mortgage Lenders Urged to Revise High Down Payment Requirements

Mortgage Lenders Urged to Revise High Down Payment Requirements-Image by haglundc via Flickr

Stability in the housing market will lead to a quicker and greater economic recovery, according to the National Association of Realtors®. In a letter to Shaun Donovan, secretary of Housing and Urban Development; Timothy Geithner, secretary of the Treasury; and Gene Sperling, director of the National Economic Council, NAR offered its recommendations for helping stabilize and revitalize the housing industry and economy.

“As the nation’s leading advocate for homeownership and housing issues, NAR understands how integral homeownership is to the nation’s economy. A strong housing market recovery is essential to the nation’s economic strength,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “The housing market is in a fragile recovery, and our goal is to ensure that regulatory or legislative changes help lead the way out of today’s economic struggles and not jeopardize the recovery.”

In its letter, NAR cautioned that recent proposals could make a near-term housing recovery almost impossible, not to mention making it harder for millions of hard-working families to own their own homes. Phipps said more regulations and legislation that tighten access to credit and affordable safe mortgages are not the solution to righting the housing market and economy.

“We want to make sure that any legislative and regulatory changes don’t jeopardize a housing and economic recovery, so that anyone who is able and willing to assume the responsibilities of owning a home has the opportunity to pursue that dream,” said Phipps.

NAR urged support for policies that ensure qualified borrowers can obtain safe and sound mortgage financing. NAR called on regulators to revise the unnecessarily high down payment requirements of the Qualified Residential Mortgage (QRM) exemption from risk retention requirements under the Dodd-Frank Act. A broad QRM definition will encourage sound lending and reduce future defaults without delaying or denying homeownership to millions of creditworthy borrowers.

NAR also asked regulators to reduce the overcorrection in underwriting standards for mortgages from the Federal Housing Administration and government-sponsored enterprises because the now-too-stringent standards are preventing qualified borrowers from getting loans.

“Mortgage availability remains a concern, and borrowers continue to find it increasingly difficult to find affordable mortgage options. Requiring a higher down payment does little to reduce default risk, and only strips home buyers of their savings and increases the number of borrowers who are unable to purchase a home,” said Phipps. “We cannot have a viable housing market and economic recovery until creditworthy borrowers are able to obtain mortgage financing.”

NAR also recommends extending the FHA and GSE mortgage loan limits, which are critical to providing liquidity in today’s housing market. Reverting to the statutory limits on October 1 would reduce limits in 669 counties and 42 states and territories the average decline in loan limits will be more than $68,000.

NAR also firmly believes that National Flood Insurance Program is essential to a properly functioning real estate market, and urges Congress to pass a long-term reauthorization of the program before it is set to expire on September 30 for the tenth time in two years. The program ensures access to affordable flood insurance for millions of homeowners.

“We look forward to working with Congress and the administration to not only preserve, but also strengthen the American dream for future generations,” said Phipps.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

 

“Progressive operators like A-1 and Stor-All are embracing this trend, and are looking for ways to create competitive advantages through both the use of technology in general and partnerships with internet based companies like StorageTreasures.”

StorageTreasures.com, America’s fastest growing website for self storage auction hunters, has reached an agreement with three major self storage companies, each of which will supply both capital investment and advisory services. The agreement is a clear sign of the direction of the storage auction sector and the key role which technology will play moving forward. The capital investments bring together three prominent industry players, including A-1 Storage, Stor-All Storage and RESCO Self Storage. A-1 Storage, a California based chain, is the largest independently owned storage company in the US. Stor-All Storage boasts significant storage holdings in five states, and is one of the oldest companies in the US. RESCO Self Storage is a California based real estate investment group with deep industry experience, which includes the development and construction of the Shurgard storage brand, which included an eventual sale and partnership with Public Storage, the nation’s largest storage operator.

“It’s no secret that technology is playing an ever-growing role in how we operate and market our facilities, and now that trend is changing the industry’s approach to storage auctions.” StorageTreasures President and Founder Lance Watkins continued, “Progressive operators like A-1 and Stor-All are embracing this trend, and are looking for ways to create competitive advantages through both the use of technology in general and partnerships with internet based companies like StorageTreasures.” Watkins added, “StorageTreasures’ philosophy is quite simple. We are giving the storage industry the opportunity to make their public auctions truly public with the largest group of auction buyers on the internet.”

The investment agreement is both financial and strategic in nature, as executive management from each company will supply advisory services and Board membership to StorageTreasures. Watkins commented on their addition, “Having veterans on board like Brian Caster, Jeff Anderson and Ron Soderling gives the company access to some of the best minds in the industry. In addition, StorageTreasures is partnered with the Self Storage Legal Network and American Auctioneers. Carlos Caslow, Scott Zucker and Dan Dotson are top attorneys and auctioneers in the storage industry. This will be a tremendous competitive advantage as we look to build the go-to storage auction resource on the internet.”

StorageTreasures.com, is a free self storage unit auction locator and self storage finder covering the US and Canada. StorageTreasures.com offers compressive storage auction schedules and site specific guidelines for auction hunters and facility owners throughout the US and Canada. StorageTreasures.com is partnered with industry leaders to develop best practices that ensure storage auctions are conducted within the law, and that facility owners, tenants, buyers and auctioneers are protected. More information about StorageTreasures.com can be found at http://www.StorageTreasures.com or by calling 1.800.213.4183.

 

Mortgage Lenders to Get More Aggresive With Foreclosures

Mortgage Lenders to Get More Aggresive With Foreclosures-Image by niallkennedy via Flickr

New Study Predicting Continued Economic Troubles Means More Aggressive Approach to Foreclosures by Banks

Recent news of a study claiming the current U.S. housing collapse is worse than during the Great Depression and will continue to fall for the rest of the year means greater emphasis by banks on foreclosures and increased need for homeowners facing foreclosure to protect themselves when dealing with the banks, according to Vito Torchia, Jr. managing attorney of Brookstone Law.

“Banks are more likely now to place a premium on reducing inventory and liabilities so will be more aggressive about foreclosures and fewer consumers will be able to keep their homes,” said Vito Torchia, Jr. “It is already nearly impossible for a homeowner without expert legal help to stop foreclosures, so Banks being even more difficult will be a nightmare for consumers.”

To deal with the needs of homeowners facing foreclosure and help them deal with an institutional bureaucracy that is biased against them, Brookstone Law has created the Emergency Extension Department (EED), a unique service not offered by any other firm that gives homeowners facing foreclosure a fighting chance to keep their homes. The service is offered with no advance fees and consumers pay only if the sale can be stopped. Brookstone Law’s EED attorneys and specialists are experienced in working directly with banks and extensively trained to help homeowners.

According to the study by senior U.S. economist for Capital Economics Paul Dales home prices will fall another 3 percent over the rest of 2011 before potentially hitting bottom and the market likely will continue to fall for the rest of the year before going stagnant. The report indicated that since the collapse began from the pricing peak of 2006, prices have fallen 33 percent which is more than the 31 percent dive recorded between the 1920s and 1930s.

“This report clearly shows the U.S. economy is having trouble emerging from what is the worst recession since the Great Depression and the housing crash has been larger and faster than the one during the Great Depression,” said Vito Torchia, Jr. “It is very likely the Banks are going to do everything they can at the expense of consumers to protect their margins.”

Media coverage of the study also noted that with the national jobless rate rising, home prices in a dozen metropolitan regions hitting the lowest level since the collapse began and struggling to return even to roughly 2002 levels, it is likely there will be a double-dip depression in home prices and the U.S. housing market has not yet hit bottom.

“Dealing with a bank about the loss of a home is a dehumanizing and legally intricate situation and a positive attitude and patience is extremely difficult to maintain,” said Vito Torchia, Jr. “As experts in helping homeowners stop foreclosures, we share daily in the challenges they face and deal with banks on their behalf.”

ABOUT BROOKSTONE LAW, PC
Headquartered in Newport Beach, Calif., and with offices in Los Angeles, Calif., and Ft. Lauderdale, Fla., Brookstone Law, PC is a law firm comprised of attorneys with experience and success in business, corporate and personal finance, employment, entertainment and media, art and museum, intellectual property and real estate law. The firm has a network of more than 40 affiliate attorneys nationwide and employs highly trained specialists, paralegals, paraprofessionals and administrative staff dedicated to serving clients. For information, call (800) 946-8655 or visit Brookstone Law.com (http://www.brookstonelaw.com).

 

Realm Group, LLC of Newport Beach, CA has paid $13 million for Anaheim Hills Office Plaza, a 75,000-sf office building located at 160 North Riverview Drive in Anaheim, CA. Developed in 2008, the building is visibly situated along the 91 FWY and surrounded by the amenity-rich master planned communities of Anaheim Hills and Yorba Linda.

Anaheim Hills Office Plaza is 100% occupied with local and national tenants such as Raytheon, Premier Business Centers, Century 21 and Gateway One Lending and Finance.

Darrin Olson, principal of Realm Group, commented, “Although developed as a high-quality office property in the desirable Anaheim Hills submarket, the building suffered from the effects of the recession when it was delivered for occupancy and was subsequently foreclosed on by the lender. The acquisition was a compelling opportunity to acquire a new, fully occupied building at a substantial discount to replacement cost. The property has a strong tenant roster that will carry the asset through the market downturn, later allowing the company to capitalize on improving economics once the market fundamentals improve.”

The sale and leasing brokers are Chris Migliori and Kara Guarienti of Daum Commercial. Tom Sherlock and Eric Snyder of Talonvest represented the buyer in securing financing for the purchase.

Realm Group (http://wwww.realmre.com), located in Newport Beach, is a joint venture between Realm Real Estate and The Bascom Group to acquire value-added office properties and develop office and multi-family buildings throughout Southern California in both urban and suburban submarkets.

Bascom Group (http://www.bascomgroup.com) is a private equity firm headquartered in Irvine, California, specializing in value-added and distressed multifamily real estate investments. Bascom often sources properties in foreclosure, bankruptcy, and receivership and repositions them by adding extensive capital improvements and reducing expenses by realizing operational efficiencies through the implementation of institutional-quality property management. Since 1996, Bascom has completed transactions totaling over $6.3 billion comprising 55,000 units and over 200 properties.

Contact: Darrin Olson
REALM GROUP, LLC
4590 MacArthur Blvd., Suite 500
Newport Beach, CA 92660
ofc: 949.975.1122
dolson@realmre.com
http://www.realmre.com

http://www.realmre.com

Foreclosures Continue With More Commercial Property Owners as Victims

Foreclosures Continue With More Commercial Property Owners as Victims-Image via Wikipedia

Builders, Commercial Property Owners Often Overlooked As Bank Fraud Victims.

“Throughout the United States, reputable builders and commercial property owners have often been overlooked as victims of bank fraud and wrongful foreclosure in the Nation’s ongoing bank crises,” says 35-year trial lawyer and former prosecutor Michael S. Riley of Mitchell J. Stein & Associates LLP.

Mr. Riley, a Senior Partner of Mitchell J. Stein & Associates LLP and former governmental prosecutor for more than a decade, commented further that “the wave of significant and far reaching disclosures of horrible bank schemes against the core of our economy – middle America’s builders and commercial realty owners – are now going to begin hitting the national stage and its judicial system.”

Mitchell J. Stein & Associates LLP sees the problem as a logical one:

“In 2009, we predicted that fraudulent foreclosure practices would be hoisted upon home owners nationwide and the Firm filed suit against Bank of America in behalf of aggrieved Californians on March 12, 2009. This lawsuit (Ronald v. Bank of America) was the first of its kind to be filed nationwide and has since been the shepherd for the Firm’s several other lawsuits against the likes of JP Morgan Chase, Ally Bank (formerly GMAC), Wells Fargo, Onewest (formerly Indymac), U.S. Bank and Citibank. These lawsuits have become commonly known as “Mass Joinders”. Just a few months ago, in April 2011, the Department of Homeland Security, the FDIC, the Office of the Comptroller and other State and Federal Agencies have agreed that at least 14 bank servicers have committed wrongful and “unsafe” foreclosure practices since 2009, i.e., just as the firm predicted in the first quarter of 2009 as evidenced by the filing of Ronald v. Bank of America.

Mitchell J. Stein, founder of Mitchell J. Stein & Associates LLP, continued: “The genuine financial strength of our Nation – hard working middle American builders and commercial real estate owners – have been able to weather the bank storm during the past two years.” But the banks nationwide have “taken advantage of that strength and good faith by making increasingly unreasonable and unlawful credit and collateral demands on American real estate businesses.”

The Firm sees the status quo at a “tipping point,” where “our Country’s builders and developers can no longer accept the banks’ unreasonable demands and business maneuvers based upon chicanery,” said Mr. Stein.
Messrs. Stein and Riley agreed: “We are now seeing an avalanche of bank interactions with seasoned commercial real estate owners, which are downright illegal and disgusting. Banks throughout the country are creating fictitious ‘liquidity crises’ based upon valuation scenarios that exist only in the minds of “kid bankers with calculators and instructions to squeeze.”
The Firm commented that a continuing game played by bank servicers is “purported failure to pay property taxes” that are not owed, and “credit calls” based upon the bank’s unilaterally and non-transparently operated “appraisal desks.”
“No businessman can repeatedly answer surprise bank credit calls that exist on a monthly basis, with virtual automation in their frequency and hostility,” said Mr. Stein. “The banks are appearing in recent months to target those real estate businesses that have the best histories and the largest equity values within in their portfolios. That is what makes the banks begin to act as predatory lenders instead of good and honorable bankers. It is a shame. However, the businesses today are able to fight back.”
Ironically, the Firm sees the arsenal available to the real estate businesses as “the laws that have developed nationally since 2009 – and as a partial result of the Firm’s efforts — as a result of the residential bank foreclosure crises.” These laws are “now giving the real estate businesses a very good chance of halting the banks in their tracks,” according to 25-year bank and finance lawyer Mitchell J. Stein.
Additionally, Mitchell J. Stein & Associates LLP sees alternative sources of financing that the Firm exclusively works with as the “trump card” that may keep the system in check. “Nobody would expect a legitimate and longstanding real estate company to be unable to ultimately attract legitimate and reasonable financing,” given that “the truth about the banks is now, already, well known.”

ABOUT MITCHELL J. STEIN & ASSOCIATES LLP

Based in Agoura Hills, CA, with offices in Walnut Creek, CA, Boca Raton, FL, New York, NY and Chicago, IL, Mitchell J. Stein & Associates LLP is a national law firm with a combined experience among its members and associates of more than 150 years of trial experience in the finance and banking fields, its members having historical experience in representing or being principles in more than 350 banks and financial institutions. The Firm flipped its efforts years ago, and no longer takes on bank business. The Firm concentrates its efforts on representing commercial and residential property owners across the Country during this unparalleled time of unlawful and – according to the United States Government — “unsafe” banking practices nationwide. The Firm can be reached at its website http://www.dobielaw.org, or toll free at (877) 475-2448.
The Moniker given Mr. Stein of “The Doberman” and the associated logos used by the Firm are subject to copyright and legal protection. All rights reserved, © 2011.

Contact:
Toby Butterworth
(877) 475-2448 ext: 802

Rosie Soto
(877) 475-2448 ext: 803

Loan Modifications Get Streamlined With New App

Loan Modifications Get Streamlined With New App-Image by Getty Images via @daylife

Falcon Credit Management has developed the first HAMP, MHA, iPhone, iPad, iPod Loan Modification Application that has been accepted into the iTunes store.

In an effort to provide value and convenience to homeowners going through the Loan Modification process and while adding to its list of industry firsts, Falcon Credit Management has developed the first HAMP, MHA, iPhone, iPad, iPod Loan Modification Application accepted into the iTunes store. This loan modification app complements Falcon Credit Management’s Loan Modification service and industry-leading do-it-yourself software FalconDox. Free of charge, homeowners are armed with clear and concise questions and answers, saving most individuals the confusion, stress and possible denial associated with the typical phone calls to a bank representative. Get Modified is a free App from Falcon Credit Management that provides a homeowner all of the eligibility requirements, at one time, that a lender needs to evaluate a loan modification or foreclosure mediation while providing the post-modification target payment.

The loan modification app features six informational videos, eligibility questions, answers, and a life coaching questionnaire designed to evaluate common emotional symptoms of financial hardship. Falcon Credit Management also offers an extensive library of more than 80 bilingual videos that are designed to provide answers on all areas of credit and Debt Management free of charge.

Most banks’ customer service reps do little for loan modification assistance, and unfortunately, many times, are actually a liability in understanding what is needed for acceptance into the HAMP or MHA government programs. “It’s unfortunately very common,” said Damian Falcone CSP of Falcon Credit Management. “Clients come in to our office needing help modifying their mortgages, but have already been confused and deceived into providing inaccurate information that ejects them from the programs. With that in mind we have developed a free iPhone App that will allow homeowners to see the exact eligibility questions and answers for achieving a loan modification – along with their future modification payment.”

http://www.falconcreditmanagement.com

Casino Self Storage in Moorpark, California

Is Listed for $11.5 Million


Bancap Self Storage Group, Inc., the “#1 Self Storage Broker in California,” recently announced that it has been selected as the exclusive broker for a lender owned self storage property in Ventura County, California.   The firm will handle the marketing and sales activities for the Casino Self Storage property located in Moorpark, California.  The property has been listed for sale with an asking price of $11,500,000.

Casino Self Storage is an attractive, well designed and nicely constructed “Class A” self storage project. The project shows very well and enjoys good corner visibility and easy access on State Highway 118 / West Los Angeles Avenue with an average daily traffic count of approximately 32,500 vehicles per day.

The two-story facility offers over 85,000 net square feet of self storage space demised into 822 units, including 91 climate controlled spaces. The buildings are concrete block, stucco and metal construction with metal interior partitions, roofs and doors.

“There have been very few properties of this quality available for sale in Southern California,” said Dean Keller, President of Bancap Self Storage Group. “This is a rare opportunity to purchase a first class facility in a very desirable market, with tremendous upside potential.”

The city of Moorpark is nestled in a flourishing valley near the larger cities of Simi Valley and Thousand Oaks. The area boasts spacious mountain views, a perpetual vacation climate, historical western charm, beautiful residential neighborhoods, outstanding schools, an exceptional college, fruit stands, cultural arts, fantastic shopping and a variety of restaurants. Moorpark is the perfect blend of country and city living.  It is a family-oriented community with abundant open space, hiking & equestrian trails, world famous golf courses and incredible sunsets.

The property was recently obtained through foreclosure and the foreclosing lender/owner is represented by LNR Partners, LLC as the special servicing agent for the original loan.  LNR Partners has also engaged Platinum Storage Group to provide professional property management services for the property.

Bancap Self Storage Group is the top selling broker of self storage facilities in California with over $900 million in completed sales.  The company has specialized exclusively in self storage properties for over 25 years.  The firm has recently brokered several lender-owned “REO” properties, as well as several first-class high occupancy properties that were very profitable.  The firm has also facilitated numerous self storage portfolio sales in the state.

For more information contact Dean Keller, President of Bancap Self Storage Group at (949) 888-5355 or visit the company web site at www.bancapselfstorage.com

Commercial Real Estate Tenant Demand Continues to Grow

Commercial Real Estate Tenant Demand Continues to Grow-Image via Wikipedia

Average Overall Cap Rates Decrease in 27 of the Survey’s 31 Markets

Despite a skittish U.S. economy, most commercial real estate investors remain upbeat and cautiously optimistic about the industry’s future, with very few being dissuaded from eagerly acquiring assets and seeking opportunities across all commercial real estate sectors. In fact, many investors are aggressively pursuing deals as they continue to see signs that the industry’s overall fundamentals are stabilizing and even improving in certain sectors and regions, according to the second quarter 2011 findings of the PwC Real Estate Investor Survey, released today.

According to the report, rental rates remain below peak levels for most property types and regions, although there is a sense among surveyed investors that they have stabilized. This quarter, the average market rent change rate assumption reported by Survey investors increased in 25 of the report’s 31 markets, further demonstrating investors’ sense that an ongoing, albeit slow, recovery is occurring.

“The trajectory of the commercial real estate industry’s recovery is largely dependent on the health of the U.S. economy. The ability of the economy to add jobs instills optimism in both businesses and consumers,” said Mitch Roschelle, partner, U.S. real estate advisory practice leader, PwC. “Despite recent disappointing labor reports and falling home prices, commercial real estate investors continue to look to the positive aspects of the industry as they remain cautiously optimistic that the recovery path will continue. The significant lack of new supply over the past several years serves as the catalyst of the ongoing recovery. As tenant demand continues to grow, positive absorption has begun to drive rents up. The prospects of rent growth have driven much of the aggressive bidding by investors in certain top-performing markets.”

“In addition to improving fundamentals, the volatility of the stock market, weakening currencies, and the low fixed income coupons have fueled a rotation into hard assets such as precious metals, commodities and commercial real estate,” Roschelle added. Most institutional investors, particularly pension funds, are targeting top-performing assets in strong markets with some surveyed participants indicating that they’re concentrating on opportunistic plays. Moreover, there are a growing number of distressed assets that are trading as bank regulators put more pressure on lenders to deal with nonperforming loans – yet another sign that the U.S. commercial real estate industry is on the mend.

Office Sector Leads Quarterly Overall Cap Rate Decline

The average overall capitalization (cap) rate, the initial return anticipated on an acquisition and a reflection of an investment’s anticipated ownership risk, decreased in 27 of the 31 surveyed markets, increased in three, and held steady in one during the second quarter 2011. The steepest declines occurred for the national central business district (CBD) and national suburban office markets, as well as the Dallas office market, where the average declined 51 basis points.

While the apartment sector has led the industry’s recovery and has experienced continued cap rate compression over the past 18 months, the office sector was slow to rebound due to a sluggish labor market. However, as employment has improved and business profits have risen, the sector has gained traction and, as a result, more investors are focused on acquiring office buildings, causing overall cap rates to decline – especially for core assets in top markets. Over the next six months, the Survey found that participants expect overall cap rates to either hold steady or decline due to strong buyer interest, low interest rates, and a positive economic outlook.

According to Survey findings, the Manhattan office market’s average overall cap rate has fallen below 6.00 percent for the first time since 2008 and represents the lowest average of the 18 individual office markets in the Survey, reflecting investors’ confidence in Manhattan’s ability to lead the recovery and rebound faster and stronger than most other metro areas. An optimistic outlook for Manhattan is also reflected when reviewing the Survey’s average market rent change rate assumptions, or what investors foresee rental rates increasing by over the next year. When comparing this key indicator for the Manhattan office market to the Survey’s national CBD office market, it is clear that investors in Manhattan were quite aggressive with their rent expectations during the expansion, but became very pessimistic during the recession.

Investors are back on track with pre-recession growth expectations for Manhattan, as well as the national CBD market. As shown in the accompanying chart, average market rent change rate assumptions in the Manhattan office market have steadily climbed back since the lowest point during the recession in third quarter 2009, when it was hovering around -6.50 percent, up to 3.00 percent in the second quarter 2011. The national CBD office market, which was at -2.00 percent in fourth quarter 2009, is now at 1.39 percent. These trends support the notion that investor sentiment is improving in CBD cores, especially top-performing markets.

“Surveyed investors are treading carefully as they realize that troubles could arise if interest rates rapidly increase at the same time and a large pool of commercial maturities peaks over the next two years,” stated Susan Smith, editor-in-chief of PwC’s quarterly survey. “If those factors play out, overall cap rates would likely rise and negatively impact property values. Luckily, though, most of the participants have told us that they maintain an optimistic outlook for now, even if cautiously so.”

Anticipated Performance for Each Sector

The PwC Real Estate Barometer that’s included within the Survey tracks the anticipated performances of the four main property sectors (office, retail, industrial, and multifamily) from 2011 to 2014. According to the barometer, 62.4 percent of the U.S. office stock will be in recovery mode by year-end 2011; in 2012, this percentage will decline a bit as a greater portion of stock enters the expansion phase. For the U.S. retail sector, the majority will be in recession through year-end 2012. Although the amount of stock in recession will decline greatly by year-end 2013, a significant recovery is not expected until year-end 2014.

The U.S. industrial market has been helped out by improvements in manufacturing, capital goods shipments, and business and consumer spending. Overall vacancy is declining in the sector and a recovery is underway for many cities. As a result, the portion of U.S. industrial stock in recovery is expected to surge over the next 15 months.

The barometer shows that the best-performing sector in the industry is the U.S. multifamily market, which is dominated by the recovery phase of the real estate cycle and is segueing more and more into the expansion phase annually through 2014. In fact, not one of the 81 multifamily metro areas included in the barometer will be in recession over the next four years.

Information about subscribing to the PwC Real Estate Investor Survey can be found at www.pwc.com/us/realestatesurvey. Members of the media can obtain an electronic copy of the full report by contacting Scott Cianciulli at (212) 986-6667 or cianciulli@braincomm.com.

About the PwC Real Estate Investor Survey™

The PwC Real Estate Investor Survey, now in its 24th year of publication, is one of the industry’s longest continuously produced quarterly surveys. The current report provides overviews of 31 separate markets, including ten national markets — regional mall, power center, strip shopping center, CBD office, suburban office, flex/R&D, warehouse, apartment, net lease, and medical office buildings. The report also includes a review of 18 major U.S. office markets including Atlanta, Boston, Charlotte, Chicago, Dallas, Denver, Houston, Los Angeles, Manhattan, Northern Virginia, Pacific Northwest, Philadelphia, Phoenix, San Diego, San Francisco, Southeast Florida, Suburban Maryland, and Washington, DC. In addition, the report covers three regional apartment markets – – Mid-Atlantic, Pacific, and Southeast.

The second quarter 2011 report also features up-to-date information relating to forecast periods, structural vacancy replacement reserves, forecast values, tenant improvement allowances, and vacancy assumptions. In addition, each issue of the Survey contains over ten tables of market data focusing on value expectations, tenant improvement allowances, forecast periods, structural vacancy, and growth rates. Also in this issue is the semiannual National Development Land Market.

About the PwC Network

PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See www.pwc.com for more information.

© 2011 PwC. All rights reserved. “PwC” and “PwC US” refer to PricewaterhouseCoopers LLP, a Delaware limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

CONTACT: Scott Cianciulli, cianciulli@braincomm.com, or Ray Yeung, yeung@braincomm.com, both of Brainerd Communicators, +1-212-986-6667; Laura Schooler, PwC US, +1-646-471-3229, laura.schooler@us.pwc.com

Web Site: http://www.pwcglobal.com

Real Estate Investing the Vanilla Ice Way

Although he is well known for his musical talent and became an international superstar with the hit song, “Ice, Ice, Baby,” Vanilla Ice has also been investing in real estate for more than 16 years. He has launched a new website that aims to help others succeed at real estate investing using strategies and techniques he and his team have gathered over a lifetime of experience.


 

Vanilla Ice Real Estate

Vanilla Ice, former rapper turned real estate investor and star of the HGTV show, The Vanilla Ice Project, has launched his own real estate investing website, VanillaIceRealEstate.com

Quote startI bought…a home next to Michael J. Fox in LA, a palace in Miami & mountain cabin in Utah. Then, a few years later, I took a break from touring, saw that my properties had cobwebs, so I sold them, and to my surprise, I made a huge profit!Quote end

Vanilla Ice, former rapper turned real estate investor and star of the HGTV show, The Vanilla Ice Project, has launched his own real estate investing website.

“I’ve been flooded with requests from viewers of my show to teach them how to succeed at real estate, “ remarked Ice, “so for my fans, I give you, VanillaIceRealEstate.com.” This new website aims to help others succeed at real estate investing using strategies and techniques Ice and his team have gathered over a lifetime of experience.

Although he is well known for his musical talent and became an international superstar with the hit song, “ice, ice, baby,” Vanilla Ice (aka Rob) has also been investing in real estate for more than 16 years.

“When ‘Ice, Ice Baby’ was selling a million records a day, I bought several properties; a home next to Michael J. Fox in LA, a palace in Miami, and mountain cabin in Utah,” reminisces Ice, “then, a few years later, I took a break from touring, saw that my properties had cobwebs, so I sold them, and to my surprise, I made a huge profit!”

From that point on, Vanilla devoted time and energy to mastering real estate. “I’ve been through up and down markets, I’ve seen it all, and right now, I’m doing better than ever,” notes Ice. His expertise is highlighted in front of the camera weekly on his HGTV show, The Vanilla Ice Project.

On the show, viewers watch him and his team buy, renovate and resell properties for a profit. From the show’s rave reviews and recent awards, it is clear that he is more than just a celebrity; he knows how to succeed with real estate investing.

When asked how he feels about the real estate market these days, Ice reports, “There’s never been a better time to invest in real estate than right now.”

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