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Mogul Minute 07/19/2016
July 19 | 2016

Mogul Minute

Here at RealtyMogul.com, we keep our finger on the pulse of all things real estate, from finance to technology and everything in between. We make a point of sharing interesting articles and think pieces among RealtyMogul.com staff to help our team stay abreast of the market, and ahead of the curve.

So we thought, why not share some of these insights with you, our partners?

Got A Minute? Here’s some recommended reading with key points from the content:

Best and Worse Apartment Markets in 2016 (National Real Estate Investor)

  • The top markets for annual rent growth as the second quarter led by Sacramento, Portland, and Seattle:

  • Per Jay Denton, VP of data at Axiometrics, “The San Francisco Bay Area, Denver and Seattle have easily been the best performing major markets this cycle. Of that group, Seattle is the only one that remains in the upper-tier of rent growth today.”
  • At this point in the cycle, many markets are seeing a large influx of new supply:

  • In particular, New York and San Francisco are seeing slowdowns in market rent growth while Oklahoma City, Hartford (CN), and Houston are seeing negative rent growth.

Calpers’ New CEO Frost Sees Potential Boost from Private Equity (Bloomberg)

  • The new CEO of the largest US pension fund is planning on taking a look at increasing their allocation for real estate and private equity. “When you’re looking at the low rate of return environment in the public markets, I don’t think you can ignore private equity. This could be a low-rate environment for a period of time and we have to factor that in when we do our allocation work.”
  • Frost is coming over after running the state of Washington retirement system. Their fund had a higher allocation of real estate and private equity and their fund outperformed Calpers in 2015, 4.9% to 2.4%. Washington’s annualized gains for the three years through June 2015 were 11.3 percent, compared with 10.9 percent for Calpers.

CBRE Report Cites 25 Straight Quarters of Declines for Industrial Real Estate Availability (Logistics Management)

  • In addition to the stat in the title the availability rate also fell to 8.8% in the first quarter – its lowest reading since Q2 of 2001.
  • According to CBRE Chief Economist for the Americas Jeffrey Havsy, “The underlying fundamentals in the economy remain strong. Job growth was robust in June. We had a strong retail sales number today for June. The headlines are much worse than the data. The economy is in good shape.”

$300-Million Redondo Beach Waterfront Project Moves Ahead (Urbanize LA)

  • CenterCal Properties has gotten the go ahead from the City to move forward on a proposed $300M development on the land surrounding the Redondo Beach Pier. The new development will be a waterfront village with more than 500,000 SF of new retail, creative office space, a public market, and a new specialty theater.
  • Urbanize LA has also included a pretty thorough video of the new project here: https://vimeo.com/144565832

After East New York Zoning Change, City Pushes Nearby Job Growth (WSJ)

  • Mayor De Blasio is planning to spend $17M to improve the old East Brooklyn industrial zone that was once known as “Little Pittsburgh.”

  • The plan will improve the infrastructure and also incentive development by promoting existing grants and low interest rate development loans. The plan will also rezone some of the area for new retail and apartments – with many of them being affordable. “The plan aims to attract 250 more companies, generate 3,900 jobs and add 2.7 million square feet of industrial space over the next 15 years.”

 

Tim Ednoff Headshot
Written by , Associate - Commercial Equity at RealtyMogul.com

Tim evaluates investment opportunities as well as performs due diligence and writes content for various equity and debt transactions. Outside of the office, Tim is an avid sneaker collector, a passionate health and fitness advocate, and a dedicated podcast enthusiast.

 
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