Inside Real Estate - March 29th, 2017

Inside Real Estate (Mar 29th, 2017)

666 5th Avenue / Sunbelt growth / London Airbnb / Kevin Costner


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China’s Anbang insurance company is no longer in negotiations with Kushner Companies on the potential redevelopment and acquisition of 666 5th Avenue in New York. Kushner Companies announced that the firms mutually agreed to end talks but that they are in conversation with other investors for the project. The deal would have given Anbang a substantial stake in the building and together the two entities were planning a major overhaul to redevelop the property into a retail and condo building. Earlier this month, renderings from Zaha Hadid Architects revealed an update for the building, part of a $12 billion plan that would result in a 1,400-foot skyscraper 40 floors taller than it is currently. Jared Kushner bought the tower in 2007 but divested himself of interest in Kushner Companies before becoming an advisor to the President. – NPR


The S&P CoreLogic Case-Shiller National Index showed that home prices ratcheted up a 5.9 percent annual gain in January 2017. This was up from 5.7 percent in the previous month and set a 31-month high. Seattle, Portland, and Denver saw the largest year-over-year price increases. Overall the national price trend has been on an upswing for five years and the national index is 38.4 percent higher than the low point in February 2012. “Tight supplies and rising prices may be deterring some people from trading up to a larger house, further aggravating supplies because fewer people are selling their homes,” said David M. Blitzer, chairman of the S&P Index Committee. – FORBES


Property sellers in London are opting for short-term rentals to provide income as their homes linger on the market. The number of listings on Airbnb in London nearly doubled in 2016 as sales of London homes under construction dropped to their lowest rate in four years. One owner of a luxury apartment overlooking Hyde Park rented it out for 1,500 pounds per night before putting it back on the market for 8.65 million pounds. Over 4 million people have stayed in an Airbnb rental in London since 2008. Although there is a 90-day limit on short-term rentals for entire homes in London, many people ignore this, prompting Airbnb to announce automated hosting limits last December. London's mayor has asked other short-stay websites to enact similar policing methods. – BLOOMBERG


According to a report from CrediFi, commercial real estate lending dropped by 17 percent in New York City in 2016. Deutsche Bank led the way as $82 billion in loans poured into the market, down from $99 billion the year before. The slowdown is attributed to both fewer property sales compared to 2015 as well as caution over the long-term viability of multifamily loans. Lending on New York City apartment buildings fell by 23 percent. Increased construction in Manhattan and Brooklyn has led to fears that the market is oversupplied and that rents may drop. – THE REAL DEAL


Whisper Valley, a $2 billion sustainable development in East Austin, Texas will be the largest zero-energy ready housing project in the country. The planned community on 2,063 acres will have over 7,500 homes and more than two million square feet of commercial space. Home prices start at $190,000, well below the local median price, and the development features Google Fiber, geothermal wells, and solar panels. All homes will have Nest thermostats and other smart home features designed to help pare back energy costs. The community will also have a 600-acre park, a trail system, and community farming, mimicking the “agrihood” trend seen in other areas. EcoSmart Solutions, a subsidiary of Taurus Investment Holdings, is behind the development and already scouting other areas around the country for similar large-scale sustainable developments. – CURBED AUSTIN


New U.S. Census Bureau population estimates show that Maricopa County, Arizona saw the nation’s highest annual population growth. Harris County, Texas had the highest growth for eight years in a row and was the second fastest growing last year. Maricopa County, where Phoenix is located, saw a population increase of 81,360 people between July 1, 2015 and July 1, 2016. The population increase was mostly due to people moving to the area from other points in the US. The Midwest continues to see population loss with Cook County, Illinois, home to Chicago, seeing a population decrease of -21,324. – AZ CENTRAL


Architect Sir Norman Foster has designed a nearly 70-story skyscraper for downtown Dallas. The proposed round glass-and-steel tower was commissioned by developer H. Ross Perot Jr. and would be located across Woodall Rodgers Freeway from the Perot Museum of Nature and Science on the former Bank of America site. If the project goes forward it would be the second tallest building in Dallas. – DALLAS NEWS


Cisco is exiting its massive 471,580-square-foot Campus Center in Milpitas, California as of January 2018. Hudson Pacific Properties, owners of the site, announced plans for construction to reposition the campus including renovations of the entrance and lobby as well as landscaping and enhancing outdoor recreation areas. Hudson Pacific received a payment of $10.4 million as part of the early termination and expects to write off approximately $5.9 million in expenses associated with the early termination. Cisco will consolidate offices at its San Jose campus. – COMMERCIAL PROPERTY EXECUTIVE


HOT PROPERTIES OF THE WEEK

Kevin Costner has abandoned plans to build a compound in Carpinteria, California and has listed the property for $60 million. The 10.25-acre parcel with 500 feet of ocean frontage and beach access currently has a two-bedroom house on the property. Costner bought the property in 2006 for $28.5 million for 17.25 acres and originally planned to build a large home, pool, and guesthouse. In 2007, he sold off seven acres to a neighbor and in 2012, a different neighbor sued Costner saying that the hedges on the property blocked his views.   – MANSION GLOBAL


Former San Diego Padres player Matt Kemp will sell his home in San Diego County at auction on April 20. The home on four acres is located in the Heritage community and the grounds features a pool, tennis court, and separate guest house with a gym. Kemp spent a reported $3 million to update 15,884-square-foot main house with luxury details like a cigar lounge, wine cellar, trophy room, and a home theater with tiered seating. Kemp, who now plays for the Braves, is selling the home without reserve. It was previously listed for $11.5 million and he purchased the property for $9.075 million. – LA TIMES


Falcon’s Nest, Arizona’s tallest single-family house, is for sale for $1.5 million. Phoenix architect Sukumar Pal designed the 124-foot tall home in Prescott, Arizona on 1.08 acres near Thumb Butte. The three-bedroom home has a hydraulic elevator and an over 2,000-square-foot solarium. The home's height and positioning afford views for 120 miles. Engineered for minimal energy consumption, the ten-story home has a tower that allows heat to vent in the summer and be captured during the winter.  – PHOENIX BUSINESS JOURNAL


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