Inside Real Estate - October 28th, 2019

Inside Real Estate (Oct 28th, 2019)

Second largest US mall opens / 'Micro sleeping pods' homes / Turkey's most expensive home for sale

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1. American Dream, the second largest mall in the U.S. — and third largest in North America — opened Friday in East Rutherford, New Jersey, with 3 million square feet of leasable space. When it's fully operational next spring, it will feature a 16-story indoor slope, waterpark, rollercoaster, hundreds of retail and food shops and more than a dozen attractions amid growing concerns of the "retail apocalypse." While the current retail landscape is threatened by consumers increasingly switching to online marketplaces, some experts believe this mall will succeed as more of an attraction and the "next iteration of shopping" than as a mere retailer. American Dream is expected to be fully operational — doggy daycare, ice rink, 450 shops and aviary included — by 2020. - THE DAILY HERALD

2. A new startup is making it easier for real estate investors to purchase and lease out homes in long-distance markets that may provide more affordable investment properties. Roofstock manages inspections, neighborhood research and title searches for remote buyers. The company also provides a 30-day money-back guarantee to add a layer of security for investors. Roofstock CEO Gary Beasley said the majority of its customers come from "expensive coastal markets" seeking lower-priced markets. He said most buyers finance 70 percent of the property through subsidized loans through Fannie Mae and Freddie Mac. - YAHOO FINANCE

3. Market snapshot: Some of the New York City-area homes that sold at the $600,000 price point include everything from a studio in the city to a 4-bedroom house in the outskirts. At $699,000 is a 521-square-foot Chelsea studio in a non-doorman building that sat on the market for 10 weeks, The New York Times reports. Its monthly costs include $755 in taxes and $480 in common charges. At double the time on the market — 20 weeks — is a 3-bedroom, 1,634-square-foot Tudor-style house in Westchester that sold for $699,000. Its annual taxes are roughly $20,000 per year. - NEW YORK TIMES

4. Google is occupying a larger role in Bay Area housing growth than rival Apple, according to the Mercury News. A comparison of the tech giants reveals that Google is incorporating housing and transportation into its new developments and an upcoming campus proposal. Apple's 175-acre “Spaceship” campus, on the other hand, does not have access to major transit lines or any housing options. Recently, Facebook and Google were lauded for their Bay Area real estate donations, which included Facebook's $25 million gift for teacher housing, after reports revealed that teachers in the Bay Area were being out-priced in their schools’ neighborhoods. - MERCURY NEWS

5. Salt Lake City lawmaker Sen. Jake Anderegg is proposing a $35 million affordable housing bill for that city. A similar bill that passed earlier this year, SB34, was "stripped of its $24 million fiscal note amid budget constraints and complications from lawmakers’ tax reform efforts.” The new request, heading into net year’s session, is “optimistic,” Anderegg concedes but adds that Utah is currently facing a 50,000-unit housing shortage. He said an aggressive approach to addressing the housing crisis in that state could result in 4,000 to 5,000 new units over the next three years. - DESERT NEWS

6. While the virtues of tiny housing for the homeless are extolled in the U.S., the UK is proposing “micro sleeping pods" as a solution to crowded shelters. These pods are priced at roughly £10,500 — roughly $13,500 — to build, which is a fraction of what traditional flats cost to construct. The National Housing Federation and Crisis said that 340,000 affordable homes must be built in England through 2031 to address the current shortage. These small units could be a solution and bridge from homeless shelters to houses, since they provide safety and privacy and aren’t cost-prohibitive to duplicate around the country. - THE GUARDIAN

7. Hair-care company Matrix Essentials co-founder Sydell Miller is selling his Palm Beach property to hedge fund manager Steven Schonfeld for an estimated $200 million, according to the New York Post. Because the mansion is a pocket listing, no exact list price is available, but other outlets put the price closer to the $90 million mark. Schonfeld, a New York billionaire, is expected to close on the home by the end of this year. The price “likely will beat the $105 million record set earlier this year by the sale of Broadway producer Terry Allen Kramer’s estate,” Forbes reports. The mansion known as "La Reverie" is situated half a mile away from President Trump’s Mar-a-Lago estate, but is approximately 8,000-square-feet larger. - FORBES

8. Chicago real estate developer Martin Stern has died at 72. The prominent commercial real estate figure is best known for his roles in the Harold Washington Library as well as the city's central Block 37 development, and the redevelopment of the old Children’s Memorial Hospital. He reportedly passed away at a hospital in Highland Park, where he lived for more than 40 years. His friends and former colleagues remember him for his negotiation and mediation skills as well as his "specialty," which was "very, very complicated, stressful deals,” his wife, Devi Stern, said. - CHICAGO TRIBUNE 

9. Turkey’s most expensive home is on the market for $95 million, the Daily Sabah reports. The 130-year-old mansion dubbed “Marshal Zeki Pasha” was designed by French-Ottoman architect Alexandre Vallaury. It houses 23 rooms — six on each floor — as well as five dining halls and views of the Bosporus, a natural strait that's home to a row of distinguished mansions. The 2,489-square-meter estate — roughly 27,000 square feet — which has a 110-meter long pier, was once home to an Ottoman pasha. - DAILY SABAH

10. The University of Massachusetts Lowell is expected to expand via rental properties instead of land purchases, Chancellor Jacquie Moloney said. The school will expand through private-public partnerships, which she said will create more tax revenue for the city of Lowell. The university and city have a contentious history when it comes to taxes: Six years ago, the school and the city settled a potential lawsuit after UMass argued that, as a non-profit entity, it shouldn't have to pay taxes. Eventually, the university agreed to pay $60,000 per year to the city's Community Improvement Fund. - LOWELL SUN

Written and curated by Darla Guillen Gilthorpe. Darla writes for the Houston Chronicle, where she was part of its 2018 Pulitzer Prize finalist staff. She was previously an editor at Vox Media site Eater and has had bylines in Elle Decor, SFGate and various other outlets. Follow her on Twitter here.

Editor: Kim Lyons (Pittsburgh-based journalist and managing editor at Inside).

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