Inside Real Estate - January 15th, 2020

Inside Real Estate (Jan 15th, 2020)

MGM Grand and Mandalay Bay sell / California squatters arrested / iPod creator's Mexican mansion


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1. The real estate and casinos of the MGM Grand and Mandalay Bay resorts in Las Vegas will be sold in a joint deal totaling $4.6 billion, the Wall Street Journal announced on Tuesday. The deal includes Blackstone Group Inc., which will own "slightly less than half of the properties." MGM Growth has reportedly also agreed to purchase up to $1.4 billion of its partnership units from MGM Resorts. The Wall Street Journal compared this deal to the sale of the Bellagio casino to Blackstone last year. In October 2017, Mandalay Bay was the site of America's deadliest mass shooting when a sniper killed 58 people. According to CBS, MGM Resorts agreed to pay up to $800 million to compensate shooting victims and their families. - WALL STREET JOURNAL

2. Members of the "Moms 4 Housing" group squatting in an unoccupied house to protest the Bay Area's affordable-housing shortage on Tuesday were arrested, the L.A. Times reports. The four women had been unlawfully staying in the Oakland, California, house with their children since November. They said they aimed to draw attention to the housing crisis and homelessness in that area, adding that they’d been on the brink of homelessness while this home sat vacant. The residence belongs to real estate investment company Wedgewood, which purchased the property in the summer for more than half a million dollars. In December, a spokesperson for Wedgewood reported the home stolen when the squatters were found living there. - LA TIMES

3. One of the developers of the original iPod is selling his coastal Mexican mansion for $20 million. Dubbed Rancho R and R, Jonathan J. "Jon" Rubinstein's ultra-modern estate is a 16,000-square-foot structure designed by esteemed Mexican architects, Alfonso López Baz and Javier Calleja. It sits on nearly 2 acres of land and boasts more than 200 feet of private beachfront territory. Included in the sizable list price is a collection of original art from celebrated Mexican artists. Some custom-created furnishings will also be included in the sale. Situated in the post Punta Mita community, some of the property's amenities include shared access to a tennis club, golf course, private chefs, beach clubs and restaurants. - SF GATE

4. The homes inventory across Colorado is shrinking, according to new data. The Colorado Association of Realtors said the number of single-family homes on the market in Denver saw a 28.9 percent year-over-year decrease in the last quarter of 2019.  In some markets, this points to slow new-start construction, but in Colorado, it's also due to “hibernating property owners not putting homes up for sale." Colorado Springs Realtor Patrick Muldoon adds: “In 2018 Colorado ranked number 16 on the list of states to move to. We now sit at 42 as word on the street is, we cost too much.” - DENVER POST

5. Apartment-complex managers are finding it difficult to keep up with the growth of e-commerce, as heaps of packages pile up in their offices. Some developers are now adding dedicated storage space for online shopping items that have crept up on managers, especially during the holidays. One property manager in Chicago, Bill van Senus, said his building received roughly 900 packages on the Wednesday after Cyber Monday. Shoppers broke a record with $9.4 billion in sales on Cyber Monday, Adobe Analytics data reports. Overall internet sales spiked by nearly 19 percent in the 2019 holiday season compared to 2018. Some apartment employees have had to find creative solutions for the onslaught of packages. Senus said his solution was to ask the dry cleaner next to their building to help store some of the tenants’ items. - BISNOW

6. While California battles a historic housing crisis, Texas is experiencing a real estate boom that's expected to slow but continue well into the new year. Experts believe land-use regulations and environmental laws in California have slowed construction, which has created a shortage of homes and driven up real estate prices. Texas boasts a steady rate of new home units. Curbed said that in the six years leading up to 2016, "Dallas and Houston combined created at least twice as many housing units per year as Los Angeles plus the entire Bay Area.” The deviation between the two states is expected to grow in 2020. - CURBED

7. While rents in the U.S. increased by 3.7 percent last year — according to the Consumer Price Index — renters in Los Angeles and Orange counties suffered 5.5-percent spikes. This marks the sixth year in a row where rent inflation topped 3 percent. This year’s newly effective rent-control law, Assembly Bill 1482, could help dampen leasing prices in 2020. Surprisingly, the No. 1 market for rental-rate increases in 2019 was Phoenix, which soared by 6.4 percent. - OC REGISTER

8. The New York Times' most recent roundup of commercial transactions topped out at $12.2 million in Brooklyn. A 1919 one-story building at 1275 Broadway formerly housed a discount clothes shop. The new owner has been approved to construct a 14-story hotel at the 8,940-square-foot site. The project is estimated to be completed anywhere from 1.5 to 2 years after the sale is complete. Another sale includes a $6.36 million sale of a 15,946-square-foot Bronx building at 764 East 152nd Street, which currently has 24 fully occupied housing units. - NEW YORK TIMES

9. The real estate you can afford with $500,000 in America's major metros varies widely. Forbes compared what the same budget can purchase from the West to East coasts, such as a "McMansion" in Houston's suburbs, a tiny condo in Chicago and a cozy Los Angeles bungalow. In Manhattan, that dollar amount can pay for a studio on 34th street, or a 1,500-square-foot property on Staten Island. - FORBES

10. International market snapshot: A 19th-century mansion in Paris is on the market for €48.9 million, or $54.6 million. The unique home features a private garden and courtyard at its prime location in the 7th arrondissement. The renovated 5-story house was originally constructed in 1838 on the Left Bank of the Seine. The facade has remained untouched, so as to maintain its intended 1800s appearance. It has two master suites, two living spaces, and a professional kitchen in the basement, as well as a kitchen on the ground floor and another on the third. - MANSION GLOBAL

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.

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