Tag Archives: investments

Apartment REITs Continue Their Selling Spree


Story via NREIOnline

Apartment REITs Continue Their Selling Spree

Bendix Anderson

May 24, 2016
Apartment REITs continue to cash in on their highly-priced properties as they prune their portfolios.
“Since 2011, we have completed the sale of $2.4 billion of assets and expect total dispositions to approach nearly $3 billion by the end of 2016,” says Richard J. Campo, chairman and CEO of Camden Property Trust, a multifamily REIT that owns and operates approximately 158 communities throughout the country.
Top REITs like Camden continue to sell large portfolios of properties and trophy assets in primary markets. The largest three multifamily REITs are buying assets selectively, if they buy at all, mostly in strong secondary markets in prime metropolitan areas, and are selling significantly more than they buy.
Equity Residential: net seller
Take Equity Residential, which was the largest apartment REIT in U.S. with 109,540 apartments, according to the Top 50 Owners list released in April by the National Multifamily Housing Council (NMHC).
The REIT is likely to have significantly fewer apartments on next year’s list.
Equity Residential sold 23,262 apartments to affiliates of Starwood Capital Group for $5.365 billion in the first quarter. The price is much higher than Equity paid for the properties—the sale generated an economic gain of approximately $2.0 billion and an unlevered internal rate of return of 11.3 percent. 
Equity Residential also cashed in by selling two properties in East Palo Alto, Calif., and New York City, for hundreds of millions of dollars more than it spent to buy them in 2010 and 2011. The REIT used the proceeds to retire $2 billion in debt and improve the company’s “already strong” credit metrics. Equity Residential also bought a handful of properties in places like Seattle, Los Angeles and Brooklyn, N.Y. recently, totaling $204.1 million.
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Young Sarasota Professionals weigh in on affordable housing

The program surveyed its membership and asked how much it can afford to pay to live in Sarasota.  

 Picture via Sean Dreznin
by: Jack Short Staff Writer

NEWS
SARASOTA FRIDAY, JAN. 29, 2016 22 hours ago

Sarasota Young Professionals weigh in on housing

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The program surveyed its membership and asked how much it can afford to pay to live in Sarasota.

by: Jack Short Staff Writer

About half of a group of young professionals surveyed recently are thinking of leaving Sarasota – because it doesn’t have enough affordable housing.
Young Professionals Group (YPG), a networking and advocacy organization run by the Greater Sarasota Area Chamber of Commerce, comprises approximately 450 young professionals in the Sarasota area. YPG surveyed its members about housing and, of the 100 that responded, almost half said they are considering leaving the area. 
According to Mimi Cirbusova, coordinator for YPG at the chamber, the survey is an initial step in a series of surveys on housing the group would like to produce.
“It is a good snapshot of 21 to 40 year-olds and what their housing needs are,” she said.
More than half of the respondents, 62%, said they need one- to two-bedroom apartments that cost less than $1,000 per month.
Nearly half, 46%, said they were thinking of leaving Sarasota now, and the majority of those respondents were the same people who indicated they needed housing that costs less than $1,000 per month.
“That indicates to me those are individuals who are service workers or people in entry level positions,” said Cirbusova.
Cirbusova said she believes the survey helps vindicate concerns about Sarasota’s aging population and its difficulty retaining young professionals. Data released by Sarasota County’s Planning and Development Services in September highlighted those difficulties as well.
“When members choose not to renew,” Cirbusova said, “I reach out to them and often their response is ‘I moved out of the area.’ That is something we’re concerned about.”
In upcoming surveys, the group will gather similar data about the Rosemary District, and also try to determine if there is a correlation between where people choose to live, in Sarasota, and their income.

Manatee millennials to commission: It’s too expensive to live here

Manatee millennials to commission: It’s too expensive to live here

Affordable housing top issue for young Manatee residents, workers

Wearing “I am the Manatee Millennial Movement” buttons, the majority of Manatee County’s millennial team shared where they live with the county commission at its Tuesday meeting.

Renting apartments and homes, owning homes, living outside Manatee County and living with their parents were where the county employees who comprise the county’s 36-person millennial team call home.

During the presentation, they shared that there is a lack of workforce housing in Manatee County.

“We are not looking for a handout at all,” said Simone Peterson, a member of the millennial team and a county government neighborhood services specialist. “If I make $30,000, I want to live in a safe, affordable place.”

After talking with different players in the community, including builders and developers, workforce housing, placemaking and infrastructure were the top three concerns identified by the group, according to Peterson.

Understanding deflation and why it is so scary

Understanding deflation and why it is so scary

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By Rick Newman via Yahoo Finance

If the price of a car or an iPhone drops, that’s usually good news for consumers. So it might be puzzling that investors and economists suddenly seem freaked out about the possibility of deflation, or a sustained drop in the level of all prices, on average.

Deflation was a concern back in 2010 and it’s a fresh worry now as oil prices plunge, the stock market wavers and consumers put spending plans on hold.

The paradox of deflation is that falling prices on a few items can generally be good for consumers, leaving more money in their pockets for other things. But falling prices on too many things can have ruinous effects on the economy that are hard to reverse. Japan suffered nearly two decades of deflation starting in the early 1990s, and deflation helped prolong the Great Depression in the 1930s.

When all prices fall, consumers have a strong incentive to put off purchases — after all, everything will probably be cheaper tomorrow. Some purchases are hard to delay—food, medical care, gasoline to get to work. But a lot of the things we buy can wait, which is why sales of cars, clothing, and appliances drop sharply when times get tough.

In an economy like ours — in which consumer spending accounts for about 70% of total GDP — a powerful incentive to postpone purchases can be disastrous. When spending drops, so does corporate revenue, raising pressure to cut costs, which leads to layoffs and other personnel cutbacks. Companies are likely to freeze salaries or even cut pay for those workers remaining. Dwindling income makes consumers even more leery about spending money, worsening the whole cycle.

More expensive debt

The other mechanism for deflationary ruin is debt. One big reason lending helps the economy grow is inflation—most loans become easier to pay back over time, because the principal doesn’t grow but income used to pay it down does. We typically think of inflation as a rise in prices, but it’s usually accompanied by an increase in workers’ wages as well, and as long as wage increases exceed price hikes, ordinary people get ahead. Home buyers, for instance, often “grow into” a mortgage that might seem onerous at first, because their income climbs as they progress through their careers. The mortgage payments on a fixed-rate loan, by contrast, remain constant. So in a typical economic environment, you gradually earn more income to make the same payment every month.

Deflation creates the opposite phenomenon: Debt gets more expensive over time, because consumer spending power declines. When prices and corporate revenue fall for a sustained period of time, wages inevitably go down, too. That makes fixed-rate debt more expensive, because you have less money instead of more to make the same regular payments. The mismatch affects companies and even governments the same way it does consumers, causing cash-flow shortages, liquidity problems and bankruptcy. Each of these ugly outcomes reinforces the others, making a deflationary spiral very hard to pull out of.

On top of that, deflation makes people wary of taking out debt in the first place. Too much debt is a problem in itself, but prudent lending is an essential element of capitalism. Without it, investment shrivels and wealth is more likely to disappear than accrue.

For complete article, CLICK HERE <—–====

Demand for home loans plunges

Demand for home loans plunges

By Nick Timiraos via The Wall Street Journal

Mortgage lending declined to the lowest level in 14 years in the first quarter as homeowners pulled back sharply from refinancing and house hunters showed little appetite for new loans, the latest sign of how rising interest rates have dented the housing recovery.

Lenders originated $235 billion in mortgage loans during the January-March quarter, down 58% from the same period a year ago and down 23% from the fourth quarter of 2013, according to industry newsletter Inside Mortgage Finance.

The decline shows how the mortgage market is experiencing its largest shift in more than a decade as an era of generally falling interest rates that began in 2000 appears to have run its course. The average 30-year fixed-rate mortgage stood at 4.5% last week, up from 3.6% last May, when interest rates shot up in reaction to the Federal Reserve’s initial indication that it might reduce a bond-buying campaign that was, in part, designed to keep a lid on long-term rates like mortgages.

For complete article, CLICK HERE <—–=====

My Poken digital business data center

My Poken digital business data center

A new technology replacing antiquated business cards. It’s very cool! Experienced it here at the NAI Global conference in Las Vegas at Planet Hollywood.

Sarasota multimillionaire sailing on to Belize; Selling Investment Portfolio in Sarasota & Manatee

Sarasota multimillionaire sailing on to Belize; Selling Investment Portfolio in Sarasota & Manatee

By Michael Pollick
Published: Wednesday, November 6, 2013 at 1:00 a.m.

The remodeled El Patio Apartments near the bayfront in Bradenton.  A classic building with character!

The remodeled El Patio Apartments near the bayfront in Bradenton. A classic building with character!

Great Property in Highly Desired Location - Contact NAI Tampa Bay;s Sean Dreznin or Keller William's Andrew Haddad for more information.

Great Property in Highly Desired Location – Contact NAI Tampa Bay’s Sean Dreznin or Keller William’s Andrew Haddad for more information.

Harvey Vengroff, a self-made multimillionaire who moved to Southwest Florida 23 years ago so he could go sailing every day, is sailing on — to Belize.

NAI Global (Sean Dreznin, Kyle Keelan, Phillip Paul Ginexi) & Keller Williams (Andrew Haddad) are proud to present... A portfolio of investments

NAI Tampa Bay (Sean Dreznin, Kyle Keelan, Phillip Paul Ginexi) & Keller Williams (Andrew Haddad) are proud to present… A portfolio of investments


Vengroff, the 72-year-old founder of one of the world’s largest collection agencies, plans to sell a $75 million Southwest Florida property portfolio that he amassed after arriving in 1990. He has hired NAI Tampa Bay and Sean Dreznin, Phil Ginexi & Kyle Keelan & Andrew Haddad of Keller Williams to sell the portfolio investments. He is also making it possible for his real estate employees to acquire another $20 million worth of apartments on favorable terms.

NAI Tampa Bay - Sean Dreznin

NAI Tampa Bay – Sean Dreznin

Since he got here, Vengroff has been a colorful character who prefers casual clothes, rails against government bureaucrats and tends to do things his own way.



Vengroff renamed the collection agency that is still in the family as Vengroff Williams Inc.

That company, which employs more than 100 in this region, maintains larger offices in Long Island, N.Y.; Chicago and Orange County, Calif., collecting on commercial delinquent accounts for a large number of clients, including General Electric Co., Microsoft Corp. and Google Inc.

“We are not moving anybody out of Sarasota,” Vengroff told the Herald-Tribune. “We are just going to add new people in Belize, that’s all.”

One of them will be Harvey Vengroff.

On a more personal level, Vengroff said he has been disappointed in the reception he has gotten from the City of Sarasota when he has asked for higher density rights on properties so that he could build rental apartments. Specifically, he has sought permission to build high-rise rental buildings at 2211 Fruitville Road, the close-in, 8-acre site now on the market for $8 million.

“If you want to build luxury condos you can get 200 per acre,” Vengroff said. “If you want to build affordable housing, you cannot get 50 per acre.”

Vengroff says he has empowered three agents to liquidate the roughly $75 million in real estate, most of it affordable housing.

These agents are Sean Dreznin, Kyle Keelan and Phil Ginexi from NAI Tampa Bay.

CLICK HERE for complete article <—==========

“I don’t think there was anybody who ever dedicated themselves more to affordable housing for the work force than Harvey,” said Kerry Kirschner, executive director of Argus Foundation, who in a former political life helped recruit Vengroff to Southwest Florida.

Suncoast Property Management & Leasing — Serving Sarasota County

Suncoast Property Management & Leasing — Serving Sarasota County

Sarasota Property Management, Sales & Leasing

At Suncoast Property Management, Sales & Leasing, we are a full-service company. We assist our clients and customers in locating and purchasing investments, leasing properties on annual and monthly terms and finally, managing those properties per each clients wishes.

Herald Tribune Business Weekly Press Release

Herald Tribune Business Weekly Press Release

NAI Manasota - Sean Dreznin

NAI Manasota, based in Lakewood Ranch, has added hired two commercial real estate specialists, Sean Dreznin and Richard Sellers….

Dreznin is a commercial property management professional who owned and operated a professional services management company for several years. He will work with NAI’s Commercial Investment Sales & Special Asset Services group.

Click here for full article <——

The Announcement of a New Career in a Familiar Industry.

The Announcement of a New Career in a Familiar Industry.

Commercial Investment Sales, Asset Services and Property Management

It is my pleasure to announce I have accepted the position of Commercial Investment Sales, Asset Services and Property Management Advisor with NAI Manasota.

Here is the link to my profile.