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LA Real Estate Firms Are Making Deals Outside California

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CGI sold the Astoria on Celebration for $ 74.5 million.

Los Angeles real estate companies are paying attention to more dispersed markets and doing business outside of California, from Provo, Utah to Orlando, Florida.

In the past few weeks, two Westside companies have made major acquisitions.

Santa Monica-based MJW Investments bought a student residence at Brigham Young University, Utah. The price was not disclosed.

MJW acquired the 154-unit, 924-bed community in partnership with Redstone Residential Inc. of Provo, Utah.

With the acquisition, MJW now has more than 7,000 student residences in the United States.

Amenities at the property near BYU include a hot tub, sand volleyball court, pool, and on-site laundry facilities.

It is MJW’s sixth acquisition in this area.

In March, the company, together with Redstone Residential and Venice-based MHE Enterprises Inc., acquired a 1,156-bed student residence nearby.

In the recent acquisition, MJW plans to spend cash on the units and amenities to make it a more desirable property. Redstone Residential will oversee renovations and property operations.

“The close proximity to campus and the remarkable offerings are just some of the things that make this property incredibly attractive,” said Mark Weinstein, President and Founder of MJW Investments, in a statement.

“This means that our acquisitions will reach more than 2,000 beds in Provo in 2021. We are excited to bring a new living experience to the students at BYU and we are incredibly confident that once our capital projects are completed, this will be an enhanced living experience for the students, ”he added.

Voya Investment Management funded debt for the acquisition.

Further south, BH Properties, based in Sawtelle, acquired a retail center in Plano, Texas on June 1 for an undisclosed price.

Known as Preston Shepard Place, the property has 361,780 square feet of retail space on 31 acres. The center was built in 1995 and has Marshalls, Burlington and Tuesday Morning among its anchor businesses.

Only 55% of the location was rented when it was closed.

“Preston Shepard Place is an underutilized retail location poised for a surge in lease and traffic,” said Scott Henry, director of acquisitions at BH Properties, in a statement.

“With 163,002 square feet of vacancy, we have plenty of runway to generate future cash flow growth. We plan to accommodate a large number of retailers by spreading the larger vacancies across smaller spaces. The busy location and wealth dynamics offer the opportunity to achieve significant growth in NOI (Net Operating Income), ”he added.

From 2008 to 2018, the center was 94.4% occupied, according to BH Properties. According to the company, the current low occupancy rates are due to corporate insolvencies in private customer business.

The transaction marks BH Properties’ first retail deal of the year.

While other local businesses are adding assets, Woodland Hills-based CGI Real Estate Investment Strategies is giving up some properties in other states.

The company announced on June 3 that it had sold Astoria to Versity Investments at Celebration in Celebration, Florida for $ 74.5 million.

The property has 306 luxury apartment buildings spread over six four-story buildings with a central clubhouse and pool.

The property was built in 2016 before being vacated in 2017 due to construction issues. CGI acquired the vacant community in 2019 for $ 43 million and brought the property up to date. At the time of sale to Versity Investments, the property was 99% let.

“Our history as a fundamental developer has given us both the experience and confidence that we can take on a massive challenge like Astoria and turn it into a resort-style Class A facility,” said Gidi Cohen, CEO of CGI in an opinion.

“Having successfully restored the property to optimal condition and the Orlando market continued to pick up, we were able to exceed our business plan in record time,” he added.

CGI assumes that the property will develop well in the future.

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Uncovering Milwaukee’s Real Estate Boom

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You don’t have to be a real estate guru to know that Milwaukee is in the middle of a sellers’ market unlike any we have seen in decades. High demand, low supply, affordable mortgage rates, and opportunities to work from home have created an incredible housing market. What does this surge mean for Milwaukee and how long will it last? I asked Peter Promersberger of The Promersberger Group, Keller Williams, for his thoughts.

As a local real estate agent for 18 years, Promersberger states that the housing market is bursting across the country and Milwaukee is no exception. “The market in this city is just as strong as any other in the country,” he says. “Interest rates remain low and there are many more buyers than in previous years, which makes our market as competitive as that of neighboring cities.”

The Milwaukee Market

According to the Redfin Group, the average home sales in Milwaukee is $ 181,000; an increase of 7.3% from 2020. Recent trends in the Milwaukee housing market show homes sell 3% to 9% above asking price and are typically on the market between 31 and 43 days.

What are buyers looking for? Reports indicate that a quarter of Milwaukee properties recently sold included a home office, finished basement, and / or large master bedroom. Buyers also found great value in homes that included a washer and dryer, fenced yard, and / or patio.

“It’s important to note that the market has changed recently,” adds Promersberger. “Some properties still sell quickly after multiple offers. However, depending on the area and the condition of the house, some start to sit in the market a little longer.

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“In the spring, for example, offers were accepted in which no apartment viewing and no appraisal were agreed. Buyers regularly offered to pay the seller’s moving costs, ”says Promersberger. “While this is still happening, these situations in Milwaukee are starting to decrease.”

What about all condos?

Long-time residents are not only noticing an increase in condominiums across the city, but are also wondering who is moving into these hotspots?

The answer could be found in Milwaukee’s millennial population. In search of pedestrian-friendly neighborhoods, public transport and a variety of entertainment options, young shoppers often find what they are looking for in downtown complexes.

“The local market is strong with condominiums,” says Promersberger. “Young buyers attract condominiums because they want to live in an exciting atmosphere. Many aren’t interested in gardening, and they like the idea of ​​exploring their neighborhood on foot.

“The same goes for empty nests,” he adds. “They’re big on downtown condos because they want to walk to restaurants and other venues. They are no longer interested in maintaining their house and yard. They want a simpler life and that is what condominiums in the city center offer. ”

Some experts assume that the current housing market will shift in 2022 or early 2023. “Personally, I think the market will flatten out in 2022,” says Promersberger. “No matter what, the Milwaukee housing market will continue to be a success. This market has always been and will continue to be exciting and growing, which is just one of the reasons why Milwaukee is such a great city to invest and such a great place to live. ”

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The secret to getting the home you want

Have you found your dream home? In this competitive market, you need to act quickly. Real estate agent Peter Promersberger says working with the agent is key to getting your offer noticed.

“It is important to maintain good communication with the listing agent,” says Promersberger. “As soon as you want to make an offer, have your agent contact the listing agent. Find out what the sellers are looking for in a quote and work with your agent to come up with a fully executed quote. Make sure your agent clearly communicates the terms. By working closely with the agent, you will be better able to create an offer that will grab the seller’s attention. ”

Whether you’re looking to sell or buy a home, contact Peter Promersberger of The Promersberger Group, Keller Williams. Call 262-844-0237 or email peter@peterpsells.com.

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Home Appraisal Discrimination Puts a Dent in Black Wealth | Black Voices | Chicago News

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Research shows that black homeowners run the risk of losing the value of their homes because of discrimination in Chicago appraisals.

A 2015 study found that homes in predominantly white neighborhoods were rated more than three times higher than black and Latino neighborhoods, even after taking into account amenities and household income.

Across the country, black homeowners report that their homes are not rated higher until owners have removed all evidence of being black – family photos, for example.

Now there is growing pressure to pass state laws to protect black homeowners from valuation discrimination. US MP Bobby Rush (IL-1st) supports a bill to set up a task force to solve this problem, the Real Estate Valuation Fairness and Improvement Act (HB2533). Rep Rush also sent a letter to the Government Accountability Office requesting a study on racial bias in home evaluations this year.

Rush says he himself was a victim of valuation bias earlier this year when a white appraiser submitted a valuation of his Bronzeville home that was more than $ 250,000 less than Rush expected.

Lutalo McGee chairs the Discrimination Task Force at Illinois Realtors. He says the task force’s first goal is to make more realtors and homeowners aware of the problem.

“As realtors, we really just need to be familiar with the review process, how to work with reviewers, how we advise our clients on cases where we feel reviews have been unfair, and … prices when they come up,” said McGee . “We are here to educate and empower our customers. Both buyers and sellers. “

And the organization hopes HB2533 continues the work of eliminating inequalities in property valuation and increasing the number of black appraisers.

“Our second mission… is to ensure that our brokers and our members understand how the valuation process should work and are able to manage this process successfully. And ultimately, we hope to influence changes to the regulatory framework and guidelines that govern assessments and how assessments are conducted to ensure that things are unbiased and fair for all parties. “

Junia Howell, visiting professor of sociology at the University of Illinois Chicago, says the big differences arose over more than a century and are part of the legacy of decades of housing policy discrimination.

Howell’s work examines the legacy of redlining in national and local trends.

“What we colloquially refer to as redlining – or the process of literally going through government, going through neighborhoods and rating them and giving higher scores to the whites and the wealthier – is still because of the way we use sales comparisons We have approaches today based on these historical sales as well as various levels of bias built into the systemic element and the decisions of individual appraisers, ”Howell said.

Howell says the practice is nothing new and the effects linger.

“These effects are racial inequality, health effects, environmental effects. They’re ubiquitous because the way we value property affects how taxes and schools work, and affects all of these different components, ”Howell said. “And I would like to emphasize that although all individual prejudices are definitely part of the story and we urgently need more diversity in this area, we also have to be ready to think seriously about how the larger structure in the system is built … because this” Even deeper problems are somehow eliminated with this racial inequality and this perpetuation of inequality that we have continued for almost the last century. “

Real estate appraisal trainee Marcus Knight is relatively new to the industry – he only started work eight months ago. As a black man, he is a rarity in his job – according to the Appraisal Institute, less than 2% of reviewers nationwide are black. The former non-profit director says he was motivated to become a valuer when he realized the power real estate valuation can wield in underserved communities. Knight calls the evaluation process a mixture of art and science.

From Knight’s point of view, the reviewer’s race is less critical than a deep understanding of the neighborhoods he is reviewing.

“You need local market experts, and the most important thing is that you don’t have a lot of black and brown appraisers,” Knight said. “So, you know, if you could bring in more blacks and browns who know these areas … [comparables] for object properties that lead to … a fairer evaluation of the properties. “

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Jim Valentine: Real Estate’s confused sea

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Jim Valentine on real estate

Saturday, October 16, 2021

Real estate markets are very similar to an ocean in that they are made up of an infinite number of variables that create many different “moods”. We had a very strong “current” real estate market for most of the year. This situation is easy to spot and many have participated in it to keep it going. While there is still strong “flow” in the market, other factors are starting to stir it up a little.
On the ocean there is a situation known as the “confused sea”, which is defined as a severely disturbed water surface without a single, well-defined direction of wave motion. In such situations the waves go in all directions and create confusion. There are times in the real estate industry when we have such tangled maritime circumstances and it seems like we are about to step into such a time. What could be causing such confusion in such a strong market, one might ask?
The change in the population is interesting. We are seeing an increase in listings in several market segments. One can only wonder why they waited, but it is very likely that these new sellers will see the market weaken and want to intervene before it’s too late. The market may no longer be what it was, but it is still very strong. Buyers may be able to find a home now, but there are other factors that are causing the swirling waves.
Interest rates are rising, which affects the purchasing power of buyers who are restricted in their borrowing. They are still very, very low, but if they increase it can affect the market. There was a time when the interest rates were 18% and 9 points (1 percent of the loan) and we agents said if they ever get back to 12% we could make a living. Buying money from 2.5% to 3.5% is more psychological than financial, but it can have an impact. Other factors at play may cause it to climb a little higher, but it’s still much lower than the dynamic market from 2005 when we had 5 and 6% money.
Inflation has worked its way back into our vocabulary and can cause most of the disruption. The cost of living has skyrocketed ie gasoline, fuel oil / gas, groceries, electronics, cars, appliances, etc. The real impact on daily life is only just beginning to be recognized by the masses, with many public statements reflecting the possibility of this being long term and get worse. Higher cost of living affects creditworthiness.
It is still a good time to buy so that you can own your home and not have to be subject to rent increases or vacate the property because the owner wants to take advantage of this still great market. You can secure a very good interest rate and have stability in your payment. Sellers are more cooperative and therefore allow more conventional approaches to your purchase than the frenzy we had earlier this year which caused many to compromise their emotional and financial comfort to shop in a competitive marketplace. There is still competition, but not as insane. Northern Nevada’s economy remains strong, which is a good thing.
Confused seas have a greater impact on smaller ships. As a tenant, you will feel the confusion in the real estate market more than as an owner. Don’t overwhelm yourself, invest wisely and enjoy the American Dream while everything else is fine. We know from our 40+ years of property sales in Northern Nevada that the market will be cyclical. It always does. Slat the hatches, secure the loose items, and drive off. It makes the ultimate smooth sailing that you are about to experience that much sweeter. Get a plan to sell or buy your home with your realtor and work your plan out.
If you are clear about your wants and needs, you can achieve them in this market. Your clarity will help clear the confusion around you. Work your plan and enjoy the results. Those are the good old days!
When it comes to selecting professionals to assist you with your real estate needs … experience is priceless! Jim Valentine, RE / MAX Realty Partner, 775-781-3704. dpwtigers@hotmail.com

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