Most Clicked Real Estate Investment SmartBrief Stories
1. Commercial-property loans may be next stage of crisis
Real Estate Investment SmartBrief | Aug 22, 2008
New York City may be facing its largest default in the credit crisis, as a large apartment complex in Harlem warned last week that it might not be able to make good on a $225 million mortgage payment by September. The disclosure accents fears that commercial-property loans may be drying up, further extending the credit crunch. Markets had been hopeful that commercial loans would be able to avoid the turmoil brought by falling home-mortgage values. New York Times, The (08/21)
2. U.S. commercial property prices down 3.3% in June
Real Estate Investment SmartBrief | Aug 20, 2008
U.S. commercial real estate prices fell 3.3% between May and June. It was the fourth straight month commercial property prices declined in the U.S. Analysts attributed the slide to the ongoing credit crunch and fears that prices will continue to fall. FinancialWeek (08/19)
3. Simon acquisition sparks rumors of bid for Liberty
Real Estate Investment SmartBrief | Aug 25, 2008
Simon Property Group acquired a 3.5% stake in Liberty International for £120 million. The move sparked rumors that Simon may make a bid for its U.K. shopping center rival. Donald Gordon, Liberty founder and life president, holds a 21% stake in Liberty and could be a potential kingmaker in such a deal. Financial Times (08/23)
4. Apartments start to feel effects of housing slump
Real Estate Investment SmartBrief | Aug 20, 2008
The housing slump seems to be affecting the apartment sector. Until now, rental properties had shrugged off the credit crunch that has hampered much of the real estate sector. "In many markets, our new prospects are beginning to resist the current and increasing levels of market rents we've enjoyed over the past quarter," said David Neithercut, chief executive of Equity Residential. Wall Street Journal, The (subscription required) (08/20)
5. Niche REITs excel in tough market
Real Estate Investment SmartBrief | Aug 21, 2008
Several niche REITs have managed to escape the credit crunch relatively unscathed and have even outperformed market generalists. The self-storage REIT sector is enjoying a 12% increase in returns, while life science, student housing and data center REITs have also performed well. CoStar Group (08/20)
6. JPMorgan warns of write-down on Fannie, Freddie shares
Real Estate Investment SmartBrief | Aug 26, 2008
JPMorgan Chase announced that it plans to write down the value of its preferred shares in Fannie Mae and Freddie Mac by half, a possible $600 million loss. The development highlights how the mortgage giants' woes are spreading across the industry. The move is also expected to put pressure on other banks and insurers, which own most of Fannie and Freddie's preferred stock, to take comparable write-downs. Financial Times (08/26)
7. Gates acquires stake in Strategic Hotels & Resorts
Real Estate Investment SmartBrief | Aug 25, 2008
Microsoft Corp. founder Bill Gates acquired a 5.2% stake in Strategic Hotels & Resorts. The Chicago-based REIT owns the Fairmont Chicago and InterContinental on Michigan Avenue. Last year Gates and Saudi Prince Alwaleed bin Talal struck a $3.4 billion deal to take Four Seasons Hotels private. Crain's Chicago Business (08/22)
8. Rescue fears send shares of Fannie, Freddie plummeting
Real Estate Investment SmartBrief | Aug 21, 2008
As the likelihood of a government rescue for Fannie Mae and Freddie Mac has increased, the companies' shares have plunged while their bonds have rallied. Shareholders are concerned that a bailout would wipe out their holdings, while bond holders think the government may secure the companies' debt. Treasury officials met with Freddie Mac executives to discuss the best way for the government-sponsored enterprise to weather the economic storm, sources said. ClipSyndicate (08/20) Reuters (08/20) Economist (subscription required), The (08/20)
9. Fannie, Freddie still have role in multifamily financing
Real Estate Investment SmartBrief | Aug 25, 2008
Fannie Mae and Freddie Mac remain vital for capital financing in the real estate market, particularly for multifamily financing. "From what we see, they are continuing to support (multifamily) in a disciplined way," said Thomas McManus, chairman and CEO of Cushman & Wakefield Sonnenblick Goldman. Commercial Property News (08/22)
10. Nobel Prize economists say recovery at least a year away
Real Estate Investment SmartBrief | Aug 22, 2008
At the annual meeting of Laureates on Lake Constance, the consensus among Nobel Prize-winning economists is that a recovery of the global financial system may not start for at least a year. "There is a tremendous amount of deleveraging still necessary in the United States and Europe," said Myron Scholes, co-founder of Long-Term Capital Management. "I'm not exactly sure when it's going to end. There are many financial institutions that need to add capital or sell assets, but it's getting more difficult." Telegraph (London) (08/22) Wall Street Journal, The (subscription required) (08/22)
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