Clockwise from top left: Concerns over flooding and climate change are hurting coastal home prices, Mattress Firm’s CEO Steve Stagner issues lease reduction demands to landlords, an unnamed Chinese company has bought a 70 percent share on a New York City condo tower, StreetEasy’s Susan Daimler will run Zillow’s national Premier Agent program.
Concerns over flooding and climate change hurting pricing of coastal homes
Homes in coastal areas with high flooding risks have appreciated slower than inland homes, an analysis of pricing in coastal areas around the country by Realtor.com and the Wall Street Journal found. The analysis found concern over flooding and climate change are making once highly sought-after coastal homes nationwide less attractive to buyers. [TRD]
CBRE’s Hana looks to share coworking market with WeWork, Knotel
Commercial brokerage CBRE is launching a coworking subsidiary to provide flexible office space to large corporate clients, the firm announced this week. Hana is CBRE’s bet that landlords want coworking components in their buildings but not the hassle of managing them. CBRE plans to co-invest the cost of building out coworking spaces, managing them and taking a portion of the revenue, but not collecting rent. Hana will launch in early 2019 and is expected to first focus on the New York City market. [TRD]
Healthy Baby Boomers aren’t flocking to senior living facilities
Ambitious builders have added 84,727 senior living units since 2012, but healthier than expected Baby Boomers are not moving into senior housing as expected, the Wall Street Journal reports. Such an oversupply means occupancy rates are at the lowest level since 2011. In the second and third quarters of this year, rates were at 87.9 percent. Experts expect Boomers, who are generally healthier than previous generations, to begin moving into these facilities later in life — at around 80. “What’s happened to the industry is that everyone sees the demand, and they can’t quite figure out exactly when to time it,” said Lucinda Baier, chief executive officer at Brookdale Senior Living, told the Journal. [TRD]
Mattress Firm makes lease reduction demand to its landlords
Mattress Firm’s CEO Steve Stagner told the company’s landlords across the country that they can slash rents or find new tenants, according to Bisnow. The Houston-based chain, which recently filed for bankruptcy, issued the demand to landlords at hundreds of stores throughout the country on a conference call earlier this month. Some landlords have filed legal complaints, while others told Bisnow they would seek new tenants. [TRD]
StreetEasy’s Susan Daimler to run Zillow’s national Premier Agent program
Currently the general manager of Zillow’s New York City brand StreetEasy, Susan Daimler is set to head up the firm’s national Premier Agent program. Daimler will be in a “key strategic role” as senior vice president of Premier Agent, the firm stated in the announcement. Last year, Premier Agent generated $761.1 million of Zillow Group’s $1.1 billion in revenue. [TRD]
Slate, Carlyle launch new $750M lending firm
Slate Property Group and The Carlyle Group are launching SCALE Lending, a $750 million partnership to provide bridge and transitional loans to real estate sponsors and operators. The new lending company will focus on the on the New York City market. “The deals we’re going to be really focusing on are going to be land loans, ground-up construction — both rental and condo — and condo inventory loans,” said Slate co-founder Martin Nussbaum. “I think that’s the space that we think we can add the most value.” [TRD]
MAJOR MARKET HIGHLIGHTS
Chinese firm takes 70% stake in $253M NYC condo project
An unnamed Chinese company has bought a 70 percent share in a 182-unit condo development in New York’s Long Island City. The Chinese firm operating through the entity Star Tower Condominium LLC, paid $67.4 million to Anthony Hu’s Eastern Star Development, according to state and property records. The property is projected to have a $253.3 million sellout. [TRD]
Home of WeWork’s Chicago flagship on the market for $130M
Alter Group is looking to sell its River North office building for $130 million. Listing the property is part of the Alter Group’s initiative, announced in 2014, to sell off its 3 million-square-foot national portfolio. The seven-story, 385,000-square-foot building is anchored by WeWork’s 175,000-square-foot flagship Chicago location. [TRD]
Industry spends big to stop California proposition allowing local rent control laws
Landlords and investors have shelled out millions of dollars to defeat Proposition 10 in California, which would repeal a state law that prohibits local rent control. Almost half of the money raised to fight Proposition 10 has come from eight of the state’s top apartment owners and their businesses, the LA Times found. Overall spending has topped $100 million, with opponents outspending supporters by a margin of 3 to 1. [TRD]
Report finds foreign investment is dropping in Florida’s residential real estate
Foreign investment in residential real estate in Florida is waning, according to a report from the Florida Realtors. Between August 2017 and July 2018, foreign buyers spent $22.9 billion in Florida, purchasing 52,000 properties. That’s a 15 percent drop from the 12-month period before that. Experts say that the decrease is due to weakening foreign currencies, high exchange rates and increasing property values. [TRD]
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