REBusinessOnline

Not All Bricks are Created Equal: How Functional Obsolescence Affects Property Taxes

Appraisal districts across Texas often use the cost approach to determine market value for property tax purposes. When valuing certain commercial properties via the cost approach, county appraisers frequently use cost-estimating services. These services enable appraisers to estimate the cost of the subject property’s improvements as if they were new, as well as determine the depreciation to apply to the subject. Cost estimators can be a great resource and valuation tool, but the appraiser …

Student Housing Pushes Out Affordable Living in College Towns

For Kyle Bach, CEO of The Annex Group LLC, there’s an affordable housing crisis taking place in large university towns. After extensive research in Bloomington, Indiana, and other similar towns, Bach found that over the past decade or so virtually all new multifamily product added to the market has been either student or luxury housing. This has priced out the workforce or affordable housing residents in those communities, he says. About a year-and-a-half ago, Bach’s Indianapolis-based …

Smart Seniors Housing Developers Know How to Utilize Market Studies, Say InterFace Panelists

CHICAGO — What are the limitations of a market study? In light of overbuilding concerns in some major metros, it’s a salient question. J.P. LoMonaco, president of Valuation & Information Group, moderated a panel discussion on the impact of market studies on new development during the InterFace Seniors Housing Midwest conference in June. The textbook definition of a market study is a comparison of supply and demand within a defined geographic area. It is a risk-assessment tool. …

The Counselors of Real Estate: Interest Rates and Economy Are Top Current Issues Affecting Real Estate

CHICAGO — The top two issues facing both residential and commercial real estate today are rising interest rates and the health of the general U.S. economy. That’s according to The Counselors of Real Estate, a Chicago-based consortium of high-profile property professionals, which has issued its annual list of the "Top Ten Issues Affecting Real Estate" for 2018 and 2019. Joseph Nahas Jr., the 2018 chair of The Counselors of Real Estate, made the announcement during the keynote address of …

InterFace Panel: Seniors Housing Lenders’ Scrutiny of Potential Deals Increases As Market Conditions Shift

Billy Meyer, managing director of Seattle-based Columbia Pacific Advisors, doesn’t mince words when talking about the bridge lender’s cautious approach to financing seniors housing product today. “We don’t underwrite hope as a strategy anymore. It’s just not a good execution strategy, we believe.” Against the backdrop of elevated levels of construction, rising interest rates and operational challenges in seniors housing, Columbia Pacific Advisors is scrutinizing …

Margaret Wylde’s Message to Seniors Housing: Do a Better Job of Understanding Customers

CHICAGO — There is one surefire way to make sales hum in seniors housing, says Margaret Wylde, an industry consultant who has conducted research in this niche property sector for 34 years. Know who your customer is, the product they want and how much they will pay to get what they want. “If you deliver what they actually want, they actually pay more and feel there is value for the dollar spent,” says Wylde, CEO of Oxford, Miss.-based ProMatura Group. The problem is the …

IPA Negotiates $61M Sale of Apartment Community in Metro Pittsburgh

WEXFORD, PENN. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has brokered the $61 million sale of Ascent Four Thirty, a 319-unit apartment community located in Wexford, roughly 15 miles north of Pittsburgh. A joint venture between Buligo Capital and Graycliff Capital acquired the asset from The NRP Group. Constructed in 2014, Ascent Four Thirty includes 17 three-story buildings and features a fitness center, resort-style swimming pool with a sundeck and a …

CBRE Arranges Sale of Nearly 100-Year-Old DuPont Country Club in Wilmington, Delaware

WILMINGTON, DEL. — CBRE has brokered the sale of DuPont Country Club, which occupies more than 500 acres in northern Delaware’s Brandywine Valley, for an undisclosed price. A local investment group that includes former DuPont executives Ben duPont and Don Wirth acquired the property from DowDuPont Co. Jeff Woolson, an executive vice president with CBRE who serves as the managing director of its Golf & Resort Group, handled the transaction, along with fellow professionals in CBRE’s …

Marcus & Millichap Brokers $45M Sale of Multifamily Portfolio in White Plains, New York

WHITE PLAINS, N.Y. — Marcus & Millichap has arranged the sale of a three-property, 104-unit multifamily portfolio in White Plains. A Westchester-based investor acquired the properties for $45 million, or $433,000 per unit. Victoria Fisher of Marcus & Millichap’s Westchester office represented the sellers, Lighthouse Living and The Daten Group, which originally developed the properties. All three communities were completed in 2015 in downtown White Plains. The portfolio includes The …

PCCP, Vision Real Estate Acquire 66-Acre Office Campus in Morris Plains, New Jersey

MORRIS PLAINS, N.J. — PCCP and Vision Real Estate Partners have acquired 185 and 201 Tabor Road in Morris Plains, about 20 miles west of Newark. The purchase price was not disclosed. The 66-acre office campus is comprised of two properties. Built in 2006, 185 Tabor Road is a 240,000-square-foot Class A office building. Constructed in phases from the 1950s to the 1990s, 201 Tabor Road is a series of Class B and C buildings totaling 644,000 square feet. The buyers plan to demolish the existing …

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