commercial real estate - Liberty Realty Capital Group

Outlook for Seniors Housing Sector Remains Bullish

May 10, 2016 by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment

A growing development pipeline is not dampening the outlook for the seniors housing sector. Exclusive research conducted jointly by NREI and the National Investment Center for Seniors Housing & Care (NIC) shows that industry participants remain optimistic about improving fundamentals and investment opportunities in the sector.

The big story of late in the seniors housing sector has been the uptick in construction. In fact, the greatest number of units came online in the second quarter of this year compared to any other quarter in the past six years. As of the second quarter, construction versus inventory over the previous 12 months grew by 4.2 percent for seniors housing and 0.7 percent for nursing care, according to NIC data.

The majority of survey respondents (69 percent) anticipate more construction starts ahead in the coming 12 months, with 55 percent who predict that construction starts will increase somewhat and 14 percent who believe that construction starts will increase significantly

Yet the majority of respondents also believe that the new supply remains in check with demand. Nearly two-thirds of respondents do not think that the construction will result in overbuilding compared to the one-third who are concerned that overbuilding will occur. The upside of the story is that demand has been matching that new supply. “So the outlook is fairly bullish in that even though there is new product coming into the market, demand will be there to fully absorb that product,” says NIC Chief Economist Beth Mace.

Also, it is important to note that the new supply is not widespread, but rather limited to certain markets. NIC tracks seniors housing market data in 99 metropolitan areas. According to NIC, there are about 35 markets that represent about 80 percent of all the construction activity in the U.S. “So, in general, construction remains relatively concentrated,” says Mace.

About 20 percent of those metropolitan areas had no seniors housing construction during second quarter. However, at the other end of the spectrum, some markets saw a spike in activity at a rate of more than 15 percent in expansion relative to existing inventory, including San Antonio, Salt Lake City, Austin, Houston and Sacramento.

Find entire report here at National Real Estate Investor.

Inside Real Estate Crowdfunding

May 9, 2016 by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment

(Bloomberg)—Last month a Houston-area entrepreneur took to Craigslist with a surprising offer: For $50,000, the author of the listing would part with 5 percent of a real estate crowdfunding startup that he said would generate profit within three months. It doesn’t take a lawyer to suggest that Craigslist might be a bad place to source startup investments. (The author of the post wasn’t available for comment when this story went to press.) But the post illustrates what some real estate investors have noticed: These crowdfunding platforms are everywhere.

Inside the Real Estate Crowdfunding Land Rush

Investors used U.S. real estate crowdfunding platforms to pour $484 million into real estate projects last year, according to research published last month by the Cambridge Judge Business School. That’s more than three times the amount in 2014. Meanwhile, the U.S. has more than 125 real estate crowdfunding sites, according to Jason Best, a partner at Crowdfund Capital Advisors, who helped conceive the framework for crowdfunding. Less than three years after the JOBS Act made it legal to solicit investments online, real estate crowdfunding sites are all over the place.

Kind of.

The idea behind crowdfunding, whether for gadgets on Kickstarter or medical procedures on GoFundMe, is to create an online place where people who need money can meet people who have it. In the case of real estate, that often means house flippers who buy, renovate, and sell single-family homes seeking loans from accredited investors—roughly speaking, people who make enough money that they can afford to lose some of it. Some platforms also let investors buy equity stakes in real estate projects or fund loans for larger commercial projects. At least two companies, Washington-based Fundrise, and Atlanta-based GroundFloor, have created mechanisms to let anyone invest, not just rich people.

View entire article at National Real Estate Investor

To find out more about various real estate financing options contact Liberty

Changes in Mortgage Financing

May 8, 2016 by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment

There’s no doubt that now is an interesting time in the mortgage market for multifamily assets located in secondary locations, brimming with potential, promise and uncertainty. With cap rates compressed in the majority of primary markets located in coastal cities across the U.S., many of the industry’s largest players are turning to secondary markets for opportunities to purchase properties with higher growth, and therefore yield potential. This is driving aggressive capital activity in these markets and resulting in upward pressure on multifamily rental rates.

These trends are resulting in significant growth potential across properties located in secondary markets that have been tempered by other large-scale market factors in the GSE and commercial spaces as the industry determines its “new normal” and adapts to the changes being brought about by the global economy and investment activity.

The secondary mortgage market today—promise through the shifts

While the demand for mortgages against properties in secondary locations has experienced strong growth over the past four years, key aspects of its character are experiencing historic shifts. One of the best examples of this is within the central region of the country, in cities like Oklahoma City, Okla., and secondary markets throughout Texas, where the availability of capital has been very strong because of the growth of the oil and gas industries. As those employment markets have grown weaker as a result of falling oil and gas prices worldwide, the mortgage market outlook in those areas is also waning, requiring a more conservative investment approach and allowing other previously less attractive secondary markets to take center stage.

View entire article in National Real Estate Investor

To find out more about our multifamily financing visit Liberty Realty Capital here.

Net Lease Trends|www.libertyrealtycapital.com

May 6, 2016 by Randybaconin Real EstateLeave a Comment

Despite interest rates rising, if only modestly, and the current commercial real estate cycle seemingly plateauing, sentiment remains largely bullish for the net lease sector.

This is the consensus that comes through in the responses to NREI’s first survey of the net lease real estate sector, which was conducted in February.

Sentiments are rapidly shifting as to where we are in the commercial real estate cycle.

In our 2015 research surveys on various property types, the majority of respondents said we were in the recovery or expansion phase of the cycle. In this most recent survey, 42 percent of respondents say we’re now at the peak of the cycle. Only 36 percent believe we are in the expansion or recovery phase. That said, only four percent of respondents said we are in the recession phase and just seven percent said we are at the trough. An additional 11 percent said they were unsure what phase of the cycle we are currently in.

View entire article and download report at National Real Estate Investor.

Theme Park In A Box

May 5, 2016 by Randybaconin Real Estate, TechnologyLeave a Comment

New Tech Allows Shopping Centers To Install Turnkey Theme Park Experiences

Shoppers don’t often go to the mall to meet basic needs, they’re looking for something more—an experience they can share with family and friends. While most megamalls feature amusement park rides and indoor ski slopes, regional malls in small markets can’t justify the capital expenditure required for such attractions; however, that just got easier. New technologies are allowing centers to offer a theme park-like experience, but with turnkey convenience and the economies of scale that come with amortizing design costs across multiple locations. DreamWorks and Crayola, and companies like them, are producing new attractions that can fill excess space in a regional mall and draw in more visitors. Many shoppers that live in smaller metros do not have a quality theme park nearby, and now retailers and mall owners can turn centers into must-visit family destinations. Indeed, investors might consider buying and repositioning a B mall to become a themed destination.

Read more at: https://www.bisnow.com/national/news/retail/theme-park-in-a-box-new-tech-allows-shopping-centers-to-install-turnkey-theme-park-experiences-59574?utm_source=CopyShare&utm_medium=Browser

To discuss commercial mortgage financing contact Liberty Realty Capital here.

Sun Paper of China Picks Clark County for $1.3B Pulp Mill

April 26, 2016 by Randybaconin Real EstateLeave a Comment

Shandong Sun Paper Industry of China has selected Arkadelphia (Clark County) for a pulp mill plant that will cost between $1 billion and $1.3 billion to build, employ 250 people directly and have an economic impact of up to $100 million a year in the timberlands of south Arkansas.

Gov. Asa Hutchinson and the company’s founder and chairman, Hongxin Li, announced the finalization of a memorandum of understanding (PDF) during a news conference at the state Capitol.

Li said the bio-refinery would also result in 2,000 construction jobs over the two-and-a-half year construction period and about 1,000 indirect jobs.

When it begins operation, the plant will process at least 400 truckloads of small timber per day, which local officials said will generate at least $28 million a year in income for owners of timberland in the area. Sun Paper will provide a new market for small trees that must be thinned from around trees grown for lumber, Sen. Bruce Maloch, D-Magnolia, said.

The average salary for the 250 permanent workers at the Sun Paper plant will be $52,000, according to the memorandum. But locals think it could be as high as $60,000.

As many as 1,000 additional jobs in the timber industry are expected to be created in order to supply the mill.

The plant will begin construction in the Clark County Industrial Park, about five miles south of Arkadelphia near Gum Springs, in the first half of next year, with an eye toward a late 2019 production start.

It will be Sun Paper’s first plant in North America.

The company behind the long-planned paper plant had signed a letter of intent with the Republican governor and the Arkansas Economic Development Commission in November to study building the operation. The company considered sites in Camden and Crossett, as well as in Mississippi.

Read entire article in Arkansas Business Journal

To find out more about mortgage financing in Arkansas contact Liberty Realty Capital.