Tag: financing

Why Investors Like Carlyle Are Bullish on Trailer Parks

by Randybaconin Real EstateLeave a Comment on Why Investors Like Carlyle Are Bullish on Trailer Parks
Why Investors Like Carlyle Are Bullish on Trailer Parks
As investor demand for mobile home parks heats up, especially in areas with high housing demand fueled by tech company growth, Carlyle Group has made its second West Coast buy in the past two months. The equity giant closed on Sunnyvale’s Plaza Del Rey mobile home park last week. Carlyle is reported to have spent around $180M to purchase the 85-acre Plaza Del Rey, which is south of Tasman Drive and west of Lawrence Expressway. The company is among investors grabbing up mobile home rental communities across the nation. Carlyle purchased a majority interest in Pacific Skies Estates in Pacifica last month.

Read more at: https://www.bisnow.com/silicon-valley/news/neighborhood/carlyle-group-buys-second-bay-area-mobile-park-51626?utm_source=CopyShare&utm_medium=Browser

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Retailers Focus on Large Distribution Centers, Small Urban Warehouses for Fast Delivery

by Randybaconin Real EstateLeave a Comment on Retailers Focus on Large Distribution Centers, Small Urban Warehouses for Fast Delivery

As third quarter fundamentals continue to show improvement in the industrial sector, retailers are honing their distribution center strategy to meet current e-commerce demands.

Fundamentals for warehouse space have improved steadily over the past five years. The availability rate for industrial properties declined to 9.6 percent nationally in the third quarter, according to a report from commercial real estate services firm CBRE. Net demand for industrial space is on pace to exceed 200 million sq. ft. this year, and the vacancy rate dropped to 7.3 percent, almost a full percentage point down from the third quarter of 2014, according to report from Cushman & Wakefield. Demand for class-A logistics product will continue to fuel the rapid increase in construction through the rest of the year and into 2016, the Cushman report predicts.

Dwight Hotchkiss, president of brokerage services and the national director of industrial with real estate services firm Colliers, says warehouse demand from retailers has been one of the top reasons for the improved industrial picture. Increased online purchasing, driven by rising smartphone and tablet use, has corresponded with retailer demand for more distribution center space.

However, in the years immediately following the recession, retailers trying desperately to follow Amazon’s example engaged in a jumble of distribution center activity. Same-day delivery of products became the goal, but many companies weren’t sure how to achieve it, or whether they had the capital to invest in the infrastructure necessary to get products out that quickly. Omni-channeling entered the retail and industrial lexicon, as retail chains tried various storage use combinations to get products to customers.

Today, two strategies have emerged, Hotchkiss says: A focus on expanding the “first mile” of distribution, such as building massive distribution centers with advanced robotics and RFID technology, to the “last mile,” where e-commerce retailers are leasing up older or smaller warehouses near urban centers to shorten delivery routes.

“We have an expectation in this digital age of more instantaneous delivery,” he says. “A lot more people today are shopping this way. It takes away from the brick-and-mortar storefront and makes more demands on the warehouse space.”

Read entire article here in National Real Estate investor.

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The 11 Largest EB-5 Projects in America

by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment on The 11 Largest EB-5 Projects in America
The 11 Largest EB-5 Projects in America

The EB-5 Program allows for foreign investors to have stakes in US developments while also reducing costs for US developers and helping to create regional jobs. So far, $3.7B has streamed into major US cities, such as NYC and San Francisco. “EB-5 is an alternative source of funding for good projects and to create more jobs quicker,” US Immigration Fund VP Nicholas Mastroianni tells Bisnow. “It allows them to free up capital to do more projects.” Here are 11 of the largest and most important projects funded by EB-5 in the country.

Read more at: https://www.bisnow.com/national/news/commercial-real-estate/top-eb-5-projects-51067#0?utm_source=CopyShare&utm_medium=Browser

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Weyerhaeuser Launches $190M Dierks Sawmill Project

by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment on Weyerhaeuser Launches $190M Dierks Sawmill Project

One of the oldest sawmill operations in the state is undergoing a $190 million rebirth at its historic southwest Arkansas home. Site preparation for the new Weyerhaeuser complex at Dierks (Howard County) is winding down as the project shifts into a new phase of construction.

“We’re in the process of setting up the concrete batch plant,” said Scott Copas, president and CEO of Little Rock’s Baldwin & Shell Construction Co. “We’ll be starting work toward the end of the month.”

The new facility will have an annual production capacity of 387 million board feet, 25 percent more than current capabilities.

A joint venture of Baldwin & Shell and Bass Commercial Concrete LLC of Little Rock will oversee the production and pouring of 40,000 cubic yards of concrete during the next 16-18 months.

The new sawmill will adjoin the east side of the current location, where lumber production has occurred continuously for more than 100 years. The old facility will continue production on the west side of Holly Creek until the new one is fully operational.

Weyerhaeuser employs about 250 at the Dierks complex, which generates jobs for scores of loggers who cut and transport timber to supply the sawmill.

Four drying kilns will be the first piece of the new complex to come on line. The old facility will be demolished in phases, just as the new one is built in phases.

View entire article on Arkansas Business here.

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CMBS market steady despite widening spreads

by Randybaconin Commercial Mortgage LendingLeave a Comment on CMBS market steady despite widening spreads

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Despite concern from some – including the Federal Reserve – about widening spreads on investment-grade commercial mortgage-backed securities, metrics on CMBS issuances and falling delinquencies indicate a fairly sunny outlook.

In minutes detailing the Federal Reserve’s meeting last month – in which the Fed decided it would maintain interest rates near zero – the central bank noted that spreads on CMBS “widened noticeably in August, reportedly a result of heavy issuance as well as the increased volatility in broader financial markets.”

But analysts have pointed to metrics indicating such conditions as more of a temporary blip than a sign of a more pronounced slowdown in the controversial market.

“There has been a widening of spreads,” Sean Barrie of CMBS analytics firm Trepp told The Real Deal, citing “a lot of deals stacking the opposite ends of the spectrum” in terms of loan-to-value ratio. Barrie noted, however, that so far October has “seen spreads stay even keel,” which he characterized as a “good sign.”

– See more at: http://therealdeal.com/blog/2015/10/14/cmbs-market-steady-despite-widening-spreads/#sthash.wg7NTQOw.dpuf

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