October 25, 2014

Market Trend: Los Angeles Retail Vacancy Decreases to 4.8%


The Los Angeles retail market experienced a slight improvement in market conditions in the third quarter 2014.

The vacancy rate went from 5.0% in the previous quarter to 4.8% in the current quarter. Net absorption was positive 706,774 square feet, and vacant sublease space increased only slightly by 1,970 square feet. In second quarter 2014, net absorption was positive 389,145 square feet.

Tenants moving into large blocks of space in 2014 include: Target moving into 137,920 square feet at 30740 Russell Ranch Rd; Goodwill moving into 102,249 square feet at 3150 San Fernando Rd; and Food 4 Less moving into 78,962 square feet at 11507 S. Western Ave.

Quoted rental rates increased from second quarter 2014 levels, ending at $24.58 per square foot per year.

A total of 23 retail buildings with 338,209 square feet of retail space were delivered to the market in the quarter, with 1,823,820 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Retail vacancy rate, which decreased to 6.3% from the previous quarter, with net absorption positive 26.48 million square feet in the third quarter. Average rental rates increased to $14.84, and 542 retail buildings delivered to the market totaling more than 13.9 million square feet.

The information in this news report is based on CoStar’s Third Quarter 2014 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.

Article source: http://www.costar.com/News/Article/Market-Trend-Los-Angeles-Retail-Vacancy-Decreases-to-48/165385?ref=/News/Article/Market-Trend-Los-Angeles-Retail-Vacancy-Decreases-to-48/165385&src=rss

CoStar’s People of Note (Oct. 19


It’s time to update those contact managers with CoStar’s People of Note, reporting news on significant new CRE hires and promotions. This week’s issue includes the following markets: Greenville / Spartanburg, Cleveland / Northern Ohio, San Diego, South Florida, Atlanta, Washington DC, Northern New Jersey, Philadelphia, and Chicago.

GREENVILLE / SPARTANBURG

Colliers Taps Pollard as Vice Chair, Retail Services USA

By Justin Sumner

Colliers International has named Rox Pollard as its Vice Chair, Retail Services | USA. Rox most recently served on Colliers’ USA Retail Steering Committee as its Eastern Region Chairman.

Rox, a vice president and director of retail services in the firm’s Columbia, SC office, specializes in the sale, leasing, development and consultation of retail properties while managing the retail services team located in three offices across the state.

“This is an outstanding honor for Rox and for all of Colliers in South Carolina,” said David Lockwood, SIOR, executive vice president, Colliers International | South Carolina. “Rox has clearly demonstrated his leadership in the Colliers Retail Team but also in the retail industry as a whole. This national exposure is well deserving for Rox.”


CoStar’s People of Note is published each Friday covering the latest commercial real estate executive level promotions and new hires. Click on the headline of each article to jump to full coverage. Follow the news on Twitter @TheCoStarGroup and @JSumner2.
Send your new executive hires and promotion announcements to news@costar.com.


CLEVELAND / NORTHERN OHIO

Ostendorf-Morris Names New SVP of Corp Svcs Grp

By Daniel Zaatar

Anthony J. Delguyd has joined Ostendorf-Morris as senior vice president of the firm’s corporate services group.

Delguyd will be responsible for enhancing operational efficiencies, initiating transaction management, cultivating business development and overseeing portfolio optimization.

A commercial real estate veteran, Delguyd joins Ostendorf-Morris from Pep Boys, where he served as the auto chain’s director of real estate for two years. Prior to Pep Boys, he was the director of real estate at Goodyear Tire Rubber Co. for 23 years. He is a member of ICSC and serves on the advisory board of Chicago Title Insurance Co.


SAN DIEGO

CBRE Welcomes King in San Diego Office

By Adrian Robles

Paul King has joined CBRE in San Diego as a managing director of asset services. At CBRE, King will supervise the management of more than 15 million square feet under the company’s asset services division.

King brings 25 years of real estate experience, during which he contributed to more than $700 million of construction management projects, $1.8 billion in completed lease transactions, and was directly responsible for a regional net operating income performance of over $150 million in annual revenues. King previously served as a national leasing manager at GE Capital.

King is a member of ULI and NAIOP in both the San Diego and Los Angeles chapters.


SOUTH FLORIDA

JLL Promotes Titcomb

By Justin Sumner

JLL has promoted Brady Titcomb to vice president and associate director of brokerage in the firm’s expanding Fort Lauderdale, FL office. In his new role, Titcomb will partner with Alice Lucia Jackson, senior vice president to focus on the continued growth of the office’s landlord leasing and brokerage business lines and Broward and Palm Beach Counties.

Titcomb most recently served as vice president and as research director since 2010. In this dual role he led JLL’s Florida research division while helping create and run the firm’s national multifamily research platform in addition to implementing research-based strategies and products for the firm’s members, clients, and the broader real estate and business communities.

Prior to joining JLL, Titcomb served as an account executive for CoStar Group, and before that he worked at Marcus Millichap (MMREIS) and New York-based Cendant – Citi Habitats, Inc. He is a licensed real estate sales associate in Florida, and is a member of NAIP and SFOBA.


ATLANTA

Hall Joins CBRE

By Carr Churchill

CBRE named Craig Hall as vice president of the firm’s capital markets business lending team, a unit that specializes in owner-occupied and private capital real estate space.

In his new position, Hall will help originate small balance owner occupied loans under the SBA’s (7a) and 504 programs. He will be based in Atlanta and cover the Southeastern territory, primarily focusing on Atlanta, Charlotte, NC, Nashville, TN and Greenville, SC markets.

Hall was previously at ReadyCap Commercial, where he was responsible for small balance multifamily, retail, office and industrial real estate transactions. He has also worked at GE Capital Real Estate and Fidelity Bank.


WASHINGTON DC

Serten Advisors Appoints VP

By Bryce Meyers

Vienna, VA-based Serten Advisors, a commercial real estate advisory firm and member of API Global, recently named Renee Weir as vice president.

Weir brings more than 25 years of marketing, business development, advisory and commercial real estate experience to the firm. Most recently, she oversaw brand marketing, generated new business, and cultivated client relationships as a vice president with Cassidy Turley. Past clientele include Womble Carlyle, Exxon Mobil, Innovative Management Technology Approaches, Native American Contractors Association, and Peabody Office. Weir holds a degree in economics from Cornell.

“Renee’s expertise will help broaden Serten’s intellectual capital and will benefit our clients in both the Washington, DC metro area and nationwide. Her business background and relationships in the business community bring an entirely new complement to our team of advisors and remind us once again that reputation and relationships are everything in our business,” said Steven Hubberman, managing principal of Serten Advisors.


NORTHERN NEW JERSEY

Weichert Commercial Expands Office With 10 New Associates

By Kevin J. Poplaski

John G. Udell, president of Weichert Commercial announced the addition of ten real estate professionals to the corporate headquarters as well as the Central New Jersey and Pennsylvania offices.

Joining Weichert Commercial are vice presidents Raymond Marzorati and Steven Tenenbaum, Pablo ‘Paul’ Albilal-Elhassan joins the firm as vice president of investments, and sales associates Jennifer Corrao, Claudia Kriener, Marc Vogel, Paul Jarrett, Joseph Sedler, Lainie S. Walter and Ross M. David. All ten professionals bring valued industry and professional experience that will further enhance Weichert Commercial’s platform of services.

“We are very pleased to welcome this group of real estate professionals as we continue to expand our Weichert Commercial team,” stated Udell. “Their professional experience and market knowledge will continue to strengthen our commitment towards providing outstanding service to our clients.”


PHILADELPHIA

Marcus Millichap Promotes Shover to AVP

By Justin Sumner

Marcus Millichap (NYSE: MMI) has promoted Michael Shover to associate vice president investments. Shover also serves as director of the firm’s National Retail Group (NRG).

Shover most recently served as a senior associate in the firm’s Conshohocken, PA office. He began his career at Marcus Millichap as an associate in June 2009, where he has specialized in single- and multi-tenant investments and arranged the sale of retail assets across the Mid-Atlantic region. Shover holds a bachelor’s in business administration from Bucknell University.

“This achievement represents Michael’s success in developing strong client relationships with the private and institutional investors we serve,” says Bryn Merrey, first vice president and regional manager of Marcus Millichap’s Philadelphia office.


CHICAGO

Mead Joins Sperry Van Ness

By Eric Mitchell

James Mead joined Sperry Van Ness as senior advisor. In his new position, he will be focusing on leasing and selling investment properties throughout the Chicago area.

Previously, Mead served as a partner and executive vice president at CTK Chicago Partners – formerly GVA Williams. He has also served as vice president in the office properties group of NAI Hiffman and worked as the exclusive landlord representative for Marex Properties, the owner of the Jewelers Building at 35 E. Wacker Dr., and Helmsley Spear, proprietor of five downtown Chicago office buildings including 360 N. Michigan Ave.

Over the course of his 25-year career, Mead has brokered more than 500 transactions worth a combined $300 million, including representing Accretive Health in a 10-year, 50,000-square-foot lease at 231 S. LaSalle St. and representing Gallagher Bassett Services in tenant office lease negotiations for 10 years. Mead is a CCIM certified member and a licensed broker in Illinois.


SAN DIEGO

CBRE Hires Leading Financial Analyst

By Jody Thompson

Greg Mikrut has joined CBRE’s San Diego, CA office as senior associate director with the firm’s financial consulting group. In his new role, Mikrut will develop strategies and financial analysis to support client’s decision making.

Formerly at BioMed Realty Trust, Mikrut served as primary analyst for numerous markets including 36 assets totaling approximately 7.3 million rentable square feet of office and laboratory space. Prior to working at BioMed Realty, Mikrut worked for Savills Studley. He holds a bachelor’s degree in communication studies and finance from Vanderbilt University.

“[Mikrut] brings over nine years of real estate experience and will further enhance our ability to provide our clients with sophisticated, industry-leading insight and guidance,” said John Frager, executive managing director of CBRE’s San Diego office.


Send your new executive hires and promotion announcements to news@costar.com.
Follow the news on Twitter @TheCoStarGroup and @JSumner2.
Check out last week’s edition of People of Note.


Article source: http://www.costar.com/News/Article/CoStars-People-of-Note-Oct-19-25/165377?ref=/News/Article/CoStars-People-of-Note-Oct-19-25/165377&src=rss

‘New Urbanism’ Hits the Suburbs

Long Island, whose neat rows of single-family homes came to symbolize the American dream in postwar suburbia, is showing signs of change.

For 36 years, Marlene Leichter and her husband, Morty, have lived in the same sprawling three-level house in Great Neck, but now they have had enough of traditional suburban life.

So they put their…

Article source: http://online.wsj.com/articles/new-urbanism-hits-the-suburbs-1414112544?mod=residential_real_estate

In Rural Idaho, a Modern Home

Just under 6,000-square-feet, Lauri and Doug Siddoway’s home on a 290-acre barley farm in rural Squirrel, Idaho is pictured. Originally, the couple asked for a traditional, Tuscan-style home, but their architect, Mitch Blake of Jackson, Wyo.-based Ward+Blake Architects, thought a modern look would gel better with the property’s wide open farmland and mountain views.

The home is divided into two pavilions, connected by an outdoor walkway under Cortan steel and sod roofs. The Siddoways purchased their 290-acre property from a local farmer in 2000. A few years later, ready to build their home, they contacted Mr. Blake. The house took about 16 months and about $283 per square foot to build, and was completed in 2009.

The guest wing is shown. About 1,510 square feet, it has a small living room with a double sided fireplace, which overlooks the deck.

Big glass windows reveal gold-and-green grain fields out back with the mountains in the distance. The floors are concrete; the vaulted ceilings of reclaimed wood have exposed structural beams.

One of the home’s most striking visual elements is a thick rammed-earth wall that stretches the entire length of the home. It’s made of packed layers of soil, water and waste product from gravel and concrete plants. Subtle lines indicate where the mixture has been tamped down. This is a detail.

Despite the nods to traditional farmhouse vernacular and the landscape, the house certainly doesn’t look like the homes on other farms in the area, many of which are typical two-story, pitched-roof structures. The Siddoways said neighbors sometimes jokingly refer to their home to a visitor’s center. ‘It’s definitely not what they’re used to,’ said Mr. Blake.

Here is the open kitchen. Squirrel is a remote farming area that’s about a 20 to 30-minute drive from a few small towns with grocery stores, churches and some shopping.

The guest house has three bedrooms, including this ‘bunk’ room with four built-in twin beds.

Doug and Lauri Siddoway are shown on the patio with their Great Pyrenees. Outside are weathered-looking cedar beams and steel columns girded by split Engelmann spruce logs. ‘[W]e’ll see maybe two to three cars a day go by,’ Mr. Siddoway said.

Here is a view of the Tetons from the home. The property is not far from Yellowstone Park, as well.

Mr. Siddoway, a 63-year-old attorney, said he and his wife were drawn to the area both for its beauty and proximity to relatives. He grew up on a farm in the area and his nephew, who lives nearby farms their land. During the summer the couple says they fly fish, bike, hike and camp in the area.

Mesa Falls, on the Henrys Fork of the Snake River, near the home. To get to Squirrel, the couple either drives about eight hours from their home in Spokane, Wash. over several mountain passes, which can prove difficult in wintertime, or they fly. The nearest airports are about an hour and a half drive from the property, in either Idaho Falls or Jackson, Wyo.

The road leading to the home. With the nearest neighbor about a mile and a quarter away, just beyond a patch of cottonwood trees, Mr. Siddoway said they get plenty of peace and quiet.

When Lauri and

Doug Siddoway

were planning to build a home on their 290-acre barley farm in rural Squirrel, Idaho, they asked their architect to design them something in a traditional, Tuscan-style akin to their Italian-revival home in Spokane, Wash.

What they got is anything but Tuscan. Or traditional.

Just under 6,000-square-feet, the modern four-bedroom, 3½-bathroom home is divided into two pavilions connected by a covered outdoor walkway under the home’s Corten steel and sod roofs. Outside are weathered-looking cedar beams and steel columns girded by split Engelmann spruce logs.

The guest wing, about 1,510 square feet, has a small living room with another two-sided fireplace which overlooks the deck.
ENLARGE

Inside, big glass windows reveal jagged mountain peaks and gold-and- green grain fields out back. The floors are concrete; the vaulted ceilings of reclaimed wood have exposed structural beams. Standing on the back patio, Ms. Siddoway, a 60-year-old appellate court judge, said matter-of-factly: “We didn’t envision this.”

The couple’s architect,

Mitch Blake

of Jackson, Wyo.-based Ward + Blake Architects, said the Tuscan traditional idea “wasn’t gelling” with the property’s wide-open farmland and Western scenery. Luckily, the Siddoways were willing to pivot. “We love it,” said Ms. Siddoway. “Thank goodness he didn’t listen to us.”

In the 3,895-square-foot main wing, there is a living room and dining room, separated by a two-sided stone fireplace. Flanking the fireplace on both sides are counter-weighted metal pulleys that can be used to open its glass doors. A large open kitchen opens onto a den that holds the home’s only television. The master suite has big mountain views and leads to an outdoor shower tucked inside a rammed-earth alcove.

The guest wing, about 1,510 square feet, has a small living room with another two-sided fireplace, which overlooks the deck. There are also two bedrooms and a “bunk” room with four built-in blonde maple wood single beds alongside the walls with drawers underneath. The couple’s three grown sons often stay there when they visit.

One of the home’s most striking visual elements is a thick rammed-earth wall that stretches the entire length of the house. It is made of packed layers of soil, cement, water and waste product from gravel and concrete plants. Subtle lines indicate where the mixture has been tamped down.

Mr. Blake said the earth wall made sense, partly because it offers exceptional seismic stability. The property is roughly 10 miles southwest from Yellowstone National Park, an area that averages about 1,600 earthquakes a year, according to the Yellowstone Park Foundation. Though most of them measure less than 3.0 in magnitude, structures in the area must be built to withstand frequent shakes if they’re going to last, said Mr. Blake.

The wall also helps regulate the home’s temperature, storing warm or cool energy in its thick core, and the home uses geothermal heating in the winter. Though Idaho can get quite warm on sunny summer days, and the home has vents for air conditioning, the Siddoways said they never installed it.

Squirrel is a remote farming area that is about a 20 to 30-minute drive from a few small towns with grocery stores, churches and some shopping. To get here, the couple either drives about eight hours from their home in Spokane over several mountain passes, which can prove difficult in the winter, or they fly. The nearest airports are about an hour and a half drive from the property, in Idaho Falls and Jackson.

Doug and Lauri Siddoway with Great Pyrenees Izarra
ENLARGE

The Siddoways said the effort is worth it. They visit about once a month, and sometimes their sons use the place as well. With the nearest neighbor about a mile and a quarter away, just beyond past a patch of cottonwood trees, Mr. Siddoway said they get plenty of peace and quiet. “This is nice because we’ll see maybe two to three cars a day go by,” in addition to a few farm vehicles, he said as Izarra, his Great Pyrenees, napped nearby on the patio.

Mr. Siddoway, a 63-year-old attorney, said he and his wife were drawn to the area both for its beauty and its proximity to relatives. He grew up on a farm in the area and his nephew, who lives nearby, farms their land. During the summer the couple said they fly fish, bike, hike and camp in the area. In the winter, Mr. Siddoway volunteers regularly for the ski patrol at Grand Targhee, about 45 minutes to the southeast.

The Siddoways purchased their 300-acre property from a local farmer in 2000. A few years later, ready to build their home, they contacted Mr. Blake. Mr. Siddoway and Mr. Blake realized they attended the same small-town high school not far from the property, which seemed fortuitous. The house took about 16 months and about $283 a square foot to build, and was completed in 2009. A 79-acre ranch in nearby Ashton with a three-bedroom home with upscale fixtures is currently on the market for $1.35 million.

Despite the nods to traditional farmhouse vernacular and the landscape, the house certainly doesn’t look like the homes on other farms in the area. The Siddoways said neighbors sometimes jokingly compare their home to a visitor’s center. “This is definitely not what they’re used to,” said Mr. Blake.

Article source: http://online.wsj.com/articles/rural-squirrel-idahos-modern-home-1414080259?mod=residential_real_estate

A Big Hamptons Spread Quickly Sells

The estate of the late cable and telecommunications entrepreneur Richard Treibick had listed the Sagaponack property, which totals about 31 acres, as two separate parcels for a total of $34.99 million in August.
ENLARGE

An oceanfront spread in the Hamptons listed for nearly $35 million has sold two months after going on the market.

The estate of the late cable and telecommunications entrepreneur

Richard Treibick

had listed the Sagaponack property, which totals about 31 acres, as two separate parcels for a total of $34.99 million in August. Both properties sold to the same buyer in a deal that closed last week, said Mr. Treibick’s son-in-law,

Gordon Caplan.

He declined to identify the buyer or divulge the sale price.

Listing agent

Gary DePersia

of the Corcoran Group said the property went into contract about a month after being listed, in “one of the fastest sales of a property in this price range that I’ve seen,” he said.

There were multiple bidders on the property, Mr. DePersia added, noting that the Hamptons market has been very active this year.

Article source: http://online.wsj.com/articles/a-big-sagaponack-estate-sells-fast-1414086394?mod=residential_real_estate

MBS MID-DAY: Volatility Within a Range, but Little Change

If today’s bond market movements were a ball game, it would be the kind you like to see, with numerous lead changes, no runaway victory, and the home team leading going into the half. 

Bonds started out in stronger territory overnight as the NYC Ebola case was confirmed and global markets sympathized with the risk-off bid (i.e. stocks sold, bonds bought).  The morning’s most significant event hit just after US markets opened when sources said that 25 banks were set to fail the European Central Bank’s stress test.  Official results are expected on Sunday.

Bond markets initially rallied on the news, but it was short-lived.  While the news was big, it wasn’t altogether unexpected.  That brief, initial rally set the day’s floor under bond yields and we’ve been weaker ever since.  Fortunately, it started us off from a strong enough point to remain in positive territory currently. 

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/401162.aspx

MBS RECAP: Bond Markets Coast Out Uneventfully After Morning Volatility

Earlier today, competing short term trends and considerations made for several salient swings between gains and losses.  While MBS and Treasuries never dipped meaningfully into negative territory on the day, they quickly gave up some fairly strong gains on at least 2 separate occasions.  On top of that, the overnight session began with a swift move right out of the gate.  Taken together, there was simply a good amount of movement and “lead changes.”

Around noon (just after the second bounce off the day’s weakest levels), I put an overlay on the Treasury chart showing a potential consolidation into the close.  The trendlines ran through 2.28 on the high end and 2.26 on the low end, which is “the gap” that we’ve been paying so much attention to this week. 

2014-10-24 db1

This is how things happen sometimes.  Crossing over a significant technical level might end up acting as a major cue for movement, or it can simply be the first step in an orbital consolidation (think of a tether ball getting closer and closer to the pole).  Rather than act as a gateway to the next big move, “the gap” at 2.26-2.28 has been a tether-ball pole for yields. 

This is actually fairly forgivable considering the much more significant fundamental events hitting the tape next week.  These start as early as Sunday with the official results of the European bank stress tests that moved markets a bit this morning.

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/401267.aspx

Mortgage Rates Mildly Lower; Volatile Week Ahead

Mortgage rates caught a break today and were able to ease just slightly lower heading into the weekend.  This is somewhat refreshing because yesterday’s bigger move higher was the kind of thing that historically results in further upward pressure.   The gains weren’t quite enough to get the average top tier rate quote back into the 3’s for conforming, 30yr fixed loans.  3.875% and 3.75% remain viable for some borrowers looking to pay more money upfront in exchange for a lower monthly payment.  In general though, 4.0% is the most prevalent quote today.

As it stands, it looks like rates are finding some equilibrium heading into a series of significant events next week. The biggest potential for movement will be mid-week when the Fed likely announces an end to QE3, the 3rd round of quantitative easing, widely credited with helping rates reach their all time lows.

Of course market participants are well aware of this probability and began adjusting for it as far back as last year’s “taper tantrum” (when near record-low rates moved higher at one of the fastest paces ever recorded).  Even so, there are past examples of markets being well aware of impending Fed news and still undergoing a volatile reaction when it finally comes out.  While we may know what the Fed will do with a high degree of confidence, the market reaction is a never a guarantee.

 

Loan Originator Perspective

“I’ve favored locking for the last week, and today is the first day I’m
getting the bug to float. Why? If, IF, we are still destined toward
lower rates in the coming months, I think we’ve just reached the high
side of the range and the next move will be lower. This move higher was
nicer if our long term hope of lower rates is to be achieved.
Remember, I said IF before, so if you decide to float, be ready to lock
at the first significant move higher.” -Brent Borcherding, brentborcherding.com

“Certainly feels like locking loans today would be a wise choice heading
into next weeks potential game changing volatility. We are still in the
range that warrants floating, and below specific pivot points that can
trigger aggressive upward moves in rates, but I still think we are in
the game. I am locking loans closing within a week, and considering to
lock loans today for loans closing within 15 days only to avert any knee
jerk movement next week that cannot be recouped in time for closing. ” -Constantine Floropoulos, Quontic Bank

“Rates have been slowly drifting higher this week but we are still below a
key level at 2.28 on the 10 year note. Helping yields to stay below
that key level was news yesterday’s of a doctor in New York with ebola.
What makes this much more scarier than the news a couple weeks ago
from Dallas, is New York is one of the most populous areas in the world.
If we get any news of a 2nd person with ebola in New York, rates will
most likely move lower. That said, i would float over the weekend and
evaluate pricing on Monday morning. But as always, if you are happy with
the terms of your current offer, go ahead and lock as that removes all
risk. Only those who can afford to be wrong should risk floating.” -Victor Burek, Open Mortgage

“Next week is setting up to be a potentially volatile period in mortgage
rates with numerous imporant economic data releases and of course an
important meeting of the Fed. It is widely expected the Fed will
conclude it’s bond purchase program but we’ll also be looking for hints
of any changes in the statement to guide us going forward. I am
inclined to lock in rates now and especially those closing within 15
days. Floating longer lock periods seems risky to me but if you’re
sharply tuned in to the markets and your loan officer you may be able to
be flexible. Risk abounds, however. ” -Hugh W. Page, Mortgage Banker, Seacoast National Bank

 

Today’s Best-Execution Rates

  • 30YR FIXED - 4.0
  • FHA/VA – 3.5
  • 15 YEAR FIXED –  3.25
  • 5 YEAR ARMS –  3.0 – 3.50% depending on the lender

Ongoing Lock/Float Considerations

  • The hallmark of 2014 has been a narrow range in rates.  Too many market participants bet on rates going higher in 2014, and markets punished that imbalance with a paradoxical move lower.

  • European markets helped that process along and continue to play a prominent role in keeping US rates lower than they otherwise might be.  
  • For most of the Summer and early Fall months, rates held a narrow range of 4.125% -4.25% (essentially where the 2014 rate recovery has bottomed out) and finally broke to a 3.875%-4.0% range in mid-October.  It’s too soon to tell if this is a brief window of opportunity or the continuation of 2014’s very gradual improvements.

  • As always, please keep in mind that the rates discussed generally refer to what we’ve termedbest-execution(that is, the most frequently quoted, conforming, 30yr fixed rate for top tier borrowers, based not only on the outright price, but also ‘bang-for-the-buck.’  Generally speaking, our best-execution rate tends to connote no origination or discount points–though this can vary–and tends to predict Freddie Mac’s weekly survey with high accuracy.  It’s safe to assume that our best-ex rate is the more timely and accurate of the two due to Freddie’s once-a-week polling method). 

Article source: http://www.mortgagenewsdaily.com/consumer_rates/401276.aspx

Donna Karan Lists in Turks and Caicos for $39 Million

Donna Karan is selling a portion of her longtime family retreat on Parrot Cay in the Turks and Caicos Islands for $39 million.
ENLARGE

Fashion designer

Donna Karan

is selling a portion of her longtime family retreat on Parrot Cay in the Turks and Caicos Islands for $39 million, adding to the number of properties to come to market on the small island recently.

Ms. Karan is selling 7 acres of the more-than 10-acre beachfront property, which she purchased in 2002, according to co-listing agent

Katherine Baryluk

of Regency, the exclusive affiliate of Christie’s International Real Estate for Turks and Caicos. Ms. Karan frequently vacations on the island, but is selling because the property is more space than she needs, according to a spokesperson.

The property for sale has two guest villas flanking a center dining pavilion. There are also three swimming pools, a yoga pavilion on the beach, a chef’s kitchen, staff quarters and other buildings.
ENLARGE

The property for sale has two guest villas flanking a center dining pavilion. There are also three swimming pools, a yoga pavilion on the beach, a chef’s kitchen, staff quarters and other buildings. Ms. Karan is keeping the portion of the property with the family home, a spa house and two swimming pools.

Each of the two-story guest villas is about 3,850 square feet, with four bedrooms, four bathrooms, a kitchen and a pool, Ms. Baryluk said. The dining pavilion, meant as “a family gathering place,” has seating for more than 20 people, she said.

Ms. Karan, who founded her eponymous company in 1984, played a large role in designing and furnishing the homes, which have African and Balinese influences, said Ms. Baryluk. In addition to custom-designed hardwood furniture, the home is filled with decorative carvings from her travels around the world. The property is being sold fully furnished.

Lately Parrot Cay has seen several big home listings: “Oliver’s Cove,” a roughly 6½-acre estate, was recently listed for $48 million. In late 2013 model

Christie Brinkley

listed her Parrot Cay home on 1.6 acres for $10.75 million, recently reducing the price to $9 million. The island is the site of the luxury resort Parrot Cay by COMO, and homeowners there have access to hotel amenities, such as room service and housekeeping.

Fashion designer Donna Karan is selling a portion of her longtime family retreat on Parrot Cay in the Turks and Caicos Islands for $39 million. The dining pavilion, shown, was intended as ‘a family gathering place’ with seating for more than 20 people, said co-listing agent Katherine Baryluk of Regency, the exclusive affiliate of Christie’s International Real Estate for Turks and Caicos.

Ms. Karan’s property is one of several high-profile properties on Parrot Cay to hit the market recently.

Ms. Karan is selling 7 acres of the more-than 10-acre beachfront property, which she purchased in 2002, according to Ms. Baryluk. Ms. Karan frequently vacations on the island, but is selling because the property is more space than she needs.

The property for sale includes two guest villas, each about 3,850 square feet, with four bedrooms and four bathrooms. It also includes three swimming pools, a yoga pavilion on the beach, a chef’s kitchen, staff quarters and other buildings. Ms. Karan is keeping the portion of the property with the family home, a spa house and two swimming pools.

A bathroom is shown.

Ms. Karan, who founded her eponymous company in 1984, played a large role in designing and furnishing the homes, which have African and Balinese influences, said Ms. Baryluk.

In addition to custom-designed hardwood furniture, the villas are filled with decorative carvings from Ms. Karan’s travels around the world. The property is being sold fully furnished.

The private island is the site of the luxury resort Parrot Cay by COMO, and homeowners there have access to hotel amenities, such as room service and housekeeping. Lately Parrot Cay has seen several big homes hit the market: ‘Oliver’s Cove,’ a roughly 6½-acre estate, was recently listed for $48 million. In late 2013 model Christie Brinkley listed her Parrot Cay home on 1.6 acres for $10.75 million, and recently reduced the price to $9 million.

Ms. Baryluk said the recent spate of pricey listings on Parrot Cay is a result of a recovering real estate market in the Turks and Caicos, which has prompted owners to list high-end homes.

Ms. Baryluk, who is listing the property with

Rick Moeser

of Christie’s, said the recent spate of pricey listings is a result of the recovery of the luxury home market in the Turks and Caicos. Many buyers come from the U.S., and the 2008 financial crisis “slowed down the market significantly,” she said. Since the middle of last year, however, “we’re seeing the luxury market skyrocket,” she said, which is prompting homeowners to list their properties.

Bernadette Hunt

of Turks and Caicos Property, who isn’t affiliated with the Donna Karan listing, said home sales above $10 million are a relatively new phenomenon for the Turks and Caicos. “We have not traditionally had a high-end product,” she said, noting that many wealthy vacationers “are still discovering it for the first time.”

Article source: http://online.wsj.com/articles/donna-karan-lists-in-turks-and-caicos-for-39-million-1414090649?mod=residential_real_estate

Business Pardners on the Mega-Ranch

D.R. Horton, one of the country’s largest home-building companies founded by Donald Horton, outbid Los Angeles Dodgers owner Bobby Patton for the 292,779-acre Great Western Ranch in New Mexico, pictured, closing in July for more than the asking price of $59 million. Above, two cowboys on the working ranch, which will remain active.

Another view of Great Western Ranch. In a statement from D.R. Horton, the company said the purchase of Great Western Ranch was a ‘long-term investment, with no immediate plans for development. It will remain an active ranch operation and be made available for use by our key employees.’

With 510,000 acres across six counties in Texas, Waggoner Ranch is one of the biggest ranches to ever go on the market. The heirs of Texas cattle baron W.T. Waggoner listed just a few weeks ago for $725 million.

Sam Middleton, a Lubbock, Texas-based ranch agent, and Bernie Uechtritz, a broker with Briggs Freeman Sotheby’s International, say that ‘hundreds’ of interested buyers around the world have called about the property.

Demand is particularly strong right now for mega ranches—those with over 25,000 deeded acres and often more than 100,000 total acres listed in the $10 million to $175 million range. These properties typically have cattle operations, as well as recreational assets such as hunting, fishing or hiking. Cattle are shown on Waggoner Ranch.

The landscape at Waggoner Ranch.

The compound of the ranch is shown.

Some listings include mineral rights in the sale, which offers potential revenue from oil, gas, uranium, coal or other resources. Here’s an oil pumpjack on Waggoner Ranch.

Desert prairie and Horseshoe Pond at Waggoner Ranch.

The 124,000-acre Broken O Ranch near Augusta, Mont., listed for $132.5 million, was purchased in 2012 by billionaire Stan Kroenke, who owns the St. Louis Rams and soccer’s Arsenal F.C.

Mr. Kroenke’s purchase elevated him to No. 8 on the 2013 list of largest landowners from No. 10 a year earlier, according to the Land Report. Mr. Kroenke didn’t respond to a request for comment.

The land includes a large agricultural operation.

A home on the ranch. The property is listed by the estate of William and Desiree Moore, the late co-founders of Kelly-Moore Paints.

Caleb Matott, a Texas-based ranch real-estate agent, sold the 35,000-acre Red Bluff Ranch, listed for $7 million, near Roswell, N.M., to D.R. Horton founder Don Horton and his wife, Martha, in August, according to public records.

Caleb Matott, a Texas-based ranch real-estate agent, sold the 35,000-acre Red Bluff Ranch, listed for $7 million, near Roswell, N.M., to D.R. Horton founder Don Horton and his wife, Martha, in August, according to public records.
Caleb Matott

In marketing the ranch, Mr. Matott stressed the legacy value of the property: ‘To stand on the same ground that John Chisum, John Tunstall, Billy the Kid, Pat Garrett and so many more have stood, makes a man walk with a little higher step in his stride.’

Bobby Patton paid more than the $10.9 million asking price for the 174,000-acre York Ranch in New Mexico and some other land holding. Mr. Patton says the money he paid over the asking price was for additional land that wasn’t originally included the listing.

A cowboy at work on York Ranch, which also generates revenue from elk, mule deer and pronghorn antelope hunting.

IX Ranch in Big Sandy, Mont., is listed for $64.5 million. This professionally managed operation runs a cattle herd of 4,300. The property has accommodations for a full crew, as well as comfortable quarters for guests. In addition to the cattle operations, IX Ranch has huntable populations of elk, mule deer, whitetail deer, antelope, mountain lion and five species of upland birds.

It was a showdown in New Mexico earlier this year, as two billionaires, both from Fort Worth, Texas, battled it out to buy two enormous cattle ranches.

When the dust cleared, oil, gas and real-estate investor

Bobby Patton,

co-owner of the Los Angeles Dodgers, had won the 174,000-acre York Ranch, spending more than the $10.9 million asking price and outmaneuvering


D.R. Horton
,

one of the country’s largest home-building companies. In a separate deal, D.R. Horton, founded by

Donald Horton,

outbid Mr. Patton for the nearby 292,779-acre Great Western Ranch, closing in July for around the asking price of $59 million.

The market for large ranches is on the rebound. The recession and droughts dampened demand for wide swaths of ranch land in recent years. Dry conditions forced ranchers to sell off their herds, creating a glut that drove down cattle prices. Now, with easing drought conditions across much of the country and higher cattle prices, ranches that had been sitting on the market have started to sell. A boom in the oil and gas industry and current 2% interest rates on ranch mortgages are also fueling big land grabs.

Bobby Patton paid more than the $10.9 million asking price for the 174,000-acre York Ranch in New Mexico.
ENLARGE

“It’s the perfect storm,” says

Sam Middleton,

a Lubbock, Texas-based ranch agent who is representing Waggoner Ranch. With 510,000 acres across six counties in Texas, Waggoner Ranch is one of the largest ranches ever to go on the market. The heirs of Texas cattle baron W.T. Waggoner listed it just a few weeks ago for $725 million. Mr. Middleton and Briggs Freeman Sotheby’s International broker

Bernie Uechtritz

say “hundreds” of interested buyers have called about the property.

Demand is particularly strong right now for mega ranches—those with over 25,000 deeded acres and often more than 100,000 total acres listed in the $10 million to $175 million range. Deeded acres are more desirable because they’re owned outright; ranches may also include acreage leased from the state or federal government, which allows them to graze their cattle in exchange for a fee. These properties typically have cattle operations, as well as recreational assets such as hunting, fishing or hiking. Some listings include mineral rights in the sale, which offers potential revenue from oil, gas, uranium, coal or other resources.

Hall Hall, a ranch real-estate agency that listed both the York and Great Western ranches in New Mexico, says a substantial part of its $1 billion-plus in ranch sales since 2012 has come from these larger properties. The firm has sold seven ranches bigger than 25,000 deeded acres since 2011, three times the number it sold in the previous four years.

Waggoner Ranch was recently listed for $725 million. The property has 510,000 acres across six counties in Texas. Cowboys work the cattle operation.
ENLARGE

Buyers of these mega ranches are looking for income, such as a profitable livestock operation or fees from allowing wildlife-hunting, says

Jeff Buerger,

a Denver-based partner with Hall Hall. More important, they are looking for a safe, long-term investment. The value of U.S. pasture land normally grazed by livestock rose 11% in the fiscal year 2014, which ended in September, from a year earlier, after averaging about 5% yearly increases for the two years before that, according to the U.S. Department of Agriculture.

In a statement from D.R. Horton, the company said the purchase of Great Western Ranch was a “long-term investment, with no immediate plans for development. It will remain an active ranch operation and be made available for use by our key employees.”

Michael Hewatt,

a member of the D.R. Horton board, says the company will use it much like it does the two large ranches it owns in Texas: as a place to entertain brokers, bankers and other D.R. Horton vendors. “It’s a perk for the people we work with,” he says. He also says the ranch is a “good investment for the long term.” Mr. Horton has also personally purchased large parcels of ranch land in Texas and New Mexico, according to public records.

Mr. Patton is more likely to use York Ranch for entertaining than for raising cattle, says

Thomas G. Fitzgerald,

one of the sellers. Mr. Fitzgerald says the cash flow from the cattle was “insignificant” in comparison to the value of the land. There’s also some potential hunting revenue, from $25,000 to $40,000 a year. The ranch, which has elk, mule deer and pronghorn antelope, is allocated about 14 big-game tags—which signifies the number of animals that can be harvested. A three-bedroom, two-bathroom main house and a small airplane hangar with two landing strips came with the sale. It is very much a working ranch—it’s nothing fancy, says Mr. Fitzgerald. Mr. Patton declined to comment on his plans for the ranch.

A major ranch purchase also comes with bragging rights. Many of the bigger properties are known as “legacy” ranches in part because buyers want to stake their claim in history. These ranches stand out for their size, unusual location or a unique feature, says

Eric O’Keefe,

editor of the Land Report, which publishes an annual ranking of the largest 100 private landowners in the country. To make that list requires owning 100,000 deeded acres or more.

Billionaire

Stan Kroenke,

who owns the St. Louis Rams and soccer’s Arsenal F.C., bought a roughly 124,000-acre ranch in 2012 near Augusta, Mont., listed for $132.5 million by the estate of William and

Desiree Moore,

the late co-founders of Kelly-Moore Paints. Called the Broken O Ranch, Mr. Kroenke’s purchase elevated him on the Land Report’s list of largest landowners, where he currently holds the No. 9 spot. Mr. Kroenke didn’t respond to a request for comment.


Liberty Media

Chairman

John Malone

remains at the No. 1 spot on the Land Report’s 2014 list, with 2.2 million acres. Mr. Kroenke didn’t respond to a request for comment.

The 124,000-acre Broken O Ranch near Augusta, Mont., was listed for $132.5 million and purchased in 2012 by billionaire Stan Kroenke.
ENLARGE

Much of the action is in New Mexico. Unlike Texas and Colorado, the state still has quite a few very large properties that haven’t been broken apart. Real-estate agents estimate that New Mexico has about 30 ranches bigger than 100,000 acres of deeded land. Land prices are lower, too. New Mexico ranch land sells for $200 to $300 per acre, compared with as high as $1,000 an acre in Wyoming, Montana and elsewhere.

Ben Scott

of Dimmitt, Texas-based Scott Land Co. is representing a 109,000-acre Double V ranch near Roswell, N.M., listed for $26.2 million, or $240 an acre. Double V first went on the market in 2009 but didn’t sell. It was relisted in the spring of 2013 and is currently under contract.

Caleb Matott,

also a Texas-based ranch real-estate agent, in August sold the 35,000-acre Red Bluff Ranch, listed for $7 million, near Roswell, N.M. The buyers were Mr. Horton and his wife, Martha, personally—not by the company, according to public records. In marketing the ranch, Mr. Matott stressed the legacy value of the property: “To stand on the same ground that John Chisum, John Tunstall, Billy the Kid,

Pat Garrett

and so many more have stood, makes a man walk with a little higher step in his stride. To own a ranch of the grandeur makes a person part of history.”

Mr. Patton has another property in New Mexico: He and

Mark Walter,

the Chicago financier who is also a co-owner of the Dodgers, bought the 93,403-acre Double H ranch in west-central New Mexico last year through Double H Holdings LLC, which was used to buy the York ranch. The sale price isn’t public, but the Rocky Mountain Elk Foundation, a habitat-protection organization that owned the ranch, earned at least $30 million in the deal, according to

Blake Henning,

vice president of lands and conservation for the Rocky Mountain Elk Foundation.

Vast ranch holdings by a few individuals can cause deep resentment in the community, Mr. Henning says. Since private landowners either ban the public from hunting on the land or use outfitters to sell expensive hunts, local hunters often complain, he says.

That resentment won’t go away soon. Competition for recreational ranches, particularly by owners of thriving oil and gas companies, has picked up. There’s a shortage of supply now of the largest properties, which tend to go to the same small group of investors. “There’s a finite group of potential purchasers. We are all aware of them and what their appetites are,” says

Greg Fay,

founder of ranch brokerage firm Fay Ranches.

Corrections Amplifications

Great Western Ranch closed in July for around the asking price of $59 million. A previous version of the story said the ranch had sold for more than its asking price.

Article source: http://online.wsj.com/articles/billionaire-businessmen-buying-up-mega-ranches-1414076608?mod=residential_real_estate