When one of the largest owners and managers of real estate in the United States sold through a subsidiary $660 million of 10-year commercial mortgage backed securities (CMBS) at an initial interest rate of 4.17%, the real estate world was surprised. Read what Michael D. Fascitelli, President, Chief Executive Officer of Paramus, N. J. -based Vornado Realty Trust, and a trustee of ULI, has to say about this and the CMBS market.
Vornado Realty Trust, one of the largest owners and managers of real estate in the United States, received approval to construct a 68-story, 1,216-foot- (370-m) tall tower on 34th Street in New York City. Do Vornado and Michael D. Fascitelli, the company’s president and chief executive officer, know something about the real estate market that others don’t?
The real estate development sector in the U.S. Mid-Atlantic region is clearly bottoming out, says Henry Lucas, a founder and chief executive officer of Chantilly, Virginia-based ECS Group of Companies. “This year, we’re seeing mixed signals—some trends upward and some trends downward—which are classic ‘bottom-of-the-market-indicators,’” he says. Read about what trends he and others see.
In New York City’s South Bronx, a new 47-unit complex is proving that green and affordable can go together. Fox Point, developed by New York City–based Palladia Inc. and Enterprise Community Partners, is showing that environmentally sound homes for lower-income households can be a model for the future. Read how this project further dispels the perception that green is more expensive.
“Resilient” seems to be the best word to describe the U.S. Gulf Coast real estate industry. No matter what Texas, Louisiana, Mississippi, or Alabama experience— natural disasters, economic downturns, or other unforeseen problems—the region seems to bounce back stronger than ever.
After months of uncertainty, the California, Oregon, and Washington real estate industry appears to have stabilized. That’s good news. The even better news is that the real estate sector is starting to improve, albeit slowly.
With employment losses moderating and industrial productivity showing renewed life, the economies of California, Oregon, and Washington appear to have hit the trough and should reflect modest steps toward recovery through 2010, says Jeffrey Munger, director of research at Kennedy Associates Real Estate Counsel, LP. “California, Oregon, and Washington have each been significantly [affected] by the recession,” he says. “However, it should be noted that these states have a high concentration of industries such as health care, information technology, and business and professional services that are anticipated to lead the nation in growth over the next few years. M oreover, after a period of decline, strengthening trade volumes with now-expanding Asian economies will serve to provide a lift to vital West Coast ports over the short term.”
Atlantic Wharf, a mixed-use development scheduled to include a waterfront plaza, 30,000 square feet (2,787 sq m) of retail and public spaces, and a 31-story, 750,000-square-foot (69,677-sq-m) Class A office tower, is taking shape in the capital of Massachusetts. And in strong markets around the New York metropolitan area, retail development appears to be a bright spot. In neighboring Connecticut, the single-family home sector is expected to strengthen this year, and the office market in northern New Jersey is starting to gain traction.
