Bay Area Real Estate News

September 20, 2012 by Peter Maclennan Leave a Comment

Real Estate Investors Want More Investments

Bloomberg reports that almost two-thirds (2/3) of real estate investors plan to invest in as many or more homes in the next year: Real Estate Investors Plan to Purchase More Homes in U.S.

Rising rents are driving the increase in residential real estate investment. In fact, in many areas of the country it is actually cheaper to buy than to rent according to Trulia.com. A homeowner would save almost $890 per month by buying in San Francisco. Trulia goes on to say,

“For prospective homeowners who are unable to secure the best mortgage rates, fail to itemize their tax deductions or plan to stay in their next home fewer than seven years, the cost of homeownership relative to renting will be greater.”

Even though property inventory fell by 1.2% from July to August and prices are rising slightly, investors still have a strong desire to buy.

If you are an interested in investing in real estate, please give me a call at (925) 385-8798.

September 6, 2012 by Peter Maclennan Leave a Comment

Landlords: What would you do to get a tenant?

Question for you landlords: What would you do to get a tenant?

According to the Wall St. Journal article Offices Get Roughed Up to Lure Start-Up Tenants landlords in the hot San Francisco office market are willing to “rough up” their buildings to appeal to high tech tenants. Landlords are tearing out drop ceilings to expose mechanical components, sandblasting walls, and exposing wood panels.

High tech firms are seeking space that has an industrial and open layout. The article reports that these changes aren’t cheap and come with the risk that the trend among tenants might change.

Tell me landlords, What would you do to attract a tenant? Would you follow the pattern of these landlords?

April 5, 2012 by Peter Maclennan Leave a Comment

Another Wave of Foreclosures?

Reuters is reporting that another wave of foreclosures is about to hit the U.S. housing market. (HT: Zerohedge via BloodhoundBlog) The robo-signing settlement paved the way for lenders to resume foreclosure on many of their delinquent loans.

The Reuters’ article reports:

Although foreclosure starts were 50 percent or more lower than for the same period in 2010, those begun by Deutsche Bank were up 47 percent from 2011. Those of Wells Fargo’s rose 68 percent and Bank of America’s, including BAC Home Loans Servicing, jumped nearly seven-fold — 251 starts versus 37 in the same period in 2011. Bank of America said it does not comment on data provided by other sources. Wells Fargo and Deutsche Bank did not comment.

Market pricing is a function of supply and demand. If a large supply of housing hits the market, pricing will will have to fall to a level that demand picks up.

I wrote just yesterday about the lack of current inventory on the market. It will be interesting to see how this plays out in Contra Costa County.

If you are interested in real estate investing, please feel free to visit our website or our blog to get more information about investing. You can call me at (925) 385-8798 to discuss current investments or future plans for investing.

June 17, 2010 by Peter Maclennan Leave a Comment

Buildings in Oakland, Berkeley, and Concord Enter Foreclosure Process

The Contra Costa Times is reporting that More East Bay buildings in mortgage default.

Specifically, Jackson Center at 1111 Jackson Street in Oakland and Berkeley Tower at 2120 University Ave in Berkeley.

The bank seeks to foreclose a delinquent loan totaling $47.1 million. The affiliate of Portland, Ore.-based Scanlan Kemper Bard, commonly known as SKB, bought the buildings and the vacant lot for $61.5 million in 2007.

Ouch! That means that SKB is willing to right off almost $15 million in invested capital on these deals.

In an article from April 26, 2010 the Contra Costa Times reported that One Concord Center was also in the foreclosure process.

SKB willingly turning over the keys to the property in Oakland and Berkeley means that they do not see a resurgence in value in the near future. Expecting a near term turn around is unrealistic.

February 5, 2010 by Peter Maclennan Leave a Comment

Downtown Pittsburg Project to Resume

Vidrio Mixed Use Development in Pittsburg, CA - Architectural Design

3D Architectural Rendering of Vidrio

The Contra Costa Times is reporting Construction to resume on stalled Pittsburg project.

After 18 months of inactivity, construction on a housing and retail project regarded as the centerpiece of Pittsburg’s downtown revitalization could resume next week.

Vidrio as the project was named by developer A.F. Evans has been under construction since 2006. The developer defaulted on the original loan from Union Bank in August of 2008.

A.F. Evans filed Chapter 11 bankruptcy protection in March of 2009. A.F. Evans also developed 901 Jefferson Street in Oakland which went to foreclosure and was bought by Madison Park Financial Co.

The City of Pittsburg began negotiating with Union Bank to buy the debt in October of 2009. Escrow for the sale of the debt was just closed last week.

The Contra Costa Times article says that the City of Pittsburg has already spent $26 million towards this project.

The article indicates that the 75 units are listed for sale at an average price of $152,230 per unit, for a gross sale value of $11.4 million. Less than half the cost of the city’s investment.

This looks to be a costly investment for the City of Pittsburg.

925.385.8798

Real Estate Investors Want More Investments

Landlords: What would you do to get a tenant?

Another Wave of Foreclosures?

Buildings in Oakland, Berkeley, and Concord Enter Foreclosure Process

Downtown Pittsburg Project to Resume

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