The Basel III rules, which take effect next year, require European banks to hold more capital against loans secured by commercial property. As a result, banks are expected to sell more commercial loans and distressed assets, according to The Wall … Continue reading →
Patrick T. Sharkey of Jackson Walker, LLP writes of ten issues to be considered in a condominium conversion project: 1. All existing leases must be honored after the conversion, regardless of the length of the lease. 2. Every tenant/subtenant must … Continue reading →
Diana Olick of CNBC reports that the Fed’s QE3 (quantitative easing) could spur additional investment in commercial real estate if U.S. Treasury rates remain steady or drop. According to John O’Callahan of CoStar Group (quoted in the report), high-yield bond … Continue reading →
Since October 2011, the MSCI U.S. REIT index has gained 30 percent (excluding dividends) compared with a 22 percent gain for the Standard & Poor’s 500-stock index, according to The Wall Street Journal. The article indicates that residential REITs may … Continue reading →
London was the top city for overseas commercial real estate buyers in the second quarter of this year, according to Bloomberg. Foreign CRE investment rose 32 percent to $8.67 billion for April through June 2012. Paris came in second with … Continue reading →
Asian shopping mall developer CapitalMalls Asia Ltd. has set up CapitaMalls China Development Fund III – a $1 billion private-equity fund that will invest in Chinese retail properties, according to
Continue reading →Miami-based Burger King will open 1,000 restaurants in China over the next five to seven years, according to The Miami Herald. The expansion is a joint venture with the Kurdoglu family, which runs 450 Burger King restaurants in Turkey and … Continue reading →
Partial interest deals are transactions in which investors take partial stakes in buildings instead of buying them outright. In 2011, partial interest deals accounted for $9.9 billion (63 percent), of the $15.7 billion in Manhattan office transactions, according to the … Continue reading →
Deprecation reduces the reportable taxable income of investment property. It is calculated using either the straight-line method or the cost segregation method (also known as segmented depreciation). The straight-line depreciation method does not extract the personal property elements of the … Continue reading →
Debt yield ratio is a method used to determine the maximum amount of commercial real estate loans. It is the Net Operating Income (NOI) as a percentage of the total loan amount (first mortgage). For example, if a commercial The … Continue reading →