Essex Property Trust, Inc. (NYSE: ESS), a fully integrated Real Estate Investment Trust (REIT) that invests in apartment communities located in highly desirable, supply-constrained markets, announced today that the Company has entered into a venture to acquire Essex Skyline at MacArthur Place, a 349-unit high rise condominium project in Santa Ana, California for $128 million.
The community consists of two adjacent 25-story towers with floor to ceiling windows and sizeable floor plans. Each unit features Viking appliances, hardwood and tile floors, nine to eleven foot ceilings and select units offer expansive views of Orange County. Property amenities include a gym and sauna, lap pool, yoga room, temperature controlled wine locker and presentation kitchen, bocce ball court, putting green, entertainment room and on-site concierge service. Essex Skyline at MacArthur Place is conveniently located in the South Coast Metro Area of Orange County close to John Wayne airport and multiple freeways, offering easy access to commute corridors. In addition it is nearby to a variety of world-class shopping, entertainment and fine dining.
Keith Guericke, President and Chief Executive Officer of Essex Property Trust, stated, “Essex Skyline at MacArthur Place is a luxury community located in the heart of California’s Orange County, known for its beaches, weather, and exceptional quality of life. We believe that rents in Orange County will recover faster than other areas given its improving employment outlook and limited supply of competing housing.” Mr. Guericke continued, “We acquired the property from the construction lender at approximately 55% of its initial construction cost, affording us the opportunity to own a well-located, upscale community that has tremendous appreciation potential when the rental market recovers and also provides attractive options when the for-sale condo market improves.”
The Company purchased Essex Skyline at MacArthur Place in a joint venture. Each owner will hold an approximate fifty percent economic interest in the property and its operations. Essex will receive fees and may earn a promoted interest for the acquisition, management and sale of the community.
For more information about Essex Skyline at MacArthur Place, please visit the community online at www.SkylineOCApts.com.
Essex Property Trust, Inc., located in Palo Alto, California and traded on the New York Stock Exchange (ESS), is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 133 apartment communities (27,221 units), and has 930 units in various stages of development. Additional information about Essex can be found on the Company’s web site at www.essexpropertytrust.com.
Forward-looking statement — The statements which are not historical facts contained in this release such as the statements regarding the economic supply and demand and the rental rate growth in the Irvine market in which Essex Skyline at MacArthur is located in as well as any statements regarding growth and return on investments, are forward-looking statements that involve risks and uncertainties, including but not limited to, unexpected changes in the economic conditions and market demand for rental units in the market in which Essex Skyline at MacArthur is located and growth of the Company. All forward-looking statements are made as of today, and the Company assumes no obligation to update this information. For more details relating to risk and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent Report on Form 10-Q for the period ending September 30, 2009 and Form 10-K for the year ended December 31, 2009.
The tentative recovery of Lanzarote´s tourist industry continues. As figures just released by ISTAC, the Canary Island´s Institute of Statistics, reveals that foreign visitor arrivals rose by 3.28% in Janauary. Suggesting that the record falls and negative numbers of last year are now a thing of the past.
Like the rest of Spain Lanzarote and the Canaries endured a gruelling 2009 – with total tourist numbers finally falling by 15% and the property market in a state of almost total stagnation. As investment and tourism are inextricably interlinked in this autonomous region of Spain.
At one stage last year occupancy levels in Lanzarote hotels and apartments even fell as low as 45%. Some 30% off the normal average. Whilst during the Spring period visitor numbers tumbled by over 20%. However a recovery from this low water mark has been apparent ever since. With visitor numbers from the key market of the UK actually rising against 2009 figures in December by 7%.
The latest ISTAC figurs sugesst that this trend is continiung into 2010 too – as the number of tourist arrivals rose by 3.28%. With Lanzarote welcoming a total of 122,800 foreign tourists and 51,533 Spanish nationals.
However this brighter picture miust be viewed in context. As the uplfit is measured against tourist figures for Janaury 2009 – which was one of the weakest months in recent years as the crisis had started to bite and visitor numbers fell by over 12% versus January 2008 figures. When the island welcomed 135,617 foreign arrivals.
Either way though the latest figres at least reverse the negative trend of last year and allied with the introduction of a whole new raft of cheap flights to Lanzarote from budget airlines such as Ryanair and easyJet suggests that brighter skies now lie ahead.
Leading Lanzarote property portals such as Lanzarote Guidebook have registered a marked incease in the number of enquiries received during the first two months of this year. Whilst many local estate agents have also noted a steady uplift in the number of overseas investors. With many attribtuing this to the fact that Lanzarote remains a strong investment option given the islands twelve month season and the ongoing demand for good quality rental property. With local tourist authorities estimating that around half of all visitors stay in privately owned Lanzarote villas or apartments as opposed to hotels and holiday complexes.
Post Properties, Inc, an Atlanta-based real estate investment trust, today announced quarterly dividends on its common stock of $0.20 per share for the first quarter of 2010. The dividend is payable on April 15, 2010 to all common stock shareholders of record as of March 31, 2010.
Post also announced regular quarterly dividends for its 8.5 percent Series A Cumulative Redeemable Preferred Stock and its 7 5/8 percent Series B Cumulative Redeemable Preferred Stock.
On its 8.5 percent Series A Cumulative Redeemable Preferred Stock, Post declared a regular quarterly dividend of $1.0625 per share for the first quarter. The dividend is payable on March 31, 2010 to all Series A preferred stock shareholders of record as of March 15, 2010.
On its 7 5/8 percent Series B Cumulative Redeemable Preferred Stock, Post declared a regular quarterly dividend of $0.47656 per share for the first quarter. The dividend is payable on March 31, 2010 to all Series B preferred stock shareholders of record as of March 15, 2010.
About Post Properties
Post Properties, founded more than 38 years ago, is one of the largest developers and operators of upscale multifamily communities in the United States. The Company’s mission is delivering superior satisfaction and value to its residents, associates, and investors, with a vision of being the first choice in quality multifamily living. Operating as a real estate investment trust (“REIT”), the Company focuses on developing and managing Post(R) branded resort-style garden and high density urban apartments. In addition, the Company has also developed high-quality condominiums and converted existing apartments to for-sale multifamily communities. Post Properties is headquartered in Atlanta, Georgia, and has operations in nine markets across the country.
Post Properties owns 19,863 apartment units in 55 communities, including 1,747 apartment units in five communities held in unconsolidated entities and 1,428 apartment units in four communities currently under construction and/or in lease-up. The Company is also developing and selling 277 luxury for-sale condominium homes in two communities (including 129 units in one community held in an unconsolidated entity) and is completing the sell out of units in two other condominium conversion communities through a taxable REIT subsidiary.
After an interesting year in the property market, early 2010 is a crucial time for investors to examine their property portfolios and examine where the best yields are to be found. This is all the more important if one considers the growth in sale prices which overtook the growth in lettings values and the subsequent yield contraction of 55 basis points. The average property acquisition yielded 4.7% gross at the end of 2009.
The Investment yields in some of the desirable commuter areas remain higher than those of prime London property for Q4 of 2009. Sussex had the highest yield in the South East with Brighton and Hove giving a 5.5% average and Haywards Heath with 5.3%. Surrey followed with Guildford with 5.2% and Godalming with 4.9%. The areas North of London, such as St Albans, Ricksmansworth and Maidenhead it was average of 4.5% – 4.7%.
If one looks at the country sales market, there was a 3.1% growth in Q4 of 2009. This was built on the substantial gains of the previous two quarters and was the third consecutive quarter that saw an average prices increase for country market stock. One of the factors that influence this increase is the lack of good quality stock entering the market to satisfy waiting buyers. It is expected, however that as the market gains confidence the level of new instructions will increase and therefore moderate price growth.
Furthermore, the rise in new applicants is reported to be up 30% at the end of 2009 and therefore above 2007 and 2008 levels. Another justifying variable are the offer numbers that have been documented. The year finished strongly with sales up 30% and lettings up 21%.
These factors contributed to the rental market experiencing an average of 3.5% increase in prices throughout 2009. Furthermore, after the unrest of Q1, the rental market gained in Q2 and Q3 of 2009 and managed to preserve these and rose by 0.3% rise in Q4. The larger properties (4/5 bedroom houses for rent) led the way for letting values. They gained in excess of 1% each quarter. The smaller properties (3 bedrooms or less) saw a gain of less than 0.5% in 2009.
In summary, without any further economic crises there should be an uplift of 3%-5% across the country market in 2010. Financial service organisations are paying out the bonus payouts ensuring that there is a flow of money across the South-East once again. All the above indicators regarding investment yields, sales pricing, lettings pricing and the pace of the market point to the buoyancy of the UK housing market; the growth now stretches into the third financial quarter.
More than 250 of the top business leaders in commercial real estate met last week to hear the Voit Real Estate Services’ Commercial Real Estate Forecast at the Pacific Club. The top-notch panel included keynote speaker Dr. Christopher Thornberg of Beacon Economics, residential guru John McMonigle of the McMonigle Group, Robert D. Voit, president of Voit Real Estate Services, and Ken Gaitan, head of Bank of America’s OREO West.
Forecast chair Kurt Strasmann, managing partner for Voit’s Orange County region, noted that “Though there are mixed indicators in the economy, business is getting used to this new environment. They are starting to make short-term decisions, which will lead to long-term decisions. As the leader in market research for Orange County, Voit uses multiple indices to determine our current situation and to understand the coming months. We see 2010 as a settling out year in which business will move forward in this new reality.”
The economist Thornberg projected that the government will shortly announce that the recession officially ended in September of 2009. However, he was quick to point out that the economy is being propped up by federal fiscal intervention, and that housing, consumer spending and the labor market are still not faring well.
“California does very well during good times and very poorly during tough times,” he said. “California is overexposed to this cyclical economy because we are real estate and export intensive. We sell capital goods and high-tech to other states that are suffering.”
Thornberg noted that going forward, while no one can predict the exact outcome, the shape of the recovery will be dictated by government policy. He voiced concerns about the current environment of controlled low interest rates. He noted that when interest rates begins to rise, inflation is likely to follow – but pointed out that inflation will aide many real estate owners who are currently upside down on their investments by increasing the value of their properties.
For commercial real estate, Mr. Voit said that while values are plummeting and investment sales transactions are down more than 75 percent from the top of the market, “we do see the pent-up demand in commercial real estate generating a great deal of velocity in short-term lease activity.”
“We are making a large investment in our platform, which we realize is quite countercyclical in the commercial real estate industry, because we are cautiously optimistic and I want our team ready to handle the real estate needs this pent-up demand is generating, both in the traditional market, and in distressed activities. In fact, we are seeing signs that buyers and sellers will soon be comfortable that the price is being re-set by per-square-foot values,” Voit said.
On REO properties, Bank of America’s Gaitan reported that when they are selling premium properties, institutional buyers are coming back into the market and bidding these properties up above the opening price.
Gaitan also agreed with Mr. Voit that when prospective buyers see opportunities to purchase quality properties at 50 percent of replacement cost, they are comfortable that it is sensible to invest.
Voit Real Estate Services is one of the largest privately owned, debt-free commercial real estate services firms serving both institutional and private clients in the Western United States. With offices in California, Nevada and Arizona, Voit Real Estates Services can scale asset management, property management, market research, property leasing and sales, financial underwriting, construction and development services to its clients’ individual needs in any market. The firm’s nearly four decades of real estate ownership experience, combined with its asset management platform, provides clients with strategic alternatives, which allow owners of distressed real estate assets to maximize proceeds while minimizing risk.
Voit Real Estate Services was founded in 1971 by Robert D. Voit, who continues to lead the firm. Known for its personal, nimble and responsive service culture, Voit Real Estate Services has developed, acquired or managed more than 40 million square feet of commercial real estate and transacted sales and leases valued in excess of $25 billion. Additional company information is available at www.voitco.com.
It appears the British Government Inc has managed to eke out another 0.1% increase in average sale prices in the UK at the expense of sales volumes. According to the Land Registry, average sales prices have now risen 0.1% to £161,764, bringing the yearly increase up 2.5%
This is on extremely depressed sales volumes and begs the question as to how long this can continue. Typical sales volumes for England and Wales are around 120,000 units and sales volumes are currently around 50,000 units – this is estimated as it is apparently possible to record the values of sales but not count the quantity for another 2 months. Thus the sales volumes lag by two months.
Volumes in London, which is showing increases of 6.1% in value are further depressed – typical volumes are around 15,000 units and just 6,000 were sold in October.
In doesn’t take a genius to understand that depressed sales volumes are resulting in higher average sale prices, because the only stock moving is better quality and the repossessions being delayed by the banks at the insistence of the Government Inc mean the market is being heavily skewed at the moment.
A similar situation occurred in the US with sales averages climbing and volumes falling. Eventually the market corrects – and the US market is just now starting to correct itself with substantial devaluations in many areas. The “shadow inventory,” in the US, UK and Spanish markets is still quite substantial and we see falling prices – quite dramatically – when this stock comes on the market eventually.
Sales Prices UK Property:
Sales Volumes UK Property:
Sales Volumes London:
Th full report is available to down load here – Land registry
Ouch! It appears the church of England is – once again – better at preaching morals than actually practicing them. A £40 million investment in a decidedly-dodgy Manhattan luxury real estate deal has just gone up to heaven to be with Jesus. According to the Episcopal News Service:
The Church of England stands ready to lose about $78 million invested in the largest real estate deal in American history after Tishman Speyer Properties announced it was turning over two Manhattan apartment complexes to creditors.
Tishman Speyer partnered with BlackRock Realty in 2006 to complete the $5.4 billion purchase of Stuyvesant Town and Peter Cooper Village on Manhattan’s East River. The deal has since lost $3.5 million and the firm decided to surrender the properties after falling behind on loan repayments, according to reports.
The Church of England’s £40 million investment in Stuyvesant Town was brokered in June 2007, right at the top of the property market, months before the ensuing global economic crisis set in, and when the exchange rate was 1.96 dollars to the pound.
“Stuyvesant Town offered the opportunity to invest in a large residential complex in a major international city with Tishman Speyer, a respected world-class manager,” Ben Wilson, senior media officer for the Church of England, told ENS. “In doing so we believed that the investment would provide strong financial returns and investment diversification. We undertook detailed due diligence in conjunction with external professional advisers and the fund manager, including an assessment of the identified investment risks.”
But Wilson acknowledged that the investment was “affected by the sharp fall in residential property values, and a legal ruling that many apartment rents would continue to be regulated regardless of value or the income of residents.”
Managed by the Church Commissioners, the Church of England’s historic assets are invested in stock market shares and property.
The Church Commissioners identifies one of its main responsibilities as obtaining “the best possible long-term return from a diversified investment portfolio,” according to its website, which notes that such investments meet about 18% of the church’s total running costs.
News about the property investment loss comes on the eve of a Trinity Institute conference in Manhattan that will bring together leading economists and theologians, including Archbishop of Canterbury Rowan Williams, to address the theme “Building an Ethical Economy.” Williams serves as chairman of the Church Commissioners.
“The commissioners are looking carefully at the lessons to be learnt from the loss, as well as from the impact of the financial crisis generally,” Wilson said. “This loss comes against a background of the commissioners’ property portfolio outperforming its peer group by an average of 4.6 percent every year over the last 10 years, and returning an average of 12.1 percent each year.”
Wilson told ENS that the Stuyvesant Town investment “represented less that 1% of our assets.”
The total value of the Church Commissioners’ assets at Dec. 31, 2008 (their most recent annual accounting) was some £4.4 billion, “of which investment properties accounted for some £1.3 billion,” he said. Calculated at the interbank exchange rate for that day, the total value amounted to $6.37 billion, of which the investment properties was $1.88 billion.
According to a New York Times report, Tishman Speyer “manages a $33.5 billion portfolio of 72 million square feet of property in the United States, Europe, Asia and Latin America.” The firm’s assets include New York’s Rockefeller Center and Chrysler Center.
The newspaper predicts that although the firm’s reputation might suffer, collateral damage was “expected to be minimal.” Episcopal News.
Once again it seems the church feels that “inner peace” is achieved by “outer wealth,” whilst heavily criticizing “secular greed,” and you have to ask what on earth the CoE was doing investing £40 MILLION in a morally-questionable deal that relied heavily on illegally evicting rent controlled war-veteran tenants on low rental agreements, ripping the buildings apart to convert them into luxury apartments and sticking it to the tenants with super-high rent increases.
The whole thing fell to pieces after the real estate market collapsed and a number of tenants got together to prevent the rent increases – the New York courts found that the rent increases were illegal. Now – he is probably going to regret this – but just 2 days ago – Rowan Williams – the Archbishop of Canterbury was lecturing us on “Building an Ethical Economy.”
Which apparently allows the church to do as it pleases……..
Of course – it is not just the church losing the cassock off their back – there are plenty of secular investors, including a number of US state pension funds, who should have had some moral obligations not to get involved in this type of deal.
Although the Burj Dubai is now “finished,” we still have not seen an influx of tenants or investors, but this rather entertaining video of the windows being cleaned makes up wonder what is going on. Surely this is not a practical solution. Or is it? With labor being cheap and readily available. Not a job we would fancy though. Scary…..
After the post concerning Greek Property investment in Sparta, we continue our look at property investment hotspots in the Peloponnese with a hop over the Taygetos Mountains, into Messinia. This corner of the Peloponnese is opening up, as transport and communications improve, and foreign buyers are increasingly looking at property investment in Methoni.
Second Homes and Property Investment in Methoni
For many years, Greek and foreign buyers have sought a second home where they can enjoy the azure sea, natural beauty, and unique sunsets. Many settled in the Northern Peloponnese, only a short journey from Athens, and towns such as Nafplio saw mini-property booms. In the wake of the 2004 Olympics, the Greek government embarked upon an ambitious plan to improve the roads in mainland Greece, concentrating upon the Peloponnese.
As an improved network has spread outwards from Athens, the frontier of property investment has followed in its wake and areas such as the Mani, Kalamata and Neapoli have developed a healthy property market, based upon buyers seeking second homes. As this happened, prices have risen much more quickly than elsewhere in Greece and buyers towards the lower end of the range have been squeezed out.
Property Investment in Methoni - The Final Frontier
Improved Communications and Property Investment in Methoni
Currently, the Greek government is in the process of finishing a national road that joins Tripoli to Kalamata, slashing the journey times to and from Athens. This road is planned to extend beyond the coastal resort and extend into the lower south-eastern corner of Messinia, suddenly bringing the relaxed town of Methoni into play. This beautiful area is a viable second-home location that is not completely severed from civilization by poor quality roads. Add to this the fact that an airport extension is planned at Kalamata, and property investment in Methoni has suddenly become a viable proposition.
Methoni has a population of just under 3000 people and is situated in a beautiful location, with some of the finest beaches in Greece. The town, currently, is extremely quiet and a haven for the occasional tourist wanting to visit the Ancient palace of Nestor, at nearby Pylos. This location offers the opportunity to buy a home with the traditional Greek beaches, sea-view and busy tavernas, whilst making your budget stretch much further than around Kalamata of on the Mani peninsula.
Property Investment in Methoni – A Mixture of Budget and Luxury Properties
As some examples of prices in and around Methoni, you can expect to pay between €150 000 for a traditional Greek stone house in good shape. For a 2000m2 building plot, with sea views and permission to build a house with floor space of up to 400m2 will set you back about €50 000, a fraction of the cost of land in nearby Kalamata. For a standard two bedroom new build home, prices hover at around €100 000 to €150 000, depending upon location, plot size and whether the home has a swimming pool. These prices represent extremely good value and are set to take a leap once the road from Kalamata is completed.
Certainly, for foreign investors wanting to own a slice of the Greek dream and buy a second home in the sun, property investment in Methoni represents great value.
Property Investment in Methoni Image: FocalPoint – Wikipedia
