March 2024

25 March, 2024

Aimco’s Brickell Office and Apartment Towers Hit the Market for $650M: A Redevelopment Opportunity

Aimco, a Denver-based real estate investment trust, has listed its waterfront office tower and adjacent apartment building in Brickell for approximately $650 million, presenting a significant redevelopment opportunity. The properties, marketed by CBRE, offer the potential for multiple supertall structures totaling over 3.1 million square feet.

1. Property Details and Market Value: The 4.3-acre site includes the 32-story Brickell Bay Office Tower and the 31-story, 357-unit Yacht Club Apartments. While the exact asking price wasn’t disclosed, sources confirm it to be around $650 million. The site’s redevelopment potential spans various uses, including condos, hotels, offices, and retail spaces, with a maximum height limit of 1,049 feet.

2. Lease and Ownership Details: The Brickell Bay Office Tower is 80% leased, with most leases extending through 2027, while the Yacht Club Apartments boast a 97% occupancy rate. Aimco acquired a 95% stake in the office tower in 2019 and purchased the Yacht Club in 2009. Previous redevelopment plans for the Yacht Club garage never materialized.

3. Financial Considerations and Expectations: Aimco anticipates the sale to conclude by year-end, contingent on favorable pricing and terms. The proceeds from the sale are earmarked for returning capital to stockholders and retiring associated liabilities. The REIT reported a decline in net operating income in its 2023 earnings report, partly attributed to lease expirations at the office tower.

4. Context and Market Trends: The listing aligns with a booming Brickell office market, driven by significant developments like billionaire Ken Griffin’s plans for a headquarters tower nearby. The surrounding condo market has also seen increased developer interest, with new projects such as One Twenty Brickell and a Mercedes-Benz-branded mixed-use tower in the pipeline.

Aimco’s decision to list its Brickell properties reflects the area’s dynamic real estate landscape and presents a compelling opportunity for potential investors to capitalize on the region’s growth trajectory.

Source: The Real Deal by Lidia Dinkova

18 March, 2024

Foreclosures on the Rise: Understanding the Dynamics

Foreclosure filings have seen an 8% increase year over year, totaling nearly 33,000 properties in February, according to a recent report from ATTOM. While this uptick may raise concerns, it’s crucial to understand the underlying reasons behind this trend and its implications for the housing market.

1. Shift in Housing Market Dynamics: ATTOM CEO Rob Barber suggests that the rise in foreclosure activity reflects evolving financial landscapes for homeowners, prompting adjustments in market strategies and lending practices. While the increase in foreclosure filings may seem alarming, it’s essential to interpret these trends within the broader context of the housing market’s dynamics.

2. Pandemic Impact and Foreclosure Moratoriums: The surge in foreclosure filings is not indicative of a housing market crash but rather reflects the aftermath of pandemic-induced foreclosure moratoriums. These measures protected homeowners during uncertain times but have led to a backlog of filings as moratoriums expire and states gradually lift restrictions.

3. Fundamental Differences from the Great Recession: Unlike during the Great Recession, today’s housing market boasts more buyers than available homes for sale. Lenders also maintain stricter lending criteria, mitigating the risk of subprime loans that contributed to the previous crisis. Additionally, distressed homeowners now have the option to sell their homes, often at a profit, rather than facing foreclosure.

4. States with the Highest Foreclosure Rates: South Carolina leads the nation in foreclosure rates, witnessing a significant increase in repossessed homes. Other states like Delaware, Florida, Ohio, and Connecticut also experience elevated foreclosure rates, signaling localized challenges within their respective housing markets.

5. Metros with Elevated Foreclosure Rates: Metropolitan areas in South Carolina dominate the list of metros with the highest foreclosure rates, with Columbia, Lakeland, and Spartanburg leading the pack. These areas face unique economic and housing market dynamics contributing to their heightened foreclosure activity.

While the rise in foreclosure filings warrants attention, it’s essential to contextualize these trends within the broader housing market landscape. Understanding the reasons behind the increase and the localized nature of foreclosure challenges can guide policymakers and industry stakeholders in implementing targeted solutions to support affected homeowners and stabilize housing markets.

Source: Realtor.com by Clare Trapasso

11 March, 2024

Affordable Homes Flood the Market: Where to Find Properties Under $350K

Despite a national median home price of $415,500, the real estate market is experiencing a surge of properties available at significantly lower prices. With a focus on affordability, potential homebuyers now have more options to explore within the $200,000 to $350,000 range.

1. Where to find affordable homes: The majority of affordably priced homes are concentrated in the South, particularly in cities like Miami, Tampa, and Dallas. These regions have witnessed substantial inventory growth in the $200,000–$350,000 price tier, offering buyers diverse options at relatively lower price points.

2. Types of homes available: In markets like Miami and Tampa, attached homes such as condos and townhouses dominate the inventory within the $200,000–$350,000 range. Meanwhile, cities like Dallas boast a surge in single-family homes, catering to various buyer preferences and lifestyles.

3. Impact on inventory levels: While the influx of affordable homes signals a positive shift for bargain hunters, overall inventory levels remain below those of previous years. Despite this, the increase in lower-priced options presents an opportunity for buyers to explore more budget-friendly choices.

4. Top cities for affordable homes: Several cities stand out as hotspots for affordable real estate, including Miami, Dallas, and Tampa. With median list prices ranging from $286,000 to $550,000, these cities offer a range of affordable properties, providing potential savings for savvy homebuyers.

5. Sample listings for top cities:

• Miami, FL: 1841 NW 51st St for sale for $329,990
• Dallas, TX: 9918 Hustead St for sale for $225,000
• Tampa, FL: 3127 W Sligh Ave Unit 303B for sale for $225,000
• San Antonio, TX: 2135 Seven Pines St for sale for $250,000
• Houston, TX: 12223 W Village Dr Unit C for sale for $140,000
• Orlando, FL: 4324 S Kirkman Rd Apt 1114 for sale for $230,000
• Atlanta, GA: 2383 Perry Blvd NW for sale for $194,995
• Oklahoma City, OK: 3613 NE 30th St for sale for $245,000
• New Orleans, LA: 604 Esplanade Ave Unit 103A for sale for $215,000
• Birmingham, AL: 1325 Impala Dr for sale for $269,900

As the market sees a surge in affordable homes, buyers have the opportunity to capitalize on budget-friendly options across various cities, especially in the South. With an array of properties available within the $200,000–$350,000 range, now may be the ideal time for prospective buyers to explore homeownership.

Source: Realtor.com by Margaret Heidenry

04 March, 2024

Miami Leads U.S. Luxury Real Estate Market in Price Growth

A recent report by Douglas Elliman and Knight Frank’s 2024 Wealth Report reveals that Miami is at the forefront of luxury residential market growth in the United States. The Magic City saw a remarkable 6.5% year-over-year increase in luxury home prices in 2023, outpacing other American cities.

Miami’s Dominance in Luxury Price Growth:
Miami secured its position as the leader in luxury real estate market growth, with a 6.5% surge in prices last year. This growth is attributed to a significant influx of wealthy residents into South Florida, establishing the region as a hotbed for high-end real estate.

National Rankings and Trends:
Following Miami, Boston and New Jersey recorded 5.6% annual growth, while California’s Orange County, Hawaii, Houston, Los Angeles, Aspen, and San Francisco also experienced varying levels of price growth. Conversely, New York and the Hamptons witnessed a decline in prices, dipping by 2% and 2.7%, respectively.

South Florida’s Appeal to the Ultra-Rich:
South Florida, particularly Miami, is witnessing a surge in ultra-rich individuals relocating to the area. The report highlights notable real estate investments by billionaires like Ken Griffin and Jeff Bezos, emphasizing the region’s appeal as a thriving market for luxury properties.

Factors Driving the Boom:
The report identifies the pandemic-driven surge in demand, corporate relocations, and an influx of residents from New York, New Jersey, and California as key drivers of Miami’s housing market growth. Despite concerns about handling the increased demand and services for wealthy families, Miami’s real estate market sustains its momentum.

Challenges and Caution:
While Miami continues its upward trajectory, the report acknowledges challenges, including concerns about the city’s capacity to accommodate the growing number of wealthy families. Issues such as full capacity in prestigious private schools are causing delays in real estate transactions and relocations.

Miami’s dominance in luxury real estate price growth is evident, fueled by a convergence of factors attracting the ultra-rich. Despite challenges and cautions about handling the rapid influx, Miami’s real estate market remains on an upward trajectory, solidifying its position as a prominent player in the U.S. luxury housing sector.

Source: therealdeal.com – Kate Hinsche