Seoul's D-Cube City, Moscow's Kuntsevo Centre Win Top Emerging Market Design Awards at Dubai Cityscape Conference

D-Cube City, Seoul

(Dubai, UAE) -- During a recent awards ceremony held in Dubai, Cityscape Global awarded two Jerde designed projects top honors at the formal event held at the Armani Hotel in the base of the Burj Khalifa tower.

The Jerde Partnership, a Los-Angeles based international architecture design and urban planning firm, received the Built Retail Award for D-Cube City and the Future Retail Award for Kuntsevo Centre in Moscow - becoming the first firm to have winning projects in both categories.  The developers for the award-winning projects are Daesung Industrial Co., Ltd, and ENKATC LLC, respectively. The Cityscape Awards reward excellence and celebrate outstanding performance in real estate and architectural design across emerging markets globally.

"Receiving awards for D-Cube City and Kuntsevo Centre among such a talented group of our peers is a tremendous honor," says Sergio Zeballos AIA, Jerde design partner.  "With each Jerde Place we design, we strive to create the present day and future landmarks for the community."

Kuntsevo, Moscow

D-Cube City was the first of its kind mixed-use, transit-oriented development to open in Seoul in over a decade when it was completed in September 2011. 

The design integrates retail, entertainment and cultural districts with an iconic office-hotel tower, two residential towers, and over six acres of landscaped gardens, parks and plazas to create a major new public space in the highly dense capital city.  Samoo Architects & Engineers served as the local Korean executive architect and designer of the residential.

Burj Khalifa Tower at night (Dubai, UAE)

One of the premier Jerde Places in progress, Kuntsevo Centre, is a mixed-use development with over 200,000 square meters in the prominent Kuntsevo district of Moscow that integrates residential and commercial office space, retail, entertainment, spacious rooftop amenity decks and public plazas designed to catalyze the urban public realm--a trademark of Jerde Places.  The project is scheduled for full completion in 2015.

"Cityscape is unique because it raises the profile globally for the work we are doing in these dynamic growth regions that are a driving force in the global real estate market," says David Rogers FAIA, Jerde co-design director.

The Cityscape Awards for Emerging Markets reward excellence in architecture and design from the emerging regions of the Gulf States, the Middle East, Africa, Latin America and Asia (excluding Japan, New Zealand and Australia), and seek to recognize architects for projects incorporating outstanding design, performance, vision and achievement.

As Hurricane Sandy Nears U.S. Northeast, Almost 284,000 Mid-Atlantic Homes Valued at $88 Billion at Risk of Property Damage

According to CoreLogic, the potential exposure to residential property damage from hurricane-driven storm-surge flooding as Hurricane Sandy makes its way toward the U.S. Atlantic Coast is significant.

"On its current projected track as of this weekend, Sandy is likely to make landfall along the northeastern Atlantic coast early next week," said Dr. Howard Botts, vice president and director of database development for CoreLogic Spatial Solutions.

CoreLogic North Atlantic Storm Surge Risk (Click here to enlarge)

"This is a large, slow-moving, persistent and dangerous storm. Its impacts are going to be far-reaching and no doubt very costly. Sandy could pose an enormous threat to major metropolitan areas in the Northeast, from Virginia Beach and Washington, D.C. to New York City and Boston."

The data shows nearly 284,000 total residential properties valued at almost $88 billion at risk for potential storm-surge damage among the coastal Mid-Atlantic States, assuming the storm hits the coast as a Category 1 hurricane. Within that region, more than 238,000 total properties valued at nearly $75 billion stand at risk in eight major metro areas from Virginia to New England.

Total number and total value of residential properties by coastal Mid-Atlantic state are:

The number of residential properties in each metro area and their respective potential exposure to damage are as follows:

Hurricane-driven storm-surge flooding can cause significant property damage when high winds and low pressure causes water to amass inside the storm, releasing a powerful rush over land when the hurricane moves on shore. The CoreLogic analysis measures damage from storm surge and does not include potential damage from wind and rain associated with hurricanes.

Law Firm Office Expansions Occurring in Asia and North Africa, Driven By High-Growth Economies

Tom Carroll

According to Jones Lang LaSalle's Global Law Firm Perspectives 2012, strong economic growth in emerging markets is driving law firm office expansions across the Asia Pacific and Africa regions.

"Law firm real estate trends vividly illustrate current global economic polarization," explained Tom Carroll, Director - Corporate Research, Jones Lang LaSalle. "While firms focus their sights on high growth emerging markets in Asia and Africa, a tenant favorable market will continue in North America and much of Europe for quite some time."

The JLL report reveals the following key worldwide legal industry real estate trends:

• A Return to growth via economic cross pollination - Larger multi-national firms are breaking their years of caution, as emerging market expansion returns to the agenda. Growth in emerging markets is driven by firms based in mature markets such as the U.S. and Western Europe, which want to be geographically aligned with the high growth economies in the Asia/Pacific, Middle East and Africa regions. For example, the growth of Western business interests in China has spurred law firm growth in Beijing, Shanghai and Hong Kong.

• Corporate outsourcing driving demand - Multi-national corporations are outsourcing more legal work, driving demand for legal services typically provided from low-cost locations.

• Law firm M&A shaping cities - Western law firms are partnering with local firms in emerging markets to serve expanding corporate clients, while cross-border M&A activity is also on the agenda.  For example, in Morocco, Bird & Bird formed an alliance in Casablanca with El Amari & Associes, a legal services provider. Additionally, a cluster of M&A activity has occurred with Australian firms as U.S. and U.K. firms seek to expand their presence in the region.

• Germany progressing - Emerging as an IP litigation center and continuing its economic leadership, German cities like Hamburg and Munich are welcoming new firms and office expansions.

• New workplace strategies: lease expirations drive focus on productivity - In North America and Europe, firms are using less office space per attorney, deploying new workplace strategies designed to drive productivity and efficiency, often prompted by lease expirations.

Variable Rental Rate Cycles

"In global markets, law firm rents are influenced more by overall market conditions than by legal industry trends," explained Carroll. "Many markets are recovering economically, but still offer low rents because the market cycle has yet to drive rate increases."  Incentives (or lack thereof) can vary from market-to-market as well.

For example, consider the following contrasts:

• In Hong Kong, tenants are incentivized with an average of 2-3 months' free rent; in Tokyo, the number is 9-12 months free.

• In Melbourne, where the Class A vacancy rate sits at a comparatively low 6 percent, average prime gross rents come in at A$517 per square meter. Yet in Sydney, with a higher 9.3 percent Class A vacancy rate, rents remain much higher than Melbourne's at A$925 per square meter, thanks in part to higher underlying property values.

Richard Proctor

"Rents are highly variable city-to-city, even within the same region or country," said Richard Proctor, Head of Central London Tenant Representation and Lead Director, EMEA Law Firm Practice, Jones Lang LaSalle. "Firms can find deals where rents are just beginning to rise, but remain close to the market bottom. It is critical for law firms to apply their forensic skills to their real estate portfolios to achieve an optimal outcome."

Tenant mix influences market trends

"'As go law firms, so goes the office market' is a sound guiding principal for North America," explains Elizabeth Cooper, Jones Lang LaSalle International Director and co-chair of the firm's law firm practice. "In contrast, anchor tenants in Europe, Asia and North Africa are more likely to be corporations, so law firm trends are not market-movers in quite the same way." In the U.S., law firms lease, on average, more than 15 percent of Class A office space in urbanized markets. In contrast, only two cities outside North America show law firms leasing more than 10 percent of Class A office space in the central business district."

The study, an annual barometer of law firm real estate trends around the world, characterizes a performance gap between advanced and emerging economies-and a renewed interest from large law firms in bridging that gap.

Investors See Bargains in Depressed Greek Real Estate

Athens, Greece

Real estate, and especially commercial real estate, is beginning to play a strong role in the economic recovery of Greece, according to brokers, bankers and consultants in Athens and London.

One big reason is the coalition government led by conservative Prime Minister Antonis Samaras that came to power in June has impressed some investors. Samaras promised to do everything needed to keep bailout funds flowing, easing fears of bankruptcy and leaving the Euro zone.

Even German Chancellor Angela Merkel, who calls the shots on bailout programs for sick Euro zone members, has eased her former position on allowing Greece to default on its debt.  Other Euro zone members may be following Merkel's position.

Dimitris Manoussakis, head of the Athens office of real estate consultant Savills, recently told the media the Greek government's new stance in selling state assets, including real estate as a condition of its bailout over the next several months, may start to convince some investors they will be getting a fair price on property transactions.

Greek investors, especially those living abroad, are becoming interested again in commercial property like hotels and retail, with demand even coming from the US, South Africa and Australia. Six months ago, that same interest was lacking, according to global real estate analysts.

Those potential investors are eyeing bargain prices as their incentive to step back into the market. Those same investors, however, abandoned the country when its economy was faltering and took much of their cash with them.

Reuters reported Kostas Kazolides, a London-based investor who has been investing in and advising on property deals in Greece and Cyprus for 35 years, recently said "There are deals that (once) didn't make sense but do now as the outside world takes the government more seriously."

He added, "People are talking about going back in and buying. There are villas in Mykonos going at 30 percent of their value because sellers are feeling the pinch." A 30 percent fall in construction costs was another incentive.

Data from Lipper, a Thomson Reuters company that tracks the funds industry, shows the amount of money flowing out of Greek equity funds is slower in 2012 than previous years and turned positive in August.

Chicago's Retail Market On the Rise

Chicago, IL

The Chicago retail market is having a resurgence based on a number of indicators, including retail vacancies.  In fact, retail vacancy has continued its steady decline since 2010, according to a third quarter CBRE MarketView report on Chicago's retail market.

During the third quarter, the Chicago retail market posted an 8.7 % vacancy rate, a 30 basis point decrease from last quarter, according to CBRE.

"Regional malls have some of the lowest vacancy rates, in the 3% to 4% range," says Mark Hunter, retail market lead for the Midwest at Jones Lang LaSalle in Chicago, although specialty stores' vacancy rates are higher. On Michigan Avenue, one of Chicago's most fashionable shopping districts, on the other hand, vacancy rates are about 3%, he says.

Although vacancies are down in the Chicago market, net asking rents were flat in the third quarter, only rising from $16.76 per square foot in the second quarter to $16.77, according to CBRE's MarketView, which reports the average for the metropolitan area for all type of centers. Asking rents at premium malls' start at $40 per square foot, says Hunter.

Retail investment sales have picked up over the last year in Chicago and other major markets, says Hunter. "Trophy properties are trading at a premium," he says.

Seattle Enjoying Strong Office Investment Sales in 2012

Seattle, Washington

This past August, Paul Allen's Vulcan Real Estate, based in Seattle, put the 1.8 million-square-foot Amazon.com headquarters, located in downtown Seattle, up for sale. As of this month, Amazon.com has a $1.16 billion ($644 per square foot) contract on the 11-building complex that may close before the end of 2012, says Ann Chamberlin, managing director at Jones Lang LaSalle in Seattle. Amazon began moving into the building in stages beginning in fourth quarter 2011, she says.   

"Amazon didn't expect to buy the building, but Vulcan, wanted to free up money for more development," says Chamberlin. "This is a good time to sell investment properties," she says. Seattle commercial real estate has become sought-after by institutional investors in the last couple of years, notes Chamberlin.

Vulcan has developed more than five million square feet of office space in the South Lake Union submarket, where the Amazon complex is located. It is one of strongest submarkets in downtown, with less than a 3% vacancy rate. "That is very low, given that overall, Seattle's office market vacancy rate is about 14%, "says Chamberlin. The strength of this submarket can be attributed to the strong technology and bio-medical businesses in the area, she says. "Microsoft has been the driver for the East Side market," including downtown Bellevue and the South Lake Union submarket is driven by Amazon."

Noting the strong investment sales market in the Seattle area, Chamberlin says, "The Amazon headquarters sale could well set a record," with regard to price, for all of North America."  

Institutional buyers, including the Principal Financial Group, Cole Real Estate Investments, JP Morgan Chase and Kilroy Realty Corp., among other institutional players, have gravitated to Seattle in the last couple of years, while foreign buyers started to show increased interest in the Seattle office market in late 2011, says Chamberlin

Federal Suit Alleges Bank of America 'Hustled' U.S. Agencies for Billions

Bank of America, no stranger to billion-dollar lawsuits, today faces another one - a $1 billion suit from the Justice Department.  The Oct. 24 complaint alleges the New York City-based bank fraudulently sold defective mortgages to Fannie Mae and Freddie Mac that triggered over $1 billion in losses for taxpayers and thousands of foreclosures.

The suit alleges the fraud was committed from at least 2008 through 2009.

In a prepared statement, the Justice Department said this is the first case involving Fannie and Freddie, which were the major purchasers of mortgage securities from commercial banks like Bank of America.

Huge mortgage losses at Fannie Mae and Freddie Mac forced a government takeover of both in September 2008. The two government sponsored enterprises (GSEs) were placed into federal conservatorship.

In his statement, Preet Bharara, U.S. Attorney for the Southern District of New York alleges Bank of America's fraudulent scheme was commonly known inside the bank as "the Hustle."

The suit alleges "the Hustle" was a nickname for the bank's "High-Speed Swim Lane," or HSSL program, designed to streamline the mortgage origination process. Instead, the government alleges it was "intentionally designed to process loans at high speed and without quality checkpoints, and generated thousands of fraudulent and otherwise defective residential mortgage loans."

The government says the program was started by mortgage lender Countrywide Financial, but continued after Countrywide was purchased by Bank of America in 2008. The fraud ran through 2009, the suit alleges.

"For the sixth time in less than 18 months, this office has been compelled to sue a major U.S. bank for reckless mortgage practices in the lead-up to the financial crisis," Bharara said in his statement. "The fraudulent conduct alleged in today's complaint was spectacularly brazen in scope."

Bank of America (NYSE: BAC) agreed to an $8.5 billion settlement last year in which it paid other investors burned by fraudulent mortgage securities. Those investors included money manager BlackRock (NYSE: BLK), insurer MetLife (NYSE: MET), investment management firm PIMCO and Goldman Sachs (NYSE: GS)

German Office Property Sales Up 50% in Last Nine Months

A relatively stable economic and employment status in Germany has generated office property sales of $8.22 billion (6.27 billion euros) over the last nine months, according to data researched by BNP Paribas SA's German real estate division.

In a prepared statement, the Paris-based bank said the sales surge was 50 percent higher than the comparable 2011 period and more than posted sales for all of the last five years. Berlin and Munich were investors' favorite buying locations.

The BNP statement noted office investments rose 172 percent in Berlin and 138 percent in Munich, Germany's most expensive city for workplace properties. But investments in Hamburg, Cologne and Dusseldorf declined.

"Safety-oriented investors see good conditions here due to the relatively stable economic and employment situation," Sven Stricker, head of investment at BNP Paribas Real Estate GmbH, said in his company's statement.  "Office investments have a good medium-term outlook, assuming the euro crisis doesn't escalate."

Investors are seeking a safe haven as they fear the euro zone's sovereign-debt crisis will worsen, Stricker said.

The German government predicts the country's economy will grow 0.8 percent this year. The German economy is Europe's largest. The economies of the 17 nations that share the euro are together forecasting a contraction of 0.4 percent, according to the European Central Bank

Outdoor Recreation' States Remain Top U.S. Travel Destinations; Gambling and Sports Related Travel Down in 2012

While the most popular U.S. states retained their tourist appeal this year ( Florida, California, Hawaii, N.Y. and Alaska) among American travelers, the allure of several other domestic destinations has increased.

For example, Louisiana, Michigan, Oregon and Washington, D.C., were the beneficiaries of increased tourism, while states like Alaska, Hawaii, Arizona and Tennessee saw slight decreases in interest.  At least that's what travel experts at MMGY Global/Harrison Group learned during their newly released survey, "2012 Portrait of American Travelers."

Meanwhile, many destinations that feature outdoor recreation now enjoy a statistically significant rise in interest - namely mountain areas such as the Utah mountain resorts, Lake Tahoe (Calif. and Nev.), Gatlinburg (Tenn.), and Pocono Mountains (Pa.). Coastal spots like the Mississippi and Florida Gulf coasts, Atlantic City (N.J.), the Outer Banks (N.C.) and South Carolina shoreline also showed rising tourism interest.

According to MMGY/Global Harrison Group, other destinations with rising popularity are those that offer unique visitor experiences such as historic Colonial Williamsburg (Va.) and St. Augustine (Fla.), wine-focused Napa Valley and Sonoma Valley (Calif.) and glitzy hotspot Las Vegas (Nev.).

International destinations with rising interest in visitation include Africa, the Middle East and Oceania (Australia, New Zealand and Pacific Islands, etc.). However, fewer U.S. travelers are interested in international trips overall, dropping to nine percent of all leisure travelers today compared with 11 percent last year.

Like Germany, Home Prices Also Rising in Austria

Austrians, wary of the Eurozone financial crisis, are placing their bets and their money these days in residential real estate. Like neighboring Germany, prices are rising in Austria, especially in the fabled city of Vienna.

Select Property, an international residential broker based in London, notes the outskirts of Vienna have shown an increased demand for property which is driving up the prices.

"People know that they can get a larger property with more living space for the same amount of money that you would pay for something much smaller in the city," according to the brokerage.

This has made for some dramatic increases in prices with apartments in Wiener Neustadt rising by 25 percent year-on-year and houses in Korneuburg increasing by an average of 17 percent.

The Mariahilf district in Vienna saw the average price per square meter rise to €4100 a rise of 16 percent.

Buy-to-rent property investors will also benefit from the slight increase in rental prices, which rose by 1.6 percent for the first six months of the year on an annual basis, the brokerage says.

Other areas which saw real estate price increases were Penzing where prices rose by 35 percent against 2011 and the suburban areas saw rises between 10 and 30 percent.

Select Property's Alexander Ertler said: "The fear over losing money through inflation and mistrust in the financial markets is encouraging increasing numbers of Austrians to invest and try and find security in the property market."

Financing, Eurozone Troubles Slow Real Estate Investments in Romania

Bucharest, Romania

Commercial real estate transactions in Romania are almost nowhere to be seen. CB Richard Ellis reports two first-half deals were valued at EUR 55 million ($70.3 million U.S.) That valuation was the lowest in Romania in the past six years.

The two transactions were the sale of the Nokia plant in Cluj to household producer De†Longhi, and theTimisoara-based City Business Center compound, acquired by the South African-registered investment fund NEPI.

Romania still remains an attractive market in terms of real estate transactions but the lack of financing and the Euro zone turmoil "have raised the investment risk and quelled investment appetite," reports The Diplomat Media Group in Bucharest .

In the Central and Eastern Europe (CEE) region, Russia and Poland registered the highest investment volume.

Office segment yields in Romania stabilized to 8 percent, while retail notched up 8.75 percent for commercial centers and 10.25 percent for storehouses, according to CBRE.

By comparison, in Warsaw, prime yields in office are at 6.25 percent, while on the industrial segment the figure is 7 percent. Retail in the Polish capital has an estimated prime yield of 6 percent. Similar values are registered in Prague and Budapest.

In the first half of 2012, Russia posted over EUR 900 million of transactions and Poland over EUR 800 million. The Czech Republic, in comparison, saw a transaction volume of EUR 180 million at six months. (1 euro = $1.2785 U.S.)

Residentual-Home-Construction.jpg Homebuilders across the U.S. are happy today, and for good reason. According to newly released stats from HUD and the U.S. Census Bureau, sales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 389,000 units in September. This is the fastest sales pace recorded since April of 2010. "Combined with consistent, positive reports on housing starts, permits, prices and builder confidence in recent months, today's data provides further confirmation that a gradual but steady housing recovery is underway across much of the nation," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. "Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase, assuming they can qualify for a good mortgage under today's exceedingly stringent guidelines."

Homebuilders across the U.S. are happy today, and for good reason.

According to newly released stats from HUD and the U.S. Census Bureau, sales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 389,000 units in September. This is the fastest sales pace recorded since April of 2010.

"Combined with consistent, positive reports on housing starts, permits, prices and builder confidence in recent months, today's data provides further confirmation that a gradual but steady housing recovery is underway across much of the nation," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. "Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase, assuming they can qualify for a good mortgage under today's exceedingly stringent guidelines."

U.S. Home Sales Slow in September, Yet Enjoy Biggest Median Price Increase Since 2005

According to the National Association of Realtors (NAR), September existing-home sales declined modestly, but inventory continued to tighten and the national median home price recorded its seventh back-to-back monthly increase from a year earlier.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 1.7 percent to a seasonally adjusted annual rate of 4.75 million in September from an upwardly revised 4.83 million in August, but are 11.0 percent above the 4.28 million-unit pace in September 2011.

Wyndham to Open First Hotel in Bahrain

Wyndham Grand Manama, Bahrain

Bahrain is getting its first Wyndham Hotel. The new five-star Wyndham Grand Collection hotel will be part of a 50-story mixed used architectural landmark in Bahrain Bay.

Bahrain Bay Development B.S.C. is a $2.5 billion waterfront district designed around vibrant neighborhoods of residential, commercial and retail spaces.

Set in this unique new development, the Wyndham Grand Manama will face the World Trade Centre, just a short distance from Bahrain Financial Harbour, making it well placed to cater to business as well as leisure travelers.

Wyndham Hotel Group recently confirmed plans for the first Wyndham Grand property in Bahrain following the signing of an agreement with Cooperation Investment House SPC to manage its prestigious  hotel  property.

Currently under development in the city of Manama, the Wyndham Grand Manama is expected to open by the end of next year with more than 260 spacious guest rooms ranging from 46 to 120 square meters (approximately 495 to 1,290 square feet). Covering 14 floors of a 50-story mixed use development, it will also comprise 500 square meters (nearly 5,400 square feet) of meeting space and a 900-square-meter ballroom (equivalent to nearly 9,700 square feet) on the building's top floor, offering stunning sea views.

Complemented by indoor and outdoor infinity swimming pools and separate health clubs for men and women, the development will also include five food and beverage outlets catering to a variety of tastes.

Upon opening, the hotel will join the Wyndham Grand Collection, an ensemble of distinguished hotels within the upscale Wyndham Hotels and Resorts brand. Wyndham Hotel Group, the world's largest hotel company with over 7,170 hotels, is part of Wyndham Worldwide Corporation (NYSE: WYN).

 "This is an incredibly dynamic and exciting development," said Bani Haddad, regional vice president Middle East & Africa, Wyndham Hotel Group. "Each Wyndham Grand hotel takes in some of the flavor of its destination and this modern, cosmopolitan setting will be reflected in the hotel along with historical Bahraini influences. It is a fantastic setting and a great property for this distinguished collection."

The Wyndham Grand Manama will face the World Trade Centre, just a short distance from Bahrain Financial Harbour, making it well placed to cater to business as well as leisure travelers.

"We are delighted and honored to work with Wyndham Hotel Group on the first Wyndham Grand hotel in Bahrain," said Ahmed AlQaed, managing director, Cooperation Investment House SPC. "By combining the Wyndham brand's authentic hospitality and high-quality service with modern corporate office spaces in one magnificent development at this prime location, we believe we are creating the best tourist and business destination this area will offer."

This will only be the third Wyndham Grand in Europe and the Middle East. The other two properties are the Wyndham Grand Regency Doha in Qatar and Wyndham Grand London Chelsea Harbour in the U.K.

Coeur D'Alene, a Paradise in the Panhandle

The Coeur D'Alene Resort sits at the foot of the lake. (Photo courtesy Coeur D'Alene Chamber of Commerce)

Coeur D'Alene is special. And you can see it the moment you turn off Highway 90 from Spokane.

To your left lies a little town with cobbled sidewalks and gas-lit streetlamps and green awnings and red-brick storefronts, behind which lie attractive little shops, eateries, and galleries. In front of you, shooting up into a clear azure sky, lies Coeur D'Alene Resort, one of the Northwest's premier resorts. And to your right lies an ice-blue alpine lake, from which rise 7,000 foot- mountains covered in deep-green forest.

Tucked up in the Idaho Panhandle, about 90 miles south of Canada, Coeur D'Alene is one of the prettiest towns in the Northwest. And the lake upon which it sits - Lake Coeur D'Alene - has 125 miles of shoreline.

Coeur D'Alene means "Heart of the Awl," a reference by early French traders to the earrings worn by the native Salishan people. And the Heart of the Awl is situated amidst a setting that no doubt took these French traders' breath away.

More than 125 miles of bays and inlets...(Photo courtesy Coeur D'Alene Chamber of Commerce)

On a sunset cruise with Lake Coeur D'Alene Cruises, you'll explore quiet bays and lagoons, some with magnificent, Western mansions several stories high. And you'll see the sun go down - not until after ten in summer - behind mountain ridges that it sprinkles with reds and purples and oranges and pinks.

At the foot of downtown is Tubbs Hill, a mini-mountain jutting out into the lake, which seems to offer stunning views around every turn. People come here to hike, rock-climb, picnic on one of the ledges overlooking the lake, row, sail, canoe, or kayak. And speaking of kayaking, if you take one out, you'll see bald eagles and ospreys flying overhead. And you'll explore isolated little coves where the only sound is that of your oars.

There are some cool surprises in this small town. . For example, Northern Idaho is not a place you'd associate with great olive oil - which makes a visit to Coeur D'Alene Olive Oil Company all the more interesting. And Coeur D'Alene Cellars produces distinctive syrahs, cabernet sauvignons, and chardonnays, all of which you can sample at their Barrel Room #6, an atmospheric wine bar that also serves local micro-brews.

About a half-hour outside of town is one of the most unusual mountain-biking experiences in the world. Situated in the Bitterroot Mountains at the Idaho-Montana border, at the Lookout Pass Ski Area, "The Route of the Hiawatha" is a long-abandoned railroad track (named after the "Hiawatha," which ran from the Northwest to Milwaukee) through a series of tunnels and 1,000-foot high wooden trestles. The longest of the ten tunnels is almost two miles long...and you can't see more than a foot or two in front of you! (In fact, you have to be looking very carefully even to see the Idaho/Montana marker on the border.) When you're out of the tunnels, and riding on the old wooden trestles, you'll see spectacular views deep into Montana.

The Route of the Hiawatha (Photo courtesy Coeur D'Alene Chamber of Commerce)

After your adventure, you can relax back in your room at the Coeur D'Alene Resort...which probably has a breathtaking view of the lake. Newly-renovated, the resort has luxurious guestrooms, three good restaurants and an elegant bar, and, believe it or not, a float-plane service operating from its dock (as well as the aforementioned Lake Coeur D'Alene Cruises). The Coeur D'Alene Resort also boasts a golf course (accessible by mahogany boat) with the only movable floating green in the world.

When you look out your window at the resort, you'll know why the owners of those Western mansions built homes here.

Mortgage Application Volumes Dip in U.S.

According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 12, mortgage applications decreased 4.2 percent from one week earlier. This week's results include an adjustment to account for the Columbus Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 4.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 14 percent compared with the previous week.

The Refinance Index decreased 5 percent from the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier.

This is the highest Purchase Index observed in the survey since early June 2012. The unadjusted Purchase Index decreased 9 percent compared with the previous week and was 12 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 82 percent of total applications from 83 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained constant at 4 percent of total applications. The HARP share of refinance applications increased to 22 percent from 18 percent the prior week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.57 percent from 3.56 percent, with points increasing to 0.44 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 3.81 percent from 3.74 percent, with points increasing to 0.42 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained constant at 3.34 percent, with points increasing to 0.82 from 0.71 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.87 percent from 2.88 percent, with points decreasing to 0.39 from 0.40 (including the origination fee) for 80 percent LTV loans. The 15-year contract rate has decreased for eight consecutive weeks and is a new record low in the survey. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.59 percent from 2.60 percent, with points decreasing to 0.35 from 0.36 (including the origination fee) for 80 percent LTV loans. The contract rate matched the lowest rate in the series. The effective rate decreased from last week

Washington D.C. Office Market Affected by Political Uncertainty, Yet Still Relatively Strong

The Washington, D.C. metro area continues its economic expansion, but at a slower pace than in prior expansion periods, according to a third quarter 2012 office market/economic report put out by Delta Associates and Transwestern. This slower growth is due partially to the uncertainty associated with possible sequestration and the end of Bush Era-tax cuts, tentatively scheduled for January, 2013, according to the report. 

In spite of fears about possible sequestration and the ending of tax cuts, there is continuing growth in the Washington metro, because of the strength of the regional economy, according to the Delta Associates/Transwestern report. Among those strengths are a highly-educated workforce, economic diversity (compared to the 1970s when there was more dependence on the federal government), growing technology and healthcare  industries, a strong housing market with sustained values and a plethora of corporate  and association headquarters, many of which have moved into the area in the past five years, says Elizabeth Norton, senior vice president and Mid-Atlantic research director at Delta Associates.

Regardless of these strengths, however, the Washington, D.C. area saw a payroll employment increase of only 24,300 in the 12 months ending July 31st, compared to a long-term annual average of 39,800. These statistics contrast with job growth during a typical expansionary period of 60,000 to 80,000, making this past year's job growth look anemic by comparison. Still, the unemployment rate for the Washington metro was 5.6% in July 2012, down from 6.0% the year before. This compares to the national rate of 8.3% in July 2012. The national rate went down to 8.1% in August 2012.

The Washington metro area office market had negative net absorption and a rising vacancy rate during the first three quarters of 2012, because demand was not enough to offset tenants vacating space, according to the Delta/Transwestern report. This was the result of several factors, including Base Realignment and Closure ( BRAC) Commission-related tenants moving out of privately-owned office space into government-owned space in addition to the fears about sequestration. Plus, many other kinds of tenants are consolidating and/or downsizing their operations.

"We expect the share of government leasing to remain limited for the foreseeable future, as Congress scrutinizes any large lease deals and agencies are forced to do more with less," although private sector leasing should gradually start to rise, according to the Delta Associates/Transwestern report. But significant growth in demand will not be felt until 2014 or 2015, when there will be more need for Class A space, says Norton.

Meanwhile, some General Services Administration (GSA) tenants are relocating to military bases, a trend that will be "continuous for the next handful of years," says Norton. Military bases are owned, rather than leased, which saves money for the government.

Johannesburg Fund Raises $250 Million for Mixed-Use Projects in Nigeria‚ Ghana and Angola

In an unprecedented move, Johannesburg-based RMB Westport, South Africa's second-largest financial-services company, announced the property unit of its investment banking arm has raised $250 million to develop real estate in West Africa.

The initial sites will be in Nigeria, Ghana and  Angola. Retail and mixed-use development will be the primary objective. Africa currently has strong demand for high-grade retail and commercial properties, according to Independent Online, a division of Independent Newspapers (Pty) Ltd. based in Cape Town, South Africa.

RMB Westport opened its doors in 2008 when Rand Merchant Bank (RMB)‚ through its Real Estate Investment Banking division entered into a joint venture with the Westport Property Group.

In an e-mailed company statement to the media, Michael O'Malley‚ Director of RMB Westport, said his company "believes in the African growth story. Over the past decade‚ African economic output has more than tripled‚ which is one of the many reasons we think that Africa today holds the greatest overall investment potential for all frontier markets globally."

O'Malley says the discovery of oil in Ghana will probably lead to a further increase in investor interest and subsequent demand for office and industrial space in West Africa. O'Malley has spent the past 20 years working on retail and mixed-use projects in 12 African countries.

RMB Westport is no newcomer to Africa. Some of RMB Westport's biggest projects, at various levels of completion, include Icon House and Accra Financial Centre (A-grade buildings in Ghana); Ikeja City Mall (the largest shopping mall in Nigeria); Osapa Retail (Phase I) and Project Wings (Office and retail property in Nigeria) and recently the Junction Shopping Center (retail property in Accra‚ Ghana).

Westport chief financial officer Alan Wilson states,  "Africa currently has the world's highest rate of urbanization. This migration‚ along with Africa's growing middle-class further reinforces the need for high grade office space and retail buildings in urban areas."

For example, Wilson says "the city of Luanda was built for a population of 300,000 and currently has over six million inhabitants."

Wilson says the International Monetary Fund (IMF) recently forecast Nigeria's economy to grow by 6.9% - a rate which‚ if sustained‚ will eventually lead to Nigeria overtaking South Africa as the largest economy in Africa.

Boston's Commercial Market Benefiting from High-Tech Activity, Financial and Legal Services Lagging

Downtown Boston

According to a third-quarter report by Jones Lang LaSalle on the US office market, there was a slight improvement in this sector, compared to the second quarter, but expectations for future growth have had to be "reset," because of concerns about the global and US economies. 

"The recovery has been limited to a handful of (geographic locations) dominated by energy and technology demand, mainly in Texas, Northern California and the Pacific Northwest," says Jones Lang LaSalle's New England Research Manager, Lori Mabardi. "But Boston appears to be bucking the East Coast trend of stalled momentum," by performing like a West Coast market, in that it is driven by high-tech and life sciences firms, she says.

The Boston metro had an asking rent growth of 1.4% in the third quarter and a drop in vacancy of 30 basis points. "But our market is contending with dual forces," says Mabardi. On the one hand, large firms are shrinking their space and becoming more efficient, while high tech and life science firms, as well as many start-ups, are growing and expanding their physical footprint.

Traditionally, Boston was dominated by financial and legal services, sectors which haven't turned the corner yet, says Mabardi. "Once we do, the fundamentals can improve dramatically," she says.

Boston has recovered 80% of the jobs lost in the recession, but not the same jobs, says Mabardi. "We're still above historical averages in terms of vacancies," she says. "There is little new office supply in Boston and what there is, is mostly build-to-suits, but as companies downsize, (leaving more space on the market)" there is an additional supply of office space, as if there had been new space built, says Mabardi.

In the third quarter, Class B office space was the bright spot in Boston, according to the Jones Lang LaSalle report. This segment had a 3.1% growth in asking rents, compared to a .4% asking rent growth for Class A space in the third quarter, both compared to the second quarter of 2012. "This is likely due to the organic growth, as opposed to M&A activity, in the high-tech and life sciences sectors in Cambridge and the Seaport district, in addition to continued spillover demand into the city's financial district and northern suburbs," says Mabardi.

New York City Still 'Top Dog' of Global Property Investment Marketplace; London and Tokyo Ranked Second and Third

According to Cushman & Wakefield's annual Winning in Growth Cities report launched today at EXPO REAL trade fair in Munich, low global interest rates and ongoing risk are luring investors towards commercial property markets in core global cities, with New York attracting the most investment during the last year.

The top 25 global cities have in fact strengthened their lead in the past year - increasing their market share to 56% from 46% in 2009. However while this dominant group will continue to be favoured by investors for their risk averse characteristics, they will in the future face increasing competition from a host of other cities according to the report.

Cushman & Wakefield's report highlights include:

• New York is the largest global investment market for second consecutive year - with volumes rising 18.9% to US$34.7 bn in the year to Q2 2012

• London took second place with 3.8% growth in investment volumes to US$ 29.3 bn (18% less than New York)

• Tokyo, Paris, Los Angeles and Hong Kong round out the top 6.  Los Angeles took top spot for investment in industrial, Shanghai for development sites and Hong Kong for retail.

Manhattan Residential Sales Slow 5% in Q3 as Listing Inventory at Seven Year Lows

According to Prudential Douglas Elliman's latest Manhattan Market Overview 3Q 2012, the Manhattan housing market showed seasonally stable pricing and sales activity. Smaller apartments continued to gain market share as mortgage rates continued to fall and city employment levels rose.

The sharply declining listing inventory reached a 7.5-year low, while the monthly absorption rate demonstrated a brisk market pace as it reached a 5-year low. All price indicators posted modest year-over-year declines, as 1-bedroom apartments gained 5% market share to represent 37.8% of all sales, edging out the 2-bedroom market as the largest market segment.

Co-Op and Condo Market Highlights:

• Quarterly pending sales rose as year-to-date closed sales lagged-- The pending sales index was 4.9% above year ago levels as summer contract signings were unusually heavy. Year-to-date closed sales lagged behind prior year totals by 2.9%, as 2011 saw more activity in the first half of the year.

• Listing inventory continued to decline sharply, reaching lowest level in 7.5 years-- There were 5,847 listings at the end of the quarter, 24.3% fewer than 7,726 total in the prior year quarter, marking the metric's lowest level since the first quarter of 2005. The monthly absorption rate fell to 5.9 months, the fastest market pace in five years.

• Prices showed stability. Indicators slipped as market share for 1-bedrooms jumped-- Median sales price slipped 2.3% to $890,000 from $911,333 in the prior year quarter. Market share of 1-bedroom sales jumped 5% to 37.8% over the same period.

The median sales price was $890,000, down 2.3% from $911,333 a year ago. Average sales price and average price per square foot slipped 1.4% and 2.4% from the prior year quarter to $1,444,463 and $1,103 respectively. Year-to-date, median sales price remained unchanged from a year ago at $850,000, while average price per square foot increased 0.6%, further reflecting price stability in the overall market.

There were 2,952 sales this quarter, the second highest total since the credit crunch began four years ago, second only to the prior year quarter total of 3,106. Sales in the first half of 2012 fell just short of sales in the first half of 2011. While there was a 5% decline in third quarter sales from a year ago, signed contracts increased 4.9%.

After a relatively slow summer in 2011, sales activity remained unusually high over the 2012 summer months, suggesting a possible stronger finish to the year. Average monthly maintenance was $1.62 per square foot per month, up 6.6% from $1.52 in the same period last year. Despite listing inventory continuing to drop, declining 24.3% to 5,847, its lowest level since the first quarter of 2005, only 8.5% of all sales sold for more than their list price at time of contract, down from 10.1% in the prior year quarter. As inventory fell, older listings were absorbed, resulting in a jump in days on market from 119 in the prior year quarter to 191. Listing discount increased from 4.4% to 7.2% over the same period.



The Co-Op Market

• Price indicators were mixed as both entry-level and high-end sales rose-- The combined studio and 1-bedroom market share was 55.2%, up from 53.7% in the prior year quarter. The 3- and 4-bedroom market share jumped from 8.4% to 15.3% over the same period.

• Most co-op sales in five years-- There were 1,728 sales in the third quarter, 31.2% more than in the year ago quarter, and the highest number since 2007.

• Listing inventory fell sharply-- There were 3,136 listings at the end of the third quarter, 25.1% below year ago levels, resulting in a 5.4 month absorption rate, the fastest market pace in five years.

The median sales price edged 0.7% lower to $700,000 from $705,000 largely due to the drop in market share of 2-bedroom apartments. Typically the largest category, this segment fell to a 29.4% market share from 37.9% in the same period last year. Average sales price for the third quarter edged 0.8% higher to $1,216,364 from $1,206,770 in the same period last year. Average price per square foot slipped 2.2% to $969 from $991 in the prior year quarter. There were 1,728 sales in the third quarter, 31.2% more than 1,317 in the same period last year. Listing inventory fell 25.1% from 4,187 to 3,136 over the same period. Co-ops accounted for 58.5% of all apartment sales and 53.6% of all active apartment listings. The combination of rising sales and falling inventory resulted in a 5.4 month absorption rate, the fastest market pace in 5 years. Days on market continued to rise, reaching 191 days from 103 days in the prior year quarter, this high level of marketing time indicating that the market sold off older inventory as new listings failed to keep up with the pace of sales. The listing discount jumped to 7.7% from 2.6% in the year ago quarter. The monthly maintenance charge for all sales increased 3.8% from $1.59 per square foot per month in the prior year quarter to $1.65.

 

London's AXA Investment Group Raises $1.8 Billion; Aims for $2 Billion

With European investors hungry for fresh investment capital, London-based AXA Real Estate Investment Managers announced it has raised $1.8 billion (1.4 billion euros) to loan projects in The Netherlands, Sweden, Norway, Finland and Switzerland. The new funds raises AXA's lending chest to 7 billion euros for the year to date.  One euro equals $1.30 U.S.

AXA says it expects to raise another two billion euros by the end of this year. The new tranche of fund-raising follows 1.3 billion euros in investments made by AXA Real Estate for the first half of 2012.  AXA Real Estate Investment Managers is a subsidiary of AXA Investment Managers (AIM)

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Amazon Buys Its 11-Building Seattle Headquarters Campus for $1.16 Billion

Signaling that near-future growth is on the way, Seattle, WA-based Amazon.com, founded by entrepreneur Jeff Bezos, has contracted to purchase its 11-building, 1.8-million-square-foot South Lake Union headquarters campus from Vulcan Real Estate for $1.16 billion.

The deal is expected to close before the end of the year. Seattle real estate sources call it the biggest commercial real estate deal in Seattle's history. The sales price of the four-year-old property equates to $644 per square foot.

Vulcan Real Estate was founded by Microsoft co-founder Paul Allen. He began building the complex in 2008 after Amazon signed long-term leases that expire in the 2020s. Allen is selling the property to rebalance its investment portfolio and free up capital for more development in  the booming South Lake Union neighborhood of Seattle, according to published media reports.

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California Healthcare Investment Partners' Portfolio Hits $1 Billion

Newport Beach, CA-based American Healthcare Investors and Griffin Capital Corp. announced their $108.5 million acquisition of three Los Angeles-area hospitals and three medical office buildings in Frisco, TX and Jasper, GA. The purchase brings the partners' portfolio value to $1.1 billion on 121 buildings in 26 states.

"Reaching the $1 billion mark in aggregate portfolio value, based on purchase price, is a key milestone for Griffin-American Healthcare REIT II," said Danny Prosky, a principal of American-Healthcare Investors and president and chief operating officer of the REIT.

He added, "Size and scale can be very important in terms of real estate portfolio operations, efficiency and potential enhanced value of the REIT as a whole. The REIT has now grown to the size where it is one of the largest and most significant owners of healthcare-related real estate in the country."

England's St Mellion Resort Debuts New Golf Homes

St. Mellion International Golf Resort, England

Unlike America, finding a home on a golf course is not as commonplace in England. Or the rest of Great Britain for that matter.

Fans of St Mellion International Golf Resort, however, now have a rare opportunity to purchase residential overlooking the resort's Jack Nicklaus Signature Golf Course. According to the developer's of this new "Esprit" enclave of homes in the heart of St Mellion, the development comes with an "investment guarantee scheme" offering an 8 percent return for three years to investors.

St Mellion, located near Plymouth in Cornwall, is noted for playing host to 12 PGA European Tour events. The attractive "investment guarantee" offer is available only to purchasers of the first 27 of the 66 proposed properties. The homes situated in the heart of the St. Mellion overlooking both the Nicklaus golf course and Kernow Golf Course.

The first properties are planned for completion by Easter 2013. The properties range in size from 2-bedroom, 2-bathroom apartments (641 square feet) and go up to 4-bedroom detached homes (1,410 square feet). Prices are $328,000 to $720,000.

Built with an energy efficient timber frame the homes feature high quality fixtures and fittings, under floor heating throughout, bespoke modern kitchens, bathrooms and oak staircases. All rooms on the upper floors are characterized with high vaulted ceilings.

The built-in rental revenue scheme runs for three years from the date of purchase, according to the developers.  During this period the developer will cover all other running and servicing costs with no other costs payable by the purchaser. Owners can utilize their property for three weeks within any one year, in low and medium seasons, with the option to have a reduced rental payment if using it for longer periods.

St Mellion home

Though England overhauled its tax code on rental properties, the developer says there are still favorable tax breaks for savvy purchasers looking to make an investment in a furnished holiday rental property. For example when the property is sold, the rate of capital gains tax charged on any rise in the value of the property is less than half the usual 28% rate at just 10%.

Early purchasers will benefit from free membership for three years to the resort's two golf courses and other leisure facilities on site such as their health club and spa with three separate indoor swimming pools, a large gymnasium, an Elemis spa, crèche, kids club, tennis courts and bowling greens.

The resort also has its own four-star 80-room hotel featuring an onsite brasserie, fine dining restaurant, bars, and golf clubhouse. All early purchasers will receive discounts on food and beverages within the Resort.

The developer are anticipating the properties will be popular with investors looking to rent them out as holiday lets and the golfing and leisure facilities onsite will give owners a much longer rental or "letting" season.

The demand for self catering holiday lets has soared by 20% since before the financial crisis, according to a recent Knight Frank report on second homes. The trend is expected to continue with Deloitte and Oxford economic forecasting that spending by Britons holidaying at home will rise by a cumulative 30% by 2020. The southwest region dominates the domestic tourism market accounting for one in every five trips taken by holiday makers last year

U.S. Foreclosure Activity Dips to 5-Year Lows in September, Says RealtyTrac

Foreclosure starts reverse upward trend



First-time foreclosure starts, either default notices or scheduled foreclosure auctions depending on the state's foreclosure process, were filed on 284,720 U.S. properties during the third quarter, an 8 percent decrease from the second quarter and also an 8 percent decrease from the third quarter of 2011.

Nationwide foreclosure starts decreased on an annual basis for the second straight month in September following three straight months of annual increases. Foreclosures were started on 87,066 U.S. properties during the month, down 12 percent from August and down 15 percent from September 2011.

September foreclosure starts decreased on an annual basis in 31 states, including California (45 percent decrease), Arizona (34 percent decrease), Michigan (22 percent decrease), Georgia (21 percent decrease) and Texas (19 percent decrease).

States with the biggest annual increases in foreclosure starts in September included New Jersey (424 percent increase), Pennsylvania (134 percent increase), New York (95 percent increase), Washington (60 percent increase) and Florida (24 percent increase).

Florida, Arizona, California post top state foreclosure rates in third quarter
Florida foreclosure activity in the third quarter increased 14 percent from a year ago, the third consecutive quarter with an annual increase and boosting the state's foreclosure rate to highest in the nation. One in every 117 Florida housing units had a foreclosure filing in the third quarter, more than twice the national average.

Florida's foreclosure rate also ranked highest in the nation in September, the first time since April 2005 that Florida has held the No. 1 spot. Florida foreclosure starts in September increased 24 percent from a year ago -- the 11th straight month with an annual increase -- and Florida bank repossessions (REO) increased 23 percent year over year -- the ninth straight month with an annual increase.

Arizona REOs in September increased 2 percent from a year ago, the first year-over-year increase in Arizona REOs since November 2011, but the state's overall foreclosure activity was down on an annual basis both in September and the third quarter thanks to big drops in foreclosure starts. Despite those decreases, one in every 125 Arizona housing units had a foreclosure filing during the third quarter -- the nation's second highest state foreclosure rate.

California also posted a foreclosure rate of one in every 125 housing units with a foreclosure filing in the third quarter, but the state's foreclosure rate was slightly lower than that of Arizona, ranking No. 3 among all states for the quarter. A total of 109,369 California properties had foreclosure filings during the quarter, the highest of any state but still down from the previous quarter and a year ago.

California foreclosure auctions and REOs in the third quarter both increased from the previous quarter, but foreclosure starts (NODs) dropped 19 percent from the previous quarter. California foreclosure starts in September dropped to their lowest level since December 2006 -- a 69-month low.

Other states with foreclosure rates ranking among the top 10 in the third quarter were Illinois (one in 126 housing units with a foreclosure filing), Georgia (one in 151), Nevada (one in 158), Ohio (one in 197), Michigan (one in 201), South Carolina (one in 215), and Colorado (one in 216).

Days to foreclose at record 382 days, legislation extends process in some states
U.S. properties foreclosed in the third quarter took an average of 382 days to complete the foreclosure process, up from 378 days in the previous quarter and up from 336 days in the third quarter of 2011. It was the highest average number of days to foreclose going back to the first quarter of 2007.

The average time to complete a foreclosure increased substantially from a year ago in several states where recent legislation and court rulings have extended the foreclosure process. These states included Oregon (up 62 percent to 193 days), Hawaii (up 62 percent to 662 days), Washington (up 62 percent to 248 days) and Nevada (up 42 percent to 520 days).

The average time to foreclose decreased from a year ago in 15 states, including Arkansas (down 49 percent to 199 days), Michigan (down 15 percent to 226 days), Maryland (down 9 percent to 541 days), California (down 8 percent to 335 days), and New Jersey (down 4 percent to 931 days).

New Jersey documented the second longest state foreclosure timeline in the third quarter behind New York, where the average time to complete a foreclosure was 1,072 days for properties foreclosed during the quarter. Florida registered the third highest state foreclosure timeline, 858 days -- down slightly from 861 days in the previous quarter -- and Illinois registered the fourth highest state foreclosure timeline, 673 days.
 

Realogy Riding High as Today's IPO Raises $1 Billion in New Cash

Seeking to reduce its debt to about $4.5 billion, Realogy Holdings Corp. (NYSE: RLGY) announced it has raised $1.08 billion in an initial public offering. The Parsippany, NJ-based company sold 40 million share at $27 each. The shares will be listed on the New York Stock Exchange under the RLGY symbol.

The company had offered the shares initially in the $23 to $27 range. Realogy owns Coldwell Banker and Century 21, major players in the U.S. residential real estate brokerage industry. Realogy is controlled by New York City-based Apollo Global Management LLC (NYSE: APO), headed by Leon Black.

Bloomberg reports Apollo, which was set to maintain a 50.2 percent stake in Realogy after the IPO, sought to take the company public almost six years after buying it as U.S. home prices headed for their worst collapse since the 1930s.

Based on filings at the Securities and Exchange Commission, at the midpoint of the IPO price range, Apollo's stake would be valued at $1.63 billion. New York City-based Paulson & Co., the hedge fund run by former Treasury Secretary John Paulson, was set to own a 10 percent stake in the company following the IPO. Realogy's ownership stake would be about 31 percent.

The Realogy IPO arrived at the same time that Apollo prepares to raise a new fund of $10 billion to $12 billion, according to informed sources.

Berry Plastics Group Inc. (NYSE: BERY), also owned by Apollo, completed an IPO last week, pricing the shares at the low end of the marketed range.  Apollo-owned companies CKE Inc. (CK) and Momentive Performance Materials Holdings LLC shelved offerings this year.

Apollo invested $1.05 billion in Realogy in the buyout, which was valued at $6.8 billion and completed in 2007, according to data compiled by Bloomberg. The firm announced the acquisition in December 2006, five months after home prices peaked, according to the S&P/Case-Shiller index.

Bloomberg reports that after the IPO and related transactions that convert debt to equity, the midpoint price would give Realogy net debt of $4.5 billion as of June 30. It would have an enterprise value of $7.77 billion, or about 16 times earnings before interest, taxes, depreciation and amortization of $500 million in the 12 months through June 30.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. were hired to manage Realogy's IPO.

A Mountain Camp in Africa

Nature has carved out a rugged, beautiful land

Hidden away in its own private corner of Africa, away from the glamour spots and the business centers, the country of Namibia is filled with natural wonders quite different from most of the rest of the continent. It remains pretty much undiscovered by the travelers who've been everywhere else and done everything else...so you can enjoy the memorable scenery and wildlife without a hundred other people snapping photos right next to you. (Indeed, there won't be a whole lot of Namibians next to you, either - there are only about two million of them, in a territory four times the size of the United Kingdom.)

Those two million spread-out souls (only six per square mile) inhabit a land of stark landscapes and sweeping vistas carved out by nature over the ages. In the past, much of the interior was inaccessible to foreigners. But not so much anymore. And one of the best places to see it is from the vantage point of a real mountain camp.

Etendeka Mountain Camp sits in the foothills of the dramatic Grootberg massif, amidst the ancient volcanic soil of northern Damaraland. The mountains here are flat-topped, and lava flows from the past couple of million years have left them strewn with boulders.

How many bars have views like this?

There are ten well-equipped tents at Etendeka, all scattered around (and connected by pathway to) the main dining tent. Each tent has recently been upgraded, with luxury mattresses and high-quality cotton linens, and re-done bathrooms. However, one thing hasn't changed - when you want to wash off the grime after a day of exploration, you'll be doing it in a traditional bucket shower.

The food is simple and wholesome, and based on local products and crops. It's cooked either on solar or open fires, and many guests enjoy it outside, under a star-filled sky. Dining is family-style buffet.

This is no jungle, but, rather, a collage of basalt mountains; undulating, desert-like sand dunes; and riverbeds shaded by the ubiquitous Mopane tree. The overwhelming impression, to the naked eye, is of a dry, unforgiving landscape. But you'll quickly discover that this landscape is very much alive, and host to a diverse collection of wildlife and vegetation.  Desert elephant and black rhino wander the boulder-strewn valleys along with cheetah and huge herds of oryx, who shake the ground when they run. Your guides will lead you out on exploratory hikes, as well as in open vehicles which afford up-close views of the wildlife. They'll point out the hoof prints of the mountain zebra...and the lions that are on their trail. Scorpions prowl behind volcanic rock shards, and snake eagles drift overhead, hunting for their evening meals.

A room with a view

Etendeka Mountain Camp is not for everyone. It's for the traveler who wants an off-the-beaten-path experience in the middle of nature at its most primeval. It's definitely rustic. It's a traditional tent camp, with the emphasis not on luxurious amenities, but on the natural surroundings - which look exactly as they must have looked thousands of years ago. And it's won numerous awards for its conservation ethic (such as using solar energy).

Dennis Liebenberg, co-owner of Etendeka, has been running the property for the past 20 years. He knows every inch of this rugged land. And his wonderful nighttime stories will remind you of scenes from the famous movie, "Out of Africa." 

Afterwards, you'll fall asleep to the sounds of authentic Africa.

Results of Trepp Bank Stress Tests: 1 in 8 US Banks Tested at Risk

When Trepp, LLC released its first Capital Adequacy Stress Test Report of U.S. banks on Wednesday, October 10th, one of the key findings was that commercial real estate exposure was a significant factor in a bank's failure of the test. CRE losses comprised nearly 40% of loan losses for banks that failed the test. "Commercial and industrial lending represented a secondary source of distress, with 24% of forecasted losses for the banks that failed the test," according to the Trepp report.

Trepp used its own model to evaluate the effects of various kinds of stress on the balance sheets and income statements of more than 6,000 banks. "This initial round of tests resulted in one in eight banks receiving a 'failing grade,'" according to the Trepp report. The company's model is adapted from the framework used by the US Federal Reserve Bank's Comprehensive Capital Analysis Review (CCAR) Stress Testing of the 19 largest banking institutions in March 2012.

Trepp's Capital Adequacy Stress Test (T-CAST) combined individual bank data with severely adverse inputs to create hypothetical scenarios for earnings, capital and asset performance for a nine-quarter projection period.

Florida Welcomes Crush of Canadian Home Buyers

If last year was the 'Year of the Brazilians' in Florida, 2013 is shaping up to be the 'Year of the Canadians.' At least that's the attitude of many Sunshine State real estate professionals and industry experts.

This sunny sentiment was especially evident this Wednesday at a sold Fort Lauderdale event hosted by the Broward Council of the Miami Association of Realtors. Dubbed, "Doing Business with Canada," the event was attended by more than 130 association members and affiliates, including guest speakers Madame Louise Leger, Consul General of Canada in Miami, South Florida condo expert Peter Zalewski of Condo Vultures and real estate broker Michelle Farber Ross, whose MMD Realty partner is Hall of Fame quarterback and Florida resident Dan Marino.

Other featured speakers were certified accountant Mark Chaves, senior partner with DaskalBolton, immigration attorney and EB-5 expert Larry Behar and EB-5 approved real estate developer Rodrigo Azpurua of Riviera Point Holdings.

Madame Leger, former Canadian Ambassador to Panama and Costa Rica, kicked off the event enlightening attendees with a steady dose of strong economic news as it relates to Florida and Canada's long-term relationship.

For instance, Madame Leger pointed out that Florida-Canada ties represent $7.6 billion in bilateral trade and some 300 Canadian-owned companies provide high-wage employment to 24,300 people across Florida. In all, 557,100 Florida jobs are dependent on Canadian trade and investment, including airline manufacturer Bombardier, Blackberry manufacturer RIM, Cirque du Soleil retailer Circle K and tech company Citrix Systems to name a few.

Miami Association of Realtors "Doing Business with Canada" Event

On the tourism front, 3.6 million Canadians visited Florida in 2011, spending approximately $4 billion. The total number of Canadian tourists more than doubles Florida's second-largest source of tourists: Brazil. As Madame Leger said jokingly, much to the contrary, Brazilians aren't the only foreigners coming to Florida each year.

Indeed, and once Canadians get a taste of Florida, they're increasingly putting up more permanent roots. For example, Canadian buyers represented 31 percent of Florida's international real estate purchases in 2011, according to the National Association of Realtor's August 2012 report, "Profile of International Home Buyers in Florida."

That's more than the number of buyers from the next four closest countries combined: Brazil (9 percent); United Kingdom (5 percent); Venezuela (7 percent) and Argentina (5 percent).

To sum it up, Canada is Florida's No. 1 international economic development partner when measured by the combined impact of bilateral trade, foreign investment, real estate purchases and tourism.

So long as the Canadian dollar remains slightly stronger than the U.S. dollar and the Canadian economy remains on relative stronger fiscal footing, Florida should continue to benefit from Canuck-led capital seeking safe havens and strong returns in the coming year(s).

One place Canadians are clearly focused on is the value-driven South Florida tri-county condo market of Miami-Dade, Broward and Palm Beach, which was devastated during the Great Recession.

Farber Ross, broker/managing partner of Fort Lauderdale-based MMD Realty, has been specializing in Canadian buyers and investors for a couple years.

Uruguay is Getting First Hyatt Hotel Property

Hyatt Montevideo

Hyatt Hotels Corporation recently confirmed the deal when Hyatt announced it entered into a management agreement with Dilony S.A.  Dilony expects the new 167-room hotel to be open in 2015 in Montevideo, and the Hyatt-branded property brings the total number of announced Hyatt-branded hotels under development in Latin America to 14.

Hyatt's latest Latin American property will be situated along the Rambla Republica del Peru, a major thoroughfare along the coastline of Montevideo.

"We are excited to work with Dilony S.A. on the first Hyatt-branded hotel in Uruguay," said Pat McCudden, Senior Vice President, Real Estate and Development, Hyatt Hotels & Resorts. "This project is an important step in our broader plans to establish Hyatt properties in all of the major gateway and capital cities in Latin America, and we believe that the Hyatt brand and the excellent location of the hotel in Montevideo will have strong appeal to business and leisure travelers visiting the region."

Located in Montevideo's Pocitos neighborhood, the Hyatt Montevideo will be in close proximity to many of area's business and leisure districts, including Ciudad Vieja, the World Trade Center and the Montevideo Shopping Center. Additionally, Carrasco International Airport is easily accessible from the hotel.

Of the hotel's 167 guestrooms, 14 will be suites that range in size from 484 to 816 square feet (45 square meters to 80 square meters). The hotel will also offer an all-day dining restaurant, a lobby lounge, a fitness center, an indoor pool, and more than 6,200 square feet of meeting and event space.

"We are pleased to work with Hyatt on the first Hyatt-branded hotel in Uruguay," said Daniel Weiss, President of Dilony S.A. and Director of Weiss Sztryk Weiss, the developer group. "We appreciate Hyatt's commitment to providing authentic hospitality to its guests, and we believe Hyatt Montevideo's excellent location along the Rambla and the sea coast will deliver an exceptional hospitality experience to guests visiting Montevideo."

As of June 30, 2012, Chicago-based Hyatt Hotels Corporation consisted of 492 properties in 45 countries and six continents.

Peru Woos Hotel Investors With Easy Tax Credits and Ready Development Loans

The government of Peru, a western South American republic with a population of 30 million, has launched a campaign to attract foreign hotel investors. The country, one of the smallest on the continent with a land mass of only 497,000 square miles, are offering easy tax credits and quick development loans.

Andina, an online news outlet owned by Peru News Agency in Lima, reports the country's successful mining industry is providing a pipeline for higher incomes, leading to more domestic travelers and a demand for more quality hotel rooms. Peru is following Brazil and Colombia in courting outside capital for its tourism and hospitality industries.

"The government is working to promote tourism because we know it's an activity that creates jobs enormously and also brings investment into the region," according to Claudia Cornejo Mohme, Peru's Deputy Minister of Foreign Trade and Tourism

"The flow of tourism is very positive for us. When we speak about tourist infrastructure, we have a lot of room to grow," the official said.

Previously, many of the hotels in Peru were state-owned and managed by third parties. But today, the country is inviting outside investors to help grow the industry,

According to Luis del Carpio Castro, head of projects, tourism and real estate for Proinversión, a Lima-based private-investment promotion agency, foreign investors who plan to invest  more than $5 million in Peru can receive tax incentives and tax returns even before they complete a total investment transaction or complete a proposed development.

He says current loan interest rates run at about 6% to 6.5% and can extend up to 10 years.  Investment requires 40% to 50% loan to value.

Lost In Time On the Dalmatian Coast

Hvar has a stupendous natural back-drop. (Courtesy Croatian Tourist Board)

Twenty years ago, this coast was trampled by the footsteps of soldiers, and pock-marked by the scars of war. Now, though, the Dalmatian Coast of Croatia - which wasn't yet an independent country in those days - has taken its place among the famed "coasts" of Europe.

Here, the ambience is an endearing mix of ancient architecture and buzzing Vespas, of cliffside villages and mega-yachts, of cobblestoned streets worn smooth by the ages and nightclubs that never close. Of some 350 miles of beach and a thousand islands (17 of which are inhabited), each with its own distinct history, architecture, and special flavor.

The biggest city on the Dalmatian Coast is Dubrovnik, a white-washed, cliff-hugging, seaside city now considered Europe's most beautiful by many. Overlooking the Adriatic from behind ancient fortress walls, Dubrovnik's streets have been trod by a dozen conquerors over the ages, from the Romans to the Venetians to the Austro-Hungarians to the Germans. Many have left their marks on the city's architecture. The Roman influence, for example, is evident in Gundulic Square (which transforms from a café-centric social center at night into a colorful farmer's market by morning), and the orange rooftops are reminiscent of Tuscany.

In many of Dubrovnik's ancient streets, you'll be enveloped by the aromas of jasmine or lemon trees, and pushcart vendors selling the ubiquitous olive soap. And you'll come across fascinating cultural clashes every time you turn a corner, from the stolid medieval monasteries to the eclectic bars filled with millionaires just off their yachts.

The ancient city of Dubrovnik juts out into the blue Adriatic. (Courtesy MIR Corporation)

The islands of the Dalmatian Coast are linked by a ferry system, making many of them accessible from Dubrovnik. One of them is Brac, which, until recently, was known mostly for its white-marble quarries. Now, though, Brac's biggest signature is its beach, called Zlatni Rat - "Golden Cape" - populated by the beautiful people. Your ferry will dock at the small town of Bol; from there you can head into the mountainous interior for some exploration.    

Hvar is considered the "hippest" island on the Dalmatian Coast. As your ferry edges into Hvar harbor, you'll see thousand-year-old towers and alleys back-dropping a fleet of yachts the size of football fields. And you'll smell the island's ubiquitous aroma of lavender, growing wild all over and spilling from the tops of pushcarts.   

On the island of Korcula, the predominant scent is that of pine. Korcula is anchored by the town of the same name, with a stone-wall-enclosed Old Quarter dating back to Venetian rule in the Tenth Century. In this part of town, the streets are narrow and winding and dotted with green windowsills and shutters, and adorned by arched bridges and ornate balconies. The town of Korcula claims to be - along with a dozen other European towns - the birthplace of Marco Polo.

White walls, red rooftops, green shutters. (Courtesy MIR Corporation)

The Dalmatian Coast is filled with beautiful contrasts. If you want to bathe in the aura of European royalty and their mega-yachts while sipping a drink in a waterfront bar, you can. If you want to hike in the mountains, in wildflower-filled countryside without another human being, you can. If you want to wander Medieval alleys where not much has changed in a thousand years, you can. And if you want to find a secluded spot on a beautiful beach, you can.

(Miami, FL) - Grove at Grand Bay

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Terra Group, Miami's leading real estate development company, is pleased to unveil its most innovative development to date, and one that is destined to be an architecturally-significant landmark in South Florida: Grove at Grand Bay. In collaboration with the award-winning architecture and design firm Bjarke Ingels Group, also known as BIG, and landscape architecture legend Raymond Jungles, Grove at Grand Bay will leave an unmistakable imprint on the prestigious South Bayshore Drive community, redefining luxury and breathing new life into Coconut Grove for decades to come. Upon completion of construction, the project will also receive LEED Certification with a gold designation, the first such structure in Coconut Grove.

"Grove at Grand Bay's impressive aesthetic and unparalleled service are tantamount to the evolution of Coconut Grove and raises the bar to Olympic heights," says Pedro Martin, Chairman, Chief Executive Officer and Founder of Terra Group. "Within the next three years, the area will have completely evolved and Grove at Grand Bay will have proven to be the bellwether of profound change."

Widely regarded as one of the most important architects to watch, Bjarke Ingels seamlessly translates Terra Group's grand vision of designing an aerie imbued with a unique sense of place. To say the results are stunning is an understatement: two glass towers in a pas de deux appear to float over Raymond Jungles' lush, canopied oasis, beckoning to Biscayne Bay and beyond. Renowned for his creative and ecologically sensitive landscape architecture, Jungles' design capture the natural beauty of the neighborhood and magnify it with ample green spaces.

Rising 20 stories over the bay-front, Grove at Grand Bay will showcase 96 elegant and expansive residences with panoramic views from every angle. Whether outdoors in Jungles' verdant gardens in the shade of the buildings' twisting facades or inside the glass jewel box-like homes, residents will fully experience and relish living amid the open air. World-class amenities include private butler service, private elevators, two-car garages, wrap-around terraces, rooftop swimming pools, a wellness spa and fitness center, a pet spa and much more.

"The powerhouse design team of BIG and Raymond Jungles makes this South Florida's most exciting new development," adds David Martin, President and Chief Operating Officer of Terra Group. "Our 'think tank' model embodies a design-driven approach to development, avoiding pitfalls and upending assumptions developers typically encounter when building a residential property. We pride ourselves on creating environments where people are viscerally and emotionally affected by their surroundings; we are about intelligent luxury."

BIG, led by Danish architect Bjarke Ingels who recently received Wall Street Journal's 2011 "Innovator of the Year in Architecture" award, is creating the residences and amenity spaces. Raymond Jungles, the landscape architect who designed the grounds at Lincoln Road in Miami Beach and the New World Symphony's rooftop garden, will produce the outdoor spaces, including terraces, pools and walking paths. Rounding out the group is Nichols, Brosch, Wrust, Wolfe + Associates who provides architectural and planning services.

The interior design of the residences at Grove at Grand Bay will be just as spectacular as the building's exteriors. With an open flow-through floor plan, each residence will showcase 12' ceilings and 12' floor-to-ceiling windows, a first among Florida developments, and spacious outdoor terraces with wraparound balconies that create a continuous indoor/outdoor living environment. Additional residential features include private elevator access to individual units, Italian-designed kitchens, Miele appliances, and Dornbarcht fixtures.