Santa Monica Property Blog

MULTIFAMILY REAL ESTATE LOANS TO EXCITE YOU

By Jodi Summers

Investors know, multifamily properties have been one of the most desirable real estate 

purchases throughout the downtown. GRMs are down, and properties now have an 

impressive amount of upside potential because of recent rent concessions. Problem

has been that the loan market being what it’s been has not made getting a loan easy.

Thankfully, that’s all starting to change.

A variety of multifamily small loan packages are coming to market. Globest.com 

suggests Chicago-based Aries Capital, through subsidiary Aries Multifamily; Alliant 

Capital in Anaheim, CA; and New York City-based Centerline Capital, through its 

agency lending group. All of these companies have opened small lending programs

during the past year. It is reported that the debt typically is up to $5 million, and is 

sometimes obtained through the agencies' small lending products. 

 Prudential Mortgage Capital Co. has a unique program that addresses debt for 

unstabilized properties. Known as the Agency Gateway program, it caters to 

apartment owners looking to refinance or buy assets that currently don't 

qualify for Fannie Mae or Freddie Mac financing. Apartment properties that 

would qualify include well-located, completed or renovated properties that have 

not yet reached stabilized occupancy levels. 

"The improving economy and upward growth in employment are positives for

Multifamily properties," observes Ted Hopkins, a PMCC principal and portfolio 

manager of Agency Gateway. "We feel it's time to get in there and help multifamily 

properties get stabilized." 

Ranging in size from $5 million to $25 million, the Agency Gateway loans run for 

terms of six to 24 months, until the property is stabilized. 

The deals are considered on a case-by-case basis and Hopkins not that the 

pricing is "very competitive. That is one factor that we rely on, plus the fact that

 we know multifamily product very well. Each loan is tailored to the individual property." 

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http://www.globest.com/news/1659_1659/insider/184943-1.html

http://www.mortgageorb.com/e107_plugins/content/content_lt.php?content.5818

http://www.centerline.com/products/index.html

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http://www.vector-logos.com/tmb.php?id=5038

Santa Monica Pier Twilight Dance Series Needs Your Help

Edited by Jodi Summers

Budgets are being cut everywhere…and a number of the concerts may be cut from the Santa Monica Pier Twilight Dance Series, unless you help.

The board of directors of the Santa Monica Pier Restoration Corporation has given a deadline of March 24, two weeks from now, by which to raise $93,000 to complete the budget of the ten concert series.

Donations are needed. The Santa Monica City Council has lead the fund raising challenge with a grant of $35,000 to the series. Currently, it’s believed that the City has funding for seven concerts – looking to reach funding for a full 10 performances.

$57,000 more to be raised. Respond to the city’s challenge by donating today! – Click here to make a difference. https://www.paypal.com/us/cgi-bin/webscr?cmd=_flow&SESSION=fPWWbmwof1OyikLcka41ycsxvNWgd6K_ogtXeQWUtBCxRXjplLwAdnmtNhC&dispatch=5885d80a13c0db1f059ee17e99acf195b5f3a4b6a78dddb43ff8dd61b662c86b

**

http://campaign.constantcontact.com/render?v=001u8SjZbUCyfNOSBaTTmRh9wNV84TISY85hcdwXG6k5HMs0IyBaXJC9QAFI5eesjrPf52nM0KKxJpSZH6z97VtH8OA-LpdNIzqlbvN0EDvhqywu4b0rWVdbWaCWmHMDZgPSHW-m8kAEaoNhiHQWXtJmuRL9c06ZEiu4Oy44OiGx7kPKvA6LTuhmJL2jnS2db1T-laZgYz9Pxk%3D

http://files.posterous.com/santabarbara/hlhGaRuwZ5GFAnTtI8rAsGT13aySOgOLs86qolWlKwVfvhAfGo2nioQ9GBYX/pic-1.jpg?AWSAccessKeyId=1C9REJR1EMRZ83Q7QRG2&Expires=1268894085&Signature=pRyOWeeLA6TlGCEAzerGaz4TM9k%3D

SANTA MONICA PROPERTY SNAPSHOT – DECEMBER 2009

SANTA MONICA PROPERTY SNAPSHOT – DECEMBER 2009

By Jodi Summers

CONDOS

This month we’re going to start with the Santa Monica condo market, because there’s some really exciting news to share…we’re starting a growth curve. Clarus Market Metrics is showing that between November - 2007 vs. November - 2009 the number of sold condo properties is up 4%, the number of condos under contract properties is up 50%. And to tighten up our condo market even more, the number of for sale properties is down 36%.

50% more Santa Monica condos under contract

And although condo prices have dropped, you’ll realize that it’s not so much in the two-year, year-over-year analysis. The median price of for sale properties is down 2% and the median price of sold properties is down 7% - with the current median condo price being $757,000 – down from $815,000 two years ago.

for sale / sold

More good news! From November - 2007 vs. November - 2009: The average month supply of inventory is down -65.0% from 15.1 months of volume to 5.3 months of unsold property on the market. This information is huge! Condo sellers get ready to put your properties on the market!

**

SINGLE FAMILY

November is not such a great reference point in the single family market in Santa Monica. Between November - 2007 vs. November – 2009…sorry to say, the median sold price is down 44%…from $2,340,000 to $1,312,000.

for sale / sold

The median price of for sale properties is down 6% …number of sold properties is down 11%…number of properties under contract down 8%. The slightly bright note is that the month’s supply of inventory is down from 4.8 months of volume to 3.7 months of inventory. In other words, if you don’t have to sell, don’t.

Looking for some specific details? Would you like to be our client – we’ll take good care of you. Contact the SoCal Investment Group through Jodi Summers, Jodi@jodisummers.com.

**

http://www.clarusresource.com/

NEW MARKET TERMS

NEW MARKET TERMS

We get lots of interesting email…this one, from Sanddra ay Costalife Services rollover@costalifeservices.com gives us a chuckle…

BULL MARKET — A random market movement causing an investor to mistake himself for a financial genius.

BEAR MARKET — A 6 to 18 month period when the kids get no allowance and the wife gets no jewelry.

VALUE INVESTING — The art of buying low and selling lower.

BROKER — What my broker has made me.

STANDARD & POOR — Your life in a nutshell.

STOCK ANALYST — Idiot who just downgraded your stock.

INSTITUTIONAL INVESTOR — Past year investor who’s now locked up in a nuthouse.

PROFIT — An archaic word no longer in use.

MALIBU GOES GREEN UNDER PRESSURE

MALIBU GOES GREEN UNDER PRESSURE

By Jodi Summers

Malibu should be ashamed of itself, acting like conservation is not for the wealthy. Santa Monica has been heavily into the green movement for years – aiming to become a net zero city, Our mother city, Los Angeles, is very motivated to become one of the greenest cities. Meantime the gilded village of Malibu is only turning green because of upcoming deadlines for compliance with state-mandated sustainable development standards.

Under pressure by state mandates, Malibu is finally getting around to developing a sustainable development program. This comes more than a year after the City of L.A.’s green building ordinance to reduce the City’s carbon emissions by more than 80,000 tons by 2012. Motivated only by state regulation, Malibu is planning to require larger projects to be LEED certified. Money is green; Malibu will get the hang of it.

Grudgingly, in late summer, Malibu began to comply with mandated standards addressing water use for landscape irrigation. Additionally the fabled city on PCH will comply with other statewide requirements, such as weather-proofing, formaldehyde content in wood products, air conditioning refrigerants, and outside air ventilation, not to mention finally getting collection areas for recyclables. (Hello! If that’s an issue for you guys, just bring in some homeless, and they’ll recycle for you.)

As Malibu has been so late to get on board the green bandwagon, the city is panicking about meeting residential construction standards effective Jan. 1, 2011, benchmarks that are already in place in neighboring Santa Monica, Beverly Hills, West Hollywood and Los Angeles.

The January 2011 requirements call for sediment and runoff protection from construction sites; diversion of at least 50% of construction waste; low or no use of volatile organic compounds such as indoor adhesives, paints and coatings; low formaldehyde indoor finish materials.

Looking further forward, as of July 1, 2011, residential construction projects will be required to be more water efficient – insisting on a 20 percent reduction in indoor water use.

Not to be berated for being totally arrogant and antiquated, Malibu does already have mandates in place for water conservation landscaping – though some city residents are insisting that is not enforced.

“I think our biggest problem is water in Malibu,” planning Commissioner Regan Schaar noted, more than a year after Governor Arnold Schwarzenegger declared a statewide drought. “The issue of people submitting plans [development applications] without any landscaping plans is a way for them to get around the issue. We need to put landscaping plans in place and make sure they’re low water usage.”

Malibu has been an ostrich, hiding its proverbial head in the sand while other local cities have been proactive on conservation measures. Lifestyles of the rich and infamous.

**

http://www.malibutimes.com/articles/2009/06/10/news/news3.txt

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http://www.socalgreenrealestateblog.com/?p=75

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http://www.triyoga.com/Galleries/images/malibu_point1.jpg

http://www.parks.ca.gov/pages/835/images/malibu_sportfishing_pier_sign.jpg

http://www.beaumondevillas.com/images/cities-malibu.jpg

http://www.imagekandi.com/photo/images/Malibu-Beach-Houses.jpg

http://www.destination360.com/north-america/us/california/images/s/malibu-beaches.jpg

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MARKET SNAPSHOT - SANTA MONICA CONDOS + HOMES UP AND DOWN

by Jodi Summers

Are we coming out of our recession? Perhaps when it comes to condos. From July 2008 – July 2009 condo prices in Santa Monica were up by 11% to a current median sale price of $685,500.

But truly, is it just about the price of what sells in any given month? In the single family realm, for the same time frame, Santa Monica Home Prices dropped 25% to an average price of $1.5m.

ECONOMISTS BELIEVE THE RECOVERY IS UNDERWAY

ECONOMISTS BELIEVE THE RECOVERY IS UNDERWAY

By Jodi Summers

In the 4^th quarter of last year, our economy slid like a beginning skier on an ice patch…completely out control. Because we went down so hard and so fast, there are a number of economists who feel the U.S.  is beginning our recovery.

Here’s what smart people have to say about our economic recovery -

Lakshman Achuthan, managing director of Economic Cycle Research Institute: The economy could be as close to four months away from a recovery.

He says his firms’ readings on long-term and short-term economic indicators give him significantly more hope that the economy is closer to a turnaround than he had thought… Among the more than dozen different things his firm looks at are home prices, the jobs picture and stock prices.

“These readings don’t really turn unless something is happening,” he said.

**

Mark Zandi, chief economist of Moody’s Economy.com:  Believes that a recovery could be closer than most people think.

“We’re starting to see some pent up demand for goods. But first things first, we need to see job losses moderate,” he said.

Zandi said just a slowing rate of job losses should help make people more confident about their own job outlook, as will a continuation of the recent gains for stocks.

Those two factors, plus a sign that home price declines have ended will help to turn around consumer confidence, Zandi said. That should help spur more spending.

**

Robert Brusca of FAO Economics:  There will be a fairly sharp recovery, mainly because this recession was so much worse than the ones in 1991 and 2001.

A slow, jobless recovery took place after those recessions, which were both fairly mild by historical standards. But the economy has often bounced back sharply following more severe recessions.

Brusca points out that, prior to the 1991 and 2001 downturns, the nation’s gross domestic product has gained about 7%, on average, during the first year of a recovery.

For this reason, he is predicting strong growth in at least one of the year’s final two quarters as well as a quicker return to health for the labor market.

“You’ve lost 5 million jobs. It shouldn’t be hard to put 2.5 million jobs back on rather quickly after you hit bottom,” he said.

**

Joseph Carson, chief economist at AllianceBernstein: The economy is already showing early indications of turning around. In addition to improving home sales and positive signs from the stock and bond markets, retail sales in February and March were stronger than expected.

“Stimulus has a much better chance of working if trends are already turning up than if it needs to halt a decline,” he said.

Info courtesy of:

http://www.realtor.org/RMODaily.nsf/pages/News2009040701?OpenDocument

http://money.cnn.com/2009/04/06/news/economy/recovery/index.htm

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http://i2.cdn.turner.com/cnn/2008/US/10/10/economy.qanda/art.achuthan.cnn.jpg

http://www.theepochtimes.com/n2/images/stories/large/2009/02/23/zanccc84579816.jpg

http://www.pbs.org/newshour/images/economy/july-dec98/dw3.jpg

http://www.alliancebernstein.com/CmsObjectABD/images/people/full_size/carson_joe.jpg

NATIONAL DO NOT CALL LIST CELL PHONE REMINDER

NATIONAL DO NOT CALL LIST CELL PHONE REMINDER

Shortly, all cell phone numbers are being released to telemarketing companies and you will start to receive sale calls.

…. YOU WILL BE CHARGED FOR THESE CALLSTo prevent this, call the following number from your cell phone: 

888-382-1222.
It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

WHAT PRESIDENT OBAMA’S STIMULUS PACKAGE DOES FOR REAL ESTATE

WHAT PRESIDENT OBAMA’S STIMULUS PACKAGE DOES FOR REAL ESTATE

by Jodi Summers

Well, yeah, now we have a stimulus package to kick start our sagging economy. Bet you want to know what it does for real estate - well, according to the National Association of Realtors - this is what has been So here’s what we have achieved:

1.    The loan limits will be raised to $729,750 in high cost areas, like Los Angeles.

2.    A true credit - the tax credit will be raised to $8,000 with NO payback!

3.    Interest rates have come down 125-150 basis points.

4.    The bill offers more than $50 billion in it for foreclosure mitigation, with Geitner’s Treasury plan signaling that the second half of TARP and TALF to be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES’s thereby freeing them up to do the same with new mortgages.

5.    Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.

REASONS TO BE OPTIMISTIC ABOUT BUYING AND SELLING CALIFORNIA REAL ESTATE IN 2009

REASONS TO BE OPTIMISTIC ABOUT BUYING AND SELLING CALIFORNIA REAL ESTATE IN 2009

Bet you’ve already realized that the housing market is way down. 31.7% in 2008, according to the year-end statistics from the California Association of Realtors, and they predict a drop of 6% in 2009.

6%…guess we’re hitting the bottom…that’s the nice thing about deflated housing markets like Arizona, California, Florida, and Nebraska, they’ve fallen so low that they’re starting to rebound. Analysts have noted that prices have fallen to the point that those with average salaries can afford to buy once again.

“The buyers are returning,” says Lawrence Yun, National Association of Realtors chief economist. “And in such a strong way that, now, we are hearing in some cases there is multiple bidding, which hints that maybe pricing is reaching a bottom point. But inventory remains high.”

http://www.realtor.org/RMODaily.nsf/pages/News2008121602?OpenDocument

http://www.inman.com/news/2008/12/18/california-sales-spike-reflects-distress