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Griffin and his brokers will help to
re-establish a strong Sacramento
presence while two other executives
boost the San Francisco team.

ICSC RECON is coming up and GlobeSt.com has a month of special coverage in the works. Don’t miss a bit of it. Click here for more information.

SAN ANSELMO, CA-TRI Commercial/CORFAC International has added four new brokerage professionals to its Sacramento office and two to its San Francisco office—all formerly with Grubb Ellis. A company spokesperson tells GlobeSt.com that manager Ed Benoit is planning to staff the Sacramento office with an additional six to 11 people, both from recruiting and relocating some staff from the Roseville, CA, and Rocklin, CA, offices back to Sacramento.

Among the four new hires in Sacramento is Steve Griffin, SVP of the investment services group, a 30-year commercial real estate veteran. Griffin, the top-producing investment professional in Sacramento for GE during the past 15 years, brings with him a team consisting of Greg Redman, industrial specialist, who was with GE since 2007; Graham Clemons, senior retail advisor of the retail commercial services group, who also joined GE in 2007; and Richard Smith, senior retail marketing consultant, who was with GE since 1985.

“Steve came up in the business with companies like Bishop Hawk and Schneider Commercial Real Estate, and they were regional powerhouses, so TRI is a good fit for him,” said Benoit in a statement. “We are known for our solid reputation as good guys and a fun place to work without any corporate bureaucracy—plus we have the best commission splits in the industry.”

In the San Francisco office, Janine Watson, SVP, will focus on the office market with both tenant and landlord representation, while Ken Brownell, SVP, specializes in retail brokerage services for property owners and tenants. Watson joined GE during the late-1980s in the East Bay and then moved to San Francisco, where she predominantly worked for Pacific Union Commercial before returning to GE about three years ago. Prior to GE, Brownell was president and owner of Blatteis Realty and has been a retail real estate specialist and involved with retail developments in San Francisco and the San Francisco Peninsula for more than 25 years.

“For now, we have four agents in our Sacramento office and a true market leader in Steve Griffin,” Benoit tells GlobeSt.com. “We are talking with other outside agents that have expressed interest in joining us in a new location, and we also have existing agents that may prefer to work in a Pointe West location rather than Roseville or Rocklin. All this, plus the timing of getting a new office completed with enough room to right-size for what we have or expect to have, makes it hard to say what our exact size will be in Sacramento other than to say we intend to have a strong local presence.”

In the wake of GE’s acquisition and reformation into Newmark Grubb Knight Frank, many former GE executives have been making their way to other firms’ West Coast offices. As GlobeSt.com previously reported, earlier this month Christenson Advisors hired industry veteran Jack Van Berkel, former GE EVP, COO and president of real estate services, as a partner and managing principal based in the firm’s Newport Beach office. And in April, Voit Real Estate Services hired former GE executives Brandon Keith, Robert Vallera, Jeffery Chasan, Stephen Dok and Mathew Kennedy for its San Diego office. Just prior to that spate of hires, as GlobeSt.com exclusively reported, Voit brought on three SVPs and a marketing assistant to its Inland Empire retail team with the addition of Tom Swieca, Tony Archer and Sandie Smith (all formerly with Grubb Ellis) and Dianna Bernard.

TRI has also had a recent executive move. As GlobeSt.com previously reported, in March UGL Services appointed Bob Kuhl, formerly a principal at TRI, to the Sacramento office of UGL Services to serve as SVP in brokerage operations.

Categories:

West,
Industrial,
Retail,
Executive Moves,
San Francisco

Carrie Rossenfeld Carrie Rossenfeld is a reporter for the West Coast region of GlobeSt.com and Real Estate Forum. She was a trade-magazine and newsletter editor in New York City for 11 years before moving to Southern California in 1997 to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics ranging from intellectual-property licensing and giftware to commercial real estate. She recently edited a book about profiting from distressed real estate in a down market and has ghostwritten a book about starting a home-based business.

Article source: http://www.globest.com/news/12_352/sanfrancisco/retail/TRI-CORFACs-Sac-SF-Offices-Gain-Six-GE-Execs-321531.html

SACRAMENTO — A pair of controversial bills in the California Legislature that would give homeowners more rights to fight foreclosures is being opposed by the nation’s principal home loan regulator.

The Federal Housing Finance Agency on Tuesday expressed that criticism in a letter to a six-person legislative conference committee. The first bill would prevent borrowers from being foreclosed on when they have applied for a loan modification. The second proposal would guarantee that borrowers have a single point of contact when dealing with a mortgage service company.

The Housing Finance Agency doesn’t like the measures, saying they could unduly delay the foreclosure process and add to overall lending costs. Such delays could harm the recovery of a still fragile housing market, the agency said. The agency regulates Fannie Mae and Freddie Mac, government entities that hold about three-fifths of California mortgages.

The federal regulator also criticized a provision in the bills — dubbed the Homeowner Bill of Rights — that would allow borrowers to sue banks, saying it would slow the handling of legitimate foreclosure procedures.

The chief backer of the bill of rights, California Atty. Gen. Kamala D. Harris, was surprised by the federal position.

“This legislation is being carefully crafted to provide these homeowner protections while discouraging frivolous litigation and its associated costs,” Shum Preston, a spokesman for Harris, said in a statement. Each avoided foreclosure will save families, local governments and neighborhoods approximately $40,000, he said.

The bills currently are in a conference committee made up of three members from the state Assembly and three from the state Senate. No vote by the committee is expected before the end of May.

The bills are backed by the Democratic leaders of the Legislature and a variety of consumer and fair-lending groups. Banks and mortgage servicing companies strongly oppose them.

[For the record, 6:05 p.m. May 15: An earlier version of this post contained a quote attributed to California Atty. Gen. Kamala D. Harris. The quote should have been attributed to her spokesman, Shum Preston.]

RELATED:

Mortgage deal cash is divvied

California foreclosure relief bills take an usual route

Gov. Brown has his own plans for mortgage settlement cash

Article source: http://www.latimes.com/business/money/la-fi-mo-feds-oppose-foreclosure-bills-20120515,0,321931.story

Downtown Sacramento apartment complex is sold

SACRAMENTO

May 15, 2012
5:33am

•  Kennedy Wilson and partners buy Capitol Towers for $64 Million

•  ‘The Capitol Towers acquisition is an exciting play on the Sacramento CBD market’

Real estate investment firm Kennedy Wilson (NYSE: KW) of Beverly Hills says it has purchased Capitol Towers, a 409-unit apartment community in downtown Sacramento.

The selling price was $64 million, with $50 million in financing from HFF/Freddie Mac at 3.51 percent, fixed for seven years. Kennedy Wilson will invest 50 percent of the equity in the deal. The other investors were not revealed.

The acquisition increases the company’s multifamily portfolio to ownership interests in 13,876 units, including deals currently under contract.

“The Capitol Towers acquisition is an exciting play on the Sacramento CBD market,” says Robert Hart, president of KW Multifamily Management Group. “The community is just a few short blocks from the Capitol Mall, the State Capitol and the light rail station, exemplifying Kennedy Wilson’s pursuit of higher density infill projects near a major transportation hub and job center that supports 100,000 office and government workers.”

According to Meyers Research, market rents for Sacramento MSA increased 2.2 percent in 2011 and continued to improve by 1.0 percent in the first quarter of 2012. Additionally, Reis Inc. predicts a four-year cumulative rent growth of 32 percent for the MSA, says Kennedy Wilson.

Capitol Towers encompasses a four-block area with 203 units in one 15-story tower and 206 villa units surrounding the tower. The villa portion is zoned for up to 1,290 units and the tower features six ground-floor retail units, providing residents with amenities that include groceries, dry cleaning and other services. Additionally, a light rail stop is adjacent to the property.

Kennedy Wilson plans to renovate the existing units with new kitchen cabinetry as well as other treatments and further enhance the project’s fitness center, leasing office and retail amenities.

Article source: http://www.centralvalleybusinesstimes.com/stories/001/?ID=21055

Members of the Silicon Valley Association of Realtors were part of a 2,000-plus delegation from across California in Sacramento on May 2 for the California Association of Realtors 2012 Legislative Day. They met with their elected representatives and discussed how certain bills and policies affect homeowners, home buyers and the industry.

Special guest Gov. Jerry Brown spoke during the morning. He acknowledged the beleaguered economy and said if his new tax plan on the November ballot is not passed, more cuts will have to be made.

“We need to get the will to make the cuts,” said Brown. “Unless we get to make big unpleasant cuts, we are not going to balance the budget.”

SILVAR members met with Assembly members Paul Fong (Dist. 22), Richard Gordon (Dist. 21), Jim Beall (Dist. 24), state Sen. Sam Blakeslee (Dist. 15) and staff of Senators Elaine Alquist (Dist. 13) and Joe Simitian (Dist. 11). They discussed:

• AB 1745 (Torres), a bill the state group is sponsoring that prevents “dual tracking,” the practice by lenders to foreclose on a property even after they approved a short sale.

• Realtors oppose several foreclosure reform bills introduced as a package and sponsored by the state attorney general. The package, which includes some bills never voted on in committee, has bypassed further committee hearings and gone straight to a conference committee. Realtors oppose provisions in these measures that

will: 1) force those filing a Notice of Default to certify the chain of title of the note and mortgage or deed of trust; 2) create a very broad definition of a “robo-signed document” and impose civil penalties for recording that document; and 3) permanently establish a 90-day notice to vacate foreclosed properties.

Realtors specifically oppose AB 2425 and SB 1471, which seek to impose a version of the state of Nevada’s robo-signing prohibition. The “Nevada Approach” broadly defines a robo-signed foreclosure document to include any document with any error, intentional or not; imposes a fine of up to $10,000 for recording a robo-signed document; and requires a servicer filing an NOD to personally certify the chain of mortgage ownership. This has prompted lenders to opt for judicial foreclosures instead of trustee sales, which slow the process.

Realtors also oppose AB2610 (Skinner) and SB 1473 (Hancock), which seek to lock into California law part, not all, of the federal “Protecting Tenants at Foreclosure Act,” pre-empting existing state law and extending the tenant eviction requirement to 90 days. While federal law contains a sunset provision and requirement of a “bona fide” tenancy, AB2610 and SB1473 do not contain these safeguards. A borrower, knowing the loss of property is imminent, could recruit a “renter” to prevent the new owner from taking possession for 90 days or the duration of the lease with the “renter.”

“We are by no means out of the woods yet until the foreclosure market is addressed. We have to agree on things we can change and agree on the problems,” said Blakeslee, whose district covers a small area in the southern edge of Santa Clara County, including the cities of Saratoga, Los Gatos and Morgan Hill, as well as a portion of San Jose. “There is a strong disinterest by the public. People don’t want to understand it. They just want it fixed.”

Realtors make up one of the largest groups that meet with legislators every year and discuss important issues concerning their industry. The region’s legislators thanked the visitors for meeting with them.

“Your presence is important here. We respond to people who talk to us. If you don’t talk to us, we haven’t heard the story,” said Gordon, whose district includes Los Gatos.

Information in this column is presented by the Silicon Valley Association of Realtors at www.silvar.org. Send questions to rmeily@silvar.org.

Article source: http://www.mercurynews.com/saratoga/ci_20623627/realtors-travel-sacramento-meet-legislators

A partnership controlled by the Bond Cos., a nationally known developer with offices in Los Angeles and Chicago, bought Capitol Towers in June 2007. Property records show the partnership borrowed $43 million on the parcel the same day it changed hands.

“The Capitol Towers acquisition is an exciting play on the Sacramento central business district market,” said Robert Hart, president of KW Multifamily Management Group. “The community is just a few short blocks from the Capitol Mall, the State Capitol and the light rail station, exemplifying Kennedy Wilson’s pursuit of higher density infill projects near a major transportation hub and job center that supports 100,000 office and government workers.”

Capitol Towers has 203 units in its 15-story tower and 206 villa units surrounding the tower. The villa portion is zoned for up to 1,290 units, and the tower features six ground-floor retail outlets.

Article source: http://www.modbee.com/2012/05/14/2199614/sacramentos-capitol-towers-sold.html

A partnership controlled by the Bond Cos., a nationally known developer with offices in Los Angeles and Chicago, bought Capitol Towers in June 2007. Property records show the partnership borrowed $43 million on the parcel the same day it changed hands.

“The Capitol Towers acquisition is an exciting play on the Sacramento central business district market,” said Robert Hart, president of KW Multifamily Management Group. “The community is just a few short blocks from the Capitol Mall, the State Capitol and the light rail station, exemplifying Kennedy Wilson’s pursuit of higher density infill projects near a major transportation hub and job center that supports 100,000 office and government workers.”

Capitol Towers has 203 units in its 15-story tower and 206 villa units surrounding the tower. The villa portion is zoned for up to 1,290 units, and the tower features six ground-floor retail outlets.

Article source: http://www.modbee.com/2012/05/14/2199614/sacramentos-capitol-towers-sold.html

CAMPBELL, Calif., May 14, 2012 — /PRNewswire/ – Realtor.com operator, Move, Inc. (NASDAQ: MOVE), the leader in online real estate, and RealBizMedia, the leading provider of rich media content delivery for the real estate industry, today announced an agreement to launch the Realtor.com Channel powered by the Home Tour Network, part of the RealBizMedia’s group.

The new Realtor.com Channel will launch in the second half of 2012 and bring millions of property listings into 55 million U.S. homes starting with the Cox cable network.  In doing so, Realtor.com will be the first company to deliver a real estate search experience on the three screens consumers use most: computer, mobile and TV.  Executives are discussing plans to expand the channel into other networks.

“Realtor.com is continually improving the real estate search experience with emerging technologies to make it easier for millions of people to connect with real estate professionals ready to help them find the home that’s right for their family,” said Steve Berkowitz, Move’s chief executive officer. “With ‘for-sale’ inventories down across the nation, having convenient, fast and fun search options, along with the partnership of a professional agent, is important. When the Realtor.com Channel has launched, regardless of where you are or what you’re doing, Realtor.com will be with you.”

The Realtor.com^{Channel will be a powerful way for real estate agents to reach home buyers on a highly geo-targeted level. Based on location, property listings on the Realtor.com Channel will be displayed by price range delivered by the Home Tour Network and include high quality photo-based videos and descriptions provided by agents. With just a few clicks of the remote, viewers can instantly connect with agents for information.}

“We’re excited to be teaming up with Realtor.com on this new venture that will help millions of people find what we hope becomes their piece of the American Dream – a home,” said Steve Marques, CEO of RealBizMedia. “Our experience in launching our propriety video platform positions RealBizMedia to leverage both organizations’ assets and provide home buyers and folks simply interested in checking out the local market with a new way to discover real estate and connect with real estate experts across the country.”

Only Realtor.com listings – the freshest and most accurate collection of real estate listings available – will appear on the new Realtor.com Channel. All listings on Realtor.com are sent to the site directly from more than 850 MLSs across the nation.  Approximately 85 percent of the listings on Realtor.com are updated every 15 minutes by the MLSs with the remainder updated every one to 24 hours.

Today’s VOD platform makes it possible for millions of potential buyers who subscribe to cable television to discover for-sale listings as part of their entertainment viewing experience. With the rapid adoption of technologies that enable seamless navigation between TV to internet content, Realtor.com is now positioned to create even richer experiences and more opportunities for consumers, agents and advertisers to connect conveniently and on demand.  

An exclusive media program will soon be developed for general advertisers interested in reaching millions of cable subscribers across the nation through the Realtor.com Channel.  The financial terms of the agreement were not disclosed.

ABOUT MOVE, INC. Move, Inc. (NASDAQ:MOVE) is the leader in online real estate and operator of REALTOR.com®, the official website of the National Association of REALTORS®; Move.com, a leading destination for new homes and rental listings, moving, home and garden, and home finance; ListHub, the leading syndicator of real estate listings; Moving.com; SeniorHousingNet; SocialBios; and TOP PRODUCER Systems. Move, Inc. is based in Campbell, California.

ABOUT REALBIZMEDIA RealBizMedia formerly known as RealBiz360 is the leading provider of rich media and image content delivery for the real estate industry. RealbizMedia is focused on providing both integrated and interactive solutions for the seamless creation of High Resolution Media tours and videos for web, wireless, and with its minority interest partner Next One Interactive, television distribution.

This press release may contain forward-looking statements, including information about management’s view of Move’s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995.  These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different than those expressed or implied in such statements.  These risk factors and others are included from time to time in documents Move files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks.  Other unknown or unpredictable factors also could have material adverse effects on Move’s future results.  The forward-looking statements included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements.  Accordingly, you should not place undue reliance on these forward-looking statements.  Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

SOURCE Move, Inc.

Article source: http://www.sacbee.com/2012/05/14/4487807/new-realtorcom-tv-channel-to-reach.html

CAMPBELL, Calif., May 14, 2012 — /PRNewswire/ – Realtor.com operator, Move, Inc. (NASDAQ: MOVE), the leader in online real estate, and RealBizMedia, the leading provider of rich media content delivery for the real estate industry, today announced an agreement to launch the Realtor.com Channel powered by the Home Tour Network, part of the RealBizMedia’s group.

The new Realtor.com Channel will launch in the second half of 2012 and bring millions of property listings into 55 million U.S. homes starting with the Cox cable network.  In doing so, Realtor.com will be the first company to deliver a real estate search experience on the three screens consumers use most: computer, mobile and TV.  Executives are discussing plans to expand the channel into other networks.

“Realtor.com is continually improving the real estate search experience with emerging technologies to make it easier for millions of people to connect with real estate professionals ready to help them find the home that’s right for their family,” said Steve Berkowitz, Move’s chief executive officer. “With ‘for-sale’ inventories down across the nation, having convenient, fast and fun search options, along with the partnership of a professional agent, is important. When the Realtor.com Channel has launched, regardless of where you are or what you’re doing, Realtor.com will be with you.”

The Realtor.com^{Channel will be a powerful way for real estate agents to reach home buyers on a highly geo-targeted level. Based on location, property listings on the Realtor.com Channel will be displayed by price range delivered by the Home Tour Network and include high quality photo-based videos and descriptions provided by agents. With just a few clicks of the remote, viewers can instantly connect with agents for information.}

“We’re excited to be teaming up with Realtor.com on this new venture that will help millions of people find what we hope becomes their piece of the American Dream – a home,” said Steve Marques, CEO of RealBizMedia. “Our experience in launching our propriety video platform positions RealBizMedia to leverage both organizations’ assets and provide home buyers and folks simply interested in checking out the local market with a new way to discover real estate and connect with real estate experts across the country.”

Only Realtor.com listings – the freshest and most accurate collection of real estate listings available – will appear on the new Realtor.com Channel. All listings on Realtor.com are sent to the site directly from more than 850 MLSs across the nation.  Approximately 85 percent of the listings on Realtor.com are updated every 15 minutes by the MLSs with the remainder updated every one to 24 hours.

Today’s VOD platform makes it possible for millions of potential buyers who subscribe to cable television to discover for-sale listings as part of their entertainment viewing experience. With the rapid adoption of technologies that enable seamless navigation between TV to internet content, Realtor.com is now positioned to create even richer experiences and more opportunities for consumers, agents and advertisers to connect conveniently and on demand.  

An exclusive media program will soon be developed for general advertisers interested in reaching millions of cable subscribers across the nation through the Realtor.com Channel.  The financial terms of the agreement were not disclosed.

ABOUT MOVE, INC. Move, Inc. (NASDAQ:MOVE) is the leader in online real estate and operator of REALTOR.com®, the official website of the National Association of REALTORS®; Move.com, a leading destination for new homes and rental listings, moving, home and garden, and home finance; ListHub, the leading syndicator of real estate listings; Moving.com; SeniorHousingNet; SocialBios; and TOP PRODUCER Systems. Move, Inc. is based in Campbell, California.

ABOUT REALBIZMEDIA RealBizMedia formerly known as RealBiz360 is the leading provider of rich media and image content delivery for the real estate industry. RealbizMedia is focused on providing both integrated and interactive solutions for the seamless creation of High Resolution Media tours and videos for web, wireless, and with its minority interest partner Next One Interactive, television distribution.

This press release may contain forward-looking statements, including information about management’s view of Move’s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995.  These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different than those expressed or implied in such statements.  These risk factors and others are included from time to time in documents Move files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks.  Other unknown or unpredictable factors also could have material adverse effects on Move’s future results.  The forward-looking statements included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements.  Accordingly, you should not place undue reliance on these forward-looking statements.  Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

SOURCE Move, Inc.

Article source: http://www.sacbee.com/2012/05/14/4487807/new-realtorcom-tv-channel-to-reach.html

WASHINGTON, May 11, 2012 — Without Stronger Job Creation, More Stable Policies from Washington, CRE Markets Likely to Bump Along at Low Level, Especially in Non-Gateway Areas

WASHINGTON, May 11, 2012 /PRNewswire-USNewswire/ — Commercial real estate executives participating in The Real Estate Roundtable’s latest quarterly Sentiment Survey generally said market conditions have improved since a year ago, but signaled a lack of confidence in the outlook for the coming year, citing global economic risks, Washington’s ability to deal with looming budget and tax issues, ongoing Euro zone turmoil, and the vast amount of commercial mortgages maturing this year and beyond.

(Photo: http://photos.prnewswire.com/prnh/20120215/DC54467)

“Although more respondents in our Q2 survey see current conditions, asset values and capital availability as being better than a year ago, anecdotal responses continue to show a high level of uncertainty about economic conditions here and abroad, as well as tremendous concern about the array of policy issues awaiting action or clarification by U.S. policymakers,” said Roundtable President and CEO Jeffrey DeBoer. “Add to that growing concern over borrowers’ ability to refinance vast amounts of maturing commercial mortgage debt, and it’s no surprise that expectations for the year ahead are relatively flat,” he added.

The survey’s “Overall Index” now stands at 70 (up slightly from 68 in Q1), indicating that respondents see the commercial real estate industry on a generally favorable slope and expect slightly improved market conditions during the coming year. Although the Overall Index is not back up to where it was in the first half of 2011 — a reading of 77 — it has recovered significantly from its nosedive to 59 in the 4th quarter of 2011 (a reflection of last summer’s unprecedented U.S. debt downgrade, European debt woes and renewed fears of recession in the U.S.)

Reflecting the industry’s “bifurcated” views of current vs. future conditions, the “Current Index” rose from 66 to 71 between Q1 and Q2, while the “Future Index” slid from 70 to 69.  The current survey also shows a 13 percent jump (since Q1) in the percentage of respondents who gauge overall market conditions and asset values as being at least “somewhat better” than they were one year ago. Views on capital market conditions were even more improved between Q1 and Q2 — with a 19 percent jump in those who characterized debt capital as being at least somewhat more available than one year ago, and an 11 percent increase in perceived equity availability since a year ago.

Looking ahead, a majority of respondents still expects at least some improvement in overall market conditions, asset values and capital availability one year from today; however, more than one-third see asset values and capital market conditions remaining the same or worsening between now and the 2nd quarter of 2013.

“Fostering a commercial real estate recovery that extends beyond so-called ‘Class A’ or trophy assets in gateway markets still depends on an improved jobs picture, more confidence among businesses and consumers, and reduced uncertainty on looming tax and budget issues,” said Roundtable Chairman Daniel M. Neidich (Dune Real Estate Partners). “Our Q2 survey confirms the need for swift policy action to boost employment, business investment, and economic certainty.”                                                               

With roughly $1.4 trillion in commercial mortgages coming due in 2012–2015 and many properties now “underwater” due to eroded property values, DeBoer said it is “imperative that policymakers adopt measures now to foster increased equity investment in U.S. commercial real estate.” A top Roundtable priority is withdrawal of a 2007 IRS notice that significantly expanded the scope of the “Foreign Investment in Real Property Tax Act of 1980″ (FIRPTA).  As DeBoer testified before Congress last June, this arcane tax law originally sought to limit foreign control over U.S. farmland, but now represents a significant deterrent to overall foreign equity investment in U.S. commercial real estate.

The Roundtable also continues working with national real estate trade groups to encourage a more robust recovery of the commercial mortgage-backed securities (CMBS) market, whose roughly $32 billion in projected issuance for 2012 is a far cry from the $230 billion issued at the market’s peak in 2007. Given that CMBS debt is used across the United States to finance “Main Street” real estate, a healthy secondary market for commercial mortgages will not only ensure a broader recovery in commercial real estate markets, but it will strengthen financial institution balance sheets across the board.

The quarterly Sentiment Survey seeks to capture feedback from a broad range of real estate industry segments, asset classes, ownership vehicles and capital structures, including owners and asset managers, financial services firms and operators. The results of the next Sentiment Survey, covering Q3 2012, will be released in early August.

A PDF of the entire Q2 2012 Sentiment Survey report is available online at www.rer.org. 

SOURCE Real Estate Roundtable

Article source: http://www.sacbee.com/2012/05/11/4483045/commercial-real-estate-mending.html

By Jim Christie

SAN FRANCISCO |
Sun May 13, 2012 8:06pm EDT

SAN FRANCISCO (Reuters) – California Governor Jerry Brown was elected in 2010 on a promise to fix the state’s chronic fiscal crisis. His weekend announcement of a much bigger-than-expected shortfall in the state budget signals how far he still has to go.

In an unusual move that underscored the highly politicized nature of the state budget, Brown took to YouTube on Saturday to deliver the bad news: the state’s projected budget deficit for the fiscal year starting July 1 is now $16 billion, up from the $9 billion anticipated in January.

The Democratic governor also warned of further cuts to an already-battered public education system if voters rejected a tax increase in a ballot initiative this fall.

On Monday, Brown will hold a news conference to detail the new budget deficit and how he intends to close it.

California, whose economy is the largest in the nation and would rank ninth in the world if the state were a country, has struggled for decades with a tax system in which property tax increases are limited by law and tax hikes of any kind must be approved by voter initiatives or a two-thirds vote of the legislature.

High income and sales taxes produce plenty of revenue in good times but fall sharply in a recession, while spending on schools, prisons and medical care for the poor and elderly is hard to adjust.

The deeper deficit forecast reflects the state’s uneven economic recovery: tax collections this year have fallen about $4 billion below projections, though many state legislators and economists had warned that the January revenue estimates were far too optimistic.

The deficit also grew because some previously agreed cuts to state social programs, including the Medi-Cal healthcare program for low-income families and seniors, were either delayed by legislators or blocked by the courts and federal officials.

Brown’s video had the air of a campaign call for a tax hike initiative that is the centerpiece of his fiscal plan.

“What I’m proposing is not a panacea. But it goes a long way toward cleaning up the state’s budget mess,” he said. He acknowledged that further budget cuts would be needed as well, but added: “we can’t fill a hole of this magnitude with cuts alone without doing severe damage to our schools.”

The measure would temporarily raise California’s sales tax to 7.5 percent from 7.25 percent and increase personal income tax rates on a sliding scale starting at annual income of $250,000. Incomes of $1 million and above would see a 3 percentage-point bump, pushing the top rate to 13.3 percent. The measure would raise $9 billion for the next fiscal year

Brown faces a June 15 deadline to gain legislative approval for a budget for the new fiscal year. Democrats control the legislature but have been reluctant to go along even with the cuts he proposed in January. Republicans are mobilizing to fight Brown’s proposed tax hikes.

The state will spend about $86.5 billion this year, down from a peak of $103 billion in the 2007-2008 fiscal year. Brown in January proposed $92.6 billion in general fund spending for the next fiscal year.

REVENUE FAILS TO MEET EXPECTATIONS

California’s budget watchdog agency warned in February that Brown’s revenue expectations were optimistic. The more sober forecast this weekend was apparently prompted by lackluster revenue in April, a critical month for collecting personal income taxes.

“It’s a terrible recovery,” said Mike Genest, one of former Republican Governor Arnold Schwarzenegger’s budget directors. “It seems we’re in a cycle of somewhat lower expectations each time people take another look.”

California’s unemployment rate in March was 11.0 percent, well above the 8.2 percent national average for the month.

Some pockets of the state’s economy, notably the high-tech industry, are doing well.

This week’s initial public offering of Facebook stock will make millionaires of thousands of employees and investors. Tax receipts related to the IPO could total billions of dollars but will likely be collected over time and will not be sufficient to change the budget outlook.

Much of the state continues to struggle in the wake of a real estate collapse. The Central Valley city of Stockton is in talks with its creditors to try to avert filing for bankruptcy.

FOCUS ON SCHOOLS

Brown has been warning of further cuts to education since his initial budget proposal in January. Local school districts, barred from raising their own revenue through higher property taxes, are heavily dependent on dwindling funding from the state government in Sacramento. Preliminary layoff notices for the next school year have been sent to more than 20,000 teachers.

State colleges and universities have implemented massive tuition increases in recent years. The University of California has said it may have to boost tuition another 6 percent this year if funding is cut further.

But Brown has little choice but to propose yet deeper cuts to school spending, which is guaranteed the lion’s share of the state’s revenue due to a law approved by voters.

In January, Brown proposed $5.4 billion in so-called trigger cuts should voters snub his proposed tax hikes, with $4.8 billion of the cuts slated for schools and community colleges.

Whether voters take Brown’s warning to heart depends largely on whether they are directly hurt by cuts, said Bill Whalen, a research fellow at the Hoover Institution who was an aide to former Republican Governor Pete Wilson.

“For a decade we’ve been talking about budget deficits and it’s a little of ‘My eyes glaze over when we talk about this,’” he said.

WALL STREET WATCHES

Credit analysts will scour details of Brown’s revised plan, which could affect their outlooks on the state. Standard Poor’s revised its outlook on California in February to positive from stable, a potential first step to a higher credit rating, which would help ease borrowing costs. At ‘A-’ – six levels below ‘AAA’ – California is SP’s lowest-rated U.S. state.

SP’s Gabriel Petek said the agency is keen to see Brown’s new plans for cuts, updated revenue forecasts, projections on how much his ballot measure can raise and contingency plans should voters reject it. Petek also said it will be vital for lawmakers to act quickly to balance the state’s books, without resorting to gimmicks.

The signing of a budget would clear the way for California to sell short-term revenue anticipation notes (RANs). The state is the biggest borrower in the $3.7 trillion U.S. municipal bond market and sells RANs to meet its cash-flow needs. Having a budget in place also allows the state to sell longer-term general obligation debt.

California 10-year muni yields traded last week at an average of 72 basis points over the Municipal Market Data benchmark triple-A scale, the third highest spread after Puerto Rico and Illinois.

(Reporting By Jim Christie. Editing by Jonathan Weber, William Schomberg, Tiziana Barghini and Paul Simao)

Article source: http://www.reuters.com/article/2012/05/14/us-usa-california-budget-idUSBRE84D00020120514