A case scheduled to come before the California Supreme Court Sept. 7 is set to re-examine the fiduciary responsibilities borne by real estate brokers who engage in “dual agency” representation — the situation in which buyers, sellers, landlords and tenants are represented by brokers within the same real estate agency or brokerage, a commonplace practice in both residential and commercial property transactions.
The California Supreme Court in 2014 agreed to review the case, Horiike v. Coldwell Banker Residential Brokerage Co., in which homebuyer Hiroshi Horiike worked with a Coldwell Banker agent to purchase a Malibu residential property listed by a Coldwell Banker agent in another office.
After the sale closed, Horiike discovered that the size of the house was 11,000 square feet rather than the 15,000 square feet claimed in marketing materials. Horiike sued the listing agent and Coldwell Banker, claiming that both had breached their fiduciary responsibility by failing to advise him to hire a third party to verify the actual square footage.
Tony Bonitati, Kay Hill and Bern DuPree represented Southwood Realty, based in Gastonia, NC, in the sale of two Columbia, SC multifamily properties totaling 325 units. Hunters Ridge Apartments located at 1079 Springhouse Drive (205 units) and Copperfield Apartments located at 200 Saluda River Road (120 units) were sold to Upstate Property Rentals based in Simpsonville, SC. The buyer was not represented in the transaction. Both properties were more than 95% occupied at the time of sale and the purchaser plans to make minor capital improvements.
This transaction represents the sixth property NAI Earle Furman’s Multifamily Division has sold for Southwood Realty.
“This was a win-win transaction for all parties. Not only were we very pleased with the outcome of this sale for our longtime client Southwood Realty, but we were also happy with how we were able to assist Upstate Property Rentals, whom we have represented on many Upstate, SC deals in the past, expand into the Columbia, SC market,” says Kay Hill, NAI Earle Furman Broker and Shareholder.
Spartanburg: Andrew Babb represented the buyer, Patel & Company, Inc., in purchasing 9.17 acres of vacant land on North Blackstock Road from The Deanne Yeomans Revocable Trust.
Anderson: John Powell, CCIM represented the seller, Patricia M. Holcombe, et. al., in the sale of 9.9 acres of vacant land on Highway 24 to Michael Sellers.
Piedmont: Towers Rice, CCIM represented the purchaser, Blue Eagle Rentals, Inc., in purchasing approximately 9.86 acres of vacant land on Oak Road from Joan Gigante.
Greenville: Hunter Garrett, CCIM, SIOR and John Staunton represented the seller, Burrissfb Company, LLC, in the sale of a 5,000 SF retail property located at 717 Airport Road to RAME Investments, Inc.
Bowman: Edward Wingate represented the purchaser, Shefflette Family Trust, LLC, in purchasing from 6508 Bowman, LLC a 9,014 SF retail investment property located at 6508 Charleston Highway.
Townville: Towers Rice, CCIM represented the seller, Nix/Dunn, LLC, in the sale of an approximately 10,841 SF boat and RV storage facility located at 6224 Highway 24 to Three R’s Investors, LLC.
Dillon: Earle Furman, Jr., SIOR represented the purchaser, Dorothy B. Jones Irrevocable Trust Agreement, in purchasing from Patton Development SC, LLC a 9,100 SF retail investment property located at 2823 Highway 57 South.
Greenville: Keith Jones, CCIM represented the seller, PHT Investments, LLC, in the sale of a 3,900 SF office property located at 240 & 242 Adley Way to SPITRA TECHOLOGIES, LLC.
Fountain Inn: Rusty Hamrick represented the seller, Lewis and Jennifer Platts, in the sale of 7.74 acres of land at 75 Bowater Pass to Adam & Alexandra Haymont.
Greenville: Keith Jones, CCIM represented the seller, Illuminati, Inc., in the sale of a 2,936 SF retail condo at 640 South Main Street in downtown Greenville. Jake Van Gieson, also of NAI Earle Furman, represented the purchaser, WE Holdings, LLC.
Spartanburg: Andrew Babb represented the seller, Peggy Davis, in the sale of a 3,784 SF office building at 172 Alabama Street to Christopher Crowley & Garrow Crowley .
Greenville: Earle Furman, Jr., SIOR represented the seller, Hollingsworth Funds, Inc., in the sale of an 18 acre parcel of land located at 1401 Laurens View Road. Tony Bonitati, Kay Hill, and Bern DuPree, also of NAI Earle Furman, represented the purchaser, Continental Properties Company, Inc.
Investors have already acquired a tremendous volume of student housing properties this year, but the busy buying season for student housing is just getting started.
“It’s frothy and it’s active,” says Dorothy Jackman, managing director of student housing services for real estate services firm Colliers International.
The bidding for student housing properties seems likely to get more intense. Investors usually trade the most student housing properties in the fall, after the results of the fall leasing season are in. This year, early results look very good: occupancy rates are on track to meet or even exceed the high levels set last year as the market easily absorbs the new student housing beds that get delivered.
Investors in student housing have been very busy during this spring and early summer. They bought $8.4 billion in student housing properties over the 12 months ending in the second quarter, according to data from New York City-based research firm Real Capital Analytics (RCA). That’s a sizeable increase from $5.4 million the year before. But the big surprise is that most of those sales happened after January 1. As of August, investors bought $5.7 billion in student housing properties in 2016, up from $3.7 billion over the same period in 2015.
NAI Avant Senior Investment Broker Dail Longaker represented Medical Investment Holdings, LLC and Port Royal Medical Investments, LLC, in the $22,522,550 portfolio sale of (9) medical facilities located in markets throughout South Carolina and Tennessee.
The current tenant in all nine facilitates is a South Carolina based urgent care company, which plans to maintain its current lease arrangement.
1600 Pennsylvania Avenue is not the average starter home.
President Barack Obama and his family will be moving out of the White House in a few months. But as far as we know, they aren’t looking to sell. Of course, it’s not in any president’s power to actually sell the White House, and it’s unimaginable that the historic home will ever be sold.
But what if it did? How much would 1600 Pennsylvania Avenue fetch on the market?
Barrons wanted to find out, and Ann Gray, of the Los Angeles–based Gray Real Estate Advisors, estimates that $90 million would be a fair price for the president’s residence. The ballpark figure came after the realtor incorporated factors such as the cost of construction ($232,000 in the 1790s, or about $100 million today), potential rental operating income from the home’s 16 bedrooms ($5 million a year), and the market price for comparable properties (Donald Trump’s 17-acre Mar-a-Lago Club in Palm Beach is valued at $100 million).
The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Applebee’s Neighborhood Grill & Bar (Applebee’s) property located at 811 S. Irby Street in Florence, SC for $2,050,000. The City of Florence is the largest city in Northeastern South Carolina and was recently named among America’s top fifty cities for business relocation and expansion by Expansion Management Magazine.
The 3,552 square foot freestanding Applebee’s sits on approximately 1.462 acres off of U.S. Route 52, a strategic highway through central South Carolina, and is in close proximity of several national and regional tenants including Autozone, Jiffy Lube, Piggly Wiggly and CVS. Applebee’s is the largest casual and family dining concept in America, both in terms of number and market share.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the purchaser in the transaction; a Midwest based investment firm.
There are over four years remaining on the Applebee’s lease which expires in December 2020. The lease features a 1.5% rental escalation.
“The market for net lease QSR properties remains active as these assets are in high demand among private investors.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Short term leases with strong real estate fundamentals allow investors to achieve higher yields.”
Blaze Partners has announced the acquisition of The Lakes at Myrtle Park, a 360-unit institutional, Class A multifamily community located in the greater Hilton Head area. Blaze acquired the community from an affiliate of Chartwell Holdings, LLC with the transaction closing on August 5, 2016.
Located in Bluffton, SC, a top retirement and vacation destination minutes outside of Hilton Head Island, the community is situated along Bluffton Parkway, a highly-trafficked thoroughfare with a recently-opened extension that provides one of only two direct access points to Hilton Head Island. The Company plans to strategically invest capital to improve the property for resident enjoyment through the upgrade of select units and community amenities. The transaction represents the Company’s first acquisition since the two founding principles launched the Company in May 2016.
“The Lakes at Myrtle Park represents a phenomenal opportunity to establish our footprint in the Southeast and own the highest-quality asset in the market,” explained Chris Riley, co-founder and Managing Partner. “We are thrilled that we were able to identify and consummate a transaction of this nature within three months of launching Blaze Partners, and we look forward to continuing to actively build a portfolio of Class A, institutional multifamily assets.”
The homeownership rate in the United States tumbled to a five-decade low during the second quarter of 2016, according to data released by the Census Bureau on July 28. At 62.9%, the homeownership rate is exactly where it was in the first quarter of 1965 when “The Sound of Music” was on cinema screens and “Downtown” by Petula Clark was at the top of the charts.
After peaking at 69.2% in the fourth quarter of 2004, the percentage of households owning homes took a nosedive in the face of the worst recession since the Great Depression and unfavorable demographics. The extent of the drop-off in the homeownership rate cannot be over-dramatized.
Between 1965 (when the Census Bureau first began to collect this data) and the deep recession of the early 1980s, the rate grew at a slow and steady rate, peaking at 65.8%. After a 15-year interlude, the number of homeowner households exploded during the mid- to late 1990s, thanks to an assortment of political and economic factors that made homeownership a particularly attractive form of housing tenure.
Milhaus, an award-winning developer that specializes in Class A urban infill, mixed-use and multifamily residential buildings, announces it is expanding its footprint to the Carolinas market. To lead the company’s new development efforts in the Southeast region, Milhaus hired Rachel Russell to serve as vice president of development for the Carolinas.
With the company’s goal to develop and acquire properties with a market value exceeding $4 billion by 2020, Milhaus identified the Carolinas as an extremely desirable market for expansion due to the region’s strong job growth and high demand for multifamily and mixed-use properties in urban neighborhoods. Milhaus currently has a site under contract in Asheville, North Carolina, and Russell will be actively looking for other sites within the Carolinas.
Based in Charlotte, North Carolina, Russell will be responsible for managing the development lifecycle of each project in this new market, including land acquisition, financial analysis, market research, product visioning, construction management and transitioning to operations. She brings extensive multifamily and mixed-use property development experience in the Carolinas to her new role at Milhaus. Prior to joining the company, she served as vice president, real estate development at Charlotte, North Carolina-based multifamily and mixed-use developer Grubb Properties.
News of the company’s recent Asheville, North Carolina site under contract follows other recent site acquisitions in Nashville, Tennessee and Tampa, Florida. With 11,400 apartment units under management and in development this year, the company is pursuing strategic growth opportunities in new and existing markets to reach its goal of having 20,000 units in 10 markets by 2020.
There are a lot of different concepts when it comes to commercial real estate, but few of them are as confusing to both tenants and real estate agents as the way to measure office space for rent. Knowing the difference between rentable and usable square feet can spell the difference between getting a great deal on your office space, or paying more for space you generally don’t use much. However, to make is a little easier to understand the most common rule of thumb in determining the amount of rent to be paid for an office space is usable square footage plus the tenant’s share of common area for the building. But what do those terms really mean?
South Carolina REALTORS® (SCR) today released its July housing market data, revealing that even as prices rise in many communities, homes continue to sell faster now than they have in the past several years.
New listings were down one percent to 9,725. Pending sales decreased almost 12.5 percent to 6,187. Inventory shrank by almost six percent to 36,687 units. Prices moved higher as median sales price was up two percent to $182,900. Homes are selling more quickly than the previous month with most on the market for only 91 days.
Month’s supply of inventory was down eleven percent to six months, indicating that demand increased relative to supply.
“With shrinking inventories, rising prices, and multiple offers, it can be especially difficult for first-time homebuyers. A REALTOR® is your best choice to help you navigate your local market conditions.” said SCR CEO Nick Kremydas.
Bookended by thriving development in Charleston and the Upstate, South Carolina’s economic growth is expected to outpace the nation’s through 2017 and add 110,000 jobs by the end of next year.
The Palmetto State, with its growing industrial might and diversified base, should see economic growth of 3.6 percent this year and 3.8 percent in 2017, Wells Fargo Securities economists Mark Vitner and Misa Batcheller said in a recent report.
For comparison, the U.S. economy is expected to expand 1.4 percent this year and 2.1 percent next year.
“South Carolina’s economy continues to be more firmly anchored in industrial development,” the report said.
The economists pointed to the widening of the Panama Canal and the opening of an inland port at Greer in the Upstate as setting off a development boom for warehouse and industrial space.
Newmark Grubb Knight Frank (NGKF) has closed three tenant representation transactions in the Raleigh-Durham market in North Carolina, for major life science firms including a headquarters’ relocation and consolidation for Parata Systems; a renewal and expansion that significantly increases the footprint of Laboratory Corporation of America® Holdings (LabCorp®); and SynteractHCR’s move to Research Triangle Park for larger space to accommodate steady growth of its operations to support global clinical trials. Executive Managing Director Brad Armstrong and Director Doug Brock of NGKF represented all three tenants in the deals that combined include more than $25 million and 224,000 square feet.
- Parata, a pharmacy technology firm, will relocate to a build-to-suit headquarters at Alexander Industrial Park in Durham. The move also consolidates two Durham locations — corporate offices as well as a manufacturing and distribution center — into new one building with two floors totaling 100,000 square feet.
- LabCorp, the world’s leading healthcare diagnostics company, renews at Eastridge at Perimeter Park in Morrisville in two buildings with a mix of office and laboratories totaling 87,000 square feet.
- SynteractHCR, a clinical research organization, is relocating to 430 Davis Drive in Durham and expanding from 11,078 square feet to 23,403 square feet. The company will occupy the fifth floor in a prominent location along the Triangle Expressway and Research Triangle Park submarket.
“These facilities maximize efficiencies to support business objectives and future growth for three distinctly different life science leaders. Parata, LabCorp and SynteractHCR each found the ideal space to improve operations, mitigate costs and strengthen culture,” Brock said.