Sun, 27 May 2012 01:00:17 -0800WeeblyTue, 10 Jan 2012 02:52:56 -0800http://www.commercialrealtyteam.com/1/post/2012/01/is-miami-asias-new-investment-target.htmlA rendering of Genting’s Resorts World Miami

Malaysian firm Genting’s purchase of the Miami Herald headquarters this year and large-scale plans for a casino resort could be the first of a wave of Asian investment in Miami, brokers and analysts say — both in the commercial and residential sectors.  

While Latin American, Canadian and European buyers have spearheaded a sales surge in Miami, particularly on the residential side, Asian investment could be on the way.

And in fact, Genting is not alone.

Fellow developer Swire Properties, which is working on the mixed-use Brickell CitiCentre project downtown, has significant Hong Kong ties.

One of the notable guests at the official opening of developer Wexford’s University of Miami Life Science and Technology Park last month was a delegation from Taiwan.

“It’s my belief that we’re going to see a lot more Asian investment in South Florida in the future,” said Miami real estate analyst Jack McCabe. “They’ll add to the pot of buyers, which bodes well for sellers in the future. But I think there’s more and more [Asian] interest in South Florida.”

Investment from the far eastern part of the world could follow similar paths to those first treaded by Latin Americans, according to Peter Zalewski, founder of brokerage and consultancy Condo Vultures.

“I would anticipate that it will play out like with other countries,” Zalewski said. “Argentina comes here and builds and sells to Argentines. Brazil comes here and sells to Brazilians. I could see the same thing type of scenario playing out for the Asian buyer, especially for the Chinese.”

Accordingly, residential is likely to follow — and Miami is beginning to see moves by Asian homebuyers, particularly from China — although nothing like the wave of Brazilian and Canadian buyers seen so far.

“I think a lot of people think that’s going to happen, but it hasn’t happened right now, where there are droves of people from China,” said Jill Hertzberg, a sales associate Coldwell Banker. “But we’re ready.”

Asian buyers actually represent about 26 percent of the foreign homebuying market in the United States, according to data from the National Association of Realtors, and there have been more home sales to Chinese buyers than to any country but Canada this year, or about 9 percent of the international market.

Douglas Elliman Florida broker associate Madeleine Romanello said she had been seeing an uptick in interested Chinese clients in the market she largely covers — Miami Beach.

“In general as a city, we’re becoming more global, rather than just South and Central American-style cosmopolitan,” she said.

Hertzberg’s fellow sales associate Jill Eber said one Chinese buyer in Miami Beach with whom she had dealt had chosen not to buy, and instead rented a property for more than $100,000 per month, and another Chinese buyer in Miami Beach paid about $5 million for a property on the island.

“There are definitely Chinese people coming here, and the prediction is that as development gets its footing, it will attract more people from the country, and they will come here,” she said.

But while the Asian entry to the market may be relatively inchoate, it’s likely that Miami has been under consideration for investment for a great deal more time, McCabe the analyst said.

“Asian investors are not ones to make one due diligence trip and decide to invest millions,” he said. “They take their time, and really research and look for certain guidelines and goals.” ]]>Tue, 10 Jan 2012 02:51:45 -0800http://www.commercialrealtyteam.com/1/post/2012/01/asian-companies-helping-miami-cre.htmlAsian companies are behind the two largest commercial projects in Miami this year, with Hong Kong’s Swire Pacific obtaining approval for Brickell CitiCentre, and Genting Malaysia Berhad paying $236 million for the waterfront site of the Miami Herald. The Brickell project is a $700 million plan of retail, hotel, residential and office space. According to Mayor Tomas Regalado, the Swire project will bring in $2 million in permit fees next year, along with $5.5 million in annual property taxes. Regalado visited Taiwan in May, and city officials are planning a trip to Peru in November. In all, overseas buyers bought $447.9 million worth of commercial property in the first half of this year in Miami, according to Real Capital Analytics. “The large-scale projects indicate the interest to stay in the market a significant amount of time,” said Ben Thypin, market-analysis director at Real Capital. “I think of Miami along the lines of a San Francisco or Manhattan.” [Bloomberg] ]]>Tue, 10 Jan 2012 02:50:16 -0800http://www.commercialrealtyteam.com/1/post/2012/01/asia-leads-the-way-in-miami-commercial-investment.htmlWhile it garners an overwhelming share of the coverage, Latin America isn’t the only foreign region betting heavily on Miami real estate. As Seeking Alpha noted, Asian investors – led by Malaysian-based Genting – are now focusing on the city.

Asian companies like Miami because of the rapid growth of its tourism industry, Seeking Alpha said. In 2010 it hosted a record 12.6 million people, and the city is expected to draw more than 17 million in the near future. That growth supports businesses throughout the city and compelled Swire Pacific to plan for a $700 million Brickell CitiCentre, a retail, office, hotel and condominium project.

In 2011, Miami attracted $471.5 million in foreign commercial real estate investment, compared to $142 million and $120.3 million for Palm Beach and Broward counties, respectively, and $205 million for all non-South Florida counties combined.

Thanks to Genting, $252.3 million of the $951.2 million of foreign investment in Florida’s commercial real estate market came from Malaysia, the most of any foreign country.

]]>Fri, 23 Dec 2011 04:25:02 -0800http://www.commercialrealtyteam.com/1/post/2011/12/miami-beach-hotel-prices-top-vegas.htmlHotel prices in Miami Beach are often as much as twice as high as similar properties in Las Vegas, according to an analysis by Strategic Advisory Group. The study was done on behalf of the city of Miami Beach. It comes in light of a recent vote against a potential casino resort in the city, and amid growing concerns over the impact of the addition of thousands of potential hotel rooms in downtown Miami. "If you put 5,000 hotel rooms in downtown they will suck out everything surrounding them," said Stuart Blumberg, the former head of the Greater Miami and the Beaches Hotel Association. "It will take 19 years for the current hotels to break even. They're going to destroy the market inventory." [Miami Herald]

]]>Sat, 10 Dec 2011 05:05:18 -0800http://www.commercialrealtyteam.com/1/post/2011/12/mortgage-complaint-window-now-open.htmlNew federal mortgage complaint and dispute resolution hotline available!
 
Got a beef with your mortgage lender? Is your bank unresponsive when you complain that your escrow account is fouled up and making your monthly payments needlessly high?

Did your loan officer bait-and-switch you into a more costly home loan than you were originally promised? Or worse yet: Did your home loan servicer ignore you when you told him you've had an unexpected drop in income and needed a modification to avoid missing payments?

If any of these situations sound familiar, here's a heads-up about the newest and least-publicized source of federal help: the Consumer Financial Protection Bureau's home mortgage complaint and dispute resolution hotline. Never heard of it? That's not surprising since it only went live Dec. 1 and the CFPB hasn't said much about it, preferring to ease into the potential snake pit of mortgage issues that American consumers have with their lenders rather than get overwhelmed.

The complaint hotline is accessible online at the CFPB's website, by toll-free phone as well as by regular mail and fax.

The bureau was created by last year's Dodd-Frank financial reform legislation and is supposed to look out for your interests in banking, financial products, home loans and all other forms of consumer credit. Its mortgage complaint service is an extension of the agency's existing hotline for credit card-related disputes and inquiries, which began July 21.

So far, according to the bureau, the card hotline has handled 5,074 complaints. Of this total, it referred 84 percent directly to the credit card issuers -- mainly big banks -- for resolution. Some complaints came with incomplete information or were referred to other agencies for action. Approximately 74 percent of all the complaints were subsequently reported back from banks as resolved, and 71 percent of total resolutions were not disputed by the consumers who lodged the original complaints.

Just under 13 percent of all credit card complainants reported that they were not satisfied with the card issuer's actions.

The credit card complaint service is likely to provide a template for the agency's approach to mortgage problems, which are expected to be more voluminous. When a borrower submits a formal complaint to the bureau, complete with account numbers and other key identifiers, the information will be sent immediately to the lender or mortgage servicer named in the complaint using a secure web portal.

The lender must then review the information, contact the customer if needed, and determine what action to take to resolve the matter. Next, the lender is supposed to report its action -- if any -- to the bureau, which sends it on to the borrower for review. Throughout the process, according to the CFPB, borrowers "can log onto the (agency's) secure 'consumer portal' or call the toll-free number to receive updates, provide additional information, and review responses" from the lender.

If the dispute focuses on what is primarily a matter of state regulation or is beyond the purview of the CFPB, the dispute may be referred to other agencies. Similarly, if the dispute points to fraud or identity theft, the bureau is likely to refer it to either a federal or a state law enforcement authority. For the time being, the CFPB is referring all complaints involving small banks or their subsidiaries that have less than $10 billion in assets to other agencies. In the mortgage field, however, the vast majority of loan originations and servicing is controlled by the top 10 largest banks or their subsidiaries, which means that a high percentage of the complaints received will likely be handled by the CFPB.

How is this going to work in practice? Though consumer groups are optimistic, and the CFPB says it's staffed up and ready to go, some mortgage industry leaders worry that the agency could be taking on more than it can realistically handle, and raising borrower expectations that can't be met.

David Stevens, president and CEO of the Mortgage Bankers Association, said in an interview that while he has found the CFPB to be "fairly thoughtful" in its approach to lending and disclosure issues to date, he is "concerned that they are moving too quickly too soon." If they are not properly equipped to handle large volumes of emails and calls, the service could be "an investigatory black hole" where complaints are filed but not addressed quickly or adequately, and it could be "a net negative" for borrowers who have genuine problems, he said.

Since the agency is expected to report on the initial months' results sometime early in 2012, Stevens and consumers should have answers fairly soon. Meanwhile, if you've got a legitimate complaint, give the hotline a shot. ]]>Thu, 03 Nov 2011 10:04:33 -0800http://www.commercialrealtyteam.com/1/post/2011/11/florida-market-strengthens-due-to-brazilian-buyer-influx.htmlFlorida strengthens Brazilian ties.  Motivated by a residential market largely buoyed by an influx of Brazilian homebuyers, Florida Realtors led a trade delegation to Brazil last week to discuss real estate investment in Florida. "Brazilians love owning a home in Florida for a variety of reasons," said Patricia Fitzgerald, president of Florida Realtors and a member of the delegation. "Brazilians see the entire state, from Key West to the Panhandle, as not just the place to be but the place to buy." According to the organization's 2011 Profile of International Homebuyers in Florida report, Brazilian buyers had an 8 percent share of the foreign buyer market last year. Related CEO Jorge Perez told The Real Deal last week that Brazilians, along with Latin American buyers in general, had "saved" Miami's market. [World Property Channel]

http://therealdeal.com/miami/articles/florida-strengthens-brazilian-ties ]]>Thu, 03 Nov 2011 04:52:35 -0800http://www.commercialrealtyteam.com/1/post/2011/11/worldcenter-attracts-casino-interest-from-casino-giant-steve-wynn.htmlThe Miami Worldcenter project, which yesterday announced an investment from Los Angeles-based CIM Group, could be the site of Miami's second proposed casino, and Steve Wynn reportedly checked it out last month. "He's excited about Miami," a source said. Las Vegas Sands is also interested in the site. The land is owned by Boca Raton-based Art Falcone, and has a total of 20 acres. Developers said the land "could easily accommodate a gaming component" if Florida lawmakers approved it, according to a press release. Las Vegas Sands is the company of another casino mogul, Sheldon Adelson, who has said that he would only consider a casino if his were the only casino in the area.
http://bit.ly/uPj0Wx

]]>Thu, 27 Oct 2011 04:29:43 -0800http://www.commercialrealtyteam.com/1/post/2011/10/administration-announces-refinance-program-for-underwater-borrowers.htmlGee, wonder how the other 5 Million Homeowners who already LOST their homes to foreclosure
feel right about now???

It’s official. The Federal Housing Finance Agency (FHFA) unveiled a new, revamped government mortgage refinancing program Monday.

The initiative involves a series of rule changes to the Home Affordable Refinance Program (HARP) to allow more underwater homeowners to reduce their mortgage debt by taking advantage of today’s rock-bottom interest rates.

Mortgages backed by Fannie Mae and Freddie Mac, and originally sold to the GSEs on or before May 31, 2009 are eligible for the program.

Under the revised HARP guidelines, the 125 percent loan-to-value (LTV) ceiling has been eliminated. Previously, only borrowers who owed up to 25 percent more than their home was worth could participate in HARP. That limitation has now been removed. The program will continue to be available to borrowers with LTV ratios above 80 percent.

The new program enhancements address several other key aspects of HARP that industry participants say have restricted its impact, including eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers, as well as allowing mortgage insurers to automatically transfer coverage from the original loan to the new loan.

In addition, Fannie Mae and Freddie Mac have done away with the requirement for a new property appraisal where there is a reliable AVM (automated valuation model) estimate already provided by the GSEs, and they’ve agreed to waive certain representations and warranties on loans refinanced through the program.

Not only are loans eligible for HARP considered “seasoned loans,” but a refinance helps borrowers strengthen their household finances, reducing the risk they pose to the GSEs. Thus, FHFA feels reps and warranties are not necessary for some of these loans.

With Monday’s announcement, the end date for HARP has been extended from June 30, 2012 to December 31, 2013.

The GSEs will release program instructions to lenders by the middle of next month, and FHFA expects some lenders will be ready to accept applications by December 1.

Since HARP was rolled out in early 2009, approximately 1 million homeowners have refinanced their mortgage loans through the program. FHFA estimates that with the revised guidelines, another 1 million will be able to take advantage of the program.

To qualify, borrowers must be current on their mortgage payments, but government officials believe by opening HARP up to more homeowners with higher thresholds of negative equity, it will help to prevent foreclosures by erasing the primary motivation behind strategic defaults.

Economists at the University of Chicago Booth School of Business estimate that roughly 35 percent of mortgage defaults are strategic. Numerous industry studies have found that homeowners who owe significantly more than their home is worth are more likely to throw in the towel and walk away from their mortgage debt even if they have the ability to continue making their payments.

“We anticipate that the package of improvements being made to HARP will reduce the Enterprises credit risk, bring greater stability to mortgage markets, and reduce foreclosure risks,” FHFA stated in its announcement Monday.

Fannie Mae and Freddie Mac also released statements in response to the announcement.

Michael J. Williams, Fannie Mae’s president and CEO, called the program a “welcome development.”

“By removing some of the impediments to refinance, lenders can more easily participate in the program allowing more eligible homeowners to take advantage of the low interest rates,” Williams stated.

Charles E. Haldeman, Jr., CEO of Freddie Mac said, “These changes mark another step on the road to recovery for the nation’s housing market.”


]]>Thu, 27 Oct 2011 04:26:56 -0800http://www.commercialrealtyteam.com/1/post/2011/10/pmi-mortgage-insurance-under-conservatorship.htmlThey took in all the those premiums over the years, but when it comes time to pay . . . Where did the money go?

PMI Mortgage Insurance Co. (PMI) and PMI Insurance Co. (PIC) have been taken into conservatorship by the Arizona Department of Insurance.

PMI announced on its website that there will not be a moratorium on claim payments. The director of the Arizona Department of Insurance will make claim payments at 50 percent. The other half of the claim will be deferred as a policy holder claim, according to PMI.

The action occurs after an August 19 announcement that the regulator was prohibiting the insurance company from writing new insurance policies. The company was permitted to issue new mortgage policies under pending contracts until the end of the day September 16.

Following the decision by the Arizona Department of Insurance, Fannie Mae and Freddie Mac announced that PMI and its affiliates were no longer approved mortgage insurers.

PMI was previously one of the largest issuers of mortgage insurance, but according to the director of the Arizona Department of Insurance, PMI and its affiliates have been experiencing losses since 2007 and have been under close monitor since that time.

As of June 30, PMI has been unable to meet its required minimum policyholder position.

“We will continue to support our customers’ ongoing policy servicing needs and loss mitigation programs,” stated a notice on the company’s website.

“PMI will maintain all systems, processes, and contact points for policy servicing, loss mitigation, and claims operations just as we do today,” the notice continued.



]]>Thu, 27 Oct 2011 04:25:06 -0800http://www.commercialrealtyteam.com/1/post/2011/10/bank-of-america-on-the-brink-of-bankruptcy.htmlhttp://nyti.ms/rSG8eC ]]>