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Commercial Services

July 2016 Newsletter

Calendar of Events

7/13/16 NAIOP Monthly Breakfast Meeting 
7 am - Four Seasons
Innovative Projects:
47+7, CLT and Amazon HQ

7/15 - 7/17/2016 - 2016 NAHRO Summer Conference - National Association Of Housing And Redevelopment Officials
Hilton Portland & Executive Tower
921 SW Sixth Avenue
Portland, OR 97204

7/19/2016 -  Seattle Workplace of the Future
Tenant's Needs & How to Meet Them in the Future of Office Space
Seattle, WA

Intercontinental Hotel Dallas
Join Mark and other industry trend-makers at Bisnow’s national all-day multifamily event

7/21/16 - Property Tour 2016: Denny Regrade
10:30 AM -  6:00 PM PDT​
The Denny Regrade, encompassing Belltown and the Denny Triangle, exemplifies downtown Seattle’s progression as a place to live, work and play. 

7/25/16 - Change Makers for a Better Future
4:30 PM -  7:30 PM PDT
Join us for a one-of-a-kind networking event bringing together voices from a diverse group of change-making organizations.

08/03 - 08/04/2016 - Sunbelt Builders Show 2016
Gaylord Texan Resort & Convention Center
1501 Gaylord Trail
Grapevine, TX 76051

8/16 - 8/19/16 - School of Mortgage Banking I Course 
8AM – 5PM
Two Union Square, Seattle
MBA Education and the Washington MBA are pleased to bring best in class training to Seattle, WA. Support your state association and begin advancing your career by enrolling through the Washington MBA today!

9/11 - 9/14/2016 - Pacific Northwest Mortgage Lenders Conference
The event will again be at The Grove Hotel in beautiful downtown Boise, Idaho. Functions will begin Sunday evening with the conference getting underway on Monday afternoon with one of our featured speakers from the FHA Santa Ana Home Ownership Center

9/14 - 9/15/2016 IREM Continuing Education Conference
Fifteen Washington State Clock Hours In Two Days
With commercial and multi-family topics, the IREM Continuing Education Conference offers flexible & current education programming designed to complement your real estate industry niche. ​

10/24 - 10/27/16 -  ULI Fall Meeting 
Kay Bailey Hutchison Convention Center Dallas, TX
The ULI Fall Meeting attracts more than 6,000 leaders from every sector of the real estate industry and is a phenomenal opportunity to:

 1/24-26/2017 - 2017 NMHC Annual Meeting & Apartment Strategies Outlook Conference • Manchester Grand Hyatt • San Diego, CA - See more at: http://www.titlejava.com/july-2016.html#sthash.eylRwh3M.dpuf

Local Real Estate News

Real estate development brings big change to Seattle's Little Saigon
​A rich history has played out across Seattle's Chinatown-International District, including on a large parcel in Little Saigon.

Seattle leaders propose to limit Airbnb and other short-term rentals
City of Seattle officials on Wednesday rolled out a proposal to limit apartment landlords from converting housing units to short-term...

Like Seattle, Bellevue also considering 'audacious goal' of building a lid, park over the freeway
Mercer Island has a park over its freeway. Seattle has one, too, and there's a move ......

​Lacey commercial real estate company creates new division
​Prime Locations, a Lacey-based commercial real estate company, has created a new division with some well-known leaders in ......

Seattle Mayor Ed Murray wants to sell Pacific Place garage for $87 million
​Seattle Mayor Ed Murray on Tuesday proposed selling the Pacific Place mall garage for $87 million to mall owner Madison.....

Taiwanese company plans massive 'living wall' in Belltown apartment project
​A Taiwan-based company called Chainqui Development plans to soon start building a Seattle apartment building called Urban....

Schnitzer West buys Seattle high-rise next to where it's building a new tower
​Seattle real estate company Schnitzer West and a global firm called Investcorp on Tuesday said they bought the 41-story office...

Big hotel in SeaTac trades hands for $91 million
​One of the Puget Sound region's biggest hotels, the Marriott in SeaTac, has been sold for just under $91.1 million, according to .....

8,660 homes + 2,940 hotel rooms = record construction in Seattle
​Almost every metric in the Downtown Seattle Association's mid-year development guide astounds, though the amount of office......

Vulcan buys site, Maaco vows to stay 'until they drag our claws out of the ground'
​Paul Allen's company, Vulcan, on Thursday paid nearly $10.2 million for a Seattle property in South Lake Union where the.....

Now we know how much investors paid for Seattle office high-rise
​Schnitzer West and Investcorp bought the 41-story office tower at 901 Fifth Ave. in downtown Seattle for $223.5 million,.....

Cost of Seattle convention center expansion rises to $1.6 billion
​The cost to expand Seattle’s downtown convention center is now $1.6 billion, up from an earlier estimate of $1.44 billion. 

Kent Valley: The next South Lake Union
​Bill Ellis wants to turn the industrial Kent Valley into an innovation district.

Exclusive: Take an inside look at luxury hotel Thompson Seattle, set to open Friday
​Thompson Seattle, a 158-room luxury boutique hotel, will open this week.

Seattle developer American Life agrees to pay $1.2M civil penalty to SEC related to EB-5 program
American Life and its CEO, Henry Liebman, will pay a $1.24 million civil penalty to the....

​Hong Kong Developer Buys Site for Multifamily Development in Seattle for $17.1M
Create World America has acquired an 8,748-square-foot residential development

Seattle company named national real estate developer of the year
​There are thousands of commercial real estate development companies in the United States, and the best one is headquartered....

Brexit means trouble for Seattle-area tech, aerospace, but not commercial real estate
​The decision by United Kingdom voters to exit the European Union was roiling financial markets Friday, with the Dow Jones .......

In Seattle, these real estate developers seek a profit and social equity
A group called Locus: Responsible Real Estate Developers and Investors this month honored Seattle developers Maria ......

The Amazon effect: Warehousing giant plans another multi-story project in South Seattle
Prologis, which owns more warehouses and distribution centers than anyone in the world, is making another development play..

Selig's tower shrinks, slashes amount of office space
​Martin Selig Real Estate has significantly reduced the size of the company's Federal Reserve project in downtown Seattle, .....

People are literally camping out to buy condos, so when will they start building them?
​Given what went down in Seattle early Saturday morning, you'd think developers... 

New bar, 'general store' part of big Smith Tower renovation
Seattle's historic Smith Tower is undergoing a multi-million dollar renovation, including a new observation deck cafe and bar inspired....

Here's how downtown Seattle could create 45 acres of developable land (slideshow)
​Architects are known for dreaming big, and in Seattle one group's grand idea is to build a massive lid over Interstate 5.

How the value of this Redmond building nearly doubled in just two years
​The once-struggling Redmond Technology Center office building is worth 90 percent more than it was only two years ago.

Bellevue, developer tangle over City Hall's views of Mount Rainier
Bellevue wants to see dense development in urban areas, but perhaps not if big, tall buildings would block the view of Mount....

Chinese investment in Seattle real estate is 'increasing dramatically'
​Don't expect the appetites of Chinese real estate investors for Seattle-area property to be sated anytime soon.

Renters: Capitol Hill’s silent majority is organizing
​Since renters on Capitol Hill are transient and apathetic to city affairs, their concerns are less worthy of consideration when crafting public...

How a developer used a T-Rex in a glass box to make a case for building skyscrapers close together
​A 500-foot-tall apartment/hotel tower planned for downtown Seattle will be as close as 22....

Rents surge as Seattle apartment vacancies plunge to 11-year low
​If you thought the Puget Sound region's flurry of apartment construction would drive rents down, you were wrong.

Think it’s hard to buy a house in the Seattle area? Try looking for a warehouse
​Commercial real estate experts from across the country rank Seattle as the nation's top industrial market and recommend that ....

One project, two towers, 940 apartments near Amazon HQ (slideshow)
​Crescent Heights, which wants to build what would be Seattle's tallest tower, is moving ahead with a second apartment project, and...

Chinese investment in Seattle real estate is 'increasing dramatically'
​Don't expect the appetites of Chinese real estate investors for Seattle-area property to be sated anytime soon.

$29.3M deal: Big apartment company buys First Hill development sites
​Alliance Residential, a large apartment company that has been active in Seattle, is moving ahead with two projects totaling 400.. 

Multifamily Real Estate News

Berkshire Returns to Portland with Second Multifamily Acquisition
​Boston-based Berkshire Group announced it acquired the Cook Street Apartments community from Seattle-based developer.....

With Busy Summer Ahead, WA Farmworkers Find Safe Housing
​As grocery stores and farmers markets stock the fresh cherry crop for which Washington is famous, one organization is focused on the.....

Miami’s Condo Frenzy Ends with Inventory Piling Up in New Towers
​Miami’s crop of new condo towers, built with big deposits from Latin American buyers and lots of marketing glitz, are opening with....

Here’s what Brooklyn’s multifamily players fear most
​The Brooklyn real estate market has several bogeymen, and on Wednesday, some of the borough’s leading multifamily investors and...

​HUD Proposes Requirement for Broadband Installation in HUD-Financed Multifamily Housing
​Much has been written about the “digital divide” – the connectivity gap between .....

IVY ZELMAN: 'There's a shortage of shelter'
​Speaking with Barron's this week, Zelman — one of the top housing analysts around who rose to fame with a big call against homebuilders ahead of the housing crisis.....

From cap rates and a flight to yield to where investors are coming from and a crisis of affordability, here are five things we learned this morning at our 2016 Atlanta Multifamily...

Apartment Construction Not Slowing Down, According to Neyland
Ella Shaw Neyland, president of Steadfast Apartment REIT, joined REIT.com for a video interview at REITWeek 2016: NAREIT’s.....

Homelessness Assistance Resources for Multifamily Housing Owners and Managers
​Opening Doors, the Federal strategic plan to prevent and end homelessness, provides a framework for Federal agencies and state.....

Q&A on Seattle’s proposed housing affordability policy
​The Seattle City Council is considering legislation that would require developers of multifamily housing to include some......

Multifamily Construction, Rentership Demand Driving Residential Recovery
​Thanks to rising incomes and a strong demand for rental units, the multifamily sector continues to lead the U.S. housing ....

Apartment construction boom continues in suburban Bothell
​An Eastside company that has had success building apartment projects in and around downtown Bothell is back with another one.

Four Affordable and Workforce Housing Policies, Initiatives Selected as ULI Award Finalists
​The finalists for this year’s ULI Robert C. Larson Housing Policy Leadership Awards—an annual recognition of the innovative ways the public sector is addressing the affordable housing crisis in the United States—were.....

The Biggest Challenges In Multifamily Construction
Blending four generations in the workforce and remaining current with technology and training are some of the most prominent.....

Equity Residential Warns of Softening NYC, San Francisco Rents
​Softening apartment rents in New York and San Francisco have forced landlord Equity Residential to lower its revenue forecast for ...

Inside the deal: China's largest homebuilder goes on blind date, picks up Seattle investment
Earlier this month, Seattle Mayor Ed Murray announced that China's largest homebuilder

CoStar: 2016 expected to be peak for multifamily development
​Apartment construction could be hitting its peak this year, according to the commercial real estate analytics company CoStar.

Debt Placement Surges For Value-Add Multifamily Assets
​Holly Ridge Apartments is one example of the type of value-add multifamily asset with a prime location that continues to draw ......

Commercial/Multifamily Mortgage Debt Outstanding Continues Strong Growth
The level of commercial/multifamily mortgage debt outstanding increased by $35.3 billion in the first quarter of 2016, as three of the four

Rents Are Booming, But for How Long?
​The largest U.S. apartment landlords are betting that hordes of millennials streaming into cities will keep pushing rents sky-high.

High-performance multifamily construction helping drive EEBA agenda
Demand for multifamily rental housing in the United States was higher than expected in 2015, absorbing much of the newly completed supply, according to government research. With interest in those structures....

Taiwanese company plans massive 'living wall' in Belltown apartment project
​A Taiwan-based company called Chainqui Development plans to soon start building a Seattle apartment building called Urban......

Washougal eyes multi-family tax exemption
​The Washougal City Council is considering a property tax exemption program for developers of mixed use, multi-family residential housing.

Crowdfunding Fills Construction Lending Gap Left by Banks
Crowdfunding websites are becoming an important piece of the real estate financing puzzle, especially for apartment developers ...

Bellevue apartments sell for $118M
Security Properties and Pacific Life Insurance Co. have purchased Overlook at Lakemont, a 400-unit apartment complex in Bellevue, for $118 million from Heitman, a Chicago......

‘Luxury’ developer explores mixed-use project for 23rd and Union’s Midtown Center
​A developer of “luxury communities” around the U.S. is exploring a plan to build a mixed-use project at one of the most prized re-......

​Millennials are shaping multifamily developments in a way that few generations have before, and doing so in surprising......

Security Properties Acquires Overlook at Lakemont Apartments in Seattle Submarket for $118 Million
​Security Properties and Pacific Life Insurance Company purchased Overlook at Lakemont,...

Does Fiber Broadband Boost the Value of Multifamily Homes?
​On Monday at the FTTH Connect 2016 conference, the FTTH Council Americas released a study that finds that fiber .....

Portland signals support for new construction excise tax
​The Portland City Council signaled support Thursday for a new tax on development that would raise money for affordable housing.

Interview: USAA’s Managing Director of Multifamily Development
​When it comes to all things dealing with multifamily investments at USAA Real Estate Company, Hailey Ghalib, the company’s.....

US Real Estate: Strong Gains in Public Works, Power Plants & Multifamily Housing
At a seasonally adjusted annual rate of $636.7 billion, new construction starts in May increased 5% from April, according to Dodge

Freddie Mac Prices $950 Million Multifamily K-Deal, K-722
 Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are backed..

Chinese builder buys site, plans for 26-story apartment in South Lake Union
​A Chinese real estate developer, active in downtown Bellevue and Seattle, has staked a claim in South Lake Union, where it's ......


Distressed Real Estate

A Big, Distressed Question
The infamous mortgage crisis, which began nearly 10 years ago, had major implications on residential real estate. It also created serious problems for the commercial real estate industry — as the number of distressed assets grew, lending came to a halt.

CMBS Late-Pays Rise for Third Month
​CMBS delinquencies continue to trend in the wrong direction, although from a historical perspective they’re a fraction of what they were at the high point of late-pays among securitized loans.

The Coming Commercial Real Estate Bust
​I remember when you could walk into a Sharper Image store and fiddle with an assortment of high-tech gadgets. Alas, the company’s bankruptcy relegated the brand to catalog and website form.


REITs Still Out of Reach for Mainland Chinese Property Firms
​SHANGHAI—Mainland Chinese property companies have for years longed to join the hundreds of real-estate companies .....

Fitch: U.S. REIT Performance Tethered to GDP & Unemployment
Two pre-eminent economic factors will go a long way towards dictating performance for U.S. REITs for the remainder of 2016, ......

Activist Investors Have a New Favorite Target: REITs
​Activist investors like Carl C. Icahn and William A. Ackman know how to rattle the cages of Corporate America’s chief executives.

REIT Surprise: How Real Estate Crushed the Stock Pickers
​A very boring stock-market event later this summer will provide a surprising answer to a perennial question: Why are most fund.....

Canadian REITs adopt new investor protections to close the gap with stocks
​A handful of Canada’s real estate trusts, or REITs, are closing gaps in investor protection and giving unit holders who are discontented...

Optimism Abounds at REIT Week
​Self-storage and apartments are leading the way in terms of income growth, but virtually all property segments are going strong by historical standards.

REIT Industry Stock Outlook - June 2016
​The year 2016 has so far favored the U.S. Real Estate Investment Trust (REIT) industry. In fact, despite the rate hike last December, the first one since 2006, the REIT industry managed ....

​REIT Sector Gets Lower Marks on Pay Plans
​The real-estate investment trust industry, which has gotten high marks in recent years for adopting compensation programs that investors like, has suffered a bit of slippage....

Part 1: With Commercial Real Estate Seemingly at its Cyclical Peak, What Are REITs to Do?
​Publicly-traded REITs have enjoyed a robust recovery since the last recession. It’s a far cry from the days of plummeting stock prices, ....

Mortgage Lending Key to Outlook for Multifamily REITs
​In the latest episode of The REIT Report: NAREIT's Weekly Podcast, Britton Costa of Fitch Ratings discussed how developments....

4 Types of REITs for Investors
​When the stock market looks scary and bonds are stingy, many investors looking for something different come across real estate investment trusts. But then the options .....

REITs Lean on Term Loans for Capital
​With capital issuance down in the face of still-turbulent bond market conditions, REITs have continued to rely heavily on term loans, Fitch Ratings said Friday.

Hilton’s Park Hotels & Resorts REIT By The (Pro Forma) Numbers
Hilton Worldwide has filed its Form 10 Registration Statement with the Securities and Exchange Commission detailing its.....

Real-Estate Magnate Faces Criticism on Proposed Deal
​Nicholas Schorsch, whose multibillion-dollar real-estate empire was rocked by an accounting scandal two years ago, has ......

How the Upcoming Fed Decision Could Affect REITs
​Real Estate Investment Trusts have recently been one of the market's brightest sectors. ​Shortly before the Federal Reserve Open....

What Will Preserve The REIT Bull Market?
​Now that REITWeek is complete and I wanted to provide an update on the conference and also provide specific bullet points relative to the management ......

IRS Closes Remaining REIT Spinoff Loopholes
​The IRS and Treasury Department have closed a gap in tax law that allowed companies to spin off property holdings ....

REITs Still Out of Reach for Mainland Chinese Property Firms
​Mainland Chinese property companies have for years longed to join the hundreds of real-estate companies throughout the .....

No Brexit Bargains For U.S. REIT Investors
We frequently recommend diversification within individual investor asset allocation portfolios. Today we want to stress the importance of marinating a wide margin ....

​REIT Rebound: Where Is Commercial Real Estate Headed?
​Steve Brown, American Century senior portfolio manager, discusses the outlook for REITs with Bloomberg's Vonnie Quinn ....

UPDATE 1-U.S. lawmakers oppose Caesars' casino REIT plan
​U.S. Congress members urged Treasury Secretary Jacob Lew to deny Caesars Entertainment Corp a favorable tax ruling .....

​REITs Ride Macro Rollercoaster, But Not on the Same Track
​Above and beyond the efforts individual companies may make to improve their balance sheets, the near-term future of US ....

REITs Beat the Market in May
​REITs outpaced the broader market in May, as near-term fundamentals remain positive and capital continues to flow into the sector, analysts said.

Get Real: Billions Set to Pour Into Real Estate Investments
​A big change is coming in how stock indexes measure the market, one that's likely to push tens of billions of dollars into real estate ....

REITs Are Selling or Building, But Not Buying
​The current real estate cycle is maturing after more than seven years of expansion. Real estate investment trusts (REITs) in all sectors are responding to market conditions by .....

Waivers of Ownership Limitation Provisions in REIT Charters
​Ownership limitation provisions are designed primarily to protect one of a REIT’s most valuable assets – its status as a REIT under .....

Fitch: Access to Capital Remains Key Concern for REIT Investors
​Fitch Ratings-New York-16 June 2016: Liquidity and access to capital are top concerns among U.S. REIT investors, according to Fitch Ratings.

​REIT returns strong, allocations remain low, study finds
​While REITs had the highest average net return, investors had the lowest allocation to the securities, on average just 0.6% of total....

Part 5: REITs Have been Net Sellers
​Overall, REITs have been net sellers in 2016. In the first quarter, REITs sold more than $15 billion in properties and bought less than $6 billion, according to CoStar. The volume in ....

Part 3: Healthy Balance Sheets
​A majority of respondents indicated that they think REITs have been good at managing their balance sheets. Overall, 60 percent said that REIT balance sheets are “balanced” and .....

Blogs and Education

Commercial Real Estate Solid Says Marcus & Millichap CEO
​Office properties are the only major property type that has yet to surpass pre-recession price levels. That means prices can still go up and commercial real estate investors have room to profit, said Hessam Nadji, CEO of Marcus & Millichap - See more at: http://www.titlejava.com/july-2016.html#sthash.eylRwh3M.8DjqcdrF.dpuf

Job Opportunities

Director of Construction - Multifamily
Lennar Multifamily Communities Seattle, WA 6/7/2016
​Provide leadership for all on-site personnel and to manage all aspects of the pre-construction and construction of each assigned project.   Director of Construction is responsible for supervising all on-site construction and land development, including budget, scheduling, quality assurance and safety on the job site and to ensure compliance with plans, specifications and relevant building codes.

Client Services Coordinator, InDesign
CBRE Bellevue, WA 6/2/2016
​Provides general administrative support to an office or group of sales professionals. Responsible for preparing proposal, presentation and communication materials. Coordinates the distribution of internal and external marketing information.