U.S. Hotel Buyers Lured Back

Prior to the recession, many buyers stepped back from U.S. hotels and resorts, but the recent rebound has brought back interested buyers as the hospitality sector once again promises high returns. KSL Capital LLC has finished raising a $2.1 billion fund targeting distressed resorts. Westbrook Partners has also bought hotel mortgages at a discount and seized control of eight high-end hotels, which include the Fairfax Embassy Row in Washington and the Westin here in San Francisco.

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Where the Heck is the Market Going?

We work in a firm that is predominantly a leasing brokerage. If you want to find out how the economy is really working, leasing is a true indicator. Lease up is generally happening for the wrong reasons, either because a better lease rate is going there, a sub lease, or a smaller space.

Paradoxically, the nationwide apartment market continues on a steady recovery. Effective rents increased or remained unchanged from last quarter in 29 out of 30 markets, as is occupancy. Decreasing cap rates followed the reduction in interest rates and increased buyer activity, while new construction was virtually nonexsistent.

San Francisco Bay Area Multi-Family parallels the nationwide market.

2010 CMBS Modifications Outnumber the Last 2 Years Combined

Sign of further loan modifications for sellers and possibly buyers. http://bit.ly/cfxg4X

Renter Nation provided by Barron's

The recession and shifting demographics will swell the ranks of people who will rent, not buy, housing over the next five years.

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Buyers Turn Into Lenders

This is definitely a sign of things to come. With credit getting tighter sellers and buyers will have to be a lot more creative in order to close the deal.

http://online.wsj.com/article/SB1000142405274870337410457533726220670251...