Investments

TCI, Southern Properties Capital, Macquarie partnering to build significant multifamily portfolio

Joint venture already has 10,000 units, with plans for much more
Southern Properties Capital, a subsidiary of real estate investment company Transcontinental Realty Investors that operates primarily in Texas and specializes in Class A multifamily, is forming a joint venture with a subsidiary of Macquarie Group, the global finance giant. According to the companies, the joint venture will focus on creating a “business platform that will allow dramatic expansion in the multifamily arena.”
Read More

Minneapolis is about to abolish single-family residential zoning

Minneapolis 2040 would allow multifamily housing in single-family neighborhoods
In a move that strikes a blow against decades of racial inequality and could prove to a boon to multifamily developers, the city of Minneapolis is on the verge of ending single-family residential zoning. Under the plan, duplexes and triplexes would be allowed in neighborhoods that only previously allowed single-family housing.
Read More

The end of Fannie, Freddie conservatorship? Trump reportedly picking Mark Calabria to lead FHFA

Calabria currently serves as VP Mike Pence's economist
Long-time housing finance reform advocate Mark Calabria is reportedly the Trump administration's choice to lead the FHFA after Mel Watt's term ends early next year. Calabria currently serves as Vice President Mike Pence's chief economist. As Pence's economist, Calabria famously called for the end of the conservatorship of Fannie Mae and Freddie Mac. Is that a sign of things to come?
Read More

Wells Fargo to pay $17 million to Illinois pension funds over crisis-era mortgage bonds

Brings state’s total recovery to more than $500 million
Wells Fargo will pay more than $17 million to a series of Illinois pension funds after settling with the state over the bank’s “misconduct in its marketing and sale of risky residential mortgage-backed securities leading up to the 2008 economic collapse,” Illinois Attorney General Lisa Madigan announced this week.
Read More

Home price appreciation is slowing down

Equity is still climbing, just not as fast as before
The average homeowner gained $12,400 in equity in one year's time, according to CoreLogic's Home Equity Report for the third quarter of 2018. And while that's not exactly nothing, it's the smallest annual increase in two years, reflecting a slowdown in home price growth.
Read More

It's official: Senate approves Kathy Kraninger to serve as next CFPB director

Trump's nominee set to take over for Mick Mulvaney
Long the target of Republican ire, the Consumer Financial Protection Bureau will soon be run by the Republican president's handpicked choice. In what amounted to an anticlimactic vote in a nearly empty Senate chamber, the Senate, voting along party lines, voted Thursday to approve Kathy Kraninger as the next director of the CFPB.
Read More

CBRE: Here’s where multifamily investors should be putting their money in 2019

Why workforce housing will outperform the rest of the market
While most of the market attention tends to be focused on Class A multifamily buildings, new research from CBRE suggests that there is another class of multifamily housing that represents a much larger opportunity for investors – workforce housing. And going into 2019, market conditions are positioning workforce housing for continued return on investment.
Read More

D.R. Horton boosts Iowa homebuilding business by acquiring Classic Builders

D.R. Horton will pay $60 million for acquisition
D.R. Horton is set to grow its homebuilding business in the state of Iowa, as the homebuilder announced Tuesday that it acquired Classic Builders, one of the largest homebuilders in Des Moines. According to D.R. Horton, it expects to pay approximately $60 million in cash for Classic Builders and its homebuilding assets.
Read More