News

Sponsor Trumps Project

While elementary in concept, the market is reminding us that an “A” sponsor and a “B” project overrides an “A” project and a “B” sponsor.  In search of investment volume over recent years, the first round of questions probed by capital generally focused more on deals and less about sponsors. More recently, we have been […]

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Are land-use restrictions impairing economic growth?

To continue on the topic of the consequences and negative impact of too many land-use restrictions from our last month’s edition, Justin Fox, author of the Myth Rational Market, presented in Bloomberg View a catching point of view on zoning regulation’s impact in San Francisco. He notes that despite San Francisco being arguably the largest center […]

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Controlled Disruption

As we begin another new year, this one seemingly at a much more apprehensive starting point, it made me think of a term that is the by-product of two separate premises. Two premises that provide turbulence and uncertainty in their own right, yet also offer investment opportunity and the potential for longer-term, sustained market growth. […]

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2016 – We’ll See…..

“Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.” – Lao Tzu As 2016 kicks off, I’m reminded of one of my favorite lines from the end of the film Charlie Wilson’s War, after the Soviets have been defeated in Afghanistan and are retreating: On his sixteenth birthday a boy gets a horse as a present. […]

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The Consequences Of Too Many Land-Use Restrictions

As a regular reader of our social media posts, you probably have noticed that we have been focusing lately on the negative effects of heavy land-use restrictions in closed access cities and it seems like the idea is starting the get some traction in the mainstream. Even the Nobel Prize winner, Paul Krugman, typically in favor of […]

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Institutionalize Me Please

Over the course of the past 10+ years, there has been a prevalent shift slowly occurring within our industry that seems to be near its final stage with no reversal in sight…..the institutionalization of real estate.  Unfortunately, this reality at times comes at the expense of the entrepreneurial developer/operator who historically made up the real […]

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2015 has been filled with stories about how housing starts have missed the mark.

Fingers have pointed to shortage of lots, shortage of labor and even high construction cost. According to John Burns Real Estate Consulting, the answer might be simpler than we think. A research note published last week illustrated that many markets in California now have median new home prices above GSE conforming loan limits, making obtaining financing harder […]

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Abundance of Capital with a Spotty Eagerness to Invest 

As we wrap up another year, questions are plentiful as to where we are in the real estate cycle. Traditionally, herd mentality seemed to rule and most market opinions remained consistent. Today, however, we hear perspectives across the board. Outside of the uncertainty relative to international capital flows, one potential driver of such discrepancy…..fund life […]

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