Real Estate Update

Dave Gosine asked:




STAMFORD, Conn. and LOS ANGELES — Building on its growth ambitions in the Western region of the U.S., GE Real Estate (NYSE:GE) announced the completion of its acquisition of Arden Realty, Inc. (NYSE:ARI) , the largest publicly-traded office landlord in Southern California. The purchase price of approximately $4.8 billion includes the assumption and refinancing of $1.6 billion of Arden’s outstanding debt. In connection with this transaction, Trizec Properties, Inc. (NYSE:TRZ) acquired 13 Arden properties for approximately $1.6 billion. The remainder of the Arden portfolio will stay intact and continue to operate as Arden Realty.

The GE and Arden leadership will leverage Arden’s premier presence and strong relationships in the region to quickly implement a strategic asset plan to expand further into its core markets. GE will also use the Arden platform to grow significantly in other California markets, Washington and Arizona.

One member of GE and four members of the Arden leadership teams have been appointed to oversee Arden:

– Joaquin de Monet, Managing Director at GE Real Estate, has been named President and CEO of Arden Realty.

– Robert Peddicord, formerly Executive Vice President, Leasing and Operations at Arden Realty, assumes the role of Chief Operating Officer.

– Andres Gavinet, formerly First Vice President and Chief Accounting Officer, has been named Chief Financial Officer.

– Howard Stern and David Swartz remain Senior Vice President and Chief Investment Officer and Senior Vice President and General Counsel, respectively.

“We invest where there are excellent opportunities for growth, both in asset value and portfolio size. This transaction significantly expands our footprint in a market that we think is one of the strongest markets in the U.S.,” commented Joe Parsons, President, North American Equity at GE Real Estate. “We will continue to assess opportunities to acquire quality assets in Southern California, and look forward to Joaquin and Robert’s leadership to help us expand Arden’s presence in the Western region.”

“GE and Arden are a dynamic force in one of the country’s most robust markets,” added Peddicord. “GE’s solid financial backing and global resources combined with Arden’s local market expertise and outstanding performance record will greatly enhance Arden’s ability to grow in the Western region of the U.S.”

The portion purchased by Trizec Properties includes 13 properties comprising approximately 4 million square feet.

Tim Callahan, Trizec’s president and chief executive officer commented, “Through this transaction, we have acquired a large, high-quality portfolio that is well located in markets that we believe have strong economies, positive employment trends and growing rental rates.” Mr. Callahan added, “We’re pleased to have partnered with GE in the execution of this transaction.”

Merrill Lynch acted as the financial advisor to GE Real Estate, and King & Spalding LLP provided legal advice. Lehman Brothers Inc., Wachovia Securities, and Secured Capital LLC served as financial advisors to Arden in this transaction. Wachovia Securities and Houlihan Lokey Howard and Zukin also rendered fairness opinions to Arden’s Board of Directors. Latham & Watkins LLP and Venable LLP provided legal counsel to the Company. Hogan & Hartson LLP provided legal counsel to Trizec.

About GE Real Estate: GE Real Estate is a world leader in real estate capital. Formed in 1972, the business has more than $35 billion in core assets with 34 offices located throughout North America, Europe, Asia, and Australia/New Zealand. GE Real Estate, backed by its parent company’s AAA rating, offers a broad range of financing, equity and servicing solutions including: intermediate and long-term mortgage financing, restructuring and acquisition capital, niche equity investment/joint ventures, capital markets securitization and placements, and assert management. As one of the fastest growing units within GE Commercial Finance, Real Estate has experienced annual growth of more than 10% for the last ten consecutive years.

GE Commercial Finance offers businesses an extensive array of financial services and products worldwide. With approximately $217 billion in assets and an expertise in the mid-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. GE Commercial Finance is a wholly owned subsidiary of the General Electric Company (NYSE:GE) , a diversified services, technology and manufacturing company with operations worldwide.

About Arden Realty Inc.: Arden Realty, Inc. is one of the largest office landlords in Southern California. After the close of the transaction with GE Real Estate, Arden will have 14.8 million square feet comprised of 103 properties and 175 buildings from Ventura to San Diego counties. Arden is also a nationally recognized leader in energy conservation and efficiency. For three consecutive years the Environmental Protection Agency cited Arden as the “Commercial Real Estate Owner of the Year” for its innovative energy initiatives and for owning the most energy efficient buildings in a single portfolio in the nation.

Roselind Hejl asked:




Generally, apartment-style buildings are called condos, two-story row houses are known as town homes, and free-standing homes on small lots are referred to as garden homes. Unfortunately, this description creates some confusion about real estate ownership. Apartment, town home, and garden home describe the design or construction of certain homes. The word “condominium” does not refer to a the layout or style of a building. Condominium is a form of ownership of real estate. The form of ownership of real estate cannot be recognized by observing the building design.

Condominium Regime The legal definition of condominium is: the absolute ownership of a unit based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners. Each unit owner of a condominium has individual title to the space inside his unit. The space is sometimes described as beginning with “the paint on the walls.” In addition, each unit owner has an undivided interest in the physical components of the condominium buildings and land.

A popular type of condominium development is the multi-story apartment. In this case, there is no land under each unit. In these developments, the condo association usually handles maintenance of the building exterior and common grounds, while the unit owners maintain the interiors of their units. A condominium association is selected to make decisions about expenditures for repairs, and to handle administrative work related to the common areas. Fees are collected from the unit owners to pay for common maintenance. The association normally holds an insurance policy covering the jointly-owned areas, while individual owners carry insurance for the interior components of their units. Condo projects may resemble duplexes, town homes, garden homes, or residences on regular lots. In general, the creation of a condo regime allows the developer to get more density approved than would be allowed if he had done single-ownership lots. This is often the reason why the condo regime is chosen instead of a development with single ownership lots. A condominium may be built as two units of a duplex. In this case, the two owners may jointly make decisions concerning maintenance of any common areas. By setting up the units of a duplex as two condos, the owner is able to sell them to two different owners.

Each condominium has rules that are specific to the development, so no assumptions should be made about their requirements. It is important to read the condominium documents carefully before purchasing a condo. The documents specify the maintenance that is covered by the common budget. In one project, the association may handle exterior components, decks, pools, sidewalks and driveways. In another, the individual owners may be responsible for more maintenance of their units, including foundations, roofs, and exterior walls.

If you have questions about the division of labor between the common budget and the individual owners of a condominium, you can present your question to the condo board itself. The board can give you an interpretation of the rules and clarify how the issue has been handled in the past. Another possibility is to ask a real estate attorney to review the documents for you. Realtors, other unit owners, or maintenance workers are not appropriate or reliable sources for the interpretation of condo documents.

The Texas real estate contract for condominiums contains a provision requiring that the buyer be given a copy of the condo documents, with a period of time to review them. During the document-review period, the buyer may terminate the contract without penalty. In addition, a resale certificate is must be provided by the association president or manager. This document provides information on the current budgets, insurance coverage, special assessments, lawsuits and other matters that affect the association.

Fee Simple Ownership

In contrast to the condominium regime, you may own real estate by fee simple. “Fee”, which comes from the word, “fiefdom”, refers to legal rights in land, and “simple” means unconstrained. Fee simple is the most common type of ownership. It is the absolute legal title to real property, including both buildings and land. In fee simple, there are several different possibilities with regard to your obligations of ownership:

(a) Your property may not be in a subdivision at all. In this case, your deed will not include any subdivision restrictions that control your use of the property. Be aware that there could be some deed restrictions put in place by previous owners. In addition to deed restrictions, you may be governed by city or county ordinances or zoning laws that limit your use of the property.

(b) Your property may be in a subdivision with very few restrictions, no common areas, no architectural control committee, and no mandatory dues. Usually these are older subdivisions.

(c) Your property may be in a subdivision of homes on large lots, or in a town home or garden-home community in which there is a legally created homeowners association. In this case, every homeowner is required to be a member of the association. The association may charge mandatory dues and enforce subdivision rules. A certain level of maintenance may be required of each property owner. For example, you may need association approval of exterior paint colors, fences, or additions to your home.

Like the condominium form of ownership, fee simple ownership does not prescribe how maintenance is handled or how developments are governed. For example, the owners of a town house, with fee simple ownership, may be required to fully maintain their units. Or, the owners’ association may cover painting, roofing and yard work for the owners. In subdivisions where there are single family homes on large lots, it is more common for the homeowners association to manage the common grounds, pools and parks, while the individual lot owners fully maintain their own properties. Understand your ownership rights and obligations

Before buying into a condominium regime or purchasing a fee simple property, you should have a clear understanding of the type of ownership you will have in your property. If you are buying a condominium, it would be wise to read the condo documents carefully and understand how maintenance is divided between the individual owners and the condominium association.

If your ownership is fee simple, with individual ownership of the land, you should review the deed restrictions (if there are any) and understand the restrictions and obligations that apply to your property. In the fee simple form of ownership, there may be mandatory dues to pay for common area maintenance, or, in some cases, the dues may be used for partial maintenance of the individual properties.

If you have a question about your type of ownership or about your obligations as a homeowner, it would be wise to review the title documents with a real estate attorney before proceeding with your purchase. Ask plenty of questions! A clear understanding of your type of ownership, and of your obligations as a homeowner will result in a more satisfying real estate purchase.

Bryan Hendersen asked:


Economic weakness threatens the chances of many Americans to become homeowners and so threatens the nation’s ability to thrive as a nation. Keen to help, the federal government offers the First Time Home Buyer Stimulus Package. It targets first time buyers and those who have not owned a home in three or more years.

Purchases under this program are of pre-owned homes and homes in the new construction phase, stimulating demand in the housing market. Whether indirectly, by boosting buys of pre-owned homes, or directly, by boosting housing starts, this gives builders and their crews more work. As for homeowners, they receive help in three ways, with tax credits, assistance with down payments, and with decreased interest rates.

The initial purpose of the stimulus program was to stave off the economic slowdown of which existence became apparent during the financial crisis of 2008. The developing situation demanded reinforcement of these efforts, which came in the form of a more comprehensive plan from the federal government. In particular, the Obama administration believed that the reluctance to spend money came from the fear of losing home ownership. This, along with the collapse of real estate market, convinced to administration to act to stimulate home ownership.

For any purchase made in the year 2009, a homebuyer may qualify for a 10 percent tax credit. This may for up to $8,000, with the basis being the gross purchase price. The home owner may claim this credit either the year of purchase or within two years of purchase. This tax credit provides money to the homeowner, which he may decide to save.

Next is a reduction in the down payment. Usually, these are at least ten percent of the home’s price. The government plan is to pay off part of the down payment. Lower down payments make it easier to purchase the home. Furthermore, reducing the down payment reduces the burdens keeping you from placing money in an investment account or from improving the new home. Also, government help may reduce the interest rate on your home loan by reducing the basis points on the interest rate. Qualification for the tax credit requires that a single person’s income not exceed $75, 000 and that with a partner income not exceed $150,000.

A third way to encourage home purchases is a tax rebate. In this case, the federal government places the rebate on the amount of interest assessed on the loan. This is not related to the tax credit. Under this stimulus program, homeowners may apply for both the credit and the rebate. Landlords, who buy property for income purposes, may qualify for the rebate. Because the landlord’s maintenance expenses go to the upkeep of the rented property, they are eligible for income tax deductions. Hence landlords are eligible for the rebate.

Economic growth is impossible without continuous improvement of the national infrastructure. However, the collapse in the demand for housing hits precisely here. The Obama adminstration intends to rectify this with tax credits, down payment assistance, and interest rate reductions. Under the First Time Home Buyer program, it intends to place buyers in new homes and stimulate economic activity.

John asked:




With the increasingly popular of rent to own real estate many property owners find it is a way for them to sell the property they have now instead of later on. It can easily become a burden for them to make the ongoing payments while they are waiting for someone to buy it. This pertains to both commercial and residential property out there. The real estate market has certainly suffered in the tough economic times out there.

The owner of the property retains the ownership of it until it is paid for in full with this type of offer. They aren’t responsible for common repairs because they aren’t the landlord. This is great news for those that don’t want to continue worrying about having to cover costs related to that particular type of property. The one downside is that depending on the cost of the property involved it can take many years before it is paid for in full.

For someone that is tired of paying rent, rent to own a property is a great way to invest their money instead of paying for something that they are only temporarily using. They have the ability and the right to fix up the property any way that they would like to. When you are simply renting from someone you can’t do so without their permission. This means that you aren’t able to enjoy the properly to the fullest in a manner that you will be completely happy with.

The process of buying property through a lender can be time consuming and difficult. You have to come up with a large amount of money down in many instances. Most consumers that want to buy properly can’t do so right now. With the rent to own option though you can get the properly you want now instead of having to save up for a down payment and for closing costs for a couple of years first.

With the rent to own option you don’t have to jump through hoops either when it comes to issues such as passing inspections. This can be one of the most frustrating parts of buying a home when a bank is lending you the money. When you rent to own a property, you get to decide if the property is worthy of you investing in. Of course you do have the option to pay for an inspection to be done before you commit to it as well.

You may feel that you can’t buy property if you don’t have credit or your credit is very poor. However, you can do so through a rent to own option instead of going the traditional route. Some owner’s of such property will require a credit check but most of them don’t. As long as you have a steady work history and you are willing to sign a contract they will work with you.

As long as it is done correctly, rent to own real estate can be a win/win situation for everyone involved. Take the time to talk at length with the seller of such property. Make sure you are both on the same page and have the same goals in mind. They are going to want to make sure you are going to make the monthly payments as decided upon. You want to make sure you are getting property that is worth the asking price. You also want to make sure that the written contract of the rent to own property is in great detail. This way both parties will be covered for the duration of the agreement until the property has been completely paid for.

Amelie Mag asked:




Bangkok is one of the most visited cities in the whole world and more and more people who visit it are willing to buy a property in Bangkok.

Foreigners who are interested in Bangkok real estate investing must be familiar with property laws in Thailand, if they do not want to have an unpleasant surprise. Anyone can buy a unit in a condominium, but foreigners cannot own free land and houses. According to a Thai rule, foreigners can buy only a certain percentage from the total area of the condominium, in a proportion that does not exceed 49% of all the units in the condominium. A local real estate agent can tell you if you fulfill the necessary conditions in order to buy a unit of a condominium or rent a property in Bangkok.

You can make a good idea about the local market if you resort to an experienced local agent, who knows his or her business. Thus, you will not have to worry about any failure of your Bangkok real estate investing, since such an investment will bring you the expected long-term profit. The commercial real estates have exploded these last years and Bangkok real estate investing can turn out to be tricky, if you do not have a well-thought plan. Anyone can rent a property in Bangkok, but the success of the investment does not offer a guarantee as long as a team of experts has not advised you.

Bangkok real estate investing is not only about buying or renting the desired property in Bangkok. Apart from the money that you will spend on renting or buying, there will also be other operating expenses. The maintenance fee of the property you buy or rent faces charging by the month. The owners will decide the amount of money to pay. Furthermore, if you own a property in Bangkok, you will have to pay a property tax that varies according to the estimated value of the property.

Finding a licensed Bangkok property Real Estate Agent is not an easy task, because, just like in other cities, there are always many unauthorized agents who are looking forward to trick you into buying their inadequately constructed properties. Before you buy a property in Bangkok, it is very important to verify that the agency has a license and that they come with good recommendations. Remember that the success of your Bangkok real estate investing lies in his /her hands and you should not shy away from asking for recommendations.

In addition, it is also recommended to consult with a local attorney about possible pitfalls as well as other miscellaneous laws that are applicable to foreigners. For those foreigners wanting to buy a property in Bangkok, it is also pertinent to check out the new areas that are developing quickly. For instance, the train transportations (BTS) is quickly being developed and cause the real estate to increase quite rapidly in areas that were not popular before. Bangkok is a place that is worth investing in, but do not expect any short-term profitable results. In the end, the money you have spent on the property will pay off – you only need to start with a long-term goal.