House flipping has lenders lining up, low-income renters left out, the biocentury for real estate, Disneyland to reopen, and a tale of one office REIT.
In Today’s News
There are more than 60 banks and other firms financing house flippers today, according to AlphaFlow, an investment firm that buys real estate loans from lenders. That’s an increase of almost 50% in a little more than two months.
The Millionacres takeaway: This Bloomberg report [subscription required] notes that while it’s not big-name banks, it’s still helping fuel competition for flippable properties that’s already fierce. No bubble here, the article says, but it is helping force up prices, putting them out of reach for more potential homebuyers.
Rent price declines have typically been sharpest in the most-expensive areas, meaning less savings for lower-income renters who were hit the hardest by the pandemic, Zillow (NASDAQ: ZG) (NASDAQ: Z) says in its latest monthly market report. For example, Manhattan rents were down 11.6% in wealthier neighborhoods and up 1.8% in the least-expensive areas.
The Millionacres takeaway: That reality combined with another month of record growth in home values just adds to the affordability stress for many American households. Opportunity just keeps growing in the lower end of the price scale — for rent or sale — for those real estate investors who can provide the properties.
“The dawn of a new phase of the biocentury is upon us,” John Flavin, founder and CEO of Portal Innovations, told Commercial Property Executive.
The Millionacres takeaway: This look at long- and short-term trends in investing in real estate for life sciences buyers and tenants can help inform your strategies when it comes to real estate investment trusts (REITs) and individual properties that might pop up in your radar in this commercial real estate sector.
Today on Millionacres
On March 13, 2020, Disneyland in Anaheim, California, closed due to COVID-19. At that time, Disney (NYSE: DIS) only expected to shut it down for a short time. Instead, Disneyland and Disney California Adventure went dark for over a year. The lights go back on April 30, 2021.
The Millionacres takeaway: Our Deidre Woollard provides a look at how the reopening will help employment and just about every other aspect of the local economy in Anaheim, including hospitality businesses around the big theme park. We’ll see the same repeated around the country, so now’s the time for real estate investors to think about the opportunities that might create in their markets.
Cousins Properties (NYSE: CUZ) has undergone several changes over the past three years. It acquired TIER REIT, enhanced its portfolio via several smaller deals, and made significant progress on its development pipeline. These moves have improved its balance sheet and expansion prospects, setting it up for future growth.
The Millionacres takeaway: Our Matt DiLallo not only lays out why this particular office REIT is worth investment consideration, but does it in a way that can help you read the public reports from any of its competitors, too, to help discern their prospects.
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