Archive for January 2008
Economic News Makes for a Mixed Forecast
News today from the Commerce Department that consumer spending barely increased last month–and, if you consider inflation, didn’t at all–along with a higher amount of unemployment claims doesn’t indicate our economy is doing all that well. And yet, some signs exist that the worst of the current growth problems may be over: Wall Street Feels…
Read MoreSecond Fed Rate Cut: Not Too Little, But Maybe Too Late to Ward Off a Recession
While the second Fed rate cut in a month–announced Wednesday afternoon–wasn’t a huge surprise to the financial community, the thought process behind it was: The Fed’s scared, and that doesn’t offer much comfort to those worried about an impending recession. The new cut brought the benchmark Federal funds rate down by half a point to…
Read MoreF.B.I. Launches Fraud-Related Mortgage Company Inquiry
Washington, D.C.–The Federal Bureau of Investigation has opened criminal inquiries into 14 companies in connection with a mortgage industry investigation, the Wall Street Journal reports.Although the F.B.I. did not identify the companies under investigation, it said the investigation, which began last spring, includes potential accounting fraud, insider trading and other violations that originated with loans…
Read MoreU.S. Residential Builders Face Threat of Bankruptcy in Weak Market
Irvine, Calif.–The housing slump and slowing economy has put U.S. homebuilders at risk of going bankrupt, the Financial Times said Wednesday.Spreads on five-year credit default swaps imply Irvine, Calif.-based Standard Pacific is the most at risk, with a 79 percent chance of defaulting, according to Douglass. Shares of Standard Pacific–which holds the second largest amount…
Read MoreRecord Residential Building Drop Slowed Down Economy in the Fourth Quarter
Washington, D.C.–Reduced spending and the largest decline in residential construction in 26 years caused U.S. economic growth to slow significantly in the fourth quarter, according to data released Wednesday by the Commerce Department.After three consecutive months at a 4.9 percent pace, economic growth declined to an annual rate of 0.6 percent in October through December,…
Read MoreHomebuilder Tousa Files for Bankruptcy
Hollywood, Fla.–Homebuilder Tousa Inc. filed for bankruptcy protection Tuesday, CNN.Money.com reports.Hurt by the continued housing decline and an increase in sales cancellations, the Hollywood, Fla.-based builder said Citigroup Global Markets Inc. will supply $150 million in financing for the reorganization. Tousa plans to use the Citigroup financing to pay suppliers and employee salaries. The company…
Read MoreWhat’s Good for the Economy is Good for the Multifamily Industry, Says NHC
By Anuradha Kher, Online News EditorWashington D.C—In his final State of the Union address this week, George W Bush touched on everything from the Iraq war to the housing crises that has unfolded over the last one year. As fears over recession continue to escalate, many looked to the President this week to understand what…
Read MoreDEAL OF THE DAY: Guardian Buys Two Oregon Properties for $50M
By Anuadha Kher, Online News EditorBeaverton, Ore.–Guardian Management LLC along with equity partner GE Commercial Corp has acquired two multifamily properties in Beaverton, Ore. owned by Fairfield Residential for a total of $50 million.Wyndham Park (pictured), a 228-unit community at 14700 SW Scholls Ferry Rd. consists of one- and two-bedroom apartments and The Westbury, a…
Read More715-Unit Multifamily Development Receives $92.75M Loan
By Anuradha Kher, Online News EditorAvondale, Ariz.–HFF (Holliday Fenoglio Fowler LP) has arranged a construction loan and joint venture equity totaling $92.75 million for a 715-unit multifamily development in Avondale, Ariz.The project will be developed by Fore Property Co. and is expected to be completed by 2010. It will consist of two phases: Mirabella Village…
Read MorePossible Buyout for Post Properties
Atlanta–Real estate investment trust (REIT) Post Properties, based in Atlanta, has received a buyout offer from Cadim and Williams Realty Advisors LLC, a group that includes John Williams, Post’s founder and former CEO.Post Properties said the group offered $44 to $47 a share in cash. Post has 43.71 million shares outstanding, making the deal worth…
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