News

Basel, Switzerland–To prevent large future losses, international supervisors and regulators are creating a system that will make it more costly for investment banks to keep big volumes of complex financial instruments–such as mortgage-linked securities–in their trading books, the Financial Times reports.The Financial Stability Forum, a group of global regulators and supervisors headquartered in Basel, Switzerland, are handling the new plan, which could make banks alter their asset repackaging business models, including the way they repackage mortgages into complex financial securities.The new regulations will be designed to help prevent the large, surprise losses that banks such as UBS announced in recent…

Washington, D.C.– U.S. construction spending fell in April as public sector building softened and the housing market continued to drop, the Commerce Department said Monday.A separate gauge of the manufacturing sector indicated that it is still struggling, according to The Wall Street Journal.Total construction spending declined by 0.4 percent to a seasonally adjusted annual rate of $1.121 trillion in April. The March spending numbers were revised from 1.1 percent to 0.6 percent.April’s 0.4 percent outlay decline was slightly smaller than expected, the Journal said. Residential construction spending fell 2.1 percent to $442.6 billion. In March, spending dropped by 3 percent,…

Abu Dhabi–During a four-day trip to the Persian Gulf, U.S. Treasury Secretary Henry Paulson said that the current financial market trouble will last for months, Bloomberg reported Monday.”We’re talking about months, and there will continue to be bumps in the road,” Paulson said, in response to a question about what the U.S. was doing to combat the dollar’s current weakness.Speaking in Abu Dhabi, Paulson also said that his faith in the dollar remained strong.”Markets respond to economic fundamentals,” he said. “Every economy is going to have its ups and downs, and the U.S. is going through a tough period. I…

Dallas–The Dallas Housing Authority’s future is unclear following a federal audit and allegations of poor accounting, the Dallas Morning News reports.In December, the U.S. Housing and Urban Development Office of Inspector General’s audit found that the housing authority couldn’t account for nearly $3.8 million in HUD funds that were earmarked for providing rental assistance. The agency was advised to either produce documentation for the money or repay it.Dallas Mayor Tom Leppert said that if the organization did not fix its accounting issues within six months, it would receive new leadership.Dallas Housing Authority officials say they have made a number of…

By Erika Schnitzer, Associate EditorHANGZHOU, Zhejiang Province, China–Oakwood Worldwide, a Los Angeles-based provider of serviced apartments, has announced its plans to open Oakwood Residence Hangzhou at the end of this year. This will make it the first internationally serviced apartment operator in this city.“Guests are increasingly opting for serviced apartments, as they not only offer a value-orientated choice, but also conveniences and comfort that a serviced ‘home’ can provide over a hotel,” says Frank Foster, vice president of marketing and sales of Oakwood Asia Pacific. The 175-unit development will offer studios, one-, two- and three-bedroom apartments, ranging from 485 to…

By Anuradha Kher, Online News EditorAlbuquerque, N.M.–Sperry Van Ness recently completed the sale of Theta Apartments, a 49-unit apartment community in Albuquerque, N.M., for $2,301,750. The property is located near Interstates 40 and 25 and the Albuquerque International Airport/Sunport at 3900 Tulane NE.Littleton, Colo.-based Sidmar LLC sold the property to Philadelphia-based NWJ Albuquerque Investment Fund II LLC.Built in 1972, the five-building community is situated on 1.39 acres of land, and was 97 percent occupied at the close of escrow. Theta Apartments features 48 two-bedroom/two-bathroom units and one one-bedroom/one-bathroom manager’s unit with monthly rents ranging from $545 to $625. The property…

By Anuradha Kher, Online News EditorCharlotte, N.C.–Crosland LLC is developing a 400-unit, eight-story luxury apartment building at Trade and Graham streets in uptown Charlotte. The $100 million project is located on a 2.7-acre site at 500 West Trade St., which currently houses a vacant building and surface parking.Crosland has secured a capital commitment from a longtime institutional partner, and plans to proceed with demolition in late summer of this year followed construction this fall. Residences are expected to be available for move-in by late 2009.“There is a lack of new rental product in this area,” David Ravin, president of Crosland’s…

By Anuradha Kher, Online News EditorIrvine, Calif.–Jaime Chandler, district manager of the Inland Empire division of Keystone Pacific Property Management Inc., an Irvine, Calif.-based property management firm, was recently honored with the firm’s Excellence in Service Award at its annual meeting. Chandler has since been promoted to director of new project development and is now based out of the company’s headquarters.The Excellence in Service Award is presented to an employee who promotes Keystone Pacific’s philosophy, delivers exceptional customer service and exhibits superb leadership qualities. “The award is a recognition of our efforts in the Temecula office,” Chandler tells MHN. “My…