Housing starts jump in January

By ANDREW KEATTS, The Daily Transcript

Thursday, February 24, 2011

If January was any indication, housing construction might be on a modest upswing in 2011.

San Diego County jurisdictions granted permits for the construction of 466 housing units in the first month of the year, more than were granted in any of the last three Januarys, and more than in all but one month of 2010, according to numbers released by the Construction Industry Research Board (CIRB).

Of the 466 permits pulled by developers last month, 309 were for the construction of multifamily units, with the remainder reserved for single-family homes.

County developers received 87 and 285 housing permits in the first months of 2009 and 2010, respectively. The yearly totals of 2,990 in 2009 and 3,342 in 2010 are the two lowest on record. In 2008, when 5,154 total permits were issued, 317 of those came in January.

“It’s still anemic,” said Mark Riedy, executive director of the Burnham-Moores Center for Real Estate at the University of San Diego, of the 466 permits issued in January. “I just can’t get excited about that. It might be more than the last three years, but the last three years have been anything but good.”

Compared to the monthly totals in 2010, last month would have trailed only June’s 559, and would have finished just ahead of the 440 pulled in May. There were 292 permits pulled in the last month of the year, after three successive months below the 200 mark.

“If we were to analyze this number, 2011 would far exceed what we saw in ’08, ’09 or 2010,” said Borre Winckel, chief executive officer of the Building Industry Association of San Diego (SD-BIA). “This is an affirmative statement about the intent of new construction.”

Though the numbers are expressed as a countywide total, Winckel says a select few jurisdictions, namely Chula Vista, are responsible for the bulk of new construction, and have been for a number of months. The entire coastal area is effectively bleak, he said.

The imbalance between multifamily and singly-family units comes as housing experts have repeatedly said that the future of development in the county is in urban infill and redevelopment. However, this is the first month since August in which builders pulled more multifamily than single-family units.

Because condominium financing is difficult to secure and county vacancy rates are low, new apartment construction is suddenly viable again, said Russ Valone, chief executive officer of MarketPointe Realty Advisors.

“We’re finally seeing new apartments come into the marketplace,” he said.

Citing SD-BIA research that an average of 140 different companies are involved in the construction of a single new house, Valone called housing construction a powerful job generator, and said increased building activity would strengthen the economic recovery.

Winckel said the last two months represent a positive trend line.

“I haven’t spoken to a single builder who thinks 2011 isn’t going to be a big improvement from the last three years, but it still (won’t) make a dent in the county’s latent housing demand,” he said.

Source: SanDiegoDailyTranscript

County to hold property auction

By ELIZABETH MALLOY, The Daily Transcript

Friday, February 25, 2011

The San Diego County Treasurer-Tax Collector’s office is scheduled to auction off hundreds of tax defaulted properties next month

Treasurer-Tax Collector Dan McAllister announced Friday that 469 tax defaulted properties are scheduled to be sold at the 2011 Property Tax Sale Auction scheduled for Friday, March 18, at the San Diego Convention Center. The auction is being held in an effort to collect $2,432,354.26 in unpaid property taxes including penalties and fees.

“We currently have 76 improved properties, 278 timeshares and 115 unimproved parcels ready for auction,” McAllister said. “The numbers may change if owners step up and pay the defaulted taxes with penalties right before the deadline. Owners of delinquent properties have until 5 pm on Thursday, March 17, the day before the tax sale to bring their taxes and delinquent charges up to date, or their property will be sold.”

Interested bidders may purchase registration packets for $60 at any of the Treasurer-Tax Collector’s offices, located in downtown San Diego, Kearny Mesa, Chula Vista, El Cajon or San Marcos. A $1,000 refundable deposit is also required at the time of registration.

“This should give serious bidders ample time to do their research and due diligence,” McAllister said. “I expect to see more participants this year due to the economy.”

Minimum bids are set based on the total amount of back taxes, penalties and sales costs. The successful bidder may take possession of a property after making a payment in full and after the Tax Deed to Purchaser has been recorded.

Under California State law, the Treasurer-Tax Collector may sell any or all portions of properties that have been in default for five years. In December 2009, the Board of Supervisors approved 379 properties for last year’s auction. In November 2010, the Board approved nearly 600 properties for auction at this year’s sale.

Source: SanDiegoDailyTranscript

ARG Capital Partners secures joint venture equity totaling $16M

NEWS | SAN DIEGO


By Daily Transcript staff report
Monday, January 31, 2011


The San Diego office of ARG Capital Partners announced that it has arranged joint venture equity totaling $16 million for its client Feldman Equities Inc.

ARG assisted Feldman Equities in securing an all equity closing on the acquisition of a distressed mortgage note secured by a Class A, 134,065-square-foot multi-story office building in Tampa, Fla.

Given the time sensitive nature of the transaction and the closing deadline imposed by the note seller, an all equity closing was required.

Bryan Clark, director of Capital Markets with ARG Capital Partners, arranged joint venture equity on behalf of the sponsor, Feldman Equities, securing a letter of intent for $16 million in joint venture equity, with terms acceptable to the note seller, sponsor, and joint venture partner, for an all cash closing within five days of notification that the previous partner had backed out-with the closing of the acquisition taking place 15 days later.

ARG Capital Partners arranged the joint venture equity through a market-leading real estate private equity firm whose principals each have more than 20 years of experience, including leadership positions at premier investment funds and operating companies, and collectively have been responsible for over $10 billion of real estate investments.


Source: SanDiegoDailyTranscript

Downtown San Diego law school now has student housing

BY LILY LEUNG

MONDAY, FEBRUARY 21, 2011 AT 10:53 A.M.

The Thomas Jefferson School of Law's new downtown campus now has official student housing.

Security Properties, a Seattle-based real estate investment company, has leased 172-unit Entrada Apartments to school officials in a 15-year agreement.

The building, at 13th Street and Island Avenue in East Village, is currently housing students, and a waitlist is in place for future vacancies.

The law school, formerly in Old Town, finished its relocation to downtown San Diego in January. School officials hope to increase enrollment from 950 to 1,000-plus in the coming year, explaining their need to provide student housing.

“The situation is ideal and substantially enhances both our ability to recruit the highest quality student body to Thomas Jefferson School of Law, and to provide a greater economic benefit to the East Village community which has been so welcoming to us," said Associate Dean for Student Affairs M. Elizabeth Kransberger, in a statement.

Law school officials plan to charge market-rate rent for the apartments. In some cases, they will offer need and merit-based housing grants to students. About 90 percent of Entrada's units are studios with rent ranging $900-$1,200.

Security Properties, the company that leased out the building, acquired Entrada in July 2010 for $22 million. The apartment complex is the company's sole San Diego property though it has owned properties in the county before.

The apartments were built in 2004 and includes a mix of studio, loft, one-bedroom, two-bedroom and three-bedroom apartments. The building also has a renovated rooftop common area, interior courtyard, fitness center and underground parking.

Security Properties’ focus is primarily West Coast properties, including Seattle, San Francisco and Portland.

Source: SignOnSanDiego