Rising & H.I.G. Realty Partners Purchase DTLA’s 733K-SF Garland Center

| December 20, 2016

article image
Los Angeles- based Rising Realty Partners, together with H.I.G. Realty Partners and Silverpeak Real Estate Partners, has purchased The Garland Center in downtown Los Angeles in a multi-million dollar deal (exact price is undisclosed).The 733,000-square-foot commercial office building, located on 7th Street, was constructed in 1983 and features a detached parking structure with 1,498 spaces. The gargantuan building is nine stories tall and has three stories of subterranean, purpose-build data center space, of which Rising plans to take advantage of with its 5×5 Telecom subsidiary.Nelson Rising, Chairman and CEO of Rising Realty said, “This is a very large, prime property with great long-term tenants and a great investment opportunity for our company.” Rising’s President Chris Rising said that tenants “appreciate the large floor plates” and “unrivaled connectivity” and that The Garland Center “serves a unique niche in the Downtown Los Angeles submarket.”

Spotlight

Golden Age Group Pty Ltd

Golden Age Group was founded by Jeff Xu in 2006 and is now a nationally recognised name in the property development industry. In just a decade the company has ignited extraordinary growth, developing its capital arm and expanding its investments portfolio of hotels, restaurants, agriculture and international trade. Currently, comprised of commercial and residential, Golden Age Group’s diverse development portfolio has an estimated value of $4.2 billion with another $1.5 billion worth of projects in the pipeline.

OTHER ARTICLES

Using Spatial Data to Make Commercial Real Estate Decisions

Article | February 13, 2020

DFW has record low unemployment rates of 2.9 percent as of December 2019. The workforce gap between retiring baby boomers and up-and-coming workers is causing a labor shortage and skill gap. Large tech companies are offering aggressive compensation packages to beat out the competition. And never mind your corporate culture, workplace strategy, and proximity to hip coffee shops. These are real challenges for business leaders that require data to make the right decision for their organization. Solutions are out there, but you need a fresh perspective using data. There are hundreds of factors to consider, such as education levels, local workforce skills, or market sustainability, but let’s focus on age for now — specifically, the demographic age group of 20 to 34.

Read More

Top 5 Trends Affecting Real Estate in 2020

Article | February 19, 2020

Any buyer that’s been looking for a home can tell you how difficult it is right now to find a home in their price range. Several factors contribute to this trend. Baby boomers are staying in their homes longer, and we have tons of millenials looking for their first or second home. So we have lots of demand, but not enough supply. This is great for sellers, but buyers want to be prepared for it to take several months to find the right property for the right price. Another reason we are seeing such an influx of buyers is because interest rates are staying very low, making it incredibly affordable to obtain a mortgage. As of writing this, a 30 year fixed rate mortgage has an interest rate of 3.62%, and 15 year fixed rate mortgage has an interest rate 2.87%!

Read More

Pandemic could mean opportunity for real estate investors

Article | April 8, 2020

The COVID-19 pandemic has left no industry untouched. Many Americans and property owners didn’t have the cash to pay their rent this month. Which means some landlords are going to struggle with the mortgage, which means an opportunity for some property investors. Daniel Lebensohn, co-founder of the investment firm BH3, said buying that distressed debt built the foundation of his company. He said nobody feels good about taking advantage of misfortune, but firms will be looking at this pandemic in the same light.

Read More

Lockdowns To Push Back Spring Selling Season

Article | August 18, 2021

The spring selling season might be pushed back for a couple of weeks or even months as lockdowns restrict activity in some states and territories, according to CoreLogic. Prior to the COVID-19 pandemic, sales and listing turnouts typically rise from September to November. Over the ten years to December 2019, the growth in new listings during spring averaged 15.7% while sales hit 6.8%. CoreLogic head of research Eliza Owen said both sales and listings tend to be most seasonal in the capital cities, particularly in Sydney and the ACT. With the lockdowns, however, the in-demand locations might not witness the same level of activity this upcoming spring, which is only two weeks away. "Observing housing market performance through lockdowns reveals that both sales and listings volumes will fall through lockdowns," Ms Owen said. What can be learned from last year's Melbourne lockdown? The extended lockdown in Melbourne last year could provide a glimpse as to what could happen in this year's lockdowns. Melbourne was in lockdown from mid-July to late October. During the period, listings dropped consistently, hitting the lowest at 1,411 in the four weeks to September, which was 80.7% lower than the previous five-year average. There are several factors that contributed to the slowdown during the period. Aside from the obvious restrictions that have limited inspections and auctions to virtual sessions, the low levels of consumer confidence also dampened the overall market sentiment, with vendors being unsure whether they would get an optimal price for their properties. Mortgage repayment deferrals and other government support also contributed, as these prevented distressed sales. However, when restrictions in Melbourne got lifted by late October, there was a sudden shift in the market mood, with listings quickly recovering. "New listings volumes through December 2020 trended an average 40.4% higher than the previous five-year average, suggesting the spring selling season of 2020 was 'pushed back' into the final months of the year," Ms Owen said. Lockdowns to only postpone market activity Ms Owen said the trend in sales and listings through a lockdown indicate the relative stability of the economy and the housing market amid the COVID-19 pandemic. "This has meant that housing purchasing decisions were more likely to have just been postponed through lockdowns, rather than abandoned all together.” In fact, the muted sales activity through lockdowns actually led to an uplift in sales across Melbourne in December of 2020 and July 2021, a time when seasonally, sales volumes would usually be far more subdued. "There are tailwinds in place for housing market demand to suggest this may happen again; household savings rates remain elevated, new average mortgage rates continue to reach new record lows, and many government fiscal stimulus and broader institutional responses have been resurrected amid renewed lockdowns," Ms Owen said. Affordability might become a concern The consistent surge in prices across capital cities in recent months have already resulted in the inevitable constraints in affordability. CoreLogic's Hedonic Home Value Index in July showed a 1.6% gain in dwelling values, a retreat from the previous growth of 1.9%. Ms Owen said some support schemes that supported consumer sentiment, such as JobKeeper and HomeBuilder have already ended which could dampen the expected rebound in demand. The rising threat of the Delta variant of COVID-19 might also be a major headwind, as it could result in further lockdowns which will ultimately impact the incomes of Australian households. "With affordability constraints becoming a larger obstacle in the market, as well as the potential for tighter credit conditions further down the track, if buyer activity does not match the lift in listings we could see a gradual rebalancing between sellers and buyers," Ms Owen said.

Read More

Spotlight

Golden Age Group Pty Ltd

Golden Age Group was founded by Jeff Xu in 2006 and is now a nationally recognised name in the property development industry. In just a decade the company has ignited extraordinary growth, developing its capital arm and expanding its investments portfolio of hotels, restaurants, agriculture and international trade. Currently, comprised of commercial and residential, Golden Age Group’s diverse development portfolio has an estimated value of $4.2 billion with another $1.5 billion worth of projects in the pipeline.

Events