What Does California’s New Rent Control Mean?

California lawmakers passed a statewide rent control bill to address a worsening housing crisis in the state where millions of people are paying more than half their monthly income in rent.  The bill is meant to address rising costs in cities like San Francisco, where rent has risen steadily for years and peaked at 6% annual growth in 2015, according to CoStar Analytics.  The bill affects an estimated 8 million renters as it prohibits landlords from hiking rents more ... Read more

TOP 10 REASONS TO EXPECT A RECESSION IN 2020

Recession indicators which overwhelmingly signal a major economic slowdown brought on by slower growth abroad and Trump’s escalating trade war with China include: The U.S. bond market and the inverted yield curve -- the yield on the benchmark 10-year Treasury note has fallen below the 2-year yield multiple times in the last month, and this inversion has preceded the last 7 recessions. Gross domestic product in the U.S. is slowing. The economy expanded by 2% in the second ... Read more

Amazon Kills and Then Revives Malls as Fulfillment Centers

Online retailer Amazon has spent the past two decades luring shoppers out of stores and onto the internet, leading a retail transformation resulting in a wake of dead malls. Now the Seattle-based company is buying more of those empty shopping centers, converting them into warehouses for processing deliveries to consumer doorsteps.  The company plans to open two more Ohio warehouses, including one at the site of a closed mall in Akron, the third shopping center in northeastern Ohio the company has ... Read more

Housing Bubble Burst Ahead?

Data from the National Association of Realtors suggests a housing bubble may be on the verge or bursting in some markets, like coastal California. Overall, U.S. home prices in the second quarter were up 4.3% vs. a year earlier to $279,600, with 16 markets posting declines. That’s a slight appreciation dip from averaging 5.5% annual gains in 2016-2018, a period when just eight U.S. markets were losers.  Silicon Valley prices in California took the nation’s second-biggest loss in the quarter: a ... Read more

Regal Properties Represents 5 TIC Exchange Buyers of Strong Credit Retail Center in SoCal for 8.37% Cap

Regal Properties represented 5 TICs in multiple 1031 exchanges in the recent purchase of a 54,750 square foot shopping center, predominantly leased by national credit tenants, located within the desired Southern California retail market of Hemet.  The below replacement cost price of $8,600,000 equates to an 8.37% cap rate with a 13% leveraged cash on cash return for a high-performing retail center shadow anchored by Stater Bros Supermarket (NAP), a regionally dominant grocer, and junior anchored by CVS and Dollar Tree.  ... Read more

2019 Housing Outlook

Expect housing in 2019 to be flat. The recent decline in mortgage rates from 5% to 4% for the 30-year-fixed provides some support for housing.  However, the tax-law change, which took away many of the tax benefits of homeownership, weighs on demand. The impact of the new tax law is still filtering through the housing market, particularly in more expensive markets like California, and Florida, where those tax benefits are more important. Affordability remains an issue. The runup in house prices over ... Read more

Regal Properties Voted “San Diego’s Favorite” Real Estate Company

Again, in the 2018 “San Diego’s Best” Union Tribune Readers Poll, readers nominated and voted for their favorites in various business categories, selecting Regal Properties as their Favorite in 2 categories this time – Real Estate Brokerage and Commercial Real Estate Company. We are honored and appreciative to receive this recognition, from our clients, colleagues and business partners. Regal Properties proudly “Invests in People and Property” by donating 10% of all fees and commissions ... Read more

Regal Properties Closes $14,900,000 Retail Acquisition at 8.6% Cap

Regal Properties' Senior VP, Maha Odeh, represented the buyer, Laguna Village Plaza LLC, in the $14,900,000 purchase of a 102,000+ retail shopping center at 5945 W. Ray Road in Chandler, Arizona, for an 8.6% cap rate, with a loan of $9,600,000.  The center is anchored by Walgreens, Natural Grocers, and CCV Church.  Escrow closed on on August 15, 2018. Read more

Unaffordability Means Fewer Homebuyers

Mortgage applications hit a near 4-year low in July, dropping for the third month in a row.  The causes include: (1) homes are overly expensive now due to tight inventory and rising interest rates, (2) wage growth has remained stagnant while the costs of living (including rent) have continued to climb, such that saving money to buy a home has become increasingly difficult.  Something has to give… Read more

Starbucks Feels the Heat of Competition

Amid slowing growth in an increasingly crowded market, Starbucks announced it will close 150 under-performing, company-operated U.S stores in 2019. Historically, the Seattle-based chain has closed about 50 stores per year. The upcoming store closings will occur primarily in urban markets saturated with Starbucks locations. However, Starbucks’ sales are also slowing, as the company expects just 1% growth in same-store sales for the third quarter of 2018—the worst performance in about nine years.  One ... Read more
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