Land Lines – Week 43
The prison relocation continues to be a hot topic, the state has narrowed their search to 4 spots. Davis and Tooele counties have been taken off of the list, the most viable spot seems to be the land around the Salt Lake Airport. We will continue to keep our followers updated as news is released.
On the heels of the groundbreaking of the East Village transit-oriented development in Sandy, attended by U.S. Department of Transportation Secretary Anthony Foxx, UTA is moving forward with its second transit oriented development (TOD) in West Jordan City. Today the Board of Trustees approved the conveyance of land surrounding the Jordan Valley TRAX Station to the joint venture entity established with the chosen developer.
Watch for 3Q2014’s newsletter in the next few weeks, the topic for this edition is boundary lines. If you would like to receive a print version click here. Many of you have received the 2Q Newsletter in the mail, if you haven’t here is the link: http://joom.ag/H55b.
If you or someone you know has been on the fence about selling their land, fall is a great time to start the process, marketing and selling a raw or papered land deal correctly takes time and experience. If you would like to schedule a meeting to discuss selling your property now or in the future please call. I look forward to speaking with you.
If you would like to receive the weekly land stats and headliners click here to subscribe. Past editions are available on the website under the Land Lines topic. Feel free to share with friends and associates.
Brooke Glaittli – Land Sales – 801-554-2332 – www.brookeg.com
Week 43 Land Stats
10/19/2014-10/26/2014: Salt Lake, Utah Counties and Davis Counties*
7 land parcels sold, 12 sold in week 42.
33 properties were put on the market, as compared to 30 in week 42.
YTD along the Wasatch Front**
5,407single family building permits have been issued, there were 5,302 issued as of week 42.
56 duplex/ twin home permits have been issued, the same as week 42.
113 apartment/ condo permits have been issued, 112 had been issued by week 42.
187 commercial permits have been issued (this number does not reflect all types of permits).
*Source WFRMLS **Source Construction Monitor
Recent UtahLandowners.com Headliners:
- Cities surrounding Camp Williams see funding to avoid encroachment
- Agriculture Secretary Announces Funding to Strengthen Rural Businesses and Cooperatives and Boost Economic Development in Rural Communities
- UTA Moves Forward with Second Transit-Oriented Development Project in Two Months
- Utah State Prison Could Move to Site Near Salt Lake International Airport; Tooele Site Out of the Running
- Land Lines- Week 42
Pending home sales increased 0.3% in September, suggesting continued steady improvement in existing sales. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), increased to 105.0 in September from 104.7 in August. The September reading was up 1.0% from the same month a year ago, and pending sales were up year-over-year for the first time in 11 months.
The September PHSI increased modestly in the South and Northeast, but decreased slightly in the West and Midwest. Year-over-year, the West, Northeast and South increased 3.6%, 2.9% and 1.7% respectively, while the Midwest declined 4.0%.
Last week NAR reported a 2.4% increase in September existing home sales, and firming job and economic growth suggests that the existing home market will demonstrate steady growth throughout the fall. The housing recovery has moved towards higher ground reflected by a six-year high in September new homes sales.
Monday’s Market Numbers
The Trepp survey for the week ending October 24, 2014, showed average spreads basically unchanged, with the implied rate for ten-year, modestly leveraged commercial real estate mortgages equaling 3.64 percent—100 basis points lower than year-end 2013. With just over eight weeks to year-end, the focus is solely on getting deals done, period, with plans for 2016 put on the back burner.
|Asking Spreads over U.S. Ten-Year Treasury Bonds in Basis Points (Ten-year commercial and multifamily mortgage loans for properties with 50 to 59 percent loan-to-value ratios)|
|12/31/10||12/31/11||12/31/12||12/31/13||This week (10/17/14)||Last week (10/10/14)||Month earlier|
The Cushman & Wakefield Equity, Debt, and Structured Finance Group’s monthly Capital Markets Update of commercial real estate mortgage spreads dated September 11, 2014, showed spreads increasing 10 to 15 basis points across the board compared with the prior survey (dated July 4) as lenders seem to be trying to make up some ground after the “great low spreads due to low Treasury yields giveaway” of the past few months. Even with the uptick in rates, it remains an attractive time to finance or refinance commercial real estate.
|30-Year Fixed-Rate Commercial Real Estate Mortgages (as of September 11, 2014)|
|Property||Maximumloan-to-value||Class A||Class B/C|
|Multifamily (agency)||75–80%||T +160||T +170|
|Multifamily (nonagency)||70–75%||T +160||T +165|
|Anchored retail||70–75%||T +190||T +200|
|Strip center||65–70%||T +190||T +200|
|Distribution/warehouse||65–70%||T +175||T +200|
|R&D/flex/industrial||65–70%||T +195||T +205|
|Office||65–75%||T +185||T +190|
|Full-service hotel||55–65%||T +250||T +270|
|Debt-service-coverage ratio assumed to be greater than 1.35 to 1.|
Year-to-Date Public Equity Capital Markets
Dow Jones Industrial Average: +1.38 percent
Standard & Poor’s 500 Stock Index: +6.29 percent
NASD Composite Index (NASDAQ): +7.35 percent
Russell 2000: –3.83 percent
Morgan Stanley U.S. REIT Index: +15.74 percent
|Year-to-Date Global CMBS Issuance(in $ billions as of 10/24/14)|
|Source: Commercial Mortgage Alert.|
Year-to-Date U.S. Treasury Yields
|U.S. Treasury Yields|