REIT reaps record SF office sale, CoreLogic's mortgage delinquency report, consultancy's take on IRS plans for OZ and other programs, CDC guidance leaves out hotels, and Zillow's homebuying gambit.
In Today's News
Kilroy Was Here: A Record San Francisco Deal
Real estate investment trust (REIT) Kilroy Realty (NYSE: KRC) has agreed to sell The Exchange on 16th, a 750,000-square-foot office property in San Francisco's Mission Bay neighborhood, for $1.08 billion, or about $1,440 per square foot. It's currently the corporate headquarters for Dropbox (NASDAQ: DBX).
The Millionacres takeaway: Different reports say it's the second-most or the most ever paid for office property in San Francisco, based on total transaction price or price per square foot. While the buyer isn't named, it's private equity giant KKR, according to the San Francisco Chronicle. This much money from that kind of buyer says that reports of the death of office space, at least there, are greatly exaggerated.
CoreLogic Year-End Report Shows Wild Swings in Mortgage Delinquencies
In its year-end report issued today, CoreLogic (NYSE: CLGX) says U.S. mortgage delinquency rates hit record lows and highs in 2020 and that they're now back to pre-pandemic rates.
The Millionacres takeaway: The report both provides a snapshot of what the coronavirus pandemic did to the economy in general and shows the effect forbearance agreements and moratoriums had on keeping people in their homes while a return to normalcy still remains in the offing.
A Year of Pandemic: IRS Guidance, What's Needed, What to Do
During the past year, the IRS issued guidance that extended deadlines and provided other relief that altogether enabled many affordable housing, community development, historic preservation, and renewable energy properties and participants to avoid a lot of economic destruction. But the agency needs to do more.
The Millionacres takeaway: This piece from the Novogradac consultancy lays out what happened and why it mattered and points to specific issues that stakeholders in the opportunity zone, low-income housing tax credit, and other programs need to be watching for now.
Today on Millionacres
The CDC Is Still Advising Against Travel: The Impact on Hotels
While this week's announcement that it's now safe for fully vaccinated people to gather was greeted as a milestone in the COVID-19 recovery, the agency still recommends against unnecessary travel. Will that put a damper on big travel plans this summer?
The Millionacres takeaway: Our Maurie Backman points out that the hotel industry has been particularly hard hit by the pandemic and that a summer setback would just worsen the peril for many operators.
Zillow Turns Zestimates into Cash Offers
Despite the fact revenues for Zillow Homes, an iBuying program, were only half of its anticipated forecast for the fourth quarter of 2020, Zillow (NASDAQ: Z) (NASDAQ: ZG) is moving forward with a new program that turns a Zestimate into a cash offer for interested sellers.
The Millionacres takeaway: Read up to find out how our Liz Brumer says this online real estate behemoth could end up competing with agents and investors alike.