Google goes big in the Big Apple, big doings in Golden State residential real estate, a REIT-fueled cash infusion for green proptech, multifamily fuels housing starts, fronting the cash for all-cash offers.
Today on Millionacres
Google Spending More Than $2 Billion on NYC Office Real Estate
Alphabet CFO Ruth Porat recently announced that Google has committed to spend $2.1 billion to purchase the St. John's Terminal property in Manhattan, which will anchor the company's new Hudson Square campus.
The Millionacres takeaway: Our Matt Frankel points out that this big stake in the big city’s office space is a pretty optimistic clue about what’s ahead, despite the gloom and doom now hanging over the sector because of back-to-the-office woes.
Big Things Are Happening With Single-Family Zoning in California
Home prices are at an all-time high, and supply is rock-bottom low. That’s why the California Housing Opportunity and More Efficiency (HOME) Act (SB 9) and SB 10 (another important piece of legislation, just without a fancy name) are absolutely huge, despite their tiny packages. Both have been signed into law as of Sept. 16, 2021, to go into effect Jan. 1, 2022.
The Millionacres takeaway: Our Kristi Waterworth writes that while homeowners and renters stand to be big winners here, investors may come out smelling like roses too, especially if they identify and act on projects that allow them to put extra units in quickly.
Fifth Wall and 4 REITs: A Big Bet on Climate-Focused Proptech
A venture capital firm that lays claim to being the largest of its kind with a focus on proptech is celebrating Climate Week NYC this week by announcing that it has raised about a quarter of its $500 million goal for a new climate-focused fund that it says is also the largest of its kind.
The Millionacres takeaway: Four publicly traded residential REITs (real estate investment trusts) are along for a $140 million ride so far in this venture. The start-ups being backed include one that’s taking an interesting approach to funding home improvements on a house-by-house level.
Also in Today’s News
August Housing Starts Lifted by Multifamily Development
Strong multifamily production helped push overall housing starts up in August as single-family starts edged lower due to ongoing supply chain issues and labor challenges, says a report today from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau via the National Association of Home Builders (NAHB).
The Millionacres takeaway: The NAHB points out that single-family home construction is nearly 33% higher than last year at this time but still not keeping up. A hot market, indeed -- and multifamily may be even hotter.
Start-up Firms Help Homebuyers Win Bidding Wars With All-Cash Offers
Some companies front buyers the cash to buy homes outright; others buy houses directly on a buyer’s behalf and then sell them to the buyer, The Wall Street Journal reports today [subscription required].
The Millionacres takeaway: Challenging times call for creative solutions. This sounds like one.