Situated in the Crystal Beach neighborhood, in the west end of Ottawa, the two properties comprise of a mix between garden homes and apartments totaling 141 suites. Surrounded by a mostly residential area, these new real estate assets provide striking  views of the Ottawa River, and are also close to major bus transit routes, highway 417 and the Bayshore Shopping Center. They are also less than a kilometer away from the old Nortel Campus that has been acquired by Public Works and Government Services Canada and will be converted into a Department of National Defence campus. The 370 acres campus houses 12 buildings and more than 2 million square feet of office space, the majority of National Defence staff in Ottawa being rumored to be relocated here.

The first property InterRent has acquired at the corner of Carling Avenue and Ullswater Drive includes 4 1-bedrooms; 56 2-bedrooms; and 27 garden homes. It will be completed by March 15, 2013. The other one is located at the corner of Carling Avenue and Crystal Beach Drive has 2 1-bedrooms; 28 2-bedrooms; and 24 garden homes, being scheduled for completion by the same date as the first one. The properties’ acquisition entails a going in capitalization rate of 5.75% and are immediately accretive to the REIT.

“With our years of experience in the Ottawa market, we believe that these acquisitions are solid properties in great geographical locations and represent strong additions to the REIT’s portfolio where we believe we can create more value for our Unitholders,” said Mike McGahan, InterRent CEO.

NuCO2 offers micro-bulk beverage carbonation solutions to quick service restaurants and convenience stores that provide fountain beverages to their customers. Through this investment, Praxair aims to expand its product offering for establishments selling draught and craft beers, giving them the possibility to include nitrogen generations and blending control systems.

“NuCO2 offers a compelling value proposition for beverage carbonation. We plan to continue to grow. the business in the United States, enhance distribution efficiency utilizing Praxair’s competencies in logistics, and extend NuCO2′s offerings to customers in other regions of the world,” said Executive vice president Eduardo Menezes (pictured). 

Praxair seems to have made a smart investment as NuCO2 will generate sales of $250 million in 2013 and an annual EBITDA of $115 million. Yet the deal will be neutral or have a minor positive effect on Praxair’s earnings per share for 2013. It will be completed in Q1 of this year after going through the process of being approved by regulatorsThe deal is expected to be neutral or slightly accretive to Praxair’s earnings per share in 2013, is expected to close in the first quarter of 2013 and is subject to regulatory approval and normal closing conditions.

At the end of 2012, Praxair, whose market value is of $32.7 billion, announced $152 million in cash and equivalents and operting a short and long term debt of $7.36 billion. The company generated $11.2 billion in revenue and net earnings of $1.69 billion, which translated into #5.61 per diluted share. 2013 full year revenues are forecast to reach $12 billion and per share earnings of $5.85-6.10, all up from the 2012 values. The market currently values Praxair at $32.7 billion. This values the firm at 2.7 times 2013′s annual revenues and 18-19 times annual earnings. Praxair pays a quarterly dividend of $0.60 per share for an annual dividend yield of 2.2%.

After having been continually queried to add his voice for new investment in Canada, Lamb developed this condominium investment workshop to help all investors, but particularly young Canadians who may not have been shown to take advantage of financial planning and investing.

For those unfamiliar with Lamb, Brad has been involved in real estate sales of more than $7.5 billion dollars and some 21,000 plus properties over the last two decades. Readers interested in attending this workshop should consult the links suggested, Tweet Brad @BradJLamb, or email ryan@torontocondos.com, or call 416.368.5262. 

The Condo King – Brad Lamb

The Shanghai Composite gained 1.6% to 2,328.71, and Hong Kong’s Hang Seng Index HK:HSI was up 0.5%. Other indexes were similarly positive, but Japan’s Nikkei Stock Average JP:100000018 was slightly (See chart from Google). Property stocks are among those trending upward, according to the reports.

NIKKEI 225 January 28th

Meanwhile, the pre-open for India’s NIFTY shows an upward trend. Businessweek this morning speaks of very positive investor confidence in India, and of gains even despite a sluggish world economic atmosphere. Emerging funds there will likely see renewed and keen interest this week. Reuters suggests energy stocks and telecoms as some stocks to focus on.

We will bring another report later in the day as markets open.

The new record is also eight times higher that the 2009 amount invested in student accommodation, the market analysis revealed. Last year’s biggest transaction in this real estate investment segment was the the recapitalization of University Partnerships Programme (UPP) Regional Portfolio. Barcap’s 60% stake in UPP’s assets, estimated at £840 million, has been recapitalized by Dutch pension fund manager PGGM.

‘Although the number of student applications and acceptances fell in 2012, capital committed to the sector has grown dramatically over the last 12 months,’ said Jo Winchester, head of Student Advisory, CBRE. ‘Our latest 2012 data shows that student housing is outperforming other asset classes by some margin, as it has delivered 9.6% total returns in 2012. This compares to 4.4% for all offices and 2.2% for all retail over the same period,’ she explained.

The specialist student funds and developers are expanding their domination of the student accommodation investment segment as they deploy larger amounts of money both within London and in other regions across the UK, improving the health of the overall UK market.

‘As an investment, student accommodation is relatively low risk and provides a secure income. Occupancy levels remain high, especially when compared to the vacancy rates in some mainstream sectors, and most university towns remain undersupplied,’ she added.

This new data clearly show an ongoing demand for student accommodation throughout the UK, a demand shown by both students and investors interested in a lucrative, counter cyclical asset class, Ray Withers, chief executive of property company Property Frontiers explained:

‘We have seen no let up in the volume of student property enquiries received in 2012 and are aware of the ever increasing numbers of projects being brought to market. Student property remains attractive as an investment where there is an imbalance between supply and demand but in some cities, supply issues are being met and so investors should, as ever, do their research and select the right place to invest.’

© Lagartija de colores – Fotolia.com

Leading real estate analysts Zillow say that around a third of American homeowners are mortgage free, representing almost 21 million people. This figure is around 3% less than the number of mortgage free owners in 2010, but REMI believes this is due to an increase in bank lending compared to 2010, and isn’t due to a larger debt burden or a weaker economy.

As such, REMI is advising mortgage free home owner readers to buy a second property, as this sector enjoys good credit, and have a large asset for collateral, both of which makes them prime candidates for new mortgages.

There are numerous cheap properties still available through short sales or through foreclosures, and with loans at historic lows, investors are able to take out inexpensive mortgages to buy new property and can quickly flip them. They can also be rented out providing sustainable income for the owners. There is little risk for homeowners whose personal properties are already bought and paid for.

Now Rick Otton, a property investment specialist, is to hold a real estate conference for the UK. It will be focused on strategies for home ownership that don’t involve the banks. Mr Otton is quoted as saying “I was a little shocked to see that the current crop of young families in the UK have actually acquired the label of ‘Generation Rent’ by the IPPR. Though most economists have acknowledged that rising rental rates in the UK have been part of a challenging economic environment, the social implications are not so readily acknowledged.”

Dalia Ben-Galim, associate director at IPPR commented on the report saying “Our analysis shows that the lack of houses is dragging young people down. A huge majority of today’s younger generation want to own their home, just as most of their parents have done. But the prospect is slipping even further over the horizon. Insecure renting stops them from putting down roots, but it is bad for society too.”

Although the report is focused on the 18-30 age group, Mr Otton believes it is relevant for anyone in the UK who wishes to buy their own home. He is keen to point out there are other ways of achieving home-ownership available to those who cannot obtain a mortgage through the banks. His Zero-Debt Property Cash Flow Conference2013 is being held from April 19-21. Anyone booking before the end of the year can take advantage of a payment plan that divides the cost of conference attendance into four monthly payments.

Rick Otton has made money by purchasing inexpensive homes and using them to build wealth. He now teaches these strategies to others, having originally unveiled these methods to the UK back in 2008. More details about the program can be found on his website.

Tiehel commented on the certification saying “By using the Investor Center, real estate investors can learn how to best capitalize on the struggling housing market by researching and acquiring quality real estate assets as a long-term wealth creation strategy. The Investor Center guides new real estate investors down the right path and streamlines the process for more seasoned investors.”

Ferguson went on to explain further saying “The market is great for investors, but investing in real estate is quite different than traditional home buying and selling. It’s a more complex process requiring additional levels of expertise. The Investor Center provides the resources to make investing in real estate simple, profitable and even fun.”

Alan Ferguson is a multimillion dollar producer, and is top producer in Long & Fosters Philadelphia Region. He has experience in all phases of real estate, and is licensed in Pennsylvania, New Jersey and Delaware.

The CEO of OwnAmerica and host of WABC’s Rand on Real Estate is quoted as saying “We’ve seen too many people giving bad advice about ‘getting rich quick’ in real estate. In truth, real estate is a long-term wealth building assets. It works when you do it right. We want to show our clients how to do it right.”

Alan Ferguson can be contacted at 484-832-4553, or you can visit his website.

The report found that the median cap rate for single tenant net leased Dollar General and Family Dollar properties compressed by 16 basis points between the third quarter of 2011 and the first quarter of this year. This is due to a lack of investment-grade assets available at a low absolute dollar amount, historically low interest rates, and a surplus of 1031 exchange investors with low equity requirements.

Dollar General and Family Dollar assets have an average asking price of $888,754, giving an average price per square foot of $103. There is a strong consumer demand for dollar stores, and there are rapid expansion plans for Dollar General and Family Dollar for next year. This year Family Dollar increased new store development by more than 50%, and there were 1100 new Family Dollar and Dollar General stores constructed.

These stores attract customers due to the low cost of the goods sold as well as the convenience of the smaller store format. Dollar stores have also increased the competition for grocery stores, and there is an increasing percentage of consumers who purchase grocery items at dollar stores each year.

Transaction volumes are heavily concentrated in recently constructed dollar store properties, but those stores located in above average markets with strong demographics are in high demand. It is expected this demand will remain high as private investors continue to look for properties with long-term leases, attractive price points and investment-grade tenants. You can read the full report here.

The Boulder Group is a boutique investment real estate firm specializing in single tenant net lease properties. It is headquartered in suburban Chicago and was founded in 1997.

Image by Seth W. via flickr.com

For various reasons, the home is not being actively offered for sale. Instead it sits vacant. Many neighborhoods have one or more homes that are part of the shadow inventory problem. There has been ongoing speculation that banks are holding many foreclosed homes off of the market because of low home prices.

Banks that have been left holding a large number of foreclosed properties since 2008 are hoping that the housing market will eventually turn so that the value of those foreclosed homes can start going back up. They realize that dumping millions of distressed properties on the market would reduce home values even further. This would lead to more losses for banks, something that they desperately want to avoid.

But it appears that perhaps we have finally reached some equilibrium between home sales and foreclosure numbers. This in turn could be the reason why shadow inventory seems to have stabilized at 2.3 million units.

Institutional investor activity has grown to unprecedented levels in the single family market. This has resulted in a surprising price increase of some 4% from 2011 levels and is increasing demand for foreclosed properties. At the same time, foreclosures remain elevated to near record levels, as new FHA 30 and 60 day delinquencies have increased to some 17% of their insured mortgages. The investors are spending tens of millions of dollars buying up individual houses at courthouse auctions, especially in places like Georgia, Florida, Texas, California and Michigan, where foreclosure activity is still at very high levels.

This has resulted in a housing market that remains soft due to new foreclosures and rising delinquencies, even as investor buyer activity ramps up to record levels. The buying is putting upward pressure on prices with more demand for better quality homes in better locations. Fortunately the result is an offset that has helped stabilize home prices to some extent. The downside is that it also masks what is essentially a housing market that is fundamentally very weak at it’s core, and is not really expanding.

Notably all of this is leading to a tectonic shift in the housing industry. Ownership has dropped back from a high of around 68% at the market peak to about 65.5% today, which is a historical average that dates back to the 1960′s. In spite of the federal government’s 34 year effort to foster home ownership through various programs and policies that helped lead to the housing crash, little to no long term results have been achieved. When you consider this point, it stands to reason that we’ve got a significant percentage of vacant homes but no actual end user buyers available to buy them. The 65% that can afford to own a home will, and the other 35% are going to end up renting no matter what government policy is in place.

Without investor buyers, and particularly the institutional buyers, home prices likely would still be falling. Shadow inventory would be growing at a much faster rate, especially in the states with the most foreclosure activity. The large amount of inventory being picked up by well funded Wall-Street-connected investment companies is helping reduce the total amount of vacant inventory on the market, but it also speaks to the fact that fundamentally the market remains over supplied in the areas hardest hit by the foreclosure crisis.

The banks who are selling the foreclosures to the institutional investment companies are also lending them the money to buy those properties. In a sense the banks have helped create and fund companies to buy up their inventory. This is creating a sense of “recovery” but it’s not a fundamental recovery.

I believe that this underlying weakness could persist for years before we reach a true balance in housing. To do that we must increase the number of first time home buyers and therefore increase real end-user demand for housing. And it has to be genuine, natural demand created by a robust economy that has millions of new, good paying jobs. Until that happens we won’t have a sustainable housing recovery based on legitimate demand, but it will look like things are improving to some extent.
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Donna S. Robinson is a 17 year real estate industry veteran, author and housing market analyst located in Atlanta, GA. Follow her on twitter at donnaconsults and read her blog at www.RealtyBizConsulting.com