Gilt Event Leaves Concert Goers Hungry

The official launch event for GiltCity Dallas was a concert featuring the band Foster the People at at the House of Blues in the city's West End. It provided a good chance to get out, and get a look at the great concert space that is House of Blues.

Through the web site GiltCity.com, concert goers were treated to the concert, "lite-bites" and complimentary beer and wine between 7 p.m. and 9 p.m. The event was very well attended, and seemed to be near capacity when the band began performing almost a half hour late, around 9:30.

Unfortunately in terms of food, we had the previous "unofficial" GiltCity event at the Clothier Billy Reid in Highland Park Village to compare it to. There we were treated at mini-cherry pies, pork biscuits, macaroni and cheese and other goodies. At the House of Blues event "lite bites" were almost non-existent. No sooner would a hostess bring a tray onto the floor than would a swarm of hungry concert-goers getting more tipsy by the minute rape the platter of its contents.

Potato chips were available at the bar for $3.00 and we were told pizzas and other snack foods would be available in the lobby. They eventually were available when the clock was approaching nine, but then the line was so long there was little hope of pizza hitting the mouth before the concert began.

It was also annoying the complimentary became $7 several minutes before the advertised 9:00 end time.

That's not to say the concert and beverages weren't worth the $10 entry fee. Next time I'll be sure to eat first.

Museum Tower Rises

Heading to the West End last night for a GiltCity Dallas event at the House of Blues, we had a good view of the 42 story Museum Tower rising on the skyline. Museum Tower will bring 116 luxury residences to the Arts District and for now at least gives the perception of a buzzing construction scene in the city. The nearby Perot Museum of Nature and Science, also under construction, adds to that as well.  More on GiltCity Dallas in a later post.

Commercial/Multifamily Mortgage Lending Up 107 Percent from Last Year

Second quarter 2011 commercial and multifamily mortgage loan originations were 107 percent higher than during the same period last year and 52 percent higher than the revised figures for the first quarter of 2011, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

“Commercial/multifamily mortgage borrowing and lending continues to rise from the depths of 2009 and 2010,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Greater stability in property fundamentals and prices, and an improving sales market, are providing greater clarity for borrowers and lenders alike. Property values and interest rates – coupled with job growth, consumer spending, household growth and other macro-economic trends that drive demand for commercial real estate – will be keys to how property owners seek and qualify for mortgage financing going forward.”

Second Quarter 2011 Originations 107 Percent Higher than Second Quarter 2010

The 107 percent overall increase in commercial/multifamily lending activity during the second quarter of 2011 was driven by increases in originations for all property types. When compared to the second quarter of 2010, the increase included a 141 percent increase in loans for health care properties, a 125 percent increase in loans for hotel properties, a 116 percent increase in loans for retail properties, a 114 percent increase in loans for multifamily properties, a 54 percent increase in office property loans, and a 34 percent increase in industrial property loans.

Among investor types, loans for conduits for CMBS saw an increase of 638 percent compared to last year’s second quarter. There was also a 150 percent increase in loans for commercial bank portfolios, an 87 percent increase in loans for life insurance companies, and a 58 percent increase in loans for Government Sponsored Enterprises (or GSEs – Fannie Mae and Freddie Mac).

Second Quarter 2011 Originations 52 Percent Higher than First Quarter 2011

Second quarter 2011 commercial/multifamily mortgage originations were 52 percent higher than revised originations in the first quarter of 2011. Compared to the first quarter, second quarter originations for health care properties saw a 161 percent increase. There was an 87 percent increase for hotel properties, a 73 percent increase for retail properties, a 47 percent increase for multifamily properties, a 31 percent increase for office properties, and a six percent increase for industrial properties.

Among investor types, loans for conduits for CMBS saw an increase in loan volume of 210 percent compared to the first quarter, loans for commercial bank portfolios saw an increase in loan volume of 41 percent compared to the first quarter, originations for life insurance companies increased 37 percent from the first quarter to the second quarter of 2011, and loans for GSEs increased by 20 percent during the same time span.

Record Low Mortgage Rates Recorded

Freddie Mac today released the results of its Primary Mortgage Market Survey showing mortgage rates dropping sharply amid falling bond yields and signs of a weaker than expected economy. The 30-year fixed averaged 4.39 percent, its lowest level for 2011. The 15-year fixed and 5-year ARM set new historical record lows averaging 3.54 percent and 3.18 percent, respectively.

The 30-year fixed-rate mortgage (FRM) averaged 4.39 percent with an average 0.8 point for the week ending August 4, 2011, down from last week when it averaged 4.55 percent. Last year at this time, the 30-year FRM averaged 4.49 percent.

The 15-year FRM this week averaged 3.54 percent with an average 0.7 point, down from last week when it also averaged 3.66 percent. A year ago at this time, the 15-year FRM averaged 3.95 percent.

Housing Prices Up for Quarter

Clear Capital released its monthly Home Data Index™ (HDI) Market Report today, with news of U.S. home price gains of 4.1 percent comparing the most recent rolling quarter to the previous one. The report shows recent gains off the record low in home prices experienced this past winter have not been enough to change the broader housing picture, which remains down 7.9 percent since June 2010, and down 1.8 percent from June 2009.

“Building off last month’s minimal quarterly gains, prices continue to correct from winter’s extended declines,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “Although this is encouraging, many markets are still near, or at record lows as REO saturation remains a significant proportion of all sales activity.”

The company says the gains of 4.1 percent reported in this report are improving upon last month's 0.9 percent rolling quarter uptick. 

Year-over-year home prices however are mired in negative territory off last year's tax credit highs, with three out of the four regions (West, Midwest, and South) posting year-over-year price declines greater than -7.3 percent.

Driven by stronger spring and early summer sales, all quarterly prices are up significantly among the highest performing markets compared to the slower winter buying season. The markets of Milwaukee, Rochester and Pittsburgh posted the strongest quarterly gains on seasonal influences.

Houes in Pittsburgh

While REO saturation as a whole continued to be significant in highest performing markets, the average saturation rate fell to 22.7 percent, a three percent decline from last month. Rochester, Pittsburgh, Boston and New York led the way, posting single digit rates of REO saturation.

Elevated distressed home sale activity continues to take a toll on the lowest performing markets across the country. 

Inland American Real Estate Trust, Inc. Acquires Historic Hotel in Dallas

Inland American Lodging Group, Inc. (“IALG”), a wholly owned subsidiary of Inland American Real Estate Trust, Inc. (“Inland American”), announced today that it has acquired The Fairmont Dallas for $69 million, or approximately $127,000/key. The Fairmont Dallas is a 545 guestroom hotel consisting of two towers and 70,000 square feet of meeting space. Opened in 1969 as the “first” luxury hotel in Texas, the property exudes an air of elegance and luxury, combined with a dash of Texas flair.

The Fairmont Dallas offers unparalleled accommodations that have received approximately $50 million of capital improvements since 1997, including $14.9 million ($27,300 per key) over the last four years. Inland American intends to invest in additional capital improvements that will allow the hotel to maintain and improve upon its luxury status.

Following the acquisition of The Fairmont Dallas, Inland American Real Estate Trust has whole or partial ownership interest in 16,628 hotel rooms across the U.S., including 16 full service hotels.

Texas Home Sales Trending at '09 Levels

According to the Texas Quarterly Housing Report compiled by the Real Estate Center at Texas A&M University the Lone Star State's second-quarter sales fell 12 percent from a year earlier with total sales volume of 58,795 homes inline with 2009. The median sales price in Texas hit $150,400 in the second quarter, up 1 percent from a year ago. The average price rose 4.6 percent to $201,288.

No Quick In and Out

The lines at In-n-Out Burger are still significant, at least they were today when we headed to the Central Expressway location in Dallas today. I hadn't had one of the tasty morsels since visiting a location in Sacramento some years ago. I also haven't quite mastered what the fuss is all about. Might as well eat and smile, however.

Dallas Commercial Construction Jumps

Commercial construction in the Big D jumped 85 percent this past June when compared to June 2010, according to McGraw-Hill Construction. Contracts tracked by the publisher's Research and Analytics unit totaled nearly $594 million in June 2011.