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{
"id": "902952601",
"title": "Ep. 11 RENTV's Weekly CRE News & Views with Steve Bloom; 10-01-2020",
"url": "https://soundcloud.com/rentvnews/ep-11-rentvs-weekly-cre-news-views-with-steve-bloom-10-01-2020",
"duration": 2062,
"segments": [
{
"start": 8.94,
"end": 12.84,
"text": "latest eviction moratorium news, COVID effects on the apartment"
},
{
"start": 12.84,
"end": 16.56,
"text": "hotel and office sectors. What is the real estate story that's"
},
{
"start": 16.56,
"end": 20.34,
"text": "getting me fired up and a review of major deals and developments"
},
{
"start": 20.34,
"end": 24.0,
"text": "from around the US. This is what you will hear in this episode"
},
{
"start": 24.0,
"end": 27.42,
"text": "of Rent TV's commercial real estate news and views with"
},
{
"start": 27.42,
"end": 32.64,
"text": "Steve Bloom on October 1 2020. I'm Steve Bloom, your host and"
},
{
"start": 32.64,
"end": 36.78,
"text": "founder and CEO of Renttv.com, our news and media company for"
},
{
"start": 36.78,
"end": 40.26,
"text": "the commercial real estate industry. Now in our 21st year"
},
{
"start": 40.26,
"end": 43.26,
"text": "providing daily news stories, market reports, video"
},
{
"start": 43.26,
"end": 46.38,
"text": "programming and more for the commercial real estate industry"
},
{
"start": 46.38,
"end": 51.22,
"text": "on our website, renttv.com and our email newsletter, the real"
},
{
"start": 51.22,
"end": 54.98,
"text": "estate insider, which goes to over 60,000 commercial real estate"
},
{
"start": 54.98,
"end": 59.28,
"text": "professionals three times each week. And it is my goal to make"
},
{
"start": 59.28,
"end": 62.18,
"text": "these new podcast shows streaming to you from the"
},
{
"start": 62.18,
"end": 65.94,
"text": "heart of Silicon Beach and Marina del Rey, a profitable use"
},
{
"start": 65.94,
"end": 68.74,
"text": "of your time. And since I haven't produced a show in a"
},
{
"start": 68.74,
"end": 72.54,
"text": "few weeks, I have some catching up on news and some venting to do"
},
{
"start": 72.54,
"end": 76.02,
"text": "on some recent events. But before I start, I want to give a"
},
{
"start": 76.02,
"end": 79.7,
"text": "huge thanks to our very first podcast sponsors, Capitol"
},
{
"start": 79.7,
"end": 83.22,
"text": "Rivers commercial and Redwood mortgage, who I will tell you"
},
{
"start": 83.22,
"end": 87.5,
"text": "about more later in the show. So let's get into this show."
},
{
"start": 87.7,
"end": 91.06,
"text": "And I will start with perhaps the most impactful COVID related"
},
{
"start": 91.06,
"end": 94.82,
"text": "real estate issue so far. And that is the protections against"
},
{
"start": 94.82,
"end": 97.94,
"text": "eviction moratoriums. Now, on the commercial side,"
},
{
"start": 97.94,
"end": 100.9,
"text": "landlords of businesses and stores, you and your tenant are"
},
{
"start": 100.9,
"end": 104.1,
"text": "basically on your own and figuring things out. But on the"
},
{
"start": 104.1,
"end": 107.9,
"text": "residential side, there are causes for concern, as there"
},
{
"start": 107.9,
"end": 111.06,
"text": "has been a variety of eviction moratoriums from states and"
},
{
"start": 111.06,
"end": 114.5,
"text": "municipalities around the country. But the major recent"
},
{
"start": 114.5,
"end": 117.94,
"text": "news was the national eviction moratorium order given in early"
},
{
"start": 117.94,
"end": 121.66,
"text": "September by the Centers for Disease Control and Prevention."
},
{
"start": 121.82,
"end": 125.9,
"text": "Yes, the CDC, whose order prevents evictions for about 40"
},
{
"start": 125.9,
"end": 129.5,
"text": "million apartment renters until the end of the year. It applies"
},
{
"start": 129.5,
"end": 132.26,
"text": "to any state in which there is not already a more protective"
},
{
"start": 132.26,
"end": 134.9,
"text": "ban in effect, which many states have, including"
},
{
"start": 134.9,
"end": 139.3,
"text": "California. Not surprisingly, many states and rental housing"
},
{
"start": 139.3,
"end": 142.54,
"text": "groups immediately came out against the order, and several"
},
{
"start": 142.54,
"end": 145.78,
"text": "have started legal actions to block it, questioning the"
},
{
"start": 145.78,
"end": 149.06,
"text": "ability of an entity such as the CDC to enact such an"
},
{
"start": 149.06,
"end": 152.26,
"text": "order, as well as highlighting the negative effects of the"
},
{
"start": 152.26,
"end": 156.14,
"text": "move, which can be devastating for smaller property owners,"
},
{
"start": 156.3,
"end": 158.98,
"text": "many of whom are the mom and pops who will not be able to"
},
{
"start": 158.98,
"end": 162.38,
"text": "pay their mortgage payments, utility bills and property taxes"
},
{
"start": 162.62,
"end": 167.22,
"text": "while sustaining non paying renters for months on end. And"
},
{
"start": 167.22,
"end": 170.42,
"text": "the CDC eviction moratorium could cause more economic harm"
},
{
"start": 170.42,
"end": 174.34,
"text": "than it prevents. As David Howard, executive director of"
},
{
"start": 174.34,
"end": 177.7,
"text": "the industry industry trade group, the National Rental Home"
},
{
"start": 177.7,
"end": 181.02,
"text": "Council noted that since renters have to pay back the"
},
{
"start": 181.02,
"end": 184.66,
"text": "rent they owe, that it puts renters in a position of having"
},
{
"start": 184.66,
"end": 188.46,
"text": "to pay back rent that they likely won't have while causing"
},
{
"start": 188.5,
"end": 192.1,
"text": "immediate hardship for property owners who have no means"
},
{
"start": 192.1,
"end": 195.46,
"text": "of carrying the cost of ownership. That uncollected rent"
},
{
"start": 195.46,
"end": 199.06,
"text": "debt is a problem. Many say is just making a tough situation"
},
{
"start": 199.06,
"end": 203.58,
"text": "build up into an unmanageable situation as the tenants debt"
},
{
"start": 203.58,
"end": 206.18,
"text": "builds up. So in many ways, it would be better to have"
},
{
"start": 206.18,
"end": 210.34,
"text": "renters unable to pay vacate sooner than amass a huge debt."
},
{
"start": 210.9,
"end": 213.14,
"text": "The better and less harmful solution would be to help"
},
{
"start": 213.14,
"end": 216.46,
"text": "renters to pay the rent, then to try and come up with policies"
},
{
"start": 216.46,
"end": 219.9,
"text": "like eviction moratoriums that do not address the cause of the"
},
{
"start": 219.9,
"end": 223.18,
"text": "problem while putting their housing suppliers at risk."
},
{
"start": 223.42,
"end": 226.46,
"text": "Rather than suing for the right to evict during a pandemic,"
},
{
"start": 226.66,
"end": 229.7,
"text": "landlords should be working with renters to get Congress or"
},
{
"start": 229.7,
"end": 233.18,
"text": "local governments to provide emergency rental assistance to"
},
{
"start": 233.18,
"end": 236.46,
"text": "help renters and to help landlords continue to operate"
},
{
"start": 236.46,
"end": 240.06,
"text": "their rental units. And since I did note that California had"
},
{
"start": 240.06,
"end": 244.7,
"text": "passed its own moratorium bill, I'll tell you about AB 3088"
},
{
"start": 245.02,
"end": 247.66,
"text": "passed by the state legislature, which is billed as a"
},
{
"start": 247.66,
"end": 251.26,
"text": "new Tenant Relief Act that was a compromise between tenants"
},
{
"start": 251.26,
"end": 254.82,
"text": "and landlords. Known as the Tenant Homeowner and Small"
},
{
"start": 254.82,
"end": 258.34,
"text": "Landlord Relief and Stabilization Act of 2020, the"
},
{
"start": 258.34,
"end": 261.86,
"text": "new law does provide some certainty to renters and some"
},
{
"start": 261.86,
"end": 265.82,
"text": "protections for small landlords. While it extends the eviction"
},
{
"start": 265.82,
"end": 270.58,
"text": "moratorium through January 2021, it does require that"
},
{
"start": 270.58,
"end": 274.3,
"text": "tenants show evidence of lost income due to COVID-19 in"
},
{
"start": 274.3,
"end": 278.14,
"text": "exchange for nonpayment. In addition, tenants must pay at"
},
{
"start": 278.14,
"end": 282.26,
"text": "least 25% of rent during the moratorium period. Given what"
},
{
"start": 282.26,
"end": 285.66,
"text": "the state could have done given its politics, this law is"
},
{
"start": 285.66,
"end": 288.62,
"text": "somewhat of a relief. So I guess it has been well"
},
{
"start": 288.62,
"end": 292.62,
"text": "received by landlords. However, and I know this is a"
},
{
"start": 292.62,
"end": 295.58,
"text": "bit late to be helpful, but I will tell you that for housing"
},
{
"start": 295.58,
"end": 298.3,
"text": "providers to collect the past due rent during the protected"
},
{
"start": 298.3,
"end": 303.58,
"text": "time period of March 1 2020 through January 31 2021, they"
},
{
"start": 303.58,
"end": 307.62,
"text": "must provide tenants with a notice of COVID-19 Tenant Relief"
},
{
"start": 307.66,
"end": 311.82,
"text": "Act of 2020. Now failure to provide the notice on or"
},
{
"start": 311.82,
"end": 315.94,
"text": "before September 30, today's taping will result in the"
},
{
"start": 315.94,
"end": 319.26,
"text": "inability to evict your tenant or recover rent payments that"
},
{
"start": 319.26,
"end": 323.22,
"text": "are owed during this time. This notice should accompany all"
},
{
"start": 323.22,
"end": 327.9,
"text": "15 day notices to pay rent or move out and providing that"
},
{
"start": 327.9,
"end": 331.98,
"text": "necessary third layer of eviction protection. Here in"
},
{
"start": 331.98,
"end": 335.94,
"text": "the city of LA, the city had extended its own moratorium on"
},
{
"start": 335.94,
"end": 339.02,
"text": "evictions, late fees and rent increases, at least through"
},
{
"start": 339.02,
"end": 343.26,
"text": "October 31 2020, and maybe longer and although that date"
},
{
"start": 343.26,
"end": 346.02,
"text": "is coming up soon, the move by the city is being"
},
{
"start": 346.02,
"end": 348.9,
"text": "challenged in court by the apartment Association of Greater"
},
{
"start": 348.9,
"end": 352.26,
"text": "LA, which claimed the city's unconstitutional and"
},
{
"start": 352.3,
"end": 356.02,
"text": "overreaching abuse of power has forced landlords to absorb"
},
{
"start": 356.02,
"end": 359.34,
"text": "the economic losses suffered by their tenants because of"
},
{
"start": 359.34,
"end": 363.46,
"text": "the pandemic. Now the board's President Earl Vaughn said"
},
{
"start": 363.46,
"end": 366.14,
"text": "the city's eviction ban goes way overboard and providing"
},
{
"start": 366.14,
"end": 368.78,
"text": "benefits to renters at the expense of all landlords,"
},
{
"start": 369.02,
"end": 371.86,
"text": "particularly the small mom and pop landlords who make up"
},
{
"start": 371.86,
"end": 375.58,
"text": "most of the housing providers in LA. Many of the renters"
},
{
"start": 375.58,
"end": 378.46,
"text": "that have benefit under these ordinances have not been"
},
{
"start": 378.46,
"end": 381.86,
"text": "impacted during the pandemic and yet still chose not to"
},
{
"start": 381.86,
"end": 385.3,
"text": "pay rent. Vaughn said in a statement, as a result, the"
},
{
"start": 385.3,
"end": 388.86,
"text": "city has exposed itself to significant liability risk in"
},
{
"start": 388.86,
"end": 392.26,
"text": "particular, damages stemming from the lack of an end date"
},
{
"start": 392.3,
"end": 395.82,
"text": "on the eviction ban and prohibition on rent increases,"
},
{
"start": 396.02,
"end": 398.34,
"text": "which now that were seven months following their"
},
{
"start": 398.34,
"end": 402.34,
"text": "establishment is still a date unknown. Now just in LA"
},
{
"start": 402.34,
"end": 407.06,
"text": "County, about 138,000 households did not pay any rent"
},
{
"start": 407.06,
"end": 410.62,
"text": "at least once between May and July. According to a joint"
},
{
"start": 410.62,
"end": 415.62,
"text": "report recently released by UCLA and USC and almost 40,000"
},
{
"start": 415.62,
"end": 419.34,
"text": "households are at least three full months behind on rent."
},
{
"start": 420.34,
"end": 423.38,
"text": "Moving to national multifamily stats that describe what's"
},
{
"start": 423.38,
"end": 426.74,
"text": "happening in the sector. The Freddie Mac second quarter"
},
{
"start": 426.74,
"end": 430.1,
"text": "multifamily apartment investment market index, the"
},
{
"start": 430.14,
"end": 436.14,
"text": "AIMI released last week fell by 0.3% in the second quarter"
},
{
"start": 436.42,
"end": 440.02,
"text": "after posting a quarterly increase of 1.8% in the first"
},
{
"start": 440.02,
"end": 445.7,
"text": "quarter of 2020 and its NOI also fell by 1.2% marking the"
},
{
"start": 445.7,
"end": 450.38,
"text": "first time in index history where it's AIMI and the NOI"
},
{
"start": 450.54,
"end": 453.14,
"text": "were negative together in the second quarter. Now"
},
{
"start": 453.14,
"end": 457.98,
"text": "Freddie's AIMI combines multifamily rental income growth,"
},
{
"start": 458.22,
"end": 461.54,
"text": "property price growth and mortgage rates to provide a"
},
{
"start": 461.54,
"end": 465.34,
"text": "single index that measures multifamily market investment"
},
{
"start": 465.34,
"end": 470.42,
"text": "conditions. The nation along with 14 metros experienced"
},
{
"start": 470.42,
"end": 474.14,
"text": "property price contraction while nine metros experienced"
},
{
"start": 474.14,
"end": 477.62,
"text": "growth and two metros had flat property prices over the"
},
{
"start": 477.62,
"end": 481.02,
"text": "quarter. According to Freddie Mac. Now another report by"
},
{
"start": 481.02,
"end": 484.62,
"text": "National multifamily housing councils shows that multifamily"
},
{
"start": 484.62,
"end": 487.9,
"text": "fundamentals continue to show signs of distress in the wake"
},
{
"start": 487.9,
"end": 491.02,
"text": "of the widespread job and economic losses created by the"
},
{
"start": 491.02,
"end": 496.5,
"text": "coronavirus. The latest report from the NMHC rent payment"
},
{
"start": 496.5,
"end": 499.66,
"text": "tracker, which measures the number of apartment households"
},
{
"start": 499.66,
"end": 502.9,
"text": "that make a full or partial rent payment shows a drop of"
},
{
"start": 502.9,
"end": 508.54,
"text": "2.4% or about 280,000 households year over year, as"
},
{
"start": 508.54,
"end": 512.98,
"text": "well as a monthly decline. The NMHC tracker registered that"
},
{
"start": 512.98,
"end": 516.94,
"text": "86.2% of apartment households made a full or partial rent"
},
{
"start": 516.94,
"end": 522.02,
"text": "payment by September 13, compared to 86.9% that paid by"
},
{
"start": 522.06,
"end": 526.9,
"text": "August 13 of this year. The survey measures are 11.4 million"
},
{
"start": 526.9,
"end": 530.34,
"text": "units of professionally managed apartment units across the"
},
{
"start": 530.34,
"end": 534.5,
"text": "country. A new report from Rent Tech Direct that evaluates"
},
{
"start": 534.5,
"end": 537.98,
"text": "the impact of COVID-19 on rate payments. This month also"
},
{
"start": 537.98,
"end": 540.98,
"text": "gives further cause for concern. Their data has showed"
},
{
"start": 540.98,
"end": 543.78,
"text": "a consistent downward trend in the number of rent payments"
},
{
"start": 543.78,
"end": 547.82,
"text": "received nationwide by property managers and landlords. And"
},
{
"start": 547.82,
"end": 552.18,
"text": "the month of September has seen the biggest change with a 35%"
},
{
"start": 552.18,
"end": 556.02,
"text": "drop in total rent payments received. The debt markets are"
},
{
"start": 556.02,
"end": 560.9,
"text": "also showing signs of strain. As a Reese report REIS report"
},
{
"start": 561.02,
"end": 564.7,
"text": "found that August's remittances point to a multifamily"
},
{
"start": 564.7,
"end": 567.9,
"text": "sector displaying signs of pandemic related stress,"
},
{
"start": 568.1,
"end": 571.14,
"text": "because although the overall delinquency rate is fairly"
},
{
"start": 571.14,
"end": 575.42,
"text": "stable and even showing signs of decline, the volume of"
},
{
"start": 575.42,
"end": 578.86,
"text": "special servicing remains stubbornly high and is"
},
{
"start": 578.86,
"end": 581.58,
"text": "inching higher. Furthermore, they report that they see"
},
{
"start": 581.58,
"end": 584.98,
"text": "areas where stress on debt is hiding and likely to show up"
},
{
"start": 584.98,
"end": 588.58,
"text": "in the near future. Now shifting property types to"
},
{
"start": 588.58,
"end": 591.94,
"text": "hotels. While I won't get deep into stats and reports"
},
{
"start": 591.94,
"end": 595.22,
"text": "for that sector today, I mean, we all know that hotels"
},
{
"start": 595.22,
"end": 597.7,
"text": "and retail are for the most part taking it on the chin"
},
{
"start": 597.7,
"end": 600.94,
"text": "during the pandemic. But I will know two news stories"
},
{
"start": 600.94,
"end": 604.18,
"text": "from the past week about significant hotels, which"
},
{
"start": 604.18,
"end": 607.7,
"text": "accentuate that point. And that is the permanent closing"
},
{
"start": 607.7,
"end": 611.18,
"text": "of the Luxe Hotel here in Rodeo Drive in Beverly Hills"
},
{
"start": 611.54,
"end": 614.54,
"text": "and the foreclosure action taken by the lender for the"
},
{
"start": 614.54,
"end": 618.58,
"text": "historic classic Palmer House Hilton in Chicago. Now the"
},
{
"start": 618.58,
"end": 622.1,
"text": "Palmer House was originally built in 1871 by mogul"
},
{
"start": 622.1,
"end": 624.82,
"text": "Potter Palmer and has attracted the wealthy and"
},
{
"start": 624.82,
"end": 627.3,
"text": "famous and presidents throughout its illustrious"
},
{
"start": 627.3,
"end": 631.42,
"text": "history. Conrad Hilton purchased it in 1945 as the"
},
{
"start": 631.42,
"end": 634.62,
"text": "Hilton flagship and the current owners thought for"
},
{
"start": 634.66,
"end": 640.22,
"text": "equities paid $230 million in 2005 and have spent"
},
{
"start": 640.22,
"end": 643.34,
"text": "about $173 million to completely renovate the"
},
{
"start": 643.34,
"end": 648.26,
"text": "property and its 1641 rooms. According to the"
},
{
"start": 648.26,
"end": 651.38,
"text": "Wall Street Journal article that we saw now Thor's"
},
{
"start": 651.38,
"end": 655.98,
"text": "in default on its $333 million first mortgage and"
},
{
"start": 655.98,
"end": 658.46,
"text": "the property value was recently pegged at just"
},
{
"start": 658.46,
"end": 663.82,
"text": "305.5 million down from an appraised value of 560"
},
{
"start": 663.82,
"end": 667.86,
"text": "million in 2018. Now with much of the hotel"
},
{
"start": 667.86,
"end": 670.78,
"text": "business centered on conferences and Chicago"
},
{
"start": 670.78,
"end": 672.86,
"text": "getting hit with a lot of looting and rioting"
},
{
"start": 672.86,
"end": 676.26,
"text": "in its upscale areas, this hotel and others in the"
},
{
"start": 676.26,
"end": 678.9,
"text": "city could take longer to rebound. Now the journal"
},
{
"start": 678.9,
"end": 682.06,
"text": "article noted the city's hotel occupancy for the"
},
{
"start": 682.06,
"end": 686.42,
"text": "week ended September 12th was only 35% versus a"
},
{
"start": 686.42,
"end": 690.62,
"text": "national average of almost 49%. Now regarding the"
},
{
"start": 690.62,
"end": 693.42,
"text": "Luxe Hotel closing in Beverly Hills as reported in"
},
{
"start": 693.42,
"end": 697.74,
"text": "the LA Times, it is a significant blow illustrating"
},
{
"start": 697.74,
"end": 700.3,
"text": "the continued struggles facing the hotel industry"
},
{
"start": 700.3,
"end": 703.18,
"text": "amid a global pandemic and industry experts"
},
{
"start": 703.22,
"end": 705.06,
"text": "worry that more are coming considering the"
},
{
"start": 705.06,
"end": 707.66,
"text": "inflated loan due delinquency rates for hotel"
},
{
"start": 707.66,
"end": 711.1,
"text": "borrowers. Now the Luxe 360 North Rodeo Drive is"
},
{
"start": 711.1,
"end": 713.66,
"text": "owned by Ephraim Harkim who acquired the property"
},
{
"start": 713.66,
"end": 717.02,
"text": "in 1995 according to the Times article noting"
},
{
"start": 717.02,
"end": 719.86,
"text": "property records. Jeffrey's Loan Corp provided"
},
{
"start": 719.86,
"end": 723.74,
"text": "$38 million for the hotel in June 2017 and"
},
{
"start": 723.74,
"end": 727.1,
"text": "that loan matures in 2027. The article noted"
},
{
"start": 727.1,
"end": 729.58,
"text": "that according to Trepp, a major data company,"
},
{
"start": 729.74,
"end": 732.9,
"text": "nearly 60 hotels in Los Angeles and Orange"
},
{
"start": 732.9,
"end": 735.5,
"text": "counties are late on their loan payments by more"
},
{
"start": 735.5,
"end": 738.58,
"text": "than 30 days. And Heather Rosman, executive"
},
{
"start": 738.58,
"end": 741.26,
"text": "director of the Hotel Association of L.A., told"
},
{
"start": 741.26,
"end": 743.62,
"text": "the Times that they anticipate many hotels won't"
},
{
"start": 743.62,
"end": 746.78,
"text": "survive and that industry data shows one in four"
},
{
"start": 746.78,
"end": 748.74,
"text": "properties already are struggling to pay"
},
{
"start": 748.74,
"end": 752.86,
"text": "mortgages, risking foreclosure. Yikes. Now"
},
{
"start": 752.86,
"end": 756.42,
"text": "continuing with the gloomy, albeit real news, I"
},
{
"start": 756.42,
"end": 758.86,
"text": "will quickly touch on the office sector which"
},
{
"start": 758.86,
"end": 760.9,
"text": "also is getting hurt from its own set of"
},
{
"start": 760.9,
"end": 763.82,
"text": "serious challenges thanks to job losses and"
},
{
"start": 763.82,
"end": 766.34,
"text": "work from the work from home trend. And a new"
},
{
"start": 766.34,
"end": 768.54,
"text": "report by Cushman and Wakefield measures the"
},
{
"start": 768.54,
"end": 771.38,
"text": "pandemic's impact on the office market. Now in"
},
{
"start": 771.38,
"end": 774.18,
"text": "the company's baseline scenario, which they feel"
},
{
"start": 774.18,
"end": 777.18,
"text": "has a 50 percent probability, the U.S. office"
},
{
"start": 777.18,
"end": 780.5,
"text": "market will shed 145 million square feet of"
},
{
"start": 780.5,
"end": 783.42,
"text": "office space demand in the next two years"
},
{
"start": 783.62,
"end": 786.82,
"text": "through the end of 2021. Job loss is the"
},
{
"start": 786.82,
"end": 789.46,
"text": "driving force behind the degeneration of the U.S."
},
{
"start": 789.46,
"end": 792.1,
"text": "office market with the report anticipating a"
},
{
"start": 792.1,
"end": 795.98,
"text": "loss of 1.7 million jobs in 2020. Now that's an"
},
{
"start": 795.98,
"end": 799.06,
"text": "improvement compared to the 2.6 million jobs lost"
},
{
"start": 799.06,
"end": 801.54,
"text": "in the second quarter. Now to put the impact of"
},
{
"start": 801.54,
"end": 803.86,
"text": "the pandemic in perspective, Cushman and"
},
{
"start": 803.86,
"end": 805.94,
"text": "Wakefield has determined that office demand will"
},
{
"start": 805.94,
"end": 809.14,
"text": "decrease 30 percent more during the pandemic"
},
{
"start": 809.14,
"end": 811.82,
"text": "than it did during the 2008 great financial"
},
{
"start": 811.82,
"end": 815.22,
"text": "crisis. Negative absorption will also outpace"
},
{
"start": 815.22,
"end": 818.02,
"text": "prior recessions. In the great financial crisis,"
},
{
"start": 818.02,
"end": 820.66,
"text": "absorption totaled negative 2.1 percent of"
},
{
"start": 820.66,
"end": 823.38,
"text": "total inventory. And in the previous recession,"
},
{
"start": 823.38,
"end": 826.34,
"text": "the dot com recession, total office absorption"
},
{
"start": 826.34,
"end": 829.3,
"text": "totaled negative 2.4 percent of total office"
},
{
"start": 829.3,
"end": 831.9,
"text": "inventory at the time. Now in the current"
},
{
"start": 831.9,
"end": 835.14,
"text": "pandemic, C&W estimates that office absorption"
},
{
"start": 835.34,
"end": 838.62,
"text": "will decrease 2.7 percent of total inventory."
},
{
"start": 838.86,
"end": 840.54,
"text": "Now these numbers represent the market"
},
{
"start": 840.54,
"end": 843.9,
"text": "contraction just through the total downturn and"
},
{
"start": 843.9,
"end": 846.5,
"text": "not the long term trends and impacts beyond"
},
{
"start": 846.5,
"end": 849.3,
"text": "dealing with the change in work from home"
},
{
"start": 849.3,
"end": 853.18,
"text": "habits. And now I have a message from a sponsor"
},
{
"start": 853.18,
"end": 856.34,
"text": "of our show, Capitol Rivers commercial led by"
},
{
"start": 856.34,
"end": 858.62,
"text": "Greg Aguirre, who want to make sure that in"
},
{
"start": 858.62,
"end": 861.58,
"text": "case you haven't heard, there's a massive tax"
},
{
"start": 861.58,
"end": 864.34,
"text": "increase on the ballot in November targeted at"
},
{
"start": 864.38,
"end": 867.54,
"text": "owners and renters of commercial real estate. If"
},
{
"start": 867.54,
"end": 869.9,
"text": "that's you, then you need to be well aware"
},
{
"start": 869.9,
"end": 873.06,
"text": "of Proposition 15 and the team at Capitol"
},
{
"start": 873.06,
"end": 876.46,
"text": "Rivers commercial can tell you all about it. For"
},
{
"start": 876.46,
"end": 878.46,
"text": "most commercial properties in California,"
},
{
"start": 878.66,
"end": 881.82,
"text": "Prop 15 would end the highly prized taxpayer"
},
{
"start": 881.82,
"end": 884.9,
"text": "protections that have been afforded by Prop 13"
},
{
"start": 884.9,
"end": 887.7,
"text": "for more than 40 years. You can look it up"
},
{
"start": 887.7,
"end": 890.22,
"text": "online. But if you want to really understand"
},
{
"start": 890.22,
"end": 892.46,
"text": "and prepare for it, you'll want to talk to an"
},
{
"start": 892.46,
"end": 895.42,
"text": "expert like Greg and his team of experts at"
},
{
"start": 895.42,
"end": 898.18,
"text": "Capitol Rivers. If you'd like to see more,"
},
{
"start": 898.38,
"end": 901.02,
"text": "check out their Prop 15 landing page on their"
},
{
"start": 901.02,
"end": 904.66,
"text": "website at CapitolRivers.com. These are not"
},
{
"start": 904.66,
"end": 907.42,
"text": "your typical real estate brokers work with"
},
{
"start": 907.42,
"end": 912.26,
"text": "the best work with Capitol Rivers. In this"
},
{
"start": 912.26,
"end": 915.14,
"text": "segment of the show, I discuss views mine as"
},
{
"start": 915.14,
"end": 917.86,
"text": "well as others concerning real estate issues"
},
{
"start": 917.86,
"end": 919.7,
"text": "such as impending legislation that could"
},
{
"start": 919.7,
"end": 922.3,
"text": "affect the industry. And in future episodes,"
},
{
"start": 922.3,
"end": 925.54,
"text": "I will get into Prop 15, rent control and"
},
{
"start": 925.54,
"end": 927.54,
"text": "other topics. But today I want to talk"
},
{
"start": 927.54,
"end": 929.3,
"text": "about the hottest real estate issue in the"
},
{
"start": 929.3,
"end": 931.66,
"text": "state today and one that I am fired up"
},
{
"start": 931.66,
"end": 934.02,
"text": "about. Yes, I am talking about the fires"
},
{
"start": 934.02,
"end": 936.26,
"text": "ravaging the state, which while this year"
},
{
"start": 936.26,
"end": 938.7,
"text": "has been the worst, have been ravaging the"
},
{
"start": 938.7,
"end": 940.74,
"text": "state each and every year for decades."
},
{
"start": 941.18,
"end": 943.02,
"text": "While I cannot compare the loss of real"
},
{
"start": 943.02,
"end": 945.26,
"text": "estate or its value to the loss of lives"
},
{
"start": 945.26,
"end": 947.86,
"text": "and livelihoods, I know of many owners of"
},
{
"start": 947.86,
"end": 949.78,
"text": "shopping centers and apartment buildings"
},
{
"start": 949.78,
"end": 952.1,
"text": "around the state and so many of them and"
},
{
"start": 952.1,
"end": 953.98,
"text": "their properties are affected by the fires"
},
{
"start": 953.98,
"end": 956.3,
"text": "that have already occurred or the threat of"
},
{
"start": 956.3,
"end": 958.46,
"text": "future fires. The risk of buying and"
},
{
"start": 958.46,
"end": 960.34,
"text": "lending and ensuring properties in towns"
},
{
"start": 960.34,
"end": 962.42,
"text": "under threat of wildfires keeps increasing"
},
{
"start": 962.66,
"end": 964.74,
"text": "while the values are decreasing. And in"
},
{
"start": 964.74,
"end": 967.14,
"text": "some areas, the value is completely"
},
{
"start": 967.14,
"end": 969.14,
"text": "wiped away, a complete loss for the"
},
{
"start": 969.14,
"end": 971.5,
"text": "property owner and any lenders. And"
},
{
"start": 971.5,
"end": 973.34,
"text": "besides the financial damage, there is"
},
{
"start": 973.34,
"end": 975.5,
"text": "the huge damage to the environment from"
},
{
"start": 975.5,
"end": 977.58,
"text": "the smoke, the destruction of trees and"
},
{
"start": 977.58,
"end": 980.02,
"text": "foliage and wildlife, as well as the"
},
{
"start": 980.02,
"end": 982.82,
"text": "water runoff from the fires. But does"
},
{
"start": 982.82,
"end": 984.46,
"text": "it have to be this way each and every"
},
{
"start": 984.46,
"end": 986.78,
"text": "year? It's not like it's once in a"
},
{
"start": 986.78,
"end": 989.78,
"text": "century occurrence. So given that, why"
},
{
"start": 989.78,
"end": 991.62,
"text": "doesn't the state seem more prepared and"
},
{
"start": 991.62,
"end": 994.18,
"text": "coordinated in dealing with this? We are"
},
{
"start": 994.18,
"end": 996.22,
"text": "the home to the tech geniuses in Silicon"
},
{
"start": 996.22,
"end": 998.22,
"text": "Valley. Much of the equipment that took"
},
{
"start": 998.22,
"end": 1000.3,
"text": "us to space was built here. Geez, a"
},
{
"start": 1000.3,
"end": 1002.74,
"text": "hundred years ago, we built a dam at"
},
{
"start": 1002.74,
"end": 1004.58,
"text": "Hetch Hetchy in Yosemite and"
},
{
"start": 1004.58,
"end": 1006.78,
"text": "constructed a water canal to take water"
},
{
"start": 1006.78,
"end": 1008.74,
"text": "to San Francisco a couple hundred"
},
{
"start": 1008.74,
"end": 1011.18,
"text": "miles away, just with gravity. So this"
},
{
"start": 1011.18,
"end": 1013.34,
"text": "can be done. It takes focus,"
},
{
"start": 1013.38,
"end": 1016.22,
"text": "leadership and balls. I mean, instead of"
},
{
"start": 1016.22,
"end": 1017.78,
"text": "blowing what is now estimated to be"
},
{
"start": 1017.78,
"end": 1020.9,
"text": "about $90 billion on a train no one"
},
{
"start": 1020.9,
"end": 1022.86,
"text": "will use and that will be bleeding"
},
{
"start": 1022.86,
"end": 1025.22,
"text": "money from day one, which will be 30"
},
{
"start": 1025.22,
"end": 1027.1,
"text": "years from now, some of that money"
},
{
"start": 1027.1,
"end": 1028.7,
"text": "could have gone to build a coordinated"
},
{
"start": 1028.7,
"end": 1030.62,
"text": "sophisticated tech driven fire"
},
{
"start": 1030.62,
"end": 1033.26,
"text": "prevention and reduction infrastructure"
},
{
"start": 1033.38,
"end": 1035.26,
"text": "that I gotta believe could already"
},
{
"start": 1035.26,
"end": 1037.1,
"text": "be reducing the destruction caused by"
},
{
"start": 1037.1,
"end": 1039.74,
"text": "the fires. For instance, when I see"
},
{
"start": 1039.74,
"end": 1041.06,
"text": "hurricane news, they cut to these"
},
{
"start": 1041.06,
"end": 1042.94,
"text": "disaster command centers in Florida"
},
{
"start": 1043.1,
"end": 1044.3,
"text": "that look like they could be for"
},
{
"start": 1044.3,
"end": 1046.86,
"text": "NASA landing a rocket on Mars. But"
},
{
"start": 1046.86,
"end": 1048.34,
"text": "for real, someone please tell me"
},
{
"start": 1048.34,
"end": 1049.9,
"text": "why we do not have a state fire"
},
{
"start": 1049.9,
"end": 1051.82,
"text": "command center as well as a state"
},
{
"start": 1051.82,
"end": 1054.1,
"text": "fire marshal who we can all look to"
},
{
"start": 1054.1,
"end": 1055.82,
"text": "and have confidence in and can"
},
{
"start": 1055.82,
"end": 1057.58,
"text": "bring together the various disciplines"
},
{
"start": 1057.58,
"end": 1059.9,
"text": "and experts needed to intelligently"
},
{
"start": 1059.9,
"end": 1061.42,
"text": "deal with forests and fires going"
},
{
"start": 1061.42,
"end": 1063.42,
"text": "forward. And why don't we have the"
},
{
"start": 1063.42,
"end": 1065.78,
"text": "most tech sophisticated fleet of"
},
{
"start": 1065.78,
"end": 1067.46,
"text": "manless remote control water"
},
{
"start": 1067.46,
"end": 1069.78,
"text": "carrying drone aircrafts as well"
},
{
"start": 1069.78,
"end": 1072.22,
"text": "as other high flying video drones"
},
{
"start": 1072.5,
"end": 1074.26,
"text": "along with more dispersed water"
},
{
"start": 1074.26,
"end": 1076.18,
"text": "retention and delivery systems in"
},
{
"start": 1076.18,
"end": 1078.58,
"text": "high risk areas. But we also need"
},
{
"start": 1078.58,
"end": 1080.54,
"text": "leaders who have the cojones to do"
},
{
"start": 1080.54,
"end": 1082.18,
"text": "whatever it takes to make the"
},
{
"start": 1082.18,
"end": 1084.22,
"text": "hardcore environmentalists feel"
},
{
"start": 1084.22,
"end": 1086.38,
"text": "the heat from a public that is fed"
},
{
"start": 1086.38,
"end": 1087.9,
"text": "up with a rational, dangerous,"
},
{
"start": 1087.9,
"end": 1089.94,
"text": "deadly, and mainly non existent"
},
{
"start": 1089.94,
"end": 1091.78,
"text": "fire control and forest management"
},
{
"start": 1091.78,
"end": 1093.94,
"text": "strategies and all the lawsuits"
},
{
"start": 1093.94,
"end": 1095.14,
"text": "preventing logical fire"
},
{
"start": 1095.14,
"end": 1097.34,
"text": "prevention activities. While it is"
},
{
"start": 1097.34,
"end": 1099.06,
"text": "great to be concerned about the"
},
{
"start": 1099.06,
"end": 1100.66,
"text": "temperature going up to up a"
},
{
"start": 1100.66,
"end": 1103.18,
"text": "degree over the next 50 years,"
},
{
"start": 1103.34,
"end": 1104.94,
"text": "or the water rising along some"
},
{
"start": 1104.94,
"end": 1107.46,
"text": "coastal areas, reducing carbon"
},
{
"start": 1107.46,
"end": 1109.54,
"text": "emissions over decades, ain't"
},
{
"start": 1109.54,
"end": 1111.18,
"text": "going to remove the dead wood that"
},
{
"start": 1111.18,
"end": 1113.06,
"text": "is on the forest floor right now,"
},
{
"start": 1113.18,
"end": 1114.58,
"text": "which will burn some time in the"
},
{
"start": 1114.58,
"end": 1116.66,
"text": "next few years. So we need to"
},
{
"start": 1116.66,
"end": 1118.18,
"text": "have teams systematically clear"
},
{
"start": 1118.18,
"end": 1119.54,
"text": "out tenor and high fire threat"
},
{
"start": 1119.54,
"end": 1121.02,
"text": "areas and create more fire"
},
{
"start": 1121.02,
"end": 1122.58,
"text": "roads and fire buffers and"
},
{
"start": 1122.58,
"end": 1124.06,
"text": "invest in more firefighting"
},
{
"start": 1124.06,
"end": 1125.58,
"text": "staff, equipment and"
},
{
"start": 1125.58,
"end": 1127.7,
"text": "technology, including firefighters"
},
{
"start": 1127.7,
"end": 1129.22,
"text": "inspectors and conduct the"
},
{
"start": 1129.22,
"end": 1131.02,
"text": "systematic clearance of trees and"
},
{
"start": 1131.02,
"end": 1133.5,
"text": "wood around towns, along roads"
},
{
"start": 1133.54,
"end": 1135.58,
"text": "and under power lines. And can't"
},
{
"start": 1135.58,
"end": 1136.82,
"text": "we start putting more of those"
},
{
"start": 1136.82,
"end": 1138.86,
"text": "power lines underground? Now,"
},
{
"start": 1138.86,
"end": 1140.38,
"text": "the government's first obligation"
},
{
"start": 1140.38,
"end": 1141.54,
"text": "is to protect the lives and"
},
{
"start": 1141.54,
"end": 1143.66,
"text": "property of its citizens. So it"
},
{
"start": 1143.66,
"end": 1145.38,
"text": "makes no sense to me why every"
},
{
"start": 1145.38,
"end": 1146.9,
"text": "year, it seems like it is the"
},
{
"start": 1146.9,
"end": 1149.1,
"text": "first year these fires occur,"
},
{
"start": 1149.3,
"end": 1151.58,
"text": "with uncoordinated responses from"
},
{
"start": 1151.58,
"end": 1152.94,
"text": "a variety of state and local"
},
{
"start": 1152.94,
"end": 1154.74,
"text": "officials. Meanwhile, the"
},
{
"start": 1154.74,
"end": 1156.06,
"text": "governor signs a bill reducing"
},
{
"start": 1156.06,
"end": 1158.22,
"text": "car emissions, which may one"
},
{
"start": 1158.22,
"end": 1159.7,
"text": "day have a very negligible"
},
{
"start": 1159.7,
"end": 1161.62,
"text": "effect on anything. And we keep"
},
{
"start": 1161.62,
"end": 1162.9,
"text": "pouring money into the train"
},
{
"start": 1162.9,
"end": 1164.74,
"text": "and nowhere. But next year,"
},
{
"start": 1164.82,
"end": 1166.22,
"text": "wood that is on that forest"
},
{
"start": 1166.22,
"end": 1168.02,
"text": "floor right now will burn and"
},
{
"start": 1168.02,
"end": 1170.14,
"text": "ignite a nearby building. It is"
},
{
"start": 1170.14,
"end": 1172.18,
"text": "close to negligent behavior on"
},
{
"start": 1172.18,
"end": 1173.34,
"text": "the part of the people and the"
},
{
"start": 1173.34,
"end": 1175.34,
"text": "party in charge in this state."
},
{
"start": 1176.38,
"end": 1177.42,
"text": "Now I will tell you about"
},
{
"start": 1177.42,
"end": 1178.94,
"text": "another sponsor of the show,"
},
{
"start": 1179.18,
"end": 1180.9,
"text": "Redwood Mortgage. Redwood"
},
{
"start": 1180.9,
"end": 1182.62,
"text": "Mortgage is a direct portfolio"
},
{
"start": 1182.62,
"end": 1184.3,
"text": "lender providing loans on"
},
{
"start": 1184.3,
"end": 1186.22,
"text": "commercial office, industrial,"
},
{
"start": 1186.34,
"end": 1188.22,
"text": "multifamily, mixed use and"
},
{
"start": 1188.22,
"end": 1189.94,
"text": "residential investment properties"
},
{
"start": 1189.94,
"end": 1192.22,
"text": "in California. In business for"
},
{
"start": 1192.22,
"end": 1194.5,
"text": "over 42 years, Redwood Mortgage"
},
{
"start": 1194.5,
"end": 1196.26,
"text": "is established, trusted and"
},
{
"start": 1196.26,
"end": 1198.62,
"text": "well capitalized. A good place"
},
{
"start": 1198.62,
"end": 1200.7,
"text": "to go when the bank say no,"
},
{
"start": 1200.9,
"end": 1204.9,
"text": "call Redwood Mortgage at 800 659"
},
{
"start": 1205.02,
"end": 1209.26,
"text": "6593 or redwoodmortgage.com."
},
{
"start": 1211.52,
"end": 1213.36,
"text": "Okay, now it's time to get into"
},
{
"start": 1213.36,
"end": 1214.64,
"text": "our real estate version of the"
},
{
"start": 1214.64,
"end": 1216.4,
"text": "sports highlight reel with our"
},
{
"start": 1216.4,
"end": 1218.68,
"text": "very exciting Rent TV Roundup of"
},
{
"start": 1218.68,
"end": 1220.28,
"text": "major deal and development news"
},
{
"start": 1220.28,
"end": 1222.12,
"text": "from around the US. And as I"
},
{
"start": 1222.12,
"end": 1223.8,
"text": "normally do, I will start with"
},
{
"start": 1223.8,
"end": 1225.68,
"text": "the major portfolio or corporate"
},
{
"start": 1225.68,
"end": 1227.44,
"text": "deals and then go from the east"
},
{
"start": 1227.44,
"end": 1229.52,
"text": "coast and head west. And the big"
},
{
"start": 1229.52,
"end": 1230.92,
"text": "corporate type portfolio"
},
{
"start": 1230.92,
"end": 1232.52,
"text": "transaction announced this past"
},
{
"start": 1232.52,
"end": 1233.68,
"text": "week that was across most"
},
{
"start": 1233.68,
"end": 1235.56,
"text": "newswires was that colony"
},
{
"start": 1235.56,
"end": 1236.84,
"text": "capital has entered into a"
},
{
"start": 1236.84,
"end": 1238.56,
"text": "definitive agreement to sell"
},
{
"start": 1238.56,
"end": 1240.04,
"text": "six of its hospitality"
},
{
"start": 1240.04,
"end": 1242.72,
"text": "portfolios to high gate hotels"
},
{
"start": 1242.88,
"end": 1244.96,
"text": "in a deal valued at $2.8"
},
{
"start": 1244.96,
"end": 1246.88,
"text": "billion, which includes the"
},
{
"start": 1246.88,
"end": 1249.16,
"text": "assumption of $2.7 billion in"
},
{
"start": 1249.16,
"end": 1251.12,
"text": "debt. The six portfolios"
},
{
"start": 1251.12,
"end": 1255.4,
"text": "consist of 22,676 rooms across"
},
{
"start": 1255.4,
"end": 1258.72,
"text": "197 hotel properties. The deal"
},
{
"start": 1258.72,
"end": 1260.2,
"text": "is part of colony shift to focus"
},
{
"start": 1260.2,
"end": 1261.6,
"text": "on digital infrastructure"
},
{
"start": 1261.6,
"end": 1264.16,
"text": "assets with colony capital CEO"
},
{
"start": 1264.16,
"end": 1265.48,
"text": "Mark Gansey noting in the"
},
{
"start": 1265.48,
"end": 1267.04,
"text": "release that they are thrilled"
},
{
"start": 1267.04,
"end": 1268.2,
"text": "to be delivering on their"
},
{
"start": 1268.2,
"end": 1269.8,
"text": "commitment to dispose of non"
},
{
"start": 1269.8,
"end": 1272.2,
"text": "core assets and harvest positive"
},
{
"start": 1272.2,
"end": 1274.0,
"text": "value for their hospitality"
},
{
"start": 1274.0,
"end": 1275.96,
"text": "business. The deal is expected"
},
{
"start": 1275.96,
"end": 1277.24,
"text": "to close in the first quarter of"
},
{
"start": 1277.24,
"end": 1279.76,
"text": "2021 subject to customary"
},
{
"start": 1279.76,
"end": 1281.2,
"text": "closing conditions and third"
},
{
"start": 1281.2,
"end": 1283.52,
"text": "party approvals. As we noted"
},
{
"start": 1283.52,
"end": 1284.92,
"text": "earlier when everyone in this"
},
{
"start": 1284.92,
"end": 1286.76,
"text": "audience knows is obvious, the"
},
{
"start": 1286.76,
"end": 1288.32,
"text": "hotel sector is getting crushed"
},
{
"start": 1288.32,
"end": 1289.84,
"text": "from the pandemic, although"
},
{
"start": 1289.84,
"end": 1291.28,
"text": "some very slight improvements"
},
{
"start": 1291.28,
"end": 1292.68,
"text": "are being seen as some areas"
},
{
"start": 1292.68,
"end": 1294.76,
"text": "were reawakened. But as Erica"
},
{
"start": 1294.76,
"end": 1296.08,
"text": "Morphy noted in her Globe"
},
{
"start": 1296.08,
"end": 1297.64,
"text": "Street piece on this report,"
},
{
"start": 1297.88,
"end": 1299.6,
"text": "many owners of hotel properties"
},
{
"start": 1299.6,
"end": 1301.72,
"text": "are facing major problems as a"
},
{
"start": 1301.72,
"end": 1303.4,
"text": "survey by the American Hotel"
},
{
"start": 1303.4,
"end": 1305.2,
"text": "and Lodging Association found"
},
{
"start": 1305.2,
"end": 1307.28,
"text": "half of hotel owners reporting"
},
{
"start": 1307.28,
"end": 1308.36,
"text": "that they are in danger of"
},
{
"start": 1308.36,
"end": 1309.84,
"text": "foreclosure by their lenders"
},
{
"start": 1309.84,
"end": 1312.04,
"text": "due to COVID-19. The survey"
},
{
"start": 1312.04,
"end": 1313.24,
"text": "also found that more than two"
},
{
"start": 1313.24,
"end": 1316.84,
"text": "thirds of hotels or 67% reported"
},
{
"start": 1316.84,
"end": 1317.96,
"text": "that they will only be able to"
},
{
"start": 1317.96,
"end": 1319.84,
"text": "last six more months at current"
},
{
"start": 1319.84,
"end": 1321.56,
"text": "projected revenue and occupancy"
},
{
"start": 1321.56,
"end": 1323.48,
"text": "levels absent any further"
},
{
"start": 1323.48,
"end": 1326.12,
"text": "relief. Moving to individual"
},
{
"start": 1326.12,
"end": 1327.72,
"text": "deal and development news, I"
},
{
"start": 1327.72,
"end": 1328.84,
"text": "will start in New York City"
},
{
"start": 1328.84,
"end": 1330.12,
"text": "with news of a development that"
},
{
"start": 1330.12,
"end": 1331.84,
"text": "actually won't happen. And"
},
{
"start": 1331.84,
"end": 1333.08,
"text": "that is because as the Wall"
},
{
"start": 1333.08,
"end": 1334.4,
"text": "Street Journal reported last"
},
{
"start": 1334.4,
"end": 1336.28,
"text": "week, the plans by the owners"
},
{
"start": 1336.28,
"end": 1338.6,
"text": "of Industry City, the 16"
},
{
"start": 1338.6,
"end": 1340.16,
"text": "building, 6 million square"
},
{
"start": 1340.16,
"end": 1341.68,
"text": "foot campus on the sunset"
},
{
"start": 1341.68,
"end": 1343.2,
"text": "park waterfront in Brooklyn,"
},
{
"start": 1343.44,
"end": 1345.56,
"text": "which was to add 1.3 million"
},
{
"start": 1345.56,
"end": 1346.72,
"text": "square feet of business,"
},
{
"start": 1346.72,
"end": 1348.4,
"text": "classroom, retail and office"
},
{
"start": 1348.4,
"end": 1351.24,
"text": "space on two vacant parcels has"
},
{
"start": 1351.24,
"end": 1352.36,
"text": "been withdrawn by the"
},
{
"start": 1352.36,
"end": 1354.16,
"text": "developers, a partnership of"
},
{
"start": 1354.16,
"end": 1356.44,
"text": "Jamestown, Angela Gordon and"
},
{
"start": 1356.44,
"end": 1357.96,
"text": "Belvedere Capital real estate"
},
{
"start": 1357.96,
"end": 1359.64,
"text": "partners. They needed to"
},
{
"start": 1359.64,
"end": 1361.04,
"text": "rezone the sites, which they"
},
{
"start": 1361.04,
"end": 1363.2,
"text": "already own, to allow for more"
},
{
"start": 1363.2,
"end": 1364.72,
"text": "retail and classroom uses. And"
},
{
"start": 1364.72,
"end": 1366.0,
"text": "that plan was approved by the"
},
{
"start": 1366.0,
"end": 1367.96,
"text": "city council, but opposed by"
},
{
"start": 1367.96,
"end": 1369.52,
"text": "the district's council member,"
},
{
"start": 1369.72,
"end": 1371.6,
"text": "Carlos Menchaca, and then"
},
{
"start": 1371.6,
"end": 1372.88,
"text": "last week, four of New York's"
},
{
"start": 1372.88,
"end": 1374.48,
"text": "congressional reps, two state"
},
{
"start": 1374.48,
"end": 1376.32,
"text": "senators and four members of"
},
{
"start": 1376.32,
"end": 1378.0,
"text": "the state assembly sent a"
},
{
"start": 1378.0,
"end": 1379.64,
"text": "letter to the city council"
},
{
"start": 1379.64,
"end": 1381.84,
"text": "opposing the project, resulting"
},
{
"start": 1381.84,
"end": 1383.12,
"text": "in the developers withdrawing"
},
{
"start": 1383.12,
"end": 1385.04,
"text": "their application, which is a"
},
{
"start": 1385.04,
"end": 1386.92,
"text": "total shame in light of the"
},
{
"start": 1386.92,
"end": 1388.64,
"text": "city politicians chasing away"
},
{
"start": 1388.68,
"end": 1390.72,
"text": "Amazon before the pandemic."
},
{
"start": 1391.04,
"end": 1392.56,
"text": "And now with the pandemic and"
},
{
"start": 1392.56,
"end": 1393.72,
"text": "other things like crime and"
},
{
"start": 1393.72,
"end": 1395.24,
"text": "taxes leading to a spike in"
},
{
"start": 1395.24,
"end": 1397.04,
"text": "unemployment in the city. So"
},
{
"start": 1397.04,
"end": 1398.4,
"text": "it is a brilliant move to"
},
{
"start": 1398.4,
"end": 1400.12,
"text": "reject a developer who is"
},
{
"start": 1400.16,
"end": 1402.16,
"text": "willing to invest such a large"
},
{
"start": 1402.16,
"end": 1403.92,
"text": "amount of capital in these"
},
{
"start": 1403.92,
"end": 1405.8,
"text": "tough economic times. Good"
},
{
"start": 1405.8,
"end": 1407.64,
"text": "move. Now, a New York City"
},
{
"start": 1407.64,
"end": 1409.0,
"text": "deal that did go through in"
},
{
"start": 1409.0,
"end": 1410.32,
"text": "Long, Long Island City,"
},
{
"start": 1410.32,
"end": 1412.92,
"text": "Queens was the $500 million"
},
{
"start": 1412.92,
"end": 1414.88,
"text": "studio deal by Hackman Capital"
},
{
"start": 1414.88,
"end": 1416.04,
"text": "and Square Mile Capital"
},
{
"start": 1416.04,
"end": 1417.68,
"text": "Management for the famous"
},
{
"start": 1417.68,
"end": 1419.8,
"text": "Silver Cup Studios, one of"
},
{
"start": 1419.8,
"end": 1420.72,
"text": "the largest film and"
},
{
"start": 1420.72,
"end": 1421.72,
"text": "television production"
},
{
"start": 1421.72,
"end": 1423.6,
"text": "facilities in New York City"
},
{
"start": 1424.16,
"end": 1425.32,
"text": "with the property in Long"
},
{
"start": 1425.32,
"end": 1426.92,
"text": "Island City and another in"
},
{
"start": 1426.92,
"end": 1427.8,
"text": "the Port Morris"
},
{
"start": 1427.8,
"end": 1430.0,
"text": "neighborhood of the Bronx. Other"
},
{
"start": 1430.0,
"end": 1431.04,
"text": "investors in the Silver"
},
{
"start": 1431.04,
"end": 1432.88,
"text": "Cup acquisition include the"
},
{
"start": 1432.88,
"end": 1434.36,
"text": "teacher retirement system of"
},
{
"start": 1434.36,
"end": 1436.28,
"text": "Texas and affiliate of the"
},
{
"start": 1436.28,
"end": 1438.12,
"text": "United Services Automobile"
},
{
"start": 1438.12,
"end": 1439.92,
"text": "Association and Canada"
},
{
"start": 1439.92,
"end": 1441.68,
"text": "based PSP investments,"
},
{
"start": 1441.88,
"end": 1443.04,
"text": "according to the Wall Street"
},
{
"start": 1443.04,
"end": 1444.28,
"text": "Journal article by Conrad"
},
{
"start": 1444.28,
"end": 1447.12,
"text": "Puthier. This studio deal"
},
{
"start": 1447.36,
"end": 1448.96,
"text": "comes on the heels of"
},
{
"start": 1448.96,
"end": 1450.36,
"text": "another big studio deal the"
},
{
"start": 1450.36,
"end": 1451.88,
"text": "June purchase by Blackstone"
},
{
"start": 1451.88,
"end": 1454.88,
"text": "group of a 49 49 percent"
},
{
"start": 1454.88,
"end": 1456.52,
"text": "stake in three film"
},
{
"start": 1456.52,
"end": 1457.76,
"text": "production facilities in"
},
{
"start": 1457.76,
"end": 1459.12,
"text": "Hollywood, California,"
},
{
"start": 1459.36,
"end": 1460.84,
"text": "managed by Hudson Pacific"
},
{
"start": 1460.84,
"end": 1462.32,
"text": "properties in a deal that"
},
{
"start": 1462.32,
"end": 1463.48,
"text": "valued those buildings at"
},
{
"start": 1463.48,
"end": 1466.36,
"text": "1.65 billion. Now, Silver"
},
{
"start": 1466.36,
"end": 1467.48,
"text": "Cup, one of New York City's"
},
{
"start": 1467.48,
"end": 1468.96,
"text": "most storied film studio"
},
{
"start": 1468.96,
"end": 1470.56,
"text": "lots, doesn't just operate"
},
{
"start": 1470.56,
"end": 1471.72,
"text": "the facilities that also"
},
{
"start": 1471.72,
"end": 1473.2,
"text": "owns the real estate. It"
},
{
"start": 1473.2,
"end": 1475.12,
"text": "operates 23 shooting stages"
},
{
"start": 1475.12,
"end": 1476.48,
"text": "at three locations in Queens"
},
{
"start": 1476.48,
"end": 1477.72,
"text": "and the Bronx. Now its"
},
{
"start": 1477.72,
"end": 1479.84,
"text": "first location opened in 1983"
},
{
"start": 1479.84,
"end": 1482.04,
"text": "in a former flower silo of"
},
{
"start": 1482.04,
"end": 1483.44,
"text": "the Silver Cup bakery in"
},
{
"start": 1483.44,
"end": 1485.28,
"text": "Long Island City. Now it is"
},
{
"start": 1485.28,
"end": 1486.4,
"text": "one of New York's four"
},
{
"start": 1486.4,
"end": 1487.92,
"text": "leading production facilities"
},
{
"start": 1488.08,
"end": 1489.76,
"text": "along with Steiner Studios,"
},
{
"start": 1490.0,
"end": 1491.72,
"text": "Kauffman Astoria Studios,"
},
{
"start": 1491.88,
"end": 1493.92,
"text": "and Broadway Stages. Silver"
},
{
"start": 1493.92,
"end": 1494.8,
"text": "Cup is now going to be"
},
{
"start": 1494.8,
"end": 1495.8,
"text": "the first of the four to"
},
{
"start": 1495.8,
"end": 1496.92,
"text": "be controlled by an out of"
},
{
"start": 1496.92,
"end": 1499.04,
"text": "town investment firm. East"
},
{
"start": 1499.04,
"end": 1500.04,
"text": "Hill Secured was the"
},
{
"start": 1500.04,
"end": 1501.36,
"text": "exclusive adviser to the"
},
{
"start": 1501.36,
"end": 1503.12,
"text": "sellers, brothers Alan and"
},
{
"start": 1503.12,
"end": 1504.84,
"text": "Stuart Suna. Now Hackman"
},
{
"start": 1504.84,
"end": 1506.32,
"text": "Capital also owns Culver"
},
{
"start": 1506.32,
"end": 1508.2,
"text": "Studios and Television City"
},
{
"start": 1508.2,
"end": 1509.84,
"text": "in Southern California. And"
},
{
"start": 1509.84,
"end": 1510.92,
"text": "this joint venture has"
},
{
"start": 1510.92,
"end": 1512.24,
"text": "acquired several studio"
},
{
"start": 1512.24,
"end": 1514.28,
"text": "portfolios, including MBS"
},
{
"start": 1514.28,
"end": 1515.6,
"text": "Media Campus and MBS"
},
{
"start": 1515.6,
"end": 1517.08,
"text": "services located in"
},
{
"start": 1517.08,
"end": 1518.52,
"text": "Manhattan Beach, California"
},
{
"start": 1518.72,
"end": 1521.44,
"text": "from Carlisle Group in 2019"
},
{
"start": 1521.64,
"end": 1525.08,
"text": "for $650 million and CBS"
},
{
"start": 1525.08,
"end": 1527.0,
"text": "Television City in LA for"
},
{
"start": 1527.0,
"end": 1529.52,
"text": "$750 million from CBS"
},
{
"start": 1529.52,
"end": 1532.0,
"text": "Corporation. And for the"
},
{
"start": 1532.0,
"end": 1532.96,
"text": "rest of the development"
},
{
"start": 1532.96,
"end": 1534.16,
"text": "news, I will skip out to"
},
{
"start": 1534.16,
"end": 1536.08,
"text": "California, where I have"
},
{
"start": 1536.08,
"end": 1537.48,
"text": "several interesting large"
},
{
"start": 1537.48,
"end": 1538.36,
"text": "scale deals and"
},
{
"start": 1538.36,
"end": 1539.4,
"text": "developments to report"
},
{
"start": 1539.4,
"end": 1540.36,
"text": "about from all over the"
},
{
"start": 1540.36,
"end": 1541.88,
"text": "state. And I will start"
},
{
"start": 1541.88,
"end": 1542.84,
"text": "with a much needed"
},
{
"start": 1542.84,
"end": 1544.12,
"text": "positive story about a"
},
{
"start": 1544.12,
"end": 1546.24,
"text": "beaten up sector retail in"
},
{
"start": 1546.24,
"end": 1547.6,
"text": "a city that is now taking"
},
{
"start": 1547.6,
"end": 1548.96,
"text": "a beating San Francisco."
},
{
"start": 1549.36,
"end": 1550.4,
"text": "And that is the news that"
},
{
"start": 1550.4,
"end": 1552.64,
"text": "IKEA parent Incas Center's"
},
{
"start": 1552.64,
"end": 1554.08,
"text": "division announced that it"
},
{
"start": 1554.08,
"end": 1556.88,
"text": "will spend $260 million to"
},
{
"start": 1556.88,
"end": 1558.08,
"text": "acquire and redevelop the"
},
{
"start": 1558.08,
"end": 1560.36,
"text": "vacant six story, six by"
},
{
"start": 1560.36,
"end": 1563.04,
"text": "six development at 945"
},
{
"start": 1563.04,
"end": 1565.76,
"text": "Market Street, a 250,000"
},
{
"start": 1565.76,
"end": 1566.52,
"text": "square foot building"
},
{
"start": 1566.52,
"end": 1569.08,
"text": "completed in 2016 by"
},
{
"start": 1569.08,
"end": 1571.2,
"text": "Cyprus equities. Now IKEA's"
},
{
"start": 1571.2,
"end": 1572.4,
"text": "plan is to turn it into an"
},
{
"start": 1572.4,
"end": 1573.88,
"text": "urban mall to open in the"
},
{
"start": 1573.88,
"end": 1576.28,
"text": "fall of 2020 with a 70,000"
},
{
"start": 1576.28,
"end": 1577.96,
"text": "square foot IKEA store, as"
},
{
"start": 1577.96,
"end": 1579.2,
"text": "well as a mix of uses that"
},
{
"start": 1579.2,
"end": 1580.88,
"text": "include retail, residential"
},
{
"start": 1580.88,
"end": 1582.72,
"text": "hotel and flexible working"
},
{
"start": 1582.72,
"end": 1584.76,
"text": "spaces. The sellers were"
},
{
"start": 1584.76,
"end": 1586.28,
"text": "TMG partners and"
},
{
"start": 1586.28,
"end": 1587.52,
"text": "Alexandria real estate"
},
{
"start": 1587.52,
"end": 1589.04,
"text": "equities, which bought it"
},
{
"start": 1589.04,
"end": 1590.76,
"text": "from Cyprus last year for"
},
{
"start": 1590.76,
"end": 1593.08,
"text": "$179 million with plans to"
},
{
"start": 1593.08,
"end": 1594.72,
"text": "create a project for life"
},
{
"start": 1594.72,
"end": 1596.2,
"text": "science uses, which"
},
{
"start": 1596.24,
"end": 1597.4,
"text": "obviously didn't come to"
},
{
"start": 1597.4,
"end": 1599.36,
"text": "fruition. Now the project"
},
{
"start": 1599.36,
"end": 1600.52,
"text": "sitting empty for four"
},
{
"start": 1600.52,
"end": 1601.76,
"text": "years after it opened in"
},
{
"start": 1601.76,
"end": 1604.12,
"text": "2016 was originally"
},
{
"start": 1604.12,
"end": 1605.12,
"text": "intended to extend the"
},
{
"start": 1605.12,
"end": 1606.4,
"text": "Union Square shopping"
},
{
"start": 1606.4,
"end": 1607.96,
"text": "district south toward the"
},
{
"start": 1607.96,
"end": 1609.36,
"text": "newly opened offices for"
},
{
"start": 1609.36,
"end": 1610.96,
"text": "Twitter and Uber near the"
},
{
"start": 1610.96,
"end": 1612.88,
"text": "Civic Center Bart. Instead,"
},
{
"start": 1612.88,
"end": 1613.96,
"text": "it failed to attract a"
},
{
"start": 1613.96,
"end": 1615.88,
"text": "single tenant. Now IKEA's"
},
{
"start": 1615.88,
"end": 1617.08,
"text": "arrival marks a long"
},
{
"start": 1617.08,
"end": 1618.04,
"text": "awaited moment of"
},
{
"start": 1618.04,
"end": 1619.72,
"text": "redemption for the six by"
},
{
"start": 1619.72,
"end": 1621.4,
"text": "six mall and that mid"
},
{
"start": 1621.4,
"end": 1622.76,
"text": "market carter who's"
},
{
"start": 1622.76,
"end": 1625.44,
"text": "promised revitalization"
},
{
"start": 1625.44,
"end": 1626.68,
"text": "has started and stopped"
},
{
"start": 1627.24,
"end": 1628.24,
"text": "times over the past"
},
{
"start": 1628.24,
"end": 1630.16,
"text": "decade. Also in downtown"
},
{
"start": 1630.16,
"end": 1631.92,
"text": "San Francisco, developer"
},
{
"start": 1631.92,
"end": 1633.36,
"text": "Strata Investment Group was"
},
{
"start": 1633.36,
"end": 1634.4,
"text": "granted exclusive"
},
{
"start": 1634.4,
"end": 1635.72,
"text": "negotiating rights this"
},
{
"start": 1635.72,
"end": 1637.36,
"text": "month to develop two"
},
{
"start": 1637.4,
"end": 1639.64,
"text": "aging peers, peers 30 and"
},
{
"start": 1639.64,
"end": 1641.96,
"text": "32 in South Beach and a"
},
{
"start": 1641.96,
"end": 1643.24,
"text": "nearby parking lot owned"
},
{
"start": 1643.24,
"end": 1644.12,
"text": "by the Port of San"
},
{
"start": 1644.12,
"end": 1646.96,
"text": "Francisco into 850 new"
},
{
"start": 1646.96,
"end": 1650.24,
"text": "residential units, 376,000"
},
{
"start": 1650.24,
"end": 1651.52,
"text": "square feet of office"
},
{
"start": 1651.52,
"end": 1653.4,
"text": "space, a swimming pool and"
},
{
"start": 1653.4,
"end": 1654.76,
"text": "about three acres of"
},
{
"start": 1654.76,
"end": 1656.28,
"text": "publicly accessible open"
},
{
"start": 1656.28,
"end": 1657.8,
"text": "space. The Port"
},
{
"start": 1657.8,
"end": 1659.16,
"text": "Commission unanimously"
},
{
"start": 1659.16,
"end": 1660.36,
"text": "approved an exclusive"
},
{
"start": 1660.36,
"end": 1662.12,
"text": "negotiating agreement with"
},
{
"start": 1662.12,
"end": 1663.64,
"text": "Strata, which has teamed"
},
{
"start": 1663.64,
"end": 1664.68,
"text": "up with Dallas based"
},
{
"start": 1664.68,
"end": 1666.36,
"text": "trauma pro company and the"
},
{
"start": 1666.36,
"end": 1667.24,
"text": "commission must still"
},
{
"start": 1667.24,
"end": 1668.44,
"text": "approve a disposition and"
},
{
"start": 1668.44,
"end": 1669.8,
"text": "development development"
},
{
"start": 1669.8,
"end": 1671.04,
"text": "agreement later this year"
},
{
"start": 1671.28,
"end": 1673.68,
"text": "or in early 2021. Until"
},
{
"start": 1673.68,
"end": 1674.48,
"text": "then, the development"
},
{
"start": 1674.48,
"end": 1676.08,
"text": "team is required to engage"
},
{
"start": 1676.08,
"end": 1677.4,
"text": "with community and"
},
{
"start": 1677.4,
"end": 1678.92,
"text": "regulatory agencies to"
},
{
"start": 1678.92,
"end": 1680.36,
"text": "fine tune its proposal,"
},
{
"start": 1680.6,
"end": 1682.08,
"text": "which includes demolishing"
},
{
"start": 1682.08,
"end": 1683.88,
"text": "the two vacant peers and"
},
{
"start": 1683.88,
"end": 1685.32,
"text": "constructing two smaller"
},
{
"start": 1685.32,
"end": 1686.72,
"text": "peers that would support"
},
{
"start": 1686.72,
"end": 1688.76,
"text": "the new uses. Developers"
},
{
"start": 1688.76,
"end": 1689.76,
"text": "were asked to propose"
},
{
"start": 1689.76,
"end": 1691.04,
"text": "strategies to strengthen"
},
{
"start": 1691.04,
"end": 1692.32,
"text": "the seawall and construct"
},
{
"start": 1692.32,
"end": 1693.92,
"text": "flood protections for the"
},
{
"start": 1693.92,
"end": 1695.72,
"text": "peers. Strata and trauma"
},
{
"start": 1695.72,
"end": 1696.92,
"text": "crow promised to invest"
},
{
"start": 1696.92,
"end": 1699.12,
"text": "$369 million into"
},
{
"start": 1699.12,
"end": 1700.64,
"text": "rebuilding the peers to"
},
{
"start": 1700.64,
"end": 1702.04,
"text": "restore the deep draft"
},
{
"start": 1702.04,
"end": 1703.48,
"text": "of birth for active"
},
{
"start": 1703.48,
"end": 1705.64,
"text": "maritime use. Also about"
},
{
"start": 1705.64,
"end": 1707.44,
"text": "$325 million would be"
},
{
"start": 1707.44,
"end": 1708.64,
"text": "generated for the Port"
},
{
"start": 1708.64,
"end": 1710.2,
"text": "Commission from the ground"
},
{
"start": 1710.2,
"end": 1711.68,
"text": "leases, according to the"
},
{
"start": 1711.68,
"end": 1713.48,
"text": "proposal. Now the project"
},
{
"start": 1713.48,
"end": 1715.8,
"text": "represents $1.18 billion"
},
{
"start": 1715.8,
"end": 1716.64,
"text": "in total private"
},
{
"start": 1716.64,
"end": 1718.16,
"text": "investment. Now the two"
},
{
"start": 1718.2,
"end": 1719.8,
"text": "other qualified respondents"
},
{
"start": 1719.8,
"end": 1721.36,
"text": "that Strata beat out were"
},
{
"start": 1721.36,
"end": 1723.44,
"text": "Vornado Realty Trust and"
},
{
"start": 1723.44,
"end": 1725.56,
"text": "Tishman Spire. Of course,"
},
{
"start": 1725.56,
"end": 1726.64,
"text": "there are naysayers to"
},
{
"start": 1726.64,
"end": 1728.04,
"text": "the project with some"
},
{
"start": 1728.04,
"end": 1728.92,
"text": "opposing the outdoor"
},
{
"start": 1728.92,
"end": 1730.32,
"text": "swimming pool with access"
},
{
"start": 1730.32,
"end": 1731.56,
"text": "to the Chile Bay waters"
},
{
"start": 1731.84,
"end": 1733.96,
"text": "and the proposed 218 foot"
},
{
"start": 1733.96,
"end": 1735.0,
"text": "height of the residential"
},
{
"start": 1735.0,
"end": 1736.84,
"text": "towers, which exceed local"
},
{
"start": 1736.84,
"end": 1738.8,
"text": "zoning limits of 105 feet"
},
{
"start": 1739.08,
"end": 1740.44,
"text": "as the developers plan to"
},
{
"start": 1740.44,
"end": 1741.76,
"text": "use the state density"
},
{
"start": 1741.76,
"end": 1743.2,
"text": "bonus law to build"
},
{
"start": 1743.2,
"end": 1744.96,
"text": "higher. Now the port staff"
},
{
"start": 1744.96,
"end": 1746.48,
"text": "said that the legality of"
},
{
"start": 1746.48,
"end": 1747.6,
"text": "doing so is still being"
},
{
"start": 1747.6,
"end": 1749.04,
"text": "assessed while those"
},
{
"start": 1749.04,
"end": 1750.4,
"text": "complaining say that the"
},
{
"start": 1750.4,
"end": 1751.96,
"text": "two towers would create"
},
{
"start": 1751.96,
"end": 1753.56,
"text": "walls blocking the"
},
{
"start": 1753.56,
"end": 1755.28,
"text": "waterfront. Now the site"
},
{
"start": 1755.28,
"end": 1756.52,
"text": "across the Embarcadero"
},
{
"start": 1756.52,
"end": 1758.0,
"text": "from the piers is now"
},
{
"start": 1758.0,
"end": 1759.96,
"text": "home to a temporary 200"
},
{
"start": 1759.96,
"end": 1762.4,
"text": "bed homeless center heading"
},
{
"start": 1762.4,
"end": 1764.24,
"text": "east to the East Bay city"
},
{
"start": 1764.24,
"end": 1766.12,
"text": "of San Ramon. Along the"
},
{
"start": 1766.12,
"end": 1768.08,
"text": "680 freeway. It was"
},
{
"start": 1768.08,
"end": 1769.36,
"text": "announced this month that"
},
{
"start": 1769.36,
"end": 1770.76,
"text": "its city council approved"
},
{
"start": 1770.76,
"end": 1771.72,
"text": "the latest plans by"
},
{
"start": 1771.72,
"end": 1773.32,
"text": "Sunset Development Company"
},
{
"start": 1773.56,
"end": 1775.76,
"text": "led by Alex Marin Jr. To"
},
{
"start": 1775.76,
"end": 1778.0,
"text": "add 4,500 homes to its"
},
{
"start": 1778.0,
"end": 1779.48,
"text": "massive master plan"
},
{
"start": 1779.48,
"end": 1780.64,
"text": "Bishop branch business"
},
{
"start": 1780.64,
"end": 1782.28,
"text": "park in a section called"
},
{
"start": 1782.28,
"end": 1783.6,
"text": "City Walk, which will"
},
{
"start": 1783.6,
"end": 1785.24,
"text": "also include a previously"
},
{
"start": 1785.24,
"end": 1787.92,
"text": "announced 169 room hotel"
},
{
"start": 1788.2,
"end": 1790.4,
"text": "and 170,000 square feet"
},
{
"start": 1790.4,
"end": 1792.4,
"text": "of retail space. The homes"
},
{
"start": 1792.4,
"end": 1793.48,
"text": "will be built in five"
},
{
"start": 1793.48,
"end": 1795.24,
"text": "neighborhoods on 135"
},
{
"start": 1795.24,
"end": 1796.28,
"text": "acres that Sunset"
},
{
"start": 1796.28,
"end": 1797.56,
"text": "already owns with"
},
{
"start": 1797.56,
"end": 1798.64,
"text": "construction, hopefully"
},
{
"start": 1798.64,
"end": 1800.68,
"text": "starting in 2021 and"
},
{
"start": 1800.68,
"end": 1802.96,
"text": "first deliveries in 2023"
},
{
"start": 1803.16,
"end": 1804.72,
"text": "with full build out"
},
{
"start": 1804.72,
"end": 1806.64,
"text": "taking up to 27 years."
},
{
"start": 1807.04,
"end": 1808.96,
"text": "In 2018, Sunset initially"
},
{
"start": 1808.96,
"end": 1810.0,
"text": "opened city center with"
},
{
"start": 1810.0,
"end": 1811.44,
"text": "300,000 square feet of"
},
{
"start": 1811.44,
"end": 1813.36,
"text": "retail space on 15"
},
{
"start": 1813.36,
"end": 1815.24,
"text": "acres, which cost $300"
},
{
"start": 1815.24,
"end": 1816.64,
"text": "million to develop."
},
{
"start": 1817.76,
"end": 1818.72,
"text": "Now let's go down to"
},
{
"start": 1818.72,
"end": 1821.36,
"text": "San Diego where IQ HQ"
},
{
"start": 1821.4,
"end": 1823.0,
"text": "Inc, a premier life"
},
{
"start": 1823.0,
"end": 1824.12,
"text": "science, real estate"
},
{
"start": 1824.12,
"end": 1825.28,
"text": "development company"
},
{
"start": 1825.48,
"end": 1826.88,
"text": "completed the acquisition"
},
{
"start": 1826.88,
"end": 1828.88,
"text": "of an iconic development"
},
{
"start": 1828.88,
"end": 1830.28,
"text": "site along San Diego's"
},
{
"start": 1830.28,
"end": 1832.16,
"text": "waterfront. In addition,"
},
{
"start": 1832.32,
"end": 1834.12,
"text": "IQ HQ introduced a new"
},
{
"start": 1834.12,
"end": 1835.28,
"text": "brand to capture the"
},
{
"start": 1835.28,
"end": 1836.72,
"text": "significance of the site,"
},
{
"start": 1837.0,
"end": 1838.52,
"text": "the San Diego Research"
},
{
"start": 1838.52,
"end": 1839.52,
"text": "and Development"
},
{
"start": 1839.52,
"end": 1841.64,
"text": "District, the RAD, and"
},
{
"start": 1841.64,
"end": 1842.56,
"text": "announced the start of"
},
{
"start": 1842.56,
"end": 1844.2,
"text": "construction. Said"
},
{
"start": 1844.2,
"end": 1845.48,
"text": "Mayor Kevin Falconer,"
},
{
"start": 1845.68,
"end": 1846.4,
"text": "the research and"
},
{
"start": 1846.4,
"end": 1847.4,
"text": "development district will"
},
{
"start": 1847.4,
"end": 1848.72,
"text": "transform our waterfront"
},
{
"start": 1848.72,
"end": 1850.04,
"text": "and bring top tier life"
},
{
"start": 1850.04,
"end": 1851.04,
"text": "science companies to"
},
{
"start": 1851.04,
"end": 1853.2,
"text": "downtown. Entitled for"
},
{
"start": 1853.2,
"end": 1854.48,
"text": "new office, lab and"
},
{
"start": 1854.48,
"end": 1855.72,
"text": "support retail space,"
},
{
"start": 1856.0,
"end": 1857.4,
"text": "the RAD is situated on"
},
{
"start": 1857.4,
"end": 1858.6,
"text": "more than eight acres"
},
{
"start": 1858.6,
"end": 1860.04,
"text": "and occupies three entire"
},
{
"start": 1860.04,
"end": 1861.76,
"text": "city blocks representing"
},
{
"start": 1861.76,
"end": 1862.64,
"text": "the largest urban"
},
{
"start": 1862.64,
"end": 1863.6,
"text": "commercial waterfront"
},
{
"start": 1863.6,
"end": 1864.88,
"text": "site along California's"
},
{
"start": 1864.88,
"end": 1866.56,
"text": "Pacific coast. With"
},
{
"start": 1866.56,
"end": 1868.12,
"text": "entitlement secured and"
},
{
"start": 1868.12,
"end": 1869.6,
"text": "key foundation permits"
},
{
"start": 1869.6,
"end": 1871.92,
"text": "already in place, IQ HQ"
},
{
"start": 1871.92,
"end": 1873.04,
"text": "is breaking ground on the"
},
{
"start": 1873.04,
"end": 1873.8,
"text": "first phase of the"
},
{
"start": 1873.8,
"end": 1875.84,
"text": "project this month with"
},
{
"start": 1875.84,
"end": 1877.08,
"text": "completion of the initial"
},
{
"start": 1877.08,
"end": 1878.68,
"text": "phase anticipated in"
},
{
"start": 1878.68,
"end": 1881.12,
"text": "summer 2023. Tracy"
},
{
"start": 1881.12,
"end": 1883.2,
"text": "Murphy, president of IQ"
},
{
"start": 1883.2,
"end": 1884.44,
"text": "HQ, said that the"
},
{
"start": 1884.44,
"end": 1885.6,
"text": "research and development"
},
{
"start": 1885.6,
"end": 1886.76,
"text": "district is exciting on"
},
{
"start": 1886.76,
"end": 1888.4,
"text": "so many levels. Not"
},
{
"start": 1888.4,
"end": 1889.44,
"text": "only does it represent"
},
{
"start": 1889.44,
"end": 1890.6,
"text": "our first acquisition in"
},
{
"start": 1890.6,
"end": 1891.8,
"text": "the San Diego region,"
},
{
"start": 1892.0,
"end": 1893.92,
"text": "which IQ HQ is proud to"
},
{
"start": 1893.92,
"end": 1895.6,
"text": "call home, we also have"
},
{
"start": 1895.6,
"end": 1896.8,
"text": "an opportunity to create"
},
{
"start": 1896.8,
"end": 1898.0,
"text": "the first truly urban"
},
{
"start": 1898.0,
"end": 1899.0,
"text": "waterfront campus"
},
{
"start": 1899.24,
"end": 1900.16,
"text": "dedicated to the"
},
{
"start": 1900.16,
"end": 1901.12,
"text": "advancement of life"
},
{
"start": 1901.12,
"end": 1903.52,
"text": "sciences. With an 82%"
},
{
"start": 1903.52,
"end": 1904.76,
"text": "increase in life science"
},
{
"start": 1904.76,
"end": 1906.04,
"text": "employment over the last"
},
{
"start": 1906.04,
"end": 1907.72,
"text": "decade, San Diego is the"
},
{
"start": 1907.72,
"end": 1909.32,
"text": "third largest life science"
},
{
"start": 1909.32,
"end": 1910.96,
"text": "market in the U.S. and"
},
{
"start": 1910.96,
"end": 1911.84,
"text": "it has experienced a"
},
{
"start": 1911.84,
"end": 1912.92,
"text": "growing demand for new"
},
{
"start": 1912.92,
"end": 1914.32,
"text": "class A office and lab"
},
{
"start": 1914.32,
"end": 1916.28,
"text": "space. And for our"
},
{
"start": 1916.28,
"end": 1917.48,
"text": "last deal roundup"
},
{
"start": 1917.48,
"end": 1918.92,
"text": "news piece, staying in"
},
{
"start": 1918.92,
"end": 1920.84,
"text": "downtown San Diego, a"
},
{
"start": 1920.84,
"end": 1921.92,
"text": "group called the San"
},
{
"start": 1921.92,
"end": 1923.56,
"text": "Diego Padres development"
},
{
"start": 1923.56,
"end": 1924.92,
"text": "team, which includes"
},
{
"start": 1924.92,
"end": 1926.52,
"text": "partners Tishman Spire"
},
{
"start": 1926.68,
"end": 1928.0,
"text": "and Ascendant Capital"
},
{
"start": 1928.0,
"end": 1929.32,
"text": "Partners has won the"
},
{
"start": 1929.32,
"end": 1930.32,
"text": "competitive bidding"
},
{
"start": 1930.32,
"end": 1931.76,
"text": "process to transform"
},
{
"start": 1931.76,
"end": 1933.44,
"text": "Tailgate Park near"
},
{
"start": 1933.44,
"end": 1935.08,
"text": "Petco Park into a"
},
{
"start": 1935.08,
"end": 1936.36,
"text": "vibrant mixed use"
},
{
"start": 1936.36,
"end": 1937.8,
"text": "destination called East"
},
{
"start": 1937.8,
"end": 1939.44,
"text": "Village Quarter. Plans"
},
{
"start": 1939.44,
"end": 1940.56,
"text": "for the underutilized"
},
{
"start": 1940.56,
"end": 1941.96,
"text": "four block area in the"
},
{
"start": 1941.96,
"end": 1943.28,
"text": "East Village include"
},
{
"start": 1943.32,
"end": 1944.48,
"text": "office, housing,"
},
{
"start": 1944.68,
"end": 1946.16,
"text": "recreation and retail"
},
{
"start": 1946.16,
"end": 1947.76,
"text": "space. And the project"
},
{
"start": 1947.76,
"end": 1949.28,
"text": "is expected to revitalize"
},
{
"start": 1949.28,
"end": 1950.6,
"text": "the East Village and"
},
{
"start": 1950.6,
"end": 1952.2,
"text": "further enhance game days"
},
{
"start": 1952.24,
"end": 1953.88,
"text": "at Petco Park, the"
},
{
"start": 1953.88,
"end": 1954.84,
"text": "Padres baseball"
},
{
"start": 1954.84,
"end": 1956.56,
"text": "stadium. The district"
},
{
"start": 1956.56,
"end": 1957.52,
"text": "consists of the four"
},
{
"start": 1957.52,
"end": 1958.96,
"text": "blocks between K Street"
},
{
"start": 1959.0,
"end": 1960.6,
"text": "Imperial Avenue, 12th"
},
{
"start": 1960.6,
"end": 1961.8,
"text": "Avenue and 14th"
},
{
"start": 1961.8,
"end": 1963.2,
"text": "Street. The Padres"
},
{
"start": 1963.2,
"end": 1964.12,
"text": "development team is"
},
{
"start": 1964.12,
"end": 1965.28,
"text": "comprised of local and"
},
{
"start": 1965.28,
"end": 1966.36,
"text": "international leaders"
},
{
"start": 1966.52,
"end": 1967.36,
"text": "that specialize in"
},
{
"start": 1967.36,
"end": 1969.88,
"text": "sports, transit centered"
},
{
"start": 1969.88,
"end": 1970.6,
"text": "and mixed use"
},
{
"start": 1970.6,
"end": 1971.84,
"text": "development, urban"
},
{
"start": 1971.84,
"end": 1973.56,
"text": "design and finance. The"
},
{
"start": 1973.56,
"end": 1974.68,
"text": "team's vision includes"
},
{
"start": 1974.68,
"end": 1976.32,
"text": "the creation of a 1600"
},
{
"start": 1976.32,
"end": 1977.72,
"text": "space parking structure,"
},
{
"start": 1977.96,
"end": 1979.84,
"text": "600 more parking spaces"
},
{
"start": 1979.84,
"end": 1980.92,
"text": "than currently exist on"
},
{
"start": 1980.92,
"end": 1982.24,
"text": "the site today, which"
},
{
"start": 1982.24,
"end": 1983.4,
"text": "will protect the long"
},
{
"start": 1983.4,
"end": 1984.4,
"text": "term parking needs of"
},
{
"start": 1984.4,
"end": 1985.96,
"text": "San Diegans attending"
},
{
"start": 1985.96,
"end": 1987.28,
"text": "Padres games and other"
},
{
"start": 1987.28,
"end": 1988.44,
"text": "events at the city owned"
},
{
"start": 1988.44,
"end": 1990.2,
"text": "Petco Park. Tishman"
},
{
"start": 1990.2,
"end": 1991.68,
"text": "Spire president and CEO"
},
{
"start": 1991.72,
"end": 1994.0,
"text": "and CEO Rob Spire said"
},
{
"start": 1994.0,
"end": 1995.4,
"text": "that San Diego is one of"
},
{
"start": 1995.4,
"end": 1996.24,
"text": "America's favorite"
},
{
"start": 1996.24,
"end": 1997.8,
"text": "places to live, work"
},
{
"start": 1997.8,
"end": 1999.28,
"text": "and discover. And that is"
},
{
"start": 1999.28,
"end": 2000.76,
"text": "exactly what this project"
},
{
"start": 2000.76,
"end": 2002.4,
"text": "is about. East Village"
},
{
"start": 2002.4,
"end": 2003.36,
"text": "Quarter represents an"
},
{
"start": 2003.36,
"end": 2004.8,
"text": "extraordinary opportunity"
},
{
"start": 2004.8,
"end": 2005.84,
"text": "for Tishman Spire to"
},
{
"start": 2005.84,
"end": 2007.44,
"text": "partner with the Padres"
},
{
"start": 2007.44,
"end": 2008.56,
"text": "and Ascendant Capital"
},
{
"start": 2008.56,
"end": 2009.76,
"text": "partners to create a"
},
{
"start": 2009.76,
"end": 2011.44,
"text": "dynamic, inclusive, mixed"
},
{
"start": 2011.44,
"end": 2012.72,
"text": "use environment that"
},
{
"start": 2012.72,
"end": 2013.76,
"text": "will provide vital"
},
{
"start": 2013.76,
"end": 2015.08,
"text": "housing and substantial"
},
{
"start": 2015.08,
"end": 2016.4,
"text": "open space in an urban"
},
{
"start": 2016.4,
"end": 2018.12,
"text": "setting. It will also"
},
{
"start": 2018.12,
"end": 2019.36,
"text": "host the city's best"
},
{
"start": 2019.4,
"end": 2020.96,
"text": "office facilities where"
},
{
"start": 2021.0,
"end": 2022.76,
"text": "innovative companies and"
},
{
"start": 2022.76,
"end": 2023.76,
"text": "their employees can"
},
{
"start": 2023.76,
"end": 2026.6,
"text": "thrive. Okay, good to"
},
{
"start": 2026.6,
"end": 2028.16,
"text": "end on an optimistic"
},
{
"start": 2028.2,
"end": 2030.36,
"text": "positive note. And that"
},
{
"start": 2030.36,
"end": 2031.36,
"text": "is it for our show"
},
{
"start": 2031.36,
"end": 2032.72,
"text": "today. We hope you"
},
{
"start": 2032.72,
"end": 2033.8,
"text": "enjoyed it and we"
},
{
"start": 2033.8,
"end": 2035.4,
"text": "appreciate any feedback"
},
{
"start": 2035.4,
"end": 2036.4,
"text": "on any of the new"
},
{
"start": 2036.4,
"end": 2037.96,
"text": "stories, anything else"
},
{
"start": 2038.0,
"end": 2039.44,
"text": "you heard in the show. So"
},
{
"start": 2039.44,
"end": 2040.68,
"text": "please email me those"
},
{
"start": 2040.68,
"end": 2042.28,
"text": "comments at sbloom at"
},
{
"start": 2042.28,
"end": 2044.6,
"text": "rent tv.com. Let me"
},
{
"start": 2044.6,
"end": 2045.28,
"text": "again thank our"
},
{
"start": 2045.28,
"end": 2046.64,
"text": "sponsors Capital Rivers"
},
{
"start": 2046.64,
"end": 2048.16,
"text": "Commercial and Redwood"
},
{
"start": 2048.16,
"end": 2048.96,
"text": "Mortgage for their"
},
{
"start": 2048.96,
"end": 2050.68,
"text": "support. And until our"
},
{
"start": 2050.68,
"end": 2052.44,
"text": "next podcast, this is"
},
{
"start": 2052.44,
"end": 2053.48,
"text": "Steve Bloom from"
},
{
"start": 2053.48,
"end": 2055.48,
"text": "Rent TV wishing you your"
},
{
"start": 2055.48,
"end": 2056.92,
"text": "clients and properties"
},
{
"start": 2057.08,
"end": 2058.44,
"text": "strong profits and"
},
{
"start": 2058.44,
"end": 2059.28,
"text": "prosperity."
}
]
}