In case you missed it: New government regulations and a LEED-certified hotel chain
Jan 21, 2013
Investments and heightened regulation in real estate led the news last week. A billionaire confirmed a trend proving REITs are a sound investment in 2013, and the Consumer Financial Protection Bureau levied its first rules regarding home mortgages. Read more below:
Forbes: “Why Billionaire Investor Ron Baron Likes Commercial Real Estate and Private Equity Stocks”
In an interview with Forbes, billionaire investor Ron Baron reveals the unlikely way he came to invest in commercial real estate and why his decision paid off. He shares how his firm, Baron Capital Group, branched out from its traditional investment niche to try its hand at REITs in the midst of the housing market collapse. Jump over to Forbes for insights into long-term real estate investment versus traditional stock options.
NBC News: “Consumer watchdog tightens mortgage lending rules on banks”
Five years after the housing market collapsed, a government watchdog is taking steps to ensure another meltdown doesn’t occur among mortgage lenders. The Consumer Financial Protection Bureau has begun laying down new, stringent rules that force banks to verify borrowers’ ability to repay a loan before granting them a mortgage. How the strict regulations will affect the housing industry and real estate development is yet to be seen, but the bureau assures critics that new lines of credit will not dry up and the recovery will continue. Head to NBC News for more.
Wall Street Journal: “Hong Kong’s Real-Estate Boom Conjures a Scary Development”
The boom in Hong Kong’s real estate market is driving out the city’s ghosts — and those who profit from them. Until recently, superstitious locals shied away from purchasing or renting hongza — Cantonese for haunted houses — giving less credulous entrepreneurs the chance to purchase unwanted properties for cheap and sell or rent them to expatriates. However, the increasing demand for housing means these properties are now selling as fast as the rest of the city’s homes. Spirit away to the Wall Street Journal for the full story.
National Real Estate Investor: “First Independent LEED Hotel Brand Gets $1B Funding Plan”
Environmentally conscious travelers have a new ally in the lodging market. Adoba Eco Hotels, the first independent hotel to chain to operate exclusively LEED-certified hotels, recently received its first round of financing, to the tune of $75 million, through a deal with M1T Partners. The firm approved a five-year, $1 billion financing plan to design, build, and convert hotels for LEED certification to help accelerate Adoba’s national expansion. Flip over to NREI to see what’s next for the green hotel chain.
What stories did we miss last week? Let us know in a comment below.
Author: Raymond T. Cirz