Latest: LAX upgrade plan, market for kitset homes toughens, apartment blocks at the beach, Swedish deal at 7%, disclosure lacking, post-mall California.
13 December 2000
A comprehensive master development plan for Los Angeles International Airport and access to it has been put out for 180 days of submissions by LA World Airports, a division of the City of Los Angeles which covers four airports. LA International was last upgraded for the 1984 Olympics to take 40 million passengers, but handled 65 million this year. Plans include up to $US3 billion for an airport expressway, a ring road taking passengers straight to a new western terminal, Metrorail green line extension to that terminal, and a people mover to take people from carparks to terminals. Go to External links/US, property news for the airport’s website.
KIT Manufacturing Co of Long Beach, California, dropped its manufactured-homes earnings by 52% for the October fourth quarter and fell 30% for the whole year. Who to blame? Industry-wide excess inventory, lenders’ tightened credit standards and rising interest rates, says the chairman. The company also sells recreational vehicles, and those sales also crashed. The company lost just over $US1 million on $US8.5 million sales for the quarter, and came out just under square on $US48 million sales for the year.
Camden Property Trust of Houston has started building a $US120 million, 538-unit multi-family apartment development, The Park at Harbour View, at Long Beach, California. It will have two nine-storey towers, four of four storeys, 9ft ceilings (2.74m), a fitness centre, two swimming pools, 2300mÂ² of shops and 1440 parking spaces. Future plans include an adjoining highrise condominium and a hotel. Camden has an option on three more residential projects in San Diego worth $US124 million. It operates 145 properties containing more than 51,000 apartments.
12 December 2000
Drott AB of Sweden, one of Europe’s largest publicly traded real estate companies, has bought Fastighets AB Ragne, owner of 26 MalmÃ¶ properties, giving it 889 apartments in 64,000mÂ² and 38,000mÂ² of office for 750 million Swedish krona ($NZ183.3 million) at an average 7333 krona/mÂ² ($NZ1792/mÂ² ), giving a 7% yield based on rents.
The American business wires announced that KWI Property Fund I bought three highrises in Los Angeles containing 53,500mÂ². We get told often enough we have a cowboy stockmarket in New Zealand, so I’ve fired some questions off to the company to ascertain whether they’re even worse in the US wild west. The buildings on Hollywood and Wilshire Boulevards are 11 storeys (plus separate 6-storey parking), 18 (including 7 parking) and 16 (plus 6 parking), which I’d regard as relatively short over there. Some of the missing detail: the price, funding method, initial yield. Kennedy-Wilson International was previously a residential auctionhouse, which has grown into a major commercial brokerage, including Jones Lang Wootton California, bought from the merged Jones Lang LaSalle, and established a $US250 million fund to buy mostly suburban offices.
Long Beach Plaza in California is getting a remake. It covers eight blocks, has an enclosed mall which was opened in 1982 and shut last year, and demolition began on Monday to make way for CityPlace, an art deco creation which will bring back the street grid and open in early 2002 with 44,000mÂ² of shops, 328 flats, a 138-suite hotel and 2900 parking spaces. “By reintroducing the city street grid and placing ground-level retail below housing units, we will be creating a new urban village in downtown Long Beach,” said the senior vice-president of development for Developers Diversified Realty Corp, Eric Mallory. DDR develops and invests in shopping centres, and has 208 of them covering 4.6 million mÂ² in 40 states. Its partners in the joint venture are a Prudential Insurance division and Coventry Real Estate. Designers were Jerde Partnership, of Venice, California, whose work includes Third Street Promenade in Santa Monica, CityWalk in Universal City and Horton Plaza in San Diego.