Bedford, NH - NOTE: While NAI Norwood Group focuses on commercial real estate, our affiliate firm Real Living The Norwood Group is a 100% residential real estate brokerage operation. As the two markets are so linked, we felt a midyear review of the housing market would be helpful to all property owners. – Editor.
Nationally the housing market is heaving through the challenges of a recovery. We all knew the upswing would not be an easy climb and we are seeing that now. CNN Money discussed on August 5th that home ownership dropped to its lowest levels since 1965. We are currently as a nation at 65.9% as opposed to 2004 when home ownership was at 69.2%. As more people nationally flock to the rental market, CNN Money also reported in July that the national foreclosure rate plummeted 29% compared to this same time last year. What are we to make of these conflicting reports locally?
New Hampshire has always been unique. Through this downturn, despite the State’s budget gap, there is positive news. The state’s unemployment numbers have been hovering around 5% in 2011 while the rate of the nation is nearly twice that. Along with our strong unemployment numbers the state’s residential market has stabilized. While the number of homes sold declined over the first two quarters of this year compared to last, the average sales price of these homes were up marginally. The numbers vary largely throughout the state. The Seacoast area is recovering quicker than the northern part of the State; the lower to mid range homes are recovering more quickly than larger homes.
On foreclosures the Granite State has given different results in 2011 than the national figures. While CNN was reporting national foreclosures being down, from 2010 to 2011, New Hampshire saw an increase of foreclosures in the first two quarters of 20%. Conversely the State also saw a decrease in the number of foreclosure notices dropped over that same period, giving thought that the system is working through and that the rest of the year will see a decline in these numbers.
In addition we have seen the number of conventional loans (versus, FHA, VA etc) increase, denoting that more people are tapping into traditional sources. This is encouraging because this means more people are “financeable” through traditional lending means which increases turnover time and helps with more buyers in the market.
The forecast moving forward appears to be the same to slightly positive. What the numbers do not describe are the number of people actively searching, attending open houses and putting offers in. As recently described by one Real Living The Norwood Group team member, “July was the busiest month we have had since 2006.” People are still out searching for homes at good prices with great interest rates, trying to capitalize now, versus the unknown of the future.
In the end only time will tell, Libya, the Debt Ceiling and the Tsunami have jittered a recovering national economy. However through this all, the New Hampshire market is stabilizing and as the NAI Norwood Group team will tell, there are job creators out there adding new space, which is a good sign moving forward.
Ed Buczynski
Senior Vice President
Real Living The Norwood Group
NEW YORK, NY, June 22, 2011 — C-III Capital Partners LLC (C-III) announced today that it has entered into a definitive agreement to acquire NAI Global, the largest and premier network of independent commercial real estate firms worldwide. C-III is led by Andrew L. Farkas, who founded and was Chairman and CEO of Insignia Financial Group, Inc. (NYSE:IFS). NAI Global will continue to operate as a separate company under its current management following the acquisition.
NAI manages a network of commercial real estate firms comprising 5,000 professionals and 350 offices in the US and 55 countries throughout the world. NAI’s network members provide a full spectrum of corporate, financial, technology and project management services.
“C-III plans to use its asset base, along with strategic acquisitions such as NAI, to create a fully diversified commercial real estate services company,” said Mr. Farkas. “This is the strategy that was successful for Insignia. C-III is led by the same team that built Insignia, and with C-III’s significantly larger asset base, I believe C-III can substantially exceed Insignia’s success,” concluded Mr. Farkas. At its height, Insignia managed $12.5 billion in assets, while today C-III’s portfolio approximates $150 billion in assets. Insignia was one of the largest commercial real estate services companies in the world when it merged with CB Richard Ellis in 2003.
C-III commenced operations with the purchase of Centerline Capital Group’s institutional real estate debt fund management and commercial mortgage loan servicing businesses in March 2010. Since that time, C-III has successfully launched mortgage origination, investment sales and title insurance businesses from scratch, and expanded its principal investment, loan origination fund management and primary and special loan servicing businesses.
“Today’s agreement represents a tremendous opportunity for NAI and our members,” said Gerald C. Finn, Chairman of NAI Global. “By teaming up with Andrew Farkas, one of the world’s leading real estate businessmen, we expect NAI will be able to significantly grow its service offerings and present new opportunities to our members.”
“We have built the world's leading commercial real estate network, but we now believe it is time to take the enterprise to a new level and add even greater value to our members and our collective corporate and investment clients. The combination with C-III will provide a depth of resources, talent and tools from which we can draw upon to accelerate our growth,” noted Jeffrey M. Finn, President and CEO of NAI Global. “Rarely do you find partners so perfectly strategically aligned as NAI Global and C-III. This is a natural fit and extremely exciting news for the industry.”
The transaction is expected to close in the third quarter of 2011. Financial terms of the transaction were not disclosed.
About C-III Capital Partners
C-III Capital Partners LLC is a leading commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management and principal investment. The company’s principal place of business is located in Irving, TX, and it has additional offices in New York, NY, Greenville, SC and Nashville, TN.
C-III Asset Management LLC, a wholly-owned subsidiary of C-III Capital Partners, is a highly rated servicer (primary and special) of commercial real estate loans. Its clients include issuers of commercial mortgage-backed securities (CMBS) and collateralized debt obligations (CDOs), institutional lenders and other investors. C-III Asset Management is the primary servicer for approximately $20 billion and the named special servicer for approximately $127 billion of commercial real estate loans. C-III Asset Management is rated CPS 2- by Fitch and Above Average by Standard and Poor's as a primary servicer, and is one of the highest rated special servicers in the industry with ratings of CSS 1- by Fitch and Strong by Standard and Poor's.
About NAI Norwood Group
NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms. Through this network of 355 offices in 55 countries, our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603)668-7000 or 100 Market Street Suite 200, Portsmouth, NH 03801 (603) 431-3001.
Bedford, NH - NOTE: While NAI Norwood Group focuses on commercial real estate, our affiliate firm Real Living The Norwood Group is a 100% residential real estate brokerage operation. As the two markets are so linked, we felt a midyear review of the housing market would be helpful to all property owners. – Editor.
