What a Pair
Pamela Anderson’s plans to redevelop a parcel of Vancouver, B.C., oceanfront property in partnership with retired NHL star Geoff Courtnall are on indefinite hold until the economy recovers, Courtnall tells Canada.com. Original plans by the dynamic development duo called for an 83-unit, über-eco-friendly condo development to begin construction a year ago, but the collapse of the financial markets has made the project unviable thus far. The 2-hectare parcel includes land where Anderson’s family once operated a holiday camp, and the actress is anxious to get the development back on track, Courtnall says, adding that the project is not being abandoned or scaled down. “I think Pam’s biggest thing is she really wants to do something there, and it’s very hard for her to be patient because she wants to get going on it right away,” Courtnall told Canada.com. “She has wanted us to start for some time, but she now understands where we are at in this market.”
Rags to Riches
Some of New York City’s homeless families are literally getting a new lease on life, moving into luxury apartments in Brooklyn once intended for sale as condominiums. The units boast granite countertops, terraces, marble bathrooms, and walk-in closets. They were originally priced out at $350,000 a piece. Developer Avi Shriki tells Newsday that he was forced to go to Plan B when the market tanked—he consequently signed a 10-year deal with the Bushwick Economic Development Group to turn the building into a shelter. In return, the city is paying approximately $2,700 in monthly rent for the units, a portion of which is diverted to social services such as job counseling.
Give and Take
Who says concessions last forever? Not Allen Matkins, who suggested on his Real Estate Jukebox blog this month that property managers include a right to “buy-back” concessions from residents for an agreed discounted value. Such a strategy would enable instant improvements to NOI and consequently provide uplift to asset value and cap rates. Matkins suggests including a buyback clause in all new leases and in amendments to leases that already contain financial concessions. “Doing so gives the landlord a way to increase NOI and the ultimate selling price of the asset and… it gives the tenant a cash equivalent to the concession… it could be a win-win strategy for both the landlord and the tenant," he adds.
Editor’s note: Send your offbeat multifamily news leads to [email protected].
