Browsing by Subject "Real estate"

Now showing 1 - 5 of 5

Does credit supply affect real estate cap rates?
(2023-04-13) Priest, Alex; Griffin, John M. (John Meredith), 1970-; Starks, Laura T; Kruger, Samuel; Chan, Eric
In this dissertation, I examine the relationship between availability of credit and commercial real estate cap rates. Understanding whether and how the supply of credit affects property cap rates has important implications for investors and asset values. In the first chapter, I introduce background information about the commercial real estate industry, discuss related research and present the primary hypotheses. Finally, I discuss the data that is used and overview some summary statistics about cap rates. In the second chapter, I explore the relationship between credit supply and real estate cap rates. I first document some stylized facts about the commercial real estate lending industry and find significant differences in credit markets across different local real estate markets. I provide cross-sectional analysis and show that proxies for greater availability of credit are associated with reduced cap rates. To causally identify the effect, I utilize two research designs: firm-wide lender credit suspensions and historical concentration of depository locations. I find evidence consistent with credit supply impacting cap rates through non-fundamental valuation effects. In the third chapter, I study lender incentives and underwriting behavior. The findings are consistent with lenders loosening underwriting standards to compete for loan origination in a "race-to-the-bottom". Finally, in the fourth chapter I conclude and discuss opportunities for additional research.
¡Hasta la utopía siempre! : conflicting utopian ideologies in Havana’s late socialist housing market
(2012-12) Genova, Jared Michael; Sletto, Bjørn; Kahn, Terry
Through the broader contextualization of ethnographic fieldwork in Havana’s newly reformed housing market, this study theorizes the Cuban late socialist condition through a lens of utopian ideological conflict. A popular narrative of free market utopia has emerged in the face of the state’s recalcitrant ideology of state socialism. The popular narrative is reproduced through growth in the informal economy, while the socialist utopian narrative is maintained by the ubiquity of its bureaucratic apparatus. Inspired by postmodern theorist Jean Baudrillard’s Simulacra and Simulation (1994), this thesis theorizes the Cuban state narrative as an ideological simulation, supported only through its strongest simulacrum – the government bureaucracy. Previous work on Cuba has cited the importance of access to government-purchased goods to fuel the informal economy and individual wealth accumulation. This study highlights the reproduction of a narrative of free market utopia in the desire for access to transactions as intermediaries, particularly as the deals increase in hard currency value. The passage of Decreto-Ley Number 288, which authorized the buying and selling of homes has served to rapidly capitalize the market and encourage further development of an informal network of brokers. Greater economic hybridization in the housing sector, among others, is gradually eroding the totalizing nature of the state’s socialist utopia.
The lucky ones : Blacks in East Austin turning profit from gentrification
(2015-05) Turner, Lillian Paige; Bock, Mary Angela; Minutaglio, Bill
East Austin is no stranger to rapid and ever-present gentrification. In the last several decades, the east side has seen not only a change in infrastructure but has also suffered from a change in cultural diversity, as many of the area's long time minority residents are being systematically pushed out of the neighborhoods they have called home. East Austin’s black residents are among the most displaced in the area and many have been victim of financial limitations. However, some black locals have been able to profit from the gentrification on their own terms -- selling their homes, renting out their properties or building wealth by holding onto increasingly valuable land. This report features some of the lucky few who have been able to take advantage of the explosive real estate boom amidst the cultural unrest.
Measuring the effects of Austin’s Transit-Oriented Development zoning districts through multi-family property analysis
(2020-05-08) Lantelme, Cody Jack; Wegmann, Jake; Oden, Michael
Transit Oriented Development (TOD) has become a popular technique for cities that are seeking to supplement public transportation investments with dense developments that serve to improve tax assessment values and increase ridership. The literature on TOD provides considerable insights on TOD implementation and value capture techniques, as well as numerous case studies that show the effects of TOD projects in other major cities. The literature also reveals problems with TOD implementation and the tendency of planners to overestimate the ability of TOD zoning to spur dense development and increase property values. Based upon a review of the successes and limitations of TOD strategies, this report assesses multi-family apartment communities near each of the three TOD station area regulating plans for the Red Line Commuter Rail in Austin, Texas. Evaluation of the data on multi-family rental housing indicates that there is not a significant rent or occupancy premium associated with newer properties near Red Line stations. In one of the three cases studied, older properties did benefit from the accessibility and infrastructure improvements associated with transit and TOD infrastructure improvements based on rent and rent per square foot premiums, although more research will be needed to determine whether this observation is coincidence or a trend. As transit infrastructure in Austin is improved, this study will provide a baseline for measuring the success of properties near stations. It is possible that transit infrastructure improvements will result in rent and occupancy premiums for station area properties in the future.
A real estate crowdfunding model for social impact : The Alley Flat Initiative in Austin, Texas
(2016-05) Latorre, Jose Vicente; Wegmann, Jake; Stiphany, Kristine Marie
The signing of the Jumpstart Our Businesses (JOBS) Act on April 5th, 2012 has unleashed the potential of crowdfunding for private ventures in the US. The changes on regulation imposed by the JOBS Act and the development of online platforms for crowdfunding have revealed the potential of crowdfunding as an alternative funding mechanism for projects in diverse industries, including real estate. The real estate crowdfunding sector will continue to grow, especially since the implementation of Title III of the Jobs Act in October 2015, which allows for non-accredited investors to participate in the equity crowdfunding industry. This research project studies the potential of real estate crowdfunding as an alternative financing option for projects related to the equitable and sustainable development of urban communities. Specifically, the study is centered on the financing of “reasonably affordable” rental ADUs on legacy homeowner properties in East Austin – a housing infill model proposed by The Alley Flat Initiative. City of Austin ordinances promoting the development of ADUs, approved in November 2015, and an affordability crisis connected to rapid growth of the city make the study of financing alternatives for affordable ADUs relevant and necessary. Findings reveal that the real estate equity and peer-to-peer lending crowdfunding models, at the time of study, do not offer a convincing alternative for legacy homeowners to pursue the development of ADUs in their properties. Major limitations stand in the way of a crowdfunded Alley Flat project. However, the research presents recommendations that could contribute to more attainable models of crowdfunding financing for individual homeowners.