The road is a switch back and we had the car parked right above him on the other side of the brush initially!

E360 attended our first Fiabci USA meeting in April 2012. Fiabci is the International Real Estate Federation. We received a warm welcome being hosted in Miami, Florida. The agenda for this meeting was focused on the real estate development frontier. E360 has a particular interest and coverage in frontier markets highlighted in our blog
back in July of 2011.

In case you missed it we took notes on some of the most relevant topics of the Spring Symposium as it relates to our business objectives. One such topic was highlighted by the presenter, Jason Dallara, from the U.S. State Department. He discussed challenges and opportunities for
international development organizations from his global real estate portfolio perspective based on 285 embassies and consulates in 180 countries. They have 41
developments under construction. Here is a summarized list his list of his top global development challenges and opportunities:

Challenges

1. lack of public info
2. fee simple ownership
3. thin markets
4. valuation process

Opportunities

1. State gets to reinvest their proceeds into
   future residential real estate portfolio
2. Strategic advantage’s with market shifts,
   currency exchange rates and location where capital values are low relative to
   lease rates
3. Opportunities in time horizon is long

With E360 being entrenched in 12 countries we have exhibited a similar experience with these  challenges. Figuring out who owns the land can be long process and may never be completely figured out. In some cases the opportunity to own land can be limited only to a country’s’ citizens. Demand can be thin where locations are still developing the proper infrastructure. Finally, valuation is virtually always a challenge in frontier markets where there are concerns about data quality.

Anna Nadgrodkiewicz, Center for International Private Enterprise (CIPE), spoke about property rights and a new international property market score card. The main focus of CIPE is on anti-corruption and why property rights matter. Nadgrodkiewicz noted that property rights matter because they support the market base of the economy, enable investment and a framework for entrepreneurial spirit. An additional core value of property rights is to get a loan. Later in her
presentations she highlighted the new international property market score card the CIPE supports and makes accessible on their website. Finally, she discussed
their major focus on trying to get countries to computerize land records.

Robin Rajack, World Bank Latin America and the Caribbean region, discussed urban land planning policy effects on land markets and spatial forms. Rajack so accurately described this market region as obscure and ambiguous. This market characteristic was a common theme between the U.S. State Department and World Bank for frontier markets. Rajack noted the Latin American and Caribbean cities based in developing countries will triple from 200,000 km in 2000 to more than 600,000 km by 2030, while their population doubles, which set the agenda for public policy. Urban expansion is being largely driven by income growth and population drives spatial expansion He noted the World banks interests in defining policies that allow formal land supply to be responsive to effective demand of households and firms. Land use regulation can increase costs to move and thereby increase cost of land and limit the market. Finally, an interesting metric Rajack brought up was how “land affordability” is measured internationally by average land price equaling less than 3 years of annual income.

CBRE came to the symposium with the intriguing topic called, Where Institutional Capital Investment Happening in Latin America and Caribbean. These guys had a very strong pulse on institutional capital flows for the region. Capital investment in the region has significantly increased in the last 10 years. Smaller institutional deals ranged from $10-20 million with an ideal of $50 million from REITS and pension funds. They noted strong institutional interest in Brazil, Chile & Mexico (México to a lesser extent in the last couple of years). Secondary hot capital markets – Colombia, Costa Rica, Panama and Peru. Brazil is the largest investment market. Brazil is now getting to par of London and Manhattan and losing competitiveness. They are not seeing the foreign investment today as it did in the past due to policy risk. Brazil has indicated stable inflation with Sao Paulo and Rio reported as strongest regions. Mexico is the smallest with huge expected growth rates in the next 5 years. Mexico City has remained very resilient. They have more office product under construction right now than any other city in the region. Mexico City office space is transacted in US dollars. Argentine lease law is inhibiting their market from getting institutional interest. Colombia received most capital investment for new development, non-resell. Colombia has Sam Zell investing which brings stronger awareness to inventory. Investors focused on new development compared to resell. Puerto Rico has been very quiet. The other regions don’t have the stock of $50M+ for institutional interest. They are partnering with locals to maintain and own property. Chile’s office product is the only country’s primary transaction of interest. Peru is the new emerging market but not a lot of product available. Leases are in US dollars so no currency exposure. Costa Rica has tremendous amount of back office space. Financing is available. Hotel investor interest is focused on offerings with limited services and repositioning opportunities. The Westin and low economy
hotels are examples of recent capital investment interest. Costa Rica’s smaller market keeps the institutional awareness limited which is driving many opportunist private investors. Panama’s economy is being driven by 10.5% GDP and infrastructure investment. There are concerns of over developed residential
and urban hotel product. Back office is the market opportunity. Cap rates range between 9-11% with financing between 6-7%. Miami is gateway to the
Americas.  The Chinese are the largest investors in Latin America. Privatization and deregulation have been supporting progress in the Latin America and Caribbean region the most.

Overall, we thought the Fiabci USA symposium covered some very relevant and insightful topics. The speakers were very high caliber. We had such a great time that we also decided to become Fiabci members. We are really looking forward to attending future Fiabci conferences.

Dottie Herman

Q1 – What is Title insurance?

A – This is an insurance policy that insures against errors in the title search, essentially guaranteeing you and your lender’s financial interest in the property. It checks for any defects, liens or encumbrances on the property that may affect the rights of ownership, possession or use of the property. It is issued after a complete examination of the public records. It also insures against such things as forgery, fraud, missing heirs or divorce actions. Keep in mind that the required title insurance protects the lender. You may want to take out an owner’s title insurance to protect yourself. You should consult with a competent, experienced real estate attorney regarding this.

A – Welcome to our profession and congratulations on being so thoughtful about the launch of what will hopefully be a very successful career path for you. As ours is a relationship business, it is most important for you to reach out to your spheres of influence and establish yourself as their resource for everything real estate. It is very important for you to learn your product and keep on top of the data. The more information you have, the better. Once you have established credibility and start selling, you’re on your way to creating customer loyalty that will  most likely spread. Remember, you have to ask for business and produce results. Keep investing in yourself and in your business. Good luck and keep in touch to let us know how you’re progressing.

A – Quality condos in Midtown Manhattan are in great demand. If you plan to do the leasing on your own, you should request the Leasing Package Requirements from your building’s Managing Agent. Check to see if there are any special House Rules for Renters and what fees are involved. Alternatively, hiring a Real Estate Professional may prove to be more expeditious. Your Broker should be well acquainted with your condo and can help you procure a creditworthy, qualified tenant in a timely fashion. If you need our help in finding a Midtown Rental Specialist, we can assist you.

A - Most mortgage banks use a Fico score.  This score can be purchased at myfico.  Consumers can buy their Trans Union and Equifax Fico scores but cannot buy an Experian Fico score.  Experian does not allow myfico to use the information updated on their bureau reports in the sale of scores to consumers.  If both the Trans Union and Equifax Fico scores are above a 740 the consumer should be able to enjoy the best rates based on the credit score qualification of loan approval.  Pulling your own credit reports at myfico will not hurt your credit scores.

Port of Los Angeles & Long Beach

The Los Angeles Harbor Commission this week unanimously adopted a five-year strategic plan for the Port of Los Angeles for 2012-2017.

The plan focuses on three key result areas, or KRAs – competitive operations, strong relationships and financial strength.

It also maps out the Port’s priorities, objectives and various initiatives for developing infrastructure, enhancing overall competitiveness, growing market share, optimizing land use, advancing maritime technologies and sustainability efforts, and maintaining the Port’s top ranking as the nation’s trade gateway to the Pacific Rim.

Los Angeles Mayor Antonio Villaraigosa

“This plan is a blueprint for responsible growth and job creation that will guide us toward maintaining our competitive advantage as the nation’s premier trade gateway,” said Los Angeles Mayor Antonio Villaraigosa.  “It is this kind of strategic thinking that helped the Port become one of the nation’s leading economic engines, and meeting the strategic plan’s objectives will ensure our future success.”

“This strategic plan will ensure that the Port remains competitive over the coming years and proactively meets the challenges of a new era of international trade,” said Harbor Commission President Cindy Miscikowski.

Harbor Commission President Cindy Miscikowski

“Changing economic tides will require new and innovative approaches and a forward-thinking game plan,” said Port Executive Director Geraldine Knatz, Ph.D.  “This newly adopted strategic roadmap provides a clear path to assure the Port’s future success in the global marketplace.”

As the Port faces increasing competitive challenges in the coming years, the plan’s “competitive operations” component includes initiatives focused on developing and maintaining a world-class infrastructure; retaining and growing market share; advancing technology and sustainability, as well as optimizing land use.

Geraldine Knatz, Port of Los Angeles

Similarly, as part of its focus on building “strong relationships,” the Port will undertake a number of initiatives to increase stakeholder and community awareness and support, and to create a positive workplace culture.  The plan’s “financial strength” initiatives will center on enhancing cash flow, improving financial reporting and audits, and diversifying and maximizing grant funding.

Port of Los Angeles

The strategic planning process began in March 2011 and builds on the previous 2006-2011 Five-Year Strategic Plan. In addition to input from a multi-division Port Strategic Plan Task Force, Harbor Commissioners also provided input and feedback on various drafts of the Plan, as did Port staff, constituents, customers and labor representatives. Metrics to measure the Port’s performance and success in implementing the initiatives are also in included in the plan.

The strategic plan will undergo continuous evolution and performance measurement over the next five years and an annual assessment and re-evaluation to ensure relevance prior to the start of the annual budget process. An organizational performance dashboard will be used to measure progress towards implementing the initiatives.

The Port of Los Angeles is America’s premier port and has a strong commitment to developing innovative strategic and sustainable operations that benefit the economy as well as the quality of life for the region and the nation it serves. As the leading seaport in North America in terms of shipping container volume and cargo value, the Port supports more than 830,000 regional jobs and $35 billion in annual wages and tax revenues.