http://blog.cleveland.com/business/2007/12/stark_leads_multibilliondollar.html
Posted by Peter Krouse December 17, 2007 15:54PM
Categories: Breaking News
Bob Stark isn't content with just leaving his mark on Cleveland.
The local real estate developer was in Israel Monday discussing plans for a major investment near the northern city of Safed where he owns property.
Reached by phone around 10:30 p.m. Israeli time, Stark said he was at a conference and not able to talk. He did, however, reference a story written in the Israeli daily newspaper Ha'aretz.
It calls Stark an "American real estate mogul" and says he heads a group of investors looking to put $3 billion to $4 billion into "a new university town in the Safed area."
Safed is north of the Sea of Galilee. It's the fourth holiest city in Judaism and base of the mystical Kabbalah movement.
In the recent fighting between Israel and Hezbollah, katyusha rockets from southern Lebanon struck Safed, said Michael Siegal, chairman of Olympic Steel Inc. in Bedford Heights and a long-time supporter of Israel.
The development involving Stark would include a new medical school, along with homes, shopping centers and cultural institutions.
The medical school would be affiliated with Bar-Ilan University and be created with a donation of $500 million also designed to improve hospitals in the Galilee region. In his brief conversation with the Plain Dealer, Stark said he was involved in raising the money for the school from donors around the world.
Bob StarkThe project apparently faces some obstacles. Deans of existing medical schools in Israel object to opening a new one, Ha'aretz states, and government funding has not be secured.
Plans also include a school called a hesder yeshiva that combines service in the Israeli Defense Forces with study of the Torah. Stark has a son serving in the Israeli Army.
"Bar-Ilan officials said Stark and the other investors involved in the project represent a new brand of donors, who combine philanthropy with financial investment," the article states.
Locally, Stark is known for his Crocker Park lifestyle center in Westlake and his plans to revive the Warehouse District in downtown Cleveland. He also has contributed to a variety of Jewish causes.
Siegal said that he knew Stark had something going in Safed but that he's not part of it. "At least Bob hasn't called me, yet," he said.
In one respect, Zafed is not unlike Cleveland, Siegal said, in that it's economically depressed and can use some revitalization to keep the sharp, young minds from moving to places like Tel Aviv.
It appears that Stark is combining his faith, commitment to Israel and business acumen all in one, Siegal said.
"I wish him the best of luck."
Tuesday, December 18, 2007
Tuesday, November 6, 2007
Cuyahoga County selling downtown Ameritrust complex at East Ninth and Euclid
Tuesday, November 06, 2007
Joe GuillenPlain Dealer Reporter
The downtown site Cuyahoga County bought two years ago for a new administration building is officially up for sale.
Bidding for the old Ameritrust complex at East Ninth Street and Euclid Avenue will open at $35 million, equal to the amount spent on the project so far, officials said Monday.
Previous estimates of the county's financial commitment to the project exceeded $35 million because appropriations were included with actual expenditures, officials said.
Commissioner Tim Hagan was adamant the county will not lose money if the property is sold to a private developer.
"We're not going to give the site away without getting what we've got in it - period," Hagan said.
Some who criticized the project as wasteful said breaking even would be the best outcome for a previous bad decision.
"It's embarrassing," said Bay Village Mayor Deborah Sutherland. "I see no reason to throw good money after bad, so if they need to cut their losses, so be it."
County officials said Monday they are preparing documents to accept bids for the property, which they originally bought for about $22 million. The county's other costs include contracts to remove asbestos and to manage the project.
The request for proposals should be finished in the coming weeks. The for-sale property will include the Ameritrust Tower, which had been slated for demolition to make room for the county headquarters.
The commissioners opened the door to selling the property weeks ago, bringing into question their initial decision to embark on such a vast and expensive plan despite the county's ongoing financial struggles.
Joe GuillenPlain Dealer Reporter
The downtown site Cuyahoga County bought two years ago for a new administration building is officially up for sale.
Bidding for the old Ameritrust complex at East Ninth Street and Euclid Avenue will open at $35 million, equal to the amount spent on the project so far, officials said Monday.
Previous estimates of the county's financial commitment to the project exceeded $35 million because appropriations were included with actual expenditures, officials said.
Commissioner Tim Hagan was adamant the county will not lose money if the property is sold to a private developer.
"We're not going to give the site away without getting what we've got in it - period," Hagan said.
Some who criticized the project as wasteful said breaking even would be the best outcome for a previous bad decision.
"It's embarrassing," said Bay Village Mayor Deborah Sutherland. "I see no reason to throw good money after bad, so if they need to cut their losses, so be it."
County officials said Monday they are preparing documents to accept bids for the property, which they originally bought for about $22 million. The county's other costs include contracts to remove asbestos and to manage the project.
The request for proposals should be finished in the coming weeks. The for-sale property will include the Ameritrust Tower, which had been slated for demolition to make room for the county headquarters.
The commissioners opened the door to selling the property weeks ago, bringing into question their initial decision to embark on such a vast and expensive plan despite the county's ongoing financial struggles.
Wednesday, October 31, 2007
Fed reduces key rate by one-quarter point
By SHAWN A. TURNER
3:02 pm, October 31, 2007
For the second time this year, the Federal Open Market Committee has reduced the federal funds rate by a quarter-point, this time to 4.5%.
In lowering the rate, which is the rate banks charge either other for overnight loans, the Fed said in a statement that it hoped to protect the economy from “disruptions in financial markets.”“Economic growth was solid in the third quarter, and strains in financial markets have eased somewhat on balance,” the Fed said.
“However, the pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction.”Reacting to the news, at least one Northeast Ohio bank lowered its prime lending rate. Cleveland-based KeyCorp dropped its rate to 7.5% from 7.75%.
3:02 pm, October 31, 2007
For the second time this year, the Federal Open Market Committee has reduced the federal funds rate by a quarter-point, this time to 4.5%.
In lowering the rate, which is the rate banks charge either other for overnight loans, the Fed said in a statement that it hoped to protect the economy from “disruptions in financial markets.”“Economic growth was solid in the third quarter, and strains in financial markets have eased somewhat on balance,” the Fed said.
“However, the pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction.”Reacting to the news, at least one Northeast Ohio bank lowered its prime lending rate. Cleveland-based KeyCorp dropped its rate to 7.5% from 7.75%.
Friday, October 26, 2007
Office, retail boost building sales
Commercial sector unhurt by residential mortgage mess
By Dan Caterinicchia Associated Press
Published on Friday, Oct 26, 2007
WASHINGTON: The excesses that led to a bust in the housing boom haven't spread to the commercial real estate market, where the outlook is cautious but decidedly upbeat.
Led by strong growth in the office and retail segments, commercial property sales hit $401 billion through Oct. 18, outpacing last year's $359 billion total, according to Real Capital Analytics, a New York real-estate research firm.
Construction spending on office buildings, shopping centers and other private, nonresidential projects jumped 15.2 percent in August, the Commerce Department said last month.
There are some signs of slowing growth, analysts say, but nothing compared with the residential real estate market, where foreclosures and mortgage defaults are still rising rapidly, mainly from subprime mortgages extended to risky borrowers.
The commercial market has not been dragged down by the residential mortgage mess because for the most part, buyers and sellers are more sophisticated, and they have more financial flexibility and resources to ride out credit-market turmoil, experts said.
''It's a different animal with the direct relationship between banks and business leaders, not banks and homeowners,'' said Bernard Baumohl, managing director of The Economic Outlook Group in Princeton, N.J.
That doesn't mean the market would be unaffected if economic growth stalls.
''As home prices continue to fall, people feel poor and spend less,'' and that puts pressure on the profits that fuel corporate spending, said William Wheaton, research director at the Massachusetts Institute of Technology's Center for Real Estate. He puts 50-50 odds on a mild recession in the U.S. within the next six months.
Economic data due out soon is likely to show that September was one of the slowest months in several years for all areas of commercial real estate from apartment buildings to retail properties, according to Real Capital Analytics.
If the broader economy stumbles, the commercial real estate market would be vulnerable to ''credit-risk contagion,'' Wheaton said. Already, the credit crunch that started in mortgages has spread to other markets, including the commercial
market, with some sellers asking for more capital up front when mortgage-backed assets are financing a transaction.
Projects in Midwestern cities dominated by individual investors have seen prices plateau and capitalization rates rise compared with developments in New York, Washington and San Francisco, where institutional and foreign investments remain stable, said Dan Fasulo, managing director of Real Capital Analytics.
Risk premiums also are up, which means commercial real estate investors can't get sellers to finance as much debt as before. And there has been an ''above-normal flow'' of lodging project cancellations and postponements, even though the increase is ''not excessive or alarming,'' said Patrick Ford, president of Lodging Econometrics, a Portsmouth, N.H., real estate consulting firm. Speculative deals or developments with marginal profits are ''dead,'' Wheaton said.
Fundamentals in the commercial market remain strong with rising rents and occupancy levels expected to continue, especially in metropolitan areas. And while overbuilding in residential housing is worsening the magnitude of the downturn, commercial markets are not in oversupply mode.
As the housing market struggles to regain its footing, the outlook for commercial real estate is mostly positive, and investors are reaping the benefits.
A recent example: Host Hotels & Resorts Inc., the nation's largest lodging real estate investment trust, this month reported third-quarter results that beat Wall Street estimates on improved occupancy and lodging rates.
WASHINGTON: The excesses that led to a bust in the housing boom haven't spread to the commercial real estate market, where the outlook is cautious but decidedly upbeat.
Led by strong growth in the office and retail segments, commercial property sales hit $401 billion through Oct. 18, outpacing last year's $359 billion total, according to Real Capital Analytics, a New York real-estate research firm.
Construction spending on office buildings, shopping centers and other private, nonresidential projects jumped 15.2 percent in August, the Commerce Department said last month.
There are some signs of slowing growth, analysts say, but nothing compared with the residential real estate market, where foreclosures and mortgage defaults are still rising rapidly, mainly from subprime mortgages extended to risky borrowers.
The commercial market has not been dragged down by the residential mortgage mess because for the most part, buyers and sellers are more sophisticated, and they have more financial flexibility and resources to ride out credit-market turmoil, experts said.
''It's a different animal with the direct relationship between banks and business leaders, not banks and homeowners,'' said Bernard Baumohl, managing director of The Economic Outlook Group in Princeton, N.J.
That doesn't mean the market would be unaffected if economic growth stalls.
''As home prices continue to fall, people feel poor and spend less,'' and that puts pressure on the profits that fuel corporate spending, said William Wheaton, research director at the Massachusetts Institute of Technology's Center for Real Estate. He puts 50-50 odds on a mild recession in the U.S. within the next six months.
Economic data due out soon is likely to show that September was one of the slowest months in several years for all areas of commercial real estate from apartment buildings to retail properties, according to Real Capital Analytics.
If the broader economy stumbles, the commercial real estate market would be vulnerable to ''credit-risk contagion,'' Wheaton said. Already, the credit crunch that started in mortgages has spread to other markets, including the commercial
market, with some sellers asking for more capital up front when mortgage-backed assets are financing a transaction.
Projects in Midwestern cities dominated by individual investors have seen prices plateau and capitalization rates rise compared with developments in New York, Washington and San Francisco, where institutional and foreign investments remain stable, said Dan Fasulo, managing director of Real Capital Analytics.
Risk premiums also are up, which means commercial real estate investors can't get sellers to finance as much debt as before. And there has been an ''above-normal flow'' of lodging project cancellations and postponements, even though the increase is ''not excessive or alarming,'' said Patrick Ford, president of Lodging Econometrics, a Portsmouth, N.H., real estate consulting firm. Speculative deals or developments with marginal profits are ''dead,'' Wheaton said.
Fundamentals in the commercial market remain strong with rising rents and occupancy levels expected to continue, especially in metropolitan areas. And while overbuilding in residential housing is worsening the magnitude of the downturn, commercial markets are not in oversupply mode.
As the housing market struggles to regain its footing, the outlook for commercial real estate is mostly positive, and investors are reaping the benefits.
By Dan Caterinicchia Associated Press
Published on Friday, Oct 26, 2007
WASHINGTON: The excesses that led to a bust in the housing boom haven't spread to the commercial real estate market, where the outlook is cautious but decidedly upbeat.
Led by strong growth in the office and retail segments, commercial property sales hit $401 billion through Oct. 18, outpacing last year's $359 billion total, according to Real Capital Analytics, a New York real-estate research firm.
Construction spending on office buildings, shopping centers and other private, nonresidential projects jumped 15.2 percent in August, the Commerce Department said last month.
There are some signs of slowing growth, analysts say, but nothing compared with the residential real estate market, where foreclosures and mortgage defaults are still rising rapidly, mainly from subprime mortgages extended to risky borrowers.
The commercial market has not been dragged down by the residential mortgage mess because for the most part, buyers and sellers are more sophisticated, and they have more financial flexibility and resources to ride out credit-market turmoil, experts said.
''It's a different animal with the direct relationship between banks and business leaders, not banks and homeowners,'' said Bernard Baumohl, managing director of The Economic Outlook Group in Princeton, N.J.
That doesn't mean the market would be unaffected if economic growth stalls.
''As home prices continue to fall, people feel poor and spend less,'' and that puts pressure on the profits that fuel corporate spending, said William Wheaton, research director at the Massachusetts Institute of Technology's Center for Real Estate. He puts 50-50 odds on a mild recession in the U.S. within the next six months.
Economic data due out soon is likely to show that September was one of the slowest months in several years for all areas of commercial real estate from apartment buildings to retail properties, according to Real Capital Analytics.
If the broader economy stumbles, the commercial real estate market would be vulnerable to ''credit-risk contagion,'' Wheaton said. Already, the credit crunch that started in mortgages has spread to other markets, including the commercial
market, with some sellers asking for more capital up front when mortgage-backed assets are financing a transaction.
Projects in Midwestern cities dominated by individual investors have seen prices plateau and capitalization rates rise compared with developments in New York, Washington and San Francisco, where institutional and foreign investments remain stable, said Dan Fasulo, managing director of Real Capital Analytics.
Risk premiums also are up, which means commercial real estate investors can't get sellers to finance as much debt as before. And there has been an ''above-normal flow'' of lodging project cancellations and postponements, even though the increase is ''not excessive or alarming,'' said Patrick Ford, president of Lodging Econometrics, a Portsmouth, N.H., real estate consulting firm. Speculative deals or developments with marginal profits are ''dead,'' Wheaton said.
Fundamentals in the commercial market remain strong with rising rents and occupancy levels expected to continue, especially in metropolitan areas. And while overbuilding in residential housing is worsening the magnitude of the downturn, commercial markets are not in oversupply mode.
As the housing market struggles to regain its footing, the outlook for commercial real estate is mostly positive, and investors are reaping the benefits.
A recent example: Host Hotels & Resorts Inc., the nation's largest lodging real estate investment trust, this month reported third-quarter results that beat Wall Street estimates on improved occupancy and lodging rates.
WASHINGTON: The excesses that led to a bust in the housing boom haven't spread to the commercial real estate market, where the outlook is cautious but decidedly upbeat.
Led by strong growth in the office and retail segments, commercial property sales hit $401 billion through Oct. 18, outpacing last year's $359 billion total, according to Real Capital Analytics, a New York real-estate research firm.
Construction spending on office buildings, shopping centers and other private, nonresidential projects jumped 15.2 percent in August, the Commerce Department said last month.
There are some signs of slowing growth, analysts say, but nothing compared with the residential real estate market, where foreclosures and mortgage defaults are still rising rapidly, mainly from subprime mortgages extended to risky borrowers.
The commercial market has not been dragged down by the residential mortgage mess because for the most part, buyers and sellers are more sophisticated, and they have more financial flexibility and resources to ride out credit-market turmoil, experts said.
''It's a different animal with the direct relationship between banks and business leaders, not banks and homeowners,'' said Bernard Baumohl, managing director of The Economic Outlook Group in Princeton, N.J.
That doesn't mean the market would be unaffected if economic growth stalls.
''As home prices continue to fall, people feel poor and spend less,'' and that puts pressure on the profits that fuel corporate spending, said William Wheaton, research director at the Massachusetts Institute of Technology's Center for Real Estate. He puts 50-50 odds on a mild recession in the U.S. within the next six months.
Economic data due out soon is likely to show that September was one of the slowest months in several years for all areas of commercial real estate from apartment buildings to retail properties, according to Real Capital Analytics.
If the broader economy stumbles, the commercial real estate market would be vulnerable to ''credit-risk contagion,'' Wheaton said. Already, the credit crunch that started in mortgages has spread to other markets, including the commercial
market, with some sellers asking for more capital up front when mortgage-backed assets are financing a transaction.
Projects in Midwestern cities dominated by individual investors have seen prices plateau and capitalization rates rise compared with developments in New York, Washington and San Francisco, where institutional and foreign investments remain stable, said Dan Fasulo, managing director of Real Capital Analytics.
Risk premiums also are up, which means commercial real estate investors can't get sellers to finance as much debt as before. And there has been an ''above-normal flow'' of lodging project cancellations and postponements, even though the increase is ''not excessive or alarming,'' said Patrick Ford, president of Lodging Econometrics, a Portsmouth, N.H., real estate consulting firm. Speculative deals or developments with marginal profits are ''dead,'' Wheaton said.
Fundamentals in the commercial market remain strong with rising rents and occupancy levels expected to continue, especially in metropolitan areas. And while overbuilding in residential housing is worsening the magnitude of the downturn, commercial markets are not in oversupply mode.
As the housing market struggles to regain its footing, the outlook for commercial real estate is mostly positive, and investors are reaping the benefits.
Subscribe to:
Posts (Atom)
