Summer’s Over: Earthquakes, Egos, and Elusive Cap Rates- Episode 161

Investing with GoodLife

Good Life Housing Weekly Podcast, Episode 161 :

In this episode Rohan and David discussed the following topics:

1. Summer Reflections:
   • Rohan and David discuss the swift end of summer and recent experiences in California, including a minor earthquake.
2. Project Updates:
   • Ayva Midtown, Oklahoma City: The 78-unit project was completed and is seeing promising pre-leases and move-ins.
   • Haltom City, Fort Worth: A major industrial tenant has occupied 50,000 square feet, stabilizing the deal.
   • Student Housing in Las Vegas: Achieved 100% pre-leasing for the upcoming school year, maintaining a strong market position.
3. Economic and Market Updates:
   • Jobless Claims: Recent data shows claims are higher but lower than expected, hinting at potential interest rate cuts.
   • Producer Price Index (PPI): Rose 0.1% in July, less than the anticipated 0.2%, suggesting moderation in price increases.
   • Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) Index: Upcoming reports are expected to provide further insights into inflation trends.
4. Political and Economic Commentary:
   • Trump and the Fed: Trump suggests he could handle Fed policies better than the current administration.
   • Jamie Dimon: Predicts a 65% chance of recession, while JP Morgan's chief economist has a more conservative outlook.
   • Sam Zell's Equity Residential: Acquired 3,500 apartment units in high-growth markets, emphasizing that cap rates for new properties are unlikely to exceed 6%.
5. Real Estate Market Insights:
   • San Francisco Office Market: Significant vacancies and foreclosures, but a bold new project from Related California aims to transform the market with a 41-story mixed-use building.
   • New York City: The Manhattan office sector shows signs of recovery with increased visitation and projected property value increases.
   • Sunbelt Markets: Continued growth expected due to favorable conditions in these regions.
6. Homelessness and Local Government Actions:
   • California: Governor Gavin Newsom has ordered the dismantling of homeless encampments following a Supreme Court decision. Concerns about the potential criminalization of homelessness and the impact on local officials, such as LA Mayor Karen Bass, are highlighted.

Fun Content:

1. Movie Recommendation:
   • Rohan and David reviews "The Long Game," a film set in 1950s Del Rio, Texas, focusing on Hispanic high schoolers who form a golf team despite facing racial discrimination. The movie highlights the challenges of racism in the pre-Civil Rights Act era, particularly in South Texas, and draws comparisons to other narratives of overcoming barriers, like "Queen's Gambit."
   • Tokyo Swindlers: A Japanese series focusing on real estate fraud, involving sophisticated schemes and impersonation in the Tokyo land market.
     
2. Personal Updates:
   • David shares an update about a recent haircut and a new restaurant experience. They visited the Hong Kong Macau Restaurant, which had an extensive menu featuring herbal soups and other dishes. This experience included trying a chicken and pear soup intended to help with coughing.
3. Restaurant Recommendations:
   • Rohan recommends
     • Taqueria Frontera in Cypress Park, LA, known for its Tijuana-style tacos. The restaurant has a casual setup with outdoor dining and attracts a diverse crowd.
     • They also give a shout-out to Benny's Tacos in Westchester for its chicken soup.
4. Book and Webinar Announcement:
   • Rohan mention that their book is still available and that they are planning a webinar soon to prov