During the past two years the Institute has been updating the website. Our website continues to change and improve based on your comments.
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Mobile realty professionals now are a phone call away from daily updates on mortgage and capitalization rates during after hours. The Real Estate Capital Institute announces Real Estate Capital Market Day (“RECMD”) covering the day’s trading interest rates including final five, ten-year treasuries, 30-day LIBOR and Bank Prime. Capitalization rates cover apartment, office, retail, industrial and lodging properties.
As well as broadcasting rates, movements are tracked for various indices based on different intervals. Daily changes are posted for treasuries and LIBOR. Bank Prime changes coincide with Fed announcements. Capitalization rate changes move with overall market dynamics – generally on a quarterly basis, or sometimes less often.
The entire RECMD broadcast spans about three minutes, enough time to review overall rate statistics at the end of each day. In comparison, the Institute’s regular hourly service — The Real Estate Capital Rateline — simply reviews key rates hourly, needing less than a minute. Both broadcasts are aired using the same phone number of 7RE-CAPITAL (773-227-4825).
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Chicago, Illinois, November 16, 2007 – The Real Estate Capital Institute® added the seasoned realty industry veteran, Harold “Skip” Perry, to its Editorial Advisory Group for 2008. Skip is a former senior partner at Ernst & Young and has over 30 years of experience serving major developers, public and private investors and financial institutions. Skip’s new company, Real Globe Advisors (www.RealGlobeAdvisors.com) is headquartered in Chicago. The firm provides tactical and strategic financial advisory services to the commercial real estate industry.
The Real Estate Capital Institute’s Editorial Advisory Group (“EAG”) members typically serve a two-year term and include some of the nation’s most renowned realty professionals and scholars. The group is composed of capital providers, investment bankers, investors, consultants, academicians and appraisers. The Institute solicits market comments from these industry leaders as well as other senior executives.
Although the Institute collects market research from various sources, EAG member observations are particularly important. Issued monthly or more frequently (depending upon market conditions), EAG comments track market momentum. To protect privacy and promote an open exchange of ideas, many EAG observations are posted anonymously. Members’ comments, furthermore, don’t necessarily reflect opinions of their respective organizations, employers or the Institute.
According to the Institute’s research director, Nat Zvislo, “Given the highly volatile realty capital market behavior during the past four months, fresh EAG opinions and comments are especially important today to keep track of frequent and dramatic changes.”
ABOUT US:
The Institute is an independent research association dedicated to studying real estate capital markets. With roots dating back to 1983, the Institute is staffed by volunteers. The Institute’s research is based on the analysis of current income-property debt/equity market data. Funding parameters — including yields and pricing – are posted daily for apartment, industrial, retail, office and hospitality properties.
Based on EAG feedback, the Institute now covers markets with the highest frequency. Last year, for instance, the Institute recently announced the nation’s first toll-free, independent mortgage rate watch (e.g., not advertising specific lender rates). The service is known at US-RATE-WATCH (1-877-283-9282). The newscast announces key Treasury, LIBOR, Bank Prime and permanent mortgage rates. The information is refreshed every hour throughout the day.
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Chicago, Illinois, September 10, 2007 – Regardless of technological change, the basics remain the same – all communications are filtered by the five senses of seeing, hearing, touching, smelling and tasting. No small wonder that American business spends billions every day targeting the senses. And, the rules for reaching those senses are changing dramatically.
The Internet now controls the “eyeballs” and is the media of choice, rapidly overtaking print media in reaching millions instantly. On the other end of the spectrum, touching, tasting and smelling are only possible “in person,” based on physical contact.
What’s left? The ear. Telephone and radio are the most important “ear” technologies and have remained essentially unchanged during the past century. However, these two devices are converging. For example, radio listeners must either wait to hear their news or call specific sources and request an update. The internet provides broadcasts expanding to radio and similar devices (e.g., podcasting) with more specific choices. However, the telephone is still the preferred media choice for very specific, targeted information and has the largest audience.
What about situations for news broadcasts on-demand by simply making a phone call? Weather and traffic reports, interest rates, stock/bond prices are just some examples of very specific information that is regularly updated. Only the largest organizations such as airlines and governmental agencies can afford to operate sophisticated phone operating systems for handling updates.
Dial4News technology is bridging the gap between the telephone and radio newscast by using affordable PC technology and off-the-shelf hardware/software solutions. Businesspeople and technology experts have teamed together and designed a breakthrough method of automating news delivery by the Internet and telephone. This patent-pending process is based on applying voice recognition technology with current market data and sending such a sound files to telephone answering services and switching stations.
Dial4News technology and research are sponsored by The Real Estate Capital Institute. The Institute’s research director, Nat Zvislo, notes “We’re excited by such a technology and use it for updating interest rates and mortgage data for commercial real estate professionals. Zvislo adds, “We are exploring the use of this technology for stock and bond market updates. In other words, any news that’s worth a phone call.”
To hear Dial4News technology in action, call the Institute’s Toll-free, commercial mortgage Rateline at 1-US-RATE-WATCH (1-877-283-9282). The Institute’s phone website is www.usratewatch.com.
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Chicago, Illinois, May 15, 2007 — Traditionally a center of commerce, Chicago’s Loop is now a residential district, adding more than 80,000 dwelling units during the past 15 years. The City’s residential sales increased nearly 20%. In addition, although the market is returning to more normal sales levels, the move to the City remains a long-term trend and vacant land development opportunities remain.The redevelopment is spilling over to areas located within a five miles of the Loop. Communities including Lincoln Park (north), the South Loop and Bronzeville (south) have enjoyed growth. The communities to the north and south have been redeveloped the soonest because of their proximity to the Lake. These communities are now running out of affordable land.Developers search further out, but commuting distance starts becoming an issue. As a result, the community currently experiencing the most rapid redevelopment is the Greater West Side.Horatio Alger’s “Go West Young Man” phrase applies directly to Chicago’s West Side. However, why does the West Side have more land available in closer to the Loop than other areas?
According to Nat Zvislo, research director of the Real Estate Capital Institute headquartered in Homan Square/North Lawndale: “Urban migration patterns are the answers.” Zvislo believes the community lost, favor because of the post-World War II desire to move to suburbia. Jobs followed to suburbia, as well.
During the second half of the century, the City tried to reverse the population exodus. Urban renewal by demolition of older neighborhoods and constructing high-rise public housing proved to be an unsuccessful strategic planning formula. Urban unrest throughout the 1960s and 70s led to further disinvestment and housing abandonment. Therefore land supply unintentionally increased.
Within the last decade concerted public and private redevelopment initiatives steered by strong leadership under Mayor Daley paved the way for one of the most successful redevelopment campaigns in the United States. Today, the Greater West Side is one of America’s most exciting “turnaround” stories in America.
Chicago, Illinois, December, 2006 – Three of the most famous buildings in Chicago are the Sears Tower, the John Hancock Tower and the Water Tower. What do all these structures have in common? They’re all towers. With the exception of the Water Tower, the other towers are occupied by retail, office and residential tenants (Hancock only) looking for unique space that’s highly identifiable and prestigious. Such tenants aren’t necessarily looking for the most cost-effective space, but instead want to be associated with a tower address. In other words, they’re using bricks-and-mortar as part of their image.
Today more than ever, commercial real estate space requirements are less sensitive to location — particularly for tenants that perform most of their tasks by means of the internet. Yet tenants still want psychological satisfaction from being in a specific location.
One such example of psychological satisfaction is the Real Estate Capital Institute of Chicago. With roots dating back to 1983, the Institute is a research organization dedicated to studying realty debt and equity trends (www.reci.com). The Institute operates as a “virtual office” with nearly all information collected and published electronically. The Institute maintains physical space for servers, document storage and an office area for its workforce. Also, shared meeting room space is used for visitors and larger gatherings. The office space is otherwise generic.
However, the Institute still wanted to present a specific image, even though physical space needs are met.
A golden opportunity arose when the Original Sears Tower (a/k/a Homan Square, Old, First and Vintage Tower) became available (www.originaltower.com). This 35,000 ft.², 14-story historic landmark predates the current Sears Tower by nearly seven decades. During the first two decades of the 20th century, this property was the most famous commercial structure in America as it was represented on almost all the Sears Catalogs printed during this era. The building represents the majestic might of a retailing institution within a classical architectural framework.
This 100-year old historic landmark will soon be redeveloped at costs that reflect more value than downtown skyscrapers. Additionally, on-site parking is available. The Institute’s research director, Nat Zvislo, notes “The Tower’s neoclassical architecture portrays the academic campus-like image the Institute requires.” Adding, “It serves as a branding strategy and the Institute uses it [the Tower] as part of our logo.”
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Chicago, November 7, 2006 — One of the most famous commercial complexes found within the City is celebrating 100 years — The Sears, Roebuck & Co. Catalog Plant. Now known as Homan Square, this Complex was home to one of the largest companies in the world at the time. The Complex earned several titles over the last century including “The World’s Largest Store”, “A City within a City” and “The Works”.
Originally erected between 1905 and 1906 as the Sears Roebuck & Co. world headquarters and mail order catalog operations center, a substantial portion of the buildings and surrounding area still exist in the heart of the City’s West Side. The Complex is located about ten minutes from the Loop.
Nat Zvislo, the research director of the Real Estate Capital Institute (a company located in the area), notes “The Sears Catalog Plant is a fascinating national/local landmark rich in history and tradition. On its completion and for nearly two decades, the Complex ranked as one of the most famous commercial buildings in the United States.”
Other important highlights of the historic Sears Catalog Plant include:
1) Employed over 20,000 people in the 1920s – the largest private employer in Chicago.
2) Birthplace of WLS Radio, one of the most famous stations in the country.
3) Home of the oldest skyscraper outside downtown Chicago — The 1st Sears Tower.
4) Birthplace of Allstate Insurance Co. (1931).
5) Home of the first major Chicago skyscraper built after World War II (1949).
6) Pioneer of advanced life/safety systems – completely sprinklered.
7) Known as a state-of-the-art facility that was toured by many celebrities of the era including Henry Ford, Charles Lindbergh, Gene Autry and others.
Winner of the coveted ULI Award for Excellence for the Community Center (2002).
9) Among one of the most successful commercial buildings in continuous use by the same company for more than 80 years.
10) One of the first communities in the city to offer residents free WiFi (2002).
The Real Estate Capital Institute will be one of the sponsors hosting a Centennial exhibit honoring the Complex. The exhibit will display pictures, postcards, books and other artifacts. For further information, contact director@reci.com.
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Chicago, Illinois, November 6, 2006 — Celebrating its centenary, the historic Sears Catalog Plant district is now transcending into a new era. Serving as the original Sears Roebuck and Co. world headquarters from 1906 to 1973, the district boasts a long history of research and development accomplishments including a catalog publishing plant, testing laboratories, automobile insurance (original home of Allstate Insurance) and one of the nation’s first radio stations (WLS).
Today the area is a National Landmark district known as Homan Square. Continuing the innovative tradition of the Catalog Plant, it is Chicago’s newest technology-based community. A $30-million Community Center developed by the late Charles H. Shaw is the crowning achievement of this area featuring free WiFi for the entire neighborhood.
Beyond the technology initiatives, Homan Square boasts a central location within Chicagoland. Located in North Lawndale, the neighborhood is in the heart of the City’s West Side. Only ten minutes from downtown (about 4.5 miles), the Rapid Transit serves this section (Blue Line) and the Eisenhower Expressway. Douglas and Garfield Park surround it. Just as importantly, the second largest employment node in Illinois is only a few minutes directly east (the University of Illinois and the Illinois Medical District).
The Real Estate Capital Institute is a specific example of technology-based organizations moving into Homan Square. The Institute will occupy the original Sears Tower. Located in the heart of the area at the intersection of Arthington Street and Homan Avenue, the 14-story structure is a 100-year-old national landmark, otherwise known as the “Old” and “First” Sears Tower. This landmark is the oldest skyscraper outside downtown Chicago. Notes Nat Zvislo, research director of the Institute, “the area has a small community feel within a big-city environment — a true neighborhood.”
The Real Estate Capital Institute selected this community as its headquarters for a myriad of reasons. The Institute is a national research organization using fully automated communications for processing real estate capital market data. As a result, its workforce needs to be close to downtown and “tech” neighborhoods such as Wicker Park. Enough parking and close public transportation access were also important factors.
For more information about the Homan Square area, please visit www.homansquare.org. The Real Estate Capital Institute’s website is www.reci.com.
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Chicago, Illinois – October, 2006 — Not a day goes by without a news story about urban America’s rebirth. Suburban planning issues including sprawl, congestion, rising taxes, infrastructure costs and changing households favor urban redevelopment. Urban amenities such as pedestrian-friendly infrastructures, public transportation, cultural/recreational amenities and close proximity to employment become important.
Successful urban redevelopment demands an accommodating infrastructure that can support optimum population density with amenities such as open space, transportation and employment opportunities. While many communities witness urban redevelopment, consistent patterns of performance are varied and sporadic. Numerous reasons apply including limited geography, unclear urban planning initiatives, inconsistent job growth, etc. Yet certain markets thrive.
The City of Chicago is such an urban area. The City has numerous neighborhoods undergoing consistent redevelopment at a measurable pace due to the velocity of the market and the inventory of redevelopable land. Chicago serves as a laboratory for successful urban redevelopment for a variety of reasons.
Ranked as America’s third-largest city with a population of approximately three million, Chicago’s backbone is an infrastructure mostly built during the late 19th and early 20th Century. This infrastructure supports public transportation as a first priority, mainly railroad and bus lines. These buses and railroads crisscross the City, originating from the downtown “hub” in three directions heading north, south and west. The City is also laid-out in a logical grid system. For the most part, public transportation is available nearly every quarter-mile — very pedestrian-friendly.
Chicago’s public transportation system supports population densities ranging up to 60,000 people within a mile radius, at least three times more density than typical suburbs. Transportation costs are more economical based on density and infrastructure.
Most important of all, Chicago’s Loop is a well-established area featuring strong employment, educational, institutional, recreational and residential amenities boasting a daytime population in excess of one million people.
The Real Estate Capital Institute is an example of an organization seeking the urban dynamics offered by Chicago. Before selecting a location, the Real Estate Capital Institute studied various communities within the City and chose the Homan Square neighborhood in North Lawndale – an area in the midst of redevelopment located minutes west of downtown Chicago. The Institute’s research director, Nat Zvislo, says “Chicago is one of the great 24-hour cities that attract talent and technology – both necessary for a research organization to thrive.”
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Chicago, August 27, 2006 — Chicago enjoys the rebirth of residential development in the core areas near downtown. The unprecedented housing boom creates exciting, world-class, urban living linked to various amenities.
The downtown area features an ample supply of high-rise units, along with town homes mostly on the outskirts.
What about single-family housing?
Almost none is available within the downtown area at reasonable prices. Land is simply too expensive. The nearest single-family housing is found within a four-mile radius of downtown in some of Chicago’s most exciting neighborhoods including Ukrainian Village, Wicker Park,and North Lawndale. These communities are located within 20 minutes of the Loop.
As expected, single-family housing prices in such neighborhoods are stratospheric. Prices for new construction homes often start at $600,000. Yet bargain prices are still available – particularly in North Lawndale.
North Lawndale is one of the most active redevelopment districts and best kept secrets. The area is located in the heart of the City’s Westside, about 10 minutes directly west of downtown. The area is renowned for its early 20th Century charm including numerous mansions and the historic landmark Sears Catalog Plant District (Homan Square).
Many employers and academic institutions are within the general area including the Illinois Medical District, the Homan Arthington Foundation and the Real Estate Capital Institute. Nat Zvislo, research director of the Real Estate Capital Institute, says “we like the area because home prices are affordable and it’s easier for us to harness talent within the city.” (As an example, the Institute represents the movement of technology-oriented research organizations into the City’s Westside.)
Within close proximity to the Loop, North Lawndale’s housing prices have recently appreciated faster than any other community near the Loop. Nevertheless, affordable single-family housing is still available – often under $500,000. In fact, the Homan Square area offers housing prices below $400,000 – about half the price of similar areas!
Polk Street Associates recently built nine homes in the vicinity of Polk Street and Central Park with starting prices of $300,000. The homes were sold out nearly instantly, topping out in excess of $400,000.
The tremendous success of the Polk Street homes has led the development team to plan constructing 40 more town homes within a block, just west of Homan Square. The company expects to market these homes with starting prices of $375,000.
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