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Biden Rolls Out Office-to-Apartment Conversion Incentives
The White House Wants to Do Their Part by Offering Funding and Acquisition Opportunities
Michael Campbell
12 Nov
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The White House Wants to Do Their Part by Offering Funding and Acquisition Opportunities
With transaction volume down to historic lows and commercial real estate trading at 30% of fair market value, the stage has been set for more niche building opportunities such as office-to-apartment conversions; however, there’s still a ton of red-tape in the way.
But, The Biden Administration hopes to change all of that. They’ve announced a slew of incentives and aid resources that will hopefully make it easier for investors and developers to repurpose underutilized properties.
At the close of October, they released an official fact sheet that laid out an office-to-residential conversion guidebook that’s underway. Now, the federal government will also be providing loans at discounted interest rates to help fund these purchases and repositionings.
As the housing deficit continues to widen, the fed hopes that their backing and support of apartment conversions will help push building activity towards where it needs to be in order to narrow the supply-demand gap.
Quick Takeaways
Commercial Office-to-Residential Apartment Conversions Gain the Full Faith and Support of the Federal Government
The Biden Administration Has Announced A ‘Conversion Guidebook’ That Will Be Released, As Well As A Database of Available Properties
Additionally, The Fed Will Be Offering Investors and Developers Access to Loans and Other Forms of Funding At Below-Market Interest Rates
On Another Note
✺ Orsted Says It’s A No for New Jersey and Takes A $4B Loss: Danish wind power developer Orsted has canceled their two largest projects in the Northeast. The Ocean Wind 1 development would have been New Jersey’s very first offshore wind farm, and it would have generated enough electricity to power half a million homes. — CNBC
✺ Is Now the Time to Rake In China’s Fallen Real Estate?: HSBC Bank CEO Noel Quinn says the troubled sector has bottomed out, and its up from here (although it may be a long road ahead). — WSJ
✺ Zillow Says It’ll Take New Homeowners 13.5 Years To Pull In A Profit: Albeit home values have largely held steady, Zillow projects that it could take nearly fifteen years for present day borrowers to turn a profit if they choose to sell. — Zillow
✺ Canada’s Cost to Develop Is Up 3X In Some Areas: Sky high construction costs have kept new building starts low in Vancouver. The coastal city is struggling to even out it’s housing supply-demand imbalance. — Global News
✺ Starbucks Is Banking On Itself Big Time: They’ve announced an aggressive expansion plan that will up their domestic and foreign store count to 55,000 locations, plus increase profit margins by shedding $3B in costs. CEO Howard Schultz has dubbed it: Triple Shot Reinvention with Two Pumps. — Bisnow
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