Posts Tagged Miami
Housing affordability conditions have reached the highest level since record keeping began in 1970, according to the National Association of Realtors®.
NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power.
An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments. For first-time buyers making small downpayments, the affordability levels are relatively lower.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said this latest data underscores buyer opportunities in today’s market. “This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home,” he said. “For buyers who can qualify for a mortgage, now is a very good time to become a homeowner.”
NAR projects the affordability index for all of 2012 will be at an annual high, with little movement in mortgage interest rates or home prices during the year. “Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country,” Veissi said. “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
As I expected, the foreclosure of the Bachelor Gulch Ritz-Carlton was the owner’s method to restructure his debt. It was announced on February 28, 2012, that the owners had completed the recapitalization of the Ritz-Carlton. The text of the announcement is below:
Gencom & GD Holdings Complete Recapitalization of The Ritz-Carlton, Bachelor Gulch in Avon, Colorado
MIAMI, Feb. 28, 2012
MIAMI, Feb. 28, 2012 /PRNewswire/ — Affiliates of Gencom and GD Holdings, through a joint partnership, have completed the recapitalization of the 206-room The Ritz-Carlton, Bachelor Gulch, located in Avon, Colorado, today announced Gary Lake, EVP of Gencom.
The Gencom/GD Holdings partnership has successfully completed a long term recapitalization which includes the restructuring of its loans on both the hotel and the residential component of the Resort thereby reinstating its outstanding loans to good standing. In addition to the debt restructuring, the Resort has embarked on a $10 million renovation program to refresh and enhance the property’s already unique mountain lodge decor within its guest rooms, ballroom/meeting space and public areas. The renovation program is expected to be completed in early 2014.
Opened in November 2002, The Ritz-Carlton, Bachelor Gulch is a AAA 5-Diamond luxury ski in/ski out boutique hotel nestled at the base of the world-renowned Beaver Creek Resort and is the focal point of the Bachelor Gulch Village. The Resort features the internationally acclaimed Wolfgang Puck’s Spago Restaurant, a world-class spa and has been the recipient of numerous awards and accolades since its opening, including:
- Conde Nast Traveler “2012 Gold List: The World’s Best Places to Stay” – (January 2012)
- Travel + Leisure “The World’s Best 500 Hotels” – #1 in Colorado (January 2012)
- Forbes Four-Star, AAA Five-Diamond Resort
- AAA Four-Diamond Restaurant, Spago by Wolfgang Puck
- Forbes Four-Star Spa
- Golf Digest “The 75 Best Golf Resorts” – #19 (November 2011)
- Conde Nast Traveler “#1 Spa Resort in the Continental U.S.”
Founded in 1987 by Karim Alibhai, Gencom is a leading domestic and international investment and development firm specializing in the hospitality and residential real estate sectors. By aligning itself with prominent investors and institutional relationships, Gencom has maintained a strong market position with both luxury and mixed-use hotels and resorts with significant residential components, and in other hospitality-related investments that include both portfolios and single assets. The firm continues to opportunistically grow its portfolio holdings in key resort and urban markets in the United States, Canada, Mexico, Caribbean and Europe. Gencom is headquartered in Miami with representative offices in Houston and London. For more information, visit www.gencomgrp.com.
About GD Holdings
GD Holdings, LLC is a privately held real estate investment company engaged in the acquisition, development, ownership and management of hotels and commercial real estate assets. The firm was established by Salomon Juan Marcos, Chairman and CEO of Grupo Denim (www.grupodenim.com.mx), which brings with it a tradition of decades of success in the apparel industry. The firm and Mr. Marcos employ a highly disciplined investment approach focused on value creation, capital preservation, and enduring quality.