It’s with great humor that Eugenio Aleman, senior economist for Wells Fargo, delivers his take on the U.S. economy and its impact on the housing market. Speaking at a Wells Fargo sponsored seminar of the San Fernando and Santa Clarita Valley Chapters of the National Association of Hispanic Real Estate Professionals Aug. 19, he turned what could have been a dreary regurgitation of numbers everybody already knows anyway into an entertaining breakfast. An action figure of Federal Reserve Chairman Ben Barnanke with a warning label: Cannot really prevent a severe recession from occurring, and his own version of Humpty Dumpty were only a few of his economic/comedic insights. “All the king’s treasury men and all the king’s federal reserve men could not put the U.S. economy together again.” The government’s monetary policy (the Fed making more paper money) is NOT working and fiscal policy is the only alternative, but politicians of course don’t want to go there, he said. Aleman does not like government incentive programs such as the tax credits for new home buyers or Cash for Clunkers. “It’s good news for the short term but terrible news for the mid to long term,” he insists. Aleman’s conclusion is that the U.S. housing market has reached bottom, but it will remain at the bottom for a very, very long time. With mortgage rates at an all time low, buyers should not hold off any longer for better deals. (Aleman is among those looking to sell his home, urgently, he said.) Although the U.S economy is slowing down again, a double dip is not likely unless the economy is shocked by an outside force such as the Greek Euro crisis, which has the potential to topple the world economy again, he said. Deflation is a short term concern while inflation remains a medium to long term concern and as the economy begins to recover, the worst thing to happen to the housing market, aside from what has already happened, is fast economic expansion. “The best thing for the economy is slow paced growth for the next three years in order to keep interest rates low and allow the housing markets to recover,” he said. This will be enough time for all foreclosures to work their way through the system. KB Homes There’s a new condo community opening up in Woodland Hills and KB Homes is making sure everybody knows about it. The company is advertising its 191condo homes at Ascent with a widespread marketing effort that includes flyers, print, radio and online advertising and of course, private tours with members of the press. I got a chance to tour the property with Steve Ruffner, division president for KB Home’s Southern California region and other members of his team, the same day they were hosting a VIP event and Chamber of Commerce ribbon cutting ceremony by the pool. Outdoor fireplaces, a fitness center, spa and cabanas are among the few amenities the complex offers. “This is the most affordable new building built in LA in a long time,” said Ruffner. He believes a qualified applicant earning $30,000 in annual income could own one of the brand new condos that start in the mid $200,000s and go up to the mid $400,000s. With brand new everything, including state of the art appliances, open layouts with tasteful designs and lots of windows, Ruffner expects the units will go fast. “I’ve been with the company 23 years and I’ve never seen us this affordable in brand new urban condos,” he said. “I think the headline should be ‘what are you waiting for?” The condos will appeal to urban dwellers that enjoy living very close to where they work, he said. Condos at Ascent located on Erwin at the Warner Center were built to the strongest seismic requirements and also offer a ten year warranty. The condos which include one, two, and three bedroom units will be available for move-ins in August. Transactions Staffing firm On Assignment will be relocating its world headquarters next April to a larger building in Calabasas that can accommodate for the company’s growth. On Assignment, which specializes in placing professionals in the life sciences, healthcare, engineering and IT industries, signed the lease of a 37,172 square foot office building located at 26745 Malibu Hills Road, Aug. 20. The building is one of two adjacent facilities formerly occupied by Countrywide and prior to that, Cardservice International. One of the buildings remains vacant and is being offered for lease at an asking rate of $1.95 per square foot. Jared Smits and Lee Black of NAI Capital represented the landlord, Calabasas BCD, in the ten year lease. Smits said On Assignment had run out of room to grow at its previous location on Agoura Rd, and was also facing parking problems. “The new location gives the company about 5,600 feet of growth space,” he said. It also provides plenty of parking space at a ratio of 4.68 spaces per 1,000 square feet of space leased. The tenant, which was given significant tenant improvement allowances, will begin working on the property Sept. 1, said Smits. On Assignment, Inc. was represented by Rick Pearson of Cresa Partners. Van Nuys Multi-Family deals Marcus & Millichap Real Estate Investment Services completed the sale of two apartment properties in Van Nuys. The first is a 23-unit apartment complex located at 13562 Vanowen Street which consists of 18,760 rentable square feet. The sales price of $2,000,000 represents a value of $86,956 per unit. The second property is a 12-unit apartment property at 7327 Woodman Avenue. It sold for $1.18 million or $98,333 per unit. The complex consists of 9,882 rentable square feet. The property was in a state of pre-foreclosure, with the grant deed recording less than 48 hours prior to the trustee sale. Rick Raymundo, vice president of investments in the Los Angeles office of Marcus & Millichap and a director of the firm’s national multi-housing group, represented the buyers of both properties, 13562 Vanowen Apartments, L.P. and Siena Associates, LLC respectively. Sherman Oaks Hendricks & Partners announced the sale of an eight-unit apartment community in Sherman Oaks for $1.4 million. Built in 1968 and located at 14961 Dickens Street, the property features five one-bedroom, two two-bedroom, and one three-bedroom units. Mark McDonald of the West Los Angeles office of Hendricks & Partners represented the seller, Sanders House, LLC of Woodland Hills. The Buyers were Kian & Shabnam A. Farzaneh of Alamo, CA. Staff Reporter Andrea Alegria can be reached at (818) 316-3124 or at [email protected].
Healthy Dose of Humor in Gloomy Economic Forecast
