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2004

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Full-Text Articles in Real Estate

Changing Patterns Xi: Mortgage Lending To Traditionally Underserved Borrowers And Neighborhoods In Greater Boston, 1990-2003, Jim Campen Dec 2004

Changing Patterns Xi: Mortgage Lending To Traditionally Underserved Borrowers And Neighborhoods In Greater Boston, 1990-2003, Jim Campen

Gastón Institute Publications

The present study is the latest in a series of annual updates of the original report, Changing Patterns: Mortgage Lending in Boston, 1990-1993. Beginning in 1998, the reports’ geographic scope was expanded t o include an examination of mortgage lending patterns in 27 cities and towns surrounding the city of Boston. In last year’s report, the geographic coverage was further expanded to include a total of 108 communities.

The text that follows this introduction highlights some of the most significant findings that emerge from the extensive set of tables and charts that constitute the bulk of the report. The ...


Changing Patterns Xi: Mortgage Lending To Traditionally Underserved Borrowers & Neighborhoods In Greater Boston, 1990-2003, Jim Campen Dec 2004

Changing Patterns Xi: Mortgage Lending To Traditionally Underserved Borrowers & Neighborhoods In Greater Boston, 1990-2003, Jim Campen

Gastón Institute Publications

The present study is the latest in a series of annual updates of the original report, Changing Patterns: Mortgage Lending in Boston, 1990-1993. Beginning in 1998, the reports’ geographic scope was expanded t o include an examination of mortgage lending patterns in 27 cities and towns surrounding the city of Boston. In last year’s report, the geographic coverage was further expanded to include a total of 108 communities.

The text that follows this introduction highlights some of the most significant findings that emerge from the extensive set of tables and charts that constitute the bulk of the report. The ...


Investing In Real Estate: Mortgage Financing Practices And Optimal Holding Period, Winston T. H. Koh, Edward H. K. Ng Dec 2004

Investing In Real Estate: Mortgage Financing Practices And Optimal Holding Period, Winston T. H. Koh, Edward H. K. Ng

Research Collection School Of Economics

Real estate investments are typically characterized by high degrees of leverage and long-loan tenures. In perfect capital markets, leverage has no impact on the investment decision apart from tax considerations. However, the mortgage financing market is imperfect in many countries. In the presence of market imperfections, an optimal holding period exists for real property investments. We provide a simple rule to calculate the optimal holding period to compare the required rate of return with the leveraged rate of return on equity.


Land Values As A Source Of Local Government Finance, Tom Dunne Oct 2004

Land Values As A Source Of Local Government Finance, Tom Dunne

Books/Book Chapters

Funding local government has been a permanent feature of debates about public policy in Ireland and Many feel that the balance of power between local and central government is weighted too much in

This paper suggests that the concept of economic rent, on which the justification for property taxes rests and its relevance to the property market in a modern, economically successful and urbanised Ireland, needs to be vented, discussed and debated.

The proposition is that if a greater understanding was created about the economic characteristics of landed property both value capture and local property taxes would achieve greater public ...


Are Floating-Rate Mortgages Best For Hotels? Observations From The Recent Cyclical Peak-To-Trough, John B. Corgel, Scott Gibson Oct 2004

Are Floating-Rate Mortgages Best For Hotels? Observations From The Recent Cyclical Peak-To-Trough, John B. Corgel, Scott Gibson

Articles and Chapters

[Excerpt] During January of 2004, we attended the American Lodging Investment Summit (ALIS), a large hotel industry investment conference held each year in Los Angeles. We sat through several sessions about financing hotel companies and properties at the conference. During literally every one of these sessions, fairly lengthy, and sometimes active, discussions erupted about the effective use of fixed-rate versus floating-rate debt for financing hotel investments. Our take away from the experience—floating-rate debt makes sense as a general proposition because hotels, unlike other commercial real estate, have pro-cyclical income streams unbridled by lease frictions that should resemble the time-series ...


Limited Partnerships And Reputation Formation, Jarl G. Kallberg, Crocker H. Liu, Anand Srinivasan Sep 2004

Limited Partnerships And Reputation Formation, Jarl G. Kallberg, Crocker H. Liu, Anand Srinivasan

Articles and Chapters

This paper analyzes the optimal quality decision of a producer in a multi-period setting with reputation effects. Using a unique database of returns on real estate limited partnerships (RELPs), we empirically examine alternative theoretical predictions of optimal producer strategy. In particular, we test whether the producers in our market invest in reputation building by initially selling high quality goods and then lowering quality. Using a variety of statistical tests, we find evidence consistent with reputation building, both in the aggregate and for individual developers.


The (Un)Changing Geographical Distribution Of Housing Tax Benefits: 1980 To 2000, Todd Sinai, Joseph Gyourko Aug 2004

The (Un)Changing Geographical Distribution Of Housing Tax Benefits: 1980 To 2000, Todd Sinai, Joseph Gyourko

Real Estate Papers

Using tract-level data from the 1980, 1990, and 2000 censuses, we estimate how the income tax-related benefits to owner-occupiers are distributed spatially across the United States. Even though the top marginal tax rate has fallen substantially since 1979 and the tax code more generally has become less progressive, the tax subsidy per household or owner was virtually unchanged between 1979-1989, and then rose substantially between 1989-1999. Geographically, gross program benefits have been and remain very spatially targeted. At the state level, California’s owners have received a disproportionate share of the subsidy flows over the past two decades. Their share ...


The Asset Price Incidence Of Capital Gains Taxes: Evidence From The Taxpayer Relief Act Of 1997 And Publicly-Traded Real Estate Firms, Todd Sinai, Joseph Gyourko Jul 2004

The Asset Price Incidence Of Capital Gains Taxes: Evidence From The Taxpayer Relief Act Of 1997 And Publicly-Traded Real Estate Firms, Todd Sinai, Joseph Gyourko

Real Estate Papers

We provide new evidence on the asset price incidence of corporate-level investment subsidies by examining the relative stock price performance of publicly traded companies in the real estate industry that should have been differentially affected by the capital gains tax rate reduction enacted in the Taxpayer Relief Act of 1997. By comparing real estate firms that have an organizational structure that allows entities who sell property to it to defer capital gains taxes and that plan to use the structure to acquire property with those that do not, we isolate the effect of the tax cut from industry trends and ...


Geography And The Internet: Is The Internet A Substitute Or A Complement For Cities?, Todd Sinai, Joel Waldfogel Jul 2004

Geography And The Internet: Is The Internet A Substitute Or A Complement For Cities?, Todd Sinai, Joel Waldfogel

Real Estate Papers

We study the tendency to connect to the Internet and the online and offline shopping behavior of connected persons. We document that larger markets have more locally-targeted online content and that individuals are more likely to connect in markets with more local online content, suggesting the Internet is a complement to cities. Yet, holding local online content constant, people are less likely to connect in larger markets, indicating that the Internet is also a substitute for cities. Finally, we find that individuals connect to overcome local isolation, in the form of racial isolation or distance to retail stores.


Investing In An Emerging Mortgage Backed Securities Market: The Case Of Korea Housing Finance Corporation, Seung-Dong You Jul 2004

Investing In An Emerging Mortgage Backed Securities Market: The Case Of Korea Housing Finance Corporation, Seung-Dong You

Cornell Real Estate Review

Korea Housing Finance Corporation (KHFC) is poised to change the structure of the Korean housing finance industry. KHFC is proposing innovative fixed rate long-term loans, which will fulfill an unmet demand among Korean homebuyers, and plans to offer long term Mortgage Backed Securities (MBS) in the bond market.

This article provides information on the emerging Korean mortgage market, a framework for establishment of this new Government Sponsored Enterprise (GSE) and characteristics of the KHFC MBS product. First, it presents current conditions of the secondary mortgage market in Korea. Second, it discusses the process and rationale for the establishment of KHFC ...


Is Overbuilding Risk Declining? Evidence From Hotel Markets, John B. Corgel Jul 2004

Is Overbuilding Risk Declining? Evidence From Hotel Markets, John B. Corgel

Cornell Real Estate Review

“In the old days, construction statistics and other important data were closely guarded secrets. Developers can now look at competitors’ numbers and tell at a glance if an area is becoming overbuilt.” From a Wall StreetJournal article about U.S. office markets, January 23, 2004.


Land Use Rights In China, Zhenhuan Yuan Jul 2004

Land Use Rights In China, Zhenhuan Yuan

Cornell Real Estate Review

China is a socialist country and all land in China belongs to Chinese citizens as a whole. Article 10 of the 1982 Constitution upholds the Chinese land policy that reflects the traditional view of socialism - land of the country must be owned by the country (State) or its agricultural Collectives. State-owned enterprises or other organizations, which cannot own land themselves, may use land with permission from the State.

With the development of the Chinese economy and increasing economic reforms, the need for both residential and commercial space has grown rapidly. This emerging real estate demand led to an amendment to ...


Shopping For B-Malls: Investing For Stable Cash Flows And Value Creation, Jeff Giller, Steven Plenge Jul 2004

Shopping For B-Malls: Investing For Stable Cash Flows And Value Creation, Jeff Giller, Steven Plenge

Cornell Real Estate Review

Executive Summary
• The most compelling B-mall investment strategy is to acquire B-2 malls that have the potential to move up to the B-I level.
• High barriers to entry and population demographics in their suburban locations make B-malls attractive.
• Secondary malls typically price at below replacement cost.

B-grade shopping malls have evolved into an extremely attractive real estate investment product. A B-mall is a regional shopping center that, relative to an A-mall, suffers from advanced age, a secondary or tertiary location, and/or mismanagement. The positive attributes of most B-malls, however, include strong and consistent cash flow production, high leasing demand ...


Mold In Buildings: Issues And Outcomes, Keegan J. Bonebrake Jul 2004

Mold In Buildings: Issues And Outcomes, Keegan J. Bonebrake

Cornell Real Estate Review

Executive Summary
This article will provide an introduction to mold species most commonly found in buildings, and will present potential health and safety effects of such species. Prevention and reasons behind growth of mold in facilities will be discussed, giving examples of both construction and operation prevention techniques. Finally, remediation guidelines and highlights will be presented. These topics will provide a basic understanding of current mold issues, allowing one to fully engage in discussion of the subsequent sections, where current legal issues involved with mold will be presented along with cases dealing with physical, legal, and financial implications of mold ...


Letter From The Editors, Padma Penmetsa, Darren Scott Lake Jul 2004

Letter From The Editors, Padma Penmetsa, Darren Scott Lake

Cornell Real Estate Review

[Excerpt] Dear Readers,
Welcome to the latest issue of the Cornell Real Estate Journal. As real estate is a multidisciplinary profession, our goal for the Journal is to expose readers to articles examining a wide range of topics including real estate law, investment strategy, finance, marketing and international real estate.


Cmbs Fusion Transactions: A Tradeoff Between Credit Quality And Diversity, Baffelly Woo, Jeff Mudrick, Neil Barve, Michael W. Lee Jul 2004

Cmbs Fusion Transactions: A Tradeoff Between Credit Quality And Diversity, Baffelly Woo, Jeff Mudrick, Neil Barve, Michael W. Lee

Cornell Real Estate Review

In recent years, fusion transactions have become the dominant structure in CMBS. Simultaneously, credit support has also come down materially. We find that part of the decrease can be attributed to the benefits of experience and the improving property type mix. However, the biggest factor contributing to the declining credit support is the inclusion of large investment-grade quality loans. These large loans reduce the total expected loss to the trust, but could also weaken the degree of diversification. To quantify the tradeoff between diversity and credit quality, we use Monte Carlo simulations to analyze the impact across the capital structure ...


Foreword, C. Bradley Olson Jul 2004

Foreword, C. Bradley Olson

Cornell Real Estate Review

[Excerpt] Dear friends, alumni and supporters of Cornell’s Program in Real Estate,
We are pleased to present Volume 3 of the Cornell Real Estate Journal. Assembled and presented by Executive Editors Padma Penmetsa and Darren Lake (both MPS/RE ’OS candidates), this year’s edition includes articles prepared by students, faculty, alumni and friends of our Program on topics including formation and impacts of the new Korea Housing Finance Corporation; CMBS Fusion transactions; the potential for hotel overbuilding; retail mall investment strategies; land use rights in China and an original case study on investment in private student housing — an ...


118 Fort Road, Keegan J. Bonebrake, Fuguang Zhang, C. Bradley Olsen Jun 2004

118 Fort Road, Keegan J. Bonebrake, Fuguang Zhang, C. Bradley Olsen

Cornell Real Estate Review

[Excerpt] Background: On July 1, 1998, Jeff O’Ryan, the partner in charge of marketing and leasing for Consolidated Hunter Auctioneers was holding an auction for 118 Fort Road, a 0.6S acre Enterprises, Inc. (“Consolidated”), was reviewing the documents to be submitted for the next day’s bid. Hunter Auctioneers was holding an auction for 118 Fort Road, a 0.6S acre land parcel in the heart of College Center, a small, mixed residential-retail area adjacent to Curtin University (“Curtin”) in Hunter, New York.


Miscellaneous Frontmatter Jun 2004

Miscellaneous Frontmatter

Cornell Real Estate Review

No abstract provided.


The Real Estate Market In The Aftermath Of September 11, Jarl Kallberg, Crocker H. Liu, Paolo Pasquariello Jun 2004

The Real Estate Market In The Aftermath Of September 11, Jarl Kallberg, Crocker H. Liu, Paolo Pasquariello

Working Papers

This study examines the reaction of the financial markets to the terrorist attack on the World Trade Center and how their behavior compared to the subsequent resolution in the corresponding real asset markets. This event provides an ideal setting to evaluate the accuracy of the market’s reaction to external shocks since, unlike almost all studies of economic events, this tragedy was certainly unanticipated and thus absent from pre-existing market expectations, its overall impact was unclear, and the subsequent week of market closure gave market participants sufficient time to sort out the complex impact of the event on market prices ...


Community Acceptance Of Affordable Housing, C. Theodore Koebel, Robert E. Lang, Karen A. Danielsen Jun 2004

Community Acceptance Of Affordable Housing, C. Theodore Koebel, Robert E. Lang, Karen A. Danielsen

Public Policy and Leadership Faculty Publications

Despite historically low interest rates, organizations across the nation have become increasingly concerned about the impacts of regulatory constraints and anti-growth sentiments on the availability and cost of housing. This concern is by no means limited to a few “high cost” areas like Boston and San Francisco. It can also be found in Iowa City, where new single-family houses were recently selling from $150,000 to $375,000 (prices readily considered affordable in many larger metropolitan areas) and even in rural areas where spill-over growth and “drive to qualify” solve the commuter’s affordability problem while creating unforeseen affordability problems ...


Obesity, Educational Attainment, And State Economic Welfare, Martin W. Sivula Ph.D. May 2004

Obesity, Educational Attainment, And State Economic Welfare, Martin W. Sivula Ph.D.

MBA Faculty Conference Papers & Journal Articles

For the first time in history, estimates of the overweight people in the world rival estimates of those malnourished. The World Health Organization (WHO, 2002) ranked obesity among the top 10 risks to human health worldwide. In the early 1960s, nearly half of the Americans were overweight and 13% were obese. Today some 64% of U.S. adults are overweight and 30.5% are obese. Even more alarming, twice as many U.S. children are overweight than were twenty years ago, a 66% increase. Non-communicable diseases impose a heavy economic burden on already strained health systems. Health is a key ...


Borrowing Trouble? Iv: Subprime Mortgage Refinance Lending In Greater Boston, 2000-2002, Jim Campen Feb 2004

Borrowing Trouble? Iv: Subprime Mortgage Refinance Lending In Greater Boston, 2000-2002, Jim Campen

Gastón Institute Publications

The present report is the fourth in the annual series begun by that initial study; it extends the time period covered through 2002, and expands the number of individual cities and towns for which data on subprime refinance lending are provided to 108.

Although motivated by a concern with predatory lending, this study and its predecessors – like all of the other quantitative studies of which I am aware – analyzes and reports on lending by subprime lenders. It is therefore important to emphasize that although all predatory loans are subprime, only a fraction of subprime loans are predatory. While predatory loans ...


Affordable Housing: Who Supply It?, Connie Susilawati, Lynne Armitage Jan 2004

Affordable Housing: Who Supply It?, Connie Susilawati, Lynne Armitage

Lynne Armitage

At the present time, Queensland is experiencing severe demand pressure on housing stock in the South-Eastern metropolitan region and in many regional and coastal centres. Whilst median house prices are still well below Sydney and Melbourne, Australia’s third largest housing market is showing no signs of slowing in the current economic climate of low interest rates and stable levels of employment. Despite the comparatively good affordability of the Queensland housing stock, access for low income and other disadvantaged and minority groups in the state is being eroded rapidly, partly by increased demand and partly by a loss of base ...


More Miscellaneous Frontmatter Jan 2004

More Miscellaneous Frontmatter

Cornell Real Estate Review

  • Master of Professional Studies in Real Estate
  • Advisory Board
  • Student Collaboration Initiative
  • Call For Papers - Cornell Real Estate Review
  • The ING CLARION Most Outstanding Article Award Cornell Real Estate Review
  • AREC: Alumni and Students
  • The Cornell Real Estate Council


Privatization Of Public Housing : Did It Cause The 1998 Recession In Hong Kong?, Lok Sang Ho, Wai Chung, Gary Wong Jan 2004

Privatization Of Public Housing : Did It Cause The 1998 Recession In Hong Kong?, Lok Sang Ho, Wai Chung, Gary Wong

Centre for Public Policy Studies : CPPS Working Paper Series

This paper finds evidence that a public housing privatization program produced adverse effects on housing transactions and the economy in Hong Kong. A scheme announced in December 1997, offering tenants an opportunity to buy their units at deeply discounted prices, reduced public housing tenants’ bids for private homes and adversely affected home transactions. This effect is more pronounced than the effects of the Asian Financial Crisis. An effect on housing prices is also indirectly demonstrated though a demonstration that a structural break in the housing price relationship occurred at the time the privatization program is introduced. Declines in housing prices ...


The Impact Of Hardening In The Homeowner's Insurance Market On Ohio Residential Real Estate Brokerage Markets, Joseph Coleman, James E. Larsen Jan 2004

The Impact Of Hardening In The Homeowner's Insurance Market On Ohio Residential Real Estate Brokerage Markets, Joseph Coleman, James E. Larsen

Finance and Financial Services Faculty Publication

A recently released study sponsored by the National Association of REALTORS® (NAR) documents hardening in the homeowner’s insurance market nationwide; i.e., property insurance premiums have increased sharply and coverage availability has often been limited. The NAR study did not, however, investigate the impact of this hardening on residential real estate transactions, nor did it include an examination of the transactional impact resulting from the increasing propensity of insurance companies to require property modifications as a condition of issuing a policy. In the present study, survey data collected from 406 members of the Ohio Association of REALTORS® (OAR) is ...


The Creative Economy In Maine: Measurement & Analysis, Richard Barringer, Charles S. Colgan, Douglas Denatale, Jennifer Hutchins, Deborah Smith, Gregory Wassall Jan 2004

The Creative Economy In Maine: Measurement & Analysis, Richard Barringer, Charles S. Colgan, Douglas Denatale, Jennifer Hutchins, Deborah Smith, Gregory Wassall

Economics and Finance

The Creative Economy is today a large and important part of Maine’s economy. The data in this study show that both the arts & culture and technology sectors of the Creative Economy are large and growing. Arts & culture industries have exhibited particularly strong employment growth at a time when major parts of our technology industries have seen significant employment declines. Although concentrated in urban areas, arts & culture industries flourish throughout Maine, and it is outside urban counties that this economy particularly blooms during the summer.


Bringing The Environment In From The Cold, Thomas Power Jan 2004

Bringing The Environment In From The Cold, Thomas Power

Articles

The aim of this essay is to present an overview of some of the basic concepts underlying the mainstream approach to the role of economics in the analysis of the causes and treatment of environmental degradation. It evaluates the mainstream view depicted by Helm and Pearce and analyses economic externalities in context, conventional economic approaches and imperfect information.


Effects Of Residential Xeriscape Conversions On Property Values: A Baseline Case Study, Andréa E. Baker Jan 2004

Effects Of Residential Xeriscape Conversions On Property Values: A Baseline Case Study, Andréa E. Baker

UNLV Theses, Dissertations, Professional Papers, and Capstones

The conversion of grass lawns to xeriscape has become more prevalent in the desert Southwest, including here in the Las Vegas Valley. The purpose of this thesis was to determine whether the conversion of residential landscapes from grass lawn to xeriscape influences the property value of a home. This case study involved the comparison of property values for residential homes that had participated in the Southern Nevada Water Authority’s Water Smart Landscapes rebate program and non-participant homes with similar amenities before and after the landscape conversion. The results of the analysis show that xeriscape dose have a potentially positive ...