Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real,americast.usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Thu, Sep 24 1992 Date: Thu, 24 Sep 92 04:37:35 EDT Message-ID: 09-24 0000 DECISIONLINE: Real Estate USA TODAY Update Sept. 24, 1992 Source: USA TODAY:Gannett National Information Network COLUMBIA BUYS MORTGAGES: Columbia First Service Inc., the mortgage banking subsidiary of Bellevue, Wash.,-based Columbia Bank FSB, said Wednesday it has acquired the mortgage capabilities of Drake Mortgage. Columbia will employ Drake professionals and support staff, and will purchase the company's furniture and equipment. Drake has closed more than $60 million in mortgage loans since Jan. 1. ECONOMY IS STRUGGLING: Reports from around the nation show the economy is still stuck in low gear, the Federal Reserve says in its last look at the economy before the Nov. 3 presidential election. Most economists say the reports suggest a very sluggish economy. Real estate has improved in scattered areas and remains weak in others. Housing starts are up in general, but the industry is weak overall. (For more, see special Economy package below.) MERRY LAND HAS BEST RETURNS: Merry Land & Investment Co., which has concentrated on its portfolio of apartment complexes in the Southeast, has shown the best quarter-to-date returns of all real estate investment trusts. So far this quarter, Merry Land's shares have risen 2 1:8 to close at 11 1:4 Tuesday, a 52-week high. Including dividends, the trust showed a total return of about 25.2%. HOMEPLEX SHOWS WORST RETURNS: The worst performing real estate investment trust quarter-to-date has been Homeplex Mortgage Investment Corp. The trust, which repackages home mortgages into collateralized mortgage obligations, has been hurt by falling interest rates, Bloomberg Business News said Wednesday. Since closing at 5 1:8 on June 30, the trust's shares closed Tuesday at 2 3:8, or 54% down. ALEXANDER'S AGREES TO LEASE: Alexander's Inc. said Wednesday it agreed to lease six New York properties to Bradlees Inc. for $82 million. Alexander's will sell Bradlees three leases for $28.275 million in cash and provide long-term subleases for the other properties. Alexander's, which expects to emerge from Chapter 11 next year as a real estate company, still has four properties and one leased site at the World trade Center. PROPERTY TRUST BUYS PROPERTIES: Property Trust of America said Wednesday that it has acquired four multifamily properties in Denver, San Antonio, and Tuscon, Ariz., for a combined purchase price of $40.3 million. With these acquisitions, The firm has purchased 3,596 multifamily units, which represent a total investment value of about $114.7 million. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 7.89% Wednesday, unchanged from Tuesday but up from 7.84% the week before. They were at 8.95% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.03%, unchanged from Tuesday but down from 5.15% the week before. A year ago they were at 6.83%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.15% Wednesday, unchanged from Tuesday but down from 3.17% the week before. A year ago they were at 5.56%. For the 11th District ARM index, rates were at 5.069%, unchanged from Tuesday but down from the week before. A year ago they were at 6.998%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed an increase Wednesday, listing at 7.48%. That's up 0.01 from rates of 7.47% Tuesday and up 0.15 from -7.33% the week before. A year ago T-bonds were at 7.90%. SPECIAL PACKAGE ON ECONOMY: EAST SHOWS SOME IMPROVEMENT: In the Federal Reserve's most recent report on the economy: The East Coast has experienced modest improvements in home sales and construction, with some setbacks. Home sales are stronger in New England than last year. High vacancy rates on commercial buildings in Manhattan have put plans to build four new office towers at Times Square on indefinite hold. Ohio housing starts are down. SALES ARE UP IN THE SOUTH: New-home sales are up in the Southeast and realtors expect gradual improvement to continue through the end of the year. Hurricane Andrew has sparked rebuilding in Louisiana and Southern Florida. Lower mortgage rates have produced only "scattered signs" of a strengthening real estate market in the Midwest and South central states. MARKET IS WEAK IN THE WEST: Home sales are strong throughout the upper Midwest and Plains states. Home construction is stronger as well. In the Southwest, home construction has grown since the spring. Real estate in the West is weak at best. California's home construction continues to decline and prices of more expensive properties continue to fall. Construction is steady in Washington and falling in Hawaii. (End of package.) Real Estate Editor: Martin Baucom. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM