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 Fri, Sep 25 1992 Date: Fri, 25 Sep 92 04:37:05 EDT Message-ID: 09-25 0000 DECISIONLINE: Real Estate USA TODAY Update Sept. 25-27, 1992 Source: USA TODAY:Gannett National Information Network LENDERS REJECT TISCH PROPOSAL: Olympia & York Developments Ltd.'s construction lenders rejected a proposal by an investor group led by CBS Inc. Chairman and billionaire Larry Tisch for its Canary Wharf development in east London, Lloyds Bank Plc said Thursday. Construction lenders to Canary Wharf voted seven to four at a meeting in New York on Monday against the bid, which was backed by O&Y founder Paul Reichmann. REJECTION LEAVES NINE BIDDERS: Rejection of a bid to revive Olympia & York Developments Ltd.'s Canary Wharf development in London leaves nine other potential bidders for the financially troubled project. Banks are considering a proposal to refinance Canary Wharf buildings if the British government decides to rent space there. Potential tenants have shied away because of lack of public transport facilities. MATERIAL STOCKS UNSTABLE: The first three quarters of 1992 have been like a roller-coaster ride for building material stocks. Expectations for a strong recovery in the housing sector faded as worries about the economy and unemployment continued to linger. Damage caused by hurricanes in the Southeast and Hawaii brought increases in demanded, only to be followed by charges of price gouging. STOCKS OF ROOFING MAKERS VARY: Shares of roofing materials producers Bird Corp., Elcor Corp. and U.S. Intec Corp. have reflected the fluctuation of building material stocks in 1992. Due to an overly optimistic view of a housing-industry recovery Bird has dropped 12.45% year-to-date. Elcor has jumped 46.48%, benefitting from Hurricane Andrew. U.S. Intec's expanded product line has led to returns of 12%. HOUSING DEMAND DOWN: Housing demand in Southern California is sharply down in the first eight months of this year compared to the same period a year ago. TRW REDI Property Data said Thursday the number of homes sold in the five county region dropped by about 15%. Orange and Los Angeles counties were wort hit by the loss of demand. Average home prices in the area have declined marginally, the report said. NEW LOAN FACILITY OPENS: Paragon Mortgage Corp. said Thursday they are opening a new regional mortgage loan production facility in Dallas. The Dallas office will serve as the center for Paragon's expansion throughout Texas and adjacent states. When fully operational the Dallas office alone could increase loan production by as much as $100 to $150 million annually before expansion into other areas. TRUST WINS BIDDING WAR: Health and Rehabilitation Properties Trust said Thursday it was selected by the Resolution Trust Corp. as the winning bidder on a portfolio of performing nursing home mortgage loans. The portfolio consists of loans with total balances outstanding of about $22 million. The loans are secured by 12 nursing homes in Texas, Louisana and Ohio. The bid was $18.75 million. JAPANESE VENTURE TO BUY ASSETS: The joint venture entity to be set up by Japanese banks in December will buy real estate assets that can be easily resold promptly after purchase, Bloomberg Business News said Thursday. The entity will transfer money raised from sales to member banks. The banks are working on the assumption that the government won't provide funds for establishment of the land trust. MORTGAGE PASSTHROUGHS GAIN: Mortgage passthroughs surged 5:8, besting Treasuries for a second day in a row. Mortgage passthroughs began their ascent on the news that initial jobless claims rose 15,000 to 414,000 in the week ended Sept. 12. Issues with 10% coupons continued to lag, however. Traders said investors were lured back to the market by the attractive prices generated by the recent downturn. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 7.89% Thursday, unchanged from Wednesday 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 Wednesday 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% Thursday, unchanged from Wednesday 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% Thursday, unchanged from Wednesday 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 a decrease Thursday, listing at 7.41%. That's down 0.07 from rates of 7.48% Wednesday but up 0.08 from 7.33% the week before. A year ago T-bonds were at 7.88%. 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