Mr. Ko received probation sentence for 5 years with surveillance .
- Charged wrong doing for permit/approval with town : asked $50K from tenant(NoRaeBang Biz) of his building to bribe town official for speedy permit
- Due to diabetes and kidney transfer
- Tenant lease signed in Oct, 2010.
- More cases under investigation were not closed…
H –Mart opens store in Paramus
- 60 Rt 17 North ( Ex-Staples store ): Across from GSP mall (can park 100,000 vehicles)
- 25,000 sf / Sea food market & Food court -> place for rest and pleasure
- Will open early next year(2017)
- Total 8 stores in NJ / About 60 stores in US
- New store in Jericho, NY will open 7/22 ( 60,000 sf)
“Bank of Hope” begins operation (Wilshire bank+ BBCN)
- As of 7/30. Head of bank: Kevin Kim / Chairman: SukHwa Ko
- Regional bank emerged: total assets -> $13.1B
- Nationally 90 branch offices will be kept.
The Lowline– world’s first underground park: approved the project on 14th
- former Delancy Underground (Delancy St on lower East Side near Essex St)
- Kept vacant for 60 years
- Underground 1 Ac space à Name Lowline was derived from Highline in Chelsea
- Keep rail roads/ Remote skylights through special lens -> plant will growà Theme park
- Development cost: $60M / Maintenance fee: $4M / year
More e-commerce -> Commercial RE slowing down
- In 2021, e-commerce will take 44% of retail volume.
- Commercial RE will be less demanding -> slowing down
- Nationwide 800 super department stores -> 20 % will be closed.
- Anchor tenants absence -> commercial property value will be affected.
- Overall spending volume increase slowly -> more e-commerce
- Warehouse market becomes strong. (e-commerce store needs storages)
Vacancy rates down, rents rising in North Jersey
- On-line stuffs is filling up New Jersey warehouses.
- Warehouse vacancy rate fell to 5% -> Rent goes up
- Avg asking price was $6.55 -> 26% Up for last 3 years.
- Warehouse under construction -> 714,000 sf.
- Already 2M sf completed in first half of 2016 -> 5% ahead of last year
Landlords reaping the benefits à More rental incomes ever.
- Acc to Commerce Dept, Personal income from rental rose by 4.4% in 1st Qt 2016
- All time high since 1947
- Important trend: homeowners who escaped foreclosure during financial crisis have made out ß -> Renters have faced difficult road.
FHA loan for Condos becomes easier?
- Under 36 years old, 4 out 10 purchased home by FHA loan
- New law: Owner occupancy rate to 35% from 50%(current)
Condo/Townhouse : re-approval process easier ( Every 2 year)
- Expect to increase FHA loans to 48B for next 4 years.
BREXIT Bargain Sale -> Buy more England property.
- Advantage: Weak UK pound currency
- Wells Fargo bought “33 Central”(227,000 sf) at 300M pound -> Europe HQ
- Japan Soft Bank bought “ARM holdings” at 23.4B pound ( Poundàdown/ YenàUp : double profits
- South Africa Stainthorpe Int’l / US AMC Entertainment / US NewsCorp, etc. buying UK properties.