Consumer confidence rebounds

Improving economic conditions boost index to a near 6-year high
Inman News
Consumer confidence bounced back in July to highs not seen in nearly six years as Americans grew more upbeat about the economy, The Conference Board reported today.

The Consumer Confidence Index climbed to 112.6 this month from 105.3 in June, and hasn't been this high since hitting 114 in August 2001.

"An improvement in business conditions and the job market has lifted consumers' spirits in July," Lynn Franco, director of The Conference Board Consumer Research Center, said in a prepared statement. "Looking ahead, consumers are more upbeat about short-term economic prospects, mainly the result of a decline in the number of pessimists, not an increase in the number of optimists. This rebound in confidence suggests economic activity may gather a little momentum in the coming months."

Consumers were considerably more positive about current-day conditions in July than they were in June, as the present situation index also neared a six-year high. Those claiming conditions are "good" increased to 28.1 percent from 27.3 percent, while those saying conditions are "bad" decreased to 14.4 percent from 16.1 percent. Consumers were also more upbeat about the job market, with those saying jobs are "hard to get" declining to 18.4 percent from 20.5 percent and those claiming jobs are "plentiful" improving to 30.5 percent from 27.6 percent in June.

Consumers were also less pessimistic about the short-term outlook, as the expectations index rose to 94.8 from 88.8. Those expecting business conditions to worsen in the next six months declined to 8 percent from 10.8 percent. However, those anticipating business conditions to improve dipped to 15.4 percent from 16.2 percent.

The outlook for the labor market continued to be mixed, as the percent of consumers expecting more jobs in the months ahead was virtually unchanged at 14.1 percent, while those anticipating fewer jobs decreased to 15.1 percent from 17 percent. The proportion of consumers expecting their incomes to increase in the months ahead declined to 18.8 percent from 19.4 percent in June.

The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households.
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East Los Angeles in Transition

The construction of the Gold Line light rail extension has helped spur development.
By: DANIEL MILLER: Los Angeles Business Journal Online
Development plans and another attempt at incorporation signal that East Los Angeles
may be taking the first steps toward a renaissance.

1. Civic Center Plaza

131-255 S. Mednik Ave.

This 30,000-square-foot retail project is directly across the street from the East Los Angeles Civic Center and next to the forthcoming Gold Line station. Developer Mukai Maravilla opened the project in fall 2003. It is widely viewed as a catalytic development that spurred others to build in the area. The property includes 17 retail pads and is fully leased with a Coffee Bean & Tea Leaf and several local businesses. Developer Ron Mukai’s family had owned land at the site for decades, but it took Mukai several years to assemble a contiguous parcel suitable for development.

2. Whittier Clela Shopping Center

5041 Whittier Blvd.

C.E.G. Construction Inc. opened this 14,000-square-foot retail project in 2005. The project, which sits on slightly less than an acre of land, is one of the area’s first new retail centers. Located at the northwest corner of Whittier Boulevard and Clela Avenue, it includes a Cingular Wireless, Little Caesers and Quiznos Sub stores. The shopping center is 90 percent leased, and previously was home to a thrift store owned by the Children’s Hospital of Orange County. That store was damaged in a fire and had been vacant for some time.

3. Starbucks Square

3853 E. Third St.

This is a recently opened 15,000-square-foot retail plaza that fronts the Third Street corridor. It includes a Starbucks, Verizon Wireless store and on-site parking. Developer Charles Co. purchased the parcel, a contaminated former gas station site, five years ago. Charles specializes in redeveloping environmentally challenged sites and previously redeveloped another gas station site in East Los Angeles with an El Pollo Loco.

4. Chavez & Mednik Commercial Plaza

4782 Cesar Chavez Ave.

Construction could begin at this planned retail project by the start of 2008 if it receives county approvals. The shopping center, which will sit on over a half-acre, is being developed by Dokhy LLC. Plans call for four retailers, including a Subway sandwich shop and a Denny’s diner. Developer David Ahdoot, who heads Dokhy, purchased the land for $1.2 million almost two years ago. The parcel includes two buildings that will be razed and a vacant lot at the corner of Cesar Chavez Avenue and Mednik Avenue. The project is near the East Los Angeles Civic Center and the Denny’s would be one of the area’s only sit-down restaurants.

5. Golden Gate Plaza

909 S. Atlantic Ave.

The 1927 historic Golden Gate Theatre building is slated for redevelopment. Listed on the National Register of Historic Places, the theater is owned by the Charles Co., which plans an adaptive reuse of the theater that would bring a drug store – possibly a Walgreens – to the site. An adjacent Starbucks could also be built at the parcel at the corner of Atlantic and Whittier boulevards. The theater was built in the Spanish Churrigueresque style and an adjacent historic retail building that fronted the movie house was razed in the 1990s after sustaining damage in the Whittier Earthquake. Charles has owned the property for three years and is working on the project’s environmental impact report with a planning consultant. The company hopes to break ground at the site within 18 months.

6. Third & Woods Family Housing

5051 E. Third St.

Developer National Core Community Renaissance plans a $17 million mixed-use development with ground floor retail space and 60 workforce housing units at the site of a Red Cross office building. National Core, which purchased the site July 1, plans to build a four-story, 60,000-square-foot building will subterranean parking. Construction would take 14 months. The property will include about 10,000 square feet of retail space and the developer says the community is interested in seeing a sit-down eatery.
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On the Cusp Of Something Big

SPECIAL REPORT: An incorporation drive and development in East L.A. are signs of change.
By: DANIEL MILLER: Los Angeles Business Journal Online
At first glance, it appears little has changed in East Los Angeles.

Along East Third Street it seems the bail bonds shops are among the most thriving businesses, despite their barred and dark windows.

But look more closely and you’ll see something else.

Light rail stations are in the works, and virtually every bus stop boldly proclaims in Spanish – “Llegando 2009 Gold Line”: the rail line will open in two years. Some commercial buildings have been renovated, others are being renovated, and “For Lease” signs are up. What’s more, the unincorporated community is now in the midst of another incorporation drive.

These are among the signs of change, the signs that say the East L.A. of tomorrow will be different from the East L.A. of yesterday and even today.

Several longtime residents say that East L.A. is on the cusp of something big.

“The market has changed in the last five years,” said local developer Ron Mukai. “When I first started, I couldn’t get any national retailer to look at me. They thought East L.A. was like South Central and were afraid of gangs and robbery and they thought people were too poor. It was before people realized the strength in the Hispanic market.”

In at least one way, there is no doubt that change is coming. Backhoes and other big construction equipment line East Third Street, where Metropolitan Transportation Authority crews have already dug a big trench in which the $900 million Gold Line Eastside Extension will pass.

And with the construction underway in earnest, developers have begun to take advantage of opportunities in the dense area near Boyle Heights that is a virtual redevelopment tabla rosa. Indeed, the county recently formed a redevelopment zone in the nearby Whiteside neighborhood, and some success stories are already evident in the heart of East L.A.

Mukai’s firm, Mukai Maravilla LLC, built Civic Center Plaza, which opened in 2003 on East Third Street and includes a Coffee Bean & Tea Leaf. The shopping center does brisk business. And at the other end of community, the Whittier Clela Shopping Center opened in 2005, boasting tenants like Cingular Wireless. The 14,000-square-foot development is now nearing 100 percent occupancy.

How far it all will go is still up in the air. A nascent incorporation drive, if successful, could be the impetus for decades long positive change in an unincorporated county area some community leaders feel has been neglected. But numerous past incorporation efforts have failed.

Moreover, while aging communities such as Burbank have reinvigorated themselves over the past decade, those efforts have come amid the long national economic boom fueled by cheap capital and a robust housing market. If East Los Angeles’ time has come, it may be toward the end of the economic cycle, something that could nip the community’s resurgence in the bud.

“We don’t want to be left behind,” said Oscar Gonzalez, president of the East Los Angeles Residents Association, the chief backer of the incorporation drive. “If you compare what is going on in East L.A. to other parts of the region, we are behind. I don’t think it is because of a lack of political or economic will. I think it is because of stigmas that East L.A. has actually long overcome.”

Transit-oriented development
The Gold Line Eastside Extension will connect East L.A. to downtown Los Angeles and beyond. The rail line ends in the heart of the unincorporated area at the intersection of Atlantic and Pomona boulevards and is expected to be heavily used by local residents who will take the at-grade train to work in central Los Angeles, Pasadena and the San Fernando Valley.

The area is more than 90 percent Latino, and ridership is expected to be heavy because East L.A. has about 150,000 people packed into a 7.5 square mile area. That’s something that hasn’t escaped the notice of developers.

“Any time you have rapid transit, it will entice developers to come,” said Christopher Beck, a broker at Cushman & Wakefield Inc. who brokered land deals for transit-oriented development in Lincoln Heights, near one of the first stops of the existing Gold Line route. “You are able to attract tenants because you have an easy transition to downtown.”

Whittier Boulevard has historically been the area’s commercial corridor, along with Atlantic Boulevard and Cesar Chavez Avenue. These streets, which are near Third Street, are expected to benefit from any economic development spurred by the transit corridor.

Mukai’s Civic Center Plaza, which is at Third Street and Mednik Avenue, includes a mix of local and national retailers and has become a popular shopping destination in the area. The project stands to benefit from the light rail line; a station will be located a stone’s throw from the 30,000-square-foot development.

“I think when the rail line is completed it will significantly increase north-south traffic on Mednik and will make it easier to get around East L.A.,” said Mukai. “Ultimately it is going to help but I think it is going to take time.”

Down the street from Civic Center Plaza, Agoura Hills-based Amcal Multi-Housing Inc. has begun construction of an 85-unit affordable housing complex. The project at 3929 E. Third St. is near the rail stop at the westerly border of the unincorporated area at Indiana Street. The development is slated to be completed in February 2009.

Amcal president Percy Vaz said that there is a significant lack of affordable units in the unincorporated area. His $28 million project, on the site of abandoned homes, will help rectify that.

“There has been very little development in the unincorporated part of the county and the need is immensely critical,” said Vaz. Amcal has already completed a $107 million Gold Line-adjacent mixed-use project in Montecito Heights. “There is opportunity to satisfy that need all along the Gold Line.”

The county’s Department of Regional Planning oversees development for the unincorporated area and is considering the creation of a transit oriented district along the East Third Street corridor that would set development standards for the area.

Development in the district would be governed by a county planning ordinance that encourages sidewalk cafes, plazas and colonnades, among other amenities. It also could result in the rezoning of some property to make the area better suited for development. A preliminary study of the district was done in March and planners hope to meet with community groups by the end of the year.

The district could be created in two years, and developers say it couldn’t come fast enough, given the challenges in the area. Several developers said it has been difficult to assemble parcels to create projects that make economic sense. Mukai, for example, had to assemble 30 parcels over several years to build his shopping center.

“You have different pockets of things that could be assembled and developed. It takes political will and vision, but those things will happen over time,” said Tony Salazar, a principal in the development firm McCormack Baron Salazar, which developed the Aliso Village housing project in Boyle Heights.

Complicated development issues have led some in the community to call for incorporation, saying that a city government could better address such localized issues.

Incorporation, again

A renewed incorporation movement for East L.A. has picked up steam, with local businesses and politicians supporting the drive. Supporters say that cityhood will better allow East L.A. to control its economic destiny, though the area already has something of a city hall in the East Los Angeles Civic Center adjacent to a planned Gold Line stop.

Gonzalez’s East Los Angeles Residents Association hopes to put the issue to vote in November 2008 but first must collect the signatures of at least 25 percent of the registered voters in the area in order to formally raise the issue with a county commission that oversees cityhood drives.

There are 33,875 registered voters in East L.A, and the association is in the process of conducting an initial fiscal analysis of incorporation. In order for cityhood to move to the ballot, the residents much show that their community would be financially self sustaining.

The cityhood movement so far has promise. Not only are leading residents and local businesses behind it, but some local political leaders, such as state Senate Majority Leader Gloria Romero, D-East Los Angeles, are supporting it.

“What Harlem signifies for the African American community, East L.A. signifies for the Mexican-American, Latino community. It encompasses a culture and a beat and there is momentum to move into cityhood,” Romero said.

For her part, Los Angeles County Supervisor Gloria Molina is officially taking a neutral stance on the topic. The supervisor is taking a wait-and-see approach, adding that “if that is the way they (area residents) want it to go then we will.”

Still, it’s widely agreed that cityhood would give the local stakeholders more of a say in development issues – everything from traffic to the large mixed-use projects that are being planned for the area. And many believe that development is coming regardless of cityhood.

“For about 40 years you couldn’t get developers to put a nickel into East L.A.,” said Roger Moliere, MTA executive officer of real property management and development. “There has been a lot of interest and I don’t have any reason to believe we won’t have more interest as we move forward.”
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Urbanist explosion

Realtors are paying attention to a growing group of buyers who want hip, higher-density living in pleasant surroundings - like Hollywood, not downtown.
By: Diane Wedner: Los Angeles Times
Living in suburbia is as appealing to Katherine Winston as a prime-rib dinner is to a vegetarian.

"There will always be people with suburban tastes," said the 30-year-old television-marketing manager. "I definitely am not one of them."

That's why she and her Realtor husband, Darren Winston, 30, are moving into Kor Group's Sunset Silver Lake loft-style condominiums in Los Angeles, one of several new residential projects in Southern California geared to what marketers are calling "nouveau" buyers - those roughly between the ages of 25 and 45 who want an urban environment but don't necessarily dig downtown.

This shared desire to be urbanists while avoiding the urban hub has been recognized by the building industry, which is jumping onboard with condo conversions, lofts and apartments in areas once considered residentially undesirable. In the vicinity of Hollywood and Vine alone, 2,500 upscale condos and apartments will soon be available.

"Urbanists can walk or take a bike to restaurants, pick up their newspaper downstairs, but don't have to deal with the inconveniences of downtown blight," said Randy Jackson, president of the Planning Center, a private urban-design firm in Costa Mesa.

For this emerging niche market of buyers, decisions about where they live far outweigh what they're living in.

"There's been a sea change in preference, from product to place," said Shyam Kannan, director of research and development for RCLCO, a nationwide real estate consulting firm. "Place is much more important."

In Southern California, those "places" filling the bill include Silver Lake, Hollywood, Marina del Rey, Fullerton and Pasadena - towns boasting hip, higher-density living in pleasant surroundings.

These buyers - mostly Generation Xers (ages 27 to 42) as well as adventurous boomers (43 to 61) and some from Generation Y (26 and younger) - want neighborhoods with ethnic diversity; flexible indoor space; communal outdoor living areas; ground-floor retail; nearby bars, clubs, restaurants and culture; and a place to grab coffee on a Sunday morning that's just a few steps away.

"These are educated, sophisticated buyers who want to connect with neighbors," said Lupe Sanchez, marketing manager for John Laing Homes Urban, which broke ground in March 2006 on Ma- drone, a 180-unit development of studios, flats and penthouses ranging in size from 700 to 2,300 square feet just south of the Hollywood Boulevard and La Brea Avenue junction. "They care about the lifestyle, not which counter tops and flooring they're getting."

It's a movement that appears to be gaining momentum. According to a 2006 analysis of housing-preference estimates by Arthur C. Nelson, director of urban affairs and planning at Virginia Tech, 38% of today's consumers prefer attached housing, compared with 25.4% historically. And although 54.2% of today's occupied homes are single-family detached structures on large lots, the percentage of consumers who actually want that is as low as 25%.

"Across demographics, people of all ages living in large homes in spread-out neighborhoods said they don't like it," RCLCO's Kannan said of the analysis of thousands of respondents. "People are seeking others to socialize with."

Although plugged in by computers and cellphones, Katherine Winston says that her peer group wants to be part of a social network and "not just the 500 friends on MySpace. We want to actually live close to our friends."

The Winstons recently bought a 1,324-square-foot, two-bedroom loft for $650,000 in Silver Lake. The new development is made up of 43 single-, two- and three-level units in four buildings connected by landscaped courtyards and featuring patios and balconies. Two of Katherine's work colleagues live in Silver Lake, so she can carpool to work, a bonus.

A stone's throw from Sunset Junction - the area where Sunset and Griffith Park boulevards come together - the Winstons will have access to the weekly farmers markets, annual street fair and the nearby Casbah Café, where they can dine alfresco and mingle with neighbors.

"We've always been adamant about living in or very near the city," Winston said.

If Silver Lake is high on the coolness curve, then Hollywood and Vine is off the charts. Clubs, restaurants, theater and history converge there, attracting condo buyers to the converted Equitable office building.

The fabled corner also is where the Kor Group has turned the landmark Broadway department store, built in 1927, into Broadway Hollywood, a 96-unit loft complex set to open early next month. Most of the lofts are 1,300 to 1,400 square feet, with expansive windows that take in views of the Capitol Records building, the Hollywood Hills, the Pantages Theater and the Westside. Katsuya restaurant and a Pinkberry will occupy part of the ground floor. The building will have a doorman and valet parking. All but five ofthe units have been sold.

The Broadway Hollywood lofts feature stainless-steel kitchen appliances, 1930s-style penny tile in the bathroom, red-oak floors with walnut stain and walk-in closets. Prices range from $500,000 for the smallest lofts to just under $3 million for a 2,200-square-foot penthouse. The roof, open to all residents, has cabanas, an outdoor fireplace, pool, Jacuzzi, a fitness room and big views.

Sanju Surtani, 35, an agent for a real estate marketing and sales company, recently kicked her single lifestyle up a notch by leaving the small rental house she shared near the Grove shopping center and buying her own 1,263-square-foot Broadway Hollywood loft, which listed at $820,000.

"My friends and I find this lifestyle easier," Surtani said. "We work a lot, and in our time off it feels like we're in a hotel. We have a real connection to the city."

For those who find that part of town too noisy and crowded, Element in Marina del Rey has urban amenities but comes with ocean breezes too. Developed to appeal to the sensibilities of the "creative class"- architects, designers, writers, artists, actors -- this John Laing Homes development of 50 lofts (and 77 condos at its neighboring project, Indigo) is for "people who love the loft look but don't want downtown L.A.," said Kathy Kerr, director of sales for Laing's Los Angeles/Ventura division. Construction will be completed early next year.

About 64% of Element buyers are single, and 70% are under age 40. The five-story concrete buildings are short on personal storage space but give owners options for creating flexible interior spaces. Buyers can walk to Abbot Kinney Boulevard in Venice and are minutes by car from LAX.

Leo Ulrich, 40, a marketer for a dinnerware company, currently lives in a Hancock Park house and said he can't wait to get into his 1,150-square-foot Element loft, which he purchased for $500,000; the remaining 10 or so available units now go for about $600,000. Indigo condos originally listed for the high $400,000s.

"I gave up on every other place I was looking at," said Ulrich, who travels often. "It's the exact location, price and eclectic group I like."

Much to the surprise of designers, nouveau buyers are not impressed by the bells and whistles that typify high-end, new-home features, such as remote controls for turning on ovens.

More important to these buyers is the flexibility of space they get in lofts and high-ceilinged condos.

Above all, nouveau buyers just want a neighborhood vibe.

"In the 1950s, the American Dream was 'Leave it to Beaver,' " consultant Kannan said. "Today it's 'Friends,' 'Seinfeld' and 'Grey's Anatomy.' We like to be around people."
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5 Real Estate Investments to Cash In On

Some investors are becoming cautious of real estate because they have read too many frightening stories in the media, but Business Week magazine’s analysts continue to say that real estate is a key component of investment portfolios.
By: David Bogoslaw: REALTOR® Magazine Online
In this week’s magazine they identify five ways that investors can currently benefit from real estate.

1. International Real Estate Investment Trusts. U.S. REITs are going through a bad patch, says Jay Hutchins, president of Comprehensive Planning Associates in Lebanon, N.H. Instead, he advises clients to buy foreign REITs or mutual funds that are focused on global real estate.

2. Cash investments in commercial space. Office buildings, retail properties, and apartment houses provide stable cash flows, says Michael Kuziw, vice president of asset management at Lenox Advisors in New York City. But such investments require a portfolio of at least $1 million.

3. Invest an IRA in real estate for the long haul. Entrust Northeast, in Verona, N.J., which administers self-directed retirement accounts, allows for a wide range of investments, including first and second mortgages.

4. Consider buying a vacation homes outside of the U.S. For example, consider a country like Panama or Costa Rica where the political situation is stable and prices are affordable.

5. Fractional homeownership. This is gaining popularity and is within the reach of people with moderate incomes. For instance, Private Quarters Club in Fernandina Beach, Fla., and Lake Geneva, Wis., sell access to a three-bedroom luxury villa for 21 days a year for $79,000, plus an annual fee of $4,000.
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6 Ways to Quickly Boost Credit Scores

"Individuals can positively affect their credit scores in as little as three weeks," says Edward Jamison, a Los Angeles-based credit attorney.
REALTOR® Magazine Online
As lenders tighten their underwriting guidelines, borrowers are wise to raise their credit scores to qualify for loans, secure better loan terms, and receive lower interest rates.

"Individuals can positively affect their credit scores in as little as three weeks," says Edward Jamison, a Los Angeles-based credit attorney. "It's just a matter of getting educated and focused on the best, fastest, and most reliable course of action."

Jamison, who you may know as a credit expert on the NBC show, “Starting Over,” offers these six tips for improving credit strength quickly.

1. Know your limits. Borrowers should first check their credit limits and evenly distribute the balances they're carrying to help increase their credit scores, or better yet, pay them off in full to get the highest score increase. "Make sure your maximum limit is reported," Jamison says. "When no limit is reported, credit scoring software presumes the account is maxed out."

2. Bring the balances near zero. The credit scoring software scores more favorably to those with a closer balance to zero. Balances over 70 percent damage credit the most, followed by the next tier of 50 percent and then 30 percent of the maximum credit limit. "Rather than carrying a large balance in an unfavorable tier, redistribute outstanding balances over several credit cards," advises Jamison.

3. Don’t cancel your cards. "Closing credit card accounts can hurt your score unless the accounts were opened less than two years ago, and you have over six credit cards," Jamison says. Fair Isaac's credit scoring software assumes that people who have had credit for a longer time are at less risk of defaulting on payments.

4. Eliminate late payments (but ask nice). Get rid of late payments listed on the credit report. "Contact the creditors that report late payments and request a good faith adjustment that removes the late payments reported on your account," Jamison says. The creditor may work with you, but it may require more than one phone call; patience is required. Your odds of success will dwindle if you're rude or unclear about your request, he adds.

5. Get rid of collection accounts. But only if the collection agency agrees to delete them in return. Paying them off can otherwise actually lead to a decreased credit score due to the date of last activity getting updated to the current date when you pay. The consumer should contact the collector and request a letter explicitly stating the agreement to delete the account upon receipt or clearance of the payment, Jamison says. Not all collection agencies will delete reporting, but it's certainly worth the effort.

6. Pay off past due amounts on accounts that are not in charge-off status. After that, Jamison advises getting rid of charge-offs and liens that are less than two years old. "Charge-offs and liens that are older than 24 months do not affect your credit score nearly as much as ones under 24 months," says Jamison. "But if they're newer than 24 months, they can seriously damage your credit." If you have both charge-offs and collection accounts, but have limited funds, pay off the past due balances first, then pay collection accounts as long as the collectors agree to remove all references to credit bureaus.
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Seven Simple Steps to Raising Credit Scores

In the wake of the subprime market fallout, lenders are making it tougher for consumers to get a loan.
RISMEDIA
As a result, borrowers are wise to try to raise their credit scores to qualify for loans, secure better loan terms and receive lower interest rates.

According to Edward Jamison, a Los Angeles-based credit attorney who has appeared as a credit expert several times on the NBC Emmy Award-winning show, Starting Over, borrowers can follow seven simple steps to raise their credit scores. “The steps required to raise credit scores may appear counterintuitive,” explains Jamison. “In fact, individuals should be warned that without knowledge of how credit scores are derived, individuals can be damaging their credit scores rather than raising them when taking such actions as closing credit cards.”

Jamison, whose legal practice is focused on consumer credit repair and restoration, recommends that borrowers wishing to raise their credit scores first check their credit limits and evenly distribute the balances they’re carrying to help increase their credit scores, or that they pay them off in full to get the highest score increase.

“Make sure your maximum limit is reported,” says Jamison. “When no limit is reported, credit scoring software presumes the account is ‘maxed out’.” The credit scoring software scores more favorably the closer a balance is to zero. Balances over 70% damage credit the most, followed by the next tier of 50% and again by the tier of 30% of the maximum credit limit.

“Rather than carrying a large balance in an unfavorable tier, redistribute outstanding
balances over several credit cards,” says Jamison.

Jamison also advises keeping credit cards open.

“Closing credit card accounts can hurt your score unless the accounts were opened less than two years ago, and you have over six credit cards,” states Jamison, adding that consumers should make sure to keep their old credit cards open as well. “Fair Isaac’s credit scoring software assumes that people who have had credit for a longer time are at less risk of defaulting on payments.”

Borrowers also need to get rid of late payments listed on the credit report. “Contact the creditors that report late payments and request a good faith adjustment that removes the late payments reported on your account,” instructs Jamison. Since you are a customer in good standing, the creditor may work with you. This may require more than one phone call. “If you’re frustrated, rude or unclear with your request, you’re making it very difficult for the creditor’s representative to help you,” adds Jamison.

A very important step is for consumers to rid themselves of any collection accounts by paying them off provided the collection agency agrees to delete them in return. Paying it off can otherwise actually lead to a decreased credit score due to the date of last activity getting updated to the current date when you pay.

“The consumer should contact the collector and request a letter explicitly stating their agreement to delete the account upon receipt or clearance of the payment,” he states. “Although not all collection agencies will delete reporting, it’s certainly worth the effort.”

Next, consumers should pay off past due amounts on delinquent accounts that are not in charge-off status. After that, Jamison advises getting rid of charge-offs and liens that are less than two years old.

“Charge-offs and liens that are older than 24 months do not affect your credit score nearly as much as ones under 24 months,” says Jamison. “But if they’re newer than 24 months, they can seriously damage your credit.” If you have both charge-offs and collection accounts, but have limited funds, he advises paying off the past due balances first, then paying collection accounts that agree to remove all references to credit bureaus.

“Individuals can positively affect their credit scores in as little as three weeks,” explains Jamison. “It’s just a matter of getting educated and focused on the best, fastest and most reliable course of action to raise one’s credit score.”
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Hollywood’s Biggest Real Estate Project Unanimously Approved

This week, the Los Angeles City Council unanimously approved Blvd6200.
RISMEDIA
Located in Hollywood, adjacent to the historic Pantages Theatre, the 1.1 million square foot development will feature a broad-array of community benefits that address numerous goals and objectives of the Community Redevelopment Agency (CRA) and the Los Angeles City Council. Developed by The Clarett Group, a New York-based firm, the $400 million mixed-use project will be environmentally sustainable (LEED qualified), and will serve as a model for an interactive lifestyle.

“I am pleased the Los Angeles City Council gave its full approval for Blvd6200,” said Eric Garcetti, Los Angeles City Council president. “This project is Hollywood’s most ambitious privately-funded, large-scale redevelopment project to date.”

Designed by Santa Monica-based Van Tilburg, Banvard & Soderbergh (VTBS Architects), Blvd6200 is situated on a seven-acre site that spans both sides of Hollywood Boulevard at Argyle Avenue east of Vine Street. The project will feature a diversity of architectural styles that will combine to create a dynamic urban streetscape. The high-density development will include more than 1,000 residential units of new, market-rate rental-housing of which 10% will be affordable; 40,000 square feet of live/work/office space; 175,000 square feet of retail/restaurant uses; 12,000 square of open, public plazas; and adequate underground parking for all uses, including the Pantages Theatre.

“Blvd6200 will transform parking lots into new-housing opportunities, retail and restaurant destinations that will revitalize Hollywood Boulevard, while ensuring the continued success of the Pantages Theatre for generations to come,” said Veronica Hackett, managing partner for The Clarett Group. “We are especially proud of our voluntary inclusion of affordable housing and the green building characteristics of Blvd6200.”

Blvd6200’s retail/restaurant component has been designed as urban street-front retail that will activate the Boulevard to create an inherent sense of security that comes with a thriving community.

“By casting the legendary Pantages Theater as the centerpiece of this major project, Blvd6200 will bring a dynamic mixed-use community into Hollywood while respecting the area’s heritage. The addition of new retail and dining opportunities will be pivotal in the transformation of Hollywood Boulevard. Moreover, the developer’s commitment to adhering to the City’s green-building initiatives will serve as a model for other projects that follow,” said Antonio Villaraigosa, mayor for the City of Los Angeles.

Adjacent to the Hollywood/Vine Metro Rail Red Line Station, Blvd6200 will also offer MTA promotional plans to its tenants, as well as include parking for 10 Flex Cars, which will allow for the sharing of cars among numerous residents. Tenants who own hybrid vehicles will receive preferential parking.

The seven acre development site for Blvd6200 is owned by The Nederlander Organization, headed by James Nederlander, Sr. The land assemblage was completed without eminent domain or displacement of any residential tenants. Nederlander also owns the Pantages Theatre and recently completed a full-restoration of the cultural and historical landmark that is Los Angeles’ version of “Broadway.”

“Winning unanimous approval from the City Council is a tremendous victory, but it also reflects the unprecedented level of community support that has been generated from more than a dozen civic and neighborhood associations,” said Frank Stephan, senior managing director for The Clarett Group.
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NAR: Home Prices to Recover in 2008

The latest economic forecast by the NATIONAL ASSOCIATION OF REALTORS® shows home prices recovering in 2008 as housing inventory falls from current levels.
REALTOR® Magazine Online
“Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,” says Lawrence Yun, NAR senior economist. “But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state.”

NAR says existing-home sales will begin picking up late this year, rising to a total of 6.11 million for 2007 and 6.37 million in 2008. Those numbers are both lower than last year's 6.48 million.

Meanwhile, new-home sales are projected to reach 865,000 in 2007 and rise to 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.8 million last year.

Prices Expected to Rise for New, Existing Homes

Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800.

The median new-home price should rise 2.2 percent to $245,400 next year following a 2.6 percent drop in 2007 to $240,100.

“Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,” Yun says. “Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters.”

Other Predictions: Mortgage Rates, Jobs, GDP

The 30-year fixed-rate mortgage is estimated to average 6.7 percent during the second half of this year, and fluctuate around 6.6 percent in 2008.

Growth in the U.S. gross domestic product (GDP) will probably be 2 percent in 2007, compared with a 3.3 percent growth rate last year; GDP is forecast to grow 2.8 percent in 2008.

The unemployment rate is likely to average 4.6 percent in 2007, unchanged from last year. Inflation, as measured by the Consumer Price Index, is projected at 2.6 percent in 2007, down from 3.2 percent last year. Inflation-adjusted disposable personal income should rise 3 percent this year, up from a 2.6 percent gain in 2006.
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L.A. Property Values Continue to Soar

L.A.’s real estate juggernaut continued to roll last year as assessed values in the county jumped 9.3 percent to top $1 trillion for the first time.
By: HOWARD FINE: Los Angeles Business Journal Online
According to figures from Los Angeles County Assessor Rick Auerbach, the total assessment roll for the county hit $1.04 trillion as of the end of 2006, up 9.3 percent from the previous year. Though that’s below the 11 percent increase during calendar year 2005, it’s still well above the 28-year average increase of 7 percent.

Auerbach said the increase was driven largely by home sales. Even though the volume of sales fell slightly, that was more than offset by the large changes in price. Also, L.A. County hasn’t seen the huge spike in new home construction that other counties have, meaning the supply of homes is more limited.

Also contributing to the increase was a larger-than-usual gain of 6 percent in business equipment values. “This is an exceptionally strong figure,” Auerbach said, “especially considering that most business equipment depreciates over time. To offset this, a huge amount of new equipment must have been purchased.”

The substantial gain in assessed values represents good news for local government coffers. Excluding utilities, non-profit holdings (churches, etc…) and certain homeowner exemptions, the total assessed value was nearly $998 billion. Roughly one percent of that, or $1 billion, is split among various local governments, that’s up about $84 million from 2005 levels.

Among local communities, the northern outposts of the county – Lancaster, Palmdale and Santa Clarita – saw the biggest gains in assessed valuation last year, with Lancaster topping the list at 21 percent. Auerbach said new residential and commercial construction were the main factors.

Two inner-city communities also saw substantial gains: Paramount (17 percent) and Compton (13.6 percent). Auerbach said the conversion of an idle asphalt plant into a functioning diesel fuel facility accounted for much of the increase in Paramount, while Compton saw an above-average turnover of long-occupied homes. Under Proposition 13, homes that haven’t changed hands in many years see huge increases in valuation when they finally do change hands.

While no cities saw decreases in assessed value, the four cities making up the Palos Verdes Peninsula saw some of the smallest single-digit gains in valuations. Auerbach said this reflects a sharp drop in the volume of home sales in these cities.
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NAR: Pending Home Sales Down, Some Regions Up

The forward-looking Pending Home Sales Index shows existing-home sales may ease but should stay fairly close to present levels in the months ahead, according to the NATIONAL ASSOCIATION OF REALTORS®.
REALTOR® Magazine Online
The index, based on contracts signed in May, rose in the West and Northeast but fell in the Midwest and South. The national index stood at 97.7 in May, dropping 3.5 percent from a downwardly revised April index of 101.2. That number is 13.3 percent lower than May 2006 when the reading was 112.7. In April, the index was 10.4 percent lower than a year earlier.

The Consumer Confidence Impact

Lawrence Yun, NAR senior economist, says that housing activity continues to be impacted by tighter lending criteria and a lack of buyer confidence. “Some transactions are being postponed from mortgage market disruptions,” he says. “But better supervised lending will put housing in a fundamentally healthier state over the long term."

Mortgage purchase applications are trending up, with some of the rise due to buyers reapplying for alternatives to subprime financing, Yun says. “Nonetheless, home sales should stay close to present levels in the months ahead given an accumulating pent-up demand,” he adds. The pent-up demand results from slow household formation, which is significantly below levels that would be expected in a period of job creation and economic growth.

“As consumer confidence improves, home sales will rise,” Yun says.

Regional Breakdown

Here’s what happened across the United States with the PHSI:

    • West: rose 5.6 percent in May to 95.4 but was 13.7 percent below a year ago.
    • Northeast: increased 3.8 percent from April to 93.1 but is 9.6 percent lower
      than May 2006.
    • South: fell 7.6 percent in May to 107.2 and was 15.4 percent below a year ago.
    • Midwest: dropped 8.9 percent in May to 89.4 and was 11.7 percent below May 2006.

The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed (sales usually are finalized within one or two months of signing). An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.
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