Editors’ Weekly News Roundup August 11 – August 15
The leaders of the National Multifamily Housing Council and the Mortgage Bankers Association welcomed the news that the Federal Housing Finance Agency would raise the cap on Fannie Mae and Freddie Mac investments into affordable housing tax credits. NMHC president Sharon Wilson Géno said, “This step by FHFA is great news for housing providers seeking to use [the tax credits] to build and preserve housing, as well as individuals and families searching for affordable housing opportunities.”
Connect CRE readers applauded, too, making FHFA Doubles Cap for GSE Investment in Low Income Housing Tax Credits our most-read story of the past week. Under the new cap, the GSEs may now invest $2 billion each per year in these credits.
On the subject of investing in properties, the past week’s second most-read story focused on a commercial asset rather than a residential one. Although Exxon/Mobil’s former headquarters campus in the Dallas/Fort Worth suburb of Irving has been on the market for a few years, lately it appears there may be takers for it.
Former ExxonMobil HQ Attracting Interest reported that JLL is marketing the 290-acre site and attracting inquiries from prominent corporations. The energy giant relocated its operations across the state to the Houston suburb of Spring.
Another site that was formerly associated with the energy sector has a new owner. In $1B Manufacturing Plant Slated for Hawkins County, Connect CRE’s third most-read story of the week, we reported that Pivotal Manufacturing Partners acquired 140 acres of land at the former planned Phipps Bend Nuclear Plant in Tennessee.
The nuclear power facility that was to be built at the site was canceled in the early 1980s and the land was given over to advanced manufacturing. That’s exactly what will occur on the 140 acres acquired by Pivotal, which signed Highland Materials to a long-term ground lease.
Two of the leading indicators for inflation were reported last week, and Connect CRE’s sister website, Connect Money, posted breaking news stories when the Bureau of Labor Statistics issued its reports. Both were picked up by Connect CRE. The first of these, U.S. Inflation Holds Steady in July but Core Pressures Tick Higher, was the past week’s fourth most-read story on Connect RE.
The BLS reported that the Consumer Price Index ticked upward on a monthly basis by 0.2% from June, reflecting a slightly steeper month-over-month increase while the year-over-year gain was unchanged. The story was different two days later for the Producer Price Index, which registered a sharp acceleration in July.
Completing the top five was a story about a retailer expanding in a market that is already a stronghold. As reported in Costco On Phoenix Metro Buying Spree, the warehouse club operator’s focus is on building rather than leasing.
The two parcels that Costco acquired will hold Costco Business Centers: smaller format than its traditional Costco Warehouses, with a merchandise mix geared toward small businesses. Earlier this year, the company bought land to build a distribution center, presumably to serve the 20 Costco Warehouse locations in the Phoenix metro area.