NEW JERSEY (NJRE.co) - Jersey Mike's, the quickly expanding sandwich chain, is being acquired by asset management giant Blackstone. In the transaction announced Tuesday, private equity funds managed by Blackstone will be used to acquire majority ownership of Jersey Mike's. The deal is "intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market," the companies said, as well as aid ongoing technological investments. Blackstone and Jersey Mike’s did not immediately disclose financial terms in their Tuesday announcement. But a source familiar with the matter confirmed to The Associated Press that the transaction would value Jersey Mike's at around $8 billion, a figure previously reported by The Wall Street Journal. The acquisition of the private company is expected to close in early 2025, subject to regulatory approvals and other closing conditions. Under terms of the agreement, Jersey Mike’s founder and CEO Peter Cancro will continue to lead the business and maintains a “significant equity stake" in the chain, the companies said. “We believe we are still in the early innings of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights," Cancro said in a prepared statement — adding that Blackstone “has helped drive the success of some of the most iconic franchise businesses globally.” Jersey Mike’s roots date back to 1956, with a Point Pleasant, New Jersey storefront location that was originally called Mike’s Subs. In 1975, Cancro, then a 17-year-old high school senior who had worked there since he was 14, bought the operation with the help of his football coach. The chain has expanded rapidly over the last decade, more than tripling its locations from 857 stores in 2014, to more than 2,800 this year, according to Technomic, a restaurant consulting company. Jersey Mike's posted sales of $3.3 billion in 2023, up 25% from the prior year, according to Technomic. It's the 30th largest chain in the U.S. based on annual sales. Its aggressive growth has helped Jersey Mike's take market share from rivals like Subway, which has been struggling with a glut of aging stores. Last year, Subway was acquired by Roark Capital, a private equity firm with expertise in restaurant management. Roark also owns Inspire Brands, which houses two other Jersey Mike’s rivals: Jimmy John’s and Arby’s. Tuesday's agreement with Jersey Mike's follows a series of similar investments from Blackstone. Just earlier this year, the private equity firm acquired Tropical Smoothie Cafe in a deal that it said would also aid the chain's expansion.

  30YR Fixed 7.09% +0.07% 15YR Fixed 6.48% -0.02%   Existing Home Sales Update: Still Bad Housing was chugging right along in early 2020, then covid happened.  Housing experienced lots of unexpected volatility with the most important development being a huge increase in demand and prices... at first. Once rates began skyrocketing (relatively) and the frenzy began to subside, home sales numbers tanked to the weakest levels since the Great Financial Crisis by the end of 2022. They've been drifting and bouncing around near those same levels ever since. Bigger picture for context: In other words, this data series isn't worth too much discussion until it exits this holding pattern. For those determined to pick out potentially interesting anecdotes, feel free to sort through the following: Prices rose 3.0% year over year.  It's the 15th straight month of increases Inventory has been growing faster than sales have been falling First time buyers accounted for 26% of total, matching the all-time low, but not a crazy drop from 2023's average of 32% All cash sales accounted for 30%, up from 26% last month.

CONSUMER GUIDE: WHY AM I BEING ASKED TO SIGN A WRITTEN BUYER AGREEMENT? If you’re a homebuyer working with an agent who is a REALTOR®, it means you are working with a professional ethically obligated to work in your best interest. As of August 17, 2024, you will be asked to sign a written buyer agreement after you’ve chosen the professional you want to work with. Here’s what you should know about these agreements: What is a “written buyer agreement?” What does it do? A written buyer agreement is an agreement between you and your real estate professional outlining the services your real estate professional will provide you and what they will be paid for those services. Why am I being asked to sign an agreement? Written buyer agreements became a nationwide requirement for many real estate professionals as a part of the National Association of REALTORS®’ proposed settlement of litigation related to broker commissions. The requirement went into effect on August 17, 2024. Are these agreements new? In some places, yes. Many states have required them for years, while some have not. As a result, it is entirely possible you or others you know have not used them in the recent past. Regardless, they are now a nationwide requirement for many real estate professionals. Are these agreements negotiable? Yes! You should feel empowered to negotiate any aspect of the agreement with your real estate professional, such as the services you want to receive, the length of the agreement, and the compensation, if any. Compensation between you and your real estate professional is negotiable and not set by law. In the written agreement, the compensation must be clearly defined (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended or a range. Only sign an agreement that reflects what you have agreed to with your real estate professional. How do I benefit from these agreements? These agreements clearly lay out what services you (as a homebuyer) expect your real estate professional to provide and what your real estate professional will be paid. These agreements make things clear and reduce any potential confusion at the outset of your relationship with your real estate professional. When do I need to sign an agreement? You will be asked to enter into a written buyer agreement with your real estate professional before “touring” a home with them, either in-person or virtually. If you are simply visiting an open house on your own or asking a real estate professional about their services, you do not need to sign a written buyer agreement. Does this mean I have to pay my real estate professional out of pocket? Not necessarily. While you are responsible for paying your real estate professional as outlined by your agreement, you can still request, negotiate for, and receive compensation for your real estate professional from the seller or their agent.   Do agreements dictate a specific type of relationship I need to have with my real estate professional? No—you are allowed to enter into any type of business relationship with your real estate professional allowed by state law where you live. Can I change or exit an agreement? Yes. You and your real estate professional can mutually agree to change your agreement. Agreements may have specific conditions under which they can be exited, so read the text of the agreement and speak with your real estate professional if you would like to change or exit your agreement.

CONSUMER GUIDE: REALTORS’® DUTY TO PUT CLIENT INTERESTS ABOVE THEIR OWN   A REALTOR® is a special kind of real estate agent: one who follows NAR’s strict Code of Ethics, including the first and primary pledge to protect and promote the interests of their clients. This obligation means that a REALTOR® cannot make decisions or provide representation in a way that puts their own interests or commissions ahead of their clients’ interests. What does it mean for a REALTOR® to act in a BUYER’s best interest? A REALTOR® has an ethical duty to tell a buyer about every home available for sale that meets their criteria. That means that REALTORS® will let you know about all available homes, regardless of whether the seller or listing broker is offering compensation to your buyer’s agent—even if compensation offered by a seller or listing broker is less than what you agreed to pay your agent in your written buyer agreement. What does it mean for a REALTOR® to act in a SELLER’s best interest? A REALTOR® should explain to their seller the benefits and costs of the various types of marketing that can be done for a listing, and how potential buyers might respond to such marketing. A REALTOR® is ethically prohibited from telling a seller that their home will be hidden from buyers unless the seller pays a particular type or amount of compensation. What is wrongful “steering”? The REALTOR® Code of Ethics prohibits “steering” buyers toward homes because the REALTOR® will be paid more, or away from homes because the REALTOR® will be paid less. Similarly, the REALTOR® Code of Ethics prohibits a REALTOR® from telling a seller that buyers will be “steered” toward homes because the REALTOR® will be paid more, or away from homes because the REALTOR® will be paid less. How do written agreements protect me from steering? As of August 17, 2024, you will be asked to sign a written buyer agreement before touring a home with the professional you want to work with. NAR’s ethical rules have long encouraged REALTORS® to enter into written agreements with their clients because these agreements promote clarity and transparency. They also help protect you from wrongful “steering” by specifying the amount of compensation the REALTOR® will receive and the services they will provide. Since a broker working with a buyer receives the amount the buyer has agreed to, the amount of any offer of compensation is irrelevant to the buyer-broker’s compensation. Where can I learn more about buyer agreements? NAR has created a dedicated resource on written buyer agreements here. What can I do if I think a REALTOR® is violating NAR’s Code of Ethics? If a REALTOR® acts in a way that places their interests before yours, this is a violation of NAR’s Code of Ethics and should be reported to your state or local REALTOR® Association for investigation and potential disciplinary action.

 

Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List Since the supply of homes for sale is growing and mortgage rates are coming down, you may be thinking it’s finally your moment to jump into the market. To make sure you’re ready, you need to get pre-approved for a mortgage. That’s when a lender looks at your finances, including things like your W-2, tax returns, credit score, and bank statements, to figure out what they’re willing to loan you. After that process, you’ll get a pre-approval letter to show what you can borrow. Here are two reasons why this is essential in today’s market. Pre-Approval Helps You Know Your Numbers While home affordability is finally starting to show signs of improving, it’s still tight. So, it’s a good idea to talk to a lender about your loan options and how today’s changing mortgage rates will impact your monthly payment. The pre-approval process is the perfect time for that. In addition to determining the maximum amount you can borrow, pre-approval also helps you understand this piece of the puzzle. As Investopedia says: “Consulting with a lender and obtaining a pre-approval letter allows you to discuss loan options and budgeting with the lender; this step can clarify your total house-hunting budget and the monthly mortgage payment you can afford.” You should use this information to tailor your home search to what you’re actually comfortable with budget-wise. Since mortgage rates have inched down some lately, you may find you’re able to afford a bit more than you’d expect for your monthly payment, but you still want to avoid overextending. As CNET explains: “In many cases, a lender may preapprove you for more than you need to spend on a home. And while it can be tempting to look at houses outside your budget, it won’t help you in the long run. Before you start touring homes, figure out how much you can realistically afford and stick to your budget.” Pre-Approval Makes Your Offer More Appealing And once you do find a home you want in your budget, pre-approval has another big perk. It not only makes your offer stronger, it also shows sellers you’ve already undergone a credit and financial check. When a seller sees you as a serious buyer, they may be more attracted to your offer because it seems more likely to go through. As Greg McBride, Chief Financial Analyst at Bankrate, says: “Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.” As mortgage rates trend down, more buyers are going to be ready to jump back into the market. And while demand is still limited right now, there’s the potential for competition to pick back up, especially in hot markets. So, why not stack the deck in your favor and make sure you’re putting yourself in the best position possible when you find a home you love? Bottom Line If you’re planning on buying a home, don’t forget to get pre-approved early in the process. It can help you get a more in-depth understanding of what you can borrow and shows sellers you mean business.

You have 3 key opportunities if you’re looking to move this fall. Inventory is growing, homebuilders are motivated to sell, and mortgage rates have come down from their recent peak. Let’s connect if you want more information.

Kushner Breaks Ground on Controversial Colts Neck Project COLTS NECK – Kushner Companies broke ground on its 360-unit residential rental community, Livana Square, previously Colts Neck Manor, after winning a critical state permit that held up the development’s progress for years. The groundbreaking event was held July 31 at 7 County Route 537, a month after the New Jersey Department of Environmental Protection (NJDEP) approved a crucial license requirement for the construction of an underground, computer-controlled wastewater treatment facility to be built on the site. The Treatment Works Approval permit was the final obstacle to the project despite ongoing public opposition. “It’s fair to say that this rezoning and approval process has been a bit controversial,” Michael Sommer, the chief development officer at Kushner Companies, said at the groundbreaking Wednesday morning. Addressing the underlying concerns of residents about the biggest development project in the bucolic township, Sommer said, “We are committed to being responsible members of this community and we will ensure that this will be a first-class operation throughout the development process and beyond. And we’re prepared not just to ask for your trust, but to earn it.” The construction of Livana Square is expected to begin “immediately” with an anticipated completion date of February 2027. Pegged as the “first-ever luxury apartment community in Colts Neck” by the developers, Livana Square will have a modern farmhouse design that pays homage to Colts Neck’s equestrian heritage. The plans include 360 rental residences on nearly 40 acres, with a mix of one- , two- and three-bedroom floorplans – some of which will meet affordable housing requirements – across 15 three-story buildings. The project will have a clubhouse, co-working spaces, outdoor recreation areas, a dog park and the underground Amphidrome septic system that caused the most consternation for several Monmouth County residents and environmentalists. The Amphidrome is an advanced, computer-controlled, underground septic system almost the size of a soccer field. It has come under public scrutiny for its potential threat to Monmouth County’s drinking water supply. The property abuts the state-designated critical-1 freshwater stream Yellow Brook, which feeds into the Swimming River Reservoir. The reservoir supplies drinking water to nearly 300,000 Monmouth County residents. However, Buddy Pinkava, president of Marlin Construction Services, working with Kushner’s in-house construction company on the project, said Amphidrome systems are not new and have been built in the region and nearby. “We’ve built four of them in Monmouth County,” Pinkava said. “This would be the largest, but it’s basically, it’s the same process for each system, and they’ve all been working very efficiently.” Because the septic system has a “very large holding” capacity in case of any wastewater effluent overflow, it will “not impact the Yellow Brook,” he said. The groundbreaking event comes after Kushner Companies spent almost a decade seeking government approvals for the underground sewage treatment system. The project was announced in 2006 and called for 48 townhomes with approximately 14,400 gallons of wastewater per day. The approved project will nearly quadruple the state’s limit of allowed wastewater disposal from 20,000 to 71,500 gallons a day. The state approved the increase in March. The TWA permit, signed June 20, 2024, is valid for two years and can be extended for up to five years. According to details mentioned in the permit approval letter obtained by The Two River Times from the NJDEP, the Amphidrome system “is being accepted by the NJDEP based on the applicant (Kushner Companies) engineering design, experience, review of case studies of similar facilities and professional engineering judgment that the proposed system will adhere to the required effluent limits” approved by the state. The letter further noted that “any failure within the system or improper functioning of the treatment units as designed will require reevaluation and replacement of the system as needed, and all discharge of the effluent must be stopped immediately until all issues are resolved.” Before the developer could receive state approval, the project had to be greenlit at the township and county levels. The Colts Neck Township Committee approved the expanded project to avoid a builders’ remedy lawsuit from Kushner Companies in 2021. A builder’s remedy lawsuit is legal action by a developer to force a municipality to allow higher-density developments than its zoning laws permit. In 2021, then-planning board member David Kostka, who also chaired the township’s environmental commission, said the decision was “very difficult.” At the county level, the Monmouth County Commissioners had to amend the county’s Water Quality Management Plan (WQMP), which ensures clean drinking water for all, to accommodate the needs of the project. In February, the commissioners passed a site-specific amendment to the WQMP, allowing the application to qualify for the last leg of state permits. Regardless of all the resistance, proponents of the project spoke of its benefits. Residents, environmental groups such as the Sierra Club, the League of Women Voters, engineers and others testified to the project’s shortcomings at every level of government. Many banded together to form the grassroots group Concerned Citizens to fight the project. Concerned Citizens challenged the state permits, arguing the NJDEP based its decisions on the developer’s “self-certified” engineer who “misrepresented site conditions” in the material they submitted to the NJDEP. The group commissioned a report in early March from an independent hydrologist who confirmed and identified serious issues with the underground septic system. According to the report, local soils would obstruct proper wastewater treatment and likely cause untreated discharge, such as fecal coliform bacteria, to surface in the Yellow Brook tributary “rather than percolate to aquifer levels as intended.” The report also warned the proposed system could not remove all contaminants. “Most alarmingly,” the report cautions, in case of a system failure, the onsite wastewater treatment system operator would have “less than a day to restore the system to operation or risk a major overflow of raw sewage on slopes above Yellow Brook.” During the groundbreaking event Wednesday morning, Colts Neck Deputy Mayor Tara Torchia Buss acknowledged the concerns expressed by some residents. “A lot of people don’t like change,” she said, but mentioned there are many others who don’t want the “burden of homeownership” and are excited about the project. “A lot of people have these big homes, big pieces of property, and they want to rent but they don’t want to leave their town. So, I do think that there is a need here.” Torchia Buss noted that the township has been working to address its affordable housing obligations, with the Livana Square development being one component of that effort. Torchia Buss said she is reassured by the fail-safes in place for the septic system. If the “monitoring stations go off, then there’s protocols in place,” she said and, given the joint resources of the township, county and the developer, “there’s a lot of support here if something does happen.” The monitoring by NJDEP is “very involved,” she said, and the township’s permitting process inspections “will continue throughout the project and after. It’s a project that everybody will have eyes on, not just during the construction, but when people start moving in.” Marianne Cucolo, the founder of Concerned Citizens, attended the groundbreaking. She said she hopes the project “works out” for the community. “We’ll just have to wait and see,” Cucolo said.

SEA BRIGHT – Six buildings in downtown Sea Bright near the Shrewsbury River waterfront will soon be razed to make way for a luxury development. In July, the borough notified residents that demolition on properties located on Church Street, South Street and River Street is beginning, marking a new chapter for Sea Bright’s western shoreline. The aging properties will be replaced by a residential development to be known as Haven At Sea Bright. “We’re probably about two weeks away” from demolition, said Steven Lidster, director of development at Denholtz Properties, a Red Bank-based commercial real estate investment and development company, in an Aug. 2 interview. “We’re in for demolition permits, we just need to do a little bit more paperwork,” he said. According to Lidster, the buildings to be demolished include a two-family home, some garages and a structure at the end of Church Street that formerly housed an art studio. “They’re not particularly large or complicated buildings, but if we get started in about two weeks, we’re going to work north to south, and we’ll probably finish the demo up in 30 to 60 days,” Lidster said. Plans for the development include the construction of a 15-unit condominium building, 25 town homes and four single-family homes. Toll Brothers, a nationwide luxury home builder, will be responsible for the construction of the townhomes and single-family homes. “On the condo building, I can speak to, we hope to start that next spring and that’s about a 15-month build,” Lidster said. The Haven was originally proposed to the borough in 2018 by Asbury-Park-based Brooks Real Estate Development. After a period of inactivity, in 2022, borough officials signed off on a proposal to transfer oversight of the project to Denholtz Properties and move forward with the site plan as originally approved. Under that plan, the project has a density of 14.81 units per acre. In a 2022 interview, Denholtz CEO Steven Denholtz said all the 44 residential units will be for sale, instead of rentals, and are designed with storm surges in mind; entrances to each unit will be about five feet taller than is required in Sea Bright’s building regulations. The entire development will span 2.97 acres from Front Street to River Street. The single-family homes will each be 3,000 square feet and located between Beach Street and New Street, while seven townhomes will sit between New Street and Church Street. The condominium building will be constructed between Church Street and South Street with 18 additional townhomes to be built between South Street and River Street. The project falls within the borough’s Shrewsbury River Properties redevelopment area, which was designated in 2019 after the planning board’s 2016 preliminary Redevelopment Area study. In addition to luxury housing, Lidster said, “there’s a very large open space element that we have been working with the borough on for quite some time.” “We’ve got about 800 or so feet of frontage on the Shrewsbury River,” he said, which will feature a public walkway along the entire length. A public park, spanning approximately an acre of waterfront, will also be constructed and transferred to borough ownership following completion. Original site plans indicate the public green space will be located next to the public kayak launch on Front Street and River Street. A dog park, small fishing pier and fish cleaning station are also earmarked for this area. In building the waterfront walkway, Lidster said Denholtz will replace the aging bulkhead with a new steel bulkhead and raise it to “match the elevation that the Borough of Sea Bright is raising their elevations to.” The developer is also contributing to the new pump station which is being constructed on River Street. Helping the borough fulfill its “fair share” of affordable housing units, eight of the 44 dwellings will be earmarked for affordable housing, which is in line with future development guidelines in Sea Bright’s 2017 master plan. As demolition begins, Denholtz Properties will be responsible for the site, curb and roadway preparations across the entire development, followed by construction of the condominium building, while Toll Brothers breaks ground on its town- and single-family homes.

30YR Fixed 6.40% -0.22% 15YR Fixed 5.89% -0.26%   Rates Plummet as The Market Buys Into The Big Shift The events of this past week serve as an exclamation point in one of the many sentences that tells the story of the big shift away from the generationally high rates seen at the end of 2023.  The story has had its ups and down since then, but it had been going fairly well for fans of low rates over the past 3 months. In fact, the last 3 months mark the first successful defeat of what had looked like yet another "false start" in the road toward lower rates.  Measured in terms of 10yr Treasury yields, long term rates have only made 3 attempts to drop more than half a percent since they began skyrocketing in 2022.  The first two attempts ultimately gave way to new highs.  If rates had moved just a bit higher a few months ago, it would have happened again. Zooming in on the past year, here's a general breakdown of the key motivations for these swings: May through July could be described as cautiously optimistic due to well-received improvements in inflation data.  During this time, the Fed said it was feeling more and more confident about cutting rates, but that it could be patient due to a labor market that was still rather strong.  Similar sentiments were shared by the Fed as recently as this week, but that was before this week's jobs report came out. Headline job creation (nonfarm payrolls) fell to 114k in July--well short of the forecast consensus of 175k.  In addition, the unemployment rate ticked up to 4.3% from 4.1% and wage growth fell to 0.2% from 0.3% with annual growth hitting pre-pandemic levels for the first time since stabilizing at long-term highs. Bonds and rates were already in good spirits due to bad economic news on Thursday (higher Jobless Claims data and a weaker ISM Manufacturing Index), but the jobs report took the rally to the next level.  Here's how it looked in terms of expectations for the Fed Funds Rate by the end of 2024 (notably, Wednesday's Fed announcement had very little impact on the outlook compared to Thu/Fri econ data): In other words, traders were expecting the Fed to be able to cut rates by half a percent before this week, but now see at least a full point of cuts.  At times like this, short term rates move much more than longer term rates like mortgages. Even so, Friday was one of only a few days in the past 2 decades with as big of a single day drop in average mortgage rates. It's very fair to ask where we go from here.  There is never a crystal ball and the lessons of early 2024 should be kept in mind.  Additional improvement in rates will require a fresh supply of downbeat economic data and there aren't many big ticket reports on the horizon.  Apart from Monday's ISM Services Index, we'll be waiting until the following week for the next installment of the Consumer Price Index (CPI)--the only other report that's as big of a deal as the jobs report these days. Beyond the next 2 weeks, the next month and a half could be particularly volatile.  As it stands, the market is second-guessing the Fed's decision to hold steady this week, and wondering if they'll be playing catch-up in mid September in the event econ data keeps trending weaker.

30YR Fixed 6.40% -0.22% 15YR Fixed 5.89% -0.26%   Mortgage Rates Down to Lowest Levels of The Year It's official!  At this point, you'd need to go all the way back to the end of December 2023 to see a lower average rate for a top-tier, conventional 30-year fixed mortgage.  Today's rates are already fairly close to those late-December levels.  Any further improvement would result in the lowest levels since May 2023.   We were already at 6-month lows yesterday, so today didn't really change the game.  That said, this most recent rally represents an extension of a broader rally that began in May, and that one is definitely a game changer.  These past 3 months mark an abrupt shift in what had been a decisive uptrend in rates in Jan-April. Rates don't necessarily "decide" to spend an entire month doing one specific thing, nor are they guaranteed to remain in the sorts of linear trends seen so far this year.  There are good cases to be made for those trends aligning with the most relevant economic data and events. With that in mind, the events of the past 2 days clearly have the market thinking about additional rate-friendly economic data.  Today's installment consisted of the highest Jobless Claims reading in a year and big miss in an important manufacturing sector index.  This data caused rapid improvement in the bond market which, in turn, allowed mortgage lenders to set lower rates today. Tomorrow's economic data is an order of magnitude more important than today's.  The Employment Situation (aka "the jobs report") will be released at 8:30am ET.  It is one of the two most important reports on any given month and easily has the power to cause a big move for rates in either direction.

Why Markets Can’t Count on Inflation Data for Insight and 5 Other Things to Know Today. Traders are still in the dark about when the Federal Reserve might start cutting interest rates. Even two new inflation data points this week may not provide much more clarity. The producer price index is out Tuesday, and the consumer price index is on Wednesday. The CPI, in particular, has been sticky this year. A large part of that comes down to housing costs, which haven’t slowed as much as the Fed might have hoped, but it could also be statistical noise—and housing counts for a lot less in the Fed’s preferred inflation gauge, the personal consumption expenditures index. Also of note is that labor market data have been heavily revised this year, making them a bit harder to decipher. Morgan Stanley has identified another issue—the seasonal adjustments to the inflation data could be a bit off, making inflation appear hotter in the first half than it will in the second half of the year. If this all seems confusing, you’re not alone. Fed officials are also struggling to get a clear idea of what’s happening. There will be plenty of updates on their thinking, though, with almost a dozen speaking events this week. That includes Chair Jerome Powell on Tuesday. Here’s the bigger picture. Inflation is probably still slowing, even if the data looks bumpy. Consumers’ savings piles from the COVID-19 pandemic are gone, making them even more price-sensitive than they used to be. Retail sales figures and earnings this week from Walmart and Home Depot will add more color there. Pay particular attention to what executives say about the outlook, they’ve got their fingers on the pulse. And Fed officials may well indicate they would like to cut rates, even if the data won’t allow them to yet. That’s a good sign for investors, even if the first reduction isn’t imminent.

Plans to build the country's tallest skyscraper in the heart of Oklahoma City have attracted national and international attention. But not all the publicity has been positive. The 1,907-foot tall Legends Tower, proposed by developer Scot Matteson, would be part of the Boardwalk at Bricktown project planned for what is now a surface parking lot at Reno and Oklahoma Avenues in Lower Bricktown. The Oklahoma City Planning Commission this month recommended the city council approve zoning for a proposed 1,907-foot-high tower but warned they do not like renderings showing extensive use of LED signage throughout the four-tower development.  At the commission meeting, Oklahoma City resident Cynthia Ciancarelli questioned whether building the tallest tower in the United States might make it prone to natural disasters or a target for terrorists.  “Oklahoma City is a playground for investors,” Ciancarelli said. “Who wouldn’t want to invest in one of the of strongest economies in the U.S? But why do they want to build the tallest building in the United States? We have severe storms, earthquakes ― Oklahoma is one-stop shopping (for disasters).”  Would natural disasters really have a strong impact on the building? Here's what we know about plans to construct the tallest building in America: How tall would the proposed building be?The California developer announced plans last month to increase the height of the Legends Tower to 1,907 feet tall — a symbolic figure in that Oklahoma became a state in 1907. This would make the Legends Tower the tallest building in the U.S. and the fifth tallest in the world, the developers say. The tallest is the Burj Khalifa in Dubai, which is 2,716 feet tall. Will the skyscraper be safe from tornadoes, earthquakes?Modern skyscrapers are built to withstand high winds and earthquakes using technology that allows them to sway several feet in each direction without compromising its steel structure. However, if a high-rise building were to be in the midst of a tornado, it would likely sustain severe window damage. When a F3 tornado hit the Bank One Tower in Fort Worth in 2000, 80% of the 35-story tower's windows were destroyed. The building was almost demolished, but was instead converted into a residential tower.When will the OKC skyscraper be built?The project covers more than 3 acres and is planned to host more than 2 million square feet of residential, retail and entertainment development, including two Hyatt hotels, condos, apartments, stores and restaurants.The development will also have a lagoon and boardwalk. Also coming to the area, a new arena for the NBA franchise Oklahoma Thunder, which is expected to cost at least $900 million. Work on the first three 345-foot towers is scheduled to begin this year; the Legends Tower would be built after those are completed. Why was Oklahoma chosen for the country's tallest building?Pointing to a period of growth, Matteson said in a statement that Oklahoma City is "well-positioned to support large-scale projects like the one envisioned for Bricktown.” “We believe that this development will be an iconic destination for the city, further driving the expansion and diversification of the growing economy, drawing in investment, new businesses, and jobs," he said. "It’s a dynamic environment and we hope to see The Boardwalk at Bricktown stand as the pride of Oklahoma City.” Is it even possible to build the tallest skyscraper in the US in OKC?Norb Delatte, an engineering professor at Oklahoma State University, along with Jerome Hajjar, a professor at Northeastern College of Engineering in Boston, both said despite concerns about Oklahoma's location within Tornado Alley, among others, the tower is doable from a structural standpoint. “It’s certainly an unusual and distinctive structure for a city the size of Oklahoma City,” Hajjar said. “A building system like this, along with the surrounding buildings, can be an anchor for transforming the city.” 

The U.S. Supreme Court ruled unanimously on Friday that the government cannot demand hefty development fees from property owners in exchange for building permits. The case is being hailed by the National Association of REALTORS®, and other housing groups, as a major victory for property rights in a fight against what’s been called “exorbitant fees” tacked onto permit approvals in new development projects.  The Supreme Court’s ruling stems from a 2016 lawsuit filed by a California landowner, George Sheetz, after laws through his county government required him to pay more than $23,000 for a “traffic impact fee study” while he tried to obtain a permit to build a 1,800-square-foot manufactured home on his property. The county fees were implemented to help pay for roadwork and infrastructure in the community. Sheetz and his attorneys called the fees “unconstitutional” (specifically saying they violate the Takings Clause of the Fifth Amendment, which bars the government from taking private property for public use without “just compensation.”). After the lower courts sided with the county, Sheetz and his attorneys asked the U.S. Supreme Court to weigh in.  NAR and other housing groups sent letters of support regarding the case to the justices. “Impact fees have real consequences for homeownership in America, particularly with today’s high interest rates and limited housing affordability. Many prospective home buyers are priced out of the market by the tens of thousands of dollars in impact fees imposed on the average property owner,” NAR, the American Property Owners Alliance, the REALTORS® Land Institute, and the California Association of REALTORS® wrote in the amicus brief, filed with the court last year. Nationally, they said, the average impact fee on single-family homes exceeded $13,627 in 2019, while the costs in some states stretched much higher. In California, for example, impact fees average more than $37,000. Also, the housing groups cited housing studies showing how a $1,000 increase in the median price of a new home pushes about 140,000 households out of the real estate market.  The court’s decision will now allow developers and home builders to challenge fees that are commonly imposed by cities and counties to pay for new public improvements and infrastructure. Justice Amy Coney Barrett wrote: “In sum, there is no basis for affording property rights less protection in the hands of legislators than administrators. The Takings Clause applies equally to both—which means that it prohibits legislatures and agencies alike from imposing unconstitutional conditions on land-use permits.” Sheetz’s case will now be sent back to the state courts for further review, given the Supreme Court’s ruling.  NAR vows to continue to advocate for the property rights of homeowners in cases such as these. “Costly and burdensome requirements imposed on property owners, such as obtaining land-use permits as a condition of using or developing their property may be unrelated to the externalities of the development, may artificially increase the cost of real estate,” the association noted in its Washington Report about the case late last year. “At a time when many buyers are struggling to afford or find properties, government action must create certainty and stability in the housing market to promote development, support homeownership, and protect private property rights, which is why NAR is engaged in these various challenges.”