A near-silence on housing in the presidential debate, newly listed homes with sketchy histories and the sad demise of a funnyman’s restaurant chain. From the wild and wooly world of real estate, here are our Hits and Misses for the week of Sept. 9-13.
Miss: An Unspoken Issue. Anyone hoping to get insight on how former President Donald Trump and Vice President Kamala Harris would address the problems facing the housing market were left without a clue during this week’s presidential debate. ABC News moderators David Muir and Linsey Davis failed to ask any housing-related questions, even though homeownership affordability and elevated rental housing costs are among the prime economic issues facing many Americans. Trump didn’t bring up the topic, but Harris admitted “we have a shortage of homes and housing, and the cost of housing is too expensive for far too many people” – although she conveniently forgot to mention this situation became exacerbated during the Biden-Harris administration. Harris briefly cited her plan to offer $25,000 in down payment assistance to first-time homebuyers, but never dwelled on the details of this plan. We can’t say who won the debate, but anyone expecting a serious discussion of housing issues was the evening’s loser.
Miss: What’s Going on Here? The Venezuelan crime gang Tren de Aragua made their presence known in Colorado by taking over several apartment complexes in the city of Aurora, and now the gang has turned up operating out of a historic hotel in El Paso, Texas. This week, a judge ordered the shuttering of the hotel that the gang used to stage such activities as assault and prostitution. The idea that a Venezuelan crime gang is taking over and ruining residential and commercial real estate is nothing short of astonishing, and one must ask: What will be the next city and next property that these thugs ruin? And, for that matter, where are the FBI, the Department of Homeland Security and the Department of Justice in addressing this crisis?
Hit: A Home with a Curious History, Part 1. It is not unusual to learn about listings for homes that were featured in classic television shows, but there is a new listing in Greensboro, North Carolina, for a residence that appeared on a television program that is not associated with luxury or family-friendly living. The 8,616-square-foot home was featured on the reality show “Hoarders,” which focuses on people with compulsive hoarding disorder who turn their residences into disgusting piles of overflowing clutter. According to the New York Post, the home last changed hands in 2015 for $415,000 at a foreclosure auction and extreme cleaning specialist Matt Paxton was hired to fix the property, but he found the 31-room, four-story house was so packed with junk that he was initially unable to navigate through half of it. Today, after extensive and expensive clean-up, the property is awaiting a buyer willing to pay $5.25 million while overlooking its messy past.
Hit: A Home with a Curious History, Part 2. Sean “Diddy” Combs has listed his Beverly Hills, California, for $61.5 million, a mere six months after Homeland Security agents raided the estate in a reported sex trafficking investigation. Realtor.com noted the rapper and music producer paid $39 million in 2014 for the 17,000-square-foot mansion featuring 10 bedrooms and 13 bathrooms. The listing for the property boasts a “state-of-the-art theatre that can accommodate 35 people” along with a “swimming pool with waterfall and grotto, basketball court, spa house and an outdoor covered loggia with BBQ, bar, and pizza oven.” Just what the feds found in their raid of the property has yet to be disclosed – and for the sake of the next owner, let’s hope the gun-toting agents won’t return for a follow-up search.
Miss: Another Restaurant Chain Closes: This week, the vegan-focused fast-food chain Hart House shut down all four of its locations in Southern California. The chain opened 2022 with motormouthed comic Kevin Hart as a partner and frontman in the endeavor. The restaurant sector has been struggled since the pandemic, with many standalone eateries and restaurant chains shutting down amid a difficult operating environment. Hart House CEO Andy Hooper announced the closure in a statement to the food service media outlet Eater that didn’t dwell on what went wrong. Instead, Hooper said, “The response to the product has been incredible, and we thank our committed team, our customers, and our community partners for helping make the change we all craved, and for their unwavering support of Hart House.”
Hit: A Picture-Perfect Donation. The Art Institute of Chicago announced it received a $75 million gift from attorney Aaron I. Fleischman and educator Lin Lougheed that will fund an expansion of the celebrated cultural venue. The new Aaron I. Fleischman and Lin Lougheed Building will house galleries for the museum’s collection of late 19th century, modern, and contemporary art. This is the single largest naming gift in the Art Institute’s history, and museum president James Rondeau declared, “We are beyond grateful to collaborate with Aaron and Lin to imagine the future of our campus. Their exceptional generosity and vision will allow our aspirations to become a reality and I am grateful for their dedication to Chicago, and to serving our visitors for generations to come.” The Art Institute is one of the world’s greatest museums and we can hardly wait to see this new addition come to life.
Phil Hall is editor of Weekly Real Estate News. He can be reached at [email protected].
Photo of Kevin Hart courtesy of Hart House
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Prior to the debate, Harris made brief mention of her proposal to build 300K, or so, affordable housing units during her 4 year tenure. No mention of planning or paying for it or for the requisite infrastructure systems. Also, no mention of the effect on the size of the flood plain or the resulting insurance costs, neither premiums nor the almost inevitable future claims. How does all this fit into the affordabiiity equation?