Shangri-La Industries, a company that turns motels into homes for homeless people in California, has declared bankruptcy for four of its projects.

This happened because the state thinks they did something wrong with the money they got to do these conversions. The projects affected are in Redlands, Thousand Oaks, Salinas, and San Ysidro.

These were part of Project Homekey, which helps homeless people find places to stay during the pandemic. The state gave Shangri-La Industries over $121 million for these projects, which shows how important they were.

Why It’s a Problem

This bankruptcy is not just about Shangri-La Industries. It shows a bigger issue in real estate, especially when it’s about helping people.

The company couldn’t pay back its loans and got into legal trouble with the state, which says they lied and broke promises. This mess has made city officials unsure about what will happen to the projects for homeless people.

It’s also made people look into Shangri-La’s other projects, finding more problems with money and fights in court.

Similar Story in Chicago

What’s happening with Shangri-La Industries is a bit like what happened with Michael Collier’s Hotel Capital in Chicago.

Both companies were in financial trouble, so they turned hotels into shelters for homeless people.

This was a way to deal with money problems and help the community. It’s a sign of a trend where real estate is used for different purposes when there are money issues, especially during the COVID-19 pandemic.

What It Means for Real Estate and Helping People

The bankruptcies of Shangri-La Industries and Hotel Capital show how tricky it is to mix real estate and helping people. These cases show how hard it is to make projects work financially while also helping society.

They also show that there needs to be good rules and management to make sure these projects don’t fail because of money problems.

The troubles Shangri-La and Hotel Capital had made people think about what’s going to happen with other projects that aim to help people.

What Should Happen Next

What’s going on with Shangri-La Industries and Hotel Capital is a warning about mixing real estate and helping people.

It shows that we need more honesty, openness, and new ideas when we’re trying to do good things with real estate.

As the real estate world deals with the effects of COVID-19 and how it’s changed what communities need, we should learn from these bankruptcies to make better plans for helping people and keeping real estate projects going.

Douglas Elliman Development Marketing has hired Laura Tomana as senior vice president of market data and research, a move that aims to boost the brokerage’s research abilities, especially in Florida.

Tomana, who previously worked as a senior economist at the Real Estate Board of New York (REBNY) and Brown Harris Stevens Development Marketing, brings a lot of experience in real estate research and market analysis.

Her focus on planning before development, like pricing, floor plans, finishes, and amenities, is expected to give Elliman an advantage in the Florida real estate market.

Tomana’s hiring shows that Douglas Elliman is serious about improving its research, by making more trend reports and getting more data sources.

This is important in Florida, where there isn’t as much public information about new developments compared to places like New York City.

Tomana wants to improve reporting and analyzing data in South Florida, which could change how people understand market opportunities and development strategies.

Douglas Elliman has been expanding in Florida, starting a rental division in South Florida two years ago, opening its first Gulf Coast office in Sarasota, and recently opening an office in Santa Rosa Beach in the Panhandle.

They also led sales for a 52-unit condo project where the Surfside collapse happened, showing their growing role in Florida’s new development market.

Tomana’s expertise in market data and research will be key in guiding these expansions, making sure projects meet market needs and trends.

Hiring Laura Tomana isn’t just about adding someone to the team; it’s about Douglas Elliman shifting towards using more data in the Florida real estate market.

By using Tomana’s knowledge of economic analysis and market research, Elliman aims to improve real estate development and marketing in the region.

This not only makes the brokerage more competitive but also brings a higher level of understanding to Florida’s real estate scene, potentially changing how market research and development planning are done in the state.

Whitestone REIT is in a big fight with Erez Asset Management, showing how tense things are getting between real estate investment trusts (REITs) and investors who want to make changes.

Erez, which owns 1.3 percent of Whitestone, wants to change who’s on the REIT’s board. They want their two people, including their founder, to be elected.

They’re not happy with some of Whitestone’s decisions, like turning down a takeover offer from Fortress Investment Group and selling assets for less than they’re worth. This fight is part of a bigger trend where investors are challenging REITs on how they run things and make money.

The Big Deal

The battle between Whitestone and Erez isn’t just about who’s on the board. It’s about bigger problems in the REIT world. Erez says Whitestone has been buying expensive and selling cheap, which hasn’t been good for shareholders.

They want Bruce Schanzer, their founder, and Catherine Clark on the board, but Whitestone wants to keep its old members. This fight is expensive. Whitestone has already spent $400,000, and it could go up to $1.2 million.

It makes us wonder whether companies should focus on making money now or plan for the long term, especially when the real estate market is unpredictable.

More Investors Speaking Up

The Whitestone-Erez fight is part of a bigger trend where investors are getting more involved in how REITs and other investments are run. Just like when Saba Capital challenged BlackRock’s management, these fights are happening more often.

Investors like Erez and Saba don’t just want better operations; they also want clearer rules, better leadership, and changes to make shareholders happier. These fights show that company bosses and investors often see things differently when it comes to making companies better for everyone.

What This Means for Real Estate

The battle between Whitestone REIT and Erez Asset Management, along with others like it, shows that investors are getting more active in real estate.

These fights can lead to big changes in how companies work, who’s in charge, and even how they do business. For everyone who invests in real estate, these fights show that it’s important for companies to listen to what shareholders want, especially in a market where one wrong move can be costly.

They also show that investors like Erez and Saba are getting more power to change how companies are run, which could mean companies need to work harder to make and keep their value.

In a big move to change how short-term rentals work, Airbnb has introduced its “Icons” category. It’s a collection of unique places to stay that mix famous brands and celebrities with cool buildings.

One standout place is a house in Abiquiu, New Mexico, inspired by the movie “Up.” It promises a desert adventure, lifted by a crane for safety. This new idea shows how Airbnb is getting creative with hosting and wants to make sure guests have unforgettable experiences.

A New Way to Stay

The “Icons” category features places like Prince’s “Purple Rain” house and the Ferrari Museum. It’s Airbnb’s latest effort to give travelers more than just a bed for the night.

By adding pop culture and movie themes to its listings, Airbnb is tapping into people’s desire for unique travel experiences. It’s like going back to Airbnb’s early days, when it was all about magic and fun, even with the challenges it faces now.

What This Means for Airbnb and Rentals

Airbnb’s move into iconic, experience-based rentals comes at a crucial time. It faced a loss of $349 million and an earning of $2.22 billion in the last quarter.

The “Icons” category could be a game-changer, making more people interested in using Airbnb again. But it also makes us wonder if these special places can keep going with all the rules and competition.

Airbnb’s “Icons” category is a big step in how we think about travel and places to stay. It’s not just about a bed anymore, it’s about amazing experiences.

This could change how we travel, making it more personal and special. But it also shows that Airbnb needs to keep coming up with new ideas to stay ahead in a changing market.

Institutional Shareholder Services (ISS), a big company that advises shareholders, says Boeing investors should say “no” to CEO David Calhoun getting $32.8 million for his work at the annual meeting on May 17.

They’re saying this because Boeing has had a tough time, especially in January when one of its planes had a problem with a door while flying. Even though Calhoun didn’t get a yearly cash bonus in 2023, his pay went up by 45% compared to last year.

This big raise was mostly because he got a lot more money in long-term bonuses for the third year in a row. ISS thinks the reasons the company gave for giving Calhoun more money aren’t very good, especially since his pay has gone up a lot since he became CEO in 2020.

What ISS Is Saying

ISS is worried about how Calhoun’s pay is set up, especially a big bunch of company shares he’s supposed to get over a short time.

These shares were supposed to match some he bought in late 2022. But ISS says this, combined with the big increase in his long-term bonus, might make investors wonder.

Also, ISS noticed that Calhoun uses private jets a lot, which cost $514,285. They say this is way more than most other CEOs of big companies pay for private flights.

Boeing’s Money Troubles

Boeing’s been having money problems too. Their share price was $179.79 on Friday, which is 29% less than at the start of the year.

In January, a Boeing 737 Max plane had to make an emergency landing because of a problem with a door while flying for Alaska Airlines.

After that, the Federal Aviation Administration stopped some 737 Max planes from flying for a while. In the first three months of this year, Boeing lost almost $4 billion, and they had to pay $443 million because of the problem with the Alaska Airlines flight.

What the Board and Leaders Think

Even though ISS says Calhoun shouldn’t get so much money, they’re still saying investors should vote to keep him and other board members, like David Joyce, who’s in charge of safety for aerospace stuff.

ISS agrees Boeing has a lot of work to do to make airlines, passengers, and regulators trust them again, but they think keeping Joyce is okay, but just barely.

Analysts think real estate stocks will do well soon. They believe they could go up by as much as 16 percent in the next year. This is because the Federal Reserve, which controls interest rates, says it won’t raise them for a while.

This is good for real estate because it usually does better when interest rates are steady.

The Federal Reserve’s Decision Helps Real Estate

The Federal Reserve’s decision about interest rates is really important for the real estate market. By saying they won’t raise rates and will keep them high, they’ve made investors feel more confident.

This is according to Gregory Kuhl from Janus Henderson Investors. He thinks that even if interest rates don’t go down, real estate stocks could still do well. Many other experts agree, saying that just the fact that rates won’t go up could kickstart the real estate sector.

Getting Through Tough Times

Even though people are optimistic about real estate, there are still problems. Not many companies are buying or merging, and what the Federal Reserve does affects the market a lot. But this situation also offers good opportunities for long-term investors.

The S&P 500 Real Estate Index is much cheaper now compared to how it usually is, which means it’s a good time to buy in.

Experts like Michael Carroll from RBC Capital Markets think certain parts of real estate, like industrial spaces, housing for seniors, single-family rentals, and data centers, could be especially good investments if Treasury yields stay steady.

Seeing Both Sides

Real estate’s future depends a lot on what the Federal Reserve does with interest rates, but there’s more to it than that.

The costs of borrowing money should stay steady, and real estate stocks are cheaper than usual right now, so it’s a good time to invest, especially in specific parts of the market.

However, investors should be careful because Treasury yields could change, and the real estate market is sensitive to what’s happening in the economy.

In a surprising move that shows how city real estate is changing, Honore Properties bought an office building in the West Loop area of Chicago for only $4.8 million. This is much less than the $14 million it sold for in 2019.

The building is at 118 South Clinton Street. This purchase, at less than $67 per square foot, tells us a lot about how offices in downtown areas are being valued and used differently now.

The plan is to turn this 72,000-square-foot building into 70 apartments. This shows a big change happening where offices are being changed into places for people to live. This is because there’s a high demand for places to live, but many old office buildings in cities are not being used.

Turning Offices into Homes

Honore Properties, which is led by Michael Shenouda, wants to change this seven-story office building into homes. This isn’t just a business decision; it’s also following a trend in the market and city planning.

The mayor of Chicago, Brandon Johnson, wants to make downtown areas more lively by changing offices into homes. The city is giving $151 million in taxpayer money to help with this.

Honore has already successfully turned other buildings into homes, like one on 19 South Wabash Avenue and an old Archdiocese of Chicago office building.

Making Cities Better

This change in the Clinton Street building is a big deal in city real estate. It shows how office and home spaces are becoming more similar.

The building’s design, with elevators and open spaces, is perfect for homes. The cost to make this change is about $10 million. This is a big investment in making cities better without needing help from the government.

This move not only takes advantage of the current market but also sets an example for making cities more livable by using what’s already there.

A New Way for the West Loop

Honore Properties buying and changing this building is part of a bigger trend. It shows how buildings are being used for different things, like mixed-use developments.

This is important in the West Loop area of Chicago, which is ready for changes and growth. By turning this empty office building into homes, Honore is not only changing how it looks but also helping the area’s economy and community.

This project is a good example of how real estate can solve city problems and can be a model for other cities facing similar challenges.

Renting a place can be a big deal, especially in a big city where prices are high.

Experts say you shouldn’t spend more than about 30% of what you earn before taxes on rent. A study gathered data from government websites and real estate places in Asia to see how much it costs to rent in big cities.

Here are the prices for renting a one-bedroom apartment and buying property per square meter in some of Asia’s major cities:

Mumbai, India:

• Rent: $481
• Buying price per square meter: $3,882

Hanoi, Vietnam:

• Rent: $688
• Buying price per square meter: $2,280

Jakarta, Indonesia:

• Rent: $698
• Buying price per square meter: $1,726

Kuala Lumpur, Malaysia:

• Rent: $735
• Buying price per square meter: $3,903

Manila, Philippines:

• Rent: $805
• Buying price per square meter: $3,813

Taipei, Taiwan:

• Rent: $816
• Buying price per square meter: $17,551

Bangkok, Thailand:

• Rent: $1,080
• Buying price per square meter: $6,485

Tokyo, Japan:

• Rent: $1,216
• Buying price per square meter: $8,837

Hong Kong:

• Rent: $2,173
• Buying price per square meter: $25,802

Singapore:

• Rent: $4,590
• Buying price per square meter: $16,619

In 2023, Asia’s housing market slowed down because of a weak economy and high prices, according to a report.

Hong Kong’s housing market faced problems as construction slowed down and prices dropped.

Prices for homes in some parts of Southeast Asia like Ho Chi Minh City, Vietnam, and Malaysia also went down.

But cities like Taipei and Singapore kept going strong, with prices going up.

Generally, the housing market seems to be getting better as prices ease in many places and banks stop raising rates.