Sunday, May 4, 2008

FW: [CCIM GEN] Commercial Arena Update

 

 

Thanks, Sean..

_____________________

Sean M. Broderick, CCIM

Pacific Pride Properties

209-642-4133 (direct)

866-579-0796 (fax)

 

Notice: This transmission is for the sole use of the intended recipient(s) and may contain information that is confidential and/or privileged.  If you are not the intended recipient, please delete this transmission and any attachments and notify the sender by return email immediately.  Any unauthorized review, use, disclosure or distribution is prohibited.

 

From: CCIM MailBridge on behalf of Pete Alvarez, CCIM [mailto:no-reply@ccim.com]
Sent: Friday, May 02, 2008 6:35 PM
To: sbroderick98@comcast.net
Subject: [CCIM GEN] Commercial Arena Update

 

CCIM MailBridge General Message

Fellow CCIM's

Snap shot of the Market place by product type:

Abundant Economic data this month…some is even encouraging..
Office Segment:  is softening with vacancies rising and absorption falling (medical office's ok …)
Retail Market :  concerns about consumer spending continue to rise causing the market to be down from '07 levels   (grocery stores are doing good!)…
Multifamily:  healthy, as demand continues to grow faster than supply in most places…rents still increasing.  Supply of condos converted to rentals is being absorbed easily in most metro  as potential homebuyers remain renters due to 1. lack of credit availability, or 2. desire to wait until residential  prices fall further before buying a home...
Residential:   …not much good in this sector. Many economists are projecting further declines in values before a market clearing pricing level can be reached…most are projecting this will occur late this year and first half of next year.
CMBS/CDO markets still dormant and the life insurance companies are cherry picking but leaving a lot of deals on the table.
 Consensus is that commercial real estate fundamentals are still sound   …supply and demand are relatively balanced, delinquencies and defaults are low, Although slower, rents and NOI are increasing   and  the construction arena is not  out of whack w/ projected demand.

 

Have a great day.

 

Pete Alvarez, CCIM 

 

 

 


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Wednesday, March 5, 2008

LEED Certifications

Received an email today from Jim Nowak regarding LEED certifications in California from the California Centers Magazine:

InSITES: "GOING GREEN"

(CALIFORNIA CENTERS MAGAZINE) "Going Green” is the new catchphrase for the shopping center industry. A speech by former President Bill Clinton to the ICSC Spring Convention in 2006 encouraged the industry to set an example to developers in all sectors by building environmentally sensitive projects. This year’s Spring Convention contained an elaborate exhibit dedicated to sustainable building initiatives, offering examples of projects around the globe and the methods they used to conserve natural resources.

But in California, sustainable design is nothing new, encompassing everything from lighting to water usage to recycling and using recycled materials, according to developers and architects with projects there. At least 50 retail stores are pursuing Leader in Energy Efficient Design (LEED) certification,the current standard for sustainable design created by the United States Green Building Council. The Golden State has been “green” for years.

“The state of California has had its own energy code for quite some time,” said J. Tipton, (Tip) Housewright, a principal of Dallas-based architecture firm Omniplan. “The rest of the country is catching up.” The trend has been decades in the making. In fact, in 1978, the state established Energy Efficiency Standards for Residential and Nonresidential Buildings, a code that has been regularly updated, most recently in 2005. (The next update will be in 2008). Additionally, in December 2004, California Governor Arnold Schwarzenegger signed an executive order requiring all new and renovated state-owned facilities meet the LEED Silver standard, with the goal of reducing electricity consumption in state buildings by 20% by 2015. Through the order, and the Green Action Building Plan, the state also hoped to push private developersinto observing sustainable practices.

Individual municipalities have done more: In December 2005, the Pasadena City Council passed an ordinance requiring all new commercial and residential construction to be LEED-Certified at a minimum. Developers exceeding the minimum qualify for a rebate from Pasadena Water and Power. Pleasonton, too, now requires a minimum of LEED Certified for commercial projects. “California has the advantage because there are codes and laws already on the books,” adds Lance Collins, a LEED-accredited senior designer at Long Beach, Calif.-based Perkowitz + Ruth Architects, which has advised several municipalities, including the cities of Long Beach, Pasadena and Los Angeles on their programs.

But few codes make specific provisions for the unique needs of shopping centers, which operate much longer hours than office projects. Even so, designers and developers say, retailers and the shopping center industry has been embracing “green” initiatives for quite some time, pursuing energy savings for more basic financial reasons. British supermarket chain Tesco has proclaimed its intention to build sustainable stores as it enters the United States in California, Nevada and Arizona with its Fresh and Easy concept. Few retailers have been as committed to “green” building as Wal-Mart, whose initiatives have ranged from changingits display lighting to LED to regulating idling by its truck drivers.

Major developers including Cleveland-based Forest City Enterprises and Chicago-based General Growth Properties have created sustainable development divisions or initiatives. California developers are looking at each development project-by-project, adapting to each market’s needs. “Westfield historically has been a strong supporter of community and our efforts to make our shopping centers more environmentally friendly have continued, with an increased focus over the past year or two on developing a global approach to these sustainability issues,” said Frank Lowy, chairman of Sydney-based Westfield (which owns 24 centers in California), at the company’s annual meeting in May.

The initiatives being pursued or followed encompass a variety of construction elements. But each development requires a unique solution. “Most people are looking on a national basis,” said John M. Genovese, senior vice president of The Macerich Co., Santa Monica, which owns regional malls throughout the state. Macerich is now beginning to look at various opportunities to improve the sustainability of its centers, Genovese said, ranging from relatively simple equipment replacements to using recycled materials during a renovation process. “All of our projects are different, and our initiatives depend on the situation.The chance to be green is great for the environment.”

Lighting, the largest single energy cost, has long been a focus of sustainability: The installation of skylights in both new enclosed malls and retrofits was as much about reducing energy costs as ambience.“Natural lighting is something stores in the rest of the country can focus on,” said Alexandre Sims, a project manager for the Irvine, Calif., office ofarchitectural and engineering firm BSW International. “There is a definite benefit to being in more natural light.” Even more affordably, lamps can easily be substituted in the same fixtures, Housewright suggests. Westfield, which has 24 centers in California, is engaged in a major interior and exterior lighting retrofit, and has completed 12 centers in San Diego, Los Angeles and New Jersey.

Another possibility is a center producing energy itself, such as with solar panels, which would seem particularly ideal in largely sunny areas such as California.Westfield, in fact, has recently completed a substitution of continuous electric power to solarpowered photocells on two Southern California centers, and is evaluating the results for a possible portfoliowide retrofit. Macerich is examining some possible initiatives, including placing solar panels on the covering of surface parking.

But solar cells are not an easy panacea. The panels are heavy, and few existing centers can bear the additional rooftop weight. Yet roofing can still provide a number of alternatives. Most centers in the 1980s were built with a simple “black”roof.Today’s technology can include an Energy Star-rated single-ply white roofing membrane, which reflects more light and is therefore cooler. “That can reduce the energy load by 8% to 10%, without adding a lot of weight,” said Mary Kell, a LEED-accredited architect with BSW International. “Another easy step is to look at the mechanical, such as HVAC, and go to Energy Star-rated units,”Collins said.Even restaurants can begin to utilize more efficient appliances, Sims adds.

Energy is only one component of sustainability. Recycling of waste materials has long been practiced at existing centers around the country. Now, recycled materials may be used in center construction. “More and more materials are coming out that were recycled just for that purpose,” Genovese said. In fact, Macerich recycled 83% of materials resulting from the demolition of the vacant anchor spaces that precipitated the current redevelopment at The Oaks in Thousand Oaks, Calif. “You can look at everything, from the materials you use, to new flooring” Housewright said.“Even reusing a building’s shell is sustainable.”

Another major factor is water. Conservation of water resources is increasingly becoming a concern throughout thestate, even to determining the viability of some developments. “In some areas, you couldn’t build unless you had enough water credits,” Sims said. “It even affected the ability to do a simple addition.”

Westfield is testing a “weather track” smart irrigation system in San Diego, which tracks weather forecasts and adjusts irrigation schedules accordingly. Landscaping retrofits now are done with droughtresistant plants, the company told California Centers. Using pervious paving, which permits more runoff to run back into the ground, instead of asphalt in parking lots is another way to conserve water. Low-flow plumbing fixtures are another relatively simple replacement recommended by several designers.

Other initiatives are less obvious, such as using more local materials to cut back on transportation. Regardless of which systems and techniques are used, going green can have a number of benefits beyond long-term sensitivity to the environment. Lowering energy consumption can obviously save costs over the long-term, and increasingly communities are either requiring sustainable initiatives or look morefavorably on them during the permitting process.

“One thing that we’ve seen is that [green developments] attract a different [more upscale] tenant,” Collins observed. Those tenants tend to pay higher rents, creating yet another benefit. Another possibility, Genovese notes, is that excess power could be sold back to the community’s grid system. With all of these initiatives, however, few centers are pursuing LEED certification. More than 50 projects in the state have applied for the designation, according to the USGBC, but big boxes dominate the list.

But just because a project hasn’t applied for the certification doesn’t mean it isn’t compliant, Kell notes. “The process is a bit complicated,entails a lot of paperwork and is very expensive, ” Kell said. “There are a lot of buildings that are LEED Silver, but have not been certified. But the benefit is still there.”

Green building could cost marginally more, with estimates ranging from as little as 2% for basic compliance to up to 10% to achieve LEED Platinum status. But costs are declining, speeding payback and making sustainable building even more attractive. And as a result, no one expects “green” building to go the way of other development trends, such as the power center craze or design fads. The benefits – financial, environmental and social – are too strong to be ignored. And as usual with development trends, California has been ahead of the curve. “It is a true change, a necessity,” Collins said. “And something that is soon to be mandatory.

-CALIFORNIA CENTERS MAGAZINE (949-305-8600)


Jim Nowak, CCIM
President

Site Systems, Inc.

Tuesday, February 26, 2008

Fwd: OFHEO NEWS RELEASE



Thanks, Sean..

Sent from my iPhone

Begin forwarded message:

From: "Russell, Corinne" <Corinne.Russell@OFHEO.GOV>
Date: February 26, 2008 7:12:04 AM PST
To: OFHEO-HPI@LISTS.OFHEO.GOV
Subject: OFHEO NEWS RELEASE
Reply-To: ofheo.inquiries@OFHEO.GOV


 
 

OFHEO SEAL



Contact:

Corinne Russell

(202) 414-6921

 

Stefanie Mullin

(202) 414-6376


For Immediate Release
February 26, 2008

WIDESPREAD HOUSE PRICE DECLINES IN FOURTH QUARTER

Pockets of Strength Remain; Coasts, Midwest Show Biggest Declines

WASHINGTON, DC – U.S. home prices fell in the fourth quarter of 2007 according to OFHEO's seasonally-adjusted purchase-only house price index.  The index, which is based on data from home sales, was 1.3 percent lower on a seasonally-adjusted basis in the fourth quarter than in the third quarter of 2007.  This decline was substantially greater than the 0.3 percent price decline between the second and third quarters. Over the past year, prices fell 0.3 percent, as the fourth quarter decline erased earlier price gains.


OFHEO's all-transactions House Price Index (HPI), which includes data from home sales and appraisals for refinancings, showed less weakness than the purchase-only index.  The all-transactions HPI rose 0.1 percent over the latest quarter and 0.8 percent over the latest year.

The figures were released today by OFHEO Director James B. Lockhart, as part of the quarterly report analyzing housing price appreciation trends.  "Although prices for home purchases in the quarter fell in every state except Maine, only 16 states plus the District of Columbia showed price declines for the full year 2007," said Lockhart.  "While the market weakness is most significant in areas that saw the greatest price run-ups during the boom, other states have clearly not been immune to recent declines."

"The year 2007 showed  the first four-quarter decline in the purchase-only index since its earliest data in 1991," Lockhart added.  "However, both OFHEO's purchase-only index and the all-transactions index show relatively greater house price stability than do other nationwide house price indexes.  That may reflect, in part, the greater stability in the prime, conforming mortgage market served by the Enterprises than in other segments of the mortgage market," said Lockhart.

New in this release are monthly purchase-only indexes through December 2007 for the nine Census Divisions and the U.S.  The new series indicates that seasonally adjusted prices declined 0.2 percent in December across the U.S., on average.  This is the sixth consecutive monthly decline, bringing the total drop from the April 2007 peak to 2.4 percent.

"Given the recent turmoil in housing markets we thought it would be helpful to provide a greater amount of information about price trends," Lockhart said.

Beginning in March and on a monthly basis thereafter, OFHEO will provide news releases containing updated monthly indexes, with a two-month lag.  For example, the March release will include January data.  OFHEO's quarterly house price releases will continue and will include both the quarterly and monthly information.

Nationally, house prices grew at a much slower rate over the last year than did prices of non-housing goods and services. While the national purchase-only house price index fell 0.3 percent between the fourth quarters of 2006 and 2007, prices of other goods and services rose 4.3 percent.  The real price of homes thus fell 4.6 percent over the latest four quarters.

"While the declines are significant and quite large in some areas, the market still needs to work through its overhang of unsold inventory," said OFHEO Chief Economist Patrick Lawler.  "How much further down that inventory will ultimately push prices will depend on a number of factors, including what happens to interest rates and the overall health of the U.S. economy," Lawler said.

Significant Findings:

Purchase-only Index:

1.     The four-quarter decline in the purchase-only index was the first since at least 1991Q1 (the first period covered by that index). 

2.      Prices fell between the third and fourth quarters in every state except Maine.

3.      Every Census Division also experienced a price decline between the third and fourth quarters. Prices were weakest in the Pacific Census Division, which experienced a 4.5 percent price decline in the quarter.

All- transactions HPI:

4.      The states with the greatest rates of appreciation between the fourth quarter of 2006 and the fourth quarter of 2007 were: Utah (9.3%), Wyoming (8.3%), North Dakota (7.9%), Montana (6.9%), and Alaska (6.0%).  The states with the lowest rates of appreciation for the same period were: California (-6.6%), Nevada (-5.9%), Florida (-4.7%), Michigan (-4.3%), and Rhode Island (-2.6%).

5.     The Metropolitan Statistical Areas (MSAs) with the greatest rates of appreciation between the fourth quarter of 2006 and the fourth quarter of 2007 were: Wenatchee, Washington (13.7%), Houma-Bayou, Louisiana (12.2%), and Grand Junction, Colorado (12.0%).  The MSAs with the lowest rates of appreciation for the same period were: Merced, California (-19.0%), Modesto, California (-15.5%), and Stockton, California (-15.3%).

6.      Of the 291 cities on OFHEO's list of "ranked" MSAs, 192 had positive four-quarter appreciation and 99 had price declines.

7.      Of the 20 ranked cities with the greatest price declines over the latest four quarters, all but two were in California or Florida (Nevada and Michigan accounted for the remainder).

The complete list of state appreciation rates can be found on pages 25 and 26. The complete list of city (MSA) appreciation rates is available on pages 32 – 49.

Highlights

Details concerning the new monthly indexes can be found in the "Highlights" section of this report.

The Highlights section also includes a description of some technical changes that have been made to the way in which OFHEO's national indexes are computed.  The changes improve the weighting system that is used in constructing the index, but generally do not have a dramatic impact on index estimates.

Background

OFHEO's purchase-only and all-transactions house price indexes track average house price changes in repeat sales or refinancings of the same single-family properties. The purchase-only index is based on more than five million repeat sales transactions, while the all-transactions index includes more than 34 million repeat transactions. Both indexes are based on data obtained from Fannie Mae and Freddie Mac for mortgages originated over the past 32 years.

OFHEO analyzes the combined mortgage records of Fannie Mae and Freddie Mac, which form the nation's largest database of conventional, conforming mortgage transactions. The conforming loan limit for mortgages purchased in 2007 was $417,000 and remained at that level in the first month of 2008.  Legislation enacted earlier this month  has raised it on a temporary basis to as much as $729,750 in high cost areas.  The data reported here do not reflect this change.

This HPI report contains four tables: 1) A ranking of the 50 States and Washington, D.C. by House Price Appreciation; 2) Percentage Changes in House Price Appreciation by Census Division; 3) A ranking of 291 MSAs and Metropolitan Divisions by House Price Appreciation; and 4) A list of one-year and five-year House Price Appreciation rates for MSAs not ranked.

OFHEO's full PDF of report is at: www.ofheo.gov/media/pdf/4q07hpi.pdf.  Also, be sure to visit www.ofheo.gov to use the OFHEO House Price calculator.   Please e-mail ofheoinquiries@ofheo.gov for a printed copy of the report.  The next monthly house price index report will be released on March 25, 2008 and the next quarterly HPI report will be posted May 22, 2008.

###

OFHEO's mission is to promote housing and a strong national housing finance system by ensuring the safety and soundness of Fannie Mae and Freddie Mac.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sunday, February 3, 2008

Financial Alchemy Is Not Working

Having spent a considerable part of the month of January working for my clients and much less time on the computer, I have some breathing room (prior to kickoff for SuperBowl 42) to go through some articles about the persistent financial situation in the US:

  • An editorial column from the Gulf Times about the World's view of the US based financial alchemy model in this country and why it's not working.
  • UBS faces government investigations that it misled investors about the success of its MBS division amid eroding values.
  • The 4 horsemen of real estate inventory and what you're not hearing in the media. Link contains graphs of 4 markets and the growing inventory of homes for 2008.
  • The Orange County Register's mortgage blog site and an article of how to survive the credit crunch.
  • Diana Olick's blog from CNBC and the missing component to the housing crisis: Human Greed.

Friday, January 25, 2008

OFHEO NEWS RELEASE


For Immediate Release
January 24, 2008


STATEMENT OF OFHEO DIRECTOR

JAMES B. LOCKHART ON CONFORMING

LOAN LIMIT INCREASE



We are very disappointed in the proposal to increase the conforming loan limit as we believe it is a mistake to do so in the absence of comprehensive GSE regulatory reform. To restore confidence in the markets we must ensure that the GSEs’ regulator has all the necessary safety and soundness tools.

Yesterday Chairman Dodd talked about moving a GSE reform bill early this year. We are ready to work with him and the Senate Banking Committee. We will also be working with Fannie Mae and Freddie Mac to ensure that any increase in the conforming loan limit moves through their rigorous new product approval process quickly and has appropriate risk management policies and capital in place.

###


OFHEO's mission is to promote housing and a strong national housing finance system by ensuring the safety and soundness of Fannie Mae and Freddie Mac.

Monday, January 21, 2008

National Commercial Real Estate News 1/21

Below is the weekly email I receive for National Commercial Real Estate News - 1/21/08

Albany
Kelley to Prime Cos. after 30-year career in economic development

Albany
Rosen, Amedore mixed-use project on Colonie drawing board

Albuquerque
Real Estate Briefs: Copper Square adds retail to Downtown

Albuquerque
Carom Club owner opts for 'quality' with new look, menu

Atlanta
Deloitte to increase space at downtown tower

Atlanta
Atlanta Business Chronicle 30th Anniversary: John Portman put his mark on city's skyline

Atlanta
Buckhead Hilton may rise in '08

Atlanta
Real Estate Notes: Veteran broker Granot setting up own shop

Austin
Fertile ground: More office developers eye Round Rock

Austin
In brief

Austin
Rents rising, more space available than ever, so what gives?

Austin
Sound off

Austin
Southwest gets office boost: Building is third site for Koontz McCombs

Austin
Dallas real estate veteran heads for Oxford in Austin

Austin
Lance Armstrong Foundation finds new east side digs

Baltimore
Computer Sciences Corp. leases Essex building for Census contract

Baltimore
Real Estate & Economic Development: Scarlett Place gets facelift

Baltimore
Struever group bringing club to D.C. waterfront

Baltimore
City law firm chooses Arundel for HQ

Birmingham
Renasant to open branch in U.S. 280 American Family site

Birmingham
Ross Bridge to get 240 apartments

Boston
Insider View: Real estate derivatives slowly but surely gain ground

Boston
Commercial real estate sales activity near a standstill

Boston
Measured commercial growth to continue in 2008

Boston
Blackstone plans sale of Burlington office bldgs.

Boston
Real Estate Roundup: NAI Hunneman restructures equity to reward talent

Boston
Insider View: New law calms the waters for tidelands development

Boston
Big plans on campus: Colleges and universities become a driving force in development as schools shore up capital campaigns and position themselves to compete

Boston
Insider View: South Shore snapshot shows an intense buyer's market

Buffalo
Inside Real Estate: FBI expects to remain in downtown Buffalo

Buffalo
Real estate overview has positive overtones

Buffalo
Protection experts

Buffalo
Addressing the drop

Charlotte
Office lease rates set a new mark as uptown leads way: Tight center city market pushing more tenants to suburbs; lease rates across area rise as result

Charlotte
Big west-side projects could hinge on city road deals

Charlotte
Real Estate: City Council to consider range of Branch developments

Charlotte
Around the Region: Manufacturer expands with relocation to Fort Mill facility

Charlotte
Developers target key tract in heart of NoDa: Investment in new residential community could reach $100M

Cincinnati
No wild highs means no wild lows: As hot markets plummet, local home values among safest

Columbus
Franklinton nabs 600 jobs through state office consolidation

Columbus
Housing development will give urban Harrison West area a park

Dallas
HQ and 800 jobs up for grabs

Dallas
In first decade, Victory Park produced $6M for tax district

Dallas
Real Estate: Markets overreacted to subprime mess, Forbes says

Dallas
'The killer app': Stream Energy on track to hit $1 billion in sales this year

Dallas
Pioneer inks huge lease deal in Williams Square

Dallas
Retail & Hospitality: Weitzman Group feeling bullish

Dallas
Dallas' Dunhill buys Houston retail center for $102M

Dayton
Panel dubs WPAFB as 'significant economic driver for community'

Denver
16th Street Mall retail site getting ready for Democrats

Denver
Additional products helped CHFA rise to record in '07

East Bay
Penumbra moves to Alameda site

East Bay
City spotlight: Emeryville

Greensboro/Winston-Salem
Brown Investment Properties expands into W-S

Greensboro/Winston-Salem
Potential industrial project considered in SE High Point

Honolulu
City's Class A office rents top $3 for first time since the 'bubble'

Honolulu
Scoops: Two new downtown medical buildings now appear likely

Honolulu
Hawaii maintains strong attraction to national retailers

Houston
Lease of the month: Dow Center to shift to Energy Corridor

Houston
Commercial real estate briefs

Houston
Sterling Bank signs major lease for headquarters relocation

Houston
Face to face with...: Jason S. Baker

Houston
More HP space hits selling block: Computer giant keeps shrinking at once-bustling site

Houston
Commercial brokers betting on steady market

Houston
Houston Heritage: Houston Heights a highlight in city's architectural heritage

Houston
Dallas firm dips deeper with Fountains purchase

Houston
Swelling Realtor ranks crowd market

Jacksonville
Louis Vuitton

Kansas City
Summit Technology Center

Kansas City
Newsmaker: Arnold renders life that blends his passion and profession

Kansas City
National Nuclear Security Administration

Kansas City
CenterPoint-KCS Intermodal Center

Louisville
$25 million industrial complex under construction

Louisville
Barrister wants to build 25-story tower downtown: $130 million project could provide space for Humana

Louisville
Keys to the future: PMR Cos. redefines its property-management goals as company's growth continues

Louisville
La Grange doctor opens office space for medical, other services

Memphis
Centrepot expanding, relocating HQ: Logistics firm signs new lease in Eastpark Distribution

Memphis
White Station upgrades paying off: Improvements help raise occupancy 10% at East Memphis tower

Memphis
Bred in construction: Construction background serving Jeb Fields well in commercial real estate

Milwaukee
Ready to take over the family business: Greg Marcus set to run movie theater, hotel firm

Milwaukee
ATC plans $20 million Pewaukee office building

Milwaukee
Stark Investments may build St. Francis office complex

Milwaukee
Real Estate Roundup: Towne affiliate plans $40 million Mequon condo project

Milwaukee
Despite banking slump, Baird expands research

Minneapolis / St. Paul
Real Estate Digest: Warehouse District office bldg. sold

Minneapolis / St. Paul
Winner's Circle Profile: Ben Marks

Minneapolis / St. Paul
IVG enters market with $50.3M purchase of Opus building

Minneapolis / St. Paul
Winner's Circle Profile: Tom Drees

Nashville
Great Escape makes midtown shift

Nashville
Columbia draws $6.5M medical office building

Nashville
TDK sees Murfreesboro as ripe market for assisted living facility

Orlando
Lamm & Co. to build Maitland brownstone project: $24M office development aimed at small professional firms.

Orlando
Belk out, opportunity in at West Oaks Mall

Orlando
Fountain Parke could get commercial development: Developer's Web site shows plans for 158,000 SF of retail/office.

Philadelphia
$7M will be invested to reposition Crowne Plaza hotel

Pho