National market report

Honolulu

After a strong 2013, hotel investment in Hawaii is staying hot. Year-to-date sales of hotel properties in Hawaii surpassed $840 million in transaction value, according to Hospitality Advisors CEO Joseph Toy. That follows $2.1 billion in transactions last year in one of the nation’s top performing and most expensive hotel markets. The average daily room rate in Honolulu was $230 in 2013. Toy told Pacific Business News much of the investment is coming from private equity firms, and Hawaii is one of the primary U.S. gateway destinations to invest in, along with New York, Miami, San Francisco and Los Angeles. Major transactions this year include the Wailea Beach Marriott Resort & Spa, Maui’s fourth largest hotel, bought by Sunstone Hotel Investors for $325 million; the Aston Waikiki Beach Hotel for $183 million to Inland American Lodging Group, and Maui’s Ritz-Carlton Kapalua Resort, sold for an undisclosed amount to Woodbridge Capital Partners and Colony Capital of L.A.

Chicago

The University of Chicago has broken ground on its new Studio Gang–designed residence hall. The roughly $148 million dormitory will comprise three buildings of varying heights — 5, 11 and 15 stories — and house approximately 800 students. The architecture firm, led by renowned Chicago architect Jeanne Gang, designed the building “with an emphasis on community,” according to the college’s website. The project will create an entryway that connects the university to the Hyde Park community and enhances the flow of pedestrian traffic. The project is slated to be complete in the fall of 2016.

Detroit

A Boston-Edison Historic District mansion auctioned on the Detroit Land Bank’s website received so much traffic from interested bidders that the website crashed, causing city officials to invalidate and reschedule the auction. Though in some disrepair, the 3,000-square-foot house at 115 Chicago Boulevard, built in 1911, is full of historical features, Curbed reported. The top bidder in the May 30 auction bid $135,000. The second bidding, held June 6, drew 229 bids, and netted $97,900. In its first month, Detroit’s Land Bank auctioned off 33 homes, drawing nearly $1 million in bids, with an average price of $22,000 per property. Realtors and appraisers are cautiously optimistic that the auctions will help the city’s real estate market rebound, Crain’s reported. Detroit has surprisingly become one of RealtyTrac’s 10 hottest markets, with prices climbing in strong neighborhoods and inventory tight for move-in ready homes, though appraisal values may stall growth. There is hope the auctions will help create a bottom for the market, showing what people will pay for unrenovated homes, and help push up appraisals. Land banks are becoming increasingly popular in distressed communities around the country as a way to reignite real estate markets.

Asheville, N.C.

Asheville’s real estate market is experiencing a Renaissance. The North Carolina city’s housing prices spiked in the past year, and are approaching the record asking prices of 2008, The Wall Street Journal reported. The average asking price rose to $459,500 in the first four months of 2014, up from $409,400 the year prior. And the higher end of the market — houses priced above $500,000 — is at its strongest since 2007. Part of the resurgence can be attributed to Asheville’s mass appeal. In addition to the young people who flock to the Blue Ridge Mountain city for its bohemian vibe and art and music scenes, families are drawn to its good schools and access to the outdoors, while the climate and excellent health-care facilities make Asheville a popular destination for the older generations. According to Coldwell Banker, Asheville is seeing increasing demand for downtown luxury condominiums from seniors, many of whom are trading in larger homes outside the city. And while most transplants previously hailed from New York and Florida, Mike Miller, co-owner of Town and Mountain Realty, told the Journal that he has interest from across the country, as well as Canada and Japan.

Converse Lake, Conn.

Actor, director and producer Ron Howard has listed his 33-acre estate in the gated community of Conyers Farm for $27.5 million. The former child star turned Oscar-winning film producer’s spread has six bedrooms and nine baths, an eat-in chef’s kitchen, library, game room, screening room and multiple porches overlooking the lake. It also features an indoor swimming pool based on the pool in the film “Cocoon,” a two-bedroom guest house, a sports barn with full-sized tennis court, livestock barn, paddocks and riding rings, hiking trails and greenhouse.

Coral Gables, Fla.

Football star Julius Peppers plunked down $5.2 million for a 9,100-square-foot mansion. Now a Green Bay Packer, Peppers spent eight seasons with the Carolina Panthers. The 8-bedroom, 7.5-bath home was built in 2006.

Sandy Springs, Ga.

Country singer Kenny Rogers listed his 11,964-square-foot estate for $4.8 million. The six-bedroom manse features eight full and four half baths, an elevator, a home theater with a cloud-patterned ceiling, a solarium, 10 fireplaces and a Roman spa with wrap-around murals. Rogers bought the estate for $1.5 million in 2012.

Los Angeles

Rapper Dr. Dre dropped $40 million on the 13,890-square-foot L.A. mansion previously owned by New England Patriots quarterback Tom Brady and model Gisele Bündchen. The couple bought the six-bedroom home, designed by Richard Landry, for $11.75 million in 2008. The initial $50 million listing included furniture, which Dr. Dre did not buy.