Builders Outlook
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National, State & Local Building Industry News 2016: Issue 3
X marks the spot: The housing needs of the ‘MTV Generation’ Generation X were the babies born between 1965 and about 1980, the Generation X group is much less concerned with formality and impressing others than previous generations. Instead, group members prefer living wherever, whenever and however they want. Generation X people are now between the ages of 36 and 51years.
Generation X Real Estate Habits By Deon Swiggs Just as the Baby Boomer generation has its characteristics, so does the “Generation X” firsttime and move-up homebuyers. The Gen Xers are children of wealth, privilege, and instant gratification. Very few have been to war. Nevertheless, they are also the products of the highest divorce rate in history. So whats different with generation X: Half of the Gen X group already owns their own homes, and although most don’t live alone, they are not necessarily married to the person with whom they share living space. This group can be a study in contradictions; admitting that they would sacrifice for home ownership by brown-bagging and eating out less frequently, but preferring plenty of restaurants nearby. Although they value family, they would much rather use a third or fourth bedroom for a home office than for more sleeping space. Formal living and dining rooms don’t make sense to Gen Xers. Highest on their list of priorities are abundant counter space in their kitchens, lots of storage and closet space, good energy efficiency (with passive solar designs), high-speed Web access, and a large yard. When people of generation X go house hunting this group tend to look for things out of their price range and then settle for something less. Then a few years later attempt to upgrade again to a
bigger or better house. This generation is a motivated consumer, experiencing homeownership at younger ages than even their Boomer parents did. Gen X’ers likely buy homes earlier because they have a higher proportion of two-income households. Many of these homebuyers become homeowners shortly upon finishing their educations. Further research reveals that Gen X often get a jump-start from their better-heeled parents. So what we will be seeing is an influx of parental assisted housing purchases. I have done a lot of reading regarding the Generation X people and when it comes to selling them something you’ve got to be straight with them. They are the most media-savvy generation in history. People of this age group do not like being sold! Gen X is the first generation to regard use of computers as casually as the telephone or refrigerator, Gen X members use the Web for the flexibility it offers; the freedom from having to make appointments, as a way to avoid sitting through endless meetings in stuffy conference rooms, and for the ability to make better use of their limited free time. As to housing preferences, they want that freedom as well. No room will go unused, but they will not permit homebuilders to predetermine their needs. I always say that Generation X is the generation that reads from the menu. What I mean by that is that I
believe the people of this generation like to have choices. They like to have the choice to make sure that they are getting the best deal and that they are getting thing that suits them the best. Now in terms of Real Estate I believe that the people from this generation like to look around for much longer than their parents for
decision as to who they will use. In short Gen Xérs are maximizes they want the most for their time, money and experience, as well as the space in their homes. To sum up people of the generation X age are now the wave of new buyers and sellers in the market. Unlike their parents who are generally holding onto the top portion of the market this generation has the families and the larger homes. They are also having most of the new homes built sculpturing our contemporary style of homes. They want to use all the space the space they can. Having separate living areas is not of any use as this to a Gen Xér a waste of space. The typical house these people like is a 3 or 4 bedroom, open plan house with a double internal access garage. Editor’s Note: This is part three of our series that focuses on housing preferences by generation. In our last issue we looked at Baby Boomers and their changing housing needs. Previously we focused on how millennials are shaping the future of the housing industry. The article can be found in our digital edition by visiting: https://issuu.com/snappypublishing
a home. Meaning that each person may be in the market looking for some time looking for that perfect house for a number of months. And when they sell Gen Xérs will most likely interview 2, 3 or even 4 agents before they make the
About the Author: Deon is result driven and strategic Real Estate professional. Deon believes in open honest information so that everybody can be knowledgeable and informed when it comes to making decisions with Real Estate and Business. His Real Estate Blog at blog.deonswiggs.com is a source of great information.
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Builders Outlook
NATURAL GAS IS YOUR KEY TO HOME SALES. By installing natural gas in your new homes and developments, you’re opening the door to added value for potential buyers. Natural gas kitchens sell themselves, and natural gas furnaces, water heaters and clothes dryers offer greater efficiency and lower operating costs than their electric counterparts. For more information: ElPasoNewBusiness@TXGas.com William Nieves: 915-496-6126 Jorge Sejera: 915-680-7216
2016 issue 3
2016 issue 3
3
Builders Outlook
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America’s New Housing Crisis The latest home purchasing patterns are signaling a New Housing Crisis in America, it seems, however, that the nature of the current crisis is opposite to the last one, i.e., the pendulum has swung the other way. Whereas last time, easy money created an oversupply of housing, this time the problem is related to a shortage of supply. There are several variables at play here: 1. Lack of jobs in suburban areas are forcing people to move to city centers where work is more readily available. The challenges that builders face when chasing jobs to city centers are many, but the main one is lack of affordable land to develop. This is forcing builders to look at infill properties that have been empty for all of these years for a reason. The challenging landscapes come with a hefty price tag and this is passed on to the consumer, which brings another important variable at play. 2. Affordability: Lack of affordable housing is pricing many first time home buyers out of the market and forcing them to rent. Some national builders are reporting that the average price of a home in some
markets has increased by over $100,000 in the last three years alone. It is estimated that while first time home buyers made about 65% of purchases in 2009, now that number is closer to 50%. 3. Low Wage Growth: Not only are houses more expensive nowadays, this effect is being compounded by the low wage growth in the past 5 years, forcing many to rent instead of buying. 4. Psychological Factor: Another important factor driving this trend is the attitudes of many would be buyers of not wanting to commit to a 30 year mortgage which many see as an anchor in a dynamic job market where one might have to move once again to follow a job. These factors, amongst others, have caused home ownership to be at historically low levels. We must not, however, see this as a problem but as a challenge. Conditions are what they are, and it is necessary for us as homebuilders to understand and analyze these trends so we can create the housing solutions of tomorrow.
Lack of affordable housing is pricing many first time home buyers out of the market and forcing them to rent. Some national builders are reporting that the average price of a home in some markets has increased by over $100,000 in the last three years alone.
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Builders Outlook
2016 Issue 3
Executive’s Message Ray Adauto, Executive Vice President EPAB The news from Washington is that home builders remain confident but cautious. I guess that comes from the fact that we have a wildly interesting political game going on both sides of the aisle. Home builders are like other businesses in that we live in a world economy but depend on our local economy for a livelihood. It’s interesting that politics would play such a significant role but then we’re talking about who’s going to lead the free world and therefore dictate the business environment. We have seen such devastating rules come down from Washington over the last twelve years that there is hope for change and change of hope. One builder told me that there is still some hesitation on the part of buyers to make the commitment. Others say that new
Recovery hard both for housing and Ray rules have made it near impossible to clearly figure what the buyer can do given the new rules. While there are troubling signs all around us there is also good news about what’s going in El Paso. Our city planning department tells us that permits are up from a year ago and that it all appears to signal a banner year. We can use that good news. Our builder members have been through rough times recently so to hear good news is welcome news. A recovery for us would certainly make El Paso a great place to grow a family, start a business and employ El Pasoans. Can it be true? The San Jacinto plaza redo is about ready to turn back to the city. News about the potential finalization of the project would end one of the most controversial projects ever done
here. While the media and others will blame the contractor I have come to understand otherwise, particularly with initial selection of project managers from Los Angeles, ridiculous specifications, costly one offs on items for the park, and the meddling by city council. When it’s done everyone will be happy, or perhaps it’ll be when the lawsuits come tumbling out like weeds in spring. I would like to thank so many of you for the encouragement and
prayers sent my way for the recovery from knee replacement. This is like what my dad said about getting old, it’s not for wimps. I know that one of our members had both knees done at the same time about the same time as I did my right one. I can’t imagine doing both at the same time. Recovery is tough, but so is my nurse. She’s no nonsense and that my friends is the key to recovery. Or so she’s told me. Go sell something, would you.
2016 issue 3
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Builders Outlook
National Builder News New Home Sales Rise 2 Percent in February
n Sales of newly built, single-family homes
rose 2 percent in February from an upwardly revised January reading to a seasonally adjusted annual rate of 512,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “The February bounce back in sales is in line with our builders’ reports that the housing market continues to recover at a slow but steady pace,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and home builder and developer from Bloomington, Ill. “While builders contend with industry headwinds such as labor shortages, relatively low mortgage interest rates and solid job growth should keep the housing market moving ahead as we enter the spring buying season,” said NAHB Chief Economist Robert Dietz. The inventory of new homes for sale was 240,000 in February, which is a 5.6-month supply at the current sales pace. The median sales price of new houses sold in February was $301,400. Regionally, new home sales rose 38.5 percent in the West. Sales dropped 4.1 percent in the South, 17.9 percent in the Midwest and 24.2 percent in the Northeast.
This month’s report is consistent with positive builder sentiment and other economic indicators showing that the housing market continues to recover at a gradual pace
Single-Family Housing Starts Reach Highest Level since November 2007
n Nationwide housing starts rose 5.2 percent to a seasonally adjusted annual rate of 1.178 million units in February, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce
BUILDING
Department. Single-family production increased 7.2 percent to 822,000 units—its highest level since November 2007—while multifamily starts remained virtually unchanged, inching up 0.8 percent to 356,000 units. “This month’s report is consistent with positive builder sentiment and other economic indicators showing that the housing market continues to recover at a gradual pace,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “February’s single-family gains indicate that this sector is strengthening in line with our forecast,” said NAHB Chief Economist David Crowe. “As the U.S. economy firms, job creation continues and mortgage interest rates remain low, we should see further growth in housing production moving forward.” Combined single- and multifamily starts rose in three of the four regions in February, with the West, Midwest and South posting respective gains of 26.1 percent, 19.9 percent and 7.1 percent. The Northeast registered a 51.3 percent loss. A decline in the volatile multifamily sector pushed overall permit issuance down 3.1 percent in February. Multifamily permits fell 8.4 percent to a rate of 436,000 while single-family permits ticked up 0.4 percent to 731,000. Regionally, permits increased in the Northeast by 40.4 percent. The Midwest, West and South registered respective
El Pa aso
permit losses of 11.4 percent, 7.2 percent and 4.4 percent.
NAHB’s Ed Brady on Housing Finance Reform Plan n Ed Brady, chairman of the National
Association of Home Builders (NAHB) and a home builder and developer from Bloomington, Ill., today issued the following statement regarding the housing finance reform plan, A More Promising Road to GSE Reform, put forth by a group of private sector experts. “The strategy released today is a thoughtful, serious proposal that contains a number of elements along the lines of a white paper released by NAHB last year. We believe that any plan must transition Fannie Mae and Freddie Mac into a private-sector oriented system where the federal government’s role is clear, but its exposure limited. Both plans underscore the need for Congress and this Administration to stop kicking the can down the road and move soon to pass comprehensive housing finance reform. Fannie Mae and Freddie Mac cannot remain in conservatorship indefinitely. It’s time for this government to act now.”
SINCE 1950
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Builders Outlook
No recession in 2016
Financial Perspective
Elliot Eisenberg Economic & Policy Blog
Despite all the news to the contrary, the US economy is in pretty good shape, better than the financial pundits think. Sure, the stock market has taken a battering of late, exploration and production activity in the oil patch has been declining, and exports are performing poorly, but the rest of the economy is fine. The service sector continues to grow nicely and construction activity continues to increase. Let’s take a closer look at the facts. The recent tumble in equity prices has nothing to do with a slowing economy and is not the precursor of a recession. Rather, the declines are the result of three quite independent
2016 Issue 3
factors. First, as the Fed raises interest rates, the value of financial assets must decline. Remember, the Fed initially lowered rates to boost asset prices and stimulate spending. As this process slowly unwinds, the value of equities must decline. Second, corporate profits have been flat for several quarters, and third, even at today’s somewhat lower equity values, P/E ratios remain high by historic standards. As for exports, the US is much less dependent on them than most nations. Exports of goods to China total less than one percent of GDP, while exports of goods to Europe are about 1.5% of GDP. While exports of services such as movies, music and intellectual property add to these totals, they do not vary much with economic conditions. As a result, while a 10% decline in exports certainly hurts manufacturers and their employees and reduces GDP by about 0.2%, it is far from catastrophic in an economy growing by a healthy 2.5%. Regarding falling oil and gas prices, the benefits to the economy are just
beginning. Until now, the price declines have resulted in large cutbacks in exploration and production (E&P) activity, as well as related manufacturing, construction and oil services activity that supports oil and gas E&P. The key here is that cheaper energy prices have boosted household incomes by about $130 billion or $1,000/household. While to date most of this money has been socked away, I expect that to change and to see increased consumer spending this year and next as households perceive the recent price declines as somewhat permanent. Most importantly, the rest of the economy is already doing well. Unemployment is at 4.9% and will decline further as the year progresses, and at 4.9%, unemployment is already at one of the lowest levels in decades. Moreover, home sales and prices are up, as is loan demand. In addition, tight labor markets are finally leading to sizable increases in hourly earnings, which will boost household spending further, and inflation, which has been completely dormant for several years,
appears to be rising. This is a particularly welcome development given that Japan and Europe continue to fight deflation. Lastly, services, which account for roughly 84% of GDP, and construction activity, which accounts for about 6% of GDP, both of which are almost entirely domestically focused, are in fine shape and growing nicely. During the past 12 months, construction activity increased by 10.4% and services grew by 3%. In short, the parts of the economy that are inwardlycentered are doing well, and the negative impacts of softer growth from abroad are not nearly strong enough to derail our economy. As for the upcoming election, let’s fervently hope that the threats to dramatically raise taxes or increase the deficit do not come to pass.
Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.
Affordability
5 worst housing markets for first-time buyers California markets all in top five of worst cities for first time homebuyers. Conditions improve in West and Midwest
First-time homebuyers will have better luck in some spots than others. New homebuyers are far better off purchasing a home in many towns in the middle of the country, and far worse off in many cities in California, according to an analysis released this week by financial website SmartAsset.com. The site examined data on housing affordability for people living in the area (as measured by the ratio of median household income over five years to ownership costs over five years, including closing costs, mortgage payments, insurance and taxes), ease of getting a mortgage and
the stability of the housing markets in cities with populations of 300,000 or more. Oklahoma City tops the list, thanks largely to how affordable homes are in the area for those who work there (the median home is only about $125,000, according to Zillow) and how stable the housing market is. Tulsa, Okla. is second on the list; even though it has fewer mortgage lenders than Oklahoma City, it is even more affordable for residents with the median home costing just over $100,000. Indianapolis, Pittsburgh and Houston round out the top five. (Added
bonus: all of these cities have unemployment rates below the national average.) Meanwhile, a number of cities in California are the worst for first-time homebuyers, thanks in part to the fact that they are unaffordable for many in the area and the markets tend to be volatile. Indeed, the seven worst cities on this list — Los Angeles, Santa Ana, Anaheim, Riverside, Stockton, Long Beach and Oakland — are all in California. Other rankings of best and worst spots for first-time home buyers come to similar conclusions. All the best
cities for first-time buyers chosen by personal finance site WalletHub were in the middle of the country particularly Texas, while two California towns (Richmond and Compton) were the worst. The site looked at affordability, the health of the real estate market and city livability. To be sure, many first-time buyers love the perks that these California cities have to offer including warm weather and close proximity to the ocean. CATEYHILL BUILDER MAGAZINE
2016 ISSUE 3
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Builders Outlook
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Buildeers Outlook On the Scene 2016 Home and Garden Show bests estimates
The 2016 home and Garden Show held over the March 11 weekend beat estimates of attendees and exhibitors. “I’m pleased to tell the EPAB that we have completely sold out the floor space for this show,” said Pam Rogers, Sales manager for Show Technology Productions the producers of the show. With the large number of exhibitors and a lot of advertising on television, radio and print the number of visitors beat expectations as well. “I can tell you that the numbers of people coming in the door was phenomenal, and while we don’t have final attendance figures the lines on Saturday and Sunday told a story in itself,” said Ray Adauto, El Paso Association of Builders. The lines on Saturday required the civic center to open two ticket windows to accommodate the crowds. Once inside the mood was fun and exciting. The expectations were high and they were realized. “From what we see this show has just about everything and then more,” said Delia Velasquez as she visited. A prime reason for the interest was the displays put up by the 2016 Parade of Homes builders, showing off either a kitchen or a bathroom. J. J. Vasquez, Pacifica Homes summed up his effort. “I had no idea how to do this but from the feedback I’m getting on my kitchen we hit a homerun,” he said. His gray toned kitchen, with distressed looking wood tile on the floor was a hit. It was clearly featured on the noon show from KDBC Channel 4, as they did a live program from the show. “I can tell you I’m blown away at the beauty of these displays,” Josh the weatherman said on air. The builders who participated were BIC Homes, DR Horton, Deal 2 Deal Homes, Edwards Homes, Pacifica Homes, Trinity Homes, Pointe Homes and CTU Metro Homes. Every vignette was different and was manned by the respective builder’s representatives. Not to be outdone were the other displays in the show and of course the celebrity start of DIY Network, Matt Muenster (pronounced MIN ster) who shared his story with the throngs of excited fans. Matt took time to visit the booths and displays, taking pictures all along the way. This was Matt’s first time in El Paso and hopefully not his last, especially if you want your bath makeover to come from him. “I can’t tell you when, if, or maybe we are coming to do as show here,” he told the audience. “My calendar is sent to me, I show up, and we do an episode in three days,” he said. Overall the show brought out some great opportunities for sellers and buyers of many different things. From brooms to puppies, dresses to dressers, candles, tea and air conditioning if you were looking for it you probably found it at this show.
Issue 3
Talent Search for ‘El Paso Proud’ family held at Home show
The prospect of landing a starring role in the upcoming Parade of Homes television ads enticed families and individuals to get behind the stage mirror and try out for it. Ted Escobedo of Snappy Publishing took the concept Ray Adauto gave him and ran with it. It was a dual purpose campaign; first to co-market the 2016 Parade of Homes at the Home and Garden Show; and secondly to utilize the show to find potential talent to do the commercials. Dozens of folks tried out and shared the experience on social media, as the pictures taken made their way through cyber space. Out of those who signed the release we’re hopeful to find the right combination of talent and charisma. “We had a blast meeting our potential ‘stars’ and I think we have some great families to choose from” said Escobedo. While no time frame was given for the selection Escobedo was confident to make the right choice. “We got to talk to the families and get a feel from them. We are in the process of narrowing it down to just one or two families. Some of them were very excited to be a part of the Parade of Homes advertising. It was a great way to kick off the marketing for the Parade of Homes. We are looking forward to getting started on the ad campaign”. Our special thanks to Ted and to Ceci Marquez for spending hours at the booth and doing the hard job of soliciting potential families. “It was fun and at times a little trying, but mostly fun,” Marquez told the Outlook.
Tropicana Homes moves downtown On March 15, 2016 the downtown skyline welcomed Tropicana Homes as they officially opened their new offices at 300 E. Main next to the Indigo Hotel. The move came after years of operating in the Northeast part of town. “We’re still full of boxes and trying to figure out what goes where,” said Randy Bowling. He and his brother Bobby IV and partner Demetrio Jimenez decided to join other businesses in moving downtown. “It’s different for us, but we’re across the street from city hall and several banks, plus we want to be a part of what this city is transforming to and that’s a new start for downtown and us,” said Bobby Bowling.
The grand ribbon cutting was the first introduction of the new location for many in attendance. “We welcome the Tropicana Homes group to our neighborhood and look forward to a prosperous venture for them,” said Richard Dayoub president of the Greater Chamber of Commerce. After the ribbon cutting the visitors were welcomed to the 7th floor for refreshments. “We’re occupying the 7th and 14th floor,” said Randy Bowling.
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2016 issue 3
Lending
HOME
Lenders Seeking Competitive Advantage Via Closing Speed, Customer Service
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T E X A S
According to the Lenders One Mortgage Barometer, a new survey of 200 U.S. mortgage lenders, a large majority of mortgage lenders say better customer service (77 percent) and improving the time from origination to closing (71 percent) are very important to being competitive in 2016. By Daniel T. Goldman
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"Mortgage lenders are looking at 2016 as a year in which they will move toward a more growth-focused business strategy," said Daniel T. Goldman, Interim Chief Executive Officer, Lenders One. "However, some external factors such as rising interest rates and a complex regulatory environment will continue to temper the pace at which mortgage lenders seek to expand." The non-qualified mortgage loan market faces a mixed appetite from lenders. Less than two-thirds (64 percent) of survey respondents say they originate non-qualifying mortgage loans, with less than one in five (18 percent) reporting that they frequently do so. Among lenders who do originate non-qualifying loans, only about onehalf (51 percent) say they are extremely or very likely to originate these types of loans in 2016. The two areas mortgage lenders rate as having the biggest impact on the mortgage lending business in 2016 are compliance with regulations and rising interest rates, which are noted as being extremely or very impactful by 73 percent and 68 percent of lenders, respectively. "As consumers expect rapid response timeframes, mortgage lenders are highly cognizant of the competitive need to create expediency in the mortgage transaction process," said Daniel T. Goldman, Interim Chief Executive Officer, Lenders One. "The issue of timing is further compounded by lenders feeling pressure around the new timeline-dependent TRID regulations.
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2016 issue 3
Builders Outlook
El Paso Development News Planned Lofts Could Overlook Downtown Ballpark
By Armando Landin The architect behind a planned lofts project adjacent to Southwest University Park in Downtown El Paso is teasing what the project may ultimately look like once built. 'Ballpark Lofts' is the name of the project which will include three 2,600 square foot apartments. Each apartment will be three stories tall, according to the website, and include a street-level garage. According to renderings of the buildings, each level will include balconies and/or terraces. Based on the height of the structure,
TopGolf Shows Interest in El Paso, But Where?
By Armando Landin With TopGolf's announcement last week that it is looking to expand into the El Paso area, it leads us to wonder... where should it go? TopGolf, a driving range entertainment venue, announced last week that it wants to expand to small and mid-sized cities, including El Paso. Topgolf locations vary in size but typically require around 15 acres of space. The facilities are usually three story structures with about 100 "bays," seating areas around the driving tee that fit up to six adults. Far East, West, and Northeast El Paso seemingly offer the most options for a TopGolf location, which could be
Builders Outlook 2016 Issue3 www.elpasodevnews.com the uppermost terraces could possibly look onto Southwest University Park, the home of the Triple-A El Paso Chihuahuas. The description of the project on the website indicates this is the case, stating, "Each three-story unit has 2,600 Sq. Ft. with terraces overlooking the baseball field." Though the website does not disclose the exact location of the project, not many empty properties would be close enough to offer a view inside the ballpark. The most likely candidate could be a vacant lot along the narrow passageway that is officially Missouri Avenue behind left field. El Paso Development News reached out to the architect, EXIGO Architects, regarding the project but have not received a response.
built near or in conjunction with a shopping complex. In recent years, City of El Paso officials have expressed a desire to bring TopGolf to the city. The fringes of the city may provide the most options, property-wise. The East Side has the most people, while the Northeast and West Side offer the most scenic options. Nearer to the city's center, it would be difficult for TopGolf to find a suitably sized property on which to build. The most central possibility could be the former Asarco property near the University of Texas at El Paso, which is just two miles northwest of Downtown. What do you think? Where would the most ideal location be for TopGolf in El Paso? Leave a comment here or head over to our Facebook page to give us your opinion.
P.F. Chang's, Mooyah Among Several New Tenants Heading to Fountains at Farah
Coming Soon • P.F. Changs • Mooyah • Ruth’s Chris Steak House • Bricktown Tap House & Kitchen • Raising Cane's Chicken Fingers • Rocky Mountain Chocolate Factory
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By Armando Landin The Fountains at Farah shopping center in East El Paso is seeing new retail and restaurant activity thanks to new tenants that have opened or will be coming soon, located along Gateway West between Viscount and Hawkins Boulevards. On the horizon for the 600,000 square foot hybrid lifestyle/power center are multiple new eateries and a dessert shop. P.F. Chang's, Mooyah, and Ruth's Chris Steak House lead the list of upcoming dining options. The P.F. Chang's location will be in the center of the Promenade, on the southern side of the lifestyle street. This will be the second location in El Paso for the restaurant chain. Ruth's Chris Steak House will be located in a spot just above the P.F. Chang's location, considered the "Boulevard" area of the center. Ruth's
Chris announced its El Paso location last year. Mooyah, a national chain of gourmet burger restaurants, has also posted a "Coming Soon" sign and will be located adjacent to Ruth's Chris Steak House on the Boulevard level. This is the second Mooyah location in the Sun City. Bricktown Tap House & Kitchen is headed to an empty space near Grimaldi's on the Promenade level. Raising Cane's Chicken Fingers will also open a Fountains location, according to a building permit filed with the City, possibly near the corner of Hawins Boulevard and Gateway West. This will be the chain's second El Paso location, with one open on the Far East side of the city. Rocky Mountain Chocolate Factory will open a location along the wide parkway of the Promenade, next to the splashpad on the eastern end. This will be the second El Paso location, the first of which is located at the Outlet Shoppes in Northwest El Paso. Avenue, a clothing store specializing in apparel for plus-sized women, will open on the western side of the
Promenade. This will be the retailer's first El Paso location. The Fountains at Farah is quickly filling up with eateries. Already at the center are a myriad of restaurants, including Twin Peaks, Jason's Deli, La Madeleine, Grimaldi's, Kona Grill, Chipotle, Five Guys, and Firehouse Subs. No official opening dates have been announced for the upcoming restaurants or shops. In addition, J. Crew Mercantile, Tres Mariposas, and Boeau Belle Salon and Spa have all recently opened on the Promenade of the center, the lifestyle, lower area of the Fountains. J. Crew Mercantile, a new, more affordable concept from the J. Crew brand of stores, offers clothing and accessories for men and women. It is located in center of the Promenade next to Kona Grill. Tres Mariposas is an El Paso-based women's clothing store with its original store still open on the West Side. The Fountains location is across from J. Crew.
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Festool’s New Crosscutting Track Saw for Carpenters
Builders Outlook
2016 issue 1
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By Chris Ermides
Last week at the JLC Live show in Providence, R.I. Festool was demonstrating their new crosscutting track saw system designed for carpenters. Throughout each day of the event, show participants gathered around the demonstration area in groups and most walked away eager to get their hands on one. The system, which has been a big hit in Europe for a while now, is due out in the U.S. this coming fall. The HK 55 EB, and it’s 18V cordless cousin, the HKC 55 EB mount to a short rail or track. Unlike Festool’s original track saw system in which the saw stays above the track until it’s plunged into the material, the HK and HKC blade stay below the track at all times. The track, which is available in three different lengths, retracts after you push through the cut. Equipped with a 6-1/2-in. circular saw blade, the saw provides a cut depth of 1-15/16� straight down and 1-7/16� at 45 degrees when mounted to the track. The saw’s crosscutting capacity runs from 10�, 161/2�, and 27� at 90 degrees, depending upon the length of the track. The saws are also compatible with Festool’s FS guide rails, though the TSC saw isn’t compatible with the HK rails. Both saws have a riving knife built into the blade guard. You’ll need to use one of the thin kerf saw blade options (Standard, Fine, Rip) to take advantage of the integral riving knife. The saw will come with the standard blade (500 461). Although the saws are designed for crosscuts, they also can be setup quickly to make plunge cuts. Blade depth is adjustable too, and Festool shifted from metric to imperial numbers on the depth
adjustment settings. The blade adjustment accounts for the depth of the rail, so it’s accurate without having to second-guess anything. The guide rail can be adjusted to make angle cuts up to 60 degrees thanks to stops beneath the rail that register on the edge of the work piece. The demonstration of this feature was impressive to watch because it illustrated how quickly the user can make repeatable angle cuts that are flawless. The saws both bevel up to 50 degrees, so compound miters are possible too. The track system is designed similarly to the original track saw in that the edge of the rail aligns on the cut mark so there’s very little setup time. The rails have nonslip foam on the bottom too so there’s no need for clamps. Festool said that they weren’t sure yet what the price point was going to be. A couple of the carpenters I spoke with said they would buy it if the price was near Festool’s track saw, which starts around $600 for a corded version. Most of them wanted to see it offered at a much lower price, though – which seems fair. The system will come with only one rail, which is shorter than the one offered in the TSC kit. This saw will be competing with the sliding compound miter saws. Imagine running trim along the rake, or siding, or soffit and fascia material for that matter – from a scaffold or lull without needing a mitersaw mounted to the staging. You’ll get the same level of accuracy from this saw without the setup time.
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OPEN JuNE 25 - July 10
www.elpasobuilders.com
Preview Party June 24
Enchanted Hills Subdivision Development by: Southwest Land Development Beautiful Homes by: BIC, Pointe Homes, DR Horton, CTU Metro Homes, Pacifica Homes, Deal 2 Deal Homes, Trinity Homes and Edwards Homes
2016 Issue 3
Association News & Events
13
Builders Outlook
If you have an event or meeting that you would like to share with EPAB members, please submit your information to: margaret1@elpasobuilders.com
SODA SPONSOR UPCOMING EVENTS APRIL 8 SPRING GOLF TOURNAMENT PAINTED DUNES SHOTGUN AT 10:00AM APRIL 13 BOARD MEETING 11:00 GENERAL MEETING 12 NOON MARRIOTT HOTEL PARADE OF HOMES PREVIEW PARTY JUNE 24 Enchanted Hills Sub.
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SNAPPY PUBLISHING, LLC
Connect to the El Paso Association of Builders: www.elpasobuilders.com
14
Builders Outlook
2016 issue 3
Hispanic homeownership continues upward trajectory The National Association of Hispanic Real Estate Professionals (NAHREP) and the Hispanic Wealth Project recently released the2015 State of Hispanic Homeownership Report revealing that while the national homeownership rate dwindles, Hispanic homeownership continues its rise. The report reveals that homeownership among Hispanics outpaces that of all other demographics, achieving a net gain of 245,000 owner households in 2015, 69 percent of total U.S. homeownership growth. As the study articulates, “For the first time in 10 years the Hispanic homeownership rate spiked upward while overall homeownership rates in the country continued a downward trend.” There was tremendous growth in Hispanic homeownership between the fourth quarters of 2014 (44.5 percent) and 2015 (46.7 percent), marking a net increase of 531,000 owner households. The report clarifies that Hispanic homeownership hadn’t risen by these levels since 2005, gains that were erased by subprime mortgages and the housing crisis.
Associates Council
Now, supported by a decrease in poverty and an increase in purchasing power, along with a growing population, Hispanics are situated to impact the housing economy. “The State of Hispanic Homeownership Report should be required reading by everyone in housing, especially lenders and realtors,” states David Stevens, President and CEO Mortgage
Bankers Association (MBA). “The Latino community is massive, it’s ready to own, and it’s now. The significance of Hispanics to housing and the economy will only grow, creating opportunity for all who focus on this vibrant, dynamic, and impactful part of the U.S. economy.” The Hispanic population reached 57 million in 2015, up 1.6 million from 2014, and Hispanic homeownership is projected to
grow 52 percent between 2010 and 2030. With its capable buyers and growing households, home buying activity within the Hispanic population is a great source of business and excitement.
many events and educational programs that take place throughout the year. These include the Home Garden Show, Golf and Bowling tournaments, speed networking (one on one time with multiple builders in the same afternoon) and lunch educational program monthly, not to mention bi-monthly lunches with interesting speakers with great knowledge of our community. It gives advance knowledge of future growth and building plans of our city. It give you the ability to direct advertise to local builders within your target market. Get the most out of your membership being an active participate and join us at these upcoming events. Watch for an announcement of the upcoming associates meeting.
April Apr 8 Friday spring golf torment at painted dunes 0900 show up 1000 shot gun Apr 13 General meeting Builders and Associates with Mayor Oscar Leeser Late Apr Young Designers identified
May May11 Board Meeting Jun 25 – July 10 Parade of Homes ( Westside)
Value of Membership
John Dorney
Associates Council Chair
One question I am always asked is what do I get for my membership dues. A huge benefit of membership is the networking, business opportunities the Builders Association creates for our members. Much of what a company gets out of membership, is based on what efforts you put into the membership; so we can encourage all members to actively participate in the
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Builders Outlook
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2016 Issue 3
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
■ EXECUTIVE OFFICERS
PRESIDENT
Carlos Villalobos
VICE PRESIDENT
NATIONAL ASSOCIATION OF HOME BUILDERS
(800) 368-5242
Don Rassette
SECRETARY/TREASURER
TEXAS ASSOCIATION OF
Kathy Parry
BUILDERS
(800)252-3625
ASSOCIATES CHAIR John Dorney
ECECUTIVE VICE PRESIDENT Ray Adauto
PAST PRESIDENT Edgar Montiel
Membership Retentiion Patrick Tuttle
Finance Committee Kathy Carrillo
Henry Tinajero
■ ADVISORY TO THE BOARD
Jay Kerr, Firth, Johnston, Bunn & Kerr
James Martinez, Law Office of James Martinez
2015 Builder Member Of The Year Edgar Montiel
Palo Verde Homes 2015 Associate Of The Year Interceramic Tile
Mark Dyer
Wayne Grinnell
Don Henderson
Chester Lovelady Cliff C. Anthes Anna Gill
Brad Roe
Walter Lujan, Dawco Home Builders
Samira Gonzalez, ICON Custom Homes Sal Masoud, DRE Development
Joe Bernal, Employer Benefits Of El Paso Linda Troncoso, TRE & Associates
Bret Thompson, Foxworth Galbraith Lumber Ted Escobedo, Snappy Publishing, LLC Patrick Tuttle, Legacy Real Estate Sam Trimble, Lone Star Title
Luis Rosas, HUB International Gilbert Pedregon, GECU
Gregg Davis, First Light FCU ■ TAB STATE DIRECTORS
Randy Bowling Greg Bowling
Sam Shallenberger ■ NATIONAL DIRECTORS
Bobby Bowling IV.
Demetrio Jimenez
Now more than ever, El Paso home buyers are planning for the future.
E H Baeza
Bud Foster, Southwest Land Development Services
Jason Cullers, Cullers Homes
Give your customers the ‘option of the sun’
Rudy Guel
Robert Najera, Joseph Custom Homes
Mark Winton, Mark Winton Homes, Inc.
915-208-9313 602-708-7560
Honorary Life Members
Leti Navarrete, Dream Homes/Bella Homes
Edgar Garcia, Bella Vista Cutom Homes
Total Customer Satisfaction
Bradley Roe
Antonio Cervantes, BIC Homes
Leslie Driggers-Hoard, Homes By Design
Residential Specialists Tract Homes • Custom Homes
2015 John Shatzman Award
■ BOARD OF DIRECTORS
Fernando Torres, CTU Metro Homes
For All Your Electrical Needs
Past Presidents
Committed to Serve
Greg Bowling
Kelly Sorenson Mark Dyer
Mike Santamaria
Bobby Bowling, IV Rudy Guel Anna Gil
Bradley Roe
John Cullers
Bob Bowling, III
Doug Schwartz
Hershel Stringfield
Randy Bowling Robert Baeza
Edmundo Dena Pat Woods
EPAB Mission Statement: The El Paso Association of Builders is a federated professional organization representing the home building industry, committed to enhancing the quality of life in our community by providing affordable homes of excellence and value. The El Paso Association of Builders is a 501C(6) trade organization. © 2015 Builder’s Outlook is published and distributed for the El Paso Association of Builders by Ted Escobedo, Snappy Publishing, LLC ted@snappypublishing.com El Paso • Texas • 915-820-2800
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