Who is the latest large real estate investor....Google!
I recently was reading an article in Forbes magazine about how there are several large companies who are getting into real estate investing because there are such good deals out there right now. Google was the largest mentioned. Now I know you all have seen the Google real estate mapping system they introduced recently....I think its fabulous and many of my clients start there search there exactly.But why would Google want to get into real estate???
Google is putting $86 million into helping fund 480 low-income housing units across the Midwest and West Coast. The money will go into a Low Income Housing Tax Credit (LIHTC) that will give tax credits to builders and developers of homes for low-income families and senior citizens. It will be managed by U.S. Bancorp Community Development Corporation (USBCDC), part of U.S. Bank.
Google is sitting on over $30 billion in cash and short term investments. Mountains of cash don't always please shareholders, who feel companies could be using it to grow the company, make smart investments, or return it to them.
Google has been mulling over what to do with some of its cash. In their most recent quarterly conference call, the company suggested it was considering buying back shares and investing in commercial paper. So the unusual real estate venture may be another experiment in investing that the company can afford to make. Plus, it aligns with the company's informal motto: "Don't be Evil."
The developments are planned for Waukegan, Ill., outside of Chicago; Apple Valley, Minn., a suburb of the Twin Cities; Des Moines, Iowa; Milwaukee, Wis.; and Fontana, Palm Springs and Salinas, California. Those housing markets range from some of the most stable (Des Moines), to among the shakiest (Salinas).
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