Evening Star Newspaper, October 26, 1929, Page 13

REAL ESTATE WASHINGTON, D. C, he. Foenin WITE STNDAY NOXNING EDFTION g %faf. " SATURDAY, OCTOBER 26, 1929. | HOME & GARDEN Home-Owning and Building Section for Washington and Suburbs BUILDING PERMITS SHOW $458,000 TOTAL FOR WEEK . Gabriel Church on Grant Circle, Included OBSERVE MARKED CHANGES IN REAL ESTATE FINANCES Alton L. Wells Says New Trends Coming Into Popu- larity as Field Starts “Stepping Out With Big Real estate business, financial Business.” ly, is “stepping out with big busi- ness,” investors in realty stock and bond issues are demanding 6 per cent and some sort of “look-in” on the profits, and new trends in realty financing to meet changing needs are coming into popularity, it is declared by Alton L. Wells, manager of mortgage loans of Story & Co,, this city, in a leading article al Real Estate Journal. Basing his conclusions on a in the current issue of the Nation- study of 50 real estate securities offered since July 1, 1928, Mr. Wells finds the following trends in realty financing: A marked increase in the number and amount of straight first mortgage bond issues; increased financing by means of stock issues, or issues with stock warrant or conversion features; increased use of leasehold first mortgage in larger cities; improved devices and increased facilities for secondary and equity financing; increased numbers of investment banking houses becoming interested in real estate; longer terms for real interest in real estate securities. Wells Writes Article. Mr. Wells' article, reprinted, with per- mission of the Journal, follows: Times have changed, and with them real estate financing. Probably more de- velopments have taken place in the financing of large real estate projects during the past two or three years than in any previous period of real estate history. New methods are being used; new varieties of securities are being offered; new types of real estate opera- tions are being financed. We still have the mortgage bond, and we will always have it, no doubt, but at present it is'a ‘wallflower at the “dance of the dollars,” 80 to speak. Where, yesterday, the in- vesting public was satisfied with 6 per cent and a first “look-in” on the as- sets, today that same public is demand- ing 6 per cent and some sort of “look- in” on the profits. Formerly a real es- tate issue of a miliion dollars was some- thing to talk about, now the lowly mil- lion is but a piker sum; for the figures are being revised upward, and appar- ently the sky is the limit. Changes result from causes, and so it is that several causes have con- tributed to the present altered condi- tions of the real estate money market. ©Of these causes, two are outstanding; one of them fundamental, the other in- cidental. It is evident, first of all, that real es- tate itself is stepping out with big business. The aggressive realtor of to- day is talking in millions instead of thousands; his business is becoming national as well as local; as a salesman of the world’s most stable commodity he is evolving from a side street shop- keeper into a Main street merchant. Consolidation, large-scale operation, group _ownership, concentrated and scientific management, and other big business methods, that have already roved their worth in other fields, are ing adopted by real estate operators the country over. On Larger Scale. Not only are big business methods be- ing introduced into the real estate busi- ness but they have come because there was a need for them. For some time there has been a decided trend toward transactions of greater and greater size. ‘Where previously the realtor might struggle to promote the erection of a single building today he may engineer ths purchase of an entire city block and mve’r it with improvements of colossal e, Many influences have had their part in effecting this change; but to cite a few of them will serve to illustrate the point. For example: Our great na- tional prosperity with its resultant de- mand for improved housing and office accommodations; the tendency toward the apartment house and the apartment hotel as living quarters for the typical American family; the increase in size of apartment house and business building units; the great growth of urban prop- erty values; a marked advance in the design and construction of modern building; the application of modern financing methods to real estate opera- tions; the rapid spread of the co-opera- tive plan of ownership; the passing of the individual owner of properties of large value, to be succeeded by the syndicate, the real estate corporation and, more recently, by the large invest- ment company; the phenomenal rise of the chain store scheme of merchan- dising and the adoption of this method of operation by hotels, theaters, garages and other businesses whose activities extend over large areas, and who own or lease their own buildings or locations; and finally the application of the in- vestment trust idea to the acquisition, ownership and operation of large groups of Jroperties. All of these factors have had their place in putting real estate in step with big business. Different in Type. ‘With the coming of real estate opera- tions of unprecedented size there came also a need for financing, greater in amount and, in many instances, differ- ent in type. ' Where heretofore an oper- ation might have been financed above the first mortgage by funds received from the proceeds of a conservative second mortgage and those put in by the owner or a syndicate, in more re- cent times, when the transaction called for an investment running into the mil- | llons, the problem was not so simple. Principals, either individuals or groups, | who could provide funds in seven fig- | ures, were scarce indeed. Nor was it | easy to place first mortgage financing | in the large amounts required. Ob- | viously the real estate financing ma- | chinery of former days had become in- adequate to meet the new situation at least so far as large projects were con- cerned. This problem was solved, largely, as | have been similar problems in other | lines of business, by apg?sllng to the investment banker and through him to | the general public. Smaller issues of | real estate securities had never been of | interest to the investment banking | houses because such issues could not be handled with profit. However, when | the call came for millions of dollars, things were different. That was a lan- | guage which the bankers understood | and to which they are willing to listen. | unloaded his shelves, stored estate issues, and increased public that desirable issues of all types were being sought was, no doubt, an added incentive to the investment banking houses to enter more largely than be- fore into the field of real estate finance. Classed as Merchant, Now as to recent changes. Bigger real estate deals, larger real estate is- sues, the advent of the investment banker. So far so good, but how about the change in types of securities of- fered, and why the loss in popularity of the real estate bond? The answer is that the investment banker is pri- marily a merchant. He buys money from the public and resells it at a profit. Like every merchant, he is much concerned as to the quality and type of his merchandise. He must of- fer his trade something that is attrac- tive; or, in other words, his securities must meet the demands of his market. And—this_leads to the second great cause of the changed conditions in the present money market. ‘This cause was entirely accidental to anything connected with the real estate business. It seems to have been a pure coincidence, but one of great moment to real estate financing. In- cidentally, it has worked a very con- siderable hardship during the past year or more to many projected operations, but it appears certain that out of it will come some developments of great and lasting benefit. We refer to the great “bull” stock movement and the collapse of the investment bond mar- ket in July, 1928. Almost_overnight in July, a year ago, bonds of all types, including real estate bonds, became a drug on the market. Banking houses suddenly re- fused to consider bond issues of any kind, and negotiations already under way were, in many cases, placed guietly on the shelf, where'they are still col- lecting dust. . What happened? Plenty. Practically the entire bond investing public left the bond market, en masse, and pitched their tents on the stock market lot. And they are still there. Unloads Shelves. The investment banker, being a wise merchant, and sensing that his cus- tomers no longer wished to buy the wares that he was displaying, quickly his goods, and replaced them with a new and more up-to-date line. Common stocks, preferred stocks, convertible bonds and debentures, issues with stock warrants, and other similar offerings were the order of the day. When the realtor- promoter approached his banker for financing he was advised that it could only be considered if it had a specula- tive “kick” in it—said kick being some device whereby the investor could be offered not only adequate security for his money, but some chance at profits of the enterprise as well. Here apparently was an obstacle of size, for the usual real estate bond issues contained no thrills except 6 per cent and safety. But as matters turned out, this difficulty proved to be an op- portunity in disguise. Although trained for years to think alonw the lines of straight mortgage financing, it did not take the intelligent realtor long to real- ize that participation by the public in the profits of his operation meant that he simply was trading a creditor for a partner, with the possibility of building up a connection with unlimited finan- cial resources, that would last long and pay well—the public as well as the realtor. In order to ascertain more definitely in just what manner the causes men- tioned had actually affected the real estate money market of the past year, a study was made of the leading real estate issues offered to the public dur- ing that period. Fifty issues were se- lected, comprising practically all of the important offerings since July 1, 1928, and constituting an excellent cross-sec- tion of the financing of the past few months. Securities in amounts of $1,000,000 or more were chosen, because (Continued on Fourteenth Page.) 309 West Bradley Lane $13,250 Opposite Chevy Chase Club Grounds New detached home of English architecture in stone and stucco construction, 6 unusually well planned rooms, tiled bath with shower. Many closets, floored attic, detached garage, very large lot with just enough shade trees. Drive out Connecticut Ave- nue to Bradley Lane and turn to property. or drive Wisconsin Avenue " and east to property, or phone Wisconsin 2873. M. & R. B. Warren The fact that during this period, an active bond market was in progress and ' Massacuuserts Park West of Kalorama -Across Rock Creele Mass. Ave. entrance at 30™ St. One Square east of New British Embassy The National Cathedral on west Sites for Individual Homes Priced from *L50 per sq.ft. up Within 2 miles of White House Location and contours can never be duplicated in heart of Washington again- Prices and Data frw:—g E MIDDAUGH AND SHANNON 1435 K St Nagoegs ISERNANNENNNNN SES RS S S SSSR SSSS A S A A A Mrs. J. Borden Harriman to Remodel Landmark. as Residence. COMMANDS VIEW OF POTOMAC RIVER House at Reservoir Road and Reservoir Street Visited by Wilson. One of the old residential landmarks in the District and one that abounds in historic interest, Terrace Heights, the four-story colonial house standing on the commanding elevation on Ridge road at Reservoir street, between Fox- hall Village and Wesley Heights, has been purchased by Mrs. J. Borden Harriman, it was announced today by Boss & Phelps, which handled the transaction. The old mansion, it is stated, will be modernized and otherwise remodeled as the future residence of the new owner. The property, formerly a part of the Lightfoot estate, was acquired from Arthur D. Hancock. From its high elevation, the house commands & view down the Potomac River and a wide sweep of the central part of the city as well. It is reported on good authority that President Wilson, just before his term of office expired, entered tentative negotations for the purchase of the property and placed a deposit for its acquisition, but the transaction was not consummated. Visited by Wilson, It is said that President Wilson frequently visited the place to enjoy the distant view down the river from its wide porches. ‘The original structure, later enlarged and remodeled, was built of brick that came to this country from England in a ship as ballast about 1774, about the time that John Foxall came to this country from England and built the old Foxall Foundry west of Georgetown, now the site of Foxhall Village. Earlier, about 1860 or 1861, it is re- ported by an interested party, the site of the home was occupied by the heavy Maine artillery constituting one of the chain of batteries that guarded the Capital during the internecine strife. This was known as Battery Cameron. Terraces then were built by the Govern- ment to support the big guns employed during the Civil War. Along the front was the hospital where injured com- batants from the State of Maine, after the Battle of the Wilderness, were brought and where they established a headquarters. On an adjoining place, the account continues, lived Marion and John Lightfoot. Many residents of Maine came here to see their relatives in the wartime hospital. One of these visitors was Lucy Wepley, who had four uncles in the Battle of the Wilderness. Here she is reported to have met John Light- foot and out o ftheir acquaintanceship grew a courtship culminating later in their marriage. Bought From Government. John Lightfoot bought the pmyerty from the Government in memory of the Maine soldiers who lost their lives in the Battle of the Wilderness. An_interesting sidelight in the ac- count is that during the first year Mr. and Mrs. Lightfoot were living in the dwelling, called Terrace Heights, a severe storm carried away the roof. ‘Thereupon, it was determined to build a roof that would resist even a tre- mendous wind storm. So, departing from the colonial architecture of the original place, a slate roof of excep- tional depth and weight was affixed to the structure. It was 11 years after the close of the Civil War when the Government re- moved the guns from their mountings on the property, it is reported. The battery, while not used in active en- gagement, was employed in firing salutes in celebration of the close of the war. acres af land. It has a frontage of 1,250 feet on Reservoir road and a like amount on Ridge road. Ten Books to Foot. ‘When you are figuring out how many books to put in your shelves, allow 10 books to the running foot. Your Last Opportunity 3 built—2 sold. New de- tached brick home in Cleveland Park at $16,500 See 3054 Porter Street 7 Rooms—2 Baths, Oil Burner Electric Refrigerator Open Sunday Schwab, Valk & Canby 1704 Conn. Ave. Pot. 0830 5 ? % 125 Hesketh Street Overlooking the Chevy Chase Club Golf Course TRUE RUSTIC ENGLISH MANOR The many unusual features which include mettowee stone in reception hall, beamed ceil- ing in living room, stone fire- place, five bedrooms, three tile baths, fully inclosed sleeping porch—true in type and very attractive in appearance and price. Open All Day Sunday Drive West on Magnolia Parkway from Chevy Chase Circle about 100 ‘eel, then left on Hesketh Street about two blocks to home or East irom Wisconsin Avenue on Hesketh Street 1% blocks to home. J. E. Douglass Co. Realtors 1621 K St. N.W. Mpet. 5678 The property consists of nearly 10 | Satthttatetetithte b tatstethtetatatatatahdatht et tate bt Sttt Terrace Heights, Historic Mansion, Is Sold Terrace Heights, historic dwelling on Ridge road, which has been purchased by Mrs. J. Borden Harriman. BY JOHN A. PETTY, Secretary, Washington Real Estate Board. Every real estate broker and real estate salesman who is conducting his business on an honest basis, and who is sufficiently competent to reasonably safeguard the interests of his clients and the public, should welcome the en- actment of the pending real estate brokers’ license law. ‘Though positive and specific, the re- quirements of this law apply alike to all brokers and salesmen engaged in the real estate business. There is no dis- crimination or distinction between so- called small or large offices, organized brokers or unorganized brokers. ‘While a license may be refused, sus- pended or revoked, such action cannot arbitrarily be taken without full regard for and compliance with the definite procedure outlined in the law. The various steps provided for the real estate commission to follow in denying or recalling a license assure to all full protection of constitutional rights. Before the real estate commission can refuse to issue a license or suspend or revoke one after issuance it must set a time for a formal public hearing. At least 10 days prior to the date set for the hearing it shall notify BUY NOW Chevy Chase, D. C. 5311 NEBRASKA AVENUE Corner of Nevada Avenue Just two blocks east of Conn. Ave. $12,250 ‘Wonderful corner lot 72-it. frontage. New Co- lonial, 6 large comfortable rooms, tile bath with shower, sun parlor, fire- place, dining alcove, “Ideal” kitchen, every latest convenience and many special features. Built-in garage. Open Daily Ph. Clev. 1162 | Heath Berry New corner residence in Cleveland Park > 3314 PORTER ST. (Cor. 34th) 4 Detached Brick and Stone Construction 9 rooms, 3 baths First Floor lavatory 2-car garage Large shade trees Open Sunday and daily 10 to 9 P.M. N L Sensbers Owners—Builders IMPORTANCE OF REAL ESTATE BROKERS’ LICENSE LAW URGED Even Advantages Provided All Engaged in Business, Whether Organized or Not. the applicant or licensee in writing of any charges made, and afford the ap- licant or licensee an_opportunity to be heard in person or by counsel in ref- erence thereto. The notice to the applicant or licensee must be delivered in person or sent by registerde mail to his last known address. Should the party in question be a salesman the real estate commission must also notify in the same manner the broker employing him or in whose employ he is about to enter. Any party to a hearing shall have the right to the attendance of witnesses in his behalf and the commission upon request must subpoena such witnesses. All findings of fact made by the com- mission and questions of law involved in any final decision or determination of any case shall be subject to review before the Supreme Court of the Dis- trict of Columbia upon proper legal pro- cedure. Upon its own initiative the commis- sion may, and shall upon the verified complaint in writing of any person, pro- vided such complaint or such complaint together with evidence, documentary or otherw! presented in connection therewith make out a prima facie case, proceed to a formal hearing. At any time within six months after the issuance of an original license the commission may also upon its own mo- tion and upon verified complaint as above described, which makes out a prima facie case that the licensee is unworthy to hold such license, proceed to hold a hearing upon the same basis outlined. Any violation of any provisions of the law by any real estate salesman or employee of a licensed real estate broker 1l not be cause for the revocation of the license of said real estate broker, partial or otherwise, unless it shall appear to the satisfaction of the com- mission that said broker had guilty knowledge thereof. Likewise members or officers of firms, partnerships, associations and corpora- tions are protected from the results of improper acts of their associates. Firms, partnerships, associations and corpo- rations, as such, also cannot suffer from such acts unless it is shown that all of the members or officers thereof have guilty knowledge of the wrong done. Essentially the fundamental princi- ple of this law is the protection afforded the public in connection with ordinary real estate brokerage practices. This law is designated to accomplish this purpose through the punishment and elimination of those unworthy, without occasioning any serious inconvenience to legitimate business. —_— TInspect Heating Plant. The owner should inspect his heat- ing plant to see that all dampers are true and tight. The heater base must be tight and grounded to the floor so that no air leakage into the ash pit this poin Description Is Inadequate You must see these Homes Sample House Now Open for Inspection 5704 Colorado Ave.) N.W. (Between Madison and Montague Sts. Beautiful location, most convenient, exceptionally well planned, finest construction, four bedrooms, two baths, open fireplace, cheerful breakfast room, large attic, Frigidaire, pantry, with complete kitchen; garage. CARL H. SMITH Owner and Builder Insurance Bldg., 15th and I Sts. N.W. National 1046 Or Any Broker Only $10.950 Chevy Chase, D. C. 5444 Nevada Avenue (Between Leg: ion and Livingston Sts.) The home you have been looking for. It has everything you want. Two short squares from Conn. Ave. Close to stores and schools. 7 rooms;; lnrge tiled bath with shower; breakfast alcove; 1-car garage. IT WILL UNDOUBTEDLY BE SOLD QUICKLY, SO COME EARLY. Open Saturday Afternoon and All Day Sunday Edw. H. Jones & Co., Inc. Exclu 5520 Conn. Ave. e Agents Cleve. 2300 in List, to Cost $250,000—Other . Projects Listed. ‘ Church building projects in Washington, which have been notable in volume and character in the past two years, continue, adding new landmarks to the National Capital. Plans were approved this week by the District building inspector for the new $250,000 edifice for the St. Gabriel’s Catholic Church, to be erected at 25 Grant circle. Work also is in progress in the clearing of the site of the National Church for the Disciples of Christ, to be erected on Thomas circle, west of Fourteenth street and north of Massachusetts avenue. Old buildings there, formerly used by the Marjorie Webster School, are being razed. Permits Total $458,600. ‘The total cost of all new operations in the District, exclusive of Federal projects, for which permits were issued during the past week was estimated at $458,600. There were plans for 13 private _dwellings, among other proj- ects. Included in the list were plans for a $50,000 dwelling to be erected for G. M. Pulver. at 2422 Massachusetts ;wenue‘ Permits were issued as fol- lows: Most Rev. Michael J. Curley, owner; Maginnis & Walsh, architects; William P. Lipscomb Co., Inc., builders; to erect one 1-story brick, concrete and stone church, 25 Grant Circle (lots 1, 2, 13 and 17, square 3224); to cost $250,000. G. M. Pulver, owner; Wolcott G. Waggaman, architect; Robert J. O'Neill, builder; to erect one 3-story brick and stone dwelling, 2422 Massachusetts avenue (lots 810 and 811, square 2507); to cost $50,000. Four 2-Story Dwellings Listed. ‘Waple & James, owners and builders; George T. Santmyers, architect; to erect four 2-story brick dwellings, 5808, 11, 15 and 17 Sixth street (lots M7 to 120, square 3203); to cost $32,000. M. A. Winter, owner; A. M. Poyn- ton Co., builders; to erect addition and make repairs, 1440 U street (lot 59, square 205); to cost $23,000. V. T. Richards, owner; Joseph Brun- ner, architect; Spink Construction Co., builders; to erect one 2-story frame dwelling, 4811 W street (lot 39, square 1385); to cost $15,000. Auto Corporation Project. Automobile Public Service Corpora: L. F. S " (‘afll'fler one 1-story concrete block, brick and stucco office building and filling station, 1301 K street (lot 63, square 248); to cost $15,000. W. C. and A. N. Miller, owners and builders; G. E. MacNell, architect; to erect one 3-story brick and frame dwelling, 4332 Garfield street (part of 218 Raymond S lots 19 to 22, square 1619); to cost $11,400. W. C. and A. N. Miller, owners and builders; G. E. MacNeil, architect; to erect one 3-story stone and frame dwelling, 4928 Indian Lane (lot 183, square 1512); to cost $11,600. - $10,000 Brick and Stone Dwelling. Carl I and Anna K. Johnson, owners; Carl 1. Johnson, designer and builder; to erect one 215-story brick and stone dwelling, 5319 "Nebraska avenue (1ot 12 and one-half lot 13, square 2027); @ cost $10,000. Hechinger Co., owners and builders. to erect two 2-story frame lumber sheds, 1601 and 1603 Maryland avenue northeast (parcel 151/30, square 4493); to cost $10,000. Spink Construction Co., owners and builders; E, W. Spink, architect; to erect one 2-story frame dwelling, 3738 Albemarle street (lot 18, square 1889); to cost $10,000. A. Guaragna, owner; George T. Sant= myers, architect; to erect one 3-story brick auto laundry and dwelling, 446 T street (lot 820, square south of square 516); to cost $8,000. John J. Smith, owner and builder; R. E. Doleman, designer; to erect one 2-story brick dwelling, 4721 Forty= seventh street (lots 23 to 25, square 1546); to cost $8,000. Brick and Cinder Block Store. F. L. Kohler, owner and builder; Paul F. Fox, designer; to erect one 1~ story brick and cinder block store, 3403 Connecticut avenue (lot 805, square 2219); to _cost $4,750. ‘Taylor-Korman Oil Co., Inc, owners and builders; J. H. Abel, designer; to erect one 1-story brick and stucco gasoline filling station, 4717 Wisconsin avenue (lots 2, 3, 04 and 806, square to make repairs, square 169); to L. B! Ellis, owner and builder; L. W. Giles, architect; to erect one 1- (Continued on Fourteenth Page.) ., Chevy Chase, Md. We invite your personal inspection of this group of new detached homes nearing Bradley Lane near Connecticut Avenue. just above Entirely new and completion, different in design, absolutely modern in every detail and appointment, with a charm frequently sought but seldom available. and sidewalks. Home pictured above at $13,950, on large, beautifully landscaped corner lot-—90x110. Paved streets Drive out Connecticut Avenue to Lane, turn east Georgia Street, then M. & R. B. WARREN one long block to north one short block. Wisconsin 2489 Day or Evening 4407 Elm St., Chevy Chase, Md. $11,750 New England Colonisl in design, with flagstone walk, charming running stream with rustic bridge, and ma Near new Chevy Ch landscaped lot. iy trees on beautifully High School. Six perfectly planned rooms, built-in garage, bronze screens, open fireplace, inlaid linoleum on kitchen floor, lots of closet space. This Home Should Be Personally Inspected Drive out Wisconsin Avenue to Leland Street (just north of Bradley Lane), turn east two short blocks to 45th Street and north two short blocks to property. M. & R. B. WARREN Wisconsin 2875 Day or Evening