Administration’s Plans for Buying Troubled Loans: What Does it Mean for Multifamily?
By Anuradha Kher, Online News EditorNew York–The Obama administration has big plans to fix the credit market. The Federal Reserve announced recently that it would pump an extra $1 trillion into the financial system by purchasing Treasury bonds and mortgage securities. In addition, the Treasury Department, along with the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) has this week made public the details of its new Public-Private Investment Program (PPIP).The idea is to increase activity in the credit market by lowering interest rates, including those on home loans, and to help the financial system as it struggles due…
INSIDE THE DEAL: Winner of Bidding War Goes To… Affordable Developer in $7.3M Deal Brokered by Hendricks and Partners
By Keat Foong, Executive EditorBurbank, Calif.—Sometimes, a seller is fortunate to find an affordable housing developer. That was the case in the sale of Verdugo Gardens, brokered by Hendricks and Partners. The 34-unit apartment community was sold for $7,262,500, at a 4.65 percent cap rate (with in place rents), or $246.56 per square foot. All in all, a relatively high price even in the second half of last year. The seller was Jamco Holdings Corp. of Los Angeles, which was seeking to execute a 1031 exchange, by selling this property and buying another. The buyer was Burbank Housing Corp. of…
DEAL OF THE DAY: Distressed Asset Sells for $3M
By Anuradha Kher, Online News EditorLawrenceville, Ga.–Apartment Realty Advisors (ARA) recently brokered the $3 million sale of Meadows of Gwinnett, a 68-unit, individually platted complex of 17 quadraplexes located in Lawrenceville, Ga.The expansive community spans 10.59 acres with a very low density (6.42 units per acre). Unit mixes are comprised of two- and three-bedroom, two bath units. Occupancy at the time of the sale was 70 percent.Local buyer, Terrapin Apartments, LLC, acquired the distressed asset for $44,118 a unit capitalizing on the asset’s assumbable, non-recourse CMBS loan. The circa 1980’s constructed quadraplexes have some deferred maintenance and will require a…
Condo, Co-Op Sales Increase in February, Recovery Expected by 3Q, Says NAR
By Anuradha Kher, Online News EditorWashington, D.C.–Despite an increase in existing-home sales in February, sales activity remains relatively soft, a consequence of additional layoffs and buyers waiting for housing provisions in the economic stimulus package to take effect, according to the National Association of Realtors (NAR). Existing-home sales—including single-family, townhomes, condominiums and co-ops – rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January with a year-over-year decrease of 4.6 percent Sales of condominium and co-op increased as well, to a seasonally adjusted annual rate of…
HUD Approves $731M in Funding For Communities Recovering from Foreclosures
By Anuradha Kher, Online News EditorWashington D.C.–U.S. Housing and Urban Development Secretary Shaun Donovan has approved nearly $731 million in funding for 48 states and local communities seeking to recover from the effects of high foreclosures and declining home values. Funded under HUD’s Neighborhood Stabilization Program (NSP), these plans will target emergency assistance to particular neighborhoods by acquiring and redeveloping foreclosed properties that might otherwise be abandoned.The neighborhood stabilization plans approved include a $145 million plan submitted by the State of California.”These funds will be used to buy up and rehabilitate vacant foreclosed homes and resell those homes with affordable…
ASKO Dishwashers with World’s Largest Loading Capacity
The 5000 series XXL dishwashers by ASKO has more usable space than any other dishwasher on the market. These dishwashers have a taller tank that allows for additional usable capacity, while the installation dimensions remain standard.Despite its capacity the XXL dishwashers look small. They can hold up to 17 place settings—that is 40% more than traditional dishwashers. The interior of the dishwasher is comprised of a four-level, six-rack system.The top rack is adjustable and the additional rack has removable baskets. The washers provide up to three PowerZones and the TurboFan system dries everything, including plastic ware. Oversized items, like pizza…
New Jersey’s First Affordable Green Project Now Complete
By Erika Schnitzer, Associate EditorJersey City, N.J.—Genesis Cos., a Jersey City, N.J.-based developer of urban communities, recently celebrated the opening of Webb Apartments, a five-story, 40-unit mixed-use community that will be the first 100 percent affordable, green residential building in the state of New Jersey.The redevelopment project is a public-private partnership between Genesis Cos., the state of New Jersey and the City of Jersey City.Designed by GF55 Partners, a New York-based architecture firm, Webb Apartments is LEED (Leadership in Energy and Environmental Design) Silver- and Energy Star-certified and will consume 20 percent less energy than a non-green building. Green features…
Apt. Renters & Condo Buyers Receive Much-Needed Incentives in Increasingly Tough Times
By Anuradha Kher, Online News EditorNew York–As consumer confidence dips and uncertainty abounds over the possible impact of the administration’s new policies, buyers and renters in the multifamily market are feeling increasingly wary. To tackle this, a number of developers and managers are offering a variety of incentives. The most common of them is the ability for a renter to get out of their lease in case of a layoff, without any penalties. Similarly, Solaria condominium, a luxury community located in New York’s Riverdale neighborhood, is offering a program through which it will pay the mortgage, common charges and real…
Phase One of First Fla. Green Residential Community to Open for Sale
By Erika Schnitzer, Associate EditorWinter Park, Fla.—The first phase of The Sage at Winter Park, an Energy Star-certified, 72-unit townhome community developed by Winter Perch LLC, is expected to be the first green certified multifamily development in the state of Florida.According to Ian McCook, founder and president of Nvision, an Orlando, Fla.-based real estate development management company, who worked on the $15 million project, there are currently no completed LEED (Leadership in Energy and Environmental Design) residential projects in the state. “We weren’t originally planning [The Sage] as a green community, but everything we have done has made it such,”…
TODAY’S DEALS: Arbor Closes $17.5M Fannie Mae DUS ARM Loan, and Other Transactions
By Anuradha Kher, Online News EditorShreveport, La.–Arbor Commercial Funding LLC recently completed funding of a $17.5 loan under the Fannie Mae DUS ARM product line to finance the 168-unit complex known as Reflections of Island Park (pictured) in Shreveport, La.The 10-year loan amortizes on a 30-year schedule and carries an adjustable note rate of 4.58 percent. Avant Capital Closes $4.575M Bridge Loan for Acquisition, Renovation of 209-Unit Rental CommunityOklahoma City, Okla.–Avant Capital Partners has closed a bridge loan of $4,575,000 for the acquisition and renovation of a 209-unit apartment complex in Oklahoma City, Okla. The interest-only loan was secured through Avant’s…