MARKET SNAPSHOT: 2009’s Bright Spots According to M/PF Yieldstar
By Erika Schnitzer, Associate EditorSan Diego, Washington, D.C.—While the apartment market is experiencing a rough time nationwide, San Diego and Washington, D.C. appear likely to remain in relatively good shape in 2009, according to M/PF Yieldstar.Though the outlook for these two cities shows flat revenues for the coming year, this shows some strength in today’s crippled market, where most of the country is experiencing a 5 percent revenue cut, Greg Willett, vice president of research & analysis for M/PF Yieldstar, tells MHN. While both metros are losing jobs, it is not as extreme as the rest of the nation. The…
TODAY’S DEALS: NorthMarq Capital Arranges $24.3M Mortgage for 698-Unit Apartment Community, and Other Transactions
By Anuradha Kher, Online News EditorRichfield, Minn.–NorthMarq Minneapolis regional office has arranged first mortgage financing of $24.3 million for Crossroads at Penn (pictured), a 698-unit apartment community, located in Richfield, Minn. Financing was based on a 10-year term with two-years interest only followed by a 30-year amortization schedule and was arranged for the borrower by NorthMarq through its affiliation with AmeriSphere Multifamily Finance, a Fannie Mae DUS lender.Alliant Capital Closes $3.96M ARM Apartment LoanTucson, Ariz.–Alliant Capital closed a $3,964,200 ARM loan for the refinance of the Retro City Apartments. The 183-unit garden-style apartment community was built in 1962 and is…
EDITOR’S NOTE: When Will Financing Return?
By Keat Foong, Executive Editor Here are some “take away” items from the Mortgage Bankers Association’s annual commercial real estate financing conference, which I attended this week in San Diego. Yes, financing will be back, within two years. That is the opinion of most of the financing industry members, some of them executives of leading players. We are talking about CMBS-like, securitized, financing in some form or other. Indeed, during the conference Jones Lang LaSalle released its 2009 Loan Production Outlook Survey that showed 67 percent of nationwide commercial real estate lenders expect securitized lending to return to the capital…
New Financial Stability Plan Could Restart Trading in Frozen CMBS Market
By Anuradha Kher, Online News EditorWashington, D.C.–The National Multi Housing Council (NMHC) and National Apartment Association (NAA) commended the Obama Administration for including commercial real estate in the Financial Stability Plan that was unveiled yesterday.The four-part plan to unlock credit markets and strengthen the still-beleaguered U.S. financial system includes expanding the Term Asset-Backed Securities Loan Facility (TALF) to up to $1 trillion and to allocate part of the program to purchase AAA-rated commercial mortgage-backed securities (CMBS). “We commend the administration for recognizing the importance of including commercial real estate in the Financial Stability Plan,” says NMHC President Doug Bibby. “Most…
SPECIAL REPORT: MBA Says Large Amounts of Multifamily Loans Will Mature in 2011 and After
By Keat Foong, Executive EditorSan Diego—The Mortgage Bankers Association (MBA) reported that $171 billion of multifamily and commercial mortgages—or one-tenth of the outstanding balance—held by non-bank lenders and investors will mature in 2009. The report was released at MBA’s multifamily and commercial real estate convention held here this week. “Substantial concerns have been raised about the volume of mortgages maturing in the face of the credit crunch,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. Woodwell suggested that not all types of financing are coming due at the same rate. According to MBA, short-term CMBS floating-rate mortgages,…
INSIDE THE DEAL: Arbor Funds Small Loan for Affordable Apartments
By Keat Foong, Executive EditorNorman, Okla.—Not every Fannie Mae-authorized Small Loan lender finances affordable projects, but Brookstone Cottages obtained just such a financing from Arbor Commercial Funding LLC. A wholly owned subsidiary of Arbor Commercial Mortgage LLC, Arbor Commercial Funding provided a $1.575 million mortgage for the newly constructed 64-unit property, which receives the Low Income Housing Tax Credits (LIHTC). Arbor Commercial Funding is authorized to make Fannie Mae small loans (loans of less than $3 million in most markets). Jay Porterfield, vice president in Arbor’s full-service Plano, Texas office, who originated the loan, said the property was “well run”…
SPECIAL REPORT: MBA Sees No Easy Solutions to Credit Crisis
By Keat Foong, Executive Editor San Diego–The Mortgage Bankers Association (MBA) opened its 2009 commercial real estate and multifamily finance conference with acknowledgment of the serious difficulties facing the industry and a focus on solutions. John Courson, MBA president and CEO likened the industry to the woman held screaming in King Kong’s hand. “Yes, we are screaming for help. The question is how do we silence that scream?” Courson said the industry needed to restore investor faith in the business and liquidity in the marketplace. David Kittle, MBA chairman and executive vice president of Vision Mortgage Capital LLC, said that the search…
TODAY’S DEALS: Kislak Co. Completes $27.5M Sale of 253-Unit Townhome Community, and Other Transactions
By Anuradha Kher, Online News EditorNorth Brunswick, NJ.–The Kislak Co. Inc. has recently completed the $27.5 million sale of Northwood Estates (pictured), an apartment community located at 500 Adams Lane in North Brunswick, NJ. “Even though residential real estate is in decline and the stock market is faltering, investors remain willing to trade multifamily properties and yield high returns in the process,” says Barry Waisbrod, vice president of Kislak Co.Northwood Estates features 253 residential units, which include 17 townhomes and six ranches. The property was built in the 1970s and has private entrances and private basements. It was 93 percent…
KTGY Named Terner Prize Finalist for Rural Workforce Housing Project
By Erika Schnitzer, Associate EditorPajaro, Calif.—KTGY Group Inc. has received accolades for the design of Nuevo Amanecer Apartments, an affordable, workforce housing community in Pajaro, Calif. The Irvine, Calif.-based architecture firm was selected as a finalist by the Center for Community Innovation at the University of California, Berkeley. The 2009 I. Donald Terner Prize recognizes innovative affordable housing projects and their leadership teams.The acknowledgment is about “more than just what the building looks like, but [also about] what it does for the people there,” asserts David Senden, principal at KTGY Group Inc. The biennial prize is designed to inspire projects…
Freddie Mac Sets Record of $24B in Volume for Multifamily
By Anuradha Kher, Online News EditorMcLean, Va.–Freddie Mac has set a record of $24 billion in volume for its multifamily whole loan and bond guarantee business (multifamily mortgage settlements) in 2008. This is a more than 10 percent increase over the 2007 volume of $22 billion. This volume includes Freddie Mac’s targeted affordable housing products, which finance apartments that receive some form of government subsidy. In addition to the mortgage settlement volume, Freddie Mac purchased $1.4 billion in Commercial Mortgage Backed Securities (CMBS) in 2008, compared to $22 billion in 2007, reflective of the inactive CMBS market. Freddie Mac’s multifamily…