Q&A with Jim Scofield: Multifamily Prices Will Continue to Decline Until Market Turns Around
James M. Scofield (Jim) serves as a managing director/senior investment advisor of Sperry Van Ness/Scofield Multifamily Team, specializing in multifamily properties throughout North Carolina. Prior to joining Sperry Van Ness, Scofield served as a senior broker for Anthony & Co. He also served as vice president and partner of Colliers-Seeley, a full-service commercial real estate firm in Los Angeles. Scofield’s extensive background includes representing private investors, small businesses and large corporations in the analysis, purchase, sale and leasing of multifamily and other types of properties. He talks to MHN Online News Editor Anuradha Kher about how to evaluate properties in this…
Enterprise Supplies Tax Credit Equity to Fund Renovation
By Anuradha Kher, Online News EditorAugusta, Ga.–Progressive Redevelopment Inc. (PRI) and Enterprise Community Investment Inc. recently opened Cedarwood Apartments, a renovated 184-unit affordable apartment community, located at 527 Richmond Hill Rd. West in Augusta, Ga. The acquisition and renovation of Cedarwood Apartments was undertaken to preserve high quality affordable housing for this community. The property was structurally sound but in need of major upgrades to make it competitive with surrounding properties and to create decent, safe housing for its residents.The renovation included the replacement of roofs and siding, new windows and doors, a new energy efficient HVAC system and new…
Sterling Properties Launches “Upgrade-to-Ownership” Program
By Erika Schnitzer, Associate EditorLivingston, N.J.—Sterling Properties is encouraging renters to apply past rent payments towards the price of a new home in its “Upgrade-to-Ownership” program.”There are many renters at our communities that are interested in becoming homeowners so they can stop the cycle of paying rent without building equity,” says Rosanne Brooks, director of sales and marketing for Sterling. “Some of these individuals are hesitant to purchase a home now as a result of their perceptions of uncertainty with regard to the current financial climate.” Renters can apply up to $25,000 of last year’s rent towards homes at some…
Current Credit Crunch is Even More Severe than in Early-1990s, Says Witten at NAHB Construction Forecast
By Keat Foong, Executive EditorWashington, D.C.—The 2008 bank credit crunch may be even more severe than that of the early-1990s recession, suggested Ron Witten, president of Witten Advisors LLC. Witten was speaking at the National Association of Home Builders’ (NAHB) Fall Construction Forecast Conference this week. Witten pointed out numbers from the Federal Reserve Board showing that 81 percent of banks surveyed are cautious about commercial real estate lending in 2008. This number compares with a high of 60 to 70 percent who were cautious in 1990, according to a graph displayed at the presentation. “The banking credit crunch is…
TODAY’S DEALS: Monem Corp. Acquires 24-Unit Community for $3.3M, and Other Transactions
By Anuradha Kher, Online News EditorLos Angeles–Monem Corp. recently acquired a 24-unit multifamily community, located at 5463 Carlton Way in Los Angeles, for $3.3 million. Tony Azzi of Marcus & Millichap represented Monem Corp. and the seller in this acquisition.“Though the financial market continues to struggle, we were able to secure a very attractive three-year fixed loan at six percent with 30 percent down to acquire Carlton Way,” says Danny Monempour, president of Monem Corp. “We will continue to actively look to acquire multifamily properties in the Los Angeles area.”Built in 1965, 5463 Carlton Way is 100 percent leased and…
MBA Forecasts Negative Economic Growth through First Half of 2009
By Anuradha Kher, Online News EditorWashington, D.C.–Economic growth in the second half of 2008 will be negative and remain negative through the first half of 2009 before a modest recovery, according to the latest economic forecast released by the Mortgage Bankers Association (MBA). MBA expects growth to pick up strongly by the end of 2009 and over the course of 2010. The total residential mortgage production in 2009 is expected to be $1.67 trillion, down from an expected $1.86 trillion in 2008 and $2.3 trillion in 2007, according to MBA’s forecast.”A recession appears to be underway, as evidenced in rising…
Developer of Beachfront Luxury Condo Project in N.J. Says He Slashed Prices, But Continues to See High Demand
By Anuradha Kher, Online News EditorDiamond Beach, N.J.–Chester, Penn.-based development company, Mita Management, is nearing completion on its 125-unit first phase of The Grand at Diamond Beach, a luxury condominium project located on Diamond Beach, the last piece of property that can be developed on the southern Jersey shore.This phase will be ready in the summer of 2009 while the other two phases are expected to be complete in the next 10 years. “We initially thought we would complete all three phases in seven years,” Eustace W. Mita, chairman of Mita Management, tells MHN. “But we had to change the…
Multifamily Housing Starts in 3Q Do Not Fall as Precipitously as Single-Family’s
By Anuradha Kher, Online News EditorNew York–While single-family housing starts tumbled a whopping 12 percent to an annual rate of 544,000—the lowest since February 1982 and the fourth-lowest ever—third-quarter multifamily housing starts remained relatively high at 273,000, as compared to its low of 162,000, recorded in 1993, based on the Commerce Department’s latest report.Multifamily housing starts (including two to four-unit projects and five plus-unit projects) have been falling since mid-year but haven’t yet seen the drop witnessed after the savings and loan crisis in the early 90s. The number of multifamily starts in June stood at 426,000, went down to…
TODAY’S NEWS: HFF Secures $47.35M Construction Loan for Mixed-Use Development, and Other Transactions
By Anuradha Kher, Online News EditorDallas–The Dallas office of HFF (Holliday Fenoglio Fowler L.P.) recently secured a $47.35 million construction loan for Brick Row (pictured), a mixed-use development under construction in Dallas. HFF managing director Andy Scott worked exclusively on behalf of the borrower, a joint venture partnership between Winston Capital Corp., L&B Realty Advisors and the Michigan Employees Retirement System. A three-bank syndication, which was led by Colonial Bank, along with Texas Capital Bank and Broadway Bank, provided the three-year construction loan. Upon completion in mid-year 2010, Brick Row will feature 500 multifamily units and 16,000 sq. ft. of…
MBA Elects Michael D. Berman as Vice Chairman
San Francisco–Michael D. Berman, CMB, president of CWCapital of Needham, Mass, has been elected as the vice chairman of the Mortgage Bankers Association (MBA) during the association’s 95th Annual Convention & Expo in San Francisco. Berman is a founder and principal of CW Financial Services and serves on its Board and as the company’s chief operating officer. In that capacity, he provides strategic input into the company’s vertical integration businesses, including multifamily/commercial lending and servicing, investment in high-yield commercial mortgage backed securities, CMBS special servicing, and mezzanine investment funds. Berman is also the president of CWCapital, the company’s multifamily/ commercial…