MF Originations Fall 42% Year-Over-Year in 2Q 2008; Wachovia, WaMu Were Top Lenders in 2007
By Anuradha Kher, Online News EditorWashington, D.C.–Multifamily lending increased 7 percent between 2006 and 2007, from $137.9 billion to $147.7 billion, but fell steeply in the first half of 2008, according to the Mortgage Bankers Association (MBA). The number of multifamily loans decreased by 5 percent, from 50,959 loans in 2006 to 48,577 loans in 2007; the average loan size increased by 11 percent, from $2.7 in 2006 to $3.0 million in 2007, according to MBA’s latest report.”2007 saw strong multifamily lending activity, but the market is changing significantly,” Jamie Woodwell, MBA’s vice president of commercial real estate research,…
TODAY’S DEALS: NorthMarq Capital Completes $34.2M First Mortgage Financing for Four-Property MF Portfolio, and Other Transactions
By Anuradha Kher, Online News EditorSt. Louis, Miss.– NorthMarq Capital, Inc.’s St. Louis regional office, recently arranged first mortgage financing of $34.2 million for the Waterford Apartment portfolio located in St. Louis. The portfolio consists of four multifamily properties featuring a total of 746 units. Financing was based on a 10-year term and a 30-year amortization schedule, with the first two years interest only and was arranged for the borrower by NorthMarq through its affiliation with AmeriSphere Multifamily Finance.Arbor Closes Three DUS Loans Totaling $4,994,000 Edinburg, Texas, Winchester, Va, Johnson Creek, Wis.–Arbor Commercial Funding LLC has completed funding of three…
Bart Harvey, Enterprise Share ULI J.C. Nichols Prize for Accomplishments in Affordable Housing Development
By Anuradha Kher, Online News EditorNew York–Extraordinary accomplishments in affordable housing development and investment are being recognized through this year’s Urban Land Institute (ULI) J.C. Nichols Prize for Visionaries in Urban Development. F. Barton Harvey III, former chairman and CEO of Enterprise Community Partners Inc., and former chairman of the board of Enterprise Community Investment Inc., is sharing the 2008 prize with Columbia, Md.-based Enterprise, provider of affordable rental and owner-occupied housing. The ULI J.C. Nichols Prize recognizes a person or a person representing an institution whose career demonstrates a commitment to the highest standards of responsible development. The $100,000…
Study Finds Rising Operating Expenses Lead to Rent Increases, Housing Costs Outpace Income Growth
By Erika Schnitzer, Associate EditorWashington, D.C.–Rising expenses for multifamily owners may be causing rent increases, according to a new study by the Center for Housing Policy. The report, “Stretched Thin: The Impact of Rising Housing Expenses on America’s Owners and Renters,” is co-authored by Barbara J. Lipman, research director, and Maya Brennan, research associate, both of the Center for Housing Policy, a research affiliate of the National Housing Conference.The study found that, from 1998 to 2004, the consumer price index rose 16 percent, while the average cost of insurance rose 97 percent, taxes rose 25 percent, marketing costs increased by…
EDITOR’S NOTE: Risk Management
By Teresa O’Dea Hein, Managing EditorChances are, when you’re in Las Vegas–like I am now, at a conference, I swear!–risk seems like a good thing. Slot machines promise the chance of an easy pay-out (but not for me so far). However, in the real world, risk has a more worrisome meaning, especially these days.Knowledge is the best way to manage risk, and there are many ways to stay up to date on the latest tools and techniques to do so. Pinnacle’s Chief Administrative Officer Ed Wolff reports that his company uses assessment tools in the hiring process. “You can’t teach…
Job Losses Cause Apartment Rent Growth to Decline to 0.8%
By Anuradha Kher, Online News EditorDallas–In the third quarter of 2008, the U.S. apartment market had the smallest increase in annual effective rent since the first quarter of 2004, according to AXIOMETRICS INC., a national apartment research company headquartered in Dallas, Texas that has been conducting this survey for 12 years.The 3Q08 annual growth rate in rents of +0.8 percent is the lowest of any quarter since then. The apartment market is expected to worsen into 2009 as the U.S. economy continues to lose more jobs; so far in 2008, the U.S. economy has lost over 760,000 jobs and the…
EDITOR’S NOTE: Relative Calm in the Midst of Turmoil
By Keat Foong, Executive EditorIt was certainly hair-raising to watch the stock market in the past week. By Friday, the Dow Jones industrial average had fallen from 9,955.50 on Monday to 8,451.19 points—a drop that was reportedly even worse percentage-wise than the 17 percent plunge in the week ending July 22, 1933. Part of the current panic has to do with the suspended financing markets—which one would think at its worse can lead to economic collapse. In this regard, the Treasury’s announcement this week of the plan to inject $250 billion into banks, guarantee inter-bank lending and backstop the commercial…
Industry Speakers, Consultants Form National Alliance
By Erika Schnitzer, Associate EditorGreeley, Colo.—Professional speakers and consultants in the multifamily industry have recently come together to form the National Multifamily Speakers Alliance (NMSA).“It’s a group of people coming together for one cause: maintaining a high standard of performance for professional speakers in multifamily,” says Toni Blake, founder and president of NMSA. “Our real goal is about establishing professionalism and creating a set of criteria that people can work toward to establish themselves at a higher level.” All members must meet a certain set of criteria and sign a code of ethics.Additionally, NMSA creates a forum for speakers and…
TODAY’S DEALS: ARA Brokers Largest MF Sale in 2008 in Nashville Market , for $71.5M, and Other Transactions
By Anuradha Kher, Online News EditorNashville, Tenn.–Atlanta headquartered Apartment Realty Advisors (ARA) recently brokered the $71.5 million sale of Wyndchase at Aspen Grove (pictured), a 560-unit Class A multifamily community located in the Franklin/Cool Springs submarket in Nashville, Tenn.This is likely to be the largest investment sale in Nashville this year.The property was 95 percent occupied at the time of sale. Constructed in 1997, Wyndchase at Aspen Grove is comprised of 33 buildings situated on over 60 acres in a campus-like setting, surrounded by landscaped grounds that overlook the Vanderbilt Legends Golf Club providing residents with golf course views on…
Factory Made Doors and Windows from PGT Industries
PGT Industries’ three new impact-resistant door and window products for its Architectural Systems product line are designed with residential high-rise buildings in mind. The Storefront 3500 Series, consists of a commercial Storefront Entrance Door (ST3550) and a Storefront Window Wall System (WS3500). A Terrace Door (TER3050) is a new addition to the 3000 Series, which is ideal for condominium and apartment buildings.All these products save installation time and resources because it is a factory fabricated, pre-glazed system, enabling installers to reduce field labor by spending less time glazing units at the job site. This accommodates a faster closing of the…