Fate of Wachovia, Wells Fargo Multifamily Capital Still to Be Determined
By Anuradha Kher, Online News EditorNew York–Earlier this week, Wachovia Corp. agreed to be acquired by Wells Fargo & Co. in a $15.1 billion all-stock deal, following which Wachovia’s previous plan to sell its banking operations to rival suitor Citigroup Inc. fell apart.Both Wachovia Capital and Wells Fargo have multifamily divisions and are Fannie Mae and Freddie Mac DUS (Delegated Underwriting and Servicing) lenders. In addition, early this year, Wachovia Multifamily Capital Inc. achieved fully delegated status under the Freddie Mac Delegated Underwriting for Targeted Affordable Housing model. The two companies were also the top multifamily/commercial originators in 2007, according…
Panelists Explain How to Properly Run a First-Class Recycling Program
By Erika Schnitzer, Associate EditorDenver–With sustainability initiatives sweeping the industry, recycling programs are a logical step toward greening multifamily properties. However, according to a 2005-2006 waste audit program, single-family beats multifamily in every recyclable commodity category.At the recent 2008 Multi-Housing World Conference and Exhibition, how to “sell” recycling and waste management to residents was discussed by a panel comprised of Kendall Christiansen, principal, Gaia Strategies; Ann Johnson, president/owner, Waste Tech Services Inc.; and Dana Zeff, founder and principal, The DZAP Group. Anne Sadovsky, certified speaking professional, moderated the session.Multifamily properties face a number of challenges when it comes to setting…
TODAY’S DEALS: PNC Provides $127.1M in Financing for Three Real Estate Deals, and Other Transactions
By Anuradha Kher, Online News EditorGaithersburg, Md., Houston, Texas–PNC recently completed financing totaling $127.1 million to National Capital Properties III LP, Applied Development Co. and Cash Russell LLC. PNC ARCS provided a total of $82 million in financing to Washington, D.C.-based National Capital Properties III LP, an affiliate of Quadrangle Development Corp. for the acquisition of Fields Crossing and Shelburne Crossing, formerly Archstone Gaithersburg Apartments, located in Gaithersburg, Md. The two garden-style apartment communities total 648 units.PNC ARCS originated the loan through Fannie Mae. In addition, the company provided a $25 million working capital line of credit to Applied Development…
Multi-Housing Executives Update: RentWiki.com Gets New SVP of Business Development, and Other Moves
Atlanta–Tamela Coval (pictured) has joined RentWiki.com as senior vice president of business development. “I’ve kept my eye on the RentWiki.com group since I first learned of it earlier this year,” says Coval. RentWiki.com utilizes consumer-contributed content, social networking and free inbound/outbound web syndication that allows renters to answer the question, “Do people like me live here?” Unlike other Internet sites that focus solely on apartments, RentWiki.com, focuses on neighborhood information.Walker & Dunlop, Green Park Financial Name Deborah A. Wilson SVP, CFOBethesda, Md.–Walker & Dunlop and Green Park Financial have named Deborah A. Wilson as senior vice president and chief financial…
SPECIAL REPORT: Time to Develop Condos Again in Washington, D.C., Says Expert
By Keat Foong, Executive EditorWashington, D.C.—Believe it or not, according to a researcher, now may be the time to begin building condominiums projects again in the Washington, D.C. metropolitan area. Speaking at Delta Associates’ regional economic and market trends and outlook presentation here, Gregory Leisch, CEO, projected that condo inventory in the market will be seven years’ worth by the end of 2008—indicating excess supply by any measure. However, Leisch said that given current condo absorption/reversion rates and supply levels, more than one year hence, the condominium inventory would have declined to levels that are closer to those in the…
President Bush Signs Revised Version of $700B Bailout Package Shortly after House Passes Bill
By Anuradha Kher, Online News EditorWashington, D.C– It was an eventful day today as Wells Fargo & Co. bought Wachovia for about $15.1 billion in stock and the House of Representatives approved today the revised $700 billion bailout package for the financial system by a vote of 263 to 171. Most Democrats favored the bill (172 for and 63 against), while a slighter majority of Republicans voted against (91 for and 108 against). A number of popular tax provisions were added to the bailout bill, which President George W. Bush quickly signed into law. He said it would take some…
Rent Increases Lag Inflation Rate
Interest Rates: Interest rates aren’t moving much – which may not matter much, because hardly anyone is lending money to anyone, for anything. The most recent meeting of the Federal Open Market Committee didn’t result in a change in the federal funds rate or the cost of money generally. But with the capital markets in flux, it appears that many, if not most, lenders are sitting on what money they have and waiting things out. Building Materials: Building material prices are, for the most part, holding fairly steady. Cement and softwood lumber are up slightly, and plywood down slightly. But…
Midwest Market Cooling but Stable
The heartland is posting fairly healthy reports this year for the multifamily sector. Many owners in Chicago and Kansas City have increased occupancy rates and posted rent increases over the course of the last 12 months. However, sales of apartment communities have been a different story in both locales due to credit issues and rising cap rates. In 2008, a number of Chicagoland apartment owners have seen continued improvement, or at least stability, in occupancies and even rent increases over the course of the last year, but the shadow market is poised to strike. Sales transactions of apartment communities, on…
Q&A with Joseph Mullen: Days of Putting Little Equity Down for High Leverage Are Gone
Joseph Mullen (pictured) is senior vice president and director of multifamily investments for Madison Apartment Group, owned by BPG Properties Ltd. (BPG)Mullen has been with BPG for 20 years and has been involved in all types of real estate investments. In 2001, he was instrumental in the formation of Madison Apartment Group, L.P., BPG’s multifamily operating arm, and was named president at its inception. Mullen is responsible for the acquisition, investment management and operation of Madison’s extensive multifamily portfolio. Most recently, Mullen guided Madison in the second largest multifamily acquisition the firm has ever made when it purchased the Boston…
TODAY’S DEALS: Sperry Van Ness Completes $56.5M Sale of Senior Housing Community, and other Transactions
By Anuradha Kher, Online News EditorLos Angeles–Sperry Van Ness has completed the sale of a 309-unit senior housing community (pictured) for $56.5 million to New York-based The Related Cos. The property, located at 740 S. Olive St. in Los Angeles, garnered 17 offers in three weeks and closed for $3.5 million over list price. Related will continue to run the property as affordable housing for low-income seniors. The company plans on investing another $9 million in renovations and upgrades to the property.“Senior housing is a safe investment in today’s economy, especially considering that Los Angeles county is home to more…