DEAL OF THE DAY: Holliday Fenoglio Fowler Places $18.7M Loan For Corpus Christi Property
By Erika Schnitzer, Associate EditorCorpus Christi, Texas—Holliday Fenoglio Fowler LP (HFF) has placed an $18.7 million permanent loan with Freddie Mac for a 274-unit apartment community in Corpus Christi, Texas.The loan, which was arranged by Andy Scott, managing director of HFF, on behalf of Peek Howe Real Estate, has a seven-year fixed-rate financing term.Located at 5701 Saratoga Boulevard, The Reserve at Saratoga offers a luxury clubhouse, indoor basketball court and resort-style swimming pool. It is currently 98 percent occupied.
MCZ Development Markets Florida Properties to International Buyers
By Erika Schnitzer, Associate EditorMiami–Chicago-based MCZ Development Corp. is beginning to market its properties towards European buyers.The location of the properties and the strength of the Euro are the two reasons Michael Lerner, president of MCZ Development, cite for the company’s marketing strategy. “MCZ is focusing on its International Broker Network,” he says. “MCZ has developed a huge base of real estate agents and brokers.””Many of these international clients are cash buyers, which makes it easy for them to purchase,” Lerner tells MHN. “Europeans love to vacation in Florida, and we are fortunate to have properties in all of the…
Housing Slump May Last Longer than Usual, Says Joint Center’s Director
By Keat Foong, Executive EditorNew York—The housing downturn may last longer this cycle than is historically the norm, suggested Nicolas P. Retsinas, the director of the Joint Center for Housing Studies of Harvard University, which released its annual State of the Nation’s Housing report this week. At some point, housing demand will bounce back, says Retsinas, but “it will take longer this time to rebound given the unusually high levels of foreclosures and constrained credit markets.” Retsinas says the housing slump has not yet run its full course. He says that mortgage rates have barely responded to the easing of…
Bond Insurers Contemplate Wiping Out $125 Billion of insurance on Debt Securities
New York–Bond insurers–including Ambac and FGIC, which are headquartered in New York, and Armonk, N.Y.-based MBIA–are considering eliminating $125 billion of insurance on risky debt securities to reduce the threat of financial damage, the Financial Times said.Talk of “commuting” the insurance contracts became more pressing after last week’s bond insurance ratings downgrades. A plan could take months to form; however, any agreements involving the value of the credit default swaps sold to banks by bond insurers could affect the entire financial system, which is struggling to establish values for derivatives and complex bonds linked to mortgage-backed securities, the Times said.Bond…
Investors Shy Away From Providing U.S. Lender Capital
New York–Big investors are becoming increasingly nervous about pouring money into banks as bad loan and investment losses mount. Bank executives have met with a surprisingly large amount of opposition from investors to capital-raising transactions in recent weeks, The Wall Street Journal said Monday.Banks attempting to correct their balance sheets by distributing stock and securities to investors could have to woo investors in other ways–which may increase the cost of their deals.Many financial institutions are struggling as regulators place more restrictions on Wall Street firms and commercial banks to ensure they have the capital to weather the current credit crisis….
U.S. Sees More Renters, Less Buyers
Washington, D.C.–Started in 2002, President Bush’s homeownership campaign seems to have been derailed by the high U.S. apartment rental rate, the New York Times reports.The weak housing market and high foreclosure rate have helped boost rentals and drive homeownership down. The percentage of homeowner-run households descended from 69.1 percent in 2005 to 67.8 percent this year–the most severe drop-off in 20 years, according to census data.The percentage of renter-headed households grew from 30.9 percent to 32.2 percent. Yet finding an adequate apartment isn’t easy, due to shrinking vacancies and higher rents. Rents have gone up roughly 11 percent since 2005,…
Harvard Housing Report Says Housing Slump is Worst in Half a Century
Boston–The current U.S. housing market deterioration is most likely the steepest decline in 50 years–and isn’t close to being over, according to the annual report from Harvard’s Joint Center on Housing Studies, which was released Monday.”The national median single-family home price fell [for] the first time in 40 years of recordkeeping, leaving several million homeowners with properties worth less than their mortgages,” the report said.In the past two years, the median U.S. home price has dropped 18 percent in inflation-adjusted terms. The country currently has the worst foreclosure rate in 34 years of tracking data, according to the Boston Herald.The…
Art Deco-Inspired Bath Collection from Delta
With clean lines and geometric forms, Delta’s new Dryden Bath Collection is inspired by the Art Deco period of the early 20th century.The faucets are available in single- and two-handle centersets, mini-widespread and widespread. Additionally, they are water-efficient, with a flow rate of 1.6 gallons per minute (gpm).In the shower, the Delta MultiChoice Universal valve allows residents the option of single- or two-function pressure balance and a dual thermostatic control step-up. The showerhead is available as a square raincan.The new collection will be available this summer, and finish options will include Chrome, Aged Pewter, Brilliance Stainless or Venetian Bronze.www.deltafaucet.com
DEAL OF THE DAY: Sperry Van Ness Completes Sale of North Carolina Apartments for $4.125M
By Erika Schnitzer, Associate EditorGoldsboro, N.C.–Sperry Van Ness has completed the sale of McArthur Apartments, a 110-unit community in Goldsboro, N.C., for $4.125 million.Concord, N.H.-based EWT LLC bought the 21-building community that was built in 1970 and 1987. The units range in size from 900 to 1,900 sq. ft. and are mostly two-bedrooms (with the exception of one unit). Monthly rents have increased to the $550 range since the sale.Located at 204 Benton St., the property is approximately 50 miles from Raleigh and is situated on 11.36 acres of land. It was 95 percent occupied at the close of escrow.Jim…
RMK Completes First Phase of Rehab Project in Chicago Suburb
By Erika Schnitzer, Associate EditorSchaumburg, Ill.–The opening of the new clubhouse at Versailles on the Lakes marks the completion of the first phase of RMK Management Corp.’s $11.5 million rehabilitation of the property.”We wanted to start out with the clubhouse, rather than anything else, since this is the most important thing to the residents,” explains Tony Rossi, president of RMK Management Corp. The rehab for the clubhouse cost $2 million.Located in Schaumburg, a suburb of northwestern Chicago known for its strong office market, the 618-unit, 12-building Versailles on the Lakes was built in two phases in 1970 and 1974. The…